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Let’s talk about death, baby From breaking the stigma to understanding the conversations we need to have before we die, beloved broadcaster and advocate Andrew Denton and clinical psychologist Dr Kerrie Noonan dissect everything we should and shouldn’t say about death. About the episode – brought to you by Australian Seniors. Join James Valentine for the sixth season of Life’s Booming: Dying to Know, our most unflinching yet. We’ll have the conversations that are hardest to have, ask the questions that are easy to ignore, and hear stories that will make you think differently about the one thing we’re all guaranteed to experience: Death. Featuring interviews with famous faces as well as experts in the space, we uncover what they know about what we can expect. There are hard truths, surprising discoveries, tears and even laughs. Nothing about death is off the table. Andrew Denton is renowned as a producer, comedian and Gold Logie-nominated TV presenter, but for the past decade he has been devoted to a very personal cause. He is the founder of Go Gentle Australia, a charity advocating for better end of life choices that was instrumental in passing voluntary assisted dying (VAD) laws across Australia. Senior clinical psychologist Dr Kerrie Noonan is director of the Death Literacy Institute; director of research, Western NSW Local Health District; and adjunct Associate Professor, Public Health Palliative Care Unit, La Trobe University. For the past 25 years she has been working to create a more death literate society, one where people and communities have the practical know-how needed to plan well and respond to dying, death and grief. If you have any thoughts or questions and want to share your story to Life’s Booming, send us a voice note – lifesbooming@seniors.com.au Watch Life’s Booming on YouTube Listen to Life's Booming on Apple Podcasts Listen to Life's Booming on Spotify For more information visit seniors.com.au/podcast Produced by Medium Rare Content Agency, in conjunction with Ampel -- Disclaimer: Please be advised that this episode contains discussions about death, which may be triggering or upsetting for some listeners. Listener discretion is advised. If you are struggling with the loss of a loved one, please know that you are not alone and there are resources available. For additional support please contact Lifeline on 131 114 or Beyond Blue on 1300 224 636. TRANSCRIPT: James: Hello, and welcome to Life's Booming. I'm James Valentine, and this season, we're talking about death. Or, on this episode, why we don't talk about it enough. Death is really easy to talk about, but avoiding the subject just makes things even harder. From breaking the stigma to understanding the conversations we must have before we die, I'll be dissecting everything we should and shouldn't say about death with two fascinating minds. Andrew Denton is the founder of Go Gentle Australia. A charity advocating for better end of life choices, but you probably know him better from so many shows on our TV. And Dr Kerrie Noonan is a senior clinical psychologist and social researcher, determined to increase our death literacy. Kerrie, Andrew, thanks so much for joining us. Do you know one another? Andrew: Yes we do. Yeah. Kerrie: Yeah, along the way. Andrew: We've had a few conversations about death, dying, literacy, all those things. Yeah. James: How did you learn about death? Like when did you, and who did you go to talk to? When did you start thinking about it? Andrew: Well, I think you learn about death the way everybody does, which is you experience it. And the first time it happened to me, I made a documentary about teenagers with cancer, Canteen, the support group, and one of those young men died. And his parents very generously invited me to visit him as he was dying. And that was the first time I actually saw what death can be. And it was, it was very hard to see and then watching my own father die obviously was a profound moment for me because that was an unhappy death. But how I've learned about it since is, I imagine a bit like Kerrie. I've had thousands of hours of conversations with people who are dying and their families and their carers. And, I've learned so much about death I feel I've mastered it and can move on. James: Yeah, true. That's right. Is that, is this what you mean by death literacy, that, that in some ways we just need to be talking about it more? Kerrie: It's, it's talking about it. That, that's one aspect. But it's, it's kind of developing your know-how and being able to put that know-how into practice. So, you can maybe talk about, maybe have some competency in terms of talking or maybe doing one element, related to death and dying. But, when you put it into practice, that's when death literacy kind of really comes to life. It kind of sits, some of the research we've done recently, it's evident that death literacy sits in networks, in-between people, within people, in communities, so it's not just about individuals. James: I suppose I'm wondering about at what point we might have this, or there'd be a difference in death literacy with 20-year-olds than there would be with 80-year-olds, right? Kerrie: Yes, experience changes your death literacy. That's probably the strongest predictor. So we started this research looking at networks of care and how people kind of come together. And so where we're at now is we're looking at what are the predictors and what are the things that we understand so that we can understand more about how to make more death literacy, I guess. So an example, that's your question, well I can give a real example. When my mum was in hospital, we were, we needed someone to help us to move mum from the hospital to home because we wanted to take her home. And we couldn't get the health system or the medical system to do that. So I put an email out, a text message out to my friends who happened to work in the death space. And within an hour we had someone, within two hours, mum was home. And so. That took, you know, that set off a little chain of conversations, emails, texts. And while I was doing that, my brother was getting the medication sorted and other things sorted for my mum. So we really, we utilised, to bring my mum home, we utilised like every bit of knowledge and our networks to do that. James: But you were at the centre of, you know, you, you study this, you're a, you know, an advocate for it, and so you're at the centre of it. You would have a network. I mean, I don't know that I've got the same network. I'd, I could put it out to my friends and they'd go, we could bring wine. Oh, you know, like, I don't know that they'd, I don't know that they'd be that practical. Kerrie: But that's actually helpful too. You need your friends to turn up with wine and, and bread and whatever comforts. So we found that younger people, for example, so we've done two kind of national studies just to kind of demonstrate your point about younger people. Between, 2019, pre COVID, and 2023, we looked at the population and we looked at death literacy and how it changed. And we found that voluntary assisted dying and COVID had an impact on people's death literacy, particularly for the younger people, anyone who's experienced a death, anyone who's been through loss, has higher death literacy than people who haven't. And so, there's lots of things that contribute to that, but, COVID, I think, we're still kind of looking at the data, but certainly voluntary assisted dying because of the way that you need to kind of have conversations, you need to actually reach out to your networks, you need to talk to doctors, you know, there are actually lots of interactions in that that really stretch your skills and, your understanding. James: It's only a few generations back when death was very present in our life. The conversation about voluntary assisted dying has perhaps allowed us to have that conversation again. Have you seen that? Andrew: Yeah, I think that's right. I mean, there's, there's a lovely, witty observation that in Victorian times they talked about death all the time and never about sex. And today it's the other way around. It's not that many generations ago where the body would lie in the house and there'd be a viewing in the house. And so it was, it was a more human thing, the way Kerrie's describing her friends helping her mother come home, that's a communal and human thing. And when I talk about voluntary assisted dying, I must and I want to bracket it with palliative care, because really, despite the fact politically they were oppositional during the legislative debate, they're very much on the same end of the spectrum, which is we're all going to die, and the concept of palliative care, which is also the same idea of voluntary assisted dying, is not, ‘Let's get you to the dying bit, but how do you live as well as you can while you are dying?’ And that dying process could be very short or it could be very long, it could be several years. You, usually you can't be really clear. So the whole point as Kerrie said about voluntary assisted dying and palliative care is you talk about these things. And interestingly, I think there's a paralysis around death, and you know, you said, well, my friends wouldn't know what to do, they'd bring wine, as Kerrie said, that's no bad thing. But if you put out a call to your friends to say, I need to move my fridge, somebody's going to say, I've got a ute. James: Yes. Andrew: …your need, perhaps, to leave hospital and go home, that's the same question… James: They might have a ute. Andrew: …It's just, it's just a human question, which is, I need help. And not only do we get paralysed in the face of death and assume that the experts have the answers, but the experts often get paralysed in the face of death. They don't know how to have those conversations either. So one of the things that voluntary assisted dying absolutely has done, and there was a, a geriatrician in Victoria who said to me. He was ashamed to admit that voluntary assisted dying had made him understand how limited his practice had been, in that he had subconsciously only been asking questions of patients that he had an answer to: How's your pain? James: Right. Andrew: I can treat your pain. What are your symptoms? I might be able to treat your symptoms. Whereas what he asks now is, how do you feel? What is life like for you? That's a much more holistic question. What is it that you need? If we can't help you with it, maybe someone else can help you with it. So I think it's about transcending that paralysis in the face of death. Which is natural, but the greater group that you can talk with it about, the better. I still remember a woman I met several years ago. And she said to me from the moment her husband was diagnosed with cancer to the moment he died, he refused to talk about it. And the, it was like a sliver of ice stuck in her heart because she was frozen in that too. James: Yeah, yeah. Kerrie: Yeah, and I think what we, what we found in a lot of our research too, Andrew, was that, carers were often, had massive networks that the person who was dying didn't know about… Andrew: Right… Kerrie: …as well. So I think that's, that's the other thing, about some of these conversations is that, once you know that you've got community who's up for the conversation or up for whatever around you that a lot of carers are, can have that access to other people. James: And you mean the person dying doesn't know because they don't ask, unless they're talking about it, then no-one thinks to bring it forward? Is that what you mean? Kerrie: Yeah. I think what happens in that situation is a carer can become quite isolated like the dying person. If they don't want to talk about it, there actually are still practical things to organise. There are still things, where are the passwords? How do you get into the bank account? What bills need paying? Andrew: I'm trying that with my wife all the time and she's not even dying! Kerrie: That's right. They continue but you don't get to have the conversation with the person. Andrew: Actually, Geraldine Brooks, a beautiful author, her husband Tony, who is a friend, he died very suddenly, dropped dead in the street, and he was young, in his early 60s. And she's just written a book about this called Memorial Days, about that whole experience. And that's the strongest piece of practical advice she gives, which is, prepare for your death by helping others. James: Yes. Andrew: Like, leave the passwords, explain how these things work. The best things I've learnt about the idea of preparing for death and thinking about death, actually I'm pretty sure came from some of your literature, Kerrie, which was the idea of an emotional will. And an emotional will is not about, to you James, I'll leave my ute. It's actually about, to you James, I'm going to leave, my favourite city in the world. Limerick in Ireland, and here's some money for you to go there, or to you James, I'm going to leave these five songs, which mean something to me. It's actually about, well this poem, it's about gifting something of spiritual life value as opposed to an object. James: Yeah. Following the, the, the legislation in New South Wales, now pretty much in every state, Andrew, where, what do you see now? What do you see in our society now? What do you see happening? Andrew: Look, there's still the same paralysis and fear about death. I think that's, that's kind of natural. You know, one of the people on our board of Go Gentle is the former federal president of the AMA, who's a neurosurgeon, and he said when his dad was dying in hospital, he was afraid to ask for, you know, more help because he didn't want to be annoying. So, you know, I mean, this is the head of the AMA. To me the big question is not so much, how individual families or individuals respond even though it's very important. To me the big conversation is within the medical professions. And I don't actually say that critically. Because we're all equally struggling with the concept of the abyss. And I think, it is an acknowledged problem in healthcare, of futile care at the end of life. It's giving a 90-year-old a hip replacement, for example, just over-treating. Because of the, I've heard it described as ‘doctor as hero’. You know, we give, we give doctors, quite reasonably, a special place in our society. Because we ask special things of them. But part of that training is, we must win. We must treat. When I was first told this by a doctor in Oregon, when I went there. When they said, oh, we see death as a defeat, I actually laughed. I thought they were joking. I said, it's… James: You know you can't win. He turns up with that scythe at some point. Andrew: So I think there's a much broader conversation about what is dying, and how do we have that conversation with people who are dying. And I think… James: I suppose I just thought, I have had a couple of conversations recently with people who have a relative or parent who has gone through voluntary assisted dying… Andrew: Yes… James: …And what I noticed was the way they talked about it, in a sense, wasn't much different to, oh, we went to Europe. You know, we had a nice trip. Like, it was very normal, the way they said it. They went, I was at my uncle's death yesterday. Andrew: It can be. It can be. You know, dying affects different people differently. There are people who have gone through the voluntary assisted dying process who totally support it and are very glad it's there, but still found the experience traumatic. It's not a silver bullet. James: Right. Andrew: It doesn't, it, it's merciful, and it's peaceful, but it doesn't, it certainly doesn't remove grief, and it doesn't remove, for many people, the unreality of dying. We hear many, many testimonies of families deeply grateful for the way in which they are able to say farewell. And I think that's a very important part of voluntary assisted dying. A genuine ability to say farewell. But people are different. There's one man that insisted, who used voluntary assisted dying, and insisted that he be only with his doctor. And the reason he gave, which I find both beautiful and heartbreaking, he said, ‘I don't want the love of my family holding me back’. So, you know, I always maintain when I talk about this. James: [sigh] I felt the same thing. I did the same thing. I know. You know, huge. Andrew: Whenever I've talked about this, I've always maintained, none of us know how our dying will be. All we know is that it will be hours and hours alone. And I think that's why I struggle with, that philosophy that somehow or other, that, our dying is about society at large or about some universal rule that we might be breaking if we don't do it the right way. James: Kerrie, you know, I sort of want to acknowledge that you've been through death quite recently, that your mother died only a few weeks ago as we're having this conversation. As someone who's then spent their life studying this area and thinking about this area, what have you learned from the death of your mother? Kerrie: It looks similar to what Andrew said before about his colleague, the doctor. Like, well, I went straight to the practical things, didn't I? Like, it's a kick, grief's a kick in the guts, let's face it. Knocks you on your butt. James: And we are very practical in those first weeks, aren't we? At the moment of death and afterwards. Kerrie: Just the other day, when we dropped my daughter off to uni, I went to text my mum, as I would usually do. And text her the photo of her in her dorm. And I think this is, you know, I was really glad of my experience because I just sat there and cried for about five minutes, actually. I just needed to blubber and cry. I could have sucked it up. We could have just, you know, driven on. But actually it was really helpful just to really deeply acknowledge that moment. That was the first time. That I'd experienced that real sense of wanting to, to, communicate with her. Andrew: I hope it won't be the last time you hear her cry about your mum. Kerrie: No, it won't be. It won't be. But when she died, because of the work that we had done, I didn't cry initially. Andrew: Yeah. Kerrie: And this is this individual kind of experience of going through this. I didn't, immediately cry. I felt intense relief for my mum. And so I was just reflecting on that. I was like, ‘Whoa, I'm not crying’. The other thing that is, is on my mind is that it took an ICU doctor on the day that mum… So mum had three MET calls. And if you don't know what a MET call is, and you're listening to this, this is where every registrar, every emergency person on call, runs to the bed of the person who is, who's crashing. James: Right. Kerrie: …and she had three of those. And by the end, I'm glad I wasn't there because I hear that mum was very distressed. James: Right. Kerrie: And it took an ICU doctor to sit down with her and go, what do you want Maureen? James: Yeah. Andrew: Yeah. Kerrie: And mum said, I'm done. And so it didn't matter that I'd done that with the doctors, multiple times, or that she had an advanced care directive, clearly stating, do not give me, treatment that will prolong my life. It didn't matter that all of those things were in place. What mattered, was that ICU doctor who absolutely, compassionately just stopped everything and talked to my mum. And it's a pretty brave thing when your heart is failing and other things are happening in your body to say, no more, I'm done. Because that does, that's a decision about you only have a certain amount of time left in your life then. So, that doctor changed the course of my mum's dying. And, yeah, I'll never forget that. And then the compassion at which she called me to talk with me about what mum had decided. And the checking. The difference – one of the other things that I found – the difference between a doctor with really, like, person-centered communication skills and someone who's focused on getting the job done. They ring and say, ‘Hey, I'm caring for your mum. I'm caring for your person. What do you understand about what's happening?’ James: Right. Right. Kerrie: And every time, they did that… James: …they want to listen to you first, yeah. Kerrie: …Yeah. Every time they did that, it just gave me an opportunity, even though I know this gig, I've talked a hundred times on the other side of that conversation with people, but it just made me realise the just incredible, that empathy, you feel it in your bones on a whole other level when someone is truly going, ‘Tell me, tell me your story, tell me your bit.’ And, that was, that was a big learning and a big reflection as a health professional, as someone who's been there. The other thing, sorry, you cracked that open, didn't you? The other, the other part was, no one asked, me or my brother, about, about our experience, our previous experiences, and who we were, and what we did, and who were these children taking their mum home. My brother's a nurse. I've worked in palliative care for a million years, and it was a really interesting thing having to, like, I just wanted someone to go, Hey, have you done this before? And maybe I'm being a bit biased there because that's something that, because I've got a death literacy lens over things. And I'm always interested in, Hey, what have you done before? Hey, what experiences do you want to bring to this one? What do you know about what you're facing? What do you want to know about next? They were all the questions that I would be asking if I was working with someone. I really wanted someone to ask me those questions. Andrew: In a palliative care setting, you would probably have been asked those questions, you would hope. Kerrie: I hope so. Andrew: In a general hospital, maybe not. I think that speaks to two things, what we're talking about, which is paralysis in the face of death and, a sense of we just treat, we treat, we treat. This is what we do. Everybody's terrified of being accused somehow of not having done enough. So I think there's that. And, the doctor, the ICU doctor you described, that strikes me as a perfect piece of medicine. And it, it absolutely accords with what a beautiful nurse said to me in South Australia some years ago. She was very emotional. She was, she was recording a piece for us about why there should be voluntary assisted dying. It was always instructive to me that the ones that really advocated for it were the nurses, because they're the ones that see the suffering. And she just said, ‘Why can't we do the right thing, human to human?’ And that's why I see this as a multi-generational discussion within the health profession. It's not that people in the health profession aren't humans or don't get that, but it's not how they're trained. And, but I also think it speaks to the pressures on the health system too. Kerrie: Yeah. Andrew: In the same way as we're talking about aged care, even though we have a much healthier health system than, say, America, it's still pressured. And we know, we hear stories from hospitals all the time of, resources that are built but not used or resources that are used but are stretched beyond reason, and so I think it's a reflection of all those things. But there was at times, and I think sometimes we don't talk about this enough, is paternalism in healthcare. Andrew: Can I explain that?! James: Yeah, that's right. Andrew: Sorry. James: Oh yeah, we covered that Kerrie, us blokes know all… Andrew: Please, do go on. Kerrie: Oh, there's a lived experience. [laughter]. Oh, yes, that. Andrew: No, I'm sorry, please do explain. James: …which you ably demonstrated… Kerrie: So, that, yeah, like paternalism, we just don't have a critical kind of conversation about paternalism in healthcare. And there's, you know, there's that difference between really great care. And then, but if you just kind of tip it a little further into ‘Hmm, do you really want to do that? Oh, don't you want to be the daughter, not the carer?’ You know, like there are, there are kind of, there are particular things that happen in healthcare that, that we don't, we aren't critical enough, is what I'm saying. I don't know what the answer is, but I would like the system to be more critical about, about some of those things that perhaps they take for granted a little. And, look, sometimes it would be maybe permission for a family to kind of, yeah, be the daughter. James: Well, even in my experience, my cancer experience in the last year or so, I've now done several talks at doctors conferences and things like that. And what, what sort of strikes me as funny about it is I go, ‘We’re thinking of taking an interest in the patient's perspective, perhaps you'd like to come talk about that?’ Patient's perspective. Is this new? Andrew: You know, I, I went on Q&A, about VAD quite early in my advocacy, which was a terrifying experience, by the way, and, and there was a, another fairly prominent doctor who was strongly in opposition, and I, I completed what I had to say by basically saying, you know, doctors, it's, it's time to listen to your patients. And this doctor, who's a very good writer, wrote this excoriating piece in a magazine afterwards, just accusing me of being patronising towards doctors. And I'm thinking, that's patronising? I mean, the worst example I know of this, there was a, a former AMA official and, they held a debate on this internally in 2016, that I had a link to and I, so I watched it. And he was a, a geriatrician, and a senior doctor. And somebody on the other side of the debate, because he was opposed, had put to him that there's a great public support for this. And he said, and I'm, I'm quoting pretty close to verbatim, he said, ‘That's why we're paid $200,000 a year. We make these decisions.’ And that's, so I think there is significant paternalism. There was another, a female oncologist who wrote a piece in The Australian against these laws, and even though it wasn't her headline, it was what she meant. The headline was, ‘Autonomy, it's not about you’. And you know, going back to what I was saying, there cannot be a more, you-focused experience than your dying. I don't care what your religion tells you, in the end, only you are going there when it happens. James: You've given, is it a decade now, to this? Andrew: More, I think. James: More, you know. Again, I suppose, what's your reflection on that? I sort of feel like I'm framing the question almost, are you glad you did that? You know, is that… Andrew: There are times, and I'm sure Kerrie would agree with this, there are times I think, you know, I've had enough death, thank you very much. Andrew: But I would have to say it's been the most brilliant second act for me after showbusiness, far more meaningful to me. The correspondence I've had and the conversations I've had, have been so privileged, and the gratitude that we as an organisation, Go Gentle, receive from people whose families had the option of voluntary assisted dying is immense. And, so yes, I am glad. And certainly I view this as the real work that I've done, not whatever I may have done in television. Perhaps if I'd won a Logie, I'd feel differently about that. James: I think you peaked at [1980s show] Blah, Blah, Blah, quite frankly! Andrew: Yeah, I think so, and it was all downhill after that first year, exactly! James: Yeah, well, I almost feel like I need to go and have a good cry. It's been, a beautiful discussion. Thank you so much for, uh, sharing it with us here on Life's Booming. Andrew: Can I ask you a question? Before you just wound up, you're getting teary. James: Yeah, yeah. Andrew: What are you feeling? James: I'm taking a deep breath to calm, so I can't talk, not necessarily to squash it. I'm always surprised when it comes up. I, I never quite know when I'm going to get teary. And sometimes it's, it can happen on air, like sometimes if someone starts talking about death or a relative, and I'll be listening to it and I'll suddenly go to speak and go, oh, the emotion's right there, you know. So, I'm not entirely clear. I think I'm moved by Kerrie, and sort of wanting to experience your grief in some ways, deal with that. Or I feel like, I think I'm feeling that you, you holding it in, sort of that, you know, we need to sort of let that, let that go a bit. So, it's interesting. I think I'm moved by your work as well. Look, we have a funny connection over many decades, and to observe you go through, deal with, deal with, you know, to see you transform into doing that work has been quite extraordinary. And I'm probably just contemplating my own death. [laughter] Andrew: And, exactly right, James. And during the height of COVID, quite unexpectedly, a very good, friend of mine, he rang me from Victoria and we knew his wife had pancreatic cancer, which is obviously a very tough diagnosis. And then he said she's chosen VAD and she's going to die in this state. And despite all the thousands of hours spent in that debate to get that law passed in Victoria, which was the first one in Australia, and it was an absolute brutal knife fight of a battle to get that law passed. For some reason, it had never occurred to me that somebody who I knew and loved was going to use this law. James: Yeah, right. Andrew: And I remember, despite everything I knew about it, on the day, Jennifer and I, we got our whisky glasses. We poured a whisky. We lit a candle. But I remember thinking as the clock ticked down to the moment, it felt very unreal to me. But the strong emotion that I felt at the moment, knowledge in the moment of her dying was not that she had died. It was actually about just the richness of life. Oh my god, life is so rich. And that's what I felt. I just felt, wow, life. Kerrie: I think that is what you say there is so deeply important because one of the reluctances around talking about death and dying is not being able to maybe lean into some of that feeling around that richness of life. When we were going through photo albums, there were photos there that, you know, that we'd never really taken notice of before. Damn, we wanted to know about them now. Who were they? Who are these people? Where are they now? It does connect you to life in a very profound way. And all of the messiness of that. And that's, I think, only a great thing. Watching my children, 22 and 17, be with their grandma. We did a very, a simple thing. Put a comb, a brush on the end of her bed. And mum used to love having her hair brushed. And we just said to the kids, just brush her hair, if you want. Andrew: That’s gorgeous… Kerrie: And so that just very simple action just then gave them something to be with her while she was dying. Andrew: Human to human. James: Yeah. Kerrie: Yeah. And my children did that many times, while she was dying. And, and that's when we would sit and talk about what we did with Nanny and things. And we, you know… So it's worth leaning into. I guess that's the other thing. It's worth getting the whisky out and having a think about, about, about these things and reflecting in on it, and how, and what it means to you and what you want to do. James: Thank you. Kerrie: Thanks. Andrew: Thanks, James. James: I'm gonna cry. Andrew: Come on. Let's hug it out. Come here. James: Exactly. It was very good. That was a beautiful moment. Thank you. Thank you. Thank you. Thanks to our guests, Andrew Denton and Dr Kerrie Noonan. You've been listening to Season 6 of Life's Booming: Dying to Know, brought to you by Australian Seniors. Please leave a review or tell someone about it. Head to seniors.com.au/podcast for more episodes. May your life be booming. I'm James Valentine.See omnystudio.com/listener for privacy information.

It's time for another listener Q&A! This time we cover paying off student loans, old pensions, alternative to pensions and ISAs and much more. Shownotes: https://meaningfulmoney.tv/QA2    00:40   Sophie - My question is that I am about to start earning a lot more than I thought I was as a graduate. I have always been told to ignore my student loans by my parents as it's essentially a tax, but looking at some calculators I would pay it all off in 25 years before it gets cleared and pay more than double the £45,600 in interest. I'm thinking of trying to overpay it off more quickly than that as it seems very big to have especially with 7.3% interest rate. I'm not sure if I should prioritize this, as I could start now, but as I'm starting work I'm still very uncertain of what to save and how I should treat this debt. Or should I not worry about it this early on? 06:55   Ellie - My partner recently traced a pension from an old employer. When he contacted the company they told him the pension was all paid out to him when he left the company, 9 years ago. He was 28 at the time. Is that possible? I believed it wasn't possible to access pensions until 10 years before state pension age. The exceptions I'm aware of (certain types of job/illness) aren't relevant here. I can't believe this pension would have had particularly special properties. It was while he was working for Experian. He doesn't remember receiving a lump sum, and is checking with his bank (it's too far back to see online). Did the person he spoke to just make a mistake? He is reluctant to go back to them without anything concrete, and it is hard to trust what they say. Any advice on what to do next? 12:15   Joanne - I am a higher rate tax payer and contribute to a SIPP on top of my employer pension (very generous DB scheme) to keep my earnings underneath £100k so that I can benefit from free childcare hours and about the 60% tax trap bracket between £100-£125k. However, I am now breaching the annual £60k pension allowance and so end up paying significant tax on the additional pension contributions in my self assessment. I am so aware that this is a privileged position to be in and want to contribute my fair share of tax but I wondered what other channels I should be exploring to be as tax efficient as possible please (I have never dabbled in VCTs!) 18:44   James - How do I weigh up the relative value of AVC on my DB pension rather than investing in a LISA or S&S ISA where I retain my capital? 22:25   Giles - I have fallen into the 60% tax trap on a number of occasions, to mitigate this I have tried to top up my pension to get my earnings below 100k to reduce my tax bill. Being the main earner and with 2 very expensive teenagers I don't have enough spare cash to do this easily so have taken the money out of a S+S ISA in the past. I know this shifts the balance of my assets massively into pensions but it seems worth it to reduce tax. My question being is this a reasonable plan? Is it a good idea to do this or am I better keeping retirement options more flexible with a larger ISA pot?

Patrick covers some powerful ways to engage in faith-based conversations, especially when bridging gaps between different beliefs. He discusses essential reading materials for solidifying your arguments and how audio resources can facilitate sensitive discussions. Plus, he tackles the Olympics' controversial artistic choices and the deep resonance of personal stories through faith journeys.   Bev - We found out my husband is a product of IVF and his parents never told him. He is struggling now with his identity and his parents are denying it. What should we do? Should we have children now that we know where he came from? (00:34) Michael - What do you think of the John Lennon son 'Imagine'? They played that song at the opening ceremonies. They said it has become a staple at the Olympics. I find that song insulting to religion. (11:21) James - How can I take Philippians 4 verses 6 and 7 to heart and not feel anxious? (18:29) Dusty - When did the Catholic Church come up with the idea of the Trinity?  If Mary had to be free of sin in order to carry Jesus, wouldn't her Grandmother need to have been free from sin? (25:29) Michael – How do I talk with a fallen away Catholic family member who is now a fundamentalist Baptist? (35:49) Jessica – There's an article in The Guardian that the Olympic “Last Supper” scene wasn't based on the famous painting. (40:25) Luke – I called in 2017 when I was a protestant.  Just wanted to reach out and say I converted to Catholicism.  I'm married and now have a child. (46:43)

Special Guest Host Ken Hensley Today's episode is a deep dive into Ken's journey from being a Baptist pastor to embracing the Catholic faith. He discusses the critical issues of sola scriptura and the doctrine of justification by faith alone. Ken shares how curiosity led him to question his beliefs and how discovering Catholic teachings transformed his spiritual path.   What is “Justification”? James - How much do you think Martin Luther was influenced by a trip to Rome he took in which saw a lot of problems? (30:30) Andre - I really appreciate what you do and I listened to your 30-part series on the Coming Home Network. (33:48) Bob - How do I talk with friends who don't believe we have a soul? (41:28)

JLP Thu 6-20-24 Evil mama spoiling the homeless! Calls: Leave them in their hell! Hr 1 Karen Bass, Weingart homeless building: spoiling is evil. Calls: Responsibility to others? Supers. Hr 2 CALLS: Darius lives with messy mom! Jason fact checks the truth! Bruce: musician's family trauma. Christina ruined her kids! Hr 3 Super Chats, CALLS… Christina: "Mother hurt me." Messiah: Child's mother won't obey. David: Marriage purpose? "Born in sin"? Brandi: Sis trauma: With all in you, stay present. James: How to lead my wife to God? Falling-out with live-in mother! TIMESTAMPS (0:00:00) HOUR 1, BQ: Why do you carry out the works of the flesh? (0:08:30) JLP: No love… Mothers spoil children. (0:15:15) Evil: Karen Bass building for homeless; They don't appreciate or grow! (0:26:05) Weingart: Invest in a life, a woman! Fallen state. You can renew. (0:33:30) FEMI, UK (1st) friend dumped gf: no responsibility? Overcome your hell (0:47:45) ALYSSA, TX (1st) thx! JLP: Don't try to teach! (0:49:50) Super Chats: BQ? Listen to a woman? Hake News (1:00:50) HOUR 2: Bible Thumper Thursday: "That's too loud!" (1:04:35) DARIUS, Detroit (1st) family mess, living w/ mom (hates JLP) (1:16:55) JLP: "Give them the finger." Stop arguing with the Devil. Quiet space. (1:17:45) JASON, Buffalo: Fact Check the truth! (1:24:20) BRUCE, WI, 72, retired, ego w/ music. Family trauma. Problem sister. (1:33:25) BRUCE: Absent late parents. "Who am I angry at?" False image of self. (1:37:45) CHRISTINA, MO (1st) Take no thought! Ruined kids! Pray: Wish well (1:48:15) SEAN, IL (1st) how to pray, come back to the Lord. Silent Prayer. (1:50:15) Super Chats: Listen to women? (1:54:50) Hake News (2:00:50) HOUR 3 (2:03:45) Super Chats: Animal love. "Help." Anger, blood pressure. (2:17:40) KATIE, Cincinnati (1st) Nice brief call after counseling! (2:19:05) CHRISTINA, San Diego (1st) Mother texting, hurt my inner child (2:24:30) MESSIAH, Los Angeles: Baby mother won't obey. Church. (2:32:50) DAVID, Orlando: Purpose of marriage? Sex? "Born in sin"? (2:42:10) BRANDI, HI: therapy, getting worse, sis memories. Stay present. (2:48:55) Super Chats (2:50:15) JAMES, KS: How to wife to God? Had live-in mother: How to forgive (2:54:40) JLP Assignment: Practice being present. Closing

The hosts tackle what it means to be a provider today, discuss how men can balance financial and emotional support, and explore the evolving roles in relationships. In the spirit of the trend “Guys Under 30 Ask, Guys Over 30 Answer”, Jamey answers audience questions on self-compassion, accountability, and being present in a fast-paced world. From redefining traditional gender roles to maintaining healthy relationships with exes, this episode offers relatable insights and practical advice.  Whether you're seeking self-compassion or reflecting on life's journey, Jamey and Liz provide an engaging discussion on modern masculinity and building fulfilling, balanced lives. TIMECODES: (02:58) Topic Begins: Men Under 30 Ask, Jamey (Man Over 30) Answers (04:57) @lookforrev: “What skills have you learned around self-compassion?” (09:22) @AustinCA03: "Dads who had kids relatively early, how do you maintain balance in your life while also providing for your child and spouse?" (13:58) Theo: "What are the interpersonal or relationship skills you wish you could have learned earlier and how would you have gone about learning them?" (20:37) James: How are expectations of what it means to be a provider changing when we are all struggling in this economy? (25:25) Riley: "What are the positives of getting older?" (31:06) "What can I do to help overcome the voice that's telling me to keep being miserable?" (35:49) Jamey asks Liz: "At what point does it become easier?" (39:31) "Who has been able to maintain strong and healthy relationship with their exes?" QUOTES: "I think you fall in love much more easily when you accept the person that you are trying to be in love with." - Jamey “The voice inside my head that I thought was me for 30 plus years is actually a liar. And in the moments where I feel like that voice is really loud, that's a signal to me that I need to behave differently. Because I think it's hard to change the voice, but if you are treating yourself with compassion and you're treating yourself kindly, then that voice will become less high-pitched.” - Liz “In this day and age where more and more women are being seen and valued for their contributions, as they should, have opportunities more than maybe at one time were afforded to them, I think families have to consult and discuss what providing means. It doesn't just mean financially. Does dad provide for the family emotionally, taking care of the home, watching out for the children, taking them to baseball practice or laundry and dishes?” - Jamey "I feel like friendships, relationships are built in the nothingness, in the mundane stuff, and just the normal stuff." - Jamey "I'm gonna look back at this time and think I was so young. I'm not gonna think about all the insecurities that I have right now about how aging is showing up in my body." - Liz “How we can be better in the world, how we can be better to our parents, our children, our friends, our workmates? When you are fully accountable, then you can have real forgiveness for yourself.” - Jamey “If you can see the end in the beginning, you might think that very thing that you were distressed about, knowing that that's what's going to then get you to the next stage. So I think part of the thing to make life easier is embrace where you are in this day.” - Jamey SUPPORT MAN ENOUGH https://manenough.com/newsletter  https://manenough.com/books  https://boyswillbehuman.com  FOLLOW THE HOSTS Liz Plank https://instagram.com/feministabulous https://tiktok.com/@lizplank https://facebook.com/feministabulous https://x.com/feministabulous http://elizabethplank.com/ Jamey Heath  https://instagram.com/jamey_heath_ https://tiktok.com/@jameyheath https://x.com/jamey_heath_ https://facebook.com/jameyjaz http://jameyheath.com/ Executive Producers: Justin Baldoni, Jamey Heath, Tarah Malhotra-Feinberg Learn more about your ad choices. Visit megaphone.fm/adchoices

The following is a conversation with Erin Kenney, the CEO of Nutrition Rewired. Erin is a registered dietitian with a Master's in nutritional science. She's done an amazing job in building a business that helps people take control of their lives through modulating their diet, improving their gut health and ultimately looking after the gut microbiome. Today's conversation was far-reaching. We talked about fibre, We talked about gums, we talked about artificial sweeteners, carbohydrates, fats, proteins, and supplements. This was pretty much an A to Z of what to do to look after your gut health, what works and what doesn't.  I wanted to take this opportunity to thank all of the listeners and supporters of the podcast for everything you've done to help us build the name, and the brand, and to get the message out there around microbiome being critically important and gut health being important for wider body health. Timestamps: 00:00:00 Introduction 00:01:19 How Erin became interested in gut health 00:04:32 Biggest impacts on Erin's health 00:06:09 Stress and gut health 00:09:22 Does caffeine give us energy? 00:14:46 Bone broth instead of coffee 00:16:06 Coffee and our liver 00:16:48 Taking control of gut health 00:18:42 The role of a good breakfast 00:21:55 Lean muscle mass and women 00:23:07 Importance of protein 00:26:32 Role of supplements 00:29:35 Creating an optimal regime 00:32:33 Ketogenic diets 00:38:34 SIBO 00:46:24 Microbiome testing 00:49:00 Vitamin D 00:51:51 Green powder supplements 00:55:19 Heavy metals 01:01:38 Artificial sweeteners 01:05:58 Gum instead of gluten 01:10:18 Palm oil 01:12:20 Nutrition Rewired   Full Transcript: [00:00:00] JAMES: The following is a conversation with Erin Kenny, the CEO of Nutrition Rewired. Erin is a registered dietitian with a master's in nutritional science. She's done an amazing job in building a business up that helps people take control of their lives through modulating their diet, improving their gut health and ultimately looking after the gut microbiome. [00:00:24] JAMES: Today's conversation was far reaching. We talked about fiber, We talked about gums, we talked about artificial sweeteners, carbohydrates, fats, proteins, supplements. This was pretty much a A to Z of what to do to look after your gut health, what works and what doesn't. I really appreciated how simply Erin put lots of complicated topics for the listener. [00:00:49] JAMES: She podcast so that might explain why she was such a good guest. This is an amazing episode for anyone who's wanting to enter into this field, but we also digged into some [00:01:00] technical aspects, and I learned a lot over the course of the conversation. This is Inside Matters. My name is Dr. James McIlroy. I hope you enjoy it. [00:01:16] JAMES: So how did you get interested then in gut health? [00:01:19] ERIN: It was a very selfish Journey for me, I, from a very young age, struggled with digestive issues. They had to take me off of being breastfed when I was a baby and got on to formula fed. And, you know, I was struggling with a ton of digestive issues. And basically they just slapped me with a diagnosis of lactose intolerance. [00:01:42] ERIN: And basically what most of my childhood, struggling with horrible pain, horrible bowel movement. I will honestly say that a majority of my childhood was spent in the bathroom because Of how bad things were with my gut and [00:02:00] I really didn't have much help, you know, it was kind of just, you know, let's watch out for dairy and let's watch out for, you know, triggers and things like that, but it was kind of just, you know, take elodium and, and hope for the best. [00:02:13] ERIN: So, fast forward, you know, as I started to get older, I was a full time athlete, I was, you know, in high school, and really wanted to start taking care of myself. I struggled with mental health issues, I lost my father to his battle with mental health struggles, and it started to connect with me that on the days when my stomach was at its worst, my mental health was also at its worst. [00:02:42] ERIN: And so I was starting to make these connections and, you know, learn and, Spent a lot of time on Google, which, you know, we all know is not a reputable source of information. But nonetheless, I was, I was interested in, in seeking alternative ways to help [00:03:00] support my body. And when I went to college, I didn't really know what I wanted to major in. [00:03:05] ERIN: And I thought, you know, nutrition sounds like something that I could use some support with, considering everything that I'm going through and. You know, the things that I've read online and from there on out, it was just about healing myself. I learned, you know, after being on a decade of medications from birth control to fix the hormone imbalance, from PPI's to address the chronic acid reflux, you know, it was just being thrown medication after medication because doctors were just treating symptoms. [00:03:40] ERIN: So I, I've dedicated all my time to researching about, you know, the gut microbiome and nutrition. And then I was in school for nutrition. And I started following people in the field who were talking about these things, talking about the gut microbiome, talking about how nutrition impacts mental health. I [00:04:00] just lit up, you know, it was, it was like, for the first time in my life, someone was speaking to me and, you know, I felt validated too, for so many years, it's like, oh, it's just all in your head, you just gotta, you know, stop eating dairy, and I have now, Basically built a business on helping individuals get to the root cause of their digestive issues and imbalances because of everything that I went through. [00:04:25] ERIN: So I'm incredibly passionate about what I do and I'm just really excited to chat with you today. [00:04:32] JAMES: So what were some of the key things then as you went along your own journey that made the biggest impact to your own health? [00:04:39] ERIN: I will highlight a very important one that I think a lot of people don't consider and that's stress. [00:04:45] ERIN: It's Uh, you know, there was a lot of stress in my life and I was kind of putting that on the back burner as something that, yeah, you know, I'm stressed, I'm, you know, working out intensely and doing all this stuff, but that [00:05:00] can't, you know, that's not going to make a huge difference. So I really had to prioritize stress as one of them. [00:05:06] ERIN: Diet, as we all know, you know, is incredibly important. My diet was Not supportive of what I needed for my body. I played around with a plant based diet, and I have no shame for anybody who is, who loves their plant based diet, but for me it was not the right fit. I needed a plant forward diet, but I also needed protein. [00:05:30] ERIN: I needed to really hone in on, like, focusing on diversity of what I was eating. I was eating a lot of the same things over and over again. I think a lot of us can get into a rut pretty easily with that. And then I learned, you know, how much diversity our gut needs in terms of the microbiome. So stress, diet was huge. [00:05:50] ERIN: And then I had to address imbalances. I had small intestinal bacterial overgrowth because I was On proton pump inhibitors long term, I had yeast [00:06:00] overgrowth. Uh, so a lot of these things I learned from stool testing and I was able to Going [00:06:09] JAMES: back to the stress then. So how do people identify if their stress levels are too high? [00:06:15] JAMES: And you mentioned exercise, maybe exercise is a double edged sword. If you do too much, it might be actually a big stress on your body. So what are your tools and tips then for stress management? I guess a little bit is good for you, right? But too much is detrimental. [00:06:31] ERIN: Sure. Yeah, we call that eustress, right? [00:06:33] ERIN: It's that, that, that period where you're kind of in that Goldilocks sweet spot where stress is, is beneficial. It helps us grow. It's good for inflammation. But in terms of my own journey, I, I would love to say that I had this like, you know, lovely revelation of your stress and you need to pull back. It was. [00:06:53] ERIN: One of those moments, I say this to clients all the time, it's if you listen to your body when it whispers, you don't have to hear [00:07:00] it when it screams. And I was at the screaming point where I was running seven to ten miles a day and You know, I got to a point where I couldn't barely even walk because I was just like so obsessed with how exercise made me feel, how good it was for my mental health. [00:07:16] ERIN: So I was basically forced in to loving yoga. It wasn't love at first. It was a, it was, it was not love at first. It was a rocky relationship to begin with, but I thought this is the only thing I can do. Yoga is the only thing that I physically can do that's going to support my mental health and I just fell in love with it. [00:07:37] ERIN: And to this day has always been an incredible stress management technique for me because not only do I get to move my body, but I'm doing it in a way that's not inflammatory. I'm doing it in a way where I'm, I'm like feeling everything of what's going on in my muscles and how tight I am and breath, right? [00:07:57] ERIN: I'm breathing. So a lot of times [00:08:00] people will say, I'm just not good at meditation. And I'll say, well, have you tried yoga? Have you tried walking or yoga? Like those are also forms of meditation because you have to focus on your breath. If you're in a down dog position and you're sweating and you're tired, the only way you're going to get through that pose is that you're going to breathe. [00:08:20] ERIN: So meditation has been, meditation and yoga have been incredible assets to my healing journey, but also just the way that I Manage my stress now and also just the awareness of what is my threshold for stress and what are some of the signs that come up for me when I know I've hit my breaking point and become more irritable towards the people that I love. [00:08:45] ERIN: My sleep starts to suffer. My digestion starts to go off a little bit. So these are kind of my. Red flags of, Hey, Aaron, let's check in with yourself. You might be doing a little too much. So are those [00:08:59] JAMES: [00:09:00] the sort of whispers then before the screams, the irritability, the sleep? Yeah. [00:09:05] ERIN: And for females to even males, people think, yeah, changes in hormones, like you'd notice changes in your menstrual cycle or your libido, like those types of things can, can also take a hit when you're dealing with chronic stress. [00:09:22] JAMES: Cause I guess a lot of people think, Oh, well. You know, I'm a little bit tired today. I'll just drink more coffee or I'm a little bit sore today. I'm just gonna train more But what you're saying is maybe you need to just slow down to perform [00:09:34] ERIN: better. Exactly. And I also love to talk to clients about how caffeine actually works. [00:09:41] ERIN: Caffeine doesn't give us energy. It actually blocks these adenosine receptors in our brain. And these adenosine receptors are like those little whispers of us hearing the signal that we're tired. And once that caffeine wears off, those [00:10:00] adenosine receptors don't go away. They're still there to then tell our brain, hey, we're really tired. [00:10:07] ERIN: So I always Tell people that, that you're not giving yourself more energy by loading up on caffeine, you're decreasing your perception of how tired you are, which is allowing you to push through something, whether it's a workout or a long, you know, night at work. And over time, especially your body is going to shut down. [00:10:33] JAMES: As an avid coffee drinker, I'm sort of running through my head, am I drinking? I'm not listening to the whispers, but have you got recommendations then for your clients around coffee and caffeine, like some rules or suggestions in terms of when to drink, how much to drink? Cause that could be really interesting for the listeners on Inside Matters. [00:10:52] ERIN: My number one tip is that, and I say this to clients, you have to eat a full breakfast before you have your [00:11:00] cup of coffee. And when we do this experiment, sometimes my clients will say, after I had, [00:11:10] ERIN: they'll say, I didn't, I didn't even want my cup of coffee after I had my breakfast. And it's because we're not using artificial fuel, right? We're eating. Some nice eggs with, you know, some sweet potatoes and avocado and, you know, we're energized and now we don't have this craving for a stimulant. And I'm not shaming caffeine completely, especially coffee. [00:11:36] ERIN: There's numerous health benefits in addition to the microbiome, but it's, it's evaluating that relationship with it. And so. So I always say, no coffee until you've had a, a, a full breakfast. Coffee does not count as breakfast. I tell them no caffeine after noon. Uh, the researcher, Michael, is it, oh, Matthew Walker. [00:11:58] ERIN: He talks about [00:12:00] metabolism of caffeine and, you know, the half life and how long that caffeine can stay in your system. And You could be laying in bed at night if you had your cup of coffee at 3 p. m., and you're still metabolizing it in the middle of the night, impacting your quality of sleep, and then the cycle just starts again, right? [00:12:18] ERIN: You wake up, you're exhausted, you're groggy, and that's because That's You know, that the later in the day that can impact your sleep. [00:12:27] JAMES: So someone maybe like me who wakes up in the morning and finds a way over to the coffee. I know myself. It just, it's like part of the routine and I kind of love it to be honest, but so someone's addicted to that morning routine and they come to you and they become a client. [00:12:45] JAMES: How do you get them to break that cycle and get into the routine of. I don't know, maybe cold shower and then they come in, they've had their breakfast, then they have their coffee. Is it a slow process or do you just say, right, that's it, cold turkey. [00:12:58] ERIN: I'm never, [00:13:00] I'm never militant with my clients ever because I'm also human and the I also understand that, you know, when we make changes, that they don't need to happen overnight and it certainly doesn't usually feel good to our nervous system or mental health wise when someone says, just cut it out. [00:13:17] ERIN: And now, don't get me wrong, I've got clients that are all or nothing and they just, when I tell them generally what I've just told you, they'll say, forget it, I'm cutting it out. I want to do this, I want to do it perfectly, that's type of person. Right. So when we, when we start, you know, I, I get to know what their relationship is like. [00:13:36] ERIN: I had a client one time and she had this, you know, whole setup in her house. The whole side of the wall was dedicated to coffee. So for the client like that, we're going to say, okay, you know, let's. Maybe switch to a decaf or switch to, you know, less of a serving and put more, you know, almond milk in it to just cut down on the, on the portion. [00:13:56] ERIN: And then we, we work our way towards, uh, maybe after [00:14:00] breakfast, but there's lots of alternative things that you can do to still have that routine. So I'll, I'll just give my example. I drink a bone broth, hot chocolate in the morning and that bone broth, hot chocolate. It doesn't, you know, contain loads of caffeine. [00:14:16] ERIN: It's still got the gut health benefits. It's still bitter because of the cacao. And so I drink that it's got 20 grams of protein and it's warm and it's, it still gives me that so people can find, you know, there's all these like, you know, medicinal mushroom type of blends and things like that. So if you can find something that you like. [00:14:36] ERIN: That isn't that, you know, bursts of caffeine and acidity to your stomach on an empty stomach, then that might help the transition be a little bit easier. Thank [00:14:46] JAMES: you so much for that example. Mark, who's one of the hosts here at the podcast studio has bone broth and cayenne pepper. Okay. There you go. In the morning. [00:14:56] JAMES: Yep. And bizarrely, I was speaking to him on Tuesday because we're [00:15:00] planning for the week and we're talking about you. Um, and I said, cause he was drinking in the same type of Yeti coffee mug as me. And I was like, Oh, nice mug. Like you're one of the good guys. Um, is that a coffee? He explained that no, it was just his bone broth and it's part of his routine to get, you know, great nutrition and in the morning and it's still warm. [00:15:18] JAMES: And as you say, it sort of feels like a coffee, but it's not really a coffee. So. Um, I'm going to go for it. I'm going to start my day with some bone broth. [00:15:27] ERIN: I expect a report back. I'd love to hear from you. [00:15:31] JAMES: I'll give you a report. I can't promise to stop the coffee. That's not the goal. I might go from two shots to one shot. [00:15:39] JAMES: I think two shots to one shot. That's success. You know, you mentioned the health benefits of coffee. It's really interesting. I've had several people come on. So one of them was Professor Debbie Shawcross, who's like a leading authority on, on liver health, basically saying drink more coffee because for some reason it's protective [00:16:00] against, um, cirrhosis and, uh, non alcoholic fatty changes. [00:16:05] JAMES: So there's, there's something in there, isn't there? [00:16:06] ERIN: This, I think there's so many, there's so many asks. Aspects of it. I think, you know, you and I are big into gut health, right? So we're probably gonna always look at it from a gut health lens. And, you know, my scientific brain goes to, well, you know, coffee helps people have a bowel movement, right? [00:16:22] ERIN: It stimulates the liver and digestion. And if we're having regular bowel movements and, and stimulating that process, that's great for the liver, right? We don't want, that's good. You know, sluggish digestion. So just one of the many, I mean, there's, there's antioxidants in there, there's. The polyphenols that feed beneficial bacteria and you know, the liver and the gut are most certainly connected. [00:16:48] JAMES: So could you maybe walk the listeners through some of the other things you try and help your clients with? So you mentioned stress, diet, maybe we can unpack diet a little bit more because that must be huge. We hear. In terms [00:17:00] of. You know, taking control of your health and your microbiome and your gut. [00:17:04] ERIN: Sure. Yeah. As a dietician, you know, people expect that we just focus on food and we, we often do. There's not usually one client that comes in that there's not something diet related that we're talking about and everyone's starting at different ends of the spectrum, right? Some people have no knowledge that. [00:17:23] ERIN: You know, they're not even getting nearly enough protein. They're not eating any vegetables, you know, that, that kind of standard American diet where a lot of processed foods, you know, a lot of refined grains that aren't providing any fiber or nutrition. So there's so many different ends of the spectrum of things that we work on. [00:17:41] ERIN: And then you have, you know, clients who have overgrowth or SIBO, like SIBO, for example, small intestinal bacterial overgrowth, and they're eating super clean. You know, air quote clean, where they're not touching your processed food. They're loading up on fiber because they've been told, [00:18:00] fiber, fiber, fiber, if you want better gut health, eat more fiber. [00:18:04] ERIN: And that's making them feel worse. So there's that end of the spectrum where we have to. obviously address the underlying root cause, but we need to simplify their diet, make it easy for them to break things down a little bit, give their gut some rest. And then there's the other spectrum where, you know, I have a woman come to me and she's eating one egg for breakfast. [00:18:25] ERIN: And I'm saying, where's your protein? She said, well, I haven't had an egg for breakfast. I said, well, one egg is six grams of protein. We need 25 or 30 grams of protein to start our day. Right? So there's, there's all these missing links. [00:18:42] JAMES: We've talked about breakfast quite a lot then because as you know, within the sort of wellness health sphere, there's this debate around intermittent fasting and it sounds like you're very much in favor of, you should have a really great nutritious breakfast with macronutrients to set you up [00:19:00] for the day. [00:19:01] JAMES: Is that the case? So you're big, big on breakfast for you and your clients. [00:19:06] ERIN: So for me, yes, I, I've always tried to adopt that my philosophy on my own nutrition and what I think makes me feel best is not going to determine what I think is best for a client. And I think that's really important. I think a lot of, you know, health professionals, it's, you know, they find something that works for them or works for some of their clients and then everyone should do it. [00:19:28] ERIN: Now. Do I often, would I recommend intermittent fasting to people? No, it wouldn't be my first recommendation for the majority of people that I work with. I have worked with clients and most of those clients end up being males who do really well with intermittent fasting. Maybe it's males or oftentimes it's women who are post menopause and they have specific goals, maybe related to body composition and hormone balance. [00:19:55] ERIN: And they found that these practices of intermittent fasting in whatever [00:20:00] fashion make them feel really good. A lot of these are CEOs of companies that like, they love the focus aspect of it during the day. And, you know, so I'm just going to come in and I'm going to work with them and say, Well, if this works for you and you're not, Uh, binge eating at night and feeling like you're deprived during the day and you're getting good nutrition and you're fast, you're feeding window, then I'll work with you. [00:20:23] ERIN: We'll work with where you're at. But the majority of my clients, you know, especially those that are female and they're still cycling, this can really disrupt their hormones. It can disrupt their ability to work out during the day. And so we have to really personalize that if it's going to be part of the protocol and, and the research that I've seen, my biggest concern is the body composition. [00:20:46] ERIN: I've seen the loss of muscle mass be a potential and I think that's a huge issue for a lot of people, right? We all need nice lean muscle mass and if fasting, you know, if we continue to see research that [00:21:00] fasting negatively impacts our lean muscle tissue, I don't love [00:21:04] JAMES: that. Yeah. I mean, intuitively it makes sense, right? [00:21:08] JAMES: You stop consuming calories, you've got no protein intake, therefore there's no amino acids moving around. So it kind of makes sense that your body is going to look for energy. Yeah. And I guess muscle is, is, is a target is probably less desirable than, than fat and certainly your glycogen stores kind of make sense that it forms part of that source of energy that we need. [00:21:32] JAMES: Our bodies are incredible. I'm just on the muscle mass thing. Oh yeah, absolutely. And on the muscle mass thing then, you know, I guess maybe some women listeners might think. It doesn't really apply to me. You know, that's for men that lift and train and work out, but that's not the case, is it? It's, it's just as important, maybe even more important. [00:21:54] JAMES: I, [00:21:55] ERIN: I'm a, I'm not a buff woman. Okay. I, I [00:22:00] get, you know, up to 130 grams of protein per day. And I'm not, you know, what, what people, a lot of women would think I would turn into by eating as much protein as I do. But I will tell you. Some things about me is that I'm very strong, very strong in the gym. I have a good lean body mass My hormones are balanced. [00:22:20] ERIN: I don't have cravings for sugar throughout the day. Those are the things that protein does for us. And so I think we need to understand that from a, you know, biochemical aspect, protein is essential. It is protective. It increases our metabolism. It's the only macronutrient that has a higher thermic effect of food like that. [00:22:41] ERIN: That's incredible. So we, you know, just old school recommendations that always seem to sneak their way into further generation. [00:22:50] JAMES: So, um, how does someone know, I mean, if they're not got the benefit of working with an expert dietitian like you, how do they know if they're on the right track for protein? And in [00:23:00] addition to like the actual macronutrient gram per day recommendations, how important is the source of protein for people? [00:23:07] ERIN: Hmm, that's a great question. So we have two different types of protein. We have a complete protein, which is basically a protein that combines all of the essential amino acids, which amino acids are the little building blocks of what protein is. And essential, meaning our body needs them to survive and to produce the daily functions and live optimally. [00:23:30] ERIN: So that's, that's an essential amino acid. That's a, that's a complete protein. Those Food sources are things like meat, fish, eggs. These are animal proteins. And then you have the incomplete side where we have incomplete, and these are going to be plant based foods. There are a few plant based foods that are complete proteins, but the majority, things like beans and lentils, these are not complete proteins. [00:23:55] ERIN: So they're just missing a few of those amino acids that we need for [00:24:00] essential daily living. Now, this doesn't mean that non complete proteins are not beneficial, but the requirement of how much you would need per day slightly goes up because the digestibility, how able we are to digest these proteins, is not as efficient, you know, if you were to eat eggs or a piece of fish, for example. [00:24:24] ERIN: So my approach is try to get some really good quality complete proteins in your diet and also get some incomplete protein sources in your diet, like lentils and beans and nuts and seeds, if that's something that works with, you know, your individualized physiology. But this idea that everything has to be a complete protein, I think is also, you know, too far left because, you know, bone broth isn't a complete protein, but it's still an excellent source of protein. [00:24:53] ERIN: And I'm still going to have, you know, salmon for dinner, and I'm going to hit my Total, you know, amino acid needs for [00:25:00] the day, if you will, [00:25:01] JAMES: and the total amino acid needs for the day. How does one calculate what they may or may not need? [00:25:07] ERIN: That's a great question. So the amino acids themselves, you could use something like I think chronometer might do this on a very, you know, specific level. [00:25:17] ERIN: I don't know if it goes that into detail, but we look at the total grams of protein as a dietitian, you know, so we're looking for Usually around 1.2, up to two kilograms, sorry, grams per kilogram per day of protein for each person. So the minimum, like the USDA requirements for protein, we're talking 0.8 grams per kilogram per day for a person. [00:25:43] ERIN: Uh, however you need to convert that, but it's what 0. 8 is not a recommendation I use for any of my clients. We're always going above that, especially when my clients are more active or they're looking to optimize their body composition. We're looking closer to like, uh, up to one [00:26:00] to two grams per kilogram. [00:26:03] ERIN: So that's your, that's your goal is to really figure out like what is that number for you based on your body weight and then how can you spread that throughout the day. You know, you don't have to completely spread it evenly, but I usually just tell people to make it easier. Get 25 to 30 grams at each meal and then adjust, you know, add to that to meet your needs and then add snacks where appropriate. [00:26:27] ERIN: But that's a good baseline if they're kind of starting from ground zero. [00:26:32] JAMES: That's an amazing summary of protein. Thank you so much. How do supplements fit into that? And I'm asking you in the context of this minimally processed versus like ultra processed food debate we have all the time. So some people say, Oh yeah, whey protein supplement contains the essential amino acids. [00:26:50] JAMES: Go for it. But other people say, Whoa, it's so processed you shouldn't have it. So what are your thoughts then, um, on supplements and How do [00:27:00] they fit in? [00:27:01] ERIN: I think supplements can be great. I think they have a time and a place and you know, a lot of the time is convenience is, is a big reason, you know, for somebody that has a protein goal of 180 grams per day. [00:27:15] ERIN: You know, meeting that might be really challenging if they're not throwing in some whey protein into a smoothie or a shake. Whey protein is excellent. Yes, it's processed, but so is your oatmeal and your brown rice and your ground meat. Like everything is processed. And if you choose grass fed, you know, protein powder, a whey protein powder with minimal ingredients that maybe just has whey, maybe some, you know, sweetener and something to Add some salt or whatnot. [00:27:43] ERIN: But if you have like a three ingredient protein powder, it's high quality grass fed, and you add that to your smoothie, you're doing wonderful things for your body. So I think it, it really comes into when you see these, you know, those, you know, body building companies always start these protein [00:28:00] powders and it's , you know, strawberry cheesecake or cookie dough. [00:28:03] ERIN: Yeah. And. I used to eat these. I'm not, I'm not saying I've never tried them. They do taste good. They do. They taste just like they say they do, or at least when you're, you know, eating healthy, they do. And, you know, that's when we get into the long list of ingredients. We see, you know, binders and gums and artificial sweeteners. [00:28:24] ERIN: And we see, you know, things that can really not make us feel good, especially from a gut health perspective. So a good quality You know, one that's been maybe tested for heavy metals, things like lead that can be common in plant based protein powders, arsenic. If we get a good quality protein powder, minimal ingredients, uh, high quality testing, ask for the certificate of analysis from the company. [00:28:51] ERIN: Then, you know, you're, you're, you're gonna help yourself out if you're struggling to get your protein intake. Thank you for [00:28:57] JAMES: that. I've, I've got so many things written down to ask, you know, I'm [00:29:00] actually not even sure where to start. Fibers, gum, sweeteners, heavy, heavy metals, other macronutrients. Before I jump into sort of more supplements and sweeteners and the heavy metals, I'd kind of like to. [00:29:16] JAMES: Round off the diet piece with you more generally. So maybe talk a little bit about fiber, um, fruit and veg, talk about carbs and fats. Yes. You know, when you're working with all your clients and for yourself as well, how do you build like an optimal diet? Big question. [00:29:35] ERIN: Yes. No, it's, it's a great one. How do you create like an optimal regime? [00:29:38] ERIN: Absolutely. So we start with again, base, like we kind of find this base for people to start. And that's where the three meals per day comes in. You know, if someone's not used to eating breakfast, we're going to try to get them to start eating breakfast, lunch, and dinner, or we can call it meal one, meal two, meal three, whatever your schedule is like. [00:29:56] ERIN: And at that meal, we're aiming to get again, that 25 to 30 grams of [00:30:00] protein. We want to hit. half a plate of vegetables that are colorful, usually like darker leafy greens tend to be an area that a lot of people struggle. So we try to look for those dark pigments. And then the other portion of that, usually I say like a fist of carbohydrates minimum at your meal. [00:30:18] ERIN: And we try to choose carbohydrates every meal and we try to choose carbohydrates that are more complex. So things like. higher fiber carbs. So if you're looking at a label, you're going to see fiber there. But if you're just in the produce section and you're looking at carbohydrate sources, potatoes have fiber, both sweet and white potatoes. [00:30:37] ERIN: Uh, things like quinoa, plantains, bananas. These are all sources of carbohydrates that are very nutrient dense. If a client's more active, those carbohydrates Intakes might go up. We might be consuming more carbohydrates per day. Um, and then fat is, is incorporated into those meals. We, we try to focus on healthy fats, particularly omega [00:31:00] 3 fats. [00:31:00] ERIN: So things like wild caught salmon, we're looking at things like mackerel, sardines, herring. These are omega 3 rich fats that we have to get two to three servings per week. So we've got three meals per day, protein, vegetable, carbohydrate, healthy fats included. And then, then we kind of go from there. We say, okay, are you working out? [00:31:22] ERIN: Okay, well, we need a pre workout, post workout routine. And how can we adjust there? Um, you know, you're training for a marathon. Okay, your carbohydrate needs go up significantly. We're going to have to adjust that. But once we have that base, you know, and, and You don't have to focus so much on the grams of fiber, although we are aiming for about 25 to 35 grams per day, if you're choosing complex carbs, if you're choosing half your plate of vegetables, then you're likely going to hit your fiber needs for the most part. [00:31:53] JAMES: It's going to happen, right? It's going to happen just by default, you know, because it's quite difficult to [00:32:00] find the fiber on the foods and to figure out. [00:32:04] ERIN: Yeah. And if you're focusing on it, we're [00:32:08] JAMES: sorry, there's a bit of a, a bit of a, a like you. Please continue, please. [00:32:13] ERIN: No, no. I was just going to say, so if you're focusing on getting the majority of your foods from less processed foods, then you're again, likely to hit those fiber goals because you're going to be choosing those types of fruits and vegetables and things like that that just naturally come with, you know, the, the benefit of the fiber. [00:32:33] JAMES: Absolutely. I'm going to just push you a little bit, um, on. Ketogenic diets and people even go more extreme and they have these um, carnivore diets. They're great. And you've been quite clear in your recommendation around you should have some carbohydrate with each meal. So, could we just unpack that a little bit and what some of the, you know, why is that part of your recommendation versus, you know, just eat meat and [00:33:00] veg, for example? [00:33:01] ERIN: Mm hmm. So, the, the main focus there is blood sugar balance and this is something that people think this is a discussion just reserved for people who have, say, diabetes. You know, oh, well, you know, they gotta watch their blood sugar and, you know, gotta make sure they don't eat too many carbohydrates. But the reality is, is we all should care about blood sugar. [00:33:22] ERIN: Blood sugar impacts our cardiovascular system. It impacts our mental health, it impacts our hormones, it impacts our muscle growth and maintenance. So having stable blood sugar throughout the day is absolutely key to optimal performance, energy, all those things that we're talking about. And so being able to get a steady adequate amount consistent throughout the day is going to allow that blood sugar to just kind of have this nice little up and down throughout the day. [00:33:52] ERIN: And we're going to stay within this nice range that the body likes to stay in for optimal health. When you go get your blood work done and you get your [00:34:00] hemoglobin A1C tested, that's your report card of how well you've been managing That blood sugar over the past three months, how well you've been staying within that range. [00:34:10] ERIN: And when you don't eat carbs for breakfast, and you don't eat carbs for lunch, and then you have a carb dinner, you're more likely to see a larger spike in those blood glucose levels. Again, this isn't the case for everybody. If somebody has been on a low carb diet, and they've maintained that, and their blood sugar is great, and they're feeling awesome, I'm so happy for them, and I would support them in that way. [00:34:34] ERIN: But for the majority of us, We have these habits where our carbs are not distributed properly. We're not eating the right amount. We're either eating too much in one sitting, not enough at one sitting, and we're wondering why we're craving sugar all the time, and why we're tired all the time. And if we just got high quality carbohydrates at every meal in adequate amounts, not overdoing it, not underdoing it, [00:35:00] we might find a really healthy balance. [00:35:02] ERIN: And not to mention, the trouble with those low carb diets is the number one symptom is constipation. Because These carbohydrates feed our beneficial bacteria. I probably see 10 to 15 stool tests per week, and any time I see someone come in with a carnivore, keto, low carb diet, they have very low beneficial bacteria. [00:35:30] ERIN: And it is pretty much causation, right? We can pretty much assume that the correlation there is because they're not So, my theory, you know, the, the keto diet, it's originally designed for, for medical purposes, and it's incredible for, you know, patients who are diagnosed with a, a type of epilepsy, and it has, been proven to And, uh, yeah, I mean, I don't [00:36:00] think that the majority of the United States needs to be on a carnivore or ketogenic diet, especially long term. [00:36:08] ERIN: We don't really know the long term effects of eating, you know, a ketogenic carnivore diet. it's, You know, I suspect that a lot of people that have found that they feel so good on those diets could be because they have an underlying gut imbalance, and now they're not feeding it with any fiber, any carbs, and that's kind of maintained their symptoms, so they feel really good. [00:36:36] ERIN: And that's, that's just a theory, it's just my thought, you know, that a lot of people find those diets because they're looking for relief and to feel good, and Ultimately, we all want to feel good, right? But if we're not addressing a root cause, then that, that's a, that's a problem, especially if it, it forces you to be on that restrictive of the diet. [00:36:57] ERIN: I [00:36:57] JAMES: mean, the way I like to describe the carnivore diets [00:37:00] to some people is you're essentially starving your microbiome. Yeah. It's not getting anything that it needs, really. I mean, there's, there's some microbes that can metabolize amino acids, um, and, and maybe some more complex chains and proteins, but it's, as you mentioned, it's really the fibers. [00:37:23] JAMES: It's the complex carbohydrates that they really, truly need. [00:37:27] ERIN: Yeah, there's, there's a few specific bacteria that the few specific bacteria, the Fecalobacterium Presnitzii. Uh, the aphromancia, these are two keystone, I'm sure you're familiar with them, they're two keystone bacteria in our gut. And one of the things that they thrive on is polyphenol rich foods. [00:37:47] ERIN: Polyphenol rich foods are going to be things like our berries, our, you know, pomegranates and grapes and those, those dark pigmented. fruits and, uh, leafy green vegetables, which wouldn't essentially be [00:38:00] allowed on some of those diets. And those are keys on species for protecting our gut lining for protecting us against things like inflammatory bowel disease. [00:38:10] ERIN: So I just, I don't know how you could convince me that a diet void of all these amazing foods and mentally for myself, I could never, you know, that's just. No, it's not for me. [00:38:26] JAMES: I've got a note to ask you about your diet and your routine in this totality, but just like to explore this, this fiber concept a little bit more. [00:38:34] JAMES: So one of the things that you said at the start, which I think was absolutely fascinating and you just touched on that again with people getting relief. I think maybe you're talking about the SIBO and how things are just going a bit crazy and counterintuitively, whilst perhaps in someone who doesn't have SIBO and who's functioning correctly otherwise, fibre is brilliant. [00:38:57] JAMES: For them, who've got too many bugs in the [00:39:00] upper GI tract, maybe fibre's not so good. So maybe you can walk the listener through that and Also, how you help these people get them to a state where maybe they can tolerate [00:39:08] ERIN: fiber again. Yes. And, and this would go for, you know, certain condition as patients who have inflammatory bowel diseases. [00:39:16] ERIN: Well, you know, if they're dealing with a lot of chronic inflammation, again, fiber is hard to break down. And that's part of what makes it good for healthy individuals, is that it's hard to break down. We don't digest a good majority of it, therefore it feeds our beneficial bacteria. But for those who are struggling, those who really find that, you know, they start to eat. [00:39:37] ERIN: a salad and it completely destroys them or, you know, the thought of any sort of vegetable on their plate is a nightmare. Then we're basically going to go forward and do some sort of testing. So the gold standard for the the SIBO is going to be a breath test. We're going to be testing for three types of gases, methane, hydrogen, and hydrogen sulfide. [00:39:58] ERIN: And then we're [00:40:00] also probably going to do a GI map to look at overgrowths in the colon, the lower part of the digestive tract as well. And If that person has a lot of overgrowth, then typically the course of action is going to be some sort of antimicrobial. And that could be either you could go to your conventional medicine doctor and you could choose to go that route, or you could choose to take the more natural route and use things like berberine, allicin, grapefruit seed extract, neem. [00:40:32] ERIN: These are all natural antimicrobials that have been shown to be very effective at, killing off harmful bacteria, both in the small intestine and the large intestine. And it's not just as simple as killing them off, right? We want to figure out what else is going on. You know, are they super stressed all the time? [00:40:50] ERIN: Do they have low stomach acid? Are they on a proton pump inhibitor, which is again, further reducing their stomach acid. We also want to look at the whole picture so [00:41:00] that this doesn't happen again. Cause the number one thing with SIBO is that people have reoccurrence because they just go in. They say, let's kill this off, but they don't address the fact that they have motility issues, thyroid issues, you know, stress that is just like, unbearable, and then they wonder why it comes back. [00:41:21] ERIN: So that's the, that's the big thing with addressing the gut is that we don't, we don't hone in on one specific thing. It's not as simple as like, oh, vitamin D is low, we, we increase it or. You know, it's, it's okay. So how did we get here? This is your gut is like a forest, right? You go into a forest and you just pull one thing out. [00:41:39] ERIN: You still have the whole forest there. [00:41:42] JAMES: So how do you then in your practice help your patients with SIBO? Do you recommend the berberine, the grapefruit extract, that kind of thing? And have you had good success with people? [00:41:52] ERIN: Yes. Yes. So I, those are the herbs that I like to use. Those are a few of the evidence based herbs that have been very [00:42:00] effective with my patients. [00:42:01] ERIN: And I've seen a lot of my clients get better with just a few rounds of these. Some, they do one round and we've addressed everything else and they're totally better. Some of my clients have had to go through two or three rounds of it to really fully get rid of it. But we'll retest it. We'll continually see those levels go down and down and down. [00:42:21] ERIN: And it's just, it's amazing to, to see people feel better. You start to see. Their iron labs start to go up because they start absorbing their nutrients, their vitamin D levels start to go up, you know, it's, it's a fascinating, you know, uh, progression of how people can be impacted by, by SIBO and for so long, you know, the, the, the statistics show that about 70 people who are, who are diagnosed with IBS actually have SIBO and they'll go their whole lives not knowing that because they're just going to say, well, I've got IBS. [00:42:56] ERIN: It's gotta, you know, be careful, follow a little FODMAP diet, and they don't ever [00:43:00] think to look further. And most doctors, some of them don't even, you know, we were talking about belief systems. Some of them don't believe that SIBO is a thing when it's clinically documented. So [00:43:12] JAMES: still to this day, to this day, for sure, it's still not widely accepted amongst the medical community. [00:43:20] JAMES: And some of the things you're talking about in terms of. Using these, you know, natural means rather than the classical antimicrobials. Also, we're just not there yet, I don't think. What's your [00:43:32] ERIN: experience? Yeah. And there's a lot of great doctors out there, especially gastroenterologists. And uh, I can't give you a long list of them, of great doctors that I know, but I can give you, um, you know, some experiences from clients who their doctors are, are really open to, they have a good understanding. [00:43:52] ERIN: You know, they, they see this in their practice every day. Uh, a lot of the doctors that say they don't believe in it, you know, they're, they're a [00:44:00] little outdated, right? They haven't been keeping up on the research. They have not been seeing patients and, and truly hearing them for what their symptoms are. [00:44:08] ERIN: And I think that, that there actually is, uh, a large amount of. Uh, physicians out there who are, are truly taking it seriously and treating and they're very, you know, there's a lot of doctors who are very quick to treat for, for SIGO with antibiotics and they do recognize how important it is. But, you know, it's just unfortunate that there are some out there that are leaving patients, you know, feeling very defeated. [00:44:35] JAMES: And with regards to the herbs that you recommend, is there like, this is the entrepreneur in me now, just my mind's going, is there like, you know, one supplement that has all the key elements in terms of all the herbs that have been beneficial or do you ask your patients while just. Maybe try a bit of the, the grape for effect, maybe try a bit of the berberine and see what happens. [00:44:56] ERIN: Yes, that's a great question. There, there are [00:45:00] formulations of herbs out there that are designed or supplements out there that are designed specifically for SIBO. So they'll usually have a combination of. You know, some of those more broad spectrum antimicrobials, I typically use them in a more isolated fashion because I love using tinctures. [00:45:18] ERIN: I like to try to reduce the amount of pills that a client will take. So oftentimes, you know, it will be like. Three times a day, you're doing your drops of oregano, your drops of neem, and then we'll do a berberine in a pill form. And, you know, we do that for a course of four to six weeks, and then we reassess symptoms. [00:45:35] ERIN: But there are, there are formulations out there. There's ones that are even more broad spectrum that, you know, are gonna have additional things like wormwood in them, and Uh, you know, things that can address yeast and candida, you know, knowing that those things can sometimes coexist, but the benefit of my practice is that I'm able to test with coins and I'm able to see, like, okay, how can we really hone in on this and instead of doing [00:46:00] this broad, you know, formulation, we do something much more specific to what you need. [00:46:05] JAMES: Yeah, my brain was just ding, ding, ding, ding, ding. And also, I was wondering That's just how it works in my brain. The, the tests that you do, I'm also fascinated. So I'm, I'm very familiar with the hydrogen sulfide, hydrogen methane, because Um, and terabiotics is actually going to be doing a clinical trial, uh, in the IBS area. [00:46:24] JAMES: So I've been reading all about IBSC IBSD, post infectious SIBO and so on. Um, but I wondered because what you're talking about, it's fascinating, it's, it's a combination of the breath test. It's a combination of the stool test. So do you have providers that you go to and that you trust to give you the right kind of data, or do patients come to you having done a microbiome test? [00:46:46] JAMES: Like at home. Mm hmm. [00:46:48] ERIN: Yes. So the majority of, of what I will have clients do with their providers is have their standard colonoscopy, endoscopy, get their blood work done. If they [00:47:00] can get, you know, the things that I like to see, like the ferritin, iron, B12, vitamin D. Uh, so I'll usually have them do that just because it's covered by insurance, right? [00:47:09] ERIN: We try to save clients as much money as possible knowing that these types of cases can be, you know, more intensive and, and costly. And so the stuff that we will do together, luckily as a dietician, we have, uh, different resources where I have an ordering physician on my team who can order the labs for me. [00:47:30] ERIN: And I've been trained to evaluate and interpret these labs over the past 10 years. And so I get these results, we sit down, we go over them together, and you know, we either work with their physician or just on our own, depending on how willing their, their other providers are. We try to work as a team to help this client get better in whatever way that looks like for them. [00:47:54] JAMES: Got it. Thank you. I just wondered if there was like a. Best in class microbiome testing service [00:48:00] that you just thought was unbelievably good. That gave you so many insights. Yeah, [00:48:04] ERIN: I, yes, much more simple. I will answer that more simply here. So the, I love the GI map. I've been using the GI map by diagnostic solutions for several years. [00:48:16] ERIN: I also love, uh, Jenova. That's another really great one. Um, sometimes that might be a better fit for a client based on kind of their symptomatology. But those are really the two main ones. And then, you know, the breath test, I use the TrioSmart because they do all three of the, the, the breath gases versus, you know, if you go get it done in your conventional doctor, they're likely just going to test for the hydrogen and the methane and they might miss the hydrogen sulfide. [00:48:46] ERIN: No affiliations with the brands. Thank you. [00:48:51] JAMES: Thank you for that. Um, you got quite excited when you talked about vitamin D, iron, and ferritin. Can you just like maybe unpack that a little bit? Why is that so important? [00:49:00] [00:49:00] ERIN: These are basic, you know, labs that should be run for all of us. And I laugh about it because it's so frustrating how it's like pulling teeth with providers that you want to know what your vitamin D levels are. [00:49:14] ERIN: Especially when we're in New England over here. So we're not getting UVB rays from the sun to produce vitamin D on our skin for a very large portion of the year. And also just scientifically knowing that 90 percent of Americans are deficient in vitamin D. Vitamin D impacts our hormones, our mental health, our risk for inflammatory bowel disease, everything. [00:49:35] ERIN: It quite literally impacts everything. Uh, so vitamin D, I always have clients advocate for that. And if it's not done over here in the U. S. as a standard blood panel. Iron is another one. Iron typically is tested, but ferritin, the storage form of iron, is not always tested. And this can tell us a lot about inflammation in the body. [00:49:56] ERIN: This can tell us a lot about our body's ability to absorb [00:50:00] iron. So that one is another one. Especially, I work with a lot of athletes, especially endurance athletes, and they tend to be very low in ferritin. And so, you know, if a provider saw, oh, in 2017, your iron looked good, they're not going to test it again. [00:50:15] ERIN: And, you know, hello, it's 2024. Things can change pretty quickly. So, I like ferritin. I also like B12. Both B12, ferritin, vitamin D can tell us that there maybe is malabsorption going on related to SIBO. So, these are things that are common deficiencies that I see in my practice. You know, we should just be knowing regularly what our values are. [00:50:39] JAMES: Got it. Are there any other blood tests that you recommend for the sort of general person? Um, and I'm assuming you recommend vitamin D supplementation. [00:50:49] ERIN: Yep. If you are deficient in vitamin D to a point where, you know, you're getting into the twenties and lower. You're not going to be able to eat food and get your values back [00:51:00] up. [00:51:00] ERIN: You're going to need to supplement unless you're living in a place where it's very sunny And it's very clear that you've been hibernating and lathering the sunscreen and then you can change that habit But the majority of people in order to get their vitamin D levels back up will need to supplement So that's really important for people to know and you always want to take vitamin D 3 plus K 2 K 2 It prevents us from absorbing too much calcium into our, um, the vascular system, which can increase your risk for cardiovascular disease. [00:51:32] ERIN: So vitamin D3 plus K2, always have that combination together and just make sure that you're advocating for it. If you have a deficiency in vitamin D, you're going to need to supplement. There's very few food sources of vitamin D. And those really aren't likely to move the needle if you have a deficiency. [00:51:51] JAMES: And on the subject of supplements, do you recommend anything else? Like, for example, a greens powder, which are all the rage at the moment. [00:51:59] ERIN: Yeah, [00:52:00] I, I don't recommend those supplements. You know, there, there's, um. There's some out there, you know, there's ones that I've taken that I feel really good on, you know, the, the athletic greens was a big, it, it blew up and I, you know, they sent me a sample and I thought, oh, you know, this is like another greens powder and I'll be honest, I felt really good. [00:52:20] ERIN: You know, I'm not going to lie to people. I felt really good when I took it. And that could be due to the fact that it's basically like a multivitamin. And it's got adaptogens like ashwagandha, which I love ashwagandha. And, you know, it was great. I was taking it for a little while. And then, you know, consumer labs came out. [00:52:38] ERIN: They, they independently tested all of these greens powders. And they found higher levels of lead in a lot of them, which something that just naturally occurs in the soil. You know, plants are growing, they absorb these heavy metals from the soil. And lead is not good for us. As someone might imagine, that getting lead in, in [00:53:00] higher doses regularly, ideally we want no lead. [00:53:03] ERIN: But we're always going to be exposed to some level of heavy metals. But when you take something and you concentrate it down, that means you're going to get a larger dose in a small serving. And so, you know, certain brands that I mentioned, like You know were above the limit that I would consider safe to consume on a regular basis for optimal health And so I wow, you know stopped using that and I you know, I I really caution My clients to be using these powders You know, even if they are passing heavy metal testing, you know, they're, they're not a replacement for food. [00:53:36] ERIN: You know, if someone's really struggling, they might offer some assistance. There are certain fruit and vegetable capsules out there that have passed heavy metal testing, you know, don't have any fillers in them. Um, the brand like Juice Plus, for example, over here in the U S you know, they, they seem to kind of pass with flying colors. [00:53:55] ERIN: So I would say. You know, I think of someone like my grandmother who, you know, [00:54:00] she maybe eats, like, two meals a day, if even that, and she doesn't touch fruits or vegetables. She might be a good candidate for someone to take these fruit and veggie capsules, just to get something in her body, but For the majority of us, you know, we don't need 17 different, you know, powders and vitamins in one sitting. [00:54:20] ERIN: First of all, it's really tough for our body to absorb that all in one. So you've got that aspect of it, where are you really getting all the nutrients out of it? Number two is the heavy metals. And number three is there's typically lots of additives to them, artificial sweeteners and flavors and, and things like that. [00:54:37] ERIN: So I, I don't, you know, I don't recommend them, but I'm sure there are times and places for, for those and in people's lives, but the majority of us should be just focusing on high quality foods from our diet. Aaron, this [00:54:50] JAMES: has been such a, an educational journey for me, uh, in addition to the listener, cause I also. [00:54:55] JAMES: take AG1 once or twice a day and have done for quite a long time. [00:55:00] Also a powder called Vibey Greens. And I had no idea about the heavy metal piece. Just no idea. And to be honest with you, I actually don't know that much about heavy metals and how they can impact on health. So could we talk about that for a little bit? [00:55:19] JAMES: Like How do we know if we're have, you know, if we've got too many heavy metals, what's the health and impacts of heavy metals? And then if there's too many and it's having an health impact, what do we do? [00:55:35] ERIN: So heavy metals. Each different type of heavy metal, from lead to arsenic to cadmium, those are two very those are three very common heavy metals that we typically see in supplements, powders, even chocolate. [00:55:49] ERIN: We see high levels of lead, unfortunately. Big chocolate fan over here, so, trust me, I'm not Nooooo! You're like, you're taking away my coffee and now my [00:56:00] chocolate. No, but what's going [00:56:01] JAMES: on here? But again, my AG1 and coffee, now my [00:56:04] ERIN: chocolate. So again, like I will use AG1 if I know I'm going out and I'm going to have a really long run. [00:56:10] ERIN: You know that that's that's the kind of thing I'm trying to really educate clients on is like I'm not taking it every day But I'm not never using it because I like the way it makes me feel I'm also consuming chocolate regularly But I'm choosing brands that are at least not the highest in lead and I'm moderating my intake But I probably eat chocolate at least three to four times a week. [00:56:31] ERIN: Like I'm not gonna lie. It's just You know, you can't avoid all of these things, but you know, there are some that are avoidable that are just, you know, we're getting too much and that could be impacting certain people. So you know, heavy metals can impact all of our organs. A lot of them can accumulate in our body and it's really hard to get rid of. [00:56:49] ERIN: Some are actually impossible to get rid of. So the kidneys can be affected. The gut can be affected. The liver, right? We can have this buildup of these heavy metals. And then on top of [00:57:00] that, if you have an unhealthy gut, then you're more likely to have these accumulate because if you have that intestinal permeability where things can move from your gut into your blood because you have leaky gut, you're in a, you're in a worse shape to be consuming these heavy metal, you know, containing products. [00:57:17] ERIN: But generally speaking, they have, they have widespread impact on our health from our brain health to our, our organ function. And over time, this can be very serious for people and it's, it's hard to say, you know, okay, look for these symptoms, it's, it's, you know, the, the, this happens slowly. So this could be you show up with dementia or Alzheimer's when you're, you know, 50 years old and you don't realize how much of something you've been consuming. [00:57:43] ERIN: But there's testing that you can do. There's hair mineral analysis testing that can look at heavy metals, which can be really helpful. Um, you know, mercury is another one that will accumulate in the body. And even just reducing your high mercury fish can really help your body, um, [00:58:00] work more efficiently. [00:58:01] ERIN: And then, you know, you can kind of go back to working in moderation versus. Eating high mercury tuna for lunch every day, for example, so this is a very big stressor for me is like we need to think about moderation. We don't need to fear monger people into being afraid of consuming chocolate or, you know, things like that. [00:58:18] ERIN: It's education, making better choices. And then if you are someone who has really poor detox, methylation issues, like MTHFR mutation, poor gut health. We might need some extra support with heavy metals, so we might use certain, like, green algaes to help just pull heavy metals out of your system. Um, we might use things like NACL cysteine, which, you know, helps upregulate glutathione levels in the body. [00:58:43] ERIN: You know, these are things that, essentially what we're doing is we're working on chelating, um, things like charcoal and, and algae, green algae vegetables. And then we're working to support the liver and, and, and all those other Um, up regulation processes that naturally happen in the body and then we [00:59:00] support the gut and we support sweating and we make sure our bowels are moving and, you know, we make sure nutrient deficiencies are addressed and that helps us just ensure that we're, you know, well oiled machines that can handle, you know, the daily toxins that we're always going to get no matter what, right? [00:59:16] ERIN: We're always going to get these things, but how can we educate ourselves, make better choices and reduce our total heavy metal load? [00:59:27] JAMES: What are some of the signs and symptoms that someone might have if they're sort of high and heavy [00:59:31] ERIN: metals? So kidney, you know, kidney issues can be a big one. Um, having, you know, kidney. [00:59:37] ERIN: So if you're doing blood testing or things like that, if you're, you know, consuming a lot of brown rice, very high in arsenic, um, that's something that over time, especially with smaller kids, you know, they're even more sensitive to these levels of arsenic, for example. Um, but, but kidney issues, liver issues, brain, um, if you're noticing, like I said, you know, early signs of Alzheimer's, dementia, [01:00:00] Parkinson's disease, uh, there's even, this is not my expertise, but, um, you know, a lot of dieticians who focus on the autism spectrum disorder, ADHD, um, a lot of discussion around how they have a harder time with detoxification and, and Some heavy metal accumulation. [01:00:17] ERIN: And so, you know, refer to them for more information on that. But I've learned from other dieticians about how that can be, um, you know, a way that these types of things can show up, um, gut issues, you know, you know, heavy metals can really disrupt the gut, the gut microbiome. So. Again, there's not really like obvious symptoms for a lot of people that you would say, Oh, that's, that's gotta be heavy models. [01:00:40] ERIN: Sometimes it's, you know, your body just kind of slowly not functioning optimally and not realizing that your total toxic burden is just too high. [01:00:50] JAMES: Gosh, it just made me wonder, I mean, imagine how many people with autoimmune disease, for example, may actually just be too high in, in these heavy metals. [01:01:00] It's again, I think it's one of these things where the traditional classical medical community probably aren't that interested. [01:01:08] ERIN: Yeah, unfortunately not. And you know, it's, it's, it's a, it's a very broken system overall. And, you know, I wish I had, I wish I had the solution. I wish that I could say that I could see things getting better in the future. But I think when you involve finances, when you put money into the, the picture, you know, it, the, yeah. [01:01:30] ERIN: The priority of healthcare, uh, preventative care really just. Yeah, [01:01:38] JAMES: I'm with you. So I'm going to bring us back now to some of the things I've wanted to discuss with you. Um, artificial sweeteners is top of the list. So as a dietitian and expert in gut health, what are your thoughts and recommendations relating to artificial sweeteners? [01:01:55] JAMES: Because I think this is one of the ones that comes up the most when you speak to people. Yeah. You [01:02:00] know? [01:02:00] ERIN: So what are your thoughts? Yeah. So I've, you know, I'

Patrick discusses questions about family members in purgatory, address the Churches powerful role in helping to end abortion, speaks about the spiritual exorcises of Saint Ignatius of Loyola and discusses the morality of vasectomies. Patrick - My brother and I were estranged and he's trying to reach out to me. I'm 72. Is this my opportunity to tell him to get right with God as these are my brothers last days? Megan - Purgatory: Can we ask for our grandparent's intercession if we don't know if they're in purgatory or not? Chris - The Church's excommunication of people who participate in an abortion. Patrick reads some emails about the Spa that is letting men enter the women's section under the name of the transgender movement. Lynn - Two Q's: Mary and Joseph traveled to Bethlehem with a maid; is that true? Second Q: Discernment of Spirits - there's a program by me about it. What is discernment of spirits? James - How do I approach my friend that needs to go to confession for having a vasectomy and if he is not able to reverse it, what is the point of encouraging him to go to confession? Chris - The Church's excommunication of people who participate in an abortion. Natalia - My husband and I did the vasectomy reversal last year, it is not a requirement, but it has been such a blessing in our marriage. Elvia - Does God tests us? My daughter is not doing well; she is 3-year-old? Is that a tests from God?

James How, also known as Mary East, and their wife Mrs. How (c. 1760s) were pillars of their eighteenth century English community, until a blackmailer attempted to expose Mr. How's "true" gender. We're celebrating Pride Month with Icons: supreme queens of queer culture. Some are household names... others are a little more behind the scenes. All of them have defied social norms and influenced generations of people to be unapologetically themselves. History classes can get a bad rap, and sometimes for good reason. When we were students, we couldn't help wondering... where were all the ladies at? Why were so many incredible stories missing from the typical curriculum? Enter, Womanica. On this Wonder Media Network podcast we explore the lives of inspiring women in history you may not know about, but definitely should. Every weekday, listeners explore the trials, tragedies, and triumphs of groundbreaking women throughout history who have dramatically shaped the world around us. In each 5 minute episode, we'll dive into the story behind one woman listeners may or may not know–but definitely should. These diverse women from across space and time are grouped into easily accessible and engaging monthly themes like Educators, Villains, Indigenous Storytellers, Activists, and many more.  Womanica is hosted by WMN co-founder and award-winning journalist Jenny Kaplan. The bite-sized episodes pack painstakingly researched content into fun, entertaining, and addictive daily adventures.  Womanica was created by Liz Kaplan and Jenny Kaplan, executive produced by Jenny Kaplan, and produced by Liz Smith, Grace Lynch, Maddy Foley, Brittany Martinez, Edie Allard, Lindsey Kratochwill, Adesuwa Agbonile, Carmen Borca-Carrillo, Taylor Williamson, Ale Tejeda, Sara Schleede, and Abbey Delk. Special thanks to Shira Atkins. Original theme music composed by Miles Moran. Follow Wonder Media Network: Website Instagram Twitter See omnystudio.com/listener for privacy information.

James has experience in all things accounting. He has 20 professional years of experience working within firms including serving as a director of Ernst & Young in Sydney, Australia. He has 5 years of senior finances roles under his belt as well.  Prior to COVID, James started his own firm, JD Scott & Co. Here, lies the interesting part of James' story. His firm focuses on hiring part-time employees, does not utilize administrative personnel, and doesn't own a printer.  Wait a minute, James… How does he do it? We'll cover more in this episode.  

Stephen and Kate are looking back at the amazing wildlife featured in the Wild Isles series. They are also looking forward to the plans being made to protect and renew it. James How from RSPB Scotland's Loch Gruinart nature reserve on Islay gives us the inside story of how the Wild Isles team filmed White Tailed Eagles hunting Barnacle Geese. Stephen chats to one of the people who has taking part in putting together the People's Plan For Nature. And there's all the usual nature news.LINKSSearch for Saving Our Wild Isles on the BBC iplayer https://www.bbc.co.uk/iplayerLearn more about the People's Plan For Nature https://peoplesplanfornature.org/Read more about the gamekeeper case we discuss here https://www.rspb.org.uk/about-the-rspb/about-us/media-centre/press-releases/gamekeeper-pleads-guilty-to-shooting-sparrowhawk-on-scottish-grouse-moor/

James Svetec is a knowledgeable AirBnB operator. He got his start in the short-term rental market by managing properties in Downtown Toronto. Riley Oickle is a specialist and mentor in multi-family residential market. Both now assist vacation investors find success across North America. They check in with the show today to talk about what they are seeing in Florida and share some hacks on the vacation rental market.   Key Discussion Points [01:06] Introduction by Eric & Steven [05:19] About our guests: Riley Oickle & James Svetec [06:25] James: How did you get to where you are today? And why are you doing what you're doing? [07:29] Riley: How did you get to where you are today? [08:10] So you're based in Canada but you work with people in the Florida market, correct? [08:49] What are you seeing with the B&B market in Orlando? [10:42] What are 2 or 3 big things to keep in mind for investors considering purchasing property for a vacation rental? [12:22] How do you deal with maintenance and property management? [14:07] What's the differential in the investment return of a typical 3 bedroom condo rental vs an air B&B rental [15:33] What is AirDNA and how does it help investors succeed in the vacation rental market? [18:35] What do you look for to decided if a property is a good deal or not? [20:43] With Florida hotels coming back strong, and AirBnB growing also, how do you see this all moving forward? [24:38] How do you help potential investors overcome objections to AirBnB? (i.e. marketability, maintenance, etc) [31:52] How can people reach you? [32:27] Closing comments by Eric & Steven     About Our Guests   Today we have with us James Svetec and Riley Oickle. They are the co-owners of BnB Inner Circle based in Canada. James is an Airbnb expert. He is an investor and a coach. He got his start in short term rental space by managing so me of the most successful short term rental properties in downtown Toronto. Riley is also a Canadian real estate investor and he specializes in multifamily residential investing.   After building a successful maintenance company, Riley transformed into real estate investing and started buying income properties around the southwestern area of Ontario. Today, they both have a coaching company where they help people be successful in Airbnb and short term rentals.   GUEST CONTACT INFOWebsite: bnbinnercircle.com  

Anna Hazelnutt is a professional climber who specializes in difficult single-pitch trad and slab climbing. But don't let her specialization fool you—she's an all-around badass! We talked about two of her biggest climbing achievements to date, leaning into her superpowers, top training exercises for slabs, dealing with negative comments online, embracing empathy, comedy as a mechanism for change, and much more!Check out Chalk Cartel!chalkcartel.comUse code "NUGGET" at checkout for 20% off your next order!Check out Crimpd!crimpd.comOr download the Crimpd app! (Available for iOS and Android)Check out PhysiVantage!physivantage.com (link includes 15% off coupon)Use code "NUGGET15" at checkout for 15% off your next order!Check out Athletic Greens!athleticgreens.com/NUGGETUse this link to get a free year's supply of vitamin D + 5 travel packs!Check out Petzl!petzl.comOr shop for Petzl quickdraws at your local climbing shop! We are supported by these amazing BIG GIVERS:Leo Franchi, Michael Roy, David Lahaie, Robert Freehill, Jeremiah Johnson, Scott Donahue, Eli Conlee, Skyler Maxwell, Craig Lee, Mark and Julie Calhoun, and Yinan Liu Become a Patron:patreon.com/thenuggetclimbingShow Notes:  thenuggetclimbing.com/episodes/anna-hazelnuttNuggets:0:08:20 – Anna's childhood room0:10:00 – Plans for Austria0:11:21 – What we would talk about if we were doing a 6-hour podcast0:12:50 – Switching places, and the names of our Subarus0:14:35 – What is Anna's last name? (Hazelnutt? Hazlett?)0:17:39 – Lynn Hill gave a shoutout to Anna on The Nugget0:19:41 – How Anna got started in climbing, and how she found her slab/trad niche0:24:40 – Anna's climbing identity, not letting herself grow comfortable, and her competitive side0:28:57 – Balancing intensity and comedy0:30:10 – What Anna does to relax (reading books, writing poetry, art), and having trouble sitting still0:33:30 – Getting an overuse injury from too much slab climbing, and sending ‘Once Upon a Time' E9 6c in the UK0:35:53 – Anna's “belaytioship” with Tom Randall0:39:29 – Going back for ‘Walk of Life' E90:41:33 – More context about Once Upon a Time and Walk of Life, using skyhooks as trad climbing gear, and taking an hour to lead a 50-meter slab0:45:38 – Anna's approach to projecting, and breaking down the climb into chapters0:50:14 – The chapter names of ‘Walk of Life' E90:55:32 – Teasing more about toe training, and Anna's thoughts on hangboard tests1:01:01 – Some context about the 9c test1:02:53 – Toe training!1:07:11 – How Anna inspired Tom to work on flexibility1:09:15 – Leaning into our superpowers1:14:53 – Anna's dream board, and seeking out hard climbs that fit her style1:19:30 – How and when Anna did her toe training, and nighttime training at Tom's house1:24:09 – How hard are the hardest slabs in the world, and what will it take for Anna to climb them1:28:45 – Why vertical bouldering is so different from steep bouldering when it comes to pushing your limits1:31:23 – Anna's thoughts on slab grades, and how they are often unfairly sandbagged1:38:04 – Patron question from Jonathan: Does Anna have any training tips for slab climbing? (Anna shares her top slab training exercises: toe training, flexibility, balance, and more)1:41:20 – Pull-ups on micro edges, and the smallest holds Anna can do pull-ups on1:43:19 – Shoulder exercises for slab1:44:12 – Do coordination gym slabs help with outdoor slabs?1:46:59 – Shoes for hard slabs like ‘Meltdown' 9a (5.14d)1:52:54 – Question from Ethan Pringle: What are some synonyms for success in rock climbing that aren't violent or war-like?1:58:52 – Another question from Ethan: Where does Anna's work ethic come from?2:02:55 – Anna's sensitivity2:04:14 – Dealing with negative comments and hate from dudes on the internet2:09:31 – An example of a disgusting comment that Anna received from someone on her YouTube page2:16:14 – Anna's story about a recent comment she and her sister got at the gym2:21:18 – Patron question from James: How can we make women feel more comfortable and included at the crag and at the gym?2:23:31 – Anna's thoughts on intention, awareness, curiosity, and acting with empathy and compassion2:28:27 – What makes Anna feel safe vs unsafe in a climbing gym setting2:31:32 – How the burden often falls on the people who are inflicted, and don't assume2:35:45 – Derek Sivers, and why we should just treat everyone the same while respecting their lived experience2:39:17 – Some more thoughts about progressivism, and being willing to own your mistakes2:41:34 – Comedy as a mechanism for change, and studying biochemical neuroscience and English2:42:32 – The change that Anna is trying to make through her videos2:47:07 – Giving others permission2:49:28 – What Anna feels excited about right now in her climbing2:51:01 – What Anna feels excited about right now with her YouTube channel2:52:59 – Anna's sources of income2:54:54 – Being a hand model for a Sofie Tucker music video2:56:41 – The difference between YouTube and podcasts3:00:35 – Final question from Ethan: Does Anna have specific goals that are lifetime achievement goals?3:06:43 – Empathy3:09:20 – Wrap up

Patrick Covers Catholic Teaching on properly conducting the marital act for couples, the importance of Marriage in the Catholic Church, and encourages us to pray for souls who have passed away through suicide. Matthew (Continued) - Is it a mortal sin to not 'make the ball into the basket' so to speak when it comes to marital intimacy? Evette - My daughter in college was given an ultimatum by her boyfriend to either date him or not be catholic - she took your advice and gave him the boot and is doing great. Thanks for all the advice!! James - How to explain to Catholic who get married outside the Church that they need to have that blessed? What can I use from the bible or catechism? Nancy - Is it wrong to pray for someone who has dies by suicide? Jince - What is the difference between last rites and apostolic pardon? Patrick reads email from Patricia Patrick reads article - Is God punishing the United States of America?

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

This is part of the James - How my brother lived series

How do you measure spiritual maturity? The book of James will help us find out what maturity is NOT and teach us how to handle many unavoidable problems in life. Come this week as we begin a new series: "James: How to handle problems."

Today I am lucky to have James and Chance on the show. MEET JAMES ► A ‘corporate refugee' - formerly a senior international executive at Diageo, Bass and Omnicom – but lost (almost) everything due to a combination of bad luck, bad people and undiagnosed bipolar disorder. MEET Chance ►The Guy That Turned His Life Around, Employed And Runs His Own Business After losing his sister to Cancer, he had a mental breakdown which led to heavy use of drugs and alcohol. His life became reckless. And before he knew it, his life had spiraled out of control and he woke up one day, sat in a prison cell, alone, and with a prison term ahead of him. Today we hear their story and why their mission is to make ALL employment inclusive employment. Why? Because everyone deserves the right to employment, and they were denied that right! Today we discuss: * The extraordinary challenging backgrounds and experiences of Chance and James * How they use their lived experiences to help and support others This episode is supercharged by Dynamis Group https://dynamisgroup.com/ You can buy Amanda and Theo's new book 'Neurodiversity At Work here: https://www.amazon.co.uk/Neurodiversity-Work-Performance-Productivity-Neurodiverse/dp/1398600245 Love the intro music... it's from a past guest High Contrast: Music is Everything #NeurodiversityAtWork #Neurodiversity #ADHD

James Oliver Jr. is the Founder and CEO of The ParentPreneur Foundation, which empowers Black ParentPreneurs so they can leave a legacy for their beautiful Black children. Chad talks with James about inspiring, encouraging, and supporting ParentPreneurs to lobby to try to close wealth inequality gaps, shoot their shot and send cold emails, and engage in a community that supports one another. Parents Making Profits (https://www.parentsmakingprofits.com/) The ParentPreneur Foundation (https://www.parentpreneurfoundation.org/) Follow The ParentPreneur Foundation on Twitter (https://twitter.com/ParentPreneurF), LinkedIn (https://www.linkedin.com/company/parentpreneur-foundation/), or Instagram (https://www.instagram.com/parentpreneurfoundation/). Follow James on Twitter (https://twitter.com/jamesoliverjr) or LinkedIn (https://www.linkedin.com/in/james-oliver-jr/). Follow thoughtbot on Twitter (https://twitter.com/thoughtbot) or LinkedIn (https://www.linkedin.com/company/150727/). Become a Sponsor (https://thoughtbot.com/sponsorship) of Giant Robots! Transcript: CHAD: This is the Giant Robots Smashing Into Other Giant Robots Podcast, where we explore the design, development, and business of great products. I'm your host, Chad Pytel. And with me today is James Oliver Jr., Founder, and CEO of the ParentPreneur Foundation, which empowers Black ParentPreneurs so they can leave a legacy for their beautiful Black children. James, thanks for joining me. JAMES: I'm super excited to be here. Thanks so much for having me. CHAD: So I just said, in a nutshell, the tagline for ParentPreneur Foundation. I know it's a community that brings people together, Black ParentPreneurs together. How did you get started and see the need for this, and how did you actually then make it happen? JAMES: Oh boy, that's a great question with a semi-long answer, so just hang in with me, but I think it's a really compelling story. So back in 2013, (I'm from Brooklyn, New York) at the time, I was living in Northeast Wisconsin. It started in 2011. I was trying to build a startup called WeMontage, which was the world's only website to let you turn your digital images into removable photo wallpaper. CHAD: If you haven't seen it, by the way, you should look at it. That description that you gave, even though it describes it perfectly, I didn't realize until I went to the website and looked at the pictures exactly what it is and how remarkable of a product it is. JAMES: Well, I'm delighted that you say that. Thank you so much. And that's part of the reason why [laughter] it failed. I mean, it's still around. And I know we have a bunch of designers in the community. So look, the website still works. The underlying collage editing software is still brilliant, but the UI UX needs a lot of love. It's a bit of a zombie with about $10,000-$15,000 of technical debt floating around over there. [laughs] But the product still works. And we still print, ship them sometimes. And we have tons of repeat customers. It's just one of those things. You build a great product, and they will always come. But the product is still brilliant still today. So back then, I was a non-technical founder. I was out of money. I cleaned out my savings and living in the middle of nowhere. There wasn't exactly a bastion of technology startups or diversity, even for that matter. And I was fortunate to get into Gener8tor's...I think we were the second cohort. Back then, it was super early. We went to Madison. And right now, Gener8tor is killing it. But I was out of money. I was thankful to get into their Madison cohort, which was a two-hour drive away. My ex-wife now was pregnant with our twins. The kids were supposed to be born end of March. Gener8tor ended early April. So I was like, okay, this timing works out brilliantly. But a day or two before the program started, I had to deliver, and we had to deliver the twins prematurely. Otherwise, my son would have died. CHAD: Wow. JAMES: His blood just started to circulate backwards. It was crazy. So we had to take them out. They weighed two pounds apiece. Every time I tell this story, it gives me agita, man. The accelerator was a two-hour drive each way back and forth to the NICU, waking up at 2:00 a.m. every morning because I couldn't sleep. I cried every day. I had a really talented developer on my team, but he had his personal demons. So he was really unreliable. But he was a brilliant guy. He was so smart, really talented. But anyway, I got through the accelerator. Right before I was going on stage for demo day, I got a call from this angel that we pitched. We were raising $250,000 at the time, which really, in retrospect, was not nearly enough money. But I got a call. He said, "Hey, we're going to fill your round." I don't know. What does that mean? I don't take anything for granted. [laughs] What do you mean? "We're going to give you $250,000." And then I just dropped to my knees. I thanked God. And I cried because I had sacrificed so much to get to that point. Thankfully, my daughter came home after six weeks, and my son came home after ten weeks. The kids are doing fine. They drive me crazy, but they're beautiful. CHAD: [laughs] How old are they now? JAMES: They just turned 9 in January. So after I launched WeMontage, I hired just a really remarkable technical co-founder and just a great guy. We still have a wonderful relationship. We got in there, and when I started out, I was like, well, I'm going to start a blog. I started a blog, and I was like, one of these days, I'm going to use the content from this blog to write a book. CHAD: Before you move on, so in those early days, you had just gotten into the accelerator. You had this thing you needed to deal with with your family and delivering the twins. And did you ever consider dropping out of the accelerator at that point? JAMES: I wasn't going to go, but I knew with that decision, WeMontage never would have come to light because I just didn't have the resources to make it happen. But as a family, we decided that I need to go do that and crush that, and so I made that choice. We raised money. In retrospect, we raised just enough money to fail because, look, the software was cute. We were running around pitching angels. It was cute to show look at what we can do, look at what we could do. When we turned the thing on, it was so unsustainable. It was a black box. And I was on the phone literally with customers holding their hand to get them to place an order, and that was clearly unsustainable. So we made the decision that we need to fix this thing. We need to pull it apart, make it modular, stabilize the code, build on it. And by the time we got done with that, we only had a couple of months' cash left. And I remember...man, if anybody has never told you this to your face, I promise you it's a hard thing to hear. They were like, "We're not going to throw good money after bad." I'm like, well, damn. Like, thanks. We have our first Today Show appearance coming up here next month. So thank you for that. Thanks. [laughs] Man. CHAD: So you actually did go on the Today Show. JAMES: Yeah, we got featured three times on the Today Show. I mean, on my own without a publicist, I got Today Show three times, Good Morning America, Money Magazine, DIY, Martha Stewart, on and on. CHAD: I'm curious, after making an appearance like that, do your sales go up? JAMES: They do. They did with the Today Show. So it was funny, like that first appearance, they didn't even put the graphic on the bottom with the name of the business. When Mario mentioned it, he said, "wemontage.com." Man, our freaking website went crazy. It crashed the website. [laughs] But we were kind of already prepared for it to crash. We had a little splash screen up and information. We got it back up in; I don't know, it was less than an hour. But I spent literally all day getting back to those people. We gave them a coupon code. And we did about $15,000 that month from that one segment, which was great. That was our best month to date. I mean, all total, I've probably done $75,000 to $80,000 in sales from the three times we appeared on The Today Show. CHAD: That's great. We've had clients, or I've known people who have done appearances like that, and it seems a little bit hit or miss. Sometimes it won't even result in a blip, and other times it's huge. And I'm not sure what the trend is when it matters and when it doesn't. JAMES: This is the point: we all love these vanity things. We want to get exposure, exposure. So I have a really great relationship with Seth Godin, and he's a big supporter of the work I'm doing at ParentPreneur Foundation. He gives us scholarships to his marketing seminar, and he comes to visit with us sometime. The last time he talked about...he said, "Stop trying to do things to get attention. Spend your time getting your customers to tell their friends about your business." And that's a whole fact. We love the vanity, but at the end of the day, PR does not necessarily equal cash flow. I had some hits. I got on Good Morning America, and that was not nearly as good as the Today Show. But that was by virtue of the last-minute change that they made in terms of how they were producing the segment. When they introduced my product, they had the camera on somebody else's product. They had people calling me about somebody else's stuff which is like, are you serious? But what are you going to do? You can't control that. So yeah, those things are good. I will say that having that stuff on the landing page is good for credibility. People feel more comfortable, especially if they can see it. So that stuff matters to a point, but I wouldn't be spending a lot of time. I certainly would not be wasting a penny on a PR professional if I was a founder. I just wouldn't do it. All that stuff I rattled off I did on my own. CHAD: Awesome. So you started to build a blog. [laughs] JAMES: Yes. So the intention of that was to use that content to write a book to inspire ParentPreneurs around the world because it's hard being a parent and entrepreneur, especially if you're like early-stage scraping to get some revenue. You can't even talk about product-market fit yet. Can we make some money? [laughs] Can we make a buck? CHAD: So I've done a few things in my life. Writing books is one of them, and I can't say that it's easy. I don't know how you found it. I was doing it with a traditional publisher the first few times around, and it was pretty difficult. How did you find it? JAMES: So I self-published that book. And because of the way I approached it, I already had a bunch of content on my blog. It's funny; I was actually out of town. I was in Midland, Texas, because I got flown out there. I was on CNBC's version of Shark Tank, West Texas Investors Club, horrible experience, by the way. I swear if I ever go on another one of those shows, I'm going to bring the drama. CHAD: [laughs] JAMES: Piece of advice, for any of you guys listening, if you go on Shark Tank or any of those shows, do not leave it up to the creative people to tell a story about you. This is just me; I'm a little crazy, crazy like a fox. But you give them the story. So this is me and you talking, just the two of us. [laughs] If I go on Shark Tank or something like that, I'm not taking those people's money. They're going to be like, "Oh, well, you're just here clearly for the exposure." I'm like, well, so are you. You're doing it too. Why should I give you 20% equity in my company for $200,000 or whatever it is? How much time are you actually going to spend helping me build my company? And by the way, the people who came before you from an investment standpoint already took a ton of risk off the table. So why should you get that money? And how many companies are in your portfolio? 50? So, okay, so are you really going to be helping me or nah? Nah? Right. No, I'm good. CHAD: That'll definitely air. The producers will love that drama. JAMES: That will air, right? See what I'm saying? And the people watching will be like, "Hell yeah, you tell them. Let me Google that real quick." [laughter] CHAD: That's funny. JAMES: But that's just me. But I have no intention of going back on any of those shows again because, at the end of the day, it was a bad experience for me. I only got about $6,000 in sales, but that's because nobody was watching that show. It was canceled. But at the end of the day, if you have a customer acquisition problem which is what we had at WeMontage, those things don't solve your problems. They just don't. Not necessarily. They could; you could get lucky. But it's probably not going to solve your problem. CHAD: So I'm curious. So you wrote the book, and you focused on the concept of ParentPreneurs, Black ParentPreneurs specifically. JAMES: No, actually, so the book was just for everybody who's a ParentPreneur. So the book's called The More You Hustle, The Luckier You Get: You CAN Be a Successful ParentPreneur. So Mario Armstrong, who's my guy from the Today Show, wrote the foreword to my book. We're really good friends. And it's on Amazon. Some people have regarded it as the realest book of entrepreneurship they've ever read. It's unlike anything you ever read. It's the story of my journey, some of those things I just told you, and the up and down the back and forth. It will make you laugh, make you cry, make you wonder. You put it down, come back to it. There are some hard questions that I ask myself, and people read the book. It's a superfast read too. CHAD: Awesome. At what point did you decide to focus on empowering Black ParentPreneurs? JAMES: So that's a great question. So after I wrote the book, I had this idea. I said one day I'm going to sell WeMontage. And maybe it will happen. I don't know; if God can intervene, something could happen. Who knows? [laughter] It's just not likely at this point, and that's okay. But I was like, I'm going to sell this business. I'm going to take a million dollars of my own money and start a foundation for parents who are entrepreneurs because it's really freaking hard. It's so hard. Unless you've been there, you have no idea how hard that is. It's really hard. So then, in early 2020, the whole world falls apart with George Floyd, Ahmaud Arbery, Breonna Taylor. I had my own Karen experience here in my backyard. I live in a really nice neighborhood in the suburbs of Atlanta. And I had to call the police on her. After the second experience, I filed a trespass warrant. Then I started looking at all the Federal Reserve wealth inequality data. And I was like, I'm starting this foundation for Black ParentPreneurs because we need the help the most. We have got to try to close this wealth inequality gap. It's a big problem. I'm doing that. So now to answer your question, prior to that decision, so when I was going to Gener8tor, I met David Cohen and Brad Feld. They just popped up on a Google Meet to meet us. And these guys are co-founders of Techstars, which is one of the preeminent global startup accelerators. And I just stayed in touch with them through their blogs. I didn't want anything from them. I remember I got an email from Brad a couple years back. And he's a voracious reader. He's a prolific writer. He sent me an email out of the blue. He said, "I just read your book. I effing loved it." [chuckles] He said, "I got to feature it on my blog." I was like, wow, okay, dope. So he did that. And we sold some books, which was great. But so I reached out to Brad and David. I was like, "Hey, guys, I'm thinking about starting this foundation for ParentPreneurs in general." And they were like, "Yeah, I'm game. We can go back and forth with you about it," and which is amazing at that level those guys would be willing to do that. I appreciated that. And they were both like, "Eh, foundations are hard. It's a constant fundraising grind, blah, blah, blah." And, look, they're not wrong. [laughs] They're not wrong. But here's the thing, though. For me, telling me something is hard doesn't land with me because I've had to scrap and scrape for every single blade of grass on the field of life. And quite frankly, it's hard being Black sometimes. If I had $1 every time somebody told me that WeMontage would have been successful if I had a white face out there instead of me type thing, it is very frustrating. So then I got an email from Brad Feld out the blue after George Floyd, which was just a subject that said, "Hey, you're game for a 30-minute Zoom?" There was nothing in the body of the email. And I'm just like, yeah, I could as well want to talk to Brad. He's top of the food chain. He's not just a VC and co-founder of Techstars with a portfolio valuation north of $200 billion. He's also a Limited Partner. LPs are the people who write the checks to the VCs who write the checks to people like me and you guys listening who are entrepreneurs. So I'm like, hell yeah, I want to talk to you for 30 minutes, Brad Feld. Who doesn't? I just didn't know what it was about. So he said, "I just want to know what two things you're working on addressing racial injustice, inequality I can put my time on or attention on." I'm like, Oh, hell yeah. Chad, I'm like, he has no idea what I just decided. So we get on to Zoom. And I say, "You know, Brad, you remember that foundation thing I was telling you about?" He was like, "Yeah." I said, "Well, now that's just what Black ParentPreneurs is." He goes, "I'm so glad you did that." And this is the part that knocks me out of my chair every time I say it. He goes, "What would a 12-month operating plan look like? I can throw it up in a Google Doc, and I'll co-create it with you." [laughs] CHAD: That's great. I mean, it is unfortunate that George Floyd being murdered and these other things have instigated people to want to make change and to get involved in ways that they haven't been able to before. That's super unfortunate, but something's got to wake people up. JAMES: Well, that will come up because he was like, "Look, I'm this rich, middle-aged white dude. I've been doing things to support Black entrepreneurs in the past," but he's like, "I got to do more. So I'm reaching out to my friends, and I consider you a friend." I was like, wow, like, I knew you liked me a little bit, but I didn't know you liked me like that. CHAD: [laughs] JAMES: But he is a friend. I have his phone number. I can call him. He's a friend. Him and David these guys are friends. So I got the 12-month operating plan right back to him. He said, "This is great. What would a six-month plan look like?" I got to write back. And he's like, "Assume three things, one of which is a $50 000 seed grant from my foundation to start the ParentPreneur Foundation." So Brad has given now, I don't know, north of $125,000. He got us into the Techstars Foundation, which has been phenomenal. My relationship with David has blossomed. I went on the Techstars Give First Podcast with David, and David's a friend as well. I just love those guys and how they move, and they've been super helpful. And so our foundation, at the heart of what we do, you mentioned this at the top, is we have a community of now almost 1,800 Black ParentPreneurs hosted on Mighty Networks, which is phenomenal because it's not on Facebook. That's the thing I love the most about it. [laughter] CHAD: I actually have some questions about Mighty Networks on my list. So we don't need to take a tangent in there right now. We can come back to it. I want to ask you about Mighty Networks. JAMES: Love it. Love it. Love Gina Bianchini. She's the CEO. I actually had her on my LinkedIn live show a couple of months ago. CHAD: Well, let's do it now then, actually. So as someone who has built software before to put together a company, did you ever consider that for this? And why not? And why use Mighty Networks? JAMES: To build a community platform? CHAD: [laughs] It's a very loaded question, James. JAMES: Yeah, why would I do that? Listen, by the time I got done with my prototype with that; these guys would be like two versions past where they are today, which would be infinitely better than my little stinky MVP, right? CHAD: Yeah. JAMES: And these people live, eat, and breathe community. Is Mighty Networks perfect? No, of course not. But they're constantly making improvements. I think I told you at the top I'm actually about to launch a new podcast. I just signed a national podcast distribution deal. So we're launching a podcast on the HubSpot Podcast Network. You guys have heard of HubSpot, right? CHAD: I have, yes. JAMES: So it's for ParentPreneurs in general, kind of like my book, to empower ParentPreneurs to be the best parent entrepreneur they can possibly be because being a ParentPreneur is hard. And we came upon this opportunity. I saw an article; maybe LinkedIn, I don't remember, talking about HubSpot launched a new podcast network last year. And I told you I got all these PR opportunities. And I got that because I'm not shy about shooting my shot. A lot of people are too scared to shoot their shot, or they don't know what to do, how to do it. But cold emails I'm really good at sending cold emails. So I sent a cold email to the CMO of HubSpot. He was mentioned in the article. I went on LinkedIn. I scraped his email address using my favorite email scraping tool, GetEmail.io. It works on LinkedIn. You get their email address. I sent him an awesome email. Of course, he didn't follow up right away; well, not, of course, sometimes they do. He didn't follow up right away. I sent a follow-up email. And when I send follow-up emails, I like to give some kind of update. So in my follow-up email, I wasn't just like, "Hey, did you get my email? Please respond." It wasn't that. It was like some other update. I can't remember what it was, but it was an update following up about my email. He got back, copied somebody on the team. They got back, copied somebody else. They were like, "Do you have a clip or an excerpt of an interview?" And it just so happened we did because we knew we needed to get ready. So we did an interview with Neil Sales-Griffin, who's the Techstar Chicago Managing Director, and so we sent them an excerpt. They were like, "This is great. Do you have a whole episode?" So we edited that thing down right here that day. It was a Friday, sent it to them. They were like, "Thanks for sending. We'll get back to you by Monday with the decision because, by the way, we have this new program, this emerging podcast voices program. There'll be six to eight podcasts in this program. And we'll listen to this and consider it." So they got back to us Sunday night at 11:00 o'clock. "This is amazing. You guys are pros." I'm like, that's not me. That's really Mario. I have no idea what I'm doing at all. CHAD: [laughs] JAMES: But thanks, Mario. "And you guys are stars. You can't teach stars." But I'm like, hey, all right. I've never done a podcast. But hey, glad somebody other than my mama likes me. This is awesome. And they were like, "We want to invite you to be one of the companies in this new cohort with a new podcast," and just a swoop in at the last minute like that all because I shot my shot. So if anybody's out there listening, don't be afraid to shoot your shot, man. It's a mindset. You got to know what to do, how to move. But you've got to first have the mindset like, yo, I am going to shoot my shot. CHAD: I think as long as you...and you already said this, but you're making it real. Like, when you're following up, you're not just saying, "Hey, did you get my email?" You're finding ways to make it real and authentic. You got to show that you're real and not some bot. JAMES: Yeah. So I will say in terms of the cold emails, I send them all the time. Cold emails is how I ended up collaborating with Nasdaq Entrepreneurial Center. We're big partners with them. We're part of this grant project with them with this major Wall Street Bank Foundation they're about to be announcing this year any day now. We got a grant tackling the problem of Black or Brown founders, underestimated founders not getting access to early-stage venture and angel funding. So we're part of that with my foundation all because I sent a cold email to some guy at Nasdaq. I don't even remember who it was, Western president. Sent him an email, he copied the executive director from Nasdaq Entrepreneurial Center. The rest is history. My last round of grants, they co-sponsored the last round of grants. They put in some money. Great relationship with Nasdaq. They got 30 of my people from our community featured in the Nasdaq Tower in Times Square, let that sink in, all because of a cold email. So if you're going to send a cold email, just a couple of tips off the top of my head. You need to have a compelling subject line. Keep the emojis to a minimum. [laughter] If you can use the person's name in the subject, I think that increases your open rate by like 20%. The email's got to be right to the point. Hey, my name is James Oliver, CEO of ParentPreneur Foundation. Put a link to the ParentPreneur Foundation in that instance. We got funded by Brad Feld, co-founder of Techstars, and put a link to Brad Feld's article. Establish credibility right away and get to the freaking point. Like, what do you want? Make an ask. What do you want? Get right to it. That's it. CHAD: And then when you don't hear back, and you should follow up? JAMES: Oh yeah. You absolutely got to follow up. I'll follow up a couple of times. I know Mario is like, "I just keep following up till they tell me to stop." [laughter] He's gangsta like that. I'll follow up three or four times. But after that, I know when people are pestering me. At that point, you're pestering. I'm not interested. If I was interested, I would have responded, so knock it off. But I also respect the hustle when people are coming to me with something that's legit. And I will respond because I am them sometimes too. I'm like, "Hey, thanks for reaching out. I really appreciate it. I'm just not interested," or "I'm not interested now. Ping me back in six months." CHAD: As someone who gets cold emails, I do the same thing when it's a legitimate...and you can tell. You can tell the ones where they're just blanket sending the same thing to a bunch of people. And you can tell when it's someone legitimately sending you a cold email. JAMES: Because if you mention something about what they do specifically and how that's relevant to your email or your ask, that increases your chances of getting a response. Hell, I sent a cold email to Mark Cuban, bro. CHAD: Awesome. JAMES: He said yes. I interviewed him on my blog. I don't write on my blog anymore. But he got right back to me, and I interviewed him on my blog. He was great. CHAD: So I don't know if everyone does this. Like you said, even if it's not a fit for me or I can't do it right now or whatever, if it's a legitimate thing, I will almost always actually respond to it eventually. Mid-roll Ad I wanted to tell you all about something I've been working on quietly for the past year or so, and that's AgencyU. AgencyU is a membership-based program where I work one-on-one with a small group of agency founders and leaders toward their business goals. We do one-on-one coaching sessions and also monthly group meetings. We start with goal setting, advice, and problem-solving based on my experiences over the last 18 years of running thoughtbot. As we progress as a group, we all get to know each other more. And many of the AgencyU members are now working on client projects together and even referring work to each other. Whether you're struggling to grow an agency, taking it to the next level and having growing pains, or a solo founder who just needs someone to talk to, in my 18 years of leading and growing thoughtbot, I've seen and learned from a lot of different situations, and I'd be happy to work with you. Learn more and sign up today at thoughtbot.com/agencyu. That's A-G-E-N-C-Y, the letter U. JAMES: So, if I may, I just want to talk a little bit about the impact in the ParentPreneur Foundation. CHAD: Yes. JAMES: Because we have 1,800 people now. This current round of grants makes $95,000 in the last 19 months since we launched. We do micro-grants of $1,000 apiece. I think I just tweeted this morning that it just seems like people look down their nose at a $1,000 grant. And I'm like; clearly, these people are not or never have been a super hustling, early-stage entrepreneur and definitely not one of those with kids. So $95,000, again, keep in mind, I don't know anything about a foundation, a non-profit. I've never done it before. I've never started a community, but I don't care; it doesn't matter. [laughs] You know what I'm saying? In this instance, there's a tremendous founder-market fit because I am them. And that shines through brilliantly in all the things that we do. And the thing that I'm most thankful for that we've done in the community is we've paid for 320 mental therapy sessions for our community members. And that's important because historically, mental health is stigmatized in the Black community. And there's this belief of epigenetics, which is basically you can pass trauma down through your DNA to your descendants. And if that's true, Black folks got a lot of trauma, and we need to get it worked out. And when we do it in our community, people jump right on it. So I'm so proud of those guys that they take it very seriously. And that's really legacy, and that's impact because we're creating a legacy of mental wealth for the people in our community that influences how they show up for themselves, for their businesses, for their partners and spouse, for their children, all of which impacts how their children show up in the world. So it matters a lot. CHAD: I think the therapy sessions are a great example of when you have an authentic, unique community, something is going to come out of that which is so specific to that community. The impact of that is huge but also, where did that idea come from? Was that you? You said, "Hey, this is a need we have to do this"? JAMES: Yes. CHAD: Did it come from the community itself? JAMES: No. And see, this is why I'm talking about the founder-market fit. I don't know all the things that my people need, which is why a lot of times I ask them, "What do you want? What do you need?" But a lot of things I already know they need before they even need them because I've been where a lot of those guys are, and some of them ain't been there yet. I already know what you're going to be looking at in six months, bro. You need to pay attention a little bit. So right from the beginning, we use betterhelp.com. We created a BetterHelp account. And it's so easy. We use Typeform. Typeform is another partner of ours. They've given us lots of free codes, and VideoAsk is a new Typeform company. We use that for our application process, which is just brilliant. I keep getting compliments about how amazingly seamless and elegant our application process is for the grants using VideoAsk. But we use Typeform and first come, first serve. It fills up, and then I just get the email addresses, and I just drop them right into Betterhelp's account. And they reach out to people in the community, and they get them set up. It's so easy. CHAD: That's great. What happens in the community? Is part of the value of the community just support from each other? JAMES: Well, that's a big part of it. So that's a great question. So one of the things in the Seth Godin marketing seminar is he talks about tension and why it's important in marketing and how it drives change and drives people to action. And the assignment around tension I couldn't think of like what the tension was for the ParentPreneur Foundation. But when he came to meet with us, and we were talking about it, he said, "If I'm on an airplane and we're sky jumping, and they're like, 'Well let's jump out,' and it's a perfectly good airplane," the tension for him is what if the parachute doesn't open? And the answer is like, "Well, don't worry. We have a backup chute for you." Okay, banzai, let's go. [laughs] But for the ParentPreneur Foundation, the tension is what if we fail on this rocky road? What if we fail in our journey to leave a legacy for our beautiful, Black children? He said, "It doesn't matter because we have each other's backs on this rocky road." So I'm like, yes, that's exactly right. We have each other's backs. And I'm telling you, man, I see it. A lot of stuff is taking place; I have no idea. But I hear about it from time to time, just organically. People are collaborating. It's just amazing, man. It's just great. So yeah, I know it's lonely being an entrepreneur, a lot of different challenges, unique challenges of being a Black entrepreneur. And it's just great to have a safe space for that. We do a lot of different things. We paid for virtual assistants. We paid for when kids were being virtual schooled. We paid for some virtual tutors for some of the children. Social capital is another thing that I talk about a lot. We pay for people to improve their LinkedIn profiles and understand how to move properly on LinkedIn and build and increase their social capital, which to me is as problematic as a dearth of financial capital because, without social capital, you can't even imagine what's possible. And it was Albert Einstein who said that imagination is more important than knowledge. And it's just so true. So we're doing all the things. CHAD: So, do you have a sense of what the split is between moms and dads in the community? JAMES: Yeah, just off the top of my head, I think it's around 75-25 moms and dads, and that's interesting. Women like to build community, men we don't. We're like the king of the jungle. We're all okay by ourselves. [laughs] We don't want to build community. But, man, women love to build community, and they hold down our community in a big way, and I'm just so thankful for them. CHAD: So you started in 2020. One thing that I've seen, and I think it makes your timing good, is that a lot of people either had change forced on them because of the pandemic, and they lost their jobs. Or they felt like they needed to make a change. And a lot of people faced with that decided to do something on their own and make something happen. So there has been a surge in entrepreneurship from my... And another thing there's been a surge in is people going to coding bootcamps feeling like yeah, I lost my job, or I no longer want to do this job that I can no longer do remotely. I want to make a change in my life and learn to code. Does that resonate with you as something you've seen in terms of people who have never been entrepreneurs before who had it forced on them or making a conscious choice to do it, joining the community? JAMES: Yeah, absolutely. To a certain extent, at the beginning of COVID, when everybody was freaking out, because I understand that within every crisis exists an opportunity, I was looking for that opportunity. I was like, all right, where's the opportunity here? I was asking the questions. And then, I had a chance coffee meeting with some acquaintances and told them my intention of starting the foundation one of these days. And they were like, well, what are you waiting for? Why don't you do it now? And I thought that was like the answer to my question. And I was like, oh damn, like, yeah, what am I waiting for? Let's do it now. So yeah, a lot of people are moving towards entrepreneurship. I think a quick Google search will bear that out. I don't know to what extent, but I know it's a lot. The application for new businesses are increasing over the last few years. So yeah, I get it. People kind of hate their corporate jobs. They hate going to the office. I get it. My goal in life is to never have to wear a suit and tie again. [laughs] CHAD: Even when you go on Good Morning America. JAMES: I might wear a suit, but I'm not wearing a tie. Knock it off. [laughs] CHAD: Well, I'm sure everything you mentioned that you've been fundraising all this stuff costs money. Does the majority of your funding come from bigger donors? I know that you have a link to donate, and I encourage people to do that. But how much time do you have to spend fundraising? What is the donor mix? And how can people help? JAMES: It's just weird. We get in our own heads. I used to say, man, I kind of suck at fundraising, but I don't. We raised almost $300,000 since I started this thing with no experience. That's not somebody who sucks at fundraising, right? CHAD: Yeah. JAMES: But in my mind, we should have a million dollars in the bank so I can hire an executive director, and we can ramp up the programs that we know, or I can scale this thing up and do some other things. I have some other things I want to do. I want to do a startup studio. I'm trying to partner with Techstars right now. With Techstars, I'm already talking to the right people. I want to do a pre-accelerator program with them for Black ParentPreneurs and putting like $20,000 in people's pockets. That's going to cost money. We need a sponsor for that. But to answer your question, you can visit parentpreneurfoundation.org click donate. And $25 a month it all helps. It all adds up. We have things that we have to do to keep the platforms going and tools and resources that we use to keep it all going. The big chunks have come from people like Brad Feld and David Cohen. And Fred Wilson even donated $10,000 one-time but yeah, we need more. I'm just biding my time. And the work we're doing matters so much. It's making a big impact. We are literally helping people raise money and get their businesses off the ground. And one woman who just went through the Techstars Founder Catalyst Program with JPMorgan Chase here in Atlanta she went because I introduced them on my show. And she got in, and she just raised $250,000. And then she just told me she got a commitment for another half a million dollars. And this other woman she got a $250,000 grant from Wells Fargo because of our relationship with Nasdaq. And another guy got a term sheet for half a million dollars because of the introductions we're making. So we're literally out here building capacity for the members of our community in so many ways. I'm thankful. I'm honored. I'm humbled to be in this position to do this work. But this is purpose work for me. This is my purpose, and I'm thankful to have found it. It's like Mark Twain says, "The two most important days in your life are the day you are born and the day you figure out why." I encourage people to go figure out why. CHAD: And if you are Black ParentPreneur hearing what we're talking about and saying, "Yeah, now I know about this. This is for me." You also go to parentpreneurfoundation.org and sign up there. JAMES: Yes, sir. Click the join community button. Absolutely. CHAD: Well, James, thanks for stopping by and sharing with me and all the listeners. I really appreciate it, and I wish you and everything that you're doing all the best. JAMES: Yes. And, Chad, thanks for reaching out, man. Look at you; you're on your hustle. It wasn't you that reached out to me. There was somebody else. CHAD: It was, yeah. Another member of my team. JAMES: How'd you find me, man? CHAD: I think she's very good at LinkedIn, and you're good at LinkedIn and so -- JAMES: [laughter] Well, I got a big [inaudible 36:11] show them the receipts, man. Show them the impact because that's what you got to do. CHAD: Are there other places where if folks want to get in touch with you or follow along with you? Where are the other places they can do that? JAMES: Yeah, they can do that on IG. We're parentpreneurfoundation on IG. I'm not super active there, but we're there. You can follow me on Twitter. I talk a lot on Twitter. I don't think anybody's listening, but I talk a lot on Twitter. CHAD: [laughs] JAMES: That thing doesn't come on until you actually earn those blue checkmark thingies, I swear. Because I will say something I think is really profound, and it's crickets. And I see somebody with a blue checkmark say the exact same thing, and I'm like, okay, I see how it is, but whatevs. [laughs] So I'm on Twitter @jamesoliverjr, jamesoliver-J-R. Follow me on Twitter. That'd be awesome. Shoot me a tweet. Tell me you heard about us, heard about me on The Giant Robots Show here. I would love to connect, engage, and build and learn with your audience. So thanks. CHAD: Awesome. And for all of you listeners, you can subscribe to the show and find notes for this episode along with an entire transcript of the episode at giantrobots.fm. If you have questions or comments for me, email me at hosts@giantrobots.fm. And you can find me on Twitter @cpytel. This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore. Thanks for listening and see you next time. ANNOUNCER: This podcast was brought to you by thoughtbot. thoughtbot is your expert design and development partner. Let's make your product and team a success. Special Guest: James Oliver Jr..

Richard Brennan joins us this week to discuss how to spot potential outlier trades before they occur, the power of simple trading rules over complexity, why endogenous events move markets 90% of the time and news events are behind only 10% of large market moves, how Trend Following models safely reduce risk exposure automatically as drawdowns increase, how to approach correlated markets in your portfolio, how to achieve diversification with limited capital, the Efficient market hypothesis versus adaptive market hypothesis, and the differences between Trend Following and ‘Trend Trading'. In this episode, we discuss: Spotting patterns among previous outliers Simplicity over complexity How little the news really moves markets Professional Trend Following versus 'Trend Trading' The ability of Trend Following models to automatically reduce open risk during drawdowns 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 Richard on https://twitter.com/@RichB118 (Twitter). IT's TRUE

Rob Carver joins us today to discuss the different ways that Trend Following is perceived by investors, the optimum amount of positions to trade at once, rating the riskiness of various investment strategies, Trend Following on the VIX, suitable risk amounts per market, what to do with the free cash in your futures account, if Trend Followers pyramid positions, trading CFDs and dealing with transaction costs, and the best lookback period when measuring correlations. In this episode, we discuss: The perception of Trend Following among various types of investors How many positions to trade at once The ‘riskiness' of various investment strategies Combining Trend Following and Volatility strategies Risk-per-futures contract How much cash to keep on the sidelines and what to do with it Pyramiding positions CFD trading and navigating commissions Measuring correlations effectively 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 Rob on https://twitter.com/InvestingIdiocy (Twitter). IT's TRUE

Overcoming Nervousness [Video description begins] Topic title: Overcoming Nervousness. The host is in the host space. [Video description ends] HOST: It may start in school. You stand up to talk in front of a class. Your mouth goes dry, your heart races, your hands shake – and then maybe you talk too fast. Or maybe you hem and haw. Or maybe your mind goes blank and you say nothing at all. Nervousness about speaking in front of others doesn't automatically go away as you get older. It might even get worse because you feel the stakes are greater. But by applying some specific techniques, you can learn to overcome it. [Video description begins] Ali is sitting at her workstation. She is soliloquizing . [Video description ends] ALI: What if I look stupid? What if I forget what I want to say? What do I want to say? I don't want to blow this. Oh, man. I'm going to blow this. I'm going to look like an idiot. Maybe I'll call in sick... [Video description begins] The host is in the host space. [Video description ends] HOST: Negative self-talk is the first thing that must go. It's easy to obsess over what could go wrong. The trick is learning to obsess over what will go right. And the first way to ensure that is to prepare and really know your content cold — exactly what you want to communicate. What's your message? What's the audience's takeaway? Once you answer those questions, you can then plan how to convey them, making sure that what you present supports your essential message. Then, make a conscious decision about how you want to come across. How should you present yourself while delivering your message? [Video description begins] Back at the Ali's workstation, James is talking to Ali. Ali looks nervous. [Video description ends] JAMES: How's it going? Working on your presentation? ALI: Yeah, I'm kind of nervous. JAMES: You'll be fine. You know your stuff inside out – just let the client see that. ALI: But how exactly do I do that? I mean, I know what I want to say, but I'm not sure how I want to say it. Do I want to be serious and project authority? Do I want to be charming and witty? JAMES: Try being you, just a more confident and self-assured version of you. ALI: Heh. I don't feel like that confident or self-assured version of me right now. [Video description begins] The host is in the host space. [Video description ends] HOST: Genuine, honest communication requires a genuine, honest communicator. Different situations may call for different approaches, but any successful approach begins with being authentic and engaging. You don't need to be perfect, you just need to be you, confidently. Use your personality to your advantage, and don't try to be someone you aren't. If humor comes naturally to you, then apply it. If not, don't force it. If you're a straight shooter, then be a straight shooter. Presenting yourself to others shouldn't be an act. It should be a revelation. [Video description begins] Back at the Ali's workstation, Ali and James continue their conversation. Ali is talking to James. She speaks aloud. [Video description ends] ALI: Our market research shows that nearly 75% of the target market samples expressed a preference for... I sound like one of those disclaimers at the end of a commercial. Slow down. Sloooooooow doooooooooown. [Video description begins] The host is in the host space. [Video description ends] HOST: Another important technique is to practice proper breathing. Nervousness makes your vocal cords constrict, increases your heart rate, and interferes with your breathing. Typically, it also dries your throat and makes you talk too fast. Proper, diaphragmatic breathing counters all these effects. It sends a message to your brain, disrupting the "fight or flight" response. It forces you to relax, encourages pauses, and helps you slow down. [Video description begins] Back at the Ali's workstation, Ali and James continue their conversation. James is talking to Ali. Ali looks nervous. [Video descri

The one where we get an insight into the back-story of one of the oldest Musical Instrument brands in the UK. Rotosound was founded in the late fifties by James How, in this episode we talk to his son (and current Chairman) Jason How about the slightly unusual journey that led his dad to start making strings, and in turn to John Entwistle of the Who knocking on the factory door. It's a fascinating story, and one we bring bang up to date by discussing Covid, Brexit and how Rotosound are striving to produce as ethically and sustainably as possible. https://www.rotosound.com (Rotosound Website) https://open.spotify.com/playlist/4NQyvcBXJSyeYbl4H62fGg (Episode 41 Playlist) https://www.instagram.com/theguitarshowuk/ (9-42 Instagram) https://twitter.com/theguitarshowuk (9-42 Twitter) https://www.facebook.com/theguitarshowuk (9-42 Facebook) https://www.youtube.com/channel/UCozetpXDzhNSAELq6wnoLhQ (9-42 Youtube) https://www.theguitarshow.co.uk/ (9-42 Website) https://www.facebook.com/ashortstoriespodcast/ (ashortstories Facebook) This podcast uses the following third-party services for analysis: Chartable - https://chartable.com/privacy

Download the Sermon Outline LIVING FAITH Introduction to the epistle of James How many of you grew up in a home where one of your siblings was an overachieving, almost perfect, everybody loved, won every award, favorite brother or sister? Then you all can picture what it was like to grow up in the home…

Special guest Eric Crittenden returns to the show today to discuss the fallacies of the typical 60/40 portfolio, the Federal Reserve's recent decision to begin tightening fiscal policy, Eric's last appearance on the show which was at the March 2020 stock market bottom, different speeds of Trend Following, why stable returns doesn't always equate to low risk, the difficulty in being comfortable with doing the opposite of what we're wired to do, how managed futures can help investor's portfolios, negative interest rates and flight out of fixed income, what could Trend Following bring to the crypto space, and changing the narrative around Trend Following. In this episode, we discuss: The misconceptions around the safety & profitability of a typical 60/40 portfolio The recent Federal Reserve decision to tighten fiscal policy Eric's last appearance on the show, which was at the exact bottom of the 2020 market crash The varying speeds of Trend Following Why low-volatility returns may not mean that a strategy isn't risky Overcoming behavioural biases Managed futures as a great benefit to investor's portfolios The flight out of fixed income Why crypto investors could benefit from Trend Following Changing the narrative around Trend Following 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). IT's TRUE

Special guest Eric Crittenden returns to the show today to discuss the fallacies of the typical 60/40 portfolio, the Federal Reserve's recent decision to begin tightening fiscal policy, Eric's last appearance on the show which was at the March 2020 stock market bottom, different speeds of Trend Following, why stable returns doesn't always equate to low risk, the difficulty in being comfortable with doing the opposite of what we're wired to do, how managed futures can help investor's portfolios, negative interest rates and flight out of fixed income, what could Trend Following bring to the crypto space, and changing the narrative around Trend Following. Find out more about Eric and his firm Standpoint here. If you would like to leave us a voicemail to play on the show, you can do so here. Check out our Global Macro series here. Learn more about the Trend Barometer here. IT's TRUE

Description  This week Ari has all the vision, James has all the passion, Garret has the “squeakiest wheel”, Darin is fully vaccinated, and Tyler wants to learn. All of that and the group discusses hiring and embracing diversity. Show Notes  00:00:00 - Pre Show Christmas music - “Carol of the Bells” Reverse searing steaks Oil, Butter, Rosemary and Thermapen Smoking meat 00:04:10 - Show Start Week 4 with Ari 00:04:20 - Follow-Ups  Lucy Update It’s Lucy’s 18th birthday...and she’s still kickin’ Question from Garret: Is there a correlation between a lack of clear vision articulated through the teams and teams hesitant to make decisions? Hearing “no” may create some timidness Maybe after so many no’s they stop trying to get yes 1000 no’s for every yes (but can’t just be a blind no) How do we keep teams aligned with what’s most important for the company “I don’t know if Garret knows what Follow-Ups are” 00:20:21- The Headlines Darin Product L10™ - 4.25 (Darin scored it a 3) Without the V/I on product team - felt a little “at the effect of” Tried to IDS™ an issue that’s about James Made a decision not to release (people didn’t know) Strategic Product Team On track to completing a sprint Got a plan to get back into order speed release Started as not really a plan Bringing more intentionality to development Getting away from a shotgun “scatter shot” approach to UAT Personal Second Covid-19 Shot this week Important to pass that message out No side effects Bathroom remodel coming next week Tyler Planning (or at least some version of planning) Most non-standard 1 off process At risk client stuff continues Garret LT L10™ trumped by planning this week Unconventional planning but got through it all Identified 8 Rocks Detailed to the degree required for team handoffs Stand alone IDS™ session for retail L10™ L10™ cut short due to some buy-in concerns and not having V/I available for the discussion 3PL L10™ scored a 4.0 IDS identified a lack of 3PL references for 3PL prospects Ari Vacation Ari mode is setting in Even had my coffee delivered this morning Quarterly planning was a 5.0 score Ari used all the shapes and emojis during planning 8 Rocks is a little terrifying Got to be with team leads all of Wednesday rescoring functional assignments Garret also got to start and end each day with me...which he loved Sales Integrator Carter is playing “Hiring Ari” this week taking over the employee search James - Takes the easy road out 2 weeks in a row 00:37:03 - Topic 2 (1) - Ari part 4 - Hiring   What does hiring look like for us Especially in this high growth pivot The next 90 days could be pivotal How do we not become a great place for only “middle aged white tech guys” The company James and Darin want to be at is diverse in race, gender, sexuality, background, etc… How do we not become Basecamp? Ari dives into how we hire Relaunched job descriptions Launched a careers website page Tells the story of who we are and our people The interview process Screening Team Interview “Reverse Interview” Reveal who we are to a potential employee CEO and Core Values Starts with really bad jokes then 3 simple questions How do we continue to keep our culture as we scale? How are we set up to attract people we want? How do we hire more diversity? Blind screening - remove all personal identifiable data prior to an in person interview DEI (Diversity, Equity, and Inclusion) Statement Diving into the desire for diversity (age, race, gender, sexuality) and creating the best reality What reactions do we get when explaining how we run our company and ourselves in interviews? Pinpoint (not a sponsor of the show) as our backend hiring tool (runs our process) What lessons can we take from Basecamp Not a company I ever want to be Question from Ari: How do you as leaders of the company lean into creating diversity? “If you don’t want to discuss tough topics at work, it implies you’re okay with the world around you” Question from James: How much do you all feel you are being drug along in this vs have your own passion for it? The small things matter Seemingly small micro-aggressions add up “One small thing, makes the next thing slightly more acceptable” The small things we can do can create a ton of space for others “StarTrek has shown us the way. 01:34:54- Questions and Long Answers  None this week since Garret did them in follow ups 01:35:03 - End of Show  We love external validation, so share 01:36:20 -  After Show - Darin found an iOS shortcut to set wallpapers on your devices The Credits Hosts, Garret Richardson, Tyler Samples, Darin Kelkhoff, and James Maes Show Notes by Garret Richardson Proofing and Title by Darin Kelkhoff Editing, Mixing, and Mastering by Brenton Wainscott

I'm Philip Holden and this is Ideas in Writing - the podcast where we talk to people who use words, about words, using words ...and dispose of them like there's no tomorrow. The guests bring along a word and so do I...and if that's not a copper-bottomed format, I don't know what is...In this episode, I spoke with the journalist, LBC broadcaster and author, James O’Brien about his latest book How Not to be Wrong, the art of changing your mind.James brought along the word footballification which screws up the dictionary link I usually put here so I've linked to tribalism instead. Maybe we can start a campaign to get footballification into the OED. My word was lies. You can probably see the connection.James and I chatted about the events in Washington and how and why liars prosper and how we got to this sorry state. We also talked about his approach to writing his books, his upbringing in a loving adopted family and, what he calls, the 'golden ticket' of an expensive, private education. We also talked about his experience of therapy, and how you go about challenging long-held views Ideas in Writing is produced with the support of Mr Books Bookshop in Tonbridge - the home of inspiring, imaginative and intelligent books, gifts and conversation. They're on Twitter too @mrbooks_ton. But most importantly of all, you can visit them (in the lovely market town of Tonbridge in Kent) for a browse any Wednesday to Saturday 10am to 5pm...assuming there isn't a lockdown... CREDITS & linksYou can click here to order a copy of James’ How to be Right, in a world gone wrong and click here for a copy of How Not to be Wrong, the art of changing your mind (though it’s briefly out of stock).If you’d like a signed copy for £9.99, please email us or use the enquiry form on the Mr Books website.We briefly mentioned Dorothy Rowe’s book Why We Lie which you can order at Mr Books and James also mentioned John Rawls in passing who wrote A Theory of Justice and about whom there are lots of books written just go here and search.Don't forget to subscribe for new episodes coming up.Ideas in Writing is recorded and produced by Philip Holden using Zencastr and Acast.comThe Ideas in Writing theme "Farting Around" is by Kevin MacLeod Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/The "Light Easy March" sting is by ...dog http://www.besonic.com/dogSupport this show http://supporter.acast.com/ideasinwriting.Support this show http://supporter.acast.com/ideasinwriting. See acast.com/privacy for privacy and opt-out information.

Subscribe: Let us do the hard work and send the podcast to you: https://bit.ly/2NZjODA  Review: Share the love and leave a 5* review from your phone: http://getpodcast.reviews/id/1375904962 (from anywhere else hit the ‘Write a Review’ button in the Apple Podcasts app or iTunes) Guest: James Perry (https://www.linkedin.com/in/jamesperryaccountingsuccesscoach/) Topic: Marketing and Finance Discussion Points Guinness!! Irish history Personal branding Financial education Professional marketing qualifications Importance of practical experience Link to the live video:https://www.linkedin.com/video/live/urn:li:ugcPost:6712752394180075520/ Enjoy the Episode - Happy Marketing! Website Thingy: www.marketingstudylab.co.uk The Professional Bit: https://www.linkedin.com/in/petersumpton/ Facebook Community: https://www.facebook.com/groups/marketingstudylab/ Tweet Tweet: https://twitter.com/cousinp81 Transcript (this transcript isn’t 100% accurate but provides a decent representation of the conversation – soz for any confusion)   Peter Sumpton  Hello and welcome. My name is Peter Sumpton, marketing consultant and Lego master of marketing and you're listening to the marketing study lab podcast live. Well, this bit isn't live, but the rest of it is. You'll hear a bit about that later. I mean, now, let's crack on. These episodes are taken from my live show marketing and where we look at the relationship between marketing and a specific topic. Subject or specialism, sometimes there'll be guests other times it'll just be me. So let's get cracking Okay, fantastic. Live live live love it. And I am so delighted to be joined today for this little chat with Mr. James Perry. James How are you doing?   James Perry  I'm good Peter. What about yourself? Thank you for having me.   Peter Sumpton  No problem. I'm doing pretty damn well to be fair. Yeah, all is good big workshop today. Hang on one second. Yeah, just a bit of technical difficulty there Yeah, I did a workshop today that had loads of people in it which is absolutely fantastic all engaged all interested in in marketing and the theory and about how you build a marketing plan and stuff like that so I can't complain sunshine and I think it's a bit cold outside but who cares? This isn't a weather forecast. So we don't really care Believe it or not, the weather is lovely here. It's not cooled   James Perry  and we're in the north of Ireland here which is all we get out.   Get out that's not Peter like I say to people the London for Ireland this Hibernia which meant which means the land of water so I   Peter Sumpton  see now you're gonna have to come back on because I don't know enough about islands and I don't know how I'm going to link it to marketing but there's bound to be some way and your knowledge of marketing and marketing your knowledge of Island and the history is on real so yeah, we're gonna have to link that in some way shape or form I'm not sure how but like well   James Perry  here we go. One of the biggest brands in the world is Irish.   Guinness   Peter Sumpton  well see that's why I invite you on you just keep me in check and make me look fun cuz I'm   James Perry  brought on brand Ireland and I brand Ireland. For a country is incredibly strong. hoka high kind of country an island of 6 million people get every person in the water to celebrate Irishness on one particular day. Or Patrick's Day.   Peter Sumpton  Thoughts marketing at its finest. That is that is brilliant. That isn't how I thought we'd start today. But yeah, let's let's carry on down that route. Yeah, absolutely. Bang, right. Like, like what what Guinness Do you know, they are the antithesis of a heritage historic brand, which keeps transforming what they do from a Marxian perspective yet keeping that history. And those those brand qualities of the the, the white top, the black Guinness, that the iconic glass, that the only company I know that can create an advert about water, and not even mention what they actually sell what they actually do and that you should drink something else other than Guinness and then publicise it, I mean, just amazing stuff.   James Perry  The way that the company was find it, so there's finally over 300 years ago by Arthur chemists who signed this is true, a 9999 year lease on some chambers get   free, because that's one of the sources of Dublin mountain water.   Peter Sumpton  But that's not   James Perry  how they get the symbology as well, Peter, which odd stir brown the heart, the heart is the Brian baru ARP, okay, Brian brew was was an ancient Thai king of Ireland. And even that is symbolic. So you know exactly   what they're doing in terms of their branding.   Peter Sumpton  Well, but that's again, Irish knowledge come into the front. They're not only Irish, but marketing knowledge. Marvellous. And that's what that's what we're all about. I absolutely love it. We'll probably come back to that if we get a little bit bored later on.   James Perry  But we never get bored by Fred. We never get bored.   Peter Sumpton  Well, that is that is very true. That is very, very true. But let's try and stick to half an hour slash four or five hours. I think the mcse live you can go is four hours or something I can't remember. Anyway. That's Mike's it. Right? Okay. Let's go on to a few more serious elements. And then we'll come back to the Guinness stuff and all that kind of stuff. So let's start with your background, a little bit of information about yourself what you do and what you're all about right now. So everybody knows that, what we're what we're going to chat about and how amazing you are.   James Perry  Well, I'm a chartered accountant by profession, accountancy has always been been in the blood Peter so degree in accounting master's degree in accounting and worked for a firm called Grant Thornton for 10 years sort of bigger global firms was an associate director with them, then I moved in tend to stray from not even quarter of wkd, another another alcoholic drink Kima Francia controller with them. Then I left and went to the government, I was the government for government rule for four years, again, as a financial controller on then things happen in life where I had to take a career break, which then pushed me and to starting a company or a business called the cutting success coach, which is my main thrust in terms of LinkedIn and in terms of my, my own business with without, which is to coach accounting students on their exams, and also up and coming accountants and seasoned finance professionals through career development. So that's the main business, I am also a part time teacher, a teaching fellow with the University of Ulster as well. And teaching accounting. So that's my background is all pure accounting.   Peter Sumpton  Cool, excellent. And in a bizarre way, that's kind of how we met with your pure accounting background, my pure marketing background, we're both in the educational field, we both teach marketing, and finance professionally. So it was just really good connections. And the more we spoke about both, the more we realised, from an educational point of view, and just purely departmental, that the links and the synergies between both of them were, were unreal. And then we got chatting about that, and a whole host of other things we've got in common, but let's not mention that Liverpool, the champions of the world, and pretty much champions of everything, shall we? We'll just stick to the marketing and finance on   James Perry  our head is the greatest company ever.   Peter Sumpton  forgot about that? Yeah. God. Yeah, absolutely. Fantastic.   James Perry  You're You're definitely like in the synergies in both marketing on the coating, stroke finance, especially when it comes to getting a professional qualification, look, and examine assignment as an examine assignment, albeit a different topic. And the approaches, in my opinion, are very, very similar. So opposite. That's where we had thought that definitely the professional thing in common as well. Yeah. And we've both been there and Donna disposers, which the thing?   Peter Sumpton  Yeah, that's very true. And I remember speaking to somebody it was on it was on a, another podcast. And they were saying that I can't remember what field they went into. But they went to a university, and sat down in a bid business lecture. And the professor started talking. And he said, Can you give us an example of this, like, that you've been part of? And the professor said that will No, I've never been in business. I only know it academically. And the guy actually walked out. Because he's like, Well, you can't, I want to be successful in business. And there's only so far that I can go with you teaching me from an academic standpoint, if you haven't got any historical, practical application that I can learn from them. This isn't for me. And same with yourself and me. We've we've lived it with breathed it. And I think a lot of people don't give enough credit for the fact that it's all about storytelling. Marketing is all about storytelling, and we gauge with stories and people don't give enough credit for. Okay, this is the theory. But this is what happened to me, or this is a prime example of where it went wrong, or this is what we shouldn't do. Because we've I don't think people give enough credit for that.   James Perry  Absolutely not. If you can live and breathe, what you're teaching someone or what you're coaching someone that really adds a lot to it. I don't think I would have as much gravitas or could help as much if I was a part qualified accountant. I couldn't do that. Because I have sort of I qualified first time with everything. backgrounds always been in the profession. In terms of career, I got to see it very piscean monitored quite early. On no coming the other way with yourself. You know, we're taking the entrepreneurial and started starting on business and doing everything that comes along with that. And I think we're both in the right areas to help others. And I think that's a mean thing to Peter. You know, my endgame is I'm not enough to create the next generation because I'm not. Okay. What I am about, though, is to help people live the life that they want, by getting a world class professional qualification. And by doing things that I learned to, to sort of prepare yourself career forward and live your life you want. That's what I'm all about. And I mean, I'm in this to have a lifestyle business. So that's why I want to teach people how to do that.   Peter Sumpton  Yeah, I wholeheartedly agree from a slightly different standpoint, I think the thing that's missing academically, both marketing and on finance, from what I understand from what you've told me, is the fact that we see it as this, I get this qualification, then then I can do finance, I can do marketing, people will employ me I become employable. Yes, it helps, yes, you get a foot in the door. But what happens when things go wrong? You can't necessarily rely on what you've you've kind of learned, you need that practical experience. And what you said there was really interesting about end game, then why do you want this qualification and some people just want qualifications, because it shows them they can do what they can do, which is fantastic and great. not denying that at all. But others just want it for to progress in their career as well. And, yes, it might help to a certain level, but then I feel there's a lot missing that people don't talk about. For example, when I when I talk, there's the academic marketing, and then there's the real life marketing, the very, very similar, they both need to fit. But sometimes to get that qualification, you need to talk in a certain way. Whereas in real life, you would do things slightly different. It's not the same in in finance.   James Perry  In terms of theoretical versus practical, huh?   Yeah, yes.   Give me a quick example of that. One of the top one of the topics that people find very difficult than a coding is if you're doing an auditing exam, especially if you've never worked in auditing. So if you work and you're doing someone's a concert, if you're working in a tax department, you will find it incredibly hard to relate to auditing. But because I worked in auditing, I could relate to it. And that's something I can help people with a lot. Okay, but there's a massive difference between what it says in the books or what actually happens in real life. You know, what I mean? So there is a very, very different practical element to it. And I suppose, and my coaching, Peter, I very rarely talk accounting. What I what I do talk as though was with the practical applications of that accounting, because people can go and get all the material and learn from a learning provider, but I helped to apply that amount to different thing. Different things all together. And then especially with career development, you can read all the books in the world about career development, unless you unless you've done something, or you can talk to someone who's made all the mistakes like me, you know, shock when you learn about respect as well. So did a massive difference sometimes between theory and practice? Absolutely. But sometimes you have to know your theory before you do the practice.   Peter Sumpton  Yeah, yeah. And and, and that, that is the crux of the matter, there were the first live that I did with with Dr. I, we were talking about education and all that kind of stuff, and saying that it's hugely important to know that this theory, but theory alone, wouldn't necessarily get you through life, depending on what you wanted to do. And it is that that application, whereas if you flip it, and you've got no theory, then you're very, very fortunate if you can craft a career of any substance within a certain field, if you don't have that foundational level. And I'm presuming, like to my, my thoughts on on on finance, and that kind of area is that I wouldn't trust anyone that hadn't got a financial qualification to do my finances. I you know, just just wouldn't be in the same respect. If I went to a chartered accountant, then I probably want them to have X amount years of experience, rather than being that that fresh out is out of qualification. Do you think do you think once you've got a qualification, you are ready to take on the world? Or what? Let me rephrase that. What are the things that aren't taught? So you just pass the exam? What are the things that aren't taught that might hit you in the face when it comes to reality?   James Perry  One thing one point will make actually believe it or not, and it's it is a point for debate within the profession, is that you can call yourself an accountant or not be qualified. Okay. Right. You can actually believe it or not, and some of the best accountants that I know aren't qualified, and then not times that I tell them to get on the horse. get qualified is crazy, because it's adds so much credibility. credibility. So that's the first point in terms of the next bit. If someone has just qualified and they've got the accounting qualification, what I would tend to suggest is that they get that they stay with it where they are for perhaps a year or so or two. I don't know if it's the same in the marketing profession, but it's one or two years of what we call post qualification experience and accounting. And that normally is where you learn a lot of things. So there are a lot of people who perhaps qualify, say, in a coding practice, or within industry, perhaps, and I would say, stay where you are on and learn. Because that's, especially if you're going to go into senior management. And one thing that happened to me, Peter, was that I went that this was quite an extreme route. I went from being just newly qualified, straight into a senior management role. And I wasn't, I wasn't the manager, I wasn't manager, I was mid senior manager, I was promoted incredibly quick. Okay. And I was basically said, durscher portfolio of clients, go and figure it all out. Right. That's what I was taught. So I had to sink or swim. And I learned the hard way. No, that was when I was 10 or 12 years ago, and you'd like to think there's a bit more of a change, and I with proper coaching and things like that. So what I say to someone who is newly qualified, is this one to two years post qualification experience, and get a mentor or a coach. Absolutely, yeah. Because I've said, I've made all the mistakes. I was the one who didn't Dalit didn't know how to delegate. I was the only had this trinkets Knights. I was the one who was made stuff monitor at 20 it with all my mates, I was then their boss, I made every single mistake in the book. So get a mentor who's been there?   Because I tell you what not to do, you know?   Peter Sumpton  Yeah, that is very true. And although we learn from our mistakes, there's some mistakes you just don't want other people to make and others, you almost feel like they've they've got to learn from those mistakes. And that's not to say that, okay, well, well, you can come in work for me or I can be your mentor. But I'm going to let you screw up. It's not that at all most will. This is my experience, but you probably better experience in it for yourself.   James Perry  Absolutely. You have to you have to walk work and run.   Peter Sumpton  Yeah, yeah. So just to go back to the question, is it the same in in marketing, so what I would say, for anybody that's looking for a career in marketing, slightly different, the approach that I would take is that I would say, Don't jump to any particular position. Don't go for any particular job, look at look at the company, look at how they operate, look to see if they're marketing orientated, or whether they're sales focused, or production focused, because you will have a very, very different working life. If you work for a company that's marketing orientated, you will learn a shedload more than you will if they are sales focused, because what will probably happen is that you will be more comms based, and you will be more admin based at the very start. Whereas if it's marketing focus, yes, you'll have the admin functionality, because you're at the bottom of the ladder, but it will be marketing, it will be focused. So you'll get involved in product, you'll get involved in price place, you're getting definitely involved in the communications, because that's kind of what anyone sees nowadays is just the comms in marketing. And I think that's an issue we've got to face. But yes, slightly different to what you would say in finance. My advice would be more about think about the company, and what they can offer in terms of your education in marketing.   James Perry  It's funny, even as you say that,   whenever I was in the industry, and then in the business, once I left the ground floor, marketing was always seen as the sexy thing. Whereas finances, that's the boring thing, okay. But one thing I would say about accounting, if you are an accountant, is to go and talk to everyone else. Go on talk to the marketing department and sales department because what tends to happen or something that people have to realise is that accounting or the finance department is the eyes and ears of the entire business. Therefore, you have to pop relationships with marketing, CS, operations, Treasury, whatever that means. Be. So that's one thing that any marketing students are out there and you're with an industry, go and talk to your accountant Scott, talk to finance. Go and because remember, you're one organisation, it's not, am I that sometimes happens, where departments in a certain in one business think that they're competing they're competing or not? Yeah, that's one thing I learned massively. And accounting, I believe the term of content will be no longer and five years, we will be called business partners. That's what I believe will be called. Okay. That's because the numbers will take care of themselves through AI and blockchain. So we have to actually get off our seats and go talk to people. That's, that's what's happening. So that's where marketing and finance will really coexist.   Peter Sumpton  Yeah, it was a topic that I wanted to raise with you Really? What What can what can marketing ask finance and what can finance learn or understand how that relationship with marketing but completely agree like, across their whole business, similarly, within marketing, that the fact that you need to be involved in pricing, so you kind of want to talk to the finance department to see if you're profitable or not, you need to be involved in in the product. So technical, technical, and r&d and stuff like that. And the same for finance, you know, r&d, you could spend an absolute fortune on r&d and not get anywhere. But if you've got that financial backing to say, well, these are our pinch points, you can take it that far before we need to do this, we can rely on this product for that income, then, you know, the world is a better place. And I love the fact that you just said we're one company and we work in silos some some times and that is a really, really sad thing. Just Quick, quick comment. Will to actually from from Connor, he says, Yeah, the company can teach you so much. But love this one. loving this first time are tuned in. So I'm guessing that's because it's the first time you've tuned in and you just looked out with James Perry being my guest. So   James Perry  I would have a guest Connor. Okay, if you hop off the hop and Irish connection, there   Peter Sumpton  is balance. We can't connect, let us know. Yeah, absolutely. And if you if you've got any Irish history related questions, now's the time. Now's the time to ask them. Just Just on that, just to say, if anyone has got any questions about marketing, and finance, marketing, or finance and how they coexist, or how they work together, you know, please, please do speak up happy to take them on board. So just going back to that question, from your point of view, from a finance perspective, what would you want to know from from marketing to so we can coexist?   James Perry  The first point, if anything, with marketing or than any other department, the first, the first thing that always happens at the start of the year budgeting? Yeah, okay. This is with a bottle of normally. But again, it's having conversation. So if you are a head of marketing, if you're a head of thought sort of department, again, is not to try not to sit on your laurels and going, oh, we're going to get 5% on top of last year's budget, that does not work anymore. First thing is you need to go and talk to each other. And on the terms of finance, Peter, our terms of marketing, especially, it's gonna be very topical night because my farts bring in business with with the the recession and the depression living. What's the first thing to go? marketing budget is cost. Yep. Okay, so that's all the conversations that may need to be hard. Because the other school of thought is that whenever markets are low, or whenever the economy is low, that's the time you need to promote. That is the time you need to invest. So there's so it's actually really topical the conversations that should be compared to marketing finance right now. Hmm.   Peter Sumpton  Yeah, I agree. So if if anybody and I'll put a link in the comments after this because after find out my phone, but Mark Ritson at marketing professor, and consultant, he wrote an article that was published today, and it was talking about sales funnels and stuff like that. But one of the examples he gave was, and I can't remember the company, but an insurance company in Australia, and basically, the final, not the financial officer, sorry, the marketing officer. He doubled down on his advertising within this period, but he did it from from a branding perspective, as well as a sales perspective. So what he did, he went to finance and said, Look, I need more money because of this. And he explained it and what they did was they had this this when no one was advertising. They put all their money into advertising. So they got huge search. Advice. And then what they did, they had these small mini campaigns, where it was a case of we know times are tough. So here's 10 Australian dollars a month to insure you for fire, theft and damage. And that was the short term tactic. And it just worked on believably well, and he gives some stats in that article. And it was just a perfect example of knowing the marketing, but also knowing to talk to finance and saying, look, this is the state that we're in. But through what I know and what I understand we need to invest in you can't really do that without your finance department being on board.   James Perry  Absolutely not. Absolutely not. It's really interesting you say out too, because even from a personal marketing standpoint, bronze, Peter Brown, James. And I was actually on a course today and the question that I put out there was in the world of all this personal branding and personal marketing, I dare How can you make yourself stand out? And it's similar business and similar, similar personal, the same personal was your grant because of your Lego? Right? That makes you stand out? I probably stopped it because I'm the most on stereotypical thing. Right? I am. I like to think I'm not boring at all. I've got a personality. But I thought that was a really great question that was posed today. So I'm gonna I'm gonna I'm gonna be somebody who fires a question back to the host. What can people do? Or what can businesses do to make themselves stand out from the crowd in today's climate?   Peter Sumpton  I mean, I think you've hit the nail on the head with with Lego. Here I am, just for anybody that hasn't seen rowing. There we go. That was the fella. So yeah, I think it's being being memorable or being known for one thing, who you are, and being true to that over a consistent period of time. So unfortunately, nowadays, we live in an economy and that now economy, like I ordered something from Amazon ATM yesterday morning, and it was supposed to arrive before 10pm, the same day it didn't. But I've done that previously. And it has it's arrived the same day. And that is just not it was an extension lead. And it's like, how are you making money off that? So anyway, so be known for one thing, if you want a really good book to read, and a big shout out to john esperion. It's called content DNA. And what he says in that, he says that, you should have kind of three things that everything you do gears around. So that could be and I haven't nailed mine down. So I'm giving advice, and I'm trying to follow it. But I'm not 100% there yet. I'm still playing around with a few things. So so mine, my non negotiables are Lego, helpful, and witty. So everything you see from me should be either all those three things, or one of those things. If it's not, it's not me. And so to build a personal brand, it needs to be individually, you and there's only one of you. Now, the problem you've got James, you're in a great position, because like you say, if if you said, Peter, what do I do? And I hadn't met you. There's no way I would guess what you do. So you being you stands out in your marketplace. Now, if you didn't, I would say become known for a particular thing. So whether that's you wear a bow tie, whether you are a flat cup, whether you have a catchy strapline, whether you do all those things, it's about being consistent. And I don't care how dry or boring or on entertaining somebody thinks they are. They will appeal to a certain demographic, and don't focus on everyone. Even Harry Potter doesn't appeal to everybody. So if you if you're looking for 1000 likes and to please 1000 people forget it. If you're looking to please 1015 people out of the thousands, you're on the right lines. So that's what I would say be known for the right things but make it you because the one thing you don't want is to build up this personal brand of I'm James I'm always I'm always funny, always witty, I know loads of Irish history, and then I meet you, and you know nothing about Ireland, and you're just dull and boring. And I'm like, well, you're not the person I thought you were and and the one thing I would say it's actually in this book, a quote from me, although I didn't originate the quote, but a brand is a promise. And that's the same For individuals, so when I'm talking to you, James, you've promised me that you will be engaging, you will bring your your financial knowledge, you will bring your Irish knowledge, you will be true and honest and open. And if you weren't that, I just be like, well, something's wrong here. And that's who you are. So stay true to your brand and be known. Yeah, so don't break that promise, either. And if you've been false, you'll end up breaking that promise.   James Perry  The there are two things, and one I have actively worked on. On the two things that are your superpowers. One is sleep, right? Sleeping that the part I tell my students that I'm not joking that folks, if you don't have your sleep sorted, get it sorted. Hmm. Second one is consistency. And that is the super part that I neglected for a lot for a long time. So why would have been especially on LinkedIn for my own business, I would have been up here, massive peak post and stuff stopped doing well. And then you go into that truck, and you go into that trough of God, I'm not getting too many likes or follows around. But that's a self fulfilling prophecy, because he don't post you're not going to get them anyway. To be perfectly honest, Peter likes and all that sort of stuff of comments isn't necessarily my metric anymore. Because of to try and get clients and to get eyeballs on my posts. So few use engagement, DNS in the background, having really good conversations with people. What I want to get from this, but I have solved the problem. Now I've got a VA. So I have got over the last couple of years, and the intermittent posting, I'm creating content, I maybe have two or three years with content on my laptop, and I went to my VA and I went just you go nuts. which gives me that platform of consistency. Mm hmm. It's an education piece swept to educate her, where I want her to go with it. Now she's, I could say, just slightly more creative than me, in some ways, now quite creative in other ways. But it also gives me the scope to engage, it gives me the scope to have those conversations with people in the background. And that's something so another tip I would give anybody out there is that given consistency is your shipper part of whichever discipline, if you're not going to be so good at a time source that because it's really, really important. And that's something I've learned massively, you know, I have probably over the last six months been more successful than I have last financial year on it probably factors are probably about it. It is because I've been much, much more consistent over the last six months.   Peter Sumpton  So and I suppose that that's one thing that a lot of people take for granted. So a lot of people that class themselves have influences or whatever you want to call them. You see them a lot, you see them over a consistent period of time. And that is because they're consistently posting, they're consistently on a particular platform, and you get to know them. And that's exactly what you were just saying there. It's it's all about the consistency and using a VA i think is a great idea. And I'm toying with the idea right now. And I just think that I'm so glad you went to say that, you know, it's a bit of a learning curve, because the one thing you don't want to do is outsource and then you lose you. So I'm guessing in terms of the engagement and the conversations you have that is still you it's just the consistency is being helped with having this other person do the ad mini side of being consistent. And I was very lucky who I got from my VA so I have tried and busted   James Perry  our trading task division say a number. But what I do personally is nothing business related as myself on a friend on another young lady. I've got a podcast on we have just we thought we talk rubbish   Peter Sumpton  grin and bear it   James Perry  up grunenberg with Rebecca right so Rebecca is nine my VA on that's where I've been quite lucky. Okay, so Rebecca knows me personally, she knows that I'm like she is she creates movies. She has written a novel. She's not even 25 yet. She adds fantastic in the way she thinks she's very creative. And I went okay, Rebecca, you can kill two birds with one stone here. I am creative. But I'm quite logical in the way that I think. Can you help me paint more of a story about me, but also takes the burden off me to actually have it done on my business at the same time? And I said, Look, I'll pay X amount a month. Yeah, no problem. And that has been one of the best moves either For me, I have I have paid people who don't know me, I have paid. And I just been quite lucky that that has happened for me. But it still is an education process and I will be a continual process. You know, I've noticed that the quality, my deliverable to my posts and my graphics, on even the blurb and the wording of stuff in LinkedIn is infinitely better than what it was a year ago. So again, it has evolved through maybe as help as well. So definitely get people on site that will help you because we're not going to be great at everything we can't be.   Peter Sumpton  Yeah, that that is one fable, if that's the right word it within marketing, it's that. And I'm pretty sure anyone in lighting will will agree that that you have to be excellent at everything. And people expect you to be excellent at everything. So not only do you have to know the ins and outs of LinkedIn, but then you also have to know how to set up and design a brochure or a trade publication. And then you know, you need to know the printing process and the difference between CNY K and RGB and the different types of paper and because you're in marketing, and it's just, it's not true, because you cannot you cannot understand everything. It's It's nuts. Is that kind of similar in a way to to finance or it.   James Perry  Yeah, okay. Peter, people come to me and ask about tax all the time I have in my life, not a tax return.   Peter Sumpton  I asked you as well, like,   James Perry  I don't know, I don't even do my own. MIT does it for me. The reason why that was is because I can draw up my own company kind of not a problem. But my specialism in a bright trend was audit. So I used to go into other companies and audit their books to verify that were recalled true and fair. And basically reasonable. And I was I was a damn good auditor. And then whenever I went into industry, I drew up the books off Wk to either drink or I stabilised the finance team. And then I write and talk to the rest of the business. So I, for example, will not look at pensions or tax or anything like that. People come to me because I'm an accountant, automatically thinking that I know but that might though.   Peter Sumpton  Right? So many synergies there.   James Perry  Absolutely. Is the probably the same in marketing. There's so many but you're specialised that. And there's some areas that are not. And that's the reason why in some of these big organisations, like it's so many different departments. So for example, Grant Thornton are known as chartered accountants, but you've got departments for everything. You know, so I'm not the reason why, you know, you can be, you can be what jack of all trades and Master of None. Yeah.   Peter Sumpton  And there's loads of things to pull from that and discuss really, and I'm just conscious of time, but that's all. But there's no way we could we could break the timer. But they talk about that the T shaped marketer, so you've got a good grounding in all disciplines. And then you focus a speciality on one or maybe two. And that's fine. But the one thing I would say to that is that everyone's different, and everyone's unique. And don't be pigeonholed into one thing or another, unless you want to be a specialist in that area. If you want to be a specialist on PPC, on SEO, fantastic, brilliant, and then maybe branch out into other areas on no other areas of marketing. But if you want to be an all round marketer, I think you need to know and understand a lot. But think more strategically, because that's the bit that's missing the strategy element within marketing we all go for the tactic, we all go for the cons, we all go for the video, and the editing behind that and content creation and stuff like that. But it's the strategic element because all that content creation is great. But like you said with consistency, not only do you have to show up consistently, but you have to have a consistent message which again goes back to your personal brand and be known for particular things. So for example for you James, I know that if I see a post that is that is black, and I don't know what political it at turquoisey blue, it's   James Perry  it's the colour of the colour and the ripples on the shirt.   Peter Sumpton  That's where they got the colour from. I wondered that brilliant, I love it. But yeah, it's those two colours, then I know it's going to be James Perry, and it's going to be talking about accountancy. And because that is you've been consistent over a period of time with those colours. One if you want to check out anybody that does that unbelievably well. There's a lady on LinkedIn. She's very prominent LinkedIn called Mary Henderson. Her colours are pink, black and grey on real Everything you see is pink, black and grey every time I see something that's pink, I just think Mary Henderson's post. Transcribed by https://otter.ai Main Intro Music Featured on this Podcast:Intro 1N15 Setuniman http://www.setuniman.com/ Creative Commons License

PDS #145 *Get the free training on how to start, scale and monetize your podcast. Go to Facebook, search for my name Luis Ryan Diaz, and shoot me a message with the word “training”* #1. "Entry Point" Episodes Examples:  3 Best Tools To Automate your Inbox and Save 4+ Hours a Week on Email  How to Write a Cold Email That Gets High Response Rate 3 ways to easily be more productive TODAY. Why make this content It's easy to make. There's some SEO benefit with these episodes It's easy to create a CLEAR benefit rich hook/title with these episodes. It will get CLICKS for months and years. It's the perfect kind of content you need as an "entry point" for new listeners who do not trust you.  Creates results in advance (if someone used those tools they will likely see value and you're podcast will be attached to that memory)  #2 Conversion Episodes Here you're taking that attention you built previously and then getting them to believe in your ability to help them.   There are two main types of "conversion episodes" I use that will show people you can serve them.  Example #1 - Silent Testimonials  How James Scaled His Podcast Traffic 3x in 90 days with the Growth Pyramid System  This is where a client is just talking about the process and results they got, how they felt before and how they felt after,  no hard pitching or pushing. Example #2 - Laser Coaching  LIVE AUDIT with James: How to Scale You Podcast Traffic (AKA Hot Seats)  This is where you bring someone on and audit their business, routines, systems, ads etc.. Whatever it is that you're the expert in, bring someone on and show them LIVE how you can help them.  (I have a template on how to do an episode like this..step by step pm me if ya want it)  Example #3: Case Studies  Where you can talk about a client's results/ story/ problems/ what they were feeling etc Why make this content:  It makes people aware of what you sell  It makes people award of what kind of results they can achieve Usually people in your audience will be struggling with similar things so you'll have some people reach out to you after if you strike a BIG pain point.  It creates authority for you in your space. Should provide an easy next step for someone who wants to go deep with you. *** You can also teach a framework methodology and mention case studies/clients results to enhance the realness of what you are teaching.  #3 Partnership Episodes These are your interviews that are designed to reach people in other circles. Leveraging guests is easy but most people don't do it right. 3 Reasons WHY You Bring Someone on: Sharing content that your  audience CARES about (make sure its something people actually care about)  Connect for future collaborations and relationship building (clients or partner) Mutual Collaboration where you BOTH swap interviews  Recommended to PLAN this 2 two weeks out (send an email to your list/ making a FB Event) Have the links prepared. Possibly create a banner. Have a special offer for the audience  How to pick a good guest: Understands that they have a role in promoting this episode too before and after.  Have an audience that you would like to connect with  Can bring valuable insight and have some fun to the podcast episode. Connect with Luis: Website (https://my.captivate.fm/podcastdomination.co) Instagram (https://www.instagram.com/luisryandiaz/) Facebook Group (https://www.facebook.com/groups/startscalemonetize) Facebook (https://www.facebook.com/luisryan4) This podcast uses the following third-party services for analysis: Chartable - https://chartable.com/privacy

I find it odd that so many people fear the stock market and then get lured into financial scams. Inspired by James, who is trying to keep his clan from being conned, we help you figure out when something is just not right.  Here are some tips to get you going: Find out if the company or product is registered with the Financial Services Conduct Authority (FSCA). This is not foolproof, but it takes a diligent kind of con artist to steal money in this way. It does filter out a lot of the scum. Run the opportunity through the Just One Lap five concepts filter: At the end of this experience, will you own an asset?  Will you earn income on that asset and will that income compound?  Will the returns beat inflation?  Compared to what your index of choice did over the same investment period, do the returns seem too good to be true? The promised returns are a huge red flag. If you're new to financial matters, it's hard to know what's a lot and what's a little. As a rule of thumb, when an “investment opportunity” offers monthly returns, be very suspicious. It's industry practice to quote returns for a year.  Google not just the company or product (that's usually fairly easy to control), but also every individual's name associated with the product. Scammers love getting away with scams, so they tend to circle back. If you find media articles about the legitimacy of the product and the person you're dealing with tells you they're taking legal action against the media house, be very suspicious. This is an old trick to put potential investors at ease. Remember, you don't have to be in the right to bring legal action. We also spend a little time on helping you think about alternative, unlisted investments and the place they should have in your portfolio. Subscribe to our RSS feed here. Subscribe or rate us in iTunes. James How do you know you are investing with a fraud? More importantly, how do you convince your friends or family that they are going to get fucked? A friend of mine invited me to listen to a guy that is willing to invest your money through his company.  The returns are absolutely amazing!  77.64% for the year in 2017!  To the untrained ear, this guy sounds lekker.  He explained that they move the money to America and use a computer program (that his son developed) to predict the market.  The level of risk is then adjusted by the amount of gold (held at the bank of England) in a portfolio. They do all of this at a fee of 1%.  I asked him a few questions about custodian accounts, insurance, brokerage, total investment cost, TAX and all kinds of clever shit you and Simon spoke about on the show.  I could see this guy has no idea what I am talking about and then he referred to an ETF as an "Electronic Traded Fund" then I knew this is a fucking keeper!  He told me that he is not here to convince or force anyone to invest with him. But there he was, trying to convince people to invest with him.   I am convinced this guy is a fraud, but my friends are not and eating up every word this guy is saying.  My friends have family invested with him and have seen returns so now they are true believers. What do I do? Win of the week: Martie I enjoy your writing and podcasts. Think the fact that you do not come with a background in finances makes it easier for the ordinary person to relate to you. And the fact that you have learned so much about finances gives us hope that we can do it too. Definitely an inspiration.  You and Simon are a mean team and I am really glad I discovered you.  Ani I have an option to take a pension backed loan. Each month, the payment will be deducted from my salary. Should I default, they will take the money from my pension.  The interest rate for the loan is prime minus 1%, and there are no registration costs (which would be a minimum of R35000 according to the bank should I apply for a 2nd bond). We are expecting the renovations to cost between R300,000 and R400,000, worst case scenario. We are also planning to move overseas within 5 years. We don't want to overcapitalise. Houses similar to ours in our area are in the market for between R2.2 and R2.4 million. We are trying to ensure our house is the most attractive house on the block. If we run into financial trouble, and we need to rent out the house, we shouldn't have a problem finding tenants. If we want to sell, we offer a better house for a similar price to the "outydse" one down the road. If we don't move out of the country, we will stay in this house.  Is the pension-backed loan worth it, or should we take the R35,000 out of our emergency/insurance money(for registration costs) and rather take out a second bond? The Ts and C's indicate that should you leave the retirement fund, you can settle it in cash, or they take it from your pension (thinking about tax implications etc, that's the last thing I want to do). Or should we live with shitty floors and cupboards (and increased spending on sinus meds along with cracked heels) until next year March when we have more certainty on whether there will be salary cuts etc?  Ndida How do I use this cost per use on a running shoe bought for R3,000. Do I use the 12 months I have used the shoe or the kilometers I have done?  I am under debt review working my way to be debt free. I entered debt review in April 2019. In 2016 I bought timeshares with LPA under the impression that I was investing in property. The contract is for seven years until I have paid them in full, plus the annual management fees which are quite steep. I still have five more years to pay. Since I am occupying the place only once per year I am a loser ito cost per use. I am not sure how to untangle myself from this. I am paying a monthly installment of R1,700 and each year there is a seven percent increase. Wesley I have a bog standard TFSA with Standard bank that I've been contributing to for 3 years now. I only recently discovered your site and the opportunity to take this long-term investment and use it to buy ETFs to give me a better interest rate than the minor 3.5% I'm getting from Standard Bank. I want to make this money work harder for me and I don't plan on using it for at least 10 years, probably longer. Is it possible to transfer this TFSA from SB to a place like EasyEquities and start using it to buy ETFs? Is there any tutorial/how to on this process outlining what I need to do at the bank as well as with EE? Chris  I would like to offer the staff some resources to help them with their personal finances, I can offer some help in my personal capacity from what I've learnt from you guys, but can you give some resources/tips on how to deal with reduced income? The school has applied to TERS from day 1, but those F%^&* have paid us diddly squat, and won't tell us why…

James: This is James Kandasamy from Achieve Wealth through Value-Add Real Estate Investing Podcast. Today I have Ashley Wilson from Philadelphia. Ashley is a specialist in Asset and Construction Management; she is an asset manager and also taking care of construction as well. So it's going to be a very interesting discussion. She has a GP in 350 units and also have invested as an LP and working on deals on her own as well, which is awesome.  Hey Ashley, welcome to the show.  Ashley:  Thank you so much for having me.  James: Good. Have you been on podcasts before?  Ashley: Yes.  James: Okay. A lot of podcasts?  Ashley: Yes.  James: Okay, good. So it looks like you're going through that podcast circuit, I guess, right? Ashley: Yes. I have been on the podcast circuit for a little while now, yeah. James: Good. So a lot of times when I bring guests into my podcast show, I usually bring operators, which are people who buy deals, who does the raising money, who does the asset management as well and who also do the rest of the investor relationship as well. A lot of times some people do not do third party property management or in house property management. They are not [inaudible 01:18] integrated, but some are. You are special because now you are an asset manager, right? And you also do construction. Can you tell us a bit more about your role as an asset manager and construction manager? Ashley: Absolutely. So what I like to tell people about operations on multifamily is operations are very important in a down market, they are the most important and what I like to specialize in is everything from once a property goes under contract, even prior to that looking at the numbers, making sure that we account for how things actually happen, as opposed to just accepted statistics in multifamily in terms of underwriting, because every market is different and the way in which you operate a property can be vastly different from market to market.  So being very well versed on what things work within a specific market accounting forward within underwriting, then verifying it during the due diligence process and then ultimately operating according to the business plan, or if the business plan needs to be adjusted to make better value for the property and an ultimately a better return for the investors is what I enjoy doing the most, the property, the real estate component of multifamily is what excites me. I know some people really enjoy networking with investors and going to dinners and doing all of those things while that can be very exciting, it's really exciting to me, the property and how much money I can squeeze out of a property. That's what I enjoy doing. James: Got it. I'm an asset manager as well so I really appreciate what you're saying because you can go around and raise money from people. You do a lot of advertising marketing too to get people to give money to invest and a lot of people give up on that, right? But once you close on the deal, executing the business plan is the harder part, right? It's not closing the deal. It's easy to close the deal, especially pre-COVID and market-speak. There's so much money chasing multifamily. There's so much Bootcamp and so many people who want to invest right, everybody has this formal effect, right? But you're right, I mean, executing the business plan is hard, right?  And I've seen a lot of people who were very motivated before closing because they tell all the fun story but after closing, they're very quiet or they don't really talk about their performance on their property, right? Nobody really declares about their property performance because it's hard to really do post closing execution, right?  So let's talk about when do you come? I mean there's asset management fee and some passive investors, especially new one who comes in, ask me, why are you taking asset management fee, right? Why not an asset manager which is the same as the property manager? Can you differentiate between that? I can add my things and differentiate property management and asset management. Ashley: Yes. So there are a couple of questions there. I think that investors seeking an answer to. The first being the difference between the two positions, property managers and asset managers, a lot of times when you speak to people who own multifamily, they see that a property manager works for an asset manager. I do not see that the same way, I see it as we're a team and we work together and the only way you can achieve your business plan optimally is working in conjunction in partnering. And ultimately the asset manager has a different number one client that they're answering to, they're answering to the investors, the property managers they're answering to the tenants and they're making sure that the property is the best property for that particular tenant, that demographic and if someone doesn't really understand everything that a property manager is doing, a property manager, in my opinion, is comparable to a teacher. They have more things on their plate than they have hours in a day. They are doing marketing; they're doing general service complaint calls, et cetera for the property. So they're managing the current tenant base while also trying to attract a new tenant base and also trying to execute a business plan for the ownership group. It is very difficult to do especially in terms of the metrics, the national metrics for number of property managers per unit; typically it's one inside one outside's per a hundred units. So for example, a hundred unit property would have one interior, a property manager, and then one maintenance person on-site for every hundred units you have. That can happen on a property that is a stabilized asset, but a lot of times, especially the properties that I go after their value add assets. So there are things firing on all cylinders because there's deferred maintenance that we're tackling, there are tenants that should not be in the property that was put in the property probably by pre-released ownership so they're really trying to tackle a lot of different things. The asset manager, on the other hand, answers to the investors. The asset manager is the person responsible for protecting your investment, they're responsible for maximizing every single dollar that's placed in that apartment, we want to try to get two times that dollar three times that dollar up, ten times that dollar, that's what we're trying to do, every single investment we make on a property. So what we're doing is we are the added layer of protection. We're looking to make sure that the day to day operations are not only executing that business plan that you have in place but also maximizing the investment. And I say that, and it sounds like a broken record, but truly that is what an asset manager does and there are so many things to make sure that you're doing from vetting contractors, making sure that you're getting the best price on the renovation too. It's very strategic when you're doing renovations, how you should do the renovations, how much you should do, how little you should do, what rents you can charge, what's the absorption rate, what is the market comparables in that market that you can push the rents? There are so many different components, I could probably talk for an hour alone on just different components that I look at even on a daily basis, let alone on a weekly or monthly or quarterly basis. So to me, it's a full-time job and that is why personally I've been able to execute business plans a lot faster than, you know, I've had two properties where I've had to execute a business plan on the first property. It was a two-year business plan with a refi in year three, and I was able to execute it all under budget within a year. So I think that's pretty impressive and then on my most recent property, it was a four-year business plan that after we executed the renovation over four years, then we were at the end of three years, we would refinance in year four and we were able to execute the business plan in actually less than a year and also under budget. So that is the difference between having someone oversee your investment on the asset manager side and work in conjunction with the property management team. I've been very blessed to have an incredible property management team that I work with on these properties. So for us now we have systems in place to make it even easier to execute everything we do. James: Got it. So let me summarize what Ashley just mentioned, right? So asset managers basically approve, execute property budgets. They look at property financial reporting and making sure that budgets are met and at the same time they also have to make sure that you are able to execute what you thought in the beginning, whatever performer and whatever the original sponsor has planned for that and they have to make sure they hit that, but as for the budget as well, right? So do you work any part of it as part of the investor side of it like investor tax document and any other things on the investor portal and all that, or is it all that a sponsor takes care of it and asset managers on the asset? Ashley: Well, I also am a sponsor, I sign on loans, I'm not just doing asset management and I've also brought my own investors in, on deals as well. So in terms of being fully involved, 60 knots of whether or not we execute a cost segregation study, getting the K ones out, getting all the information, I provide all the reports to the investors. I'm the one who creates all the reports for the investors. So really I'm doing soup to nuts and I do it in a very granular fashion. So I'm a full-time real estate investor. I think there are a lot of opportunities for people to get in multifamily while working at W2 and there's a point in which you absolutely need to transition. I don't know how someone could keep up with all the work that you need to do for an asset manager of a larger property. When you are also juggling a W2 on maybe a more stabilized asset you could probably do that, but in terms of the volume, if you want to scale, ultimately what you would be looking to do is to do it full time, which is what I do. So in terms of prepping everything that the investor needs for whether it's preparing their taxes or doing things for the property, I just really make sure that I'm the glue that puts all those pieces together. James:  Got it. So let's go a bit more technical here, right? So you have a plan from the sponsor, right? So when you're working as part of the sponsorship team as well, and now you said, Ashley, you're going to asset manage this, right? And we talk about absorption rate and renovation progress, right? So let's go into each one of those and you say like four to five key indicators that you look at. Can we just quickly summarize that? What are the four to five key indicators that you look on either daily or weekly basis? Ashley: Okay. So first I also wanted to mention that despite how many properties I have, I also consult with other sponsorship groups. What they'll do is they'll bring me in and I will basically audit their property and I will point out all the things that they could improve upon. So there are things that I look at when I'm auditing other sponsors deals and then they're also things that I look at on a daily basis for my property, I can speak to the things that I think probably most people who asset manage. They don't have the time to look at things on a daily basis so they're probably looking at it more on a weekly basis. So I'll share what I look at on a weekly basis because what I look at daily versus what I look at weekly what I look at monthly and quarterly are completely different. So what I look at on a weekly basis is obviously I'm going to look at my traffic, I'm going to look at my occupancy, I'm going to look at move-ins and move-outs, I'm going to look at work orders. How many of those emergency work orders, categorizing the work orders, time of resolution, and then in terms of repeat work orders and or the reviews of the work orders. So in terms of whether or not someone would give the work order a five-star review or one star, those are things I'm looking at. I'm also looking on the traffic side- where's my traffic originating from, my source and what's my conversion rate on those sources. So that way, I know very thoroughly, which traffic sources are working, which traffic sources aren’t. I also look at it on a weekly basis specials within the market to make sure that my property remains competitive. I look at my renewal rate; I look at a lot of different things. I'm trying to see if I'm remembering every single aspect of everything that I look at, but ultimately what I'm trying to do is I'm looking at the property in such a detailed fashion as if I was operating the property with boots on the ground. So that way I can make little adjustments immediately when I see that there's a need, as opposed to waiting until let's say, for example, I've plugged a lot of money into a marketing campaign that I don't see working, three weeks in, I'm going to yank that marketing campaign as opposed to keep it running for six months and lose that investment when I could have plugged it into a resource, it's giving me a higher conversion rate and higher traffic. So that's really the things that I'm looking at. I'm looking at how to influence the people who are coming into the property and how to influence the people to stay at the property. James: Got it. So let's talk about renovation per unit, right? I mean, before you close on the property, I mean, let's say for example, 5,000 per unit, right? And post-closing, how's that 5,000 per unit budget being tracked? How do you know that it's very effective in terms of your rent growth and your annual growth and meeting your business plan? Ashley:  So when I go into a property, I know exactly what I'm going to do to that unit and day one, I pick every single finish that I want for that property. So that's inclusive of if I'm going to change the flooring, I pick out the exact flooring I want, I pick out the paint, I pick out everything and then what I do with my management company is because I'm not located in Texas and my properties are located in Texas, we've implemented systems where we have a tracking system so it initiates what units are available to be renovated and what condition they're in and then we put together a package on what that particular unit needs. So I know to a penny, how much that unit costs to be renovated and then ultimately what I do is then I track the progress of the unit through pictures before pictures storing and after pictures. So I can see the progress of the unit and then I can see what the total cost of the unit, if there are any change orders, typically I don't have change orders unless there is something extremely grave at the property that is unexpected but I've been in construction long enough to know I'm raised by a general contractor who had his own business for over 40 years. I'm very well versed in construction that I know how to negotiate prices, I also have a lot of contacts so I can get prices down pretty well so in terms of verifying afterward, I then confirm the cost for the unit and then I have my own tracking system to ensure that I stay below budget and that's how I've been able to stay below budget on all of my projects. James: So let's go into that process, right? So now you have a unit that you're going to renovate and I presume the property manager is the one that is going to give you the budget on the progression of whatever being spent on that unit. Is that right? Ashley: Well, what I do is I package it. So I know, for example, there are two things in construction. It all comes down to labor and material. I know how much material it's going to cost me and we have a checklist on what that individual unit needs so I already know upfront what the material is going to cost me and then what it comes down to is what the labor is going to cost me and in terms of the price per labor, everyone should know how much it costs to switch out an outlet, how much it costs to switch out a fixture, how much it costs to paint a room. I know all of these numbers. So if someone says to me, okay, this unit costs this much and it's over budget I can then question them and say, why is it over budget? And they'll say because our guys spent three more hours, so why did they spend three more hours on this unit versus another unit? Oh, well there were some issues. Well, you walk that unit in advance, you knew what the unit condition looks like and let's say it's painting, you knew like unless I replaced like a put up a whole new wall or took out a wall and I reframed it like you knew what the estimate was, you knew the square footage of the wall that you were going to paint. We have it priced for rooms. So it's very easy for me to argue, because I know it's such a granular level that I can get the price down and that's how I confirm that I stay on budget is to know all of the prices to that level. James:  So you are assuming that, or maybe you already have a really good crew, which is working as what was planned, right? Otherwise, you're going to always question then why you guys are late because that's another variable, right? You have to schedule, right? I mean, you have your materials of labor cost, but they can take forever to finish one unit. How do you keep track of that one unit renovation? Ashley: So we have, in terms of scheduling, we have certain times in which we release a certain amount of units and then they get them to renovate. I have worked with contractors for years now, across all different types of properties-single-family, multifamily. And if one thing I have learned across along that process is that when you work with someone for the first time, you're not going to give them an entire job, you're going to give them a piece of a job and they're going to have to prove themselves to get the rest of the job. These contractors, when I have large multifamily properties, they want the entire job. So they're going to work very diligently at the beginning and hopefully throughout the entire project, but most likely they're going to work very diligently at the very beginning. So I will give them a little piece of what I need them to do in terms of the grand scope, but I'm not going to give them the whole scope of the project initially when I have no track record with someone. So I'll give them a little piece of the pie at the beginning. If they prove themselves, I'll give them a little piece more. If there are any issues upfront, I just pull that crew and get a new crew immediately. So I minimize my risk of loss and I minimize my risk of loss of time. So it's a loss of time and a loss of dollar amount and honestly, time is also equitable to dollar amount too. So that way I just minimize the risks across both. James: Yep. Well, that's exactly what we do as well. I mean, we usually hire for a few new projects. We hire like two, three crews, and give them a small portion and see who's doing the best and kick out the other two and keep one and keep on giving them the work, which is a good validation of what we do too, right? Thanks for that and how do you work with the property managers onsite? Because you can't be on site, so you need a lot of communication unless the contractor is giving you the data directly to you through some kind of Excel spreadsheet or you're having meetings with them. So you're doing both. Ashley: Yes, both. So first before I got into real estate, I worked in pharmaceuticals, I worked in clinical research and development and I worked on global clinical trials. So I worked on studies all over the world and I had to leverage technology. So my entire professional career, entire working career has always been in a virtual capacity. I had become very well versed on how to work remotely and I've put into play different things to make it very advantageous for me to work remotely by leveraging technology, I've taken that same approach and applied it to multifamily. Before I got into multifamily, I built up a very successful high-end flipping business in the suburbs of Philadelphia, Pennsylvania and I did that whole business while living in Europe. So even though I lived in Europe, I created a flipping company while living back in the States, I've taken the same approach and I've done the same thing in Philadelphia suburbs now back living in the States and my properties are in Texas.  So to be honest with you, it was a lot harder when I was working in Europe, creating the flipping company that I'm faced with today. I already had all of the systems that I built up on the flipping company, and I've just been able to apply them on the multifamily side of things. Unfortunately, there's only an hour time difference as opposed to I had anywhere between a six to nine-hour difference because at one point I was living in Russia. So it's been very easy for me to make that transition. I have never had any single time where I said, oh, I wish I was like right down the street from the property, because the way in which I react and manage would not change by being on the property, you don't need to be physically at the property. Now, do I still go down to the property? Yes. I go down to the properties quarterly to check on the property. Also, I think there's much to be said about the relationship that's built between your onsite team and the ownership group and I think it's really paramount if you want to run a successful business, which multifamily is real estate and business. So I don't discount that, but I definitely think that your operations, as long as you have an excellent team, which we make sure that we always put a really great team in place that you still can be successful.  James: How do you test rent growth based on the rehab? Ashley: In terms of how much I can push the rent prior to completing the project or afterward for absorption? James: For absorption. So basically, there's a certain limit of rent growth based on the rehab that you're doing, right? So how do you test that? How much you can get based on the rehab that you're doing? Ashley: So I'm huge into understanding the market demographics. So what I do is I spend a lot of time researching market comparables. I look at if I was a prospective tenant, what properties would I look at and why, what property would attract me, would I be willing to pay an extra $10 more for property A versus property B? And what are their amenities? We live in an amenity based society right now where people love the bells and whistles that properties provide. They love having a pool, they love having laundry in their unit, they love having like in Texas carports or garages, there are certain amenities that based on the market draw people in and that changes by market. That doesn't mean just because you're in Texas everyone wants a carport, some places they don't care. They're not going to pay extra for, you really need to understand your market very thoroughly and then compete with what that market wants.  If the market is a tech-based market, maybe you should implement thermostats that are able to be controlled with your phone or laundry facilities that are able to be controlled by your phone. If you're not in a tech-based market if you're in maybe a secondary tertiary market, I'm not saying all the secondary tertiary markets, but I'm just saying, if you're not, as close to a major MSA or primary market, they might not be as well versed in technology and they might not see why they would pay extra. It's really about understanding the market, understanding what is renting in a market, what properties have high occupancy, what their rents are at, what their specials are at, what amenities they have, and then trying to compete on that level. I walk the other properties. So when I go tour the area, I always make sure to tour other properties and see what their unit interiors look like, what their exteriors look like. I want to secret shop these properties because I want to understand what a prospective tenant is looking at. I want to understand how they are greeted by their staff. I want to understand if a market is Hispanic speaking, let's say right, and they want someone to greet them in Spanish and they want Texas, TAA contract in Spanish, like a Texas Apartment Association contract in Spanish, these contracts. So they're very little things, the devil's in the details. It's really important that you understand the details of the market. And then you ensure that you are exploiting them on your property. So people want to live on your property. You're providing a better value than competing properties, and that's how he tests it. So then I can see, okay, this property, they're not doing granite counters, but they're getting a hundred dollar rent bump over what we had initially projected. So we don't need to go with granite counters, maybe our business plan had granite counters in it and we don't need to go with granite counters because I know the market will pay a hundred dollars more, even despite the fact that they have granite counters. So some people like to over-improve. It's no different in flipping people do the same thing in flipping all the time. You really need to understand not how little you can put in to get the maximum value, but in a sense, that is true. James: I mean, follow up question to what I asked just now is like, for example, let's say an ownership group, come to you to do consultation and they said, hey, we plan for 3000 per door until rehab, and we want to get $150 a rent bomb and that was all planned and now you are coming in, how do you communicate to them that that $3,000 is not going to get 150 rent bump? I mean, have you been in that kind of situation? Ashley: Yes. I have been in that situation and I've been in this situation where I've been given a business plan and I went down and did due diligence with this ownership group as a consultant and I said, hey, this is not what you want to do. You want to do X, Y, and Z and you're going to get this rent bump instead and it's a better return on your investment. So I think it's very hard to argue with numbers, right? So I understand underwriting very thoroughly and all I have to do is take their underwriting and plug in what I think the business plan should be and show them their underwriting versus mine and ultimately I think that kind of speaks volumes to speak in that language most people who are in multifamily, I would say, are very proficient with mathematics and finance and understanding underwriting, especially if they're the key principle. So if you're dealing with the key principle, the operator you really just have to speak their language and ultimately they should want the best return on their investment. So I've never had anyone disagree with the strategies I've recommended. No one has really taken it negatively at all. James:  If they already closed on the deal and you're coming now, and you think that it's not realistic Ashley: In terms of it not being realistic and squeezing the dollar out that really comes into a lot of people don't bring on a construction manager and I think that's a huge shortcoming on a team. I think that a lot of people try to shortcut that position because they think they can outsource construction management to a third-party vendor. I think third party vendors when you hire a construction manager, they're paid off of the cost of the total construction and, therefore, they are not motivated by the same reasons that your team is motivated, which is to get the highest return for your investment. So ultimately my suggestion to them is that they need to bring on a construction manager if they don't want to bring on me, which I'm not doing this to sell myself, I'm doing this to help people. I find the more people I help, it comes back to me. I never have to worry about it. So I just say to them that I recommend bringing a construction manager who is motivated by the same reasons as them. I get approached often to be compensated as a construction manager from a flat fee and my comment back to them is if I take this, then I'm a hypocrite because what I'm telling you is that you should bring someone on who is motivated by the same reasons. The only way you will find someone who's motivated by the same reasons if they have a piece of the GP equity, because then the more work they do and the more they put into it, the more they get on the back end and that's why you should have someone on the construction management side. And the reason I propose having someone on the construction management side is those are the type of people who not only can negotiate something, but I've used this example in other podcasts where I call it the porch deck scenario or whatever you want to call it. But basically what I'm saying is that you can go to a property and on the property, you have a patio and on that patio, it's a second-floor patio and when you do the due diligence, you have a contractor come in and say, all of these have to be ripped down and they have to be report and the framing has to be redone and you need new posts, a new joyce, and new concrete slap, okay. That is one way to fix it, right? But there's another way to fix it. And that contractor is not doing you just service by telling you that they're doing it because when they do their due diligence, they are not giving you advice based off of a hold period. They're not assuming that you're going to hold the property. They probably don't even know how long you intend to hold the property for whereas a member of your team is going to know, okay, we're trying to access this property in three years or exit this property in five years and really what could happen instead is you share up one of the posts or two of the posts, and you have all these cracks on the patio, but really it's a facade and it could be just resurfaced and it'll get you through maybe five to ten years, but you plan to exit the property in three years so it won't be that big of a deal and it won't be that big of a risk and you're talking the difference between maybe a 3 to $5,000 repair job versus 500.  So by having someone who not only understands the process of construction but understands the different mechanisms in which to solve problems and negotiate. That's what you're looking for in a construction manager. You're not looking for someone who's just good at managing construction and knows a very high level of construction. You're looking for someone who really knows the details of construction because that is the way they provide the most amount of value to you. I mean, there's a reason why I've been able to save hundreds of thousands of dollars on cap X budgets, hundreds of thousands and it's because I know construction like this, and I'm not just saying like, toot my own horn. I'm saying you should seek someone if you're not going to seek me, you should seek someone like me who is going to save you hundreds of thousands of dollars and get the project done faster because at the end of the day if I can hit my business plan after year one versus year three or year four, that's a different exit opportunity or a different other capital event, which is a refi. So that gets your money back to your investors. It could drastically change your returns. It gives you a better track record. I mean, ultimately that is your ACE in the hole, so to speak of executing your property. James: Got it. Yeah. Very interesting. I mean, construction manager or which whoever managing that construction budget it can give us a lot of benefit in terms of reducing costs and exiting the plan as quickly as possible, right? I mean who should be hiring a construction manager at how many units or what kind of project should they be hiring a construction manager? Ashley: I'd like to say that someone on your team should be well versed in construction. If you plan to have any property that is multiunit even on a duplex or quite small multifamily, you want to make sure that you are either connected with someone or know someone, because the example that I like to always say to anyone who has ever owned a house, if you own one house, a single-family residence, right? And you've owned it for a year; I don't know anyone who can tell me they've owned a single-family residence for a year without needing some sort of work on that house, something. So when you extrapolate that across a hundred plus units across a three to five-plus year hold, you are magnifying, the need for someone of that skill set.  So maybe on the smaller properties, it's easy to like outsource it but when you get to larger properties and especially when you're taking in investors, I think it becomes more important that you safeguard that person's investment. That's why I think it's really important. It's an added layer of protection for people, whether its college funds for their kids, retirement money, generational wealth, it doesn't matter the reason you want to protect their investment. I forgot your second part of that question. James: Well, the second part is like I'm missing that second part as well, but let's go to the next question because that was a long answer, but I have a follow up question to you. I mean, in terms of the most valuable value add, right in multifamily, I mean, you have done quite a number of construction projects on multifamily. What do you think is the most valuable value add for high ROI? Ashley: Before I got into multifamily, I used to think that the interiors were the most important part of the value add, because I thought that where someone lives, where they sleep at night, where they're raising their family I was like, okay, that makes the most amount of sense, but the more I'm in multifamily and just in real estate in general, I am more of an opposite opinion, which I think the exterior matters way more than the interior and I see that across multiple markets, I think if you were asking me for a specific market, what's the best ROI. That might be a different answer, but in terms of just a general blanket statement, I think people are really concerned of the impression that they give off. And I can tell you that I see market after market, where the exteriors are stunning and the interiors are horrific, and they have the highest occupancy and they're able to collect the highest rent bumps in the market and then alternatively, I've seen beautiful interiors, but the exteriors are really dated and those are typically the ones that are maybe a little bit more challenging, but they are definitely not competing with the other properties and I think people don't tend to look to do the exterior because the exterior costs more and it's a huge gamble and they don't see the added value but ultimately if you focus on the exterior, you impact the entire property. If you focus on the interior, you're only impacting one unit at a time. So the bump in ROI is only when you complete an individual unit whereas bringing people on the property, to begin with, can be sometimes the hardest part. That's why even on single-family, they always say the exterior matters more than the interior, getting someone to visit that property, getting someone to tour it, they want to buy it. It's all about the facade. It's all about this illusion of the lifestyle that someone's living. James: Maybe it's social proof, I guess, right? You live in a nice house too. You can show it to others, I guess, right? That's my apartment, looks really nice, but who cares about the inside, I guess, right? And I've seen a lot of times owners who have been doing this very long time. When they buy a deal, they just do exterior and they say interior somebody else can do it and they sell it quickly after they do the exterior. I mean, that's a very interesting perspective that you're able to get high occupancy. You may not get a high rent bomb, but you may get high occupancy and stable demographic if you have a nice exterior, but the rent bomb comes from the inside, I guess, right? Interiors as well so I think the valuable side is more on the exterior side because that brings in people, right?  Ashley: Absolutely.  James: Got it. So let's go to your personal side of it. I mean, as part of your venture into single-family and multifamily do you have a proud moment that you can never forget? One proud moment that is going to be living with you throughout your life. Ashley: I'm really just proud of the people I work with and I partner with. I have gone through some really challenging things with apartments and when I talk with other people, when I talk to owners and operators, who've been in multifamily for 10 plus years, they haven't even gone through half the things that I have gone through. And in the moment I'm like, Oh my God, what do I do? And a bit frustrated. But I think that experience has propelled me to the position that I'm in today and the fact that I've been through a fire, I've been through a gas leak and a line where it's a replaced an entire line, I've had to replace the entire sewer line from the building out to the street, I've been through multiple plumbing leaks, I've been through roofs coming up, I've been through incidences with the police being involved, I've been through a whole new rebuild of an apartment and a whole host of other things- depleting occupancy to 60% and then building it up to hopefully over 90, in less than a year is another thing I'm going to be really proud about and I'm just proud of the people that I work with. I'm really proud of the fact that we take a team approach, we're never pointing fingers and I also like to think of it if I had this same opportunity to mastermind with these same people, how excited I would be. So just because I'm the one who's actually living in the moment of what we're talking about in the quote-unquote mastermind, I should just think about it from a different perspective. Think about it as I'm having such a great opportunity to learn from the best people in the business and people who are really supportive. I think that opportunity is something I will never forget for the rest of my life, that I've had this amazing opportunity to connect with people and to learn from people and to help other people. It's just been something that I'm really excited about and the other thing I'm excited about is something that I do on all of my properties is I really connect with the community. I'm not into changing a property; I'm into changing a community. That is my goal on every single property that I'm a part of is to have an impact on the overall community, to whether it's by partnering with local nonprofits or school systems or helping provide food or gifts to children at holidays really it's important to me that you can be successful at business a lot of different ways, but to be successful and help someone's life is much more rewarding. So I really get a lot of joy out of creating change in a community, along with helping my investors either build or preserve their wealth for whatever reason they were doing it for. So I just really enjoy helping people. James:  Yeah, absolutely. I mean, we are all about helping people. We like to improve the community and really, we have a lot of initiatives that we do in our properties- we give school backpacks when they go back to school, we do many libraries follow communities. So we do a lot of things for our communities. I mean during COVID-19, we have a lot of people who lost their job and don't have food, we usually buy food for them, right? I mean, that's what you and I think the same, I guess, right? I mean, you can make money in many ways, right? But helping people, kind of come with you to the grave, right? So awesome, Ashley. So why don't you tell our audience about how to get hold of you and how to get in touch with you? Ashley: Absolutely. You can follow me on badashinvestor.com on the website or badashinvestor on Instagram, my website badashinvestor.com. It actually links to all of my other companies. So if you're interested in learning about multifamily, I have a link there. My multifamily company is Bar down Investments. So it's very easy. All the traffic just goes through badashinvestor.com. James: Oh, that's a nice catchy name. Awesome. Thanks for coming on the show.  Ashley: Thank you so much for having me.  James: Absolutely. Thank you. Bye.

James:  Hi, audience and listeners. This is James Kandasamy from Achieve Wealth Through Value-add Real Estate Investing Podcast. Today I have Ryan Gibson from Spartan Investment Group. It's an investment group that focuses a lot on Self-storage. They have almost 4,000 units. They have a lot of units in DFW area and a few other States. I think Ryan's going to talk about in a short while, and they recently started to [00:32unclear] in a mobile home parks, which we'll touch upon in a short while. Hey Ryan, welcome to the show. Ryan: Thanks, James, for having me. It's fun to get on your show. It's great. James: Yeah, absolutely. Absolutely. So why not you tell about yourself and your company, things that I've missed out? Ryan: Yeah, so we are based in Golden, Colorado, and we buy existing and develop self-storage properties. And we do all of our properties and projects through syndication. So we raised capital from private investors and we go out and buy storages that we can buy and get existing cashflow on. And then we can eventually either expand them or just improve operations to make additional income. We also build self-storage from the ground up and we do a little bit of RV park investing as well, but storage is the primary focus. So, you know, previously, we were land developers and built condos and flipped houses and focused on storage mostly just because of the recession resistancy, you know, during downtimes. And when we were first looking at the industry, that really is what you know, attracted us to jump into the business. Was the, you know, kind of how it performed during the last two recessions. James: Got it, got it. Yeah. I mean, I did a lot of research of different asset classes. I wrote it in my book as well. Like how many asset class, six asset class for the past 15 years and just on my own, this is not from Marcus and Millichap or this is not from CoStar.  I looked at all the asset class and was looking at all the past 15 years report, which that's a report called Integra Realty Resources. That's the report that all the commissioner pays us a report to, that's the organization. And I was looking at self-storage and multifamily and all that. I was surprised to see that self-storage did do well the past 15 years, even during the downturn. I know at the beginning, you know, 15 years back, they didn't really allocate a specific asset class for it, but they did talk about it. And in general, I didn't see any downturn, even though every other asset class goes up and down. So that's very interesting. And why do you think is that? Ryan: Because it relies on life events and life events never stop happening. No, I'm serious. You get divorced, typically, stuff goes in storage. You renovate your house, stuff goes into storage. In times of good times, stuff goes into storage and times and the bad time, stuff goes into storage. When you get downsized, when you move, when your job relocates, when there's a disruption in the market that triggers self-storage events. And added onto that, businesses use it because not everybody can park their work truck in their HOA driveway, if they're in a covenant restricted community and not everybody can have all their utilities and supplies in their house. And so, you know, simpliest way to say it, you know, for an extra 50 bucks a month, imagine having a whole other room in your house. And that's really been a big driver for demand and self-storage.  We like it because unlike other asset classes, when a customer comes in, we have a lien against all of their stuff. So if they don't pay, we can auction that off for a profit. So, you know, the revenue loss is much lower for you know, the potential when a tenant doesn't pay. With COVID and everything, there was still a rental rate, great increases. We still had high occupancy. We still can host auctions and have people move out if they don't pay. We held back on that in a couple of properties and a couple of markets, but for the most part, you know, we didn't have the government restrictions that a lot of other asset classes had on that kind of stuff. James: Got it. Well, I mean, I'm sure the audience is thinking why not James jump on self-storage. So but let me tell you why I didn't, you can always debate this. So one thing I didn't jump on self-storage at that time. I mean, of course, for me, focus is very important. I mean, every asset class has so many nuances in it. I mean, it's not easy, even though self-storage is like four walls and there's nothing in it, but there's a difficulty in finding the deal and difficulty in executing the business plan and turn around and, you know, disposition and all that. So, I mean, but I didn't do it because at that time there was not much of nonrecourse loan available, I think, unless you go really low on the leverage. So how is that right now? Ryan: You can get a non-recourse right now on ground-up construction James: On ground-up construction. Okay. Got it. What about on the... Ryan: Oh, and of course you know, that would be rare in our industry. Of course, on buying existing self-storage properties, non-recourse is widely available. James: Got it. Okay. So now it's available right now, at what leverage level? Ryan: It just depends. I think we just tied up a deal that around 70 to 75% non-recourse institutional loan. So, you know, it just depends on the lender. Depends on the deal. Depends on the play. James: Oh yeah. I had a friend who was like 85 years old. He's a broker, but he's a very healthy guy. And he said he started multifamily and moved on to storage and he owns a lot of storage unit and I was calling him and he said, maybe at that time, he said, yeah, it's hard to find non-recourse loans. The other challenge in storage is, you know, I mean, anybody can build a new self-storage development in front of your storage unit. It's very easy to build Ryan: Maybe. Yeah. So, you could say that as a general statement, that wouldn't apply everywhere. So there's a lot of moratoriums on storage. There is a lot of restrictions. Some communities don't have zoning for it. Some cities quite frankly, would not allow you to use it at all. So, you know, it just depends on where you are. Some jurisdictions it's, Oh yeah, come build it. No problem at all. So you just need, you know, it just depends on the market. You know, we have markets where there's no zoning and we could build whatever we wanted and there are markets where it's taken us 40 years to get a permit. So it really just depends. And then there are some markets where you get your permit and then they slap a moratorium on there and you can't build your storage anymore. That's happened out here in Washington and a few places.  So you really got to pay attention. And, you know, and I think really if someone was like, what's the one thing that I could take away from talking to a storage operator? It's the market study. It really comes down to: do you have the demand and is there the supply of people and demand essentially in the market to fill up your property or execute your business plan? It's huge. You know, someone might say, is storage a good play? I don't know, make up a city, Austin, Texas and I will say, well, generally, no, it's not, it's actually a terrible market, no offense, but it might be good on one side of the town and catastrophic on the other side. It's a three-mile business so it's like whatever's happening around in that immediate micro-market is really what it comes down to. So some markets are generally better, some markets are generally worse, but at the end of the day, it's right in that five, 10 minute drive time of the property. In the market study, that makes the difference. James: So, all your details that you're telling me right now, that's why I say there are so much of nuances in any asset class that outsiders may not know. I mean, it's easy to say, you know, it's easy to build but there's so much of a market research knowledge that, you know, only the operators who are specialized in it knows about it. So, and I do have a lot of respect for every asset class operators. There are definitely people who are really good at that. So let's walk through a deal in self-storage.  So not in terms of deal underwriting, but let's look at the demographic of that storage. Let's say you found land in a city. Walk us through the steps you would take to say whether this is a good site for a self-storage facility? Ryan: So a couple of things. The first thing I would look at is what's the population. So I would drop in on the facility, we have data and maps that will show us the drive times. And then based on those drive times, we'd get the population within the drive times of the property. And then we would look at saturation levels. James: And what are the drive times? Minutes? Ryan: Yeah, four minutes. I think we use eight minutes and 15 minutes. Think of it this way. If you're in an urban core, you're not going to drive 15 minutes across town, you're going to drive eight minutes so that there's relevancy to where you are in the market. But what we look at is, you know, we'll look at what are the comparable rent comps to what our subject facility is charged. So, you know, we might be getting $15 a square foot on the average but it's important to know kind of what type of facilities those are: three-story glass, Class A facilities, are they first-generation roll-up metal buildings, you know, big difference. Is it non-climate controlled is it climate controlled and in that market, is it a hot market, like a warm climate that likes self-storage to be climate controlled? Or is it a market that prefers drive-up or, you know, climate control would be overkill and people would be unwilling to pay the extra money for that.  So we look at price per square foot, you know, probably just like multifamily. And then, for Spartan, we look at the ability to add onto that property, you know, can we expand it and what is the existing dirt that's there? What is it? Is it flat gravel? Are there stormwater requirements, setbacks, easements restrictions, how usable is that land, and how much would it take to get the land pad ready? Cause we're developers. I mean, we take properties and develop them into bigger... James: What about zoning? Ryan: Zoning is important. That's kind of a little bit further down on the checklist. The top thing is demand. Cause you know, you could have, Oh, this is a zone for self-storage. And of course, everybody knew that. And then everybody built, a bunch of storage is there and there's no demand. James: But is it easy to change as zoning from, let's say in multifamily to self-storage?  Ryan: Ah, that's a loaded question.  James: Maybe not multifamily. I know residential has a lot of high priority in terms of city development. Let's say, commercial office building, commercial land to self-storage. Ryan: I mean, it depends. I know you don't like the word, it depends, but it depends. So like if you are looking in a market where, you know, we entitled the self-storage project in a city that had no zoning for storage. So everything was a conditional use permit. Everything was a public hearing. The public had come in, the city had to make a recommendation to a hearing examiner. Huge process. We've taken a residential land and rezoned it into commercial so we could build self-storage. We had to go in front of the board of county commissioners. We had to go in front of, you know, there had to be room for public comment. There was opposition, but we were successful and got the land entitled, but every jurisdiction is just a little bit different. We've bought properties that are zoned for storage and we've gotten the entitlements and they can take anywhere from two to six months to get it,  it's a building permit, you know, depending on how fast you're pushing and assuming no closures in the city and things like that. It just runs the gamut. You know, as I said, I have colleagues in the industry that have bought property, they got the entitlements. So yeah, you can build storage here. And then the city puts a moratorium on storage and now they can't build anything. So they bought this land, they got the entitlements, they've spent all this money, now they can't even build it.  James: How do you prevent that kind of thing from happening? Ryan: You don't. James: Because you've already bought the land.  Ryan: I mean, you could negotiate the contract to close upon building permits, but then you've got to find a willing seller and you know, of course, that's always a negotiation.  James: It's too messy, I guess. Ryan: But yeah, when you develop, I mean, it can be riskier and there's a potential for a bigger return but you also introduce a lot more risks. So yeah. I mean, is it easy to do? It can be, and it can be very difficult to the point of being impossible so it really just depends.  James: So when you guys raised the money from your investors, have you already done that, let's say for a [13:57unclear]  project. Have you already done that part or are you are still looking at that entitlement? Ryan: Yeah, we've really learned our lessons through the year. So you know, we bought a storage property and when the rezone of the land from, you know, so you have kind of a couple of different phases of development when you're doing like the paperwork to get it ready to go vertical. So the last thing you get is their building permit. So your building permit is pretty straight down the fairway; that is meeting building codes, getting your building permit, not a lot of risk in that - a risk, but there's not a lot of risks. But the phase just before that might be your entitlement so that you can actually do what you want to do, or might even be some type of site plan development where the city has to approve your site plan but you don't necessarily have your drawings done for the buildings they've just approved. Okay. Building here, building here, building here, this is your height. This is your step back. This is how much square footage you're going to deliver and a site plan approval. And then you have the zoning that might be before that. And it might already be zoned that that might be your first step. You know, do I meet the zoning if I don't, I might have to rezone that could take years. So, you know, we just kind of look at the projects and negotiate with the seller to buy the property. You know, when it hit a point where we're comfortable with closing on the land, and then we negotiate the purchase and sales agreement as such, and then we do the raise in accordance with how we feel our comfort level to be. Because we don't want to raise the money until we know we can do what we want to do. And you know, we've really refined our processes for that over the years to know that, Hey, we can close. And we've gotten better at negotiating. Like how can you expect me to buy this land and I don't even know I can do what I want do with it? If it's a hot market, you know, make a decision; you either want it, or you don't. If it's a property that's been sitting on the market for a year, you can come up with some pretty creative ways to keep the property tied up while you go through that process. James: So how many percents of these 4,000 units were developed versus how many were bought from....? Ryan: 25% James: 25% newly developed. Okay. Are you guys more trending towards development rather than buying? Ryan: That's a great question. I would probably say we're buying more than we are developing right now for no reason other than our development pipeline is full enough. Development is expensive and development requires a lot of cash and you don't want too many of them going on at one time. So we have two very large, about $22 million right now with development. Actually, no, we probably have about $30 million in development right now and that's about our comfort level. That's our spend for 2020 for development and we really don't want to get much past that. We also only develop in the states that we live in so Washington and Colorado. Adding onto a property is not a big deal, but we don't like to do ground-up development where we go through the whole process if we live out of state, because inevitably if you want to get things done, you gotta be down at the county, down at the city hall, down at the office, all the time. You're going down there all the time. Oh, you want this? Okay. No problem. James: Otherwise, it's going to just take forever to get a project done. Ryan: And who wants to fly an hour and a half somewhere to drop off a piece of paper and then fly back? I mean, it's just not efficient. So we just like to be in town.  I can't tell you how many times I've gone down there to, you know, shake the trees and get progress. James: Yeah. I've done a small land development beside my apartment. We were converting it. We were combining the adjacent plot of land into the apartment. And that itself was a lot of work already. But the city was supportive and it went through well by just the amount of paperwork, the amount of bureaucratic process that you have to go through. So, absolutely. What about a demographic? I mean, we talked about demographics. How do you say that this particular submarket is a good demographic for a good self-storage business? Ryan: We like at least 1% growth. We like to see trending growth. We like to see 50,000 income. We like to see saturation levels like a seven square foot per utilization for storage. James: How do you get that data? Seven square feet per utilization? Ryan: We have Radius Plus and we use a couple of different programs. Radius and there's one other program that James: So Radius is a software for self-storage investors? Ryan: Yes. James: Okay. For them to see the demand, I guess. Ryan: If you gave me an address, within 20 minutes, I could tell you what's the drive time around it. I could tell you the demographics. I could tell you the demand. I could tell you all the permits in the pipeline. So that's another thing. This is great. I can tell you everybody who's building, everybody who's applied, who's canceled, who is coming. And then of course we do our boots on the ground research where we go knock on doors and go to the city and ask them like, Oh, Hey, you know, is anybody else? Oh yeah, John, you know, he was over here last week. You know, that doesn't show up on record but the intent. And then you go talk to John and you say, Hey, you're really going to do this because we're thinking about doing it too. And we've got into situations like that and you know, either we've given up or they give up or whatever, and we just move on to a different market if the market can't supply all that additional. James: So does the self-storage purchase involves stringent requirements or stringent terms like what multi-families like day one, hard money, you know, very tight on inspection, do due diligence process? Ryan: It's extremely competitive. And it might be as competitive or more competitive as multifamily. Because when people think of storage, they're like, Oh, I've never really heard of that. I don't know what that is. And then they do multifamily and they're like multifamily is really hard. You know, there's always people doing it and Oh my God, there's so much competition. Maybe I'll go try storage because it'll be less competitive. And then they go over to storage and they're like, Oh, there's a lot of people that do this. But what the difference is there are so many multifamily properties in the United States. Self-storage, you can't even hold a candle to the wind. I mean there are 50,000 facilities total in the entire United States. So yeah, when you're talking about competition, if you're looking at a property that's a million dollars or less, no problem. You can go bid on it as a mom and pop.  When you go a million to maybe 6 million that you can reposition or that, you know, show some signs of a mom and pop operations, you're competing against the best of them. You know, the all-cash, close in 30 days, 60 days, whatever it might be. But generally what we do is we do about 10% earnest money deposit...sorry, not 10%. On a $6 million facility, we might put up anywhere from 25 to 50K. And that doesn't go hard until due diligence is completed and signed off on. James: Oh, okay. So that's not bad. It's not like day one hard money, like what's happening in multifamily, right? Ryan: No. And if we were in that space, we wouldn't play that game. So yeah, whether you think it or not, you're competing with yourself at that point. You're worried about losing that money. I mean, we have a 100% contract-to-close ratio, so everything that we've put under contract we've purchased. I mean, we had a bank pull out three days before closing, we went and raised a private loan. We did our own deal. So we've done everything to really help get the deal closed and we've got that reputation to close. And I think that people value our relationship a lot more than they do necessarily how much earnest money we put up. And we've had a broker bring us a lot of deals and just keeps bringing us deals because we make it real simple on them. You know, it's a very simple process with us. We get everything on the table. We are very transparent and as you know, in multifamily that'll go a long way. Any business, right? James: Yeah. That's true. That's true. Yeah. I mean, brokers, love people who are easy to deal with. Because you know, this is just multimillion-dollar deals and you do not want to have a tough person to work with when you're going to such a big transaction. So at a very high level, what are the value add that you usually do in self-storage? Ryan: Cameras for security, rental rate increases. James: So what, you put a camera and you get higher rental rate or it's just...? Ryan: People walk in and they want to feel secure. So our target customer is a 70-year-old woman, that's who rents our properties. So when they walk to your property, is it dark, are there cameras, is it secure? Does it feel like the fence is going to fall over? So we take the properties, we'll put in a new fence, we'll put in new cameras, we'll paint all the doors, we'll replace doors, we'll rehab the office, we'll put in notary services, we'll put in ice and vending machines.  James: Why do you need a notary service in a self-storage facility?  Ryan: Convenience. So we like to be a shop of convenience. So if somebody has got an Etsy, Amazon, they have a home-based business and they can come to our storage facility, they can drop their FedEx/UPS deliveries off at one of our properties. They can get their items notarized. They can ship, they can store. We even have a car wash at one of our properties. So, we try to be a place of convenience for people. Not that we were going to make any money on it. It's just a place where people can go and know that I rent my Uhaul truck to move my goods somewhere. At your property, I can notarize my documents, I can store my belongings, I can do a lot of different things to transact and do my business obligations. And so what we try to be kind of a helpful facility. Not all of our facility does that because not every facility even has an office. But the ones that do, you know, we sell retail. We start, you know, people pay cash, we get rid of cash payments and we go to as many automated payments as possible. We enforce the lease. You know, a lot of these facilities we take over, tenants might not even be on adequate leases. So without being on an adequate lease, you don't have an adequate lien against their belongings. You can't do an auction.  James: Have you guys done auctions? Ryan: All the time. James:  It's like Storage Wars on TV, right?  Ryan: Yeah. Yeah.  James: That really happens? Ryan: Yeah. The semantics are true or the actual process is true, but the way that it's carried out is not true. So nobody goes in person, you know, there are some old school places that still kind of do that, but we do them online. So you can go to selfstorageauctions.net, you can register. And then in your neighborhood, there could be a storage auction and you get alerted like, Oh, Hey, this unit is going up for auction. You can kind of log into your account and see, Oh, what's in there. James: All right. I can see all our audience and listeners are doing that right now. I didn't even know that. What was the website? Ryan: I think it's selfstorageauctions.net. And so as a company, what we do is we say, you know, that the storage auctions is revenue producing or whatever. They're not really revenue-producing. They're basically just to get you to get out and get a new customer in. Like we clear out the, you know, and it's the threat of losing your stuff, right? If you don't pay, you lose your stuff. James: So it's like an eviction process, I guess.  Ryan: Right.  James: Except the government can put the moratorium like what they did in multifamily right now. Ryan: The government hasn't touched us. So usually within 30 to 60 days, if you're not...so let's say, your rent is due today. If you haven't been paid in five days, you get a late fee and your unit gets locked automatically. So the gate code that lets you into our properties, the revenue management system will automatically turn the gate off.  James: Really? [26:40crosstalk]  Ryan: We over-lock your unit. You can't even get into your unit.  James: You don't pay your rent and after five days, it locks by itself? Ryan: Just like that. And then we'll over-lock you. So we'll put a red lock on your unit as well. Some of our properties will have the smart locks where it'll lock behind the door so you can't get in, you can't get into your stuff. So if you don't pay after five days, you're automatically locked out. So we liked that. We don't have to really manage that too hard. I mean, there's, you know, we have property managers are onsite staff that deals with that, but the gate code, that's automatic. And then once you pay it, we'll let you back in. But if you don't pay, you're locked out. So now you don't have access to your stuff and after 30 days we do our notices, our legal notices and then, we can take pictures of your property, do our publications and then it goes on this website and then people can buy your stuff.  And then you know, any earned income from that auction goes directly to us first, to recoup the costs of whatever the tenant owed us and then any costs of legal fees associated with it. And then anything that's left over after all of our money has been recouped, goes to the tenant, you know, cause they gotta be compensated for their stuff. So, we get paid first and then, but most importantly, we get our unit back and in multifamily or residential, they might trash the place. They're gonna do whatever they do. In storage, I mean, you can try to trash the place, but I mean, it's a box. And you know, we just sweep it out. They moved their stuff out and they're gone. And then, you know, for us, we just get our unit back and we let our customers know when they book, you know, Hey, sign up for our online auctions. You know, so they can bid on stuff and they can also know that, Hey, we do online auctions.  So a lot of places we take over, I mean, the delinquencies are a mess when we take over and that's a way to increase value. So we took over property last year, for example. And I just heard from our management that, you know, auctions were like, I mean, there were people that were 180 days delinquent and the manager just wasn't collecting on the units, they just weren't enforcing the rules. So we'll come in and we'll just follow the rules. You know, your lease says this, if you don't pay with this, you go to auction, you know, and then we make money on late fees. And some facilities that we take over don't charge late fees. I mean, if you don't pay on time, you should get charged a late fee. So there's a lot of different things we can do. You know, and plus we'll repaint, we'll redo the doors. Some doors of the old cabinet doors, you know, to open up the lock, the storage locker, we'll put the roll-up doors on them. We'll improve the lighting, we'll redo the asphalt, whatever it might be, we just get it nicer so that the customer feels safe and secure and they feel like they're getting good value for their money.  James: Got it. Got it. Got it. All right. Why don't you tell our audience how to get hold of you and your company?  Ryan: Yeah, sure. So my email is Ryan@spartan-investors.com. Our website is spartan-investors.com.  James: Awesome. Thanks for coming in and adding tons of value to our listeners and audience. Thank you.  Ryan: Yeah, you're welcome. It was nice meeting you, by the way.    

James: Hi audience and listeners this is James Kandasamy from Achieve Wealth through Value at Real Estate Investing podcast. Today I have Anton Mattli from Peak Multifamily who is one of the leading multifamily financing agencies. Anton is a CEO of a big multifamily funding. He graduated from Zurich Business School. He's from Switzerland originally, love Switzerland for the view of it and he has been advising family officers’ high net worth individuals and has done billions and billions of dollars of loans. Anton and I was discussing before this interview started saying it's not fair for lenders to declare how many billions they have done because that can be a lot of money but the experience level and the knowledge and the acumen of the industry matters a lot when you're doing financing. Hey Anton, welcome to the show. Anton: Yeah. Hi James. Thanks for having me. James: Absolutely, absolutely. Actually we are having, originally I planned to have a meeting with you to talk about what could happen similar to 2008 crisis because we have been talking about it for past few months, but now we are in the middle of corona virus recession, I would say and we are in the first or second week of this happening. So basically we don't have to predict what the recession can be, but we can predict what are the outcome from this event could be. I think a few months ago you and I have a lot of discussions about how the market would turn, how dangerous is the market right now in terms of operators or sponsors or syndicators buying things because overleveraged, overpriced and all that. What were your thoughts before this Covid19 recession came about and how was your state of mind in terms of how the economy was and how everyone was buying deals and we'll go into the details on Covid19 and what's happening now? Anton: Sure. As you write on the operator side have seen quite a number of deals that for me personally didn't make sense but I didn't know a deal was financeable from a lender perspective, from a debt service called [02:36unclear] particularly when it's an agency loan, does not necessarily mean that it's a good deal from an equity investor perspective. Even though we were able to finance some of these deals with a number of them I would not have felt comfortable to invest in those deals. There were plenty of deals that still made a lot of sense, so don't get me wrong, it's not all of them, but there were only the number of deals that in my view, didn't make sense over the last two years, only have increased dramatically compared to before. At the same time we have also arranged bridge loans and as you probably know, bridge lenders, they're extremely active. They have taken a major activity uptake over the last few years.  So there was a lot of competition in the bridge lending space, which meant that you were easily able to get 80% of cost for your C class property and sometimes in really tough locations and bridge loans make perfect sense when it's a true value-add deal. When it's not really a value add and it's mostly to do with soft rehab, but you feel that you get the agency loans when you need it and you go with a bridge loan, then I think it was much more problematic. So with that obviously we have seen quite a number of these bridge loans and deals that I believe particularly in the current environment will likely struggle. Because this bridge lenders they are not like the agencies and that came down now with the forbearance offer. Don't expect that from bridge lenders. James: Yeah, I know. It's crazy. Now I feel so happy. I'm all in [04:41unclear] for the past one and a half year I've moved to [04:45unclear]. So are you saying on the bridge side there is no forbearance or what's happening on the bridge side with the Covid19 crisis right now? Anton: Well as a general rule, bridge lenders have never been; some of them, the good bridge lenders they have always been willing to make adjustments when they see that a borrower is behind of the original plan, the ones that are really in there as a partner, they have been willing to cooperate and I think those lenders, and they are not really that many among all the bridge lenders that are out there, they will continue during these times to help a borrower to get through that time. But the majority of bridge lenders are not maybe staying, very often it's not their own money so they essentially have orders behind that that they buy into and they have kind of an obligation to fulfil that loan agreement to the letter and their investors demand that they fulfil their obligation as per the loan agreements.  So some of them are very aggressive just by nature and the others have to force from the investors they have the loan funded from do actually go into enforcement or you can call it loss mitigation as the nice term sounds with these loans very forcefully and very quickly.  So now maybe the [06:25unclear] is a little bit of a shine of positive light here that they may say, look, yes, we could foreclose right now, but maybe it's not a good time to do the foreclosure now anyhow so let's just go through another couple of months and then see if we want to foreclose. But it's still in my view that just kicked the can down the road for a very brief period of time until they go all way in with their loss mitigation process.  James: But I think it only depends on what's happening in April, right? I mean, we have another 10 more days to go [07:03unclear]. But in general, I am already seeing even in my properties, they are residents who are declaring that they can't pay and this $3000 a door family units. I'm not sure, as you mentioned they're going to use it for rent or is it one time? I'm not sure for how many months is that? But the thing is the delinquency will be higher. So I believe the sponsors or syndicators who are halfway to value add and right now they are not done with the value add. So their value add might be struggling. If it goes below certain level, they're going to be stuck because it's going to be negative and as you mentioned, bridge lenders are or private people. They have the obligation to whoever gave them the money.  Anton: That's right. Yeah. So if you have already a property that is, let's say a third empty because you planned all your rehab, even if you do rehab, a lot of tenants that you now can attract and so you would have to attract them with very aggressive terms. If you find them and then you still know that at that level that you need to be based on your performance, which the lender wants to essentially base their decision on to release more rehab money for future doors. So then essentially that rehab money sits with the bridge lender, you have not performed as per the loan agreements. So if you want to go ahead further, you need to inject more equity. James: Yeah. It's basically... Anton: It's kind of a vicious cycle. James: Yeah, it's a downward spiral because now I believe on the bridge sites, a lot of loan are based on LTV, loan to value and they're going to assume the values are going to drop. Because now your rent is going to drop [08:54unclear]. Anton: Yeah. It's a combination of loan to value, but as you go through the draw process, it's more driven by some amount of collections that you need to achieve and why and then the dead deals that you need to achieve with that. So it's a little bit of a different measuring sticks. But at the end of the day, it doesn't really matter what you use, it's maybe hard to achieve these points that you need to meet at some point in the timeline, then you property is not performing and so the reality is all these bridge loans they typically have very aggressive timelines to start with. So if you fall behind just by a couple of months, it can become very problematic. When it says after six months we should achieve this and you are essentially behind by two or three months and it continues to go in the same direction as you fall behind once you are at the enrolment then, and so long. So I would say the ones that have enough cash on their own that they can inject as needed, they will be fine. So the ones that suffer the most are the sponsors that just kind of get by with their own personal financials and they don't have the ability to inject a couple of hundred thousand as needed to get the ball rolling at the property. James: Yeah. But it is tricky, right? Right now, I mean most sponsors can use this Covid19 and burn the equity and get out or they can keep on injecting and try to; because no one knows what's going to happen in the next six months. So it's a gamble. A lot of sponsors or syndicators need to take whoever on the bridge loan if they need to continue injecting more money or give it back to the bridge lender. But right now they have a valid reason. They can say the whole world is collapsing. I'm getting out now.  Anton: Yeah. If you're a syndicator. So you essentially can ask your investors, look, we are in really deep trouble. Do we want to inject more money? Generally I would say what typically should happen is that you do a capital call and if no one wants to do it, then you would have to lend yourself or you come up with the equity yourself. But in most instances it's not equity, but it's more a loan by the partners. But again, that all requires that the channel partners actually have the cash available if we lend to the property and a lot of them I've seen out there they don't have that capacity. So they'll be very interesting. Obviously that always assumes that things really get bad but we don't know yet. Maybe it's a miracle and all that stimulus money somehow entices these tenants to pay the rent. Obviously I hope for you and for everyone else who operates properties that that's going to happen. But based on history I don't think that that is really going to happen. I think last night I do have Brian on and he was referring to the situation during the hurricanes in Houston and that's a perfect example I would say but you cannot compare with 2008, I think we all agree with that, but certainly what happened with Harvey and the flooding is probably much better comparison. Because everything had to be shut down. It was very localized, but it had to be shut down. As Brian correctly mentioned like the properties across the board suffered with delinquencies. So I would say we will likely see that we just do not know yet how big the percentages by asset class and by location. I think it will depend a lot on locations obviously places like the Northeast, the greater New York City areas only suffer more. Same thing in Washington State, in Texas we would have to see how bad it is. Obviously we have also the additional element of oil and gas that has laid a massive negative role here for us in Texas, particularly for the property owners in Houston and we don't even have to talk about Midland and Odessa. But even in Houston it's only something that will in addition to Covid19 will have a negative impact on these properties. So it will be very fascinating to see how the performance looks like in the next a few months. James: Yeah, I'll get a good indication in the next 10 days. But we are already getting our property managers to start probing with tenants and who's having trouble and all that. So we are compiling that, trying to understand and trying to work with them. Some kind of payment plans. That's what Texas apartment association or we call it TAA has given us guidance. But I think a lot of it depends on which sub market you are in. I mean, I know sometimes we use and it depends on and then people think, okay, my property's good but there's a lot more details to it. So whether you have a base manufacturing in that area or not, or whether you are CTO or whenever you invest it's a lot of its service industry or not a service industry is dead right now. Las Vegas, we used to be the best place to invest before two weeks ago, but up until now, the whole Las Vegas is closed down. I'm sure you people don't have money there because they are both more leisure business and gambling, hotel business. So basically there's no money, so within two weeks, things change now. So compared to places where there's a lot of manufacturing happening, this diversity of employment, you can still reduce the rent slightly and then you still get people who can pay because they are still being employed. Anton: That's right. Yeah. Yeah. And if you're right next to an Amazon logistics center, you're probably good. James: Correct. Correct. Correct. Absolutely. Absolutely. I am still getting rent right now, up to now for the past two, three days, I'm still getting rents for April, so that's a good sign but ours is all automated. It's all virtual. So probably they already set up, the ACH is all coming online, but we'll know more in the next 5 to 10 days, where it's very interesting times. But as I say, I mean last time, everybody was doing very well because the market was doing very well. Right now no sub market location becomes very important and the good thing is whoever has this agency load, I think they have many ways to weather this; either take the forbearance or just ride it through because your loan is there. But guys with short term loan, this is very, very tricky right now and you talked about the bridge loans and all that. Do you see the same issue with loans on credit union, the banks, small banks and all that? Do you think they still have issues similar to bridge loan guys? Anton: No. I mean, what we have seen was actually so far has been very positive where particularly these small credit unions and banks have been very cooperative in finding solutions better rates for barons. And that seen before it started. Why it's almost like, okay, we understand, we are reaching a now a tough period of time and that you're willing to either modify it along to stretch it out to lower the right. So they feel very at least a good number of them that we have heard back from, from various borrowers have had a very good experience there. James: Got it, got it. So are they being managed by a FHK well? The small banks and credit unions? Anton: No, it's all balance sheet based. So these are really the easy loans to long straddle which unite the loans and then secured the heist then too, they are in the same boat as I would say all the other loans that are out there. I'm talking the ones that typically it's more the small loans somewhere in the $300,000 to maybe 2 million, 3 million range. So not really the large lumps, they are some exceptions there but they are loans that are not a significant burden on their balance sheets and it's much better for them to work out these existing lumps that they have on the balance sheet that are on the basis of still that we sound them just going through a hard time but they are willing to work it out with the borrowers. So that's really for the ones that are on balance sheets and the ones that really have had success, the borrowers or the ones that have already very good established relationships with these banks. So they know the owners or the branch manager and that brings us back to that relationship. Now is more important than ever. Whether you do a new loan now or whether you already have an existing loan, the way you will have managed your relationships, whether it's your tenants, whether it's your property management company, whether it's your lender. Now that all comes back to you but if you treated them badly, they will remember if he treated them well, they are more willing to work with you. James: Yeah. And just for the audience, I mean, if you guys read my book, Passive Investing in Commercial Real Estate, I did very, very specifically mentioned that bridge loans may not be the best loan during the market peak. I'm not sure how many people read my book, but I did mention it there and that was written like two years ago. As I say, I stopped doing it just for my peace of mind and I want to make sure that I protect my investors’ money as much as possible than doing these flips at the end of the cycle and giving them; taking  large risk and trying to do a flip at the end. I rather go on a much better, safer bet with the better finance strategy. So when was this triggered to you? I know we are talking about; I think we are like two weeks into this crisis right now. But this happens so quickly. When did you feel like, okay, we are in trouble right now because you and I spoke and we had like 12 different reasons why the market can go bad. We have Brexit, I don't know if we have 12 things. I can't remember what the exact things. We had so many things we laid out what could go wrong, but I believe this is completely out of the norm. A medical health issue, a virus infection that's causing everybody to stay at home. I mean, is that right? When did you start to think that, oh my God, this could be the next recession? Anton: Yeah, I mean, we have seen already pressure in the system for a while, where we have seen that already [21:06unclear] was an issue and in the banking system we have seen it already last fall and we have seen it in January and February. Just because of the all whole world view that we have reached a point where everyone is getting more concerned. But it was still possible with the fad essentially doing all these liquidity measures in the past, as soon as there was the slightest view that there might be a little bit of a slowdown. So they were able to essentially put as much liquidity into the market as they needed to. Now, I would say the current situation and where we are now on the lending side really has started just about two weeks ago. It's not that it really built up. Obviously everyone was watching what was happening in China and then slowly in Europe. And as it was building up in Europe, suddenly the clouds came out. But you may recall at that point the treasuries dropped significantly. The fed already dropped the rates once and that actually resulted in some of the best time to borrow and to refinance. So that we had maybe a period of two weeks, maybe three weeks. But I think it was just around two weeks. Then we were able to get essentially 10 year and 12 year loans at close to 3%. I know someone that was not arranged through us, but I know someone who bought the rate that was below 3%, I think it was 2.94 or something like that and that lasted really just for a brief period of time until two weeks ago and everyone realized we have a problem and that problem really just was shown again in the market that there was no liquidity. And the fed will stay in coming out with their one and a half trillion injection where they said we are going to buy as much treasuries as we need and we are going to buy commercial papers and that still didn't do anything to the market. And then so the spreads started to do tighten on the agency loans at that point and then we were up into the mid two, three, 3% in Olin rates. And then this weekend and the lamps, as you may recall last weekend, that we, the fed announced that they are now buying also agency NBS for as much as it is needed. So now obviously the hope was there that they would provide the contents to the market that was so much liquidity that they are willing to put into the market that no investor in these NBS should be concerned and that that would stabilize at least the multifamily market. Always leave a half note to say that they will buy all the commercial mortgage backed securities like hospitality or retail based NDS. But it still did not help when it came to the agency side. And I would say that was probably the biggest surprise so then that deal ended on Sunday and then on Monday the agency spreads actually went up by 75 to 100 basis points. So, even though they announced it that they will buy us many agency mortgage backed securities as the market needs to get the liquidity in the market, obviously they didn't believe it and spreads moved up even further and we all still in the same situation today.  So if you wanted to get into new agency loan today with the new Fannie loan, ten year Fannie loan, your rate will be at four and a half percent for a large Fannie loan that passed some form of, as we call it, permission-based, like with affordability elements to it. If there was no affordability element to it, you're probably closer to 5%; and that's coming up from just three weeks ago when we were at the low threes. That's all grim because the markets, there are no buyers out there, so no one is able to price right now. Obviously the hope that that will be sorted out and I think as market participants see how the impact on multifamily is going to be in April or May it will calm down because then they understand how big that impact is and are able to determine where the priority should be, but until then, it's essentially there is an old one that is buying. That puts Fannie and Freddie in a very difficult position because obviously they are obligated to buy that loan from a lender that originates that loan and then they need to securitize it and sell it. They do not want to keep it on their book.  Even if they keep it on their book, they still have half the credit risk transfer buyers that they are going to so they're good. Fannie score has always been that they will find and Freddie too that they find other risk participants and in order to find them, the loans need to be priced so that these risks, participants are willing to buy whatever share of risks that they are participating in and right now, no one is willing to take that risk. James: I know it is crazy. I mean where we are looking at to do deals or to refinance should wait a few more weeks or because, I don't know, a few more weeks or months or what do you [27:43unclear]? Anton: Yes. I think for refi is in my view is easier. Why? Because you are not really under immediate pressure unless you're really in a very difficult financial situation. But then it's probably the last thing to consider refinancing now. I would wait on the refinancing side until the market has calmed down. Why would you want to now deal with an interest rate that is four and a half to 5% when the 10 year treasury holders are under 1%. If the market calms down, there is a reasonable expectation that the spread narrows again and that you're back down. Maybe not to the three and a half, but maybe in 4% or four and a quarter. It is such an uncertain time, but in my view it just doesn't make sense to campaign and apply for refinancing. Also the other point is since your future collections are still taken into consideration. If you apply today, a lender may underwrite your T12 up to March and everything looks great and as April and May and June come in and if the drop is pretty significant, that will impact your loan proceeds at that point too. So not only have you applied for a loan potentially at a very high rate but now with the loan proceeds are getting customers. There is so much uncertainty that in my view just doesn't make sense right at this point unless it's an absolute emergency to do so. When it comes to acquisitions I mean it needs to be a blazing deal in my view to even consider an acquisition. Because you have the same situation. How you negotiate with a seller? What clauses can you put into a contract in terms of occupancy and in terms of collections that a seller would feel comfortable with, but you are also comfortable with? Because that's really what you should do, in my view, if you go under a new contract, you should say that the occupants who need to be at certain level and the collections need to be at a certain level. And if not, then it's going to be through a re-trade.  If you don't have that, then I think the risk is just too high. And on the other side with the loan, it's essentially the same thing. So yes, you can apply for that loan, but unless you have these clauses in that PSA, you'll run the risk that you go in for a higher price. You should reprice the seller, but you cannot. But the loan amount is still being cut. So my recommendation is if you find that deal the first step is we need to get these clauses with the seller and the PSA. And if you have these clauses the way out, then you need to decide whether it's worthwhile to spend, let's say 20,000 in loan application fees and all that that you may lose. But that's ultimately the session that depends on that you feel that deal is so good. So I wouldn't say don't do it, but have these clauses in that PSA that allows you to re-trade with the seller that essentially then reflects the lower loan proceeds that you would likely get the occupancy and collection slow. James: Got it. Got it. Got it. Yeah, and also, I think it's a very tricky situation. You want to raise money but I'm sure if you find a deal, which is screaming good and you fear an experienced operator, you probably can raise the money. But it's just so uncertain right now and I don't know whether you probably already know this, I heard Fannie Mae right now is asking everyone to put like 12 months principle and taxes and insurance into escrow, I guess, right? Anton: Yes. Up to 18 month. It depends on the tier, if you're on tier two; it's up to 18 months. It's massive. At least I say it's cap that 10% of the loan amount, it's a massive amount. So obviously what does that mean? Now you need to raise more money. So you've likely also, I would say there haven't really lowered the LTV or increased that service, Coleridge recline that may come too but I would say it's more on a deal by deal basis anyhow now but let's assumes they are still in place that you still get can get these maximum leverage and the same service coverage. Just the fact that you have full these escrow that you need to build is a on top of the higher interest rate deal, which means that you need to get the lower price from the seller, there is just no way around. James: Yeah. Yeah. I think Fannie is just saying we are actually out of the market, but if you can meet this, we maybe come back. Let me just basically break it down. Anton: Yes, that's right. Yes. Yes. So actually that's always the conventional Freddie side and Fannie on the Freddie SPL side. I mean there has nothing being communicated officially, but there are solely some rumours that Freddie may stop any new origination for a certain period of time just to see their things all settled. So it will be again, the next few weeks will be extremely fascinating to watch how the market participants will from tenants to operators to lenders respond and right now we just do not know, but it's already extremely difficult even to get an agency loan into place that makes sense. But also would say it's really dangerous if someone still seek quotes from brokers and lenders that come in at the three and a half percent, because I guess they often threaten you or just to get the borrowers into the door knowing that it will be re-traded. That is another thing that borrowers really need to be acutely aware of. Do not trust any quote until you have it validated and validated, ask the broker, ask the lender multiple times, is that still valid?  Again, what we said just a couple of days ago is already outdated. It's important to be really on top of it and know what the current situation looks like. So maybe just to go quickly back to the forbearance discussion. Obviously it's a very attractive program. It's good news when you have agency loans, but I still would caution to use that forbearance and just would, because you can. Both Fannie and Freddie obviously they have implemented it.  It came down from FHA, so it was not really Fannie and Freddie that wanted to do it, but it's essentially a government driven decision that it's necessary and I think it's the right thing to do and it's a very good backstop for all the operators. However, if you operate the property in a good fashion or take it if you have owned the property already for a year or two years you should have enough operating reserves to get through a month or two without having already to suffer so much with let's say a 20% or even 30% collection loss that we needed to go back to the lender and ask for forbearance.  Now could you do it? I would say you probably could, but generally speaking I would say you really should only go back when you see that you are getting close to the 1.01105 of that service cover and essentially make a case, look, it's all bad at my property. I have a collection drop for 40% or whatever it is, I need your help. But if let's say the drop is 10% or even 15%, even 20% and you go right now to Fannie and Freddie they may agree to it, but I think it will be a negative Mark with them down the road when you go for a new loan that they feel that you really haven't attempted to work out the solution on your own first before you lend to them. So I will just to be a little bit careful there in how quickly you want to pull that trigger.  James: Yeah. Yeah. And also forbearance is not free. You have to make sure you don't even meet the person for 90 days or whatever time that you're getting that forbearance.  Anton: Yeah. That's actually an interesting part. So with Fanny, it's actually not just the 90 days. If you have that forbearance, so you're allowed essentially you have that 90 days and then you can pay it back over a stretch off twelve months without any late fees and interest charge on it. Now, Fannie has communicated that you are not allowed to extend the 90 days of forbearance, which is obvious, but also that you're not allowed to be late until you bring the loan current, which includes that 12 month of repayment period if you choose to scratch it out for the 12 months. Now, Freddy so far only refer to the 90 days. I suspect that they just forgot to mention that by the way, you need to bring it current. So I have seen it on Facebook and in some other places where people say, well, Freddy is easier because you only need to have 90 days. The eviction is halted and then you can do it again.  I suspect Freddy will probably also come out and announce that you need to bring the loan current and only then are you allowed to run your evictions again. So in other words if you want to or if you need to go back to normal that your property allows to do action, the property manager, you essentially do pay after these 90 days, then if you do not and you want to stretch out for an another three month or all the way up to 12 months, you essentially have potentially 15 months at your property. They cannot do any of evictions at all.  James: How do they track whether you're doing evictions or not?  Anton: I don't know how they... James: There's no way to? Anton: Well always a way that they can, I'm pretty sure that they all have access to the local court system and validate that you have not filed any evictions.  James: Got it. Great. Yeah, but somehow it may trigger bad [39:49unclear] if you go and not follow the agreement [39:53unclear]? Anton: That's a good question.  James: You can only say you violated our agreement, so... Anton: Maybe it's not triggering the bad [40:02unclear] but don't go back to Fannie or Freddie if you didn't follow these rules to the dot.  James: Okay. Got it. Got it. So it's just so crazy. So I mean are you already seeing that a sponsors and syndicators are getting bridge letters for people on bridge? I mean it's still very early right now to say?  Anton: No, we haven't seen anything, what we have seen is that the number of bridge lenders walked away from their loans at the last moment, I mean there are several bridge loans that we know of. Lucky for us it was none that we were arranging, but I know of a number of a sponsors that had bridge loan commitments in place that are supposed to close within a week to two weeks and the bridge lender said sorry we cannot fund. So these are situations that have happened already. It's more that lenders essentially have pulled out, but we haven't heard anything yet on existing loans that are in place by then. It's really too early. We need to see how April comes in and I would say probably takes until May until things get really bad, if a property has a massive loss of collections.  James: Based on your experience, because you have gone through 2008 and you have been in the industry for a very long time. Let's say right now Covid19 is gone within one month, so everybody start going to work, what will the impact be as we move forward to the financial market? Because that's a big shock happened in the financial market. There are a lot of people, who didn't have income for one or two months, is there a downward spiral or are we a good back again, the sun shines and everything goes back to normal. Where do you see it? What would happen? Anton: I wish I had a crystal ball, but I think the harder we land over the next few months. I think the quicker the upturn is going to be, but I still feel that they probably will take 18 months to two years until we are truly stabilized. I know some feel that everything will jump back up again right afterwards. I think the damage to consumer confidence will still be a lingering around for quite some time. Yes, there is that pent up demand for some items, but places will still suffer particularly the small businesses, some of them really are suffering tremendously and some of them are not able to come back and also I think a lot of the service employees, restaurants will be very slow in hiring. It also the reason to keep wages lower so it's the impact I think on the GDP or we probably go through obviously little jump up very quickly, again, form from a deep drop, but this year it definitely will be negative in my view but Goldman Sachs talks about roughly 3.8% for the year after a 25% drop. I think Morgan Stanley in talks about a 30% drop, who knows? But I think when you look back on 2008, also when you look back into the savings and loan crisis I haven't been around for the actual savings and loan crisis in the past but I was when I first started out in New York in banking, I was involved with a lot of the workouts of loans that went through in the early nineties that were caused during the savings and loan crisis in the 80's. So it still took several years to get out of that. And as we have seen in 2008 it took a long time to get back running. Yes, it was a very different situation then, but here the shock, in my view, is so much faster and also it's at the global level, the global economy is suffering so much and a lot of the US companies are dependent on global rate too. So everything just will take much longer to recover. That's my personal view and again, I think it probably will take two years, 18 months to two years just to fully stabilize.  James: Got it. Got it. So yeah, that's a lot of discussion about, H=hey, this is going to be a sharp V. So we go down very quickly we're going to come back and everything is normal. Even the government saying our economy's going to be roaring back again and everybody go back, it's normal again, but what you're saying is in terms of recovery, a lot of us businesses, global trade, yes, impacted, maybe the hiring would be slowed down because the profit has been lost I guess. They want to be careful, I guess. But for example, let's say a restaurant has been closed down for two months, so the third month they open again, back to business again. So do you think that will be slower in terms of hiring as well? I mean, because they're back in business. I mean they probably have two months of rent that they didn't pay.  Anton: So it won't be very interesting to see how the human behavior is going to be at that point. So particularly the first six months to nine months. So you have seen that if all the governors at federal level to say now we all clear, obviously the virus is still lingering. So I think people will still practice a little bit more of that social distancing. Everyone is a little bit more careful. Personally I feel air travel will probably not pick up nearly as fast. Why? Because everyone feels why should I want to be in that airplane with other people next to me, I cannot really walk away. Also I think launch events will have a much harder time to come back. It's really hard to tell but I just feel based on all the downturns we have gone through. Very often people say, well it comes back fast and I think the initial recovery undoubtedly will be extremely strong. I think there is no doubt about that because we are essentially shut down to a large extent so it has to come back drastically. But really come back to the confidence level, where we were before I think it will take much longer.  James: So you're talking about consumer confidence?  Anton: Yes, yes and business confidence.  James: Got it, got it, got it. Yeah, I mean I read somewhere that consumer confidence is the most important indicator for any economy or any crash or any recovery. If that comes up, everything comes up; if that goes down, everything goes down no matter what you do that consumer confidence in terms of probably spending money and doing events and taking flights and so. So for example, let's look at class A, B and C renter’s base plus B and C is a lot of service industry. People are on pay check, pay check. I don't know I'm just thinking this quickly, they may be okay. So about third month, fourth month we are back in business. I mean, unless they are wage is lower than say impacted them but if their wage is the same they probably have that wage coming back to them again. Maybe they are scared. Maybe they want to go to a lower rental amount. Maybe, I do not know. But I think still the impact to the flights and to the big companies it's going to be more because now this is a global trade. So could that be the A-class renters are more impacted compared to B and C in the long run? I'm not sure. I'm just thinking this quickly.  It depends on how fast it comes back and what is the wage they are getting and how confident they are buying.   Anton: It think when you look at most people that live in any class properties they have really decent jobs and always leave some of these jobs are now being lost or at least they are in a furlough, so they are not getting paid right now. So they can collect their unemployment; and I would say if they cannot afford it then the A class, they may move down to the B class. So that's where I would see people that struggle in these shops do not get back that I need to move down into B. I just do not see that someone who is in an A class will be willing to go into a C class property. So I would say they would probably rather move somewhere else than into a C class property. I feel kind of the same for the people that live in B class properties that moving into a C class property is for them in my view, is also kind of the last resort. Now the big question is how the residential market will evolve. We haven't even talked about that, will there be a massive dropping in prices in the short term, because no one now in some markets can even see properties.  James: Are they getting forbearance as well, the single family houses?  Anton: I think when you are a residential and not active at all in in the single family space but my understanding is if it's your own primary residence, you get forbearance you can apply for forbearance too but not for less than property. But I think I'm more wondering how it would work for someone who is in the B class property would they have an opportunity potentially then buy a property and if still not able to buy your single family home. Whether they will be able to rent a single family home instead. I just do not feel, and again, some people say that doing the last downturn, a lot of people move down from A to B and from B to C, it's hard to track. I do know that really believe anyone has been able to properly track that, but based, at least on what I have seen during that time, there was not really much movement. There was a lot of moves from A to B because of that pricing point, but it's still a decent quality property. When you are used to an A class property, but they have not really seen much coming from a B class to a C class. But again, I'm not an expert in this light there may be economist out there that have studied this.  I just feel that these movements are really happening. Now when it comes to the service employees I agree with you. Once they start back up, they need to employees right away. There is no doubt about that and that thing that's really in my view is kind of that positive flight for C class properties at the end of the tunnel. Once the shutdown is over and restaurants are able to operate again and stores are able to operate and all the other service type related business including hotels they have a job again.  James: Provided they don't have a negative wage growth, I guess which could happen as well.  Businesses may be covering this, but this is, I mean, within two miles, if I'm an operator, if I'm a restaurant, I will hire back the same people. I mean I have two options, either pay them the same amount before they leave or I pay them slightly lower. I just don't hire, that's the option [53:36unclear].  Anton: So there the question again is how many restaurants are able to reopen. So we just don't know if it's just for another month or two month, I would say the majority are able to cover the loss and go back to normal afterwards or go back to business. But a lot of them I think will without some form of a bailout, wherever that comes from will probably not be able to reopen. So that's fair. That question comes in. It's there all sort of pressure, at least in the short term on wages that whoever is in the service business now does not have as much choices as they've had pre-Covid19.  James: What about the construction loan? What's happening in that space? I mean people with construction that is ongoing right now. From what I understand, the construction loan is also a loan where if the value of the building that you're constructing drops, they may ask whoever the developer is to put in more money right now, could they be in trouble as well?  Anton: Yeah. They haven't really seen that yet. It probably depends on what phase you're in, in that construction loan. If you're in the early phases or just started the earth movements or started with going vertical and you're still in year last to start your lease up, I don't really see that that impacts it that much. If you're already doing your lease up period span, I think you need to go back to your lender and find out how you can extend that loan. You'll see, usually you may have to do three years, two and a half to three years of the construction before you go into perm and you may not need another six month to complete that lease up, but if you're early or right in doing the construction I would say it shouldn't be such a big issue because when you consider the leverage for most of these loans is relatively low anyhow. Value at your 60, 65 of cost, maybe 60, 65 to value if it's a more an established sponsor. So the leverage is not really in most senses, it's not that high to start with. So I don't think that these lenders will be holding back. I'm more concerned about, again, the harm on the construction lenders that are out there too.  James: [56:31unclear] Anton: Yes. So where you are in your eight, nine, 10% construction loans, so these players I'm more concerned about. James: Is there a chance for the construction loan guys to say, okay, I'm not funding anymore because they go on draws based on the progress of construction. Is there a chance they said, okay, we are done. We are no more funding you; we are out, even though they have signed the commitment because they probably don't have the money. I mean it’s all come from some pool of money?  Anton: Yeah. I would say you have that risk. The law to the player I would say the less likely it is. I would say if you have a strong bank, a bank will continue to do lends, if you have a life insurance company that has provided that, they're likely will continue to lend and have the access to the funds but if it's a private lender then that would be probably more concerned that they are able to continue to fund the draws.  James: Yeah. That's interesting because I think in 2008 that's what happened. A lot of construction projects. Everything stopped because everybody ran out of money.  Anton: I mean, it could happen, we do not know but at least so far we haven't seen it where they have come to a complete halt. And again, the private space I do not know, but suddenly the institutional space hasn't come to complete halt yet.  James: Got it. So the other thing that I want to just give some education to the listeners is how a loan can be made from non-recourse to recourse. And I know since we talk offline in the past crash or you had that one of the function that you are familiar with or you are doing is like lenders are trying to figure out how to make deals from non-recourse to recourse. What are the potential ways that that can happen? I mean, we know we talk about this [58:48unclear] agency loans.  Anton: So obviously I think most of your lessons that for now have that [58:54unclear] which essentially means that if you cause fraud or gross negligence, then that loan can turn into a personal recourse and one of the examples for this kind of obvious when it comes to the property operations, when it comes to gross negligence can be that you are not maintaining the insurance. That can be, even if you forget about it, that's gross negligence. So even if it's unintentional, it's still gross negligence. If you do not verify that the insurance meets all the agency requirements, particularly when you might change the insurance from one to the other and the somehow you feel, oh, I get a better rate and then suddenly you get that better premium, but you may not meet all the requirements of the loan insurance requirements. So these are kind of the obvious things like this now will all be [1:00:10unclear]. James: But usually the agency have the specialized insurance department to verify all insurance requirements met whenever we change the insurance provider?  Anton: Well, yes they should. It's essentially the service server is supposed to track this but it's still up to you to verify that you would actually need these requirements. You cannot say well the service from that lender didn't save me anything so I'm fine, that's not the way it works. It's really important that with an insurance change, always leave if you'll get the approval from the insurance person that the lender or whoever they are hiring and gives the green light and it's a different story, but that's not as you are in a loan, that's not necessarily happening, I'm not talking about when you apply for the loan, but more down the road when you make changes to that insurance.  James: Yeah. Yeah. I mean, my experience has been like they are very, I mean, even I've made changes to my insurance and the insurance department is so particularly they go into every line item, they make sure we are reading it. So there could be some of those lenders, which is not doing a detailed job, I guess.  Anton: Yes, that's why and it really varies from lender to lender how detailed they are now. What a lot of people do not realize and that's something that we have to discussed offline is that  your representation and your order, guarantor representations when you apply for that loan are also part of that bad boy car found. So what that means is that if you or any of your guarantors make a representation when you apply for that loan, that can ruled as inaccurate. And I'm not talking about, oh, I put in a value for a property that I felt was a million and it's only 900,000 or 800,000. I'm talking about a gross misrepresentation of your financial strength, of your experience but particularly your financial strength that can be triggering that bad boy carve out and we have seen that in the past.  You need to understand why particularly when it comes to Fannie, what a lot of people do not know is that each Fannie lender has a loss share agreement with Fannie. So they take a loss. If Fannie takes a loss, they take a loss too. And though they have that first loss arrangement. So they have an interest of loss mitigation. And obviously if the property somehow will not pay back the loan plus all the accrued charges they need to look through all the solutions. Then one of the items is that they will have a in house or external lawyers look at all the representations that were made pre-application to approve that loan or aside from all the documentation that was submitted throughout the loan being in place.  So it's very important that you trust your partners that they are or not lying. We have seen it a lot, a lot of people claim that they are accredited investors and they are participating in deals that are a 506 deals and because we don't need to verify that you are an accredited investor with these 506 deal offerings but then they suddenly then pop up and do their own or attempt to do their own syndication and then you suddenly realize, well you are not really an accredited investor.  James: But that's not really a loan thing, that's more of a system guideline?  Anton: No, that's not a loan thing. I completely agree. But that is just an example of another thing to read, most people they are so desperate to get into deals, particularly on the GP side, so many times they are stretching the truth or into deals that they are sometimes stretching the truth of what the true situation. So it's really important to ensure that all the partners and guarantors that you have on board, that they are not grossly misrepresenting their situations. Whether it's experience, financial strength, that everything on the REO schedule is really true. No one is really verifying this.  James: Oh yeah, no one read that in detail.  Anton: No one is looking at tax returns. So there is solely a risk that someone can inflate their balance sheet and their experience tremendously without being verified.  James: Got it. Alright Anton, why don't you let our audience and listeners know how to get hold of you?  Anton: Yeah, sure. So my email address is anattli@peakmff.com and that's probably the easiest to reach May also then when you're on Facebook or LinkedIn, just type in my name and then I will pop up. It's a pretty unusual name, so you should find me there and I would say that's the easiest to reach me.  James: Awesome. Thanks for coming on the show. I think this is a really, really timely show in terms of discussing the loans and all that. So sometimes when nothing happens, when we talk about how risky bridge loans are, nobody really cares. No passive way to look at what a sponsor is taking loan; they just look at the numbers and did that. But keep in mind, I did write it in my book like two years ago. So if you have read it, I mean, there's a lot of resources out there as well. You would have been warned about it,  there is nothing wrong is just market risk, sometimes you make a lot of money doing bridge loans as well, but it just depends on the market cycle and the sponsor and the syndicator, how strong they are as well. I mean, there's a lot of sponsor who's going to write this bridge lending uncertainty as well, fine. But just for anybody to be aware of, I guess. Thank you very much Anton. Anton: Yep. Thank you James. 

Community Group Discussion Questions For the week of February 23, 2020       Read James 5:7-20 Say a prayer that God would open your heart to hear His voice from the Epistle of James      Discussion Questions: 1. On a first reading of the passage, what are you curious about? What strikes you as important?  2. In what ways does James draw together some of the themes of the Epistle in these last few paragraphs?  3. James tells us to be patient in suffering and to not destroy each other in the midst of such suffering. But he does not leave us alone. How do verses 13-20 help us in the midst of suffering?  4. What is your experience of praying for the sick? Have you ever received healing?  5. What do you think the connection is between praying for the sick and the forgiveness of sins? Where else in the scripture is this connection alluded to?  6. What is you biggest take-away from our time in the book of James? How did God change you through this series?  7. What do you think the book of James means for the way the church deals with:  The poor Partiality  Suffering?  The use of our tongues 

Zach sits down with two-time Paralympian James Roberts to continue and expand upon our discussion centered around being disabled while other. He talks about the role that sports and physical activity played in helping him become more of himself and transition to navigating the professional world. He also emphasizes the importance of being authentic to yourself and so much more. Connect with James on LinkedIn, Twitter, Instagram and Facebook, and visit his website!James has a podcast - click here to check it out! You can also subscribe to his YouTube!Stop by Living-Corporate.com!TRANSCRIPTZach: What's up, y'all? It's Zach with Living Corporate, and oh my goodness. So first of all let me shout out our listeners, okay? So shout out to my listeners in the States and my listeners--our listeners, right? 'Cause we actually have some international reach. You know, we got folks in Nigeria, stand up. We got some folks in the UK. Stand up. We have folks just all over that actually listen to Living Corporate, so I'm really excited about that, and I bring this up now, I bring up our reach, I bring up our international listeners, because of our guest today. Today we have with us James Roberts. So James Roberts is a public speaker, a motivator, a consultant, but many of the folks who know him know him by his athletic feats as he is a Paralympian who participated as recently in the 2012 Olympics. So we have him with us today, and we're really excited that he's on the show. What's up, James? How are you doing?James: I'm very well, Zach. How are you?Zach: Man, I'm doing really well. So first of all, again, excited we're able to finally link up. We've been trying to do this for, like, a year, you know what I'm saying? We finally got it done. Objective completed.James: Well, I think some things are worth waiting for.Zach: Come on, now. [both laugh] No, I 100% agree with you, and, you know, I'm really excited to have on the show. You know, we don't--we talk about non-white experiences on Living Corporate, right? And we talk about that from whatever it may be. So if you're non-white and first-generation, if you're non-white and LGBTQ, if you're non-white and non-binary. Like, we talk about all types of non-majority experiences, and we've only really to date had one really talk about being non-white and disabled, and so I'm really just thankful that we were able to make the time for you to be on the show today. So for those of us who don't know you, right, can you tell us a little bit about yourself?James: Well, I'll start right at the beginning, Zach. My upbringing is even probably slightly different to even where I live now, being in the UK, because both of my parents were in the Armed Forces. My father was in the U.S. Air Force and my mother worked for NATO, which is the North Atlantic Treaty Organization. So I have a slightly different upbringing to probably, well, people the same age as me growing up in the UK. I probably have a better understanding--obviously I had diversity impact my young childhood. I probably have a better, I would put it, understanding, a better tolerance of other people, because having grown up with a multitude of nationalities--I wouldn't even want to try and count how many that was--and I think that had a bearing on be it my young childhood from obviously--well, with the disability, but I think when you're as close to the fire--and I'll use that analogy as it being your life, you're living it day in day out--you never see things as black and white. You probably see it like a multitude of grays. Well, it's not adverse for me, and this probably comes back to be it how my parents and probably to a certain extent my family orientation, it's very much old school. It's "You're gonna sink or swim," and it's going back to probably the business sense of it. That's probably a good one because it puts you in a good place and doesn't--you don't really see things as a predicament because it's like, "Well, I've got two options. I can either learn or adapt, or I sink and I quote-unquote drown." So I think it's a good analogy to use moving forward.Zach: No, absolutely. So let's talk a little bit about your disability if you don't mind. Can you talk about your disability and what it is specifically?James: Absolutely. I come at it from two perspectives now because I like to keep it simple for people to be able to visualize, and obviously people can relate to what is an impairment of an imputation because it's become more and more commonplace in the media, in newspapers, social media, et cetera, where as mine's a little bit more complex than that. And honestly I've got to think off the top of my head in terms of what bones I'm missing. Mine is obviously more complicated than that, but off the top of my head--let's see if I can get it right now. I'm missing my femur, [which is] the top portion of the leg, and I have a small tibia and fibula, which would be--well, normally in your ankle, and that is attached to my hip. So mine's is kind of like--how would I describe it? Probably, like, a leg in reverse. I've got half of it, but it would be the half that you wouldn't expect.Zach: And that's what prompted the amputation, correct?James: No, no. It's more of a--you could say it's a birth defect, but we don't actually know what's the root cause of it, but I coin it as an amputation because it's, be it from the periphery when I have an artificial leg on or a fake leg, however you want to put it, people can relate to that because it's similar to what an amputee would have. So without having to--well, I would say it's a lazy way of describing it, but most people can relate to it. "Well, I know what an amputation visually looks like. I know what looks like in the flesh," and you don't really have to think, where as if I go into explaining my disability, okay, for the people outside of the medical field or should I say within the medical field, they would understand every technical term that's coming out of my mouth, so I probably play it to the layman's terms to be a little bit easier for the general populace.Zach: So can we talk a little bit about--so it's interesting. I've had discussions with people who sometimes they'll frame physical disabilities or just disabilities of any kind as something to conquer and get over as opposed to a part of who you are, right? Can you talk a little bit on how you think about your disability as it comes to you working, as it comes to you just navigating life? Like, do you see it as something to conquer, or do you see it as just part of who you are, as James?James: I think that's a very good question, Zach, because I could come at it from two perspectives now. And you're probably surprised there. I can come from either side of the argument. I think when I have put out content, it's been misconstrued at times how I've put it, be it--what did I put more recently? You could say the disability was adverse. I had a chip on my shoulder and an ax to grind, and I play around with that at times, and I see the funny side of it. But when I use that, and I'll probably go back to a story more specifically. It would probably be when I was a teenager. That I was very--probably trying to, to a certain extent, find myself. I wasn't probably on reflection of--and I think about it at this point in my life, I wasn't content with me as being James. I saw the disability as a hindrance, problemsome... just a pain in the ass, really, because I wanted to be nothing but an able-bodied individual. I wanted nothing but not having this disability, but I think where I kind of had a light-bulb moment, and this kind of continues on from the story, is I was very--how would I put this?--not comfortable with probably my identity. I would want to hide it away. I would wear jeans, trousers, at any moment I could, even when it was hot and I was sweating, and I wouldn't be comfortable outside of a sporting arena, where as on the flip side of that--and it still perplexes me to this day--I would be content to be shown ever-present in a sporting field, but I think that comes down to--it probably helps being a coach because I can identify--it's probably I was content and confident in that arena, but I was still trying to find myself on every aspect of society, be it school, and the outside perspective of what--sport in a sense is a bubble, but I think as I've got older and started probably not to care what people thought of me because at the end of the day you're gonna get people that loathe you and like you just as much, but the people that's gonna like you is for you to be as authentic and genuine that you can be. So once I kind of probably put myself in that position to be vulnerable and only to a certain extent story-tell, I've started to kind of give people the true identity of who I am. I'm not trying to mask the facts of who I am. I'm not trying to be a different person for a different environment, be it I'm a certain way for my friends and family, I'm a different person for obviously teammates, and I'm a different person in my business. I try to encapsulate being, well, one person for all three. It's difficult, but I think I'm getting there. So that question that you asked, Zach, am I comfortable with being James? I think it's taken time to be able to be at one and be at peace with who I am, and this probably comes back to a good question that was asked--not just me, but a different array of people within an amputee group--it kind of asked, "Well, what are you most proudest [of], or what are you most positive about what's happened to you having acquired the amputation or being born with one?" And I put, "Well, mine is slightly different, but if it hadn't been for the disability," well, obviously as we're talking now, this would probably not have happened. My sporting career, for all sakes and purposes, probably wouldn't have happened if I'm honest. Okay, it was an aspiration when I was a young kid to want to be an athlete, but once I got to be a teenager it's like you wanting to either do soccer or play basketball is very unrealistic with having a disability. What path can you take to do--to kind of go down another route and probably progress that way? So from a sense of a Paralympic sport, disability sport, it kind of fell in my lap from that perspective. So to be able to live to no uncertain terms a lifelong dream that I had when I was younger was probably a godsend, I would put it as.Zach: No, I hear you. So can we talk a little bit more about that and talk about the role that, like, sports and physical activity played to help you become more of yourself and how that then transitioned to help you navigate the professional world?James: Absolutely. Coming down to it, I think there is a--very much from what I've learned from sport, and I could probably take away from it [as] my younger self as well is that--and what's transpired into business is--obviously that's what I alluded to with the adversity--is looking at things from a different perspective. Using one--well, a quote that's not really a quote, but somebody was saying to me not too long ago from the RNLI in the UK, [which] I'll say is the Coast Guard, they kind of asked me, "What do you do to survive in terms of if you've got yourself in a spot of bother or in deep, deep water? Cold water?" And I'd seen the advertisement for it, so I knew exactly what they were talking about. So you look to obviously stop and try and relax, where as I think you probably could take a precedent from that--and going back to what I was talking about of me being a young child and my family throwing me into the deep end, obviously that's me, metaphorically speaking, doing exactly that. It's relaxing. It's taking everything on board and not succumbing to problems, difficulties, and to a certain extent becoming overwhelmed and kind of floundering. You start to panic kind of mentally because "I've never been put in this situation. What do I do? Do I kind of push against the current?" And obviously if you start doing that you're gonna be in--you're gonna be in a spot of bother. You're gonna start panicking even more. You need to just relax and wait for things to come. Okay, from a business perspective, patience isn't always a virtue. It's very difficult, because I think we've got into a mentality in the present world now where "I'm not willing to wait for the result. I want it right now," because we're in a society that is fast-moving. "If I don't get it now, I'm gonna be behind my friend down the street, my good friends," and you feel that you're on the back foot from the off, where as I think if you have that mentality of be consistent and look at it from that perspective, as you're in it for the long run as opposed to the sprint and you start to leverage things that way, slowly but surely I think you're gonna be in a better position to be I would call it--not success, because I was talking to Shawn Harper the other day, and he was kind of telling me, "Well, do you want to be successful or do you want to win?" And I think this is where sporting people can find a commonality with winning, because obviously it's black and white. You're either on one side of the coin or you're not. You either win or you lose, where as I think success is to a certain extent manipulated. It's very much what society is dictating is success. Well, what is reality television telling you what it looks like? Be it it's very gimmicky, it's very misrepresented, where as I think if you look at it from the previous, with winning, it's all about you have a common goal. And if I use, like, a business analogy to make the point more clear-cut. Business is talked about as teamwork. Well, that's complete garbage, because why would you want to help somebody succeed in a company where your objective isn't the same? Where as I think you look at it as a more sports-oriented goal [and] everybody's pushing in the same direction. There you go. Now you have actual teamwork because everybody is striving to go in the same direction, be it if we use American football, everybody's on the same page. They're all in it for be it the Super Bowl, the National Championship, where as if you kind of single out individuals in an actual organization, "and I want you to do this, this, this," it's gonna become very cutthroat. It's like, "Well, I don't have the organization's best intentions at heart. I want to do it for me." You get very fixated on yourself as opposed to the success of the organization.Zach: So can we talk a little bit about challenges in being disabled while also being black? Like, you know, have you seen any challenges that you've had to face that are unique to your identity compared to your white counterparts?James: I have to really, really think hard about this one. Not really, but then that's probably glossing over the fact that there is gonna be discrimination, prejudice anyway. I don't have the problem of be it other black individuals within even the UK, be it if they're from African descent, they're gonna be stigmatized from the very get-go by just submitting a CV to an organization because their name per se doesn't fit. I have very much--if you don't see my color of my skin, just seeing some ink on a paper, you would assume that I'm possibly white. So that notion of stigmatization, prejudice, discrimination due to race, I don't think it's possibly being put at my feet. The disability on the other hand? Possibly, but then that's me being speculative and reading between the lines with be it not getting--well, being passed over for job interviews and whatnot, and that's the reason why I went into self-employment. It's like, "Well, if I"m not gonna be able to join the rat race and have a 9-5 job, why don't I go and work for myself?" And it is a brutal reality as that's probably down to the fact that I'm disabled, but a lot of the jobs have been very much sport-related. I'm very much around development of sport. Well, who better than somebody who's been there and done it to be put in that role? So I think it's--without speaking to those individuals it's quite difficult. You can learn how to operate a spreadsheet, you know, making numbers tick over to conform to whatever you want to show to hierarchy that obviously a program is working. We can learn that. I'm young enough to be able to put those steps into practice. But the other thing you can't learn. It's very much, well, God-given. It's something I had to work at and put countless hours in to be successful. So to be passed over for that basis, it's very frustrating because you're thinking, "Well, that's knowledge that I think--" This is probably to a certain extent where I make my point very poignant--I think, coming back to Shawn Harper again, it's where I think the Western world views--well, I'll use the analogy of old people or the elderly and the older population as once they hit retirement age they're kind of worthless, where as from an argument's sake you could probably put that to minorities, people with disabilities, because they fall on the outliers of what is the majority. "Well, you're not productive enough. You're not worthy." It's kind of to a certain extent worthless to the general populace, where as what he said with the people in being the Far East and the Eastern philosophy, they look at it as reproduction. It's their way of giving knowledge back and kind of being, you know, those people who have got wisdom, where as I'm thinking, coming back to my point with me talking about being passed over for jobs because of disability, that's missing a trick I think from that basis of that's me being able to give the athletes that are willing to be able to put in the work and want to get to the next level, be it from a sporting perspective, where they can learn from be it mistakes I've done. "Well, this is what I did. This is what you shouldn't do. You don't need to have those pitfalls and actually have that adversity. You can learn from my mistakes and get that wisdom and kind of piggyback on my attributes and my accomplishments and be able to be a better athlete, where as I think--where I'm gonna come from with that [is] I think maybe organizations gloss over the fact of that.Zach: No, absolutely. So look, this has been a great conversation, and I appreciate you taking the time to, like, hang out with us today. If you had any advice for those who are disabled, what advice would that be?James: I would say be authentic to yourself, because I think be it--in the United States it'd probably be even more problematic--you don't conform to any I'm gonna say quote-unquote box. You're kind of--you're being told you must conform and be to one box, but I think you need to be authentic to yourself, and once you're comfortable with that, I think you're obviously in a better place to be able to respect yourself. And it comes back to--and I think anybody can take heedings from this as well... you can't please everybody. The only person really you need to be pleasing is yourself.Zach: Man, I 100% agree with you. Thank y'all so much. This has been Zach on the Living Corporate podcast. You've been listening to James Roberts, Paralympian, public speaker, coach, and listen, appreciate y'all. Please continue to listen to Living Corporate. We're on every streaming platform. Follow us at Living Corporate @LivingCorp_Pod, Instagram @LivingCorporate. You can just email us at livingcorporatepodcast@gmail.com. If you have any questions you'd like to reach out to the show, hit us up right there or check out the website at living-corporate.com, please say the dash. Again, this has been Zach. Peace.

James: Hey, audience. This is James Kandasamy. Welcome to Achieve Wealth through Value Add Real Estate Investing Podcast. Today, I have Anna Kelley from Central Pennsylvania, who owns around 175 units, around $16 million in worth until now. And you know, I should have invested passively in 900 units. And she's also under contract on around 200 units right now. Hey, Anna, welcome to the show. Anna: Thank you so much for having me. Good to see you, James. James: Good to see you too. And, I mean, for those who do not know, we also have a YouTube channel that shows all our interviews. And you can catch up with us on iTunes or Stitcher or YouTube or Spotify so go and do that. I'm actually in one of my property here in San Antonio so trying to do it from my office. And Anna, are you in your office or where are you right now? Anna: I'm in my home. I'm not actually in my office. James: Yes. Good. Good, we work from home, I guess, right. Anna: Yes. James: So Anna, why don't you tell our audience about yourself? Anna: Sure. So I started out in real estate about 20 years ago, just kind of dabbling in real estate. And I started out doing some property flips and some single-family rentals. And then I slowly started moving up to small multi-unit properties, like four-unit apartment buildings, 10 unit apartment buildings. And I recently last May retired from my full-time career, I worked for AIG for 20 years. And I really built my real estate portfolio up on the side, part-time for all of those years. So busy mom, have four children. And I just went full time. And now I'm focused on and have been focusing on for a while much larger apartment building assets. James: Got it. So let's go back to the beginning. I mean, you work at AIG, which is a big insurance firm. And can you just quickly tell us what was your role? Anna: Sure. So at AIG, I had various different roles. I did internal management, consulting, product development, and then I moved into a role that was very compliance heavy. We worked with private placement hedge funds wrapped in an insurance product. So we worked on SEC audits and filings, reviews of PBMs and hedge funds and things of that nature. James: Got it, so it looks like you have some PPM level syndication experience, even at your workplace, I guess, is that right? Anna: Definitely, we worked with alternative investments for about 17 of the 20 years that I worked there. James: So you work there for 20 years and when did you start to real estate venture? Anna: Why I'd say, you know, I dabbled, I bought some, you know, singles and I bought a flip. And then 12 years ago, when I moved from Texas to Central Pennsylvania to start my husband's chiropractic business, we were looking for properties to lease for his office space. And we found that it was very difficult to do that. But they had a lot of buildings that came with tenants, you know. Older buildings on Main Street that had been converted to businesses on the first floor, most of them had residential rental space on the top floors. And so we bought a building and inherited tenants. We had three tenants with his commercial space. James: Okay. Anna: And then that kind of threw me into the idea of having tenants and having a little extra cash to cover the mortgage. And then at that same time, James, we sold a house in Houston that we lived in, liquidated everything, we had to come here and start a business. And so I knew it wasn't very wise for me to buy another home right away. And AIG let me work from home on a very temporary trial basis to see how it worked out. So I bought a four-unit apartment building for us to live in. So we downsize significantly and house hacked, basically, to make sure that our business expenses, you know, for the space and our housing expenses were covered if I happen to lose my job, you know, 12 years ago when we started out. So that got me into starting to think about and invest in residential real estate. James: Got it. So you basically, you did not like had an ah-ah moment, I need to go tomorrow and buy real estate. You were actually thrown into it? Anna: Well, I'll say this before I went to work for AIG. I was in private banking, I was a Financial Relationship Manager for Bank of America. And so I handled the top 10% of the wealth in our bank, both small businesses and individuals. And what I found is that many of them owned real estate and had accumulated their wealth in real estate or were already investing in real estate. So in my young 20s, I was very interested in real estate thought that it was something lucrative that one day I'd like to own, but I really didn't start thinking too much about it until I had my first child in 2003. And all the flip houses shows, you know, we're coming on and I thought, oh, I can flip a couple of houses and be home with my child. And so I dabbled in flipping before the rental real estate. But my move here is what kind of gave me the impetus to think about rentals more quickly. James: Got it. So, I mean, I never had a woman guest until now. So you are the first one. And I'm very -- Anna: Oh, thank you. James: We have a lot of listeners that are listening everywhere and I'm sure a lot of them are women. So I'm trying to get from a woman’s perspective, on how could they start like what GF started, right? I mean, your husband is working and you are working too. Like, I would say what do you think could be the secret formula, or they're just the formula on how can any woman start while they are in your own position? Anna: Sure, you know, there are different ways to starting, a lot of it James truly does depend on the personality of the person, your family dynamic. You know, how much support you have for watching your children? What other income sources you have, you know, when you're starting out? And how much basically time and money that you have available to get started? So, you know, people that have very, very limited time might have the significant cash flow or they might, their spouse might make enough money that they could really get started more passively. And that's where maybe they want to start investing in other apartments syndications or getting invested as a passive partner maybe joint venturing with someone that has experienced you know, buying and managing either a single or a small multi or a larger and then just investing with money. And learning how to review the financials and review the operations each month and each quarter. Just to kind of get yourself familiar with what it's like to own and manage an asset might be a good way to get started. For someone like me, that doesn't have any cash and really wants to get invested by investing time, you have a lot more opportunity to really educate yourself through reading books and through podcasts. And going to meetup groups to learn what it takes to ask actively, evaluate deals, find them and hire people to update them and improve the values and put a renter in or you can start learning the skills yourself. You know, my husband and I when we started out, he did a lot of the maintenance and I painted every unit. And I called flooring contractors and you know, designed kitchens and help paint cabinets. I mean, we did everything actively because we started out, we had liquidated all of our, you know assets and started out with quite a bit of debt to start a business and we're running that. So we really didn't have a lot of money. So we invest at the time. So there are many ways to get started. But I'd say definitely align yourself with other people that already know what they're doing, attend some meetup groups, listen to podcasts. And then just decide whether you want to be active or passive for your first one or two until you kind of learn what you like, what your personality works well with and kind of what works within your family dynamic. James: Got it. So who convinced who between you and your husband? Did he convince you to, hey let's go and do, spend time and rehab this real estate or did you convince him or how did you? I'm trying to understand how did the discussion happen? Because a lot of people are struggling, I mean could be struggling, right? How do I convince my spouse especially from a woman to the husband side? Usually, the husband can convince the wife, right? But you are the one who's active right now real estate, how did that work out? Anna: Yes. So it's one of those things when we talk about the personality of the individual. When you're married, there are two people involved in your decisions. And my husband and I, from the beginning, have always looked at our finances and our lives as a partnership. But we kind of has our roles in reverse. I mean, he's a doctor, he's a chiropractor, he went to school for a long time. He's very smart. But he's very hands-on and a people person, he doesn't like the finances, he's not financially minded. He's not the kind that wants to be an entrepreneur and grow a big business, like he's content, just having a small practice, and letting me handle all of the finances. So because I had a background in finance and understanding investments, I pretty much have always handled our investments. And when we decided for him to start the business, I kind of took over the operations and learned how to, you know, run a chiropractic business and set up insurance and all that kind of stuff while he was the doctor and saw the patients. And so when it came to real estate, I said, listen, we're starting out with a lot of debt after paying off all of the school that it's just not financially wise for us to do anything other than buying something so we have tenants helping to pay the rent. So it was easy initially to get Vincent to buy his practice and our building, just to be financially wise and not going into more debt. But growing that beyond that was definitely me as the driver, he was busy with this practice. He did not like to do maintenance, but he learned to do it and liked the fact that once we did rehab units, they were worth a lot more and we had a lot more cash and could keep buying them. But I've been told multiple times, slow down, pull off the brakes, we have enough units, why do you want to keep growing? And I am like because I'm passionate about it. And I'm passionate about the wealth that it can create. So I've been kind of the driver. And he's been very supportive and very hands-on for the 70 units that we self manage in our area. But definitely likes that I'm now buying much larger assets where I'm asset managing and he's not involved day to day in the management and maintenance of the properties. James: He must be very happy now. Anna: Very happy, yes. James: Yes, we started with 45 units. And my wife used to be sitting there whenever we were missing our property manager in the beginning, I mean, she was sitting there doing things and I didn't do maintenance. But, I used to be with her and trying to buy this and buy that and make sure you know the contractors are lined up. And it's a lot of work, but it involves teamwork. And yes, we are two different people, we have to learn how to work with each other. Anna: For sure. James: That's good. And so you started with 70 units, with the chiropractic real estate, right? I mean, is it like a commercial center? Anna: It is. It's a commercial mixed-use building. So there's a commercial space that his business lease's from my business. And it had three tenants, three, you know, residential renters and four garages to that property. James: Got it. So you got some kind of tax benefit, I guess because the [inaudible11:44] is leasing from the owner itself, I guess, right? Anna: Yes. James: So get some write off there, good. And how did you, I mean, so after that and then what was the next acquisition that you did? Anna: So James, as many people were affected by the 2008-2009 economic crash. Imagine working for AIG at the time and AIG, you know, coming in and having one of the largest insurance liabilities of any other provider in the country between mortgage insurance and credit default swaps. And I worked for them. So I had already, I had been working for them for a year on a work from home basis. And we thought we were going to be laid off, my stock went from 1-o-1 a share to 43 cents a share. My retirement funds were almost just destroyed. They were destroyed. I lost about two thirds within a week. And I decided, oh man, I'm going to lose my job. My husband has a brand new business with hundreds of thousands of dollars in startup debt and I'm the sole income. So what are we going to do? And the only thing I could think to do right away was to borrow from my 401k, about $50,000 that I had left that I could borrow and buy another four-unit because I thought at least if I buy another 4 unit, I'll have another, you know, $1200 to $1500 dollars a month of cash coming in. And that's in the asset, that is solid and stable that I won't lose any more in the stock market, no matter what happens. So that was my next acquisition. Again, it wasn't really thinking about oh, this isn't a phenomenal investment. It was, what can we do to survive? And I know that cash flow is a good thing. And that residential real estate will not go down in value significantly compared to the stock market. James: Got it. So after that four-unit, what did you buy the next one? Anna: Another four units. James: Okay, and when did you start with the 70 units where you self manage? Anna: Okay, so what we did, we self-managed, again, initially just out of necessity, not having a lot of extra cash, thinking our finances were not super stable because I was the sole breadwinner at that point. My husband's income was nice, you know in six figures gross, but it was covering expenses. And so we just we're continuing to find ways that we could cash flow and make the most cash and be willing to put in the time to do it ourselves and learn at the time. And so we kept buying a couple of single-family homes that we bought as foreclosures, renovated them and instead of selling them as a flip, we did a cash-out refi, we kept them as rentals, we took the proceeds to buy another and another. And then we did the same thing with small four-unit apartment buildings. So four-unit apartment buildings were kind of my niche and the sweet spot for several years chains. Because there were in a smaller area, I'd say maybe a tertiary market right outside of Hershey. And there's not a lot of apartment complex supply, no big complexes, but there's a lot of demand for housing. And so most of the rental real estate here were four-unit apartment buildings that had been built that way or converted, you know, couple decades ago. And there weren't a lot of big buyers buying those four-unit building. So they'd sit for a while. So I kind of I saw a niche where I could buy properties without having a lot of competition. And I could basically treat them like a larger commercial asset, but on a, you know, on a four-unit scale instead of a five or six-unit scale. And so I kind of honed my skill in updating those units, managing those units, raising the values, cashing out repeating. And then decided, okay, now it's time, once I built up, you know, a strong six-figure passive, you know, net rental real estate portfolio, then I decided, now I can retire and I can scale and start going after much larger assets. And so that's what I did. James: Okay, got it. So when was the first time that you acquired a much larger than four-unit property? Which year was that? Anna: Okay, so in 2018, I had basically created a five-year plan James in 2013, that by 2018, I wanted a $5 million portfolio, you know, about $150,000, at least in passive income, and then I would retire and start going for a bigger one. So I'm my goal in four years in 2017. And then just started kind of working my way into, you know, saving six months of salary and expenses for all my buildings and starting to look for larger deals. So I found the first larger deal for me, it was a 73 unit apartment building, right outside of Hershey, Pennsylvania, that I found off the market and I [inaudible16:20] on that with two other owners. That was a six and a half million dollar purchase 73 unit. And we closed on that in 2018. James: Got it. So how did you manage your time? I mean, your husband is working, and you are doing this fourplex, fourplex, fourplex and your four kids. And you give some tips for people who are in a similar situation and how can they manage and be as successful as you are? Anna: You know, I think really the key to my success has just been resilience and grit and determination. I worked truly, most people say oh, rental real estates passive. But I like to say and I totally believe James, that passive income is built on the blood, sweat and tears of active income. And it takes years of active, sometimes to build up the financial wherewithal that you can truly become totally passive. So between my husband's business and my work, and my rental real estate, I truly worked 70 to 80 hours a week over the last 10 years, in order to be able to get to where I am. My four children are all involved in sports, pretty competitive sports. So we have sports every morning, we have sports after school every day. And most days, it's seven days a week, you know, multiple tournaments on a Saturday and on a Sunday. So every waking moment when the kids went to school before I started work, I did real estate. My lunch breaks, I did real estate. My vacation days, five out of six weeks a year, I did real estate, you know, evenings between when the kids got home and I worked, it was real estate. And after nine when the kids were in bed, I often stayed up till midnight to get things done. So it was very time-consuming. But I'm very, very grateful that I stuck with it and did it. And it was just a matter of utilizing every day, I didn't watch TV, we didn't have cable, I didn't go do a lot of recreational things, I really, you know, not nose to the grindstone just focused on building the portfolio so that I could retire and spend more time with my kids. James: Yes, it's really hard work, I can really appreciate what you've gone through. Because I was working and my wife was like running around in the beginning. I mean, I only stopped working after we had like, 340 units. Now we have like, 1300, it's a lot of work, right. So based on what you're saying, it can be done. It's just like not, please don't give excuses, right? Anna: Exactly. I'm here to tell you, you know, if I can do it, working full time, running my husband's business, four kids and doing it, you know, anybody can do it if you just have grit and determination. So you make the time for what's important to you. And I knew that it was important to me to be able to work myself out of my job. And especially with AIG, you know, a couple of years ago, they said, we really are going to sell our unit, and we need to all be prepared to figure something else out in terms of career. So that kind of drove me to have executed my plan in a certain period of time. And now you know, that I'm retired, I'm still very, very busy. But I have the freedom to control my time, you know, to do what I enjoy and go after larger deals where I'm not having to be quite so involved in the day to day. James: Yes Can you define what is grit and determination in your mind? Anna: Sure, so grit is the ability to stick with something, no matter what comes, no matter what obstacles without basically, you know, melting into a wallflower. And just keep ongoing. And, you know, there's been a lot of studies done on what makes people successful. And you know, some kids were tracked from high school, through college, through their professional lives and they were really surprised that the top students like the valedictorian, the [inaudible20:04] rarely ended up actually being the most successful people in their professional lives. It was usually the people that went through a lot of hardships, and just kept going and push through and got creative and figured a way through and around every obstacle and became stronger and more confident, and determined. And those are the people that ended up the most successful. So I just I think it's an extra drive and extra determination and a willingness to keep pushing through no matter what and to not give up on your goals. James: Yes, so look, I mean, I always tell my listeners and whoever talked to me that it's always, you know, whether you want to be successful, or whether you like to be successful, whether you required to be successful so, I mean, if you have been this successful, you must have that, I really need, I really required to be successful. I mean, is that true statement that you came to that way? Anna: I think so. I grew up with very, in very humble means. And I always knew that I wanted to create a different type of lifestyle and a different financial future for my kids and I was just determined to do it. So I've always been driven, I've always taken on challenges. You know, my first job at Bank of America, I won the number one ranked Financial Relationship Manager in Texas and Employee of the Year awards at multiple jobs, my first couple of years. Because I've always had, that I'm going to be the best, I'm going to succeed, I'm going to achieve and do whatever it takes attitude. So I think part of that was ingrained in me from a young age. James: Yes, I think it's important, I mean, just the personality itself and the drive to be successful and the requirement; I mean, because your husband and your AIG was going downhill and you must be successful otherwise, your family, it may not be in a good place, in terms of financial. So that's really good. So describe to me, what was your toughest day in a one day when you have like four kids and all going to all these classes and schools and all that? Have any time where you think that, oh, my God, this is just too much for me as a mom and as a real estate sponsor? And can you describe that feeling and experience? Anna: Yes, I just actually, you know, Facebook is kind of a mixed bag of whether you like it, or whether you don't. But I like the Facebook memories that kind of pop up and remind you of something. And I had something pop up this last week, about a three day in the life of a real estate investor that works full time and has four kids. And I looked back and thought, well, I don't know how I survived it. But back in February of 2018, I believe it was, I had a call that there was mould in the basement and that they were smelling mould. So they opened it up and there was a lot, well, you know, I'm thinking it's probably like a dripping water heater or something we walked in and there was literally like six inches of goopy mould hanging from every rafter of every space in the basement of a three-unit apartment building with the ground floor, a dirt floor. And when we opened it up, I mean, it was just really bad. And what had happened was a hot water heater, pressure relief valve had failed in the basement, nobody seemed to notice nobody called us. The person in hindsight said, you know, I thought my hot water pressure was kind of low and not as hot. And I should have called you well, within about a six week period, six to eight weeks, somewhere in there, our entire three in an apartment building was just covered in mould. And inside all the units, I had to meet the tenants, it was snowing and really bad weather. And I had to call, you know, restoration companies and re-home all my tenants and get all of this stuff out of the property. Right after that, we had another property where a roof blew off in another big storm. And we're handling the kids and multiple other small things were going wrong, we had a couple of frozen pipes because it was a winter that the ground was just frozen for so many days. So we're dealing with frozen pipes, re-homing tenants, working full time, insurance, the tenants all wanted to sue me because there was mould and their kids were sick and going to the hospital. And my kids were just young and very needy. And it was like a two or three week period where I thought I'm done, I can't do this anymore. It's not worth it. It's too hard. And I kind of had a little pity party for a few weeks and said, okay, I need to take a break. I'm not buying anything else. And I took about a three-month break where I didn't buy anything else. And I just kind of took care of those issues. And then, you know, said I need some breather time, we went to the beach. And after I got back from the beach, I'm like, okay, I'm refreshed. It's behind us now that I've handled that period can do anything and just kept going. James: It's crazy the amount of pressure and tense moment that you have during that kind of things with family and issues with the deal. So I want to ask one last question before we go into the details of some of the deals that you have done here. So why do you do what you do? I mean, you don't have to do this right now. Right? Anna: So a couple of things, James, I'm really passionate about real estate, I'm really passionate about wealth building. And there is nothing like real estate to build wealth. You know, I started out teaching clients about mutual funds and stocks and bonds and how they can make you know, eight to 10% returns on their money if you time everything right. And realize that it takes money to be invested in the stock market. It's volatile and it's risky. And really, people can go from nothing to multi-millionaire in a couple of years of investing in real estate if they do it the right way. And so I've just seen the real power in that. You know we went from literally negative $750,000 net worth when we started my husband's business to a several million dollar net worth and just a few years of really aggressively buying rental real estate. And so it changes lives. And I want people to know, especially women, that that you can change your financial family trajectory, not just for today, but for future generations. And also we're providing really good housing to people. So you know, I grew up in government housing, my mom was a single mom, she was a property manager for a government housing apartment complex. And I know what it's like to grow up in an apartment and we didn't have the best amenities. You know, all my friends were wealthy, and I lived in a little apartment complex. And I've worked with inner-city kids who live literally in shacks with dirt floors in the middle of Houston, Texas. And to be able to empower people and say, your life can be different. And I can show you the financial tools to take better steps and to know better so that you can create generational wealth for yourself. And it just empowers me, it drives me to keep doing it, not just for my own wealth accumulation, but to help other people to learn that they can do the same. James: Yes, that's very interesting. I mean, what you say this, anybody can do this, right? And I know a lot of people are listening to you, there will be some people who think, yes, I can do it too. Then there's another group of people, they're going to give reasons, oh, Anna has this, Anna has that, that's why she's successful. So if you are the one who's giving reasons, I know you want to stop that, because indefinitely, you can make money in real estate, especially millions of dollars, if you really work hard. And if you really, really want it, a lot of them just do not want to do the work. They really don't want the success, they just want to continue with their life and just go ahead and do whatever they've been doing and let the life takes wherever it takes them. Anna: Yes and I think part of that James, for so many years, you see these teams, these shows reality TV, and people convince you that it's easy money that you can do it, that you can be successful. There's coaching programs and gurus that you know, charging five, ten, twenty thousand dollars to sign up and learn how to do real estate. And they promise you that if you follow these three steps, you're going to be independently wealthy in a year or two. And I think when reality hits people, and they start investing, and they start to see how hard it actually can be on a day to day basis until you build up that experience and that wealth, they just give up and they feel like failures because they've been sold an unrealistic expectation of getting rich quick in real estate, when it's really the long game. You know, you're playing a long game, it takes sometimes longer than it should you know, some people get lucky or find the right network and connections and very quickly can build wealth. But for most people, it's slow and methodical growth. And it's just people need to realize that it's not easy, but it's not that complicated if they just stick with it. James: Yes. And they are people who did one real estate and failed badly. And they gave up on real estate. So there other people that you know, yes, one time fail doesn't mean anything we could, we would have failed many times, I guess. Right, so. Anna: Sure. I lost money on my first flip. And I was convinced I'd never do another one. And yes, I changed my mind quickly. And I've done a few but rental real estate is really where the wealth build up comes. James: Yes, yes, in my single-family days, I do like 11 rentals, but I was also doing two flips. And I regret doing flips, because I made like, 40,000 on one flip and I buy a loss and $1,000 on another flip. And that thousand dollars feel very painful. Anna: Yes James: Because you shouldn't be losing money in real estate, but it really taught me a lot of things on how I didn't do it right in terms of the flip. But just because somebody did one and they fail, doesn't mean the whole real estate is a scam. Right? Anna: Absolutely. James: Definitely make millions of dollars in real estate, especially if you're living in the US. Anna: Yes, yes. James: It's a country where it allows anybody to grow, there is no limit is just you. Right? Anna: Absolutely. James: So no reasons, right? So if you give reasons, that's you so that's the only thing. So let's go to some of the deals that you have been done. And you so you are buying fourplex, fourplex, fourplex. And you started [inaudible30:21] on the 70 units and you self manage and you go into the syndication, why are you going into syndication now? Anna: So, I think some of it comes back to the time and the money, that spectrum of do I have more time or do I have more money? When I got started, I didn't have money and I could have said I didn't have time, but I made time. So it was a heavy, heavy time investment. As I built wealth and as I built more cash flow, it just made more sense for me to be able to scale larger with other partners and to be able to be an asset manager, operator, rather than the property manager or the maintenance person. So I've gotten to a point in my life where even though I've retired from my job, I really want my evenings to be free with my children and just to be wife and mom in the evenings and just spend a certain number of hours a day doing real estate. And so I got to a place where I had to say, you know, how can I really scale if I'm still self-managing many, many more units, it's going to take me a lot longer of full time effort, even though I don't have a job. And I wasn't really willing to sacrifice any more years with my children working more than 40 hours a week. And so I wanted to control my time and continue to scale. So I figured I needed to start working with other people, utilizing other people's time and other people's money. And the larger multifamily allows you to do that because you can afford full-time property management, full-time maintenance staff and really become more of an asset manager and business plan executer than you are an individual who self-managing your own properties. James: Yes, business plan executer, that's the operator definition, I would say. Anna: Yes. James: How do you define operator slash active asset manager in your mind? Anna: Sure. So an operator is basically the person responsible for operating that asset soup to nuts and executing your business plan. So it's generally, you're just general partners. And there will be either all the general partners will be involved in the asset management or overseeing the business plan and making sure that your plan for that particular property is being executed the right way. So for example, if we're buying a value add property, like the 73 unit that we did and the others that I go after, it's a property that is usually poorly managed, its expenses are not being managed well, the rents are below market, and perhaps the units need to be updated in order to maximize the rents so that you can then increase the value of that property. So as an asset manager and operator, I'm working with our property management company or a property manager and with our contractors to make sure that you know, when units come available, we turn those units quickly, we update them on time and on budget, we raise the rents, we get the new tenants in there. So that we can execute our plan to raise the values before we sell or refi. And we work with the property managers to make sure that they're cutting the expenses in the way that we planned, that they're monitoring the expenses, monitoring the rents, making sure rents are being collected, and you're just basically overseeing soup to nuts, all of the things that are supposed to happen to make your asset more valuable. James: Got it, do you think there's a certain advantage of being a local asset manager? Anna: I would say yes, in that really bad, unforeseen, unexpected things happen, like mould damage, or like when blowing roofs off or a hurricane, you can be at that asset very, very quickly. And you can also stop in and visit with your property manager, your property management company on a monthly basis, bimonthly basis and just say, hey, let's walk the ground, show me what you're doing. And there's just never anything as valuable as actually being on the ground and seeing it. However, in today's world, where we have the technology, we have zoom, we have our phones, where we can take pictures, and we can walk around, it's pretty easy to do things virtually as well. So while the operator in me that's always had, you know, my boots on the ground, and always been able to see kind of likes the control of being able to be at a property within an hour. It's not necessary, if you trust your team and have a good team that's boots on the ground, and can just go to your asset maybe once or twice a year. So I haven't really done it from afar. I'm asset managing my first property that we have under contract right now, two properties in Atlanta. And so I'll be sharing asset management responsibilities there. And that'll give me a little better feel for how much easier or harder it is to do from afar. James Got it. Got it. So let's come back to value add. So all the deals that you're buying a presume are value add, right? Anna: Yes. James: I mean, you're adding some things to the operation, either the income or the expense, right? So what do you think is the most valuable value add in your mind? Anna: So I really like Class A to B areas and an older building because your area you can't change, a lot of syndicators go after class C area, workforce housing and older buildings. And so you're struggling not only to bring the asset up to today's standards but also with a tenant pool who may suffer more heavily if we head into a recession or they may be more susceptible to losing jobs and not being able to pay rent. Where when you're in a nicer area where there's really good school districts and people want to live, there's a lot of good employers and a lot of good shopping and things around, you're always going to have people that want to move into that area because it offers the best lifestyle for those people. And so if you can find an older asset, you know, you're not struggling with the area to keep your units filled. It's just a matter of now offering an asset that people want to live in while they are in that area. So I'm really a value add investor, not doing like full major repositions, taking units in a C class area, that's 40% bacon and trying to fill them up. I like stable assets in a stable area that just needs some updating and operational efficiency in order to bring them up to today's standards. James: Good, that's very interesting. I never heard that from anyone else. Because the strategy is for you to look for the good area, but look for older buildings and try to improve from those older buildings, I guess. Anna: Yes. James: Okay. Interesting. But what about the like interior rehabs and do you do any like rehabs on the inside? And do you think is there any specific rehab that you think is more valuable than others? Anna: Sure, you know, it's really market-driven James's I know that you know, but for your listeners, every market demand something different. So where some parts of the country in order to get you to $1100 a month rent might demand granite countertops, and they might want really nice luxury vinyl plank flooring, other areas like tile, and they don't like granite, they like maybe stone countertops, and other areas to get that much, you might be competing with a $3,000 a month luxury apartment that would have granite and vinyl plank and maybe 1000 would get you carpet and a nice floor-laminate. So you've really got to look at what does your particular market demand and not just assume that every rehab has to be a cookie-cutter that looks the same. So what I do is I look at what is the competing market? What is the complex is offering to get that top rent that they're getting today? And I kind of secret shop those complexes or go on their website and see what those units look like. So for the 73 unit, for example, our property was a 1985 vintage when we bought it in 2018. So it was a little bit older, had a lot of original oak cabinets, plain commercial grade carpet, old looking vinyl. And basically we went in and we just changed up the flooring to vinyl plank flooring in the main living areas with carpet in the bedrooms. And the reason we did carpet in the bedrooms is because it's really cold in the northeast. And so a lot of people don't like solid flooring in their bedrooms. So we kind of save a little bit of money on doing carpet in the bedrooms and vinyl plank elsewhere. And we replace some countertops and updated old cream-coloured appliances to stainless steel, or very nice white depending on the unit. And then we painted the apartments, a soft, grayish color kind of more on the gray side. But the flooring has kind of had some greys and browns that go well with everything. And really for just a couple thousand dollars in new flooring and paint and some countertops and appliances, we were able to raise the rents $200 a unit. So it was a significant increase in rents because when we bought the property, not only were the units kind of dated, but the owners had not raised rents on several other tenants for several years. And so the property right next door to ours was asking 175 to 225 more a unit with the exact same floor plans as we had. So it was a great property because we didn't have to do a whole lot in order to bump those rents and achieve that big increase in value. James: Got it. So I want to go a bit more detail on how did you choose your rehab plan because you said you did countertops, you did stainless steel and a few other things there. But it's for example, how did you choose? Why did you want to install stainless steel appliances? Can you give some education on how did you go to that process, say I want to do stainless than black appliances? Anna: Well, and again, this is we've kind of left appliances, we've kind of played with it a little bit because we had so much room to bump the rents. And we looked at what is next door offering? They're the biggest competitor. So next door had certain units where they offered a premium package with stainless steel appliances. But the standard package didn't, it had white appliances. So we said for the first couple that comes available, let's do the vinyl plank, let's paint them. And if there's a cream color, for example, one unit had a cream color stove and a white refrigerator and cream color, you know stove and we said let's keep the brand new white refrigerator. And let's just put in a white dishwasher, a white stove and see if we can get the rent that we want without going stainless. So we did that on a few. And we had a huge waiting list of people that wanted those apartments, they couldn't care less about the stainless steel and so we didn't do it. So you know initially we thought we were going to go all stainless but people, we've been achieving the rent bumps we want without having to do stainless. And so we haven't done it at this point. James: Got it. Yeah, that's how you and I think that's a good strategy to look at the base on where you didn't want to overspend versus how much rent bump you need, right, because -- Anna: Yes. Sorry, go ahead. James: No, I mean, somebody can use that extra money for something else. Anna: Exactly. And the other thing, you know, because I focused primarily in my general area, I know the market like the back of my hand. So the buildings that we bought the 73 unit and the subsequent 31 unit that we just brought too, they're basically my direct competition. So I know what tenants are looking for, I'm already offering it in my town. And basically within a 30-mile radius, we know this is what the market demands, this is how much room we can get for it. And so while people think, oh, I need to do all these fancy bells and whistles, you really just need to look at what your competition is doing it over, improve it to the level that you're going to get the top rent, but don't over-improve it to the point here that you're spending needless cap backs, that aren't going to get you that much of an incremental rent bump. James: Got it, sounds really awesome man. Let's go back to the slightly more personal side. Is there a proud moment in your real estate career that you are really, really proud of, one moment? Anna: One moment, I think, on my 73 unit, sitting down with my JV partner and his partner that he had partnered with stuff, and really being able to convince him that this was an amazing asset to invest in. And he agreed to fund my first large syndication deal. So I was just really proud that I was able to build up the financial knowledge and build up the confidence and the track record from what I had done on a smaller scale that investors would trust me to take their investment and really manage an asset well for them. James: That's where you broke out from the four units to more than 70 units, which is a big achievement, I guess, right? Anna: Yes. And I think that and the day that I retired, when I was able to retire from a job where I worked with accredited investors to be able to say, you know what, I'm retiring, I've replaced my income, I've more than doubled it, I'm now an accredited investor. And I don't ever have to work for someone else, again, I think is probably one of the best moments of my life. James: Yes, that's really important. Can you name like three or five advice that you want to give for newbies who want to walk along your path? Anna: Sure, I'd say educate yourself as much as you can, you know, listen to these great podcasts and just learn from people that have already done it because you learn the things not to do and you learn that the good habits to do to kind of make yourself an excellent investor. So really commit to your education, podcast, read some books and attend some local investor meetup groups so that you can align yourself with other investors. So one is education. One is networking and alignment. And you'll get some continual growth and continue education just from learning from people that are in your network that are already doing what you want to do. I would say also start really looking at yourself and what your goals really are. So like you said early in the podcast, many people think they want to be a real estate investor. But when they discover how hard it is to do so, they kind of back off and maybe flounder for a while. And all of us can do that if we really don't know why we're doing something. So look at yourself, ask yourself what you really want in life. And why do you think real estate can get you there and then back into how much time and money am I willing to commit to my real estate investing venture. And if you don't have a lot of time, you've got to commit yourself to find money or finding other people's money or working with other people. And if you have a lot of time and not money or I think vice versa, then you need to really be willing to put in that time. And so look at your why; look at your time and your money and start figuring out how best to utilize every moment of time that you have, every moment of cash you have and other people's time and money so that you can start to scale as quickly as possible. James: Awesome, awesome. So Anna, why don't you tell our listeners how to get hold of you? Anna: Sure. So I'm on Facebook as Anna ReiMom Kelley. And I have a Facebook group called Creating Real Estate Wealth that lasts with Anna ReiMom, where we talk about real estate and really creating wealth and kind of the good, bad and the ugly of all the different asset classes. And you can email me at info@reimom.com. James: Well, Anna, thanks for coming into the show and providing tons of value. Anna, you gave a lot of very good perspective from how you juggle your role between being a mom and being a wife and trying to grow the business and I think our listeners would absolutely get tons of value out of this. And as I say there's no reason not to be successful in anything that you do and real estate is just a tool. You can be successful in anything but you can be successful if you really put your heart into it. If you really, really want it you will be successful. I mean, if you give reasons, there are tons of reasons you can give not to do something. Anna: Absolutely. Thank you so much for having me, James. It's been my pleasure. James: Thank you, Anna, bye. Anna: Bye.

Chelsea FanCast on Love Sport Radio – the only 100% Chelsea show on the radio! Stamford Chidge, Jonathan Kydd, Dean Mears and Charlie Hawkins look ahead to Saturday's Premier League fixture against Wolves and to Tuesday night's Champions' League tie against Valencia.We round up this week's Chelsea news and chat to Dean about his debut book, 'Cult Fiction' which recounts the divisive season under Maurizio Sarri.Looking ahead to the match against Wolves we ask who will replace Emerson and what are the likely return dates for Chelsea's walking wounded of Rudiger, Kante, Kovacic, Pedro, Hudson-Odoi and James? How much of a threat will Wolves pose and what are our predictions for the match.Support the Chelsea FanCast and become a Patron:Become a Patron!We speak to Sam from the Wolves 77 Club Podcast in 'Opposition View' and ask him is the Europa League affecting Wolves form or is it 2nd season syndrome? How optimistic is he of Wolves getting a result? What worries him about Chelsea and what is his match prediction?Looking ahead to Valencia we discuss the strange case of Valencia's Bat logo, the surprising similarities between the two clubs, Valencia's current form and how we see the match going including our prediction.Chelsea FanCast is broadcast on Love Sport Radio every Friday from 7.00-9.00 pm. LOVE SPORT is a London radio station and is broadcast on 558 AM and on London DAB along with numerous digital channels. You can listen from anywhere in the world. You can visit lovesportradio.com to listen live to the station and of course you can download LOVE SPORT apps in the android and IOS app stores. You can also listen to LOVESPORT radio through Radioplayer and TuneIn.The best thing is that you can phone in and join in the show and the debate with us, live. The number to call is 0208 70 20 558 See acast.com/privacy for privacy and opt-out information.

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

ow how to deploy it and learn about real estate. Started with the single-family space. And so, the first thing I bought was a fourplex than a bunch of houses. And then I realized it was too much brain damage in terms of just scaling. Right. I mean it's, having 12 insurance policies, 12 tenants and 12 loans and 12 of everything is kind of a pain. And so, learn about multifamily and then kind of the rest of the history. So, I've been running with that since.   James: Yes. I really disliked, the insurance part of the single family because--   Feras Moussa: Yes.   James: --lot of it expires at different times of the year.   Feras Moussa: That's my biggest pain point honestly and I literally will, I'm willing to pay a premium for a broker that'll just take care of it and I just don't have to think about it because it's just not worth the hassle of thinking through and spending the time and effort there.   James: Yes. Yes. I think you can pay like a monthly is the same amount and it's all automated, but insurance is one thing you have to print out and you have to scan, and you have to do all kinds of things.   Feras Moussa: Yes.   James: So, let's go a bit more into the thought process here before we go into the details of your deals and all that. So, three IT guys, right? I'm also with an electrical engineering background with some software. Why do you think a lot of these IT guys like commercial real estate investing, especially in multifamily?   Feras Moussa: Yeah, I mean.   Ben Suttles: From my perspective, I think it's the numbers right. I think it's-- you come from a kind of an analytical side of the brain, right? And I think in real estate, a lot of it is numbers driven. Now there's a relationship side of the business, right? Which we all have to have. We have to have that side of it to raise equity and obviously work with the brokers and stuff like that, but at the end of the day, it's a numbers game, right? You've got to be able to underwrite the deals. You've got to be able to make, projections, financial projections and all that as numbers and spreadsheet driven. And I think that's a lot of why the IT and engineering guys, get into this space. Also, I think the other thing is too is that allows us to be creative. When we're not able to be creative in some, some respects, whenever you're able to kind of put your stamp on the rehab of a property and improve that and, and kind of get out and roll your sleeves up. That's another thing that we were lacking probably in a lot of our jobs. And so, I think, at least personally for me, that that might be part of the reason why, I don't know, Feras might have another take on it as well.   Feras Moussa: Well, no, I think the numbers things. Definitely one of the biggest factors, but it's also, it's a space that you can learn it yourself, right? Meaning, you know, a lot of engineers are willing to go above and beyond, spend the effort, research, read books and learn it. You can do that in this space and, there's not like an engineering exam at the end of it where you have to do, you can pass. Right?   James: Yes.   Feras Moussa: And so, it's the kind of thing where you can learn it and it makes sense, right? The numbers don't lie. And so, two engineers, right? It's like, you can see a clear path of the progression, right? There's not like a leap of faith any point in time. And then the other part of it too is problem-solving, right? I think all engineers like problem-solving as part of the challenge. And to me, that's what I like about multifamily. It's bigger and harder, right? Sure. I could've probably scaled out a rental portfolio part, really wanted to, but I mean, it's just not fun to buy, hundred thousand-dollar assets, $150,000. It's a lot more fun to do bigger projects, a bigger team, and really, work through each issue as it comes up.   James: Yes. Yes. I mean in my mind is a lot about-- I mean real estates, there's a lot of creative thinking that you need to put on and that's really fun, right? Because you want to, I mean, I'm sure when you guys handle deals, we want to solve that problem. Right?   Feras Moussa: Yes, absolutely.   James: You want to break; I'm going to break that deal. Right? Hey, why? Like for me, I always say, how can I break this deal? Why you should, why you should work for me. Right? That's why I think, I'm sure you guys do that too.   Ben Suttles: I was doing that earlier yesterday, man. Yes, man, [inaudible 13:36], how do you blow up the deal, right? And--   James: How do you blow up the deal? There must be something wrong with this deal. Let's find that out.   Ben Suttles: [crosstalk 13:42].   Feras Moussa: Oh yes that's fun. Let's have a deal that makes sense. It's like, this not right, I'm just going to offer a lower, I might've otherwise because something doesn't make me, go 100%.   James: Yes. If that [inaudible] make sense, you are like, let's say to break it. Something must be wrong and when you can't break it then, then it makes sense. That okay, that's [inaudible 13:58].   Feras Moussa: Yes.   Ben Suttles: That's the one.   Feras Moussa: And then the other part too is that it's a people game, right? I mean, so something, some engineers might not like it, but at least me, I mean nothing. Ben, same. We like it because it's a team effort. It's not one person. It's how do you combine people really get the thing done both on, on the GP side as well as the operations side, right? How do you build rapport with your manager, with your regional, whoever it is? Right. And kind of help accomplish the goals and give them motivated. To me, that's part of the fun.   James: Yes.   Feras Moussa: I guess what we do is like project management on steroids.   Ben Suttles: Feras, if you touch us up on that, that was really interesting to earlier which was the project management piece, which I had forgotten about. I mean a lot of us to come from big, we've done big projects, we've worked with teams and let's be honest, and this is a team sport, right?   James: Absolutely.   Ben Suttles: This is, yes you could maybe be solo and respectful, you've got a team in the background that's helping you accomplish your goal and you've got project management or manage that whole entire process in order to get it to close. And then even after you're closing it, right? In order to asset management or to do the asset management, to do the construction management and for you James too, you do the property management.   James: Okay.   Ben Suttles: All of that stuff is, you're juggling a lot of different pieces and making sure that the ball is continuously moving forward towards that goal. And I think a lot of IT and engineering folks come from that background, understand that. So, once you can kind of segue that into the commercial real estate state space, it's just essentially just project management at the end of the day.   James: Yes. Yes. You one might, throughout my 22 years in the corporate world, I think 16 years I was a manager and I was also a project manager and I was a very good project manager. I need all that translates to this multimillion-dollar business that you're managing, right?   Ben Suttles: Yes.   James: Because to make sure your transactions happen correctly; you need to make sure you communicate to people. And that's what we all learned in project management. But how do you over communicate? How do you make sure people don't mess up? How do you take proactive action to de-risk a project? Right? So that's, that's how the game is played. Even in the commercial real estate with this [crosstalk 16:00].   Ben Suttles: And it's never going to be straight forward. Right? There are always challenges.   James: Yes.   Ben Suttles: So, I mean, that's where, we're those project management skills really kind of come into play because, anybody can run a smooth project, right? And we're nothing ever bad happened, but let's just be honest. There's always something that happens.   James: Yes, yes.   Ben Suttles: And so, you have to, you have to have that, that acumen to be able to, to keep that ball moving forward towards that common goal.   James: Yes. So apart from the, IT education itself, do you guys think that your work experience, the classes that you have been at your workplace and the environment that you have gone through? I mean as given certain edge to you guys as well.   Feras Moussa: I will say absolutely. Like I said, I mean what we do is project management on steroids. Right? And so, having done that for years had-- knowing how to keep track of multiple projects simultaneously. That's another thing too, right? A lot of people will get into the business and they realize like, hey, syndicating start to finish is not a walk in the park. There's a lot that happens, both lending and legal and issues come up and they, it's a lot to keep track of. But then she tried to do two deals at a time. Right. And how would, it's not really two weeks, it's kind of a square, issues. So, I would say absolutely. Right. And then the other thing that we've seen, being on the tech side is how do we differentiate ourselves from other people too, right? How do we, create a better impression for investors? How do you position, everything professionally, right? All of our stuff is mobile friendly. All of our stuff, certain ways. And those are the things that I've brought at least from the tech world, to make sure that we kind of do and do well.   Ben Suttles: Yes, I think, I think efficiencies, right? That you come from that IT engineering background, it's all about productivity, efficiency, how can we automate things and James you probably saw the same thing when he got into space and to completely fracture. A lot of it is backward or outdated and there's a, there's a lot of low hanging fruit stuff, ways that can be improved and I'm sure your team is looking to do that constantly and so are we. And that's all come that comes from our background, right?   James: Background, yes.   Feras Moussa: I told Ben I have to stop myself from wanting to start a software company every few months. Being an entrepreneur and being a software guy, it's like man, this place some of the stuff we do is pretty archaic.   James: Yes.   Ben Suttles: Yes.   Ben Suttles: I think real estate is the last, most, what it called?   Feras Moussa: [crosstalk 18:28].   James: Fragmented industry, you know, that is, they're like something like AI or something is going to take over soon, right. Because there's so much inefficiency.   Ben Suttles: Yes. But it's, you can take it to an extent, but then there's that personal side, that relationship side. Right. And I think that's kind of, that's, that's one of the parts that I took from my former job, which was, a lot of sales and business development work as well. Right. Taking that, that networking, that relationship building side, that building rapport side into this space. But, I mean, I agree. I think there's their software and AI and these types of things are going to automate a lot of that back-office part of the process and maybe even the analysis piece. But there's always going to have to be those two people coming together to make a deal happen, right?   James: Yes.   Ben Suttles: Because ultimately, it's going to be one person or one group and trying to sell on one group trying to buy, and you have to come with some kind of an agreement. Right. And then even after you buy it, right, there's always those relationships with vendors and employees and all those different things that you have to kind of manage to. But anything that we can bring and that we've seen in our past gig where we could make that more efficient here, we're, we're obviously trying to introduce that.   James: Got It. Got It, got it. So, let's go back to the business side of it. So, what are your guys' focus, in terms of market? Right now, currently Atlanta and some cities in Texas, right? Why don't you guys talk about, why did you choose these two markets?   Feras Moussa: Yes. So, in terms of why we chose them, I mean, the same reason you're probably in San Antonio to some degree, right? We're looking for strong, attractive markets that are not a single industry that is growing right. Population and the business side. And then, really the important thing for us to is the yield, right. So that's why we got into San Antonio too, was that we can't find returns in Houston. We look at a lot of bills and use of our base and we don't own anything in Houston, right? We're looking for returns that we can, that that will actually, you are looking for deals that'll give actual turns, foreign investors. That's also why we don't look in Dallas, right? Price points are too high that you having to pay so much that you basically have no yield on the deal. And so that's kind of what really got us into Atlanta. We got us into San Antonio as well and yes, Beaumont's kind of a slight story, but those are the things that we look for. And then in terms of future deals, right? If future markets, so, we've really kind of manage to, I would say streamline a lot more of our acquisition pipeline, right? In terms of underwriting deals, identifying deals and really keeping a pipeline going. And so, what that's allowed us to do, especially with a fulltime asset manager now, is we can look at a lot more deals. So, we've kind of identified two markets that we want to get into, hopefully, this year. Orlando in North Carolina. And that just, just to give us, just to keep our pipeline going. Right. We can keep looking at more and more and more deals. Yes, we'll hopefully be finding something that makes sense.   Ben Suttles: Absolutely.   James: So how do you guys choose your market? So, like now you say Orlando and not Carolina, right? So, I have a lot of stats on Orlando because I know it's growing very quickly. So, let's take, not Carolina. Why did you guys identify? Not Carolina?   Ben Suttles: I mean, I think, I think all of it boils down to population growth, job growth. We also like to find areas and that's not every single market, but I like to see a good concentration of different universities and colleges as well because I feel like a lot of the bigger corporations are going to follow where they're going to have a good funnel of potential students to take from it as well. So, we'll look in college towns as well too, because, but let's be honest, North Carolina, it's got, the research triangle, it's got a ton of universities. And, it's calling to be called the Wall Street of the south. The problem with North Carolina is that we're not the only ones looking there. So, it's, it's pretty competitive there too. But it's got a lot of those good data points that we like to see in terms of population economic growth--   James: Okay.   Ben Suttles: --that you see in Texas and in Georgia. And really, we are, we look at in Texas for quite some time and we found Georgia was very, very similar in a lot of ways to Texas. And so that's the reason we started kind of focusing on Atlanta as well. But it ultimately boils down to, is there enough population job growth to continue to drive demand for the workforce housing that we're, that we're looking for. So, people are always like, well, you're not renting out to fortune 500 folks. So why do you care about that? I'm saying, well, the ancillary service companies and service jobs, they're going to feed into this white-collar job is what we're looking for. So, if you don't have any of the fortune 500 stuff rights, then there's not any real need for a lot of the infrastructure where a lot of these people are going to be working. So, when you, when you look at it in Texas, when you look at it and Georgia, right? One of those people is there. So there has to be serviced workforce type jobs that are going to have to be feeding into that. And that's why we like those markets. And, we see a lot of that same type of thing happening in Orlando and some other markets and Florida and as well as North Carolina. And we've looked in Tennessee, we've looked in some other spots as well. From us we've got so much deal flow coming in that in order for us to be a little bit more strategic work as a team, we've decided to focus on about three or four major markets and then just go deep on those and then we can go horizontal and find out that markets in the future.   James: Got It. So, let's say now today you're getting a deal, right? Let's say from North Carolina, what other steps that you guys take? So today let's say, I mean how do you guys get deals nowadays. Is it through broker relationship, off-market, on the market? How are you guys sorting out the deal flow?   Ben Suttles: Yes, everything in between. A lot of it is brokers. A lot of is people that know what's his buyers, people that you know, we will get the deal closed, right? Whether it's the broker that knows it and they might know. Seller. One thing I tell every broker is like, hey, if you have a deal that you don't have the exclusive on and you need someone to make a pre-emptive offer to try to get that locked down. Like, where are your guys? Right? So, you find ways to motivate the broker is motivated. Other people that know someone that knows someone. So, we, I mean really deals come in all shapes and forms. And so, for us, the biggest volume is definitely the brokers, but it's really, it's not about the ones that they just email outlasted, right? It's really about the follow-up deals that maybe are near, getting to the finish line and getting the finish line in terms of the-- in terms of the marketing, but they haven't had any such interest or for whatever reason. Right. So, I think that's important. So, once the deal comes through in terms of the analysis side of LLC, dig into the P12, dig into the OEM, but more importantly, talk to them. Sorry, go ahead.   James: I'm just saying, what do you look for first in the deal? Do you get a-- so you get a deal, what do you look for? What are the, what do you, what's your sniff test because I --   Ben Suttles: Yes.   James: underwrite everything, right? What's the sniff test?   Feras Moussa: I'll tell you what my first sniff test. I look at what the average rents are and what their price point is, and then I can deduce from that, right.   James: Okay.   Feras Moussa: Is this going to be anywhere. And really what I'm doing kind of mentally ballparking what the cap might be. Right? But really, I'm looking at what are the average rents and what does the purchase price. Right. And then yield. Is there, are they close enough that I think that there's some meat on the bone, right? It's really what it boils down to. I'll give you a real example. There was a deal in Atlanta that I-- so North Atlanta, Atlanta has a really unique market. North Atlanta is really expensive. South Atlanta is the complete opposite. There's a deal that came through on the northern side and I think the average rents on that deal were like, 850 $900. So, I'm okay, this one might be at a reasonable price point. Right? And so, I'm like in my head, mentally I'm like, okay, let me call the broker. If this is 80 maybe 90 you know, there's a deal to be had here. Hey, call the broker. And it's 130 a door, right? So, I mean, that already instantly ruled it out. And so, you're really looking for some of those kinds of low hanging fruit just to figure out, okay, is this still even in the ballpark for us to look into it anymore.   Ben Suttles: Yes, absolutely. And I think the first sniff test James is really, I mean then the location of it too, right? Do you know what I mean? We're getting the deal flow and these places that we want to be, and we've identified different pockets within those submarkets that we want to be in. So, if it's not within one of those pockets and we're automatically, putting that to the side. Now that doesn't mean that there's not a deal there. Right.   James: Yes.   Ben Suttles: So those are usually kind of the maybe deals and we're, we want to kind of circle back maybe we're bored or something. Let's do that one-- -   Feras Moussa: Exactly, whether we are bored, we go back and look at those deals.   Ben Suttles: Yes, we'll go back and take a look at those. Right. But we're looking for that are going to be the net, that those are some market pockets, right? That we like. And then from there, right, just like what Feras was saying, you can almost, you can almost immediately tell if it's going to work. Right. And you pencil out so many deals. I mean, we, at this point we've analysed hundreds and hundreds of deals. So, you can on them almost look and say, oh, that's not going to work for us. Right. Just based on what they're asking for. And you can also kind of tell that to, by the price per pound versus, sometimes the median income of the area. Right. I mean, are you going to be able to achieve the rent that it's going to, it's going to take to make that deal work. And if you're going to be maxing out your median income, then it's not going to work either.   Ben Suttles: So, a lot of the things that we look at, population growth, we look at job growth, all those things too. But one of the things that we also look at as the median income, right? And a lot of these is workforce housing, right? So, I mean, you look at, what's the, what's the average rent? We're usually doing the three-x income test. Whenever we're taking perspective tenants in, right? Like everybody should, and then you determine, what the median income level is and if you're going to be maxing that out, you're above that, then the first sign that something is going wrong, let's get ready to skip. They're going to stop paying rent, right? So, you want to make sure that you're under that, right? You don't want to; you don't want to be at the top of the market. Yes. Maybe they can keep up with it for a month or two where they're going to get behind. And so very, very cognizant of that.   Feras Moussa: And to add those, it's not that, if it's a lower income area, we won't buy a deal very well. It's really these are just kind of rules of thumb. And then from that, you start to work back, okay, well if it's a lower income area, can assume they are economic occupancy is going to be much slower. So, you should underwrite it that way. Right? Cause there's a deal to be had anywhere, right? I mean I'll buy any deal at the right price point, right? Assuming as long as it's, to me at least this has been new instead of a growing market. Right. And that's not a deal at f four worry about the city, essentially no one even wanted to live in that general area. But in terms of price points, in terms of, average incomes, all of that, it's really, again, depending on what price point are we buying it at.   James: So, let's say the rent and the price seems reasonable right? At the first sniff test, what's your next level sniff test? What do you guys do?   Feras Moussa: Then and actually started this. The thing I do before that is actually called the broker and just get there [inaudible 29:18].   James: Okay.   Feras Moussa: Right? And that's the first, usually, right? Because a lot of times there's more to this story, right? Is it, is it a partnership where you know, one of the sellers passed away and they're looking, you know, they're a little bit more motivated or is it a deal that just, the Bro, I've had brokers a little bit tell me these sellers are terrible operators, right? And you can kind of, and if you have a relationship with a broker, there'll be honest with you about that aspect. Right? Brokers are all, a lot of times brokers, I don't want to say always, but there'll always be, a lot of times we'll say, yeah, you know, you could do this and this and get, a $200 rent pop. Right?   James: Yes.   Feras Moussa: Take that with a grain of salt. But I'm looking for something that's kind of that ancillary information to help the deuce. Like, Hey, is there an actual opportunity to do, what's the value add that we can do is we can kind of take that into what we just talked about. Then kind of once, like you said, once you know the numbers make sense or the deals make sense, then you start to dig in and near. That's where we really do just to, go down to the numbers, right. Look at the t 12, look at where they are today on expenses. Look at where we think we will be on expenses. Where, what does the rent currently, right? What's the spread on just the rent, the market rents versus what their marketing right. Today. I mean kind of, we really starting to put the bigger picture together. Right. And then understanding is, hey, does this make sense at a high level? Right? Yes. That's us. Sorry, go ahead.   Ben Suttles: Oh, I was just going to say, what I mean, we don't even look at the OEM. Right. Do you know what I mean? We're going straight from our perspective, right. That just use your, you'll get, you'll get the skinny from the broker, right? Because they'll usually-- but the marketing packages is the marketing package. Right. And I feel like that sometimes skews people's numbers when they look in. Concentrate on that a little bit too closely. So, it's always best than if it passes your initial test and you talked to the broker and there might be something there and you just go straight to the spreadsheet analysis. Right. Because, I mean if you start trying to dissect what they're going-- what they have in terms of pro forma income and expenses, then you start getting that none of those numbers in your mind. And guess what, there, they're making those numbers work. So, we always, we always go straight to that and then only then do I then look at the OEM and I see how far apart we are. And usually, it's pretty significant. But, it's those classic sales tips, like, below replacement costs and all of these things that they love to say, that makes it sound so sexy.   James: Yes, its--   Ben Suttles: At the end of the day and it has to pencil out. It's all about the numbers.   James: Yes. I remember in one of the deals I never look at the OM until I close because I need a logo for that property. And I say where is the logo and then I called the broker, you understand the OM, I say yes.   Feras Moussa: Oh, you had the floor plan. Yes, we had that for the floor plan. You go back to the OM and grab the floor plan that [inaudible 31:56]--   James: Exactly.   Feras Moussa: --time and effort on.   James: Yes, yes, we did a floor plan and the logo from the OM, that's it.   Ben Suttles: There you go.   James: So, it's interesting. And so, the type of deals that you guys do, I mean, where do you categorize it? Value add deep value add or [inaudible 32:14] yield play or core type of tails.   Feras Moussa: I mean right now we're focused on value add. I mean we would like to do a more, really to me, the ideal deal for us now or given where we are given, our network, et cetera. It's really kind of that B minus space. Right? We've done the heavy value add, it's a lot of work. Right? And those skills have worked out. They performed, but for us, I mean it's just she consumes you, right to some degree. And so, we're trying to less of those and we try to vary it up. Right. Always have a value add going on, having a stabilized going on. Just cause from a bandwidth perspective, right, we can kind of handle one at a time, but we don't want to take on three big value add the one time because then he would get lost in that. And so, I think for us we're typically in that C plus B minus space is really the focus for us.   Ben Suttles: Yes, yes.   Feras Moussa: One day we'll do an ADL but not in, but not-- but it's about matching it to the right equity pool. Right. If we have equity that's okay with the lesser returns. Right. We can go do a B plus or a minus. But so far, we've been kind of in the C plus B minus space.   Ben Suttles: Yes. Yes.   James: Got It. Got It. So, what about that, that strategy? Do you guys do only agency Loan, Bridge, Bridge through an agency?   Ben Suttles: I think we're doing all this. It's really deals dependent. Right. Do you know what I mean? I think the bridge has gotten a little bit of a bad rap. I mean there's, there obviously you have to be careful with it, right? You have to understand that your exit strategy, you have to be able to hit those targets in terms of, especially if it's a value add, tell him the hair on it, which is, it's going to with a bridge, right? You got to be able to hit those timetables in terms of your construction, your rehab in order to refi out of it quickly. And then at the best price point that you can write, because obviously, you don't want to have to bring money to the table. So, we'll do a little bit of the bridge, but for the most part, where everyone, just like every other smart operator, you're looking for agency debt when you can. But at the end of the day, we're looking to maximize returns for our investors. And so sometimes, going bridge versus agency has been a better way in order to do that. And people understand that there's a little bit higher of risk tolerance with those. But we always get a three-year term with two years' extension. So, at the end of the day, it's still five years on a bridge that, it's not something like an 18-month deal. So, I think that that gives people a little bit of, they feel a little bit better about it as well. But we've done agency all the way up to 12 years too. So, it's a little bit about, just depends on the deal.   Feras Moussa: Yes. For anyone listening, I mean I think we have a Ph.D. in the agency space. Unfortunately, we've had issues that people that do 50 deals never hit. So, we've seen it all. And so, if anyone has any questions, feel free to reach out. But we've seen the good, the bad and the ugly on the dead space. So, it's, you kind of, you work through those problems, right? If you get the closing, which is the good news, but then you kind of learn from it and you know, start to figure out what are the things that could be learned from this to basically avoid the situation in the future. Right. We've had, we've really seen a variety of things. Unfortunately--   James: Oh, let's talk about--   Feras Moussa: --that's where Ben lost all this hair.   Ben Suttles: Just one. Just one lender, which I'll tell if you want to email me, I'll tell you which linear it was.   James: Okay, tell me the worst story with an agency, just let's just go--   Feras Moussa: The worst agency story. I'll tell you one, and this is one near and to you James. So, it's in San Antonio.   James: Okay.   Feras Moussa: San Antonio deal its a, a deal that pencils in really well. And for those of you that know on the agency side, right? With a standing loan, you can do what's called fully delegated, which means that fanny lets the dust lender, which in our case could be Arbor, could be haunted, it can be any variety of them. For us, it was an Arbor deal and lets them operate in the wrong capacity, right. To some degree. And so, there's kind of a box. As long as they're within the box, Arbor could approve the deal, no questions asked. Well yes, we're like three weeks from closing pretty much at the finish line. Money's in the bank. Well, we're already looking at the next field that we had to go on and then kind of going back, what happened was that because it's the San Antonio deal and the deal pencils in really, really well, right from a financial perspective, the lender said, well hey, we can go get your five years IO. And we didn't think much of it. Right. It was like, okay, that's fine. Well, at least we'll back out to where we are today because we run the road at one-year IO. Well, long story short, this deal essentially used to be on a watch list three years ago. The sellers are only deal in San Antonio. They struggled with it. Plus, it was kind of whenever they're in the midst of a lot of rehabs. So, he got on the watch list, it wasn't on the watch list the past few years. And that whole you, that market better than we do James. And that whole area has really turned around from where it was three years ago. But guess what, it was already flagged by Fannie and they just wanted to essentially get it off their books. Right. And so, this is something very, I actually did this just the other day where I, I was talking to a broker about a deal and asked him was the saber on a watch list.   Feras Moussa: That's something I've learned to ask now because and what sucks about it is that once a lender, a dus lender, this gets Arbor went to fanny, right? Once Fannie times in, Fannie is the authority, right?   James: Correct.   Ben Suttles: Versus if we would have just not ever done that, we could have closed the deal agency with Arbor, no questions asked. And so, it's a very unique situation. I don't know anyone that's actually ever encountered that. Right. But these kinds of things do happen. And so just knowing that they can happen, figure on how much risk you want to take because we would have been happy with what we had-- what we could have closed. Right. We were happy with the one-year IO. That was great. That was fine. But it's your kind of get a little bit more than that and then now completely bag of worms. So.   James: Yes, I learn, even I learned about this watch list, last week when was looking at another dealer then someone says, Oh, I backed out because of watch list, I say what is that? Right? Then we realize there are so many other issues with the deal. Right? So that's crazy. Yes. I mean for listeners, just FYI most dus lenders, they have one-year authority on a delegated underwriting. So within, if they give one-year IO, they don't have to go back to Fannie Mae and get approval. But once they go above that they have to go to Fannie Mae. And a lot of things can change when you go to Fannie Mae.   Feras Moussa: Yes. So, I have learned that there are different tiers. Right? So, there's the tier two, tier three. So, if you're at higher leverage that can only give you one. But if you're willing to go down to 65% they can actually approve 5 years IO, no questions.   James: Okay.   Feras Moussa: So, you start to learn. And again, why did I learn that from a different deal? So, start to understand really the mechanics of what's going on behind the scene. And this is where having the right mortgage broker makes all the difference, right? They can help steer you in the right direction and help catch some of these. So, I mean for the-- for the watch list, the sellers were actually more pissed that we were about the whole, they didn't think that was going to be an issue in terms of us getting the next one. Right.   James: Okay.   Feras Moussa: And they never thought to just close it. You don't think it's going to be an issue.   Ben Suttles: No, they thought it was off too.   Feras Moussa: Yes.   Ben Suttles: But, do you know what I mean? I think there's that just like, like our earlier part of the conversation. Right. You know, we're project managing these things, things are going to pop up. So, we were able to make it through that process--   James: Right.   Ben Suttles: --and still come out on top in terms of the debt. But yes, I mean we're always looking to maximize returns and risk and minimize risk for our investors. And I think that having this different background and different debt products and having a good experience with some of these different lenders really gives us a good broad overview of the debt market and which deals are going to make sense where, and I think that that's huge when you're looking at who to invest your money with, because know some people, let's be honest. So, they'll just go straight to Fannie, if it's not Fannie or if it's not Fannie then I'm not doing it. Right.   James: Correct.   Ben Suttles: But I think sometimes you're missing out on opportunities there as well.   James: So, wasn't, like three weeks before closing, didn't you guys had a rate lock at that time?   Feras Moussa: No, we're supposed to [inaudible 40:01] lock a few days later.   James: Oh okay.   Feras Moussa: Like little, they're just waiting on the final. Oh, because they went to Fannie, Fannie kind of asked-- this is where really, I think we could have-- it's about positioning the story. Right. Again, I think the lender just went in thinking that it's going to be easy down the middle because really that's what they told us. Right?   James: Okay.   Feras Moussa: They didn't even bother. We had a great story for the deal, for the sponsorship team. They tried to do it retroactively and kind of wants Fannie comes in it's really hard to change. But we were literally at the point of rate locking and getting, being done with the steel. Like we will do, so.   James: Yes. [crosstalk 40:36].   Feras Moussa: You do full 360 and charge full 180 and change things and kind of Redo. So, in my mind, it was really, we did, it took us to close if get that deal done.   James: Yes, it's, yes, it's, it's a day just to do it at the end because you're almost at the closing table. Right. So,   Ben Suttles: Yes.   Feras Moussa: Yes. So, so in that situation, just maybe to complete the story, right. The seller realized kind of what happened. They gave us more time, right? They gave us another 30 days they knew that wasn't really for lack of use or lack of anything that we did. And so, we're able to buy more time and then redo the process and kind of, get to where we needed to be.   James: So, did you do a different loan?   Feras Moussa: Yes. So that one we call back every investor because I mean we basically what we did Arbor realized the mistake that they made, which was they should not have gone to the lender, tell Fannie, they should have just closed. And so, they basically gave us a balance sheet loan, right? Which is like a bridge loan on their books that essentially, the short term just to get it off of Fannie's book, --   James: Okay.   Ben Suttles: --then in nine months. Right. So, for us, we kind of turned it into a value add reprice scenario. Right.   James: Okay.   Feras Moussa: And so, when that case, we will, nine months, 12 months, somewhere around there. Right. We're also pushing our NOI as hard as you can. We'll refi, pull equity out and get back into a panty permanent loan.   James: Got it.   Feras Moussa: And so, but the deal changed, right? And so, we had to call every investor, tell every investor here's what changed, here's what happened. Then thankfully pretty much everyone stayed in the deal. Right? So that kind of-- for us that it's a sigh of relief. But also, it's like, everyone just doubled down on us. Right? So, we're--   James: Right.   Ben Suttles: --going to get babysat through the finish line.   James: Yes, the amount of pressure for you to go, on the contact to rate lock it so much. Right. So, I mean, I don't know, I mean-- there's a lot of pressure on, responsibility. You have so much money tied, and you are under the gun and you have all your reputation out there. You are doing the deal, investors are looking at you, you are to be a leader. You have very strong leaders. So.   Ben Suttles: Yes.   James: Yes, it's a lot of work.   Feras Moussa: Absolutely.   James: So, kind of back to value add, right? So, you guys do value add strategy. So, what's your, what do you think is the most valuable value add?   Ben Suttles: I think, ultimately, what tenants care most about, right? I mean, whenever you're doing value add, unfortunately, you have to cure a lot of [inaudible 42:52]. You have to do a lot of things that you not going to get the best return on your investment on. But the two things that tenants care about, first being their interiors. So, what was actually in my unit, the second thing that they care about is amenities, right. Probably a distance second. Most of the time with the workforce housing, they're caring about what their units look like. And I think that's where you're going to get the best return on your investment when you're doing value add. And then you can obviously update and add on amenities as a secondary thing to that. But unfortunately, with those value adds, you got to do things like roofs and HVAC replacement and other things that just people just say, hey if I'm renting from you, I expect that to be working. So, you know, but you might be spending a hundred or two hundred grand on some of this stuff, right? So, your return on investment is almost nothing, but you have to do it. So, you've got to balance those two things, right? You've got to work in curing that deferred maintenance along with how do I push the NOI and the revenue side by, really updating the property for the way that the tenants are looking at it. So, I mean that's kind of how we look at every value-add play that we do. A combination of those two things.   Feras Moussa: So, James, is your question really specific about ROI? Like what are the things that we putting kind of deferred maintenance aside, what other things would we do to really try to maximize our return?   James: Yes, other than deferred maintenance, like the roof and all the big stuff [crosstalk 44:21].   Feras Moussa: Yes, so I mean it's, its properties specific, right? It's really depending on the asset, what it looks like currently and what is the market doing right now? That said from our experience, right? The most common thing, flooring, two-tone paint, right? And pimping out the kitchen some degree. Right? And you can go as crazy as replacing all the cabinets or you really replacing the front or even just putting fixtures, right? Like for us, fixtures are definitely cheap. Easy to do. It gives a different, pop to the thing, right? Flooring almost always, painted and really two-tone paint. It's important. And the other thing too that we like to do is really putting a backsplash. You can do backsplashes with this kind of stick on backsplash, really, really cheap to do per unit. And it gives the kitchen, which is usually known the seventies, eighties build kitchen, a bit of Pop, right? It gives it something to modernize it. Right? We didn't go as far as putting granted in. Right. But you are putting that in kind of coupled with a resurfacing. It actually looks pretty good. And then, the obvious is white and black appliances. Right?   James: So, let's say--   Feras Moussa: And that's all, white, black or aluminium.   James: Let's say how the interiors, right. So, let's say you guys lost for some reason you thought you had 100% of your interior budget, but now you need like 50% of the budget. What would you focus on, on the interior?   Ben Suttles: Yes, if the property needed any flooring or paint. Right? [crosstalk 45:38] Those are important things to think.   James: Okay.   Feras Moussa: Yes, I mean, you got appliances too right, but I mean appliances, you're going to be two x in your interior budgeted, just adding those in. But a lot of people they take, there's a price difference between white and black appliances are really not, but there's a perception that they're a little bit higher quality. So, you can even do that too. Right? You got to replace the appliances, but you don't have a whole big budget for that. You can just go from white to black to and I think that adds a nice pop too.   James: Yes, that's a really good point. I mean I realize a lot of times if you give them even white, really nice appliances, people are happy. Right?   Ben Suttles: No. Yes, you can do, right. It's-- I mean, but like, you'll see people like, they're just ecstatic that they've got black appliances. Right now, the market is about the same in terms of pricing.   James: Correct.   Ben Suttles: So, but it's just a perception thing or just, like I said, backslash 150 bucks.   James: Yes.   Ben Suttles: [crosstalk 46:38].   Feras Moussa: Let me turn the question around to you, James. Would you, the same question to you, right, would you do the same thing, or would you do something else?   James: So, we, so for me, I think my most valuable value add would be just giving them good management, right? So, there are so many bad operators out there, which is mismanaging not respecting the tenants, not taking care of it. So, we just want to make sure, really good management that's on the management side. But if you go back to the interiors, I would say, of course, we do the appliances and we do the painting and flooring. That's what we would, I would say the most, so, but I think, a lot of people just love having good management people who take care of them. Everything--   Ben Suttles: Oh, absolutely. I mean, they want to feel comfortable and who miss their right. People that understand what's going on. I mean, that's to me, and that's why for all of our properties, we're big people, putting, doing parties, doing tenant events, pretending retention vents. Because from the operations side, right. This is, you have the backdoor and you have the front door, right? You don't have people renewing, right. You're going to have delinquency problems, not a delinquency problem, you're going to have an oxygen problem, right? And so really keeping people happy, renewing, right. Well, then it makes it easier on the front end to start the push friends, right? Because you have people that are enjoy working there, living there. Right. You know, for another 10, $20. Sure enough, it's more than the cost of moving. Right. And so that's absolutely.   James: Yes. I think at the end of the day the tenants just want to be felt appreciated. That you just-- so many properties out there. You don't have to be being mismanaged.   Ben Suttles: Yes, clean, quality, safe housing, man. I mean, it seems so easy and the way that I describe it, but so many operators, I've just run some of these properties in the ground and they don't take care of it. Right? And so, the tenants, therefore, don't consider home and they don't take care of it. So when you get a good operator, I know you get a good management company in there and they showed that they're taking care of the property, then by default you're going to get more loyal 10 tenants, you're going to have people that are going to be more apt to take a renewal increase, cause they like, they like coming home again. Right? It's home.   James: Yes.   Ben Suttles: Versus just a place just to sleep.   James: Yes. Yes. I think one of the episodes, maybe episode five or six, I interviewed, Addie Lauren from California strategic alliance and he had been doing this for 30 years, more than 1 billion in a transaction. And he told me very simple, clean, basic and functional quality is what his motto is that's it. Right?   Ben Suttles: You don't have to get; you don't have to be creative about it. Right. I mean, you know, the space that we plan is essentially workforce housing. I mean, across our whole entire portfolio, our average rents are less than a thousand bucks, right. So, folks aren't looking for crazy amenities and crazy things even in their interiors. They just want a good quality place to come home to and then, and the management side is a big piece of that too.   James: Correct, correct, correct.   Ben Suttles: Yes, she bought up a good point.   Feras Moussa: And then another thing too with good management, right. You get lower delinquency. So, for us, I mean that's night and day. We had a deal that we, one of our heavy value add deals where essentially where we were, I went back and looked at numbers July versus where we are today. We have three times more revenue collected than we will, we did before total, like literally straight revenue you and that's a combination of, cutting back the delinquency, bringing units, align, updating. But I mean, it’s, once people know that it's, someone taking care of the property and enjoying it, people want to stay there. All right. People are eating $200 rep push because guess what, this place has been completely turned around. It's more family oriented and even just bringing more families on board helps to come back for delinquency. So, for us really looking at how do you build that community and some people really cheap about it, but like, hosting these parties is you, I mean, do the math, right? How much does it cost to go get a hundred hot dog and a hundred burgers? Right?   James: Yes.   Feras Moussa: I mean it's very, very cheap, right? To be there and grill it out, have like a little patio, you know, a party, whatever it is. These things are almost, you know, half of the units rented a month, right. It's kind of thing. And so, they're almost rounding errors, errors where we are, but guess what? It changes the dynamics in the property. And so, I mean, some people don't really-- people are very short-sighted. I see. And really it has a much bigger kind of longer-term impact.   James: Yes.   Ben Suttles: And I think going along with the value add, right? I mean, you know, a lot of what we're doing is repositioning the property too, which is kind of where you're going with this James. Is bringing in better management. You're getting a better tenant profile at the same time too. So that's part of the value-add strategy as well, so once you, and once you show them that you care, you've got tenants in there that care than the properties just starts performing. There's a whole-- the energy shifts are palpable. Do you know what I mean? You go from a bad energy deal to a very good energy deal and you have less delinquency. Yes. Better occupancy people more apt to take a renewal increase and you can, you can rent that out more easily because people that prospective tenants that are walking around fuel that same thing too. So that's a huge part of what we do. We don't like to focus the value add just on the what the aesthetic of the property to, it's how you manage it and tenants that you have in there as well. A huge part of it.   James: So, you guys operators, which is the definition. What I mean is very active asset management because you know the details of what's happening on the side by side. Right. So, is that a correct assumption? Right? So.   Ben Suttles: Absolutely.   Feras Moussa: Yes, absolutely.   James: How do you guys manage this third-party property management companies?   Feras Moussa: Man, that's, that's part of the secret sauce. But I mean, it's really is nothing to it. There's nothing secret about it. So, we have an asset manager now that we've brought in who very experienced, 20 plus years if families a property, he manages family really. And so that's starting to help, but we plan to keep a pulse in general on what's going on in every deal. And so, for us, it's really about putting systems in place with each of your property managers, right? And having accountability. Right? And so, we have not brought in property management in house, but we've been successful with managing our property managers. Right? Yes. And it's a partnership, right? It's not like they're your employee. You really need to get on the level of like where they understand like, hey, we're partnering, we're growing together. Right? And so, they've seen that, and you know, yes. Identify the good property managers from the batch. So, there's a whole betting cycle. I don't want to get too far into, but really, we have the weekly calls, we have the weekly reports come in at a certain time. We have certain expectations that within a few days we expect them to follow up with hearing all the action items and did these all get done? Yes or no? Why not? Right? And how do we, I can keep them accountable, so.   Ben Suttles: Yes, it's all about obviously keep it to an agenda, keep into the processes that we put in place to templates and checklists. And we're very upfront when we get into a partnership with these property management companies that this is what we expect, that this is when we expect it. Right. And then we, like we said, we keep them accountable through--   Feras Moussa: And this is the format that we expect, that these are the numbers that we need and sent out.   James: Okay.   Feras Moussa: Just to help us track everything the way we want. And then you learn from it. Right. We're not perfect. It's not, it's an iterative process, right. Anytime we identify something that we can improve from one property manager, we applied to the portfolio. The nice thing is really is that having different property managers, we see the strengths and weaknesses of each property manager and you figure out how do we make them all better and so what things can we do across the board to make everything better?   Ben Suttles: Yes.   James: So, can you name like three things that you guys always look out for in the property management performance? When you realize that someone of these three things is not going well, things are not going right.   Feras Moussa: Oh Man. I would say renewals is the lowest hanging fruit. Look and understand what's going on in renewals and how important it is because early renewals are indicative of a lot of other things. Are they following up with tenants for the renewal? Right. Did they really? That's just a-- that's the number that you can kind of look at and realize that there must be other problems going on. I would say that's my answer. I don't know about you, Ben.   Ben Suttles: No, I think, yes, I think you're right, man. Totally. Yes. I think my biggest, my biggest hanging out in delinquency because it's like that's the properties money. Like you know, go out there, how are you going to collect the rent that is owed? And so, when you start seeing that slipping and we're increasing, that's my big red flag that hey, there's something going on here, right? As our management on site, not, not doing their job, or are we getting bad tenants in there that aren't capable of paying the rent that we're asking of them may be what's the, there's a, there's usually a bigger problem going on, but yes, I mean all of these, these metrics we expect on our Monday morning report. And so, we're looking at each of these things weekly and we're also having follow-up calls throughout the week to either our asset management or asset manager or us or having calls with the property manager to track these things. So, it's not like a weekly thing. And that we don't have any kind of insight into what's happening for the rest of the week. If there's a challenge, we're having a follow-up call that week about it as well.   James: Okay. So, do you convert like renewal to percentage and look at, give that as a goal, that what you guys delinquency at two percentage and give that as a goal?   Feras Moussa: It's a balancing act depending on how hard you're pushing. Right? So, it's not like you can just say, hey, we expect 50% renewals across the board. I think it's really, it's deal specific and I mean we're looking at renewals, we're looking at least as we're looking at delinquency, right? We're looking at how much traffic came in versus how much leases got closed and then going in and really both on leases, we didn't close. What's the story? What's the story? What's the story? Sometimes there are cases where you, maybe you, no, you can go save that, that person. Similarly, on the delinquency, we go through what's this person's story? Are they going to pay? Cause really in Atlanta, our delinquency is higher than it isn't and Texas, right? It's just by nature of the market. And so, you, you kind of need to be more flexible in one market versus the other. And so really go through and understand what's the story behind me. Just like whenever we, you asked me earlier about the properties, how we analyse it, you're looking for that story. And so, we talked through each one of these and figure out what makes sense to kind of do moving forward. Because to us, it is very different between different properties.   Ben Suttles: Yes, and I, I would say targeted for delinquency, right? It's always zero. And do you know what I mean? So, the property management companies will say, oh yes, we got zero across our whole portfolio, I'm like, yes right. Do you know what I mean? Not, not the workforce housing stuff. So, you got to be realistic. But I would say your target, there's probably one to 2%, you know, on a stabilized property if you're dealing in the workforce housing space that we are and so that's usually the metric that we're pushing towards. But on the renewal side too. One thing I want to point out, right? When you're doing a heavy value add and you've got a lot of interior budget to kind of burn through and you have units that you need to update too, right? You're not going to be chasing after those folks as aggressively as you would on a stabilized property because maybe you don't have a lot of down units are a lot of vacancies and you need to free up, you know, units actually update them, right? So, you're not going to be as aggressive in renewing those folks. So, we've been able to connect like Feras says, right? I mean, you don't want to, you're not going to burn that bridge completely. So, you're constantly looking at occupancy, versus how much, how many units are we supposed to be turning a month in order to hit that target of, 60, 70, 80 units a year. Right. Because people have, people aren't moving out. What are we going to do? We can't sit on the money and there's usually a finite amount of time that we can, we can actually use that cash. So.   Feras Moussa: To expand on Ben's point too. It's almost like, we have a deal where we almost went the opposite. We don't want renewal. And what I mean by that is that one of our deals in Atlanta, we've pushed rents an insane amount on this deal. Like we're probably up 30% honestly, you know, 30 40% and we still have 98% occupants are choke when they're property managers at one day on the call, it felt to 97 and a half. And then, we called her out on it like, Oh, you're at 97 and a half, you're not a 98% anymore. And she's like, no, no, I just had someone who fucking renewed. She's back at 98, but in that deal, we have interior budgets that we need to go spend. We were literally just sitting on the side-lines. Right. Trying to, so you were kind of that balancing act is because we knew what was below market. Right. And figure out, where can we land on to where we have some people not renewing and we can go in and actually spend the money to even get, you know, that better push.   James: Yes. I think you need to look for where is the base rank, where's the base rank before you really go and spend all that rehab money. Otherwise, you can't be spending, spending, spending.   Ben Suttles: Exactly.   James: You don't know where's your base. Where is your starting point? Right. So, yes, I've had properties where we didn't even spend, we have the money yet, but we already bumped up just because people like it just because we are just a better operator than the previous guy. Right. So, --   Ben Suttles: And you'll get that. Right. Do you know what I mean? You'll just, you're amazed that how much they'll take it on renewal too. And that's great. You know, I mean, I just think it's a balancing act sometimes, but yeah, you have that, you have to kind of see where the market is and, and obviously be strategic with those dollars as well.   James: Yes, correct. Correct. That's right. So, can you give us some advice on how do you choose third-party property management? Because you guys are going in multiple markets, right? How would you give them expectations? Because a lot of, I'm sure a lot of property management company don't like, active asset managers. I couldn't control, [inaudible 59:57] I guess.   Ben Suttles: Well, hey now. [crosstalk 01:00:01].   Feras Moussa: Ben. I think, yes, I think.   James: [inaudible 01:00:04].   Feras Moussa: Well I will say though all of our property managers literally, you ask them, they say we're one of their favourites.   James: Oh okay.   Feras Moussa: So, let's not because we're active or inactive. [crosstalk 01:00:15]. Well, it's, we're doing maybe some of it, but it's more so that we're realistic. Right. I think what I was surprised to hear from them as a lot of people will just sell their property may, here's your budget, here's what you have to go, you know, accomplish. And sometimes it's not realistic. Right. I said before any of your deals because we've already worked on a budget with a property manager, we have an agreement on what that looks like, what the plan is, and we're not just picking numbers out of a hat just to make our deal work. Right. And really kind of do it the other way around. And then, yes, whenever issues come up, we're both, I mean, I hope people on the audience, I get this impression. Ben and I are pretty level headed, pretty easy to work with. And so, they understand things happen. And so, the property management companies, at least they enjoy because we're easy to get a hold of. We understand what's going on the deal. And we're realistic. And so, because I've asked them and pretty much all of them have said that we're one of, we're one of their favourites. Right. And so, --   James: Okay.   Feras Moussa: Now, that said, maybe to answer your question, Ben, do you want to answer? Do you want me to answer?   Ben Suttles: I mean, I, I think, I mean, you've got to be stern, but at the same time, you can have a friendly relationship with them at the same time. Right. But I think it's all about setting the right expectations and just betting them in general. I think it's, it's all you usually start off with referrals. Right?   James: Okay.   Ben Suttles: But I think some of the big things are as, go take a look at some of their properties too. Go secret shop those deals, so you're going to say, okay, hey you, you're a good referral on whatever market. Right. Give me three of the assets that you, and then you fly out there and you go shopping. What does the property look like? Is it clean? Is the management, is the leasing agent and the manager, are they friendly, are they knowledgeable of the property? Are they good or are they leasing it properly? All of these things go back to the property management side and, and as long as that's, that's kind of coalesces with what you've heard about them and everything. That is good. Obviously, the fee has to be online and those roles have, the references have to be there. But I think the biggest, the biggest asset test for us is, vetting the deals that they currently have, and do we like what we see, and they call them out, right? I mean, if they don't, if there's a deficiency saying, hey we went to Xyz property and there's trash on the ground, what's the deal with that and then how do they respond to that? Because that's going to be, -- there are always challenges, but it’s how you respond to those challenges is what I'm looking for on the property management side.   James: Yeah.   Feras Moussa: And then a couple of things too, just to add, I mean it's about what's kind of, what's the impression and feeling you're getting from them? Right. And, and working on a budget with a property management company is actually a great exercise to understand how they look at things and how are they going to meet what you're looking for. And I mean that in multiple, always, right? A, are they, -- is their budget realistic? Right. And B, is there pushback? I mean we actually like when they push back, right? If we say, well we think we can run payroll at x amount and they're like, well no, payroll is going to be this amount. Here are the 10 properties we have nearby to prove it. Right? That's good. Versus we've had property managers that are essential yes people, right? That'll say yes to everything and that's not at all what you want because we need something realistic. We're not trying to, we have millions of dollars at stake, we have other people's money. We're not here to just take a gamble. So, looking at that and kind of what we've found success in is really the people that are in that five to 15,000-unit range, right? The 40,000 guys in too much, they don't care about you. The guys that are smaller, there's just a lot of them. You know this first-hand. There's a lot of back offices that need to happen for a successful property management company. Right. And so, we found that sweet spot seems to be that five to 15 and then to where there our portfolio is enough volume for them, right? That we kind of get that professional preferential treatment where needed and at the same time, right, they're developed enough to be able to, kind of take on and succeed with it.   James: Got It. Got It. Very interesting, very interesting. So, let me ask some question about more the personal side, right? So maybe each one of you can add in on your own site. So, what's, what do you think is the top three things that are the secret sauce, for the success that you guys have been having in terms of closing deals?   Ben Suttles: All right. Go for it man.   Feras Moussa: Partnerships and relationships, right? Most important, first and foremost, right? Being willing to partner with brokers, property managers, other partners, partners, right? On the GP. People that can help us, would the deal, right? Whether it's helping with construction, hel

Edward “Eddie” Lorin founded Strategic Realty Holdings, LLC as a culmination of his years of experience in investment real estate and as an offshoot of Strategic Realty Capital (SRC), which he also co-founded. Since 2008, SRC has purchased over 15,000 units in more than 70 transactions valued at over $1 Billion, and has built a strong performing portfolio. All of SRC’s apartment assets were purchased opportunistically and successfully re-positioned into thriving communities. He is an affordable housing preservationist as co-founder of his venture Alliant Strategic to preserve and breathe new life into year 15 LIHTC (Low Income Housing Tax Credit) properties. He is also the founder of Impact Housing REIT, a Reg A+ Crowdfunded Platform to buy and transform neglected apartment buildings into thriving communities that are affordable. Title: Counting Pennies to Jack-in-the-Box to $1B in Transaction with Eddie Lorin  James:  Hi, audience, welcome to Achieve Wealth Podcast, the podcast where we focused on value-add commercial real estate investment. Today we have a really awesome guest. His name is Eddie Lorin. Eddie founded Strategic Realty Holdings, it's also an offshoot from Strategic Realty Capital, which was also cofounded by him. And since 2008, SRC, that's the acronym, has purchased over 15,000 units, over 70 transactions valued over 1 billion and they've built a very strong performing portfolio. Hey, Eddie, why don't you introduce yourself and tell our audience about things that I forgot to mention that I missed out.    Eddie: Hello audience. We have a very basic formula. We give people a clean, safe, affordable place to live. Treat them with respect and dignity, they stay, they pay, they refer their friends. That's it, very simple. But it's quite complicated as you know. There's a lot that goes into sourcing deals, diligencing deals, financing them, closing them, executing a business plan, getting them stabilized, refinancing and it's a whole big cycle that you'll do in your sleep if you've done enough of them. But it's not easy and that's not for the faint of heart as we know.    James: Yeah. So what do you think about people coming in new into the business and want to do this business? I mean, what advice do you have for them?   Eddie: You better have some really, really good capital behind you. Today, it's so hard, it's so competitive to get deals closed without the money raised. It's very difficult. It used to be you'd tie a deal up and any good deal would attract money, but it's not always the case anymore. That's the frustration. You gotta really be careful, you could get caught leaving deposits because you don't get the money in time. So number one is you gotta have a big pile of capital and capital that you can make money with. Otherwise, I wouldn't do it anymore. It's really a different market today.    James: So that's completely different from my understanding. I thought now we are at the market peak, capital is very easy to find if you find a good deal. Is that wrong?     Eddie: No, absolutely incorrect. What is happening is that a lot of this money that's supposedly on the sidelines raised money at 20 IRRs and they need to make a net of 15 to 17 so they say there's a lot of capital there, but they can't invest it in deals unless they can make money, which you don't blame them. So unless you raise money now in the new normal like we're doing a new fund and our pref is going to be 6% and we're going to have a promote over six, now you can make some money, but if your pref is 10, forget it. So these people out there with the equity that's sitting on the sidelines, they're still looking for returns that don't exist. So yes, there's a lot of money on the sidelines, but try to get him to go in unless there's blood on the streets, which there ain't no more blood left.    James: So are you saying that the investors who used to get like 18 20% IRR actually is missing the whole point? I mean there's no more deals like that anymore and you are going much lower returns.  Eddie: Yeah, you have to. And finding that capital, that's patient appreciative capital at a lower cost is the hard part.    James: Okay. So what do you advise for the people who are still waiting for that high investment return?    Eddie: Go find cheap capital.    James: How are you finding cheap capital?    Eddie: I do it every day and we talk to probably five, 10 people a day. We have CBREs or brokerage firm going out and talking to investors. We're just banging the doors every day. It's really hard; even for someone established like me.    James: So do you syndicate your deals? I mean from private investors or do you use private equity?    Eddie: Depends. I use institutional equity, I use private equity firms and we also syndicate individual deals, it just depends. Every deal has its own DNA and every deal has its own character and you have to decide per deal what you're going to do and what your business plan because it will affect how long you sell it or hold it, whether you're going to sell or refinance. The whole gamut needs to be taken into account and it's all based on the cost of capital and the investor temperament.    James: So why don't you take an approach of not doing deals right now since a lot of people expect a lot more returns right now?    Eddie: Well, like everyone, I have an engine to keep going and there's never a good time to do a bad deal or a bad time to do a good deal. Doesn't mean there are no opportunities, It's just the returns are lower. Doesn't mean they're bad deals. With interest rates, the 10-year treasury is still at two and a half, what should you expect as an investor? You shouldn't expect more current return than three or 400 bips with upside. So that means 6, 7%. But when people are looking for more, that means they're in the middle so you need to go around the middlemen and go straight to the investors and that's what is most important. And those investors have to be realistic and that's the challenge.    James: So when you're talking about middle man, you're talking about people who raise money from investors and come to you because they are taking a cut?    Eddie:  That's right.    James: Got it. So you're talking about the equity raises. Yeah. For me, we raise money directly from our investors.    Eddie: That's great.    James: We usually don't have a problem with the middle man taking a cut. But there are a lot of people who are doing equity raises, function nowadays, right?  Eddie: If they raise their money and it's too expensive so they can't do deals today and their money's going to go back in a year or two. And then these investors are going to say, oh, well, I better get real, meaning the institutional investors.    James: Got it. Got it. So let's go back to your business model, right? So you have done almost a billion dollars in transactions starting in 2008. Why was it starting in 2008? Is it because that was the bottom you identified and you started it?    Eddie: Well, I worked for another company that was part of the great recession and we all parted ways and scrambled and started over, that's why.    James: Okay, okay. But how are you adapting enough to start in 2008 because that was the time where everything was low?    Eddie: Well, 2008 actually was still slipping. It was a falling knife. 2009 and 10 were really the bottom and we bought and flipped houses in 2008 and 9 because the deals weren't making sense and the equity wasn't there. But eventually, our first deal in Vegas in 2010, we paid 22 a door. 28 a door for a property in San Antonio in your backyard.    James: Wow! Yeah. I remember San Antonio when I was starting to buy it was like 35 or 40 and it started growing quickly to 50 55 within six months. It's crazy.    Eddie:  Yes. That's right.  James: That's interesting. So tell me about your business model because I mean every time I talked to you, this second, I'm talking to you, you are very, very passionate about giving people a good, safe housing and that's it, right? Which is very, very important. And it's hard to find people who are passionate about that. Can you tell me about your passion about why do you believe that's an important objective for your business?    Eddie: Well, I grew up very poor and I know what it's like to not be able to rub two nickels together to figure it out. It was a treat to count out $2 and 12 cents to go to Jack in the box. I remember those days and the humiliation associated with it. And everybody deserves a good place to live and to be with respect and dignity. So I've always taken pride in trying to take blight and make light. I think there's value in creating thriving communities out of really dilapidated stuff. And to me, that's my challenge and that's how I create value. Any schmuck can buy a building and ride the market up. The real talent is buying something and seeing the value and the vision and executing a plan and taking that property from blight to light.    James: Got it. Got it. So how do you find that kind of deals nowadays? I mean, a lot of deals has been rehabbed multiple times.     Eddie: But some of them are still owned for 30 40 years. I'm looking at a deal in New Orleans, 37 years it's been owned by the same family. As I said, there's never a good time to do a bad deal or a bad time to do a good deal. You've got a nation full of a huge number of apartment complexes and there's a ton of older owners that have bled to death in terms of cash flow and there's 2- $300 in rent bumps potentially there and still remaining affordable. But getting that pop is only a result of them starving the property of capital. So when they're ready to sell, then you can go in and refresh, it's pretty simple. It's just you got to look at it a lot more deals to find that works. But again, you must not be looking for 20 IRRs anymore, it doesn't exist.    James: So you've been in that kind of deals where people own it for like 40 years, I mean, the sellers and the brokers are going to bump up the price. I mean even though there's a value-add for the buyer, but I think the seller still have that because the market is so good.     Eddie: Did you go mute? There you are.     James: Okay. Sorry about that. So what I'm saying is even though the property has been owned for a long time, I think the brokers and the seller do expect a high price I guess, right?    Eddie: Yes, but you're solving now to a six and a half or seven exit on your cap rate on cost versus we used to underwrite to an eight or a nine because there's so much demand, there's a certain amount of just appreciation that's going to happen with the shortage of housing that's affordable in this country. And the workforce housing is a BNC product is still going to be, you know, you're talking 30 40% of replacement cost and growing because replacement costs are so challenging. So the value will eventually go up as well.    James: So what's your strategy buying deals at this peak of a market? I mean what about loan strategy, investor expectation? I think you talked a bit more about the [13:32inaudible] investor, but what about the loan strategy or Rehab Strategy? You know, how long you're going to hold date, what's your strategy like? Because we believe we are at the peak of the market.    Eddie: I don't think we're at the peak of the market. I think we're at a plateau. I don't see us going back down, there's too much demand for housing period. Not for the new stuff, but for our stuff, the NC product, will continue to have a demand, especially a good quality product that's affordable because more and more people are coming off the couch. I remember that when they all doubled up and the kids were living at home, they're all starting to start their lives and it's going to continue and a lot of the older people are selling their houses and they all want to rent as well. They don't want the responsibility, they don't want to take care of anything. So you see the demand is still tremendous and I don't see any sign of a liquidity problem, which is what causes, well, 9/11 cause the recession in 2001 people got spooked after the DOTCOM bust. Seems like PE ratios are still reasonable in terms of the global markets. And of course, the great recession was about the housing over leveraged. Well, I don't see overleverage, I still think there are condo buildings that still won't sell until 50% are sold so you can't even get a loan on condo development. So you don't have a de-glut of condos out there and houses are all gobbled up by the Blackstones of the world and they're on a rental scenario and that's a different person who rents a house versus an apartment. I just don't see, I just think it we're plateauing, we're not at a peak. As long as there's demand, this world is about supply and demand, period, no matter what it is. Whether they're tulips or apartments, and as long as there's tremendous demand, especially at the low end, we'll be fine. So you got to find the niche,    James: Find a niche. Yeah. Yeah. So let's go to the market. So you are in California and you are buying nationwide, is that right?    Eddie: Yeah, we're buying in the beltway. I love the Maryland area with Amazon coming by and we own in Florida. I love Texas, Dallas mainly. Las Vegas, Colorado. And I'm finding stuff that's distressed still. Now, it's not economic distress, it's just distressed. It's not keeping up with the market and the capital, people bleed their properties. So there's always meat on the bone if you can find it. I've been doing this a long time.    James: I can see that now. Absolutely. There are so many things to learn from you. How's your team being set up right now? I'm sure you're not one person doing this. Can you describe how your team is set up in terms of asset management, acquisition analyst, transaction and all that?    Eddie: Yeah. We have probably four in the acquisition team to analysts and two guys going out. I have two construction managers to execute the business plan. We use outside contractors to do our work. It still takes work to ride herd on them and then, we have two asset managers and accounting, but based on that, you know what, 10 or 12 something like that. You know, it fluctuates. Some people work from home and they're busy and they are traveling and so you don't always think of them and they're not in the office, but they're out working. I don't care as long as you do your job,  James: How do you split your time managing them? Do you have someone who's assisting you managing the whole operation or do you manage your whole operation yourself?    Eddie: Well, my head of asset management primarily deals with all the operations and I only talk to him once a day and make decisions. Like he just popped in and I said, I want a podcast so I'll talk to him after. But I spend more of my time on acquisitions, analysis, and investors, you know, dealing with them and the lenders.    James: Okay. Yeah. Because like right now, I think I'm at 1300 units and I'm trying to see how do I grow to your level. And I'm trying to figure out how do people with 15,000 units manage their whole team?    Eddie:  I'm down to 7,000 now.    James: That's still a huge amount. But you have an acquisition head, I mean, asset management head, which has acquisition and then you have accountants. Okay, got it.     Eddie: And construction is really important.     James: Got It, got it. Does construction mean that you're talking about remodeling and Rehab and all that?    Eddie: Yeah. Rehab, getting the bids together, putting the business plan, dealing with the draws from the lenders, all that stuff.    James: That's a lot of work, especially draws from the lenders. Have you ever thought about other asset class other than multifamily or you just focused on multifamily?    Eddie: I don't feel, especially now as we talked about in the beginning, the credibility to raise money today for anything other than what you do. You get pigeonholed and I'm fine with that. They don't want to take a flyer. Wait, I thought you'd do apartments so you want to do a retail deal? I didn't even try. It's hard enough to raise money staying in your lane. Switching lanes, I just think as suicide, my personal opinion.    James: Yeah. I mean everybody would be doubting you, right? What does this guy know about something else, especially after you built so many skills and credibility in one asset class? So got it. Let's talk about value-add because I'm sure you are an expert in value-add, right? Because you have been doing a lot of units and all have value-add. So what's the most important value that you see whenever you take a project, what's the most, not most of but most valuable value-add?    Eddie: Well, it's really just whatever the marketing walk, as we call it. What do they see as they go from the leasing office, the amenities there? Is it a nice clubhouse and then you want them to see outdoor fitness, social areas with barbecues, outdoor kitchens, state of the art fitness center even though they'll never use it, they want to see it. They dream of using, honestly, they don't. And then just general dog parks and then you go inside the units and as long as they're clean and safe and feel like they're well done, that's it. And then plenty of units that don't even have that still. The old strappy pool furniture and ugly coping and shitty rod iron that's rusting. That kind of stuff is what turns people off.    James: So how do you standardize this process in terms of implementation across your property?    Eddie: Well, I rely on my head of construction who basically knows what we do. And you have a certain bucket for if you're buying a high rise, it's a different feel. And we bought a high rise in Vegas and it's like Vegas. We have a really cool downstairs, we took an Italian restaurant, a 3000 square feet and transformed it into a club room and Yoga Studio, fitness center, all that. I mean, it's really high end. That's one thing. Or it's more of a lower income area. I mean, but those are the average rents are 1400 bucks. If your average rents are 800 bucks, you're going to be doing lower end stuff, but you still want to give them the fake Gucci bag, so to speak.    James: Got it, got it, got it. So one thing I read in your website is you would like to internalize older mentality, operations management and I think that's important, but I find it just so hard to implement that to our property management, even though we own our own property management company. And how do you do it in your operation?    Eddie: Well, I do not do property management because I'm all over the country and I don't want to make a decision on an asset based on the fact that I have employees there. So, I have different crews. I'm the client, I get a lot of respect as a result of that. We have good relationships and I just try to instill that mentality with all my people and it just works, I don't know. There's art and science and business. That's the art, I can't describe it. The science you can underwrite, you can do all these things, but how does the property smell when you walk in, is it friendly? That's the art of it. Do people feel comfortable and appreciated? Again, that's the art of the business that you can't make it science, it's art and you need both. You asked the question but I can't answer it.    James: Yeah. Yeah. Because it's always hard whenever you have third-party management managing your property.    Eddie: No it isn't it.     James: It's not? Okay.     Eddie: Because you fire them if don't do what you need them to do. And they wouldn't be in the business if they didn't want to serve people. And you just got to inspire in them and give them the tools so they feel comfortable that you're giving everything they need to do to do their job, no matter if they work for you or not. And I feel like it's better than they don't work for me because I always have the threat. Oh, Eddie's coming. They're not like, Oh, I [23:40inaudible] because he's got employee issues.    James: Okay. So that's interesting. And you also mentioned something about high touch investor relation culture. So how do you do that with your investor base?  Eddie:  Oh, it's just about communication and contact. Anybody calls me, I answer the phone and call them back within a day. That's it. It's a really simple formula. If they don't need you, they don't want you to bother them unless you got another deal. But if they got a problem, they got a K1 issue if they call you, you better call him back and say, hey, we screwed up. We're doing this. Our accountants behind, there are new tax laws, whatever it is, communication is the only way. And not to dodge or duck someone like a wuss, you screw up, you face the facts and say, hey, I screwed up, but we're doing the best we can. I promise you that's it. It's really basic.     James: Do you delegate your investigation or you are direct to the investment?    Eddie: Absolutely not.     James: Okay.     Eddie: I mean the reporting I don't do, accounting does, but if someone has a problem, it's me. We're trying to do a deal, it's me.    James: Yes. Yes. I think that's important too. So coming back to the low-income housing tax credit, I think you own like 15 of those or you have owned it in the past. How does the whole low-income housing tax credit business work?    Eddie: That's a whole podcast.    James: At a high level. At a very high level.  Eddie: The government gives incentives to banks and insurance companies to invest in affordable housing. That's how affordable housing gets built. Okay? In essence, free money. So it's free equity, but they're getting a tax loss as a result. So let's say it costs $100,000 a unit to build something, for simple math. It's more now, but whatever. And you get a loan, bonds for $50,000 and there are tax credits that size up to about 35,000 and that leaves $15,000 left to build it. So that $15,000 usually, comes up with from the government, they give you subsidy loans and all kinds of low-interest loans. It's a very complicated business, but that $35,000 of equity disappears after 10 15 years. So now your basis in the property is only the $15 and 50 on the loan, which is amortized. So now you're able to offer lower rents because you're not paying a return. You're paying a tax loss on that 35 bucks if that makes sense. And we buy those properties. My affiliate partner, they supply the tax credits, My business with them, I've been a joint venture, we buy those deals after they're done, after year 15 and reinvigorate them and bring them up to maximum allowable rents because the rents do move up based on area median income. And again, it's very complicated but those bases and that's a business that's a unique niche and we're good at it.    James: Okay, got it. Got it. So it looks like 10 to 15 years, you have some kind of assistance from the government and after that, you can bring it up to your market value and that    Eddie: No, you bring it up to max allowable rents as decided. It extends beyond. The tax credits go away, but the rent restrictions go from 30 to 55 years and you have to live within those means. And that's how they remain affordable.   James: Got it, go it.  You also have a REIT, I'm my right?    Eddie: No.    James: Because I say something on REIT. So is that right?    Eddie: I tried to raise a reggae plus I broke my pic, lost a ton of money and you just got to move on. But I thought I thought the world or the country was ready for the ability to invest as low as a thousand dollars into housing, but I didn't raise enough and I had to raise enough for the SCC. So I scrapped.    James: Yeah, I didn't know RAGA, you have a minimum to raise and you have to raise it to that amount.    Eddie: Yeah. You're spending $800,00, you got to have some minimum to make it work. Otherwise, you'll never be sustainable. That's what happened. I lost lots of money. Your first loss is your best loss. Maybe in five years, it'll change, but...    James: interesting. Interesting. So can you give us some advice on what is your secret sauce to success? I mean, like one to three things, why do you think you are successful so that people can learn from it?    Eddie: Creativity, tenacity and grit. I'm sorry to be so vague, but it's really 30 years of experience. That's the art of the business. Anybody can learn the science, the art comes from your gut and breaking your pick and getting your teeth knocked down. There's no other way to describe it. It's a very tough business. It's a great business, but it's a very tough business. That's why people burn out. There are so many things to juggle and so much risk you take that investors have no idea what you go through. That's the funny thing. And they all want their returns and they want this when you take the risk, and it's a funny formula, but it works. You got to do it but there's no secret sauce other than grit.    James: Have you ever thought about, I'm just going to give up all of these and go passive, invest in someone else?    Eddie:  No, because I don't think they can do it like I can. That's why I have built up 30 years of experience. I'm getting better at what I do. Why would I jump ship now?     James: Yeah, because sometimes as you mentioned, it can be very tiring, right? I mean, sometimes we do a lot of hard work and sometimes it just feels sad that some passive investors don't see how much we do in value-add.    Eddie: They have no idea and it's a shame because they really think they know and they have no idea because it's our job to make it turnkey and easy for them. But that's a blessing and a curse. Because the blessing is they have a good investment and don't have to think about it. But if they only knew what goes into it, they would help us as advisors. And there's nothing you can do about it. It's just the way the world works.     James: Yeah. Yeah, that's true.   Eddie: The more you live, the more you know, the less you know, the more blissful you can be.    James: Especially on the mortgage side of it and the multifamily lending. If you know a lot of details about how that whole industry works, you will feel sad and say, oh my God, I should have done this. But it's all part of learning.    Eddie: Yeah, it's all saw dust. You can only move forward and learn from what your mistakes are. But people that are looking for silver bullet and perfection doesn't exist, it really doesn't.    James: Got it. Got it. Got it. So do you have any proud moment in your life that you can think about it when in your later part of your life and really be proud of it? Is there anything that you want to share?    Eddie: Well I think I'm really good at that staying with things. I had a deal in Maryland that the county exercise the right of first refusal. So I went through all this effort, due diligence and then all of a sudden, the county had the right to buy it out from under me. And I'm like, what? Are you kidding? And I pulled it out on my gut and I went to fight, I hired a lawyer and I hired some politicians to help me out. And long story short, we won the deal and we own it today. And that's what keeps me going is that I can win. I don't always win when I do, then it's glorious because I beat the system. And that's fun.    James: Yeah, that's crazy. How can a county have the first right of refusal, right?     Eddie: It's the law.    James: In some places, I guess. So what about looking at your daily habits, what do you think is some of the more important habit that you think makes you very successful in your day to day life?    Eddie: I wake up every day and be thankful for what I have. And try not to compare myself to others because everybody you look at, has their own story and you've got to remind yourself this is my story. I'm doing the best I can and accept the crap that you're dealt. And you can fight it and piss and moan or you can just deal with it. The day you accept reality and accept what's happening that's where happiness comes from, plus thankfulness. Just emotionally staying positive and realistic. That's to me. And then you've got to exercise and you got to be kind to people and do the right thing. And I'm just very straightforward. I tell people like it is, some people don't like it, I don't care, that's who I am. I'm not gonna apologize for who I am. But sometimes, you've got to be more politically correct, but then you look at our president and you say, really? Do you? How'd that happen?    James: Awesome. Awesome. So last question. So can you give three to five advice for newbies who are trying to get started in this business, in multifamily rehab and value-add?    Eddie: Number one, go to work as a property manager. Learn what it's like to collect the rent, lease an apartment, turning unit, and deal with all the day to day action. That's the most important thing. If you've never run a property, you don't understand where the revenue comes from. There are people who need to be happy and pay their bills. So that's number one, be a property manager, be a leasing assistant, be a marketing director at a property. Learn the business that way, then work for someone who actually owns property like us and then hopefully, go learn how to be a lender. Take finance courses, do everything you can in your life to understand all aspects of the business. Then nobody can snow you.     And number four would be in construction. Learn construction costs. Learn what it takes to turn a unit, what materials costs. All these things. Learn, learn, learn, learn, learn. Because most of the people that come out of school, they go straight into a big private equity company and they don't have any clue how to turn a unit or what the essence of this business is. And that's your competitive advantage because people can't take advantage of you because you know more than they do and they smell it.    James: Yeah, absolutely. Absolutely. Well, Eddie, it was nice and awesome having you on the podcast. Do you want to let the audience know how to get hold of you? If you want people to reach out to you.    Eddie: Sure. Strategicrh.com, Strategic Realty Holdings, Alliance Strategic, alliantstrategic.com. We're also there too; working on opportunities, zones and affordable housing and workforce housing. Always happy to be of service. This is what we have to do. We have to pay it forward. We all had help when our lives and we have to help others. That's my goal.     James:  That's awesome. Awesome. Very happy to have you here. And I think that's it. Audience if you guys want to join us on Facebook, you can go to Multifamily Investor's Group on Facebook and join us over there. And that's it. Thanks for being here. Thanks, Eddie.    Eddie: Thank you.   

In episode #123 we have special guest Matt Cremona, All going to Makers Central. Buying a huge truck. Zack moving and so much moreHelp us grow on Patreon https://www.patreon.com/CreatorsCollectiveHuge thank you to All of our Patrons! Especially Darren Mattes, Caleb Harris of YouCanMakeThisToo and Judith Grass.New Patreons:You can listen to us on iTunes, Google Play, SoundCloud and many other placesYou can join us live Thursdays at 10 AM eastern on the Creators Collective Podcast https://www.youtube.com/channel/UC_0AZEDUA-UWfoSxLil7gBgWhat’s new/ what are we working on?Matt: Hand tool cabinet https://www.youtube.com/watch?v=ErEhwXlJKTE Makers CentralZack: Flights and Makers Central, and moving!James:Q&A: scott walmsley: ​are there gonna be any veneering projects in the guild now you have a vac bag would love to see your take on a demilune tableRichard Maske​: I want to start slabbing. What should I buy to use with a 18" chainsaw to slab small logs?Make Brooklyn: ​Matt: Are you planning to learn to play the guitar following your course at crimson?Creators Photo ChallengeDue next time:Joke of the weekMy wife is really mad at the fact that I have no sense of direction. So I packed up my stuff and right.What’s new/what are we watching/reading?Matt: Want to buy a truck:James: How to make a swiss Cooper Hand Made Bucket: https://www.youtube.com/watch?v=v3BWyzth1_0&list=LLbMtJOly6TpO5MQQnNwkCHg&index=13Zack: Moving!!!Favorite tool/product this week?Zack: Iso Tunes “ZHF”Matt:James: Scraper plane. https://amzn.to/2V8k3ScHostsJames Wright: Wood By Wright https://www.youtube.com/channel/UCbMtJOly6TpO5MQQnNwkCHgZack Herberholz: ZH Fabrication https://www.youtube.com/channel/UCDdZMJDDpyvI9WJyY7IZP7wWilliam Walker: Wm. Walker Co. https://www.youtube.com/channel/UCievvwx_-UU-rP28103rUCwMatt Cremona: Matt Cremonahttps://www.youtube.com/channel/UCDpL0v-Ifie7u05lbfO3zJQSHOW NOTESIntro and outro recorded and produced by Jason Wright http://withamic.com/

James and Angel are at the market together. They buy fruits commonly found in the Philippines. Tagalog Transcript: James : Mabuti naman na nasamahan mo ako sa palengke ngayon. Salamat ha, Angel. Angel : Walang anuman James. May gusto rin kasing ipabili ang nanay ko na mga prutas. James : Bibili rin ako ng prutas. Mahilig kasi ako sa masustansyang pagkain. Angel : Eto o, ang lalaki ng saging. Hinog na siya, kasi dilaw na. James : Gusto ko naman ang mansanas na ‘to, yung mga kulay pula. Angel : Kuha din tayo ng ponkan. Siguradong magugustuhan ito ng nanay ko. Mura pa yung presyo niya. James : Paano kaya itong langka? Medyo mahal siya ngayon pero matagal na ako hindi nakakakain ng langka. Angel : Sulit na siguro ‘yan sa presyo niya. Uy, bili din tayo ng pinya, pero patalop muna natin sa tindera. James : Oo, mahirapan kasi gawin ‘yan ng tama… yung tinatanggal mo yung mata ng paikot. Angel: Nagbilin pala nanay ko bumili ng papaya. Kuha tayo ng berde, para gamitin ng mama ko sa tinola. James: Tamang-tama, bibili din kasi ako ng papaya. Pero yung pahinog pa lang, kasi hindi ko siya agad makakain. Angel : Uy, ito oh, ang laki ng pakwan. Baka hindi namin maubos to. James : Ipahati na lang natin sa dalawa, para parehong tayong meron. Angel: Matamis kaya siya? James: Sa palagay ko matamis siya. Angel: Tara, patimbang na natin ito. English Translation: James : It’s great you were able to accompany me to the market today. Thanks a lot, Angel. Angel : You’re welcome James. My mom asked me to to buy her some fruits for her, anyway. James : I’ll be buying fruits too. I’m fond of eating healthy food. Angel : Here, these bananas are big. They’re ripe already, since they’re yellow. James : I want these apples, the red ones. Angel : Let’s get these Ponkan oranges too. My mom will like them for sure.They’re pretty cheap too. James : How about this jackfruits? They’re a little expensive now but I haven’t had jackfruit in a while. Angel : I think it’s worth it’s price. Hey, let’s buy some pineapples, but let’s let the vendor lady peel it. James : Yes, it’s quite difficult to do it right… carving out all those “eyes” in a spiral. Angel : My mom asked me to buy some papayas. Let’s get a green one, since we’ll use them for chicken broth. James : It just so happens I’m going to buy a papaya too. But I’m going to get one that’s just about to ripen, since I won’t get to eat it at once. Angel : Hey, look at how huge this watermelon is. I don’t think we’d be able to eat it all up. James : Let ask them to cut it into halves, so both of us will have some. Angel : Do you think it’s sweet. James: I think it’s sweet. Angel : Come on, let’s have it weighed.

In this episode of the Houston Home Talk, Cindy West from NRL Mortgage and James talks about the process of getting a mortgage loan, interest rates, NRL Mortgage loan programs you can apply to and other things such as Cindy’s career trajectory and how her knowledge in forensic accounting helped her in her role as a mortgage loan officer. QUOTES“You have to make sure that the house is not listed for sale, because that’s a red flag in mortgage, before you cash out.”“The buying power of people changes significantly as those rates go up.”MENTIONSContact Cindy:Phone: 832-370-7373Website: https://cindywest.nrlmortgage.com/SHOW NOTES[0:02:10.9] How Cindy got into mortgage lending[0:03:32.4] How forensic accounting works[0:08:02.3] NRL Mortgage loan programs[0:14:25.1] James and Cindy talk about interest rates[0:21:04.4] The difference between pre-approval and pre-qualification[0:32:24.5] Get in touch with Cindy!Full Transcript: [00:03] INTRO: Welcome to Houston home tall, featuring all things real estate in the Houston area. We'll interview real estate professionals, local business owners, and special guests from right here in the Houston community. This is where you get the inside scoop about what's new in real estate, new community openings and business openings, and much more. The Houston home talk show starts right now.[00:33] JAMES: All right, welcome guys. This is James with Houston home talk and I am joined today by my good friend, Cindy West in our El mortgage. Um, how are you doing this morning, Cindy?[00:45] CINDY: Hey James. I'm great.[00:48] JAMES: Awesome. I'm doing great. It's a little chilly for us here in Houston at a blistering 70 degrees. Now, just joking. People in the Midwest laugh at us when it gets too 40s. [01:00] CINDY: Yeah. Yeah. [01:02] JAMES: It is cold for us but I am glad to have you on. It has been an interesting ride as far as interest rates and a lot of things going on specifically this year. You have been in the business for a few years now. You've done really well and I appreciate all your insight. Just to kind of set the table for everybody, so sending and I have known each other for about three years. We've been working together. You came to visit me when I worked for a home builder and you were one of very few, really probably the only one person that really would come visit me because everybody else was scared to come see me working for a home builder because they just assumed that they could get no business from a home builders onsite salesperson which was not the case. [01:52] CINDY: No. [01:52] JAMES: I'm glad that you've been very tenacious and the way you work and I admire your work of it. I see you on Saturdays, Sundays. I see everywhere. You have gotten a lot of knowledge and your work ethic is been very, very admirable. What I want you to do is just kind of introduced yourself. You've got a very interesting background. Introduce yourself to the audience and tell us a little bit about your background and how you got into the mortgage.[02:22] CINDY: Okay. Sure. Yeah. I've been in the business three years ago and I'm like, my background started with auditing and taxes. I did that for several years and then I relocated to Los Angeles and I became a forensic accountants, which is very interesting. [02:39] JAMES: Okay. [02:42] CINDY: Pretty much what I would do is I worked with people getting in divorce, determining child support, alimony, division of assets and valuing businesses. Pretty much I would find the money and determine what the individual's cash flow was for child support and alimony. Then after that, and I relocated here with my family. [03:04] JAMES: Okay. [03:05] CINDY: That's where I met Chad Freeman and he is a manager for Nations Reliable Lending. Tell me about the job. My personality and my background was the perfect fit and my daughter is going into school so I thought, it's a great time to get back into the workforce full time. I took the test and passed it and then I'm on my way ever since.[03:32] JAMES: The forensic, you got to give me a…tell us back a little bit more. The last time I hear forensic, I usually think, CSI and one of these criminal shows when I hear forensics. Break that down a little bit more as far as what you did with that that as forensic accounting?[03:55] CINDY: Yeah, so pretty much, I mean it has to do with documentation. [03:57] JAMES: Okay. [03:58] CINDY: Thing at paperwork, a little bit differently and people represent themselves based on the tax return. I only make $25,000 a year when you're living in a half million dollar house and you drive a Mercedes and I could see all the charges on your credit card for limousines and things of that nature. I would pretty much hunt down the money. [04:21] JAMES: Got it. [04:21] CINDY: Figure out what the true cash flow is because people have businesses, they write off all their personal expenses, cellphones, cable bill, I'm 100 percent of their auto. All those things are not true. Business expenses, personnel. They drained the company, and they want the write offs. They pay as much taxes. From a divorced stamp, that's now your cash flow. We add back all this personal offenses as perquisite come up with somebody's true cash flow. Then that's how we figured out how child support and alimony.[05:00] JAMES: Okay. I see. Then the connection with that and the connection to the mortgage side of the business because a lot of what you were doing and that career really translates into you being a mortgage lender because a lot of the details that come along with, especially, specifically you brought up self-employed because those are the biggest challenges when it comes to the mortgage. [05:24] CINDY: Yes. Yeah. [05:26] JAMES: How does that background, how did that help you on the mortgage side because like I said, I know you've only been three years but you've been…you've been very, very successful and the time that had been a mortgage lender. How has that helped you in being successful in what you're doing now?[05:42] CINDY: Definitely the tax knowledge and the attention to detail and I'm looking at paperwork a little bit differently. Very detail oriented, which in mortgage you have be, when you looked at the paperwork upfront for a year under contract and kind of figure everything out ahead of time instead of having issues under contract that who I wish I would've seen this or looked at it closer than. Definitely the tax return and the tax knowledge has helped me with understanding the actual tax return for the self-employed borrowers. [06:18] JAMES: Right. [06:18] CINDY: You can have a schedule C which is on your 1040 where you can have 1065, which is a partnership returns, that's corporations or your 11 languages are C corps. Understanding how somebody gets paid out of each one of those is quite really friendly. You can get paid out of distribution. You can get paid through salaries and wages or dividends depending on what X return you're filing. That's definitely given me an edge on a fast track and dealing with more sophisticated buyers would complex tax returns. The attention to detail, I'm looking at paperwork and just knowing. I've seen all these documents who I've been working with them for years. It's definitely helped.[07:08] JAMES: No. That definitely explains a lot because I've had a brief stint as a mortgage lender as well, so I understand the level of these. I don’t think a lot of people understand it and unless you've done it. There was no way. As a realtor, most realtors, all we care about is the loan approved. [07:29] CINDY: Right. [07:30] JAMES: Always funded. Those are the words that kind of care is, are we funded. Okay. When you're behind the scenes, the level of detail. There're so many moving parts. There's so many moving parts. I appreciate you guys more because I've had a boost said joining and kind of understand now that there's so much that goes on behind the scenes. Someone like yourself with that background and being very detailed. It's so important. It really is. Now, I know you guys have a program because one of the things that I work a lot with, I work a lot with home buyers will still be sellers who have a home to sell before they purchased their next home.I do a lot of new construction and so typically, we have a contingency to where the only way they can purchase the new house is if they sell the current house and multiple cases. I know you guys have a product that's kind of design and you don't have to go into a whole lot of detail, but I know that's something that I wanted you to share a little bit about because I think it's important for people to know that, that you guys have that product. I've dealt with a lot of lenders. I don't know anyone that has a program like this. I might be wrong. I know anybody that has that program. Tell us a little bit about that. A little bit about that program.[08:53] CINDY: It's a fantastic program because people that are looking to buy and I say new construction, it doesn't have to be new construction. It can be anything, but who this product would best serve. Somebody that finds a house that they fall in love with. That they really want. It could be through a builder. They might find a lot, the perfect lot and I called a stack or on a green belt with backyard. Let's say water way or anything specific that they might lose if we wait to sell their house. [09:32] JAMES: Right. [09:32] CINDY: That's the emotional side of this product is somebody that's motivated to move forward, doesn't want to wait. I think this product also is more beneficial to people in the higher price points a significant equity. Pretty much in order for this product work, you have to have at least 30 percent equity, the partying residence, and you need 20 percent down payment to move forward on the purchase.Now, you can obtain gift funds for the 20 percent. However, you do have to have at least 5 percent of your own friends. That would mean 25 percent now. You can get the Gift Front Lens of 20. You bring 5 percent. The 30 percent equity, if you have your house paid off or have significant equity, meaning like 30 percent or more and you don't have the cash in bank, you can do a cash out refi, pull out 20 percent as long as you leave 30 percent equity in the parting residence. You can pull out money to use that on the down payment for the purchase side, [10:43] JAMES: Got it. [10:45] CINDY: Yeah, you have to make sure the house is not listed for sale because that's a red flag and mortgage, so before you get a cash out. It's a purchase just like any other purchase, but we are eliminating that just from the ratio. You actually will have two mortgage payments until the house is sold. The only stipulation is that their house has to be listed for sale prior to the purchase of the new residents. That's it. [11:10] JAMES: Okay. [11:11] CINDY: That's something where if you're building builder relationships, that's a good thing to have because the builder that's going to identify that and it's going to call you, you're marketing this product and lease the house for sale. That's the key is you're, as a realtor, you're getting the leasing and hopefully, the buy side as well, because you're going to get a walk in client that falls in love, has a house to sell and that builders not going to wait, want to wait three to six months for the house to sell or probably does not want the contingency offer because if it's in a higher price point, we might take a little bit longer. Or if it's a flooded house that you have for sale, who knows how long going to take it so. It's a great product that allows people to move forward without waiting for the house to sell and then they don't lose equity. They don't have to half the price. They just have to afford the two payments[12:07] JAMES: Right. There're a lot of people that are in that position to be able to do it especially like you said, in a higher price point. This helps them not lose out because I've seen it on several occasions where they probably could qualify for both financially, but this product, like I said, this product wasn't around. I knew I have no knowledge of that product a few years ago. It's a great option for people that are…that are looking to buy another hall or build either one. I'll make sure I post your information because there're people out there that want to reach out to you and get a little bit. I know there's probably a little bit more detail, which you probably just speak with somebody in person. Speaks somebody over the phone to get a little bit more detail about their situation and how the product help, but I know it's a great product and it can help a lot of people.[13:05] CINDY: Yeah. Builders love it. I'm not competing with Mortgage Company. They're in house lender to add on to their business, to help it grow. I'm not looking to compete with them. I usually can't let their incentives. [13:17] JAMES: Right, yeah. [13:18] CINDY: This can eliminate the contingency offer and it's very attractive to builders and playing lots of calls and emails from builders I've ever even met before clients. Again, it's a great…it's a great marketing tool to get connected, to build a relationship and help builder build business and great for realtors to use that as well.[13:45] JAMES: I know a lot of builders are work with a ton of them in a new construction kind of what I specialize in more than anything. Having worked for a few builders myself personally. I will make sure they all know about this. Like I said, anybody is working for builders that might be watching this. I'll make sure they get you a contact because the onsite…where the onsite, salespeople or about getting…they don’t get paid to do loans. They get paid to close homes. [14:14] CINDY: That's right. [14:14] JAMES: Having you as a resource and in those situations is a great, great thing to have a speaker. I'm speaking from experience. I know one of the big things and challenges that I've seen so far this year are the interest rate. Rates have slowly just crept up and I back in January and February, I was telling people that rates are going to increase and unfortunately they have. Now we're now almost to the end of the year and so one, I guess, what are we looking now. FHA, I know everything obviously based on credit scores, but what kind of averages are we saying on FHA, conventional, and then what are we looking at? Maybe first part of 2019 that you kind of thing, well what may happen, which rates come from that first quarter?[15:09] CINDY: Well, definitely rates have slowly increased. They're in the fines, so again, to then plan your LTB FICA score, debt information, that I've seen. ORS, donate them five again. Sometimes they come with the discount, to the rate of that. Rates are still great. There's still near historic. Still a great time to buy. Do not wait to buy a house. The rates are going to go down. Of course I don't have a crystal ball. That's my said, good judgment indicates that I think are going to probably stay or climb a little bit. The interest rates a tight to this, excuse me, the 10 year treasury. [15:53] JAMES: Right? [15:53] CINDY: Usually when the Fed announces the direction of interest rates, they going to use some hikes, the market has a tendency to accelerate that. If they're going to say an increase in December, market goes higher before that. It's stable. It's still…they're still near historic low and they're in the five and would not wait 1 percent increase in the interest rate. Will make it 13 percent increase in your payment. [16:22] JAMES: Absolutely. [16:23] CINDY: A thousand dollar monthly payment. Your payment will go off to a 103 or extra $130 a month. That's pretty significant. People always talk about the score and want to increase it. I tell them, I said, you time you increase your score, you're going to be offset by the higher rate.[16:43] JAMES: Right. [16:44] CINDY: It's a lot. [16:46] JAMES: Yeah. That could take somebody from qualifying to not qualify. The bump in the rate and for people and for some people that might be borderline or maybe close anyway and you wait. You're not really winning and a lot of cases. You're not winning by waiting a. I try to encourage people, if you find…if you find a home that you're interested in now, don't wait because literally, half of point or all the point can make a significant difference. It can't really be the difference when you qualified or not in some cases. [17:19] CINDY: Yeah. Yeah. Or you have to drop the purchase price or have to come up with no money down to offset that. For every $10,000 you put down in a house, your monthly payment will change by $20,000. [17:32] JAMES: Right. [17:32] CINDY: $20,000 will only make $100 a month difference in your payment. That's not a lot of movement with significant $20,000 down payment. You're better off to do it now because rates in the fives are fantastic. I know people go back to the past and threes and fours and the confused I've seen. Ladies and gentlemen, that was history. You make three for a lifetime. [18:06] JAMES: Yeah, that's just… that's with sales. [18:04] CINDY: Gosh, yes. [18:04] JAMES: You've set the sale that made you want it. [18:08] CINDY: Right. [18:08] JAMES: It's funny when people started talking about the rates now, how they're going up and I tell people, before the crash, it just rates are in the 60s. [18:18] CINDY: Yes. [18:19] JAMES: My parents, when they bought their houses, they were in double digit. It's just perspective but if you didn't own a home before '07, '08 and maybe you just, you started looking into it after 2008. Basically the last 10 years, it won't be spoiled. [18:39] CINDY: Yes, absolutely. It means accidentally. [18:43] JAMES: It wasn't on purpose. They were spoiling. There's either the Katas or they're hard. [18:47] CINDY: I know, right?[18:48] JAMES: They were doing it to encourage people to go by because everything had kind of tanked. '08, '09 that's why those race was so insanely low, it was encouraged people to go out and own. Obviously, as the economy starts to get better, it's just a matter of time before those rates start creeping back up and that's where we are right now. [19:09] CINDY: Yes. Yeah. [19:12] JAMES: I laugh when people started talking about, oh my goodness, my rate's 4.8 and it's like…[19:19] CINDY: I know. [19:20] JAMES: Five [19:21] CINDY: Right. [19:22] JAMES: Rates are still very, very low. Yeah. Historically speaking, if your history is only six years ago. [19:31] CINDY: I know, right. Yeah. [19:34] JAMES: It’s a difficult… [19:34] CINDY: First house too that we bought was back in 2006 and it was 6 percent. I remember high fiving in the kitchen and using hands like, everybody was paying 10 and 11 percent, and I get 6 percent. That was a great rate. Six percent so great rate. [19:54] JAMES: Yeah, wise. [19:54] CINDY: It is good. [19:56] JAMES: Yeah. Absolutely was, yeah. I find it funny when people started talking about it, but we can't control it. Home ownership is still a better way to go. [20:09] CINDY: Yes. [20:10] JAMES: Paying a 5 percent interest or half or whatever it is and whatever it ends up being in 2019. It's still a better option than renting and in most cases. We'll continue to encourage people to go on. The sooner the better because rates, from what I see, and you can speak on that. For what I see, it seems like it's going to…the experts are saying that 2019, of course again, there's no crystal ball. Yeah, we're going to maybe be in that consistently in the 5 percent range. Who knows for, but that's what I see and that's what I've read. [20:51] CINDY: Yeah. Definitely would agree with that. Yeah.[20:53] JAMES: Yeah. The buying power for people, it changes significantly as those raised a lot. Yeah. If you guys are looking at a owning a home call, call Cindy. [21:04] CINDY: Yes. [21:04] JAMES: One more thing that I want to ask you. I want you to distinguish between pre-approval versus pre-qualification because I get this question a lot. I know what the difference is. [21:16] CINDY: Right. [21:16] JAMES: They are a big difference. I want you to speak on that a little bit so people really understand the difference and when, as a realtor, if you're making an offer on one of my listing with the prequalification letter, I'm not feeling that comfortable about it quite honestly. [21:32] CINDY: Yeah. [21:33] JAMES: Yeah, speak on that a little bit and tell the people the differences are. [21:39] CINDY: Sure. Okay. Definitely pre-qualification and pre-approval. The underwriter, there's a couple differences. The underwriter does the pre-approval, so that's when it actually goes into underwriting. [21:53] JAMES: Yeah. [21:53] CINDY: There're levels of prequalification letters that have stronger credibility than others. That's pretty much the documentation. [22:05] JAMES: Yes. [22:05] CINDY: When that consumer fills out a credit application and we call them. We go over the 10 on 3 with them. We pull their [inaudible] with score, input their liabilities and the application, make sure their debt to income ratio is right and sure. The LTV is right. Run interest rate pricing and make sure we get automated underwriting system approval, which is the automated scientific version of what an underwriter does. When we get an approved eligible, that triggers us to give a prequalification letter. [22:41] JAMES: Right. [22:42] CINDY: On that letter thought, if we want to take it to, I always say, I want to upgrades your prequalification letter, just to upgrade its which means I'm going to now look at your source document. [22:53] JAMES: Right. [22:54] CINDY: Source documents are your tax returns to your tax returns, early day pay stubs. That's the critical part because we really want to look at the tax returns to see what are you writing off. If you're a W2 employee, to write off, [inaudible] 106 expenses, with your salary reimbursed expenses. Because if so, we may and I say may, have to charge that as debt because those are business expenses that you're claiming. There are different programs where you may be able to skirt around that like a W2 only program if you don't own any real estate, you might be able to eliminate that. The point is, is that we need to look at the documentation that will uncover potential issues and can give us a better direction of which way we want to take the financing. [23:50] JAMES: Right. [23:50] CINDY: Yeah, it's pretty much, it’s a prequalification letter. It's just reviewing the documentation or not. That, if you're realtor, that's one of the things that you should look at is the documentation. [24:04] JAMES: Yes. Yeah. Because I mean, the prequalification, and yeah, you spoke on. That you can go online and fill out some information and get a prequalification spit out. [24:13] CINDY: Yes. [24:13] JAMES: With no verification of anything, which is why I love the fact that you take it a step further. For all of us that are involved in the transaction. From realtor to lender, we wanted to be strong. Nobody wants to waste time going through contracts and inspections and everything kind of like that. [24:37] CINDY: No. You can raise so much money. Like you wait to you inspection fee, your option fee. [24:42] JAMES: For sure. [24:42] CINDY: Even lose your earnest money, appraisal. You talk in $3,000. [24:47] JAMES: Yeah. [24:48] CINDY: I always…the realtors that I work with, I always train them, teach their clients in the beginning because you're the front contact. Let's see, pair them with need and it's very easy to your tax returns to your W2's, a 30 day pay stubs, two month bank statements, and even the bank statements are pretty significant. Even ID, I mean we've uncovered…we don't look at the beginning and then things happen that's expired and they don't have time to go get it renewed or there's always something. Really, I always tell borrower. I said, it is a lot of extra work. There is no benefit to them, the consumer if they don't provide that upfront. [25:29] JAMES: Yup. [25:32] CINDY: Good realtors prepare their clients for that right in the beginning. When I come in and talk to them, they've already heard it from you, another hearing it a second time. Again I pushed for that. I can't make them do anything. I tell them what's that risk? If they don’t get those documents and they usually, I've never had a problem with anybody complying with that. [25:59] JAMES: Right. Yeah. I think you said it. Yeah, setting that expectation from my end before they ever really talked in and most of the time, not all the time, but most of the time, it's going to start with the agent. That is so important to set that expectation. [26:12] CINDY: Yeah. You're really the point of contact. This is your lead. [26:17] JAMES: Right. [26:17] CINDY: The relationship in some way. Either from a referral or somebody that's coming to you to buy a home and I'm just the support behind the scenes. You lay the groundwork. You're going to have more credibility because you know what you're doing because this isn't your first rodeo. Then when I get them, they've already heard it before. It's really the call about preparing them and making it easier for them.[26:43] JAMES: Absolutely. [26:43] CINDY: The financing process can be, we asked for lots of documents throughout the process from start to finish and consumers will always say, is this all you need? I tell them, I'm like, well this is all I need today. [26:57] JAMES: Right. That's right.[26:58] CINDY: I'm going to back up really people behind me that are going to look at your file in a completely different way than I do. The underwriter is going to ask for conditions that need to be cleared. The processor's going to ask for documentation, my production partner, and then we might ask you for the same document again because you might not be exactly what we need. We can ask for documents up until a week or less than a week before closing. You can prepare your borrowers for that and if that doesn't happen, then it's even better.[27:33] JAMES: Yeah, supplies. [27:35] CINDY: Yeah. [27:35] JAMES: Absolutely, yeah. Now I try and said that explanations for all my clients, so yeah. It could go up to the day or the week before. [27:46] CINDY: Yeah. [27:47] JAMES: Just prepare for it. If it happens, then you know. You knew it was a possibility and I think that just makes people feel so much better because…and it's not a difficult thing just to let people know. This is not. There's a lot. It's not a straight. It might go like this. [28:06] CINDY: Yeah. [28:07] JAMES: With the close. It's not just a straight…a straight. There're a lot of things that happened. A lot of adjustments that get made, kind of like flying a plane. We never really feel it for the most part, but there're a million adjustments that these pilots are making over in a plane. Out of my analogy when it comes to a mortgage loan, because it's the same thing. It starts off one way and eventually you'll get to your destination which is closing. It's not always just a smooth process and a pupil, so frustrated with it. [28:39] CINDY: When I'm there along the way, every step of the way, I tell my followers, you can follow me after 5:00 and you can call me on the weekends. There's going to a lot of stuff that it's going to be thrown at you and especially that first time home buyers, I'm here to help you to translate what somebody else is asking. I might not be specifically asking you, but somebody else has requested that non-certain. That's part of my job. There is service court, which is mortgage lenders like myself, local small lenders. That one of the benefits is the service and being available and for the realtor as well to call and know that every time they call me, I answered the phone and I can get my voicemail. You're going to get me. [29:30] JAMES: Yes. [29:30] CINDY: You can ask the questions and I'm going to give you a straight up answer or I'm going to find out the answer if I don't know. Figure it out because you're left on a, on a ship that with the captain.[29:44] JAMES: I had that happen. I know there're a lot of realtors, its happened. Lender just do this but I know I'm working with you for the past three years. You are truly aware. You do answer the phone. Whether it's good or not, you're not the lender who just takes off and which is amazing that it happens, but it does.[30:06] CINDY: Bringing bad news to people is not easy. There's nobody on the planet would like to do that. Especially, the largest purchase of your life and that would not be a good thing and I try to stay clear of that, meaning I don't have bad situations at my peak that I qualify either solid and if they're not which means there are some weaknesses in their credit profile, which there could be that prepare them for that. I can say, this is what we're…this is the plan, and I give them the option. Your ratios are super high. You've got these collections that could be an issue. Here's what you risk. Your option money, your inspection fee, your appraisal fee. I will tell them that its a weaker profile and let them make a decision if I want to move forward or not. It also tell my realtor that too, so that they can be prepared if I have to make that call and say we, there was a hurdle that we just couldn't overcome. Blindsided like, well, why didn't you tell me this? Because yeah, I haven't run into that yet, but I will and I would. That's how I would approach that there wasn’t a paper lending. [31:29] JAMES: Yeah. There's a lot of stuff that happens that we just, again we don’t have control over what this, what the transaction is. So many people involved with so many things that happened. It's just the nature of what we signed up for this. [31:46] CINDY: That's right. [31:46] JAMES: We have this business but we love what we do. We all do because it's…it can be a crazy, crazy business. It really can. You are really good at what you do. I will excel the builder, all my builder partners that I know of. They are looking for a dependable vender. You are definitely a… [32:11] CINDY: Thank you. [32:13] JAMES: I'm speaking from personal experience, so not mean I've worked with you and I've seen what you do. How can people get a hold of you? Website, phone number? What's the best way? I'm going to post your information as throughout but…[32:30] CINDY: Okay. [32:30] JAMES: Go ahead and give…what's the website and in your phone number where to reached for you. [32:34] CINDY: My phone number is the best way. [32:36] JAMES: Okay. [32:37] CINDY: 832-370-7373, that's the best way. [32:42] JAMES: Okay. [32:43] CINDY: Yeah. [32:44] JAMES: Got it. [32:45] CINDY: My phone and now we will…you can go from there. Apply online. I get a direct portal website for online applications. [32:53] JAMES: Right. [32:54] CINDY: Get notification when it started. Application started and I get a notification when it's completed through email. What I usually do is I call the borrower right away. Introduce myself. Go over the 103 with. [33:08] JAMES: Okay. [33:08] CINDY: My link to apply online is cindywest.nrlmortgage.com.[33:17] JAMES: Okay, say that on more time. Cindy West just one word.[33:18] CINDY: Cindy West one word dot NRL mortgage.com. [33:24] JAMES: Got It. Okay, I'll make sure I'll post that on so people can have that and say if there's…if someone just got some questions about that, that special program that you guys have because there's probably a lot more detail that you can speak with and that…or just any loan. You have it take conventional or Cindy does it all. [33:41] CINDY: That's right. Okay. [33:42] JAMES: She could help you guys and she will get you to the finish line. I promise you. She's really good at it and I appreciate your time Cindy. [33:52] CINDY: Thanks James. [33:53] JAMES: We will do this again. [33:55] CINDY: Yes. [33:55] JAMES: Now we're about to head and get into the holiday season here the next week or so. We'll make sure we do this again. We can sit here and talk for hours about this. There's so much talk about. [34:09] CINDY: There is. [34:10] JAMES: We'll do this again. I appreciate your time. [34:13] CINDY: Okay, thanks. [34:14] JAMES: We will do this again. Thank you so much Cindy. [34:17] CINDY: Okay James. [34:17] JAMES: You take care.[34:18] CINDY: Thank you. [34:19] JAMES: All right. [34:19] CINDY: All right. Bye. [34:20] JAMES: Bye-bye. If you like this episode of the Houston Home Talk podcast, please don't forget to like, share, and comment! We appreciate your support and feedback! See acast.com/privacy for privacy and opt-out information.

In our first episode back from a long break, we discuss the latest NBA News. Kyrie Irving commiting to the Celtics? A little Lebron coverage and of course, the Washington Wizards. Its a train wreck. Everything is always better with a little Monster Hunter: World, so we talk about that as well. Guest's Julio Mundo & James How join your host, Matthew Medina. Enjoy!

In our first episode back from a long break, we discuss the latest NBA News. Kyrie Irving commiting to the Celtics? A little Lebron coverage and of course, the Washington Wizards. Its a train wreck. Everything is always better with a little Monster Hunter: World, so we talk about that as well. Guest's Julio Mundo & James How join your host, Matthew Medina. Enjoy!

In a special episode, we present an in-depth interview with Director, James L. Conway, the man behind some of your favourite episodes of TNG, DS9, Voyager and Enterprise! We cover all sorts of ground with James: How his Trek credentials helped him out when recently directing an episode of ‘The Orville’, the death of water cooler TV in the age of binge culture, the surprising links between DS9 classic ‘Little Green Men’ and his earlier feature film ‘Hanger 18’, the amazing loyalty and generosity of George Clooney, the submarine movies that influenced his big budget ‘Enterprise’ Pilot, juggling the egos as a Producer on cult hit, ‘Charmed’, directing a horror film that Stephen King himself called “a wildly energetic monster movie”, ‘Supernatural’, ‘Smallville’ and even…sex cults. Download now to hear the man with all the answers as James gifts us with his complex insights into directing Trek and much more.   As usual you can find SPOCKLIGHT on: TWITTER - @spocklightpod INSTAGRAM – @spocklightpod FACEBOOK – https://www.facebook.com/spocklightpod/ EMAIL - spocklightpod@gmail.com Please Follow, like, share and all that good stuff.   You can follow James on Twitter and Instagram @jameslconway  Credit for our wonderful theme music goes to the incredibly talented, Adam Johnston’s, you can find more of his work at - https://adamjohnstonuk.bandcamp.com/ Our beautiful artwork was created by Stephen Trumble, see more at http://www.stephentrumble.com   

James Reinhart is the Founder & CEO @ ThredUp, the world's largest online thrift store, and consignment store. To date, ThredUp has raised over $130m in VC funding from many friends of the show including Tim @ Redpoint, Patricia @ Trinity, Eric @ Founder Collective and Ian @ Goldman Sachs just to name a few. As for James, prior to ThredUp he was a Goldsmith Fellow in Social Enterprise at HBS and a Bill George Fellow at the Center for Public Leadership at the Kennedy School. Before that, James co-founded Beacon Education Network, a charter management organization serving low-income students on California's Central Coast. In Today’s Episode You Will Learn: 1.) How James' childhood dream of being an architect changed to founding the world's largest online thrift store? 2.) Tim Hale @ Redpoint: "James is one of the most naturally talented leaders I have ever worked with". So what does great leadership mean to James? How has James seen the way he communicates and inspires change with the scaling of the company? What has James observed as the core characteristics that great leaders share? 3.) Why does James believe that investors are inherently wary of the female and child clothing market? How did James see the funding rounds differ from round to round? What did James really look for in his early investors? How does investor value-add change with time and scaling? 4.) What have been James' core learnings in managing a board with transparency and efficiency? James has said before "your board is right 50% of the time". How does James look to determine which 50% is right vs wrong? What is a time when James has gone against the decision of the board? How did the situation result? 5.) Having raised over $130m in funding, how does James think about the balance between aggressive growth and capital efficiency? How does James assess when is the right time to pour fuel on the fire? How does James react to the mindset of "sustainable growth"? How do investors think about capital efficiency? Items Mentioned In Today’s Show: James’ Fave Book: Sapiens As always you can follow Harry, The Twenty Minute VC and James on Twitter here! Likewise, you can follow Harry on Instagram here for mojito madness and all things 20VC. Cooley is a global law firm built around supporting start-ups and the venture capital firms that fund them. Now we have spoken before about their forming the first venture fund in Silicon Valley, and forming more VC funds than any other law firm in the world but Cooley also represents more than 6,000 high-growth startups across the globe – through the full company life cycle. They are the #1 law firm for VC-backed exits (M&A and IPO) ranked by PitchBook, and since 2014 has represented more companies in their IPOs than any other law firm.  Simply head over to Cooley.com or you can check them out at Cooleygo.com.

Today’s question comes from James: How he can get more traction on his site in a bootstrapping kind of way? James’ website is http://lasercutterfaq.com. Starting at Episode 900 and leading up to (and including) Episode 1000, I’ve been leaving clues to a puzzle. Next week I’m giving away $1,000 to a random person who solves it, every day! You can also get multiple entries for sharing the podcast. To enter into the drawing go to AskPat.com/solve. In this episode I mention my new course, Power-Up Podcasting. In it, I’ll show you how to launch a successful podcast. Check out http://poweruppodcasting.com to sign up for the waitlist. Do you have a question about online marketing? Record it at http://www.askpat.com/. Today’s sponsor is FreshBooks. Go to http://www.freshbooks.com/askpat and enter “Ask Pat” in the “How Did You Hear About Us?” section for more information.

ALERT! ALERT! Medical assistance required immediately! The Imaginauts are on a hunt to uncover a host of medical maladies, curiosities and oddities before the mysterious space plague dooms the ship. Will they uncover a cure or will they get grossed out a side-tracked? I think you can guess...How can you prove to a panel of judges, doctors and midwives you can perform (in the trouser department)? Men, why are you weak (in the trouser department)? How can an 'electric belt' help you (in the trouser department)? What would happen if someone hacked your nanites? How competent is a robot surgeon? How long can you live with your head cut-off? Are the Russians on the level? All these questions answered and more on The Imaginauts!In this episode:Sean - What's the strangest outdated medical procedure?Phil - Could we live forever?James - How long could you live with your head cut off?Got anything you want to say to us? Email babybeardmedia@gmail.comAlso, check us out on Twitter, Facebook & Instagram. 'Baby Beard Media' for all!

ALERT! ALERT! Medical assistance required immediately! The Imaginauts are on a hunt to uncover a host of medical maladies, curiosities and oddities before the mysterious space plague dooms the ship. Will they uncover a cure or will they get grossed out a side-tracked? I think you can guess...How can you prove to a panel of judges, doctors and midwives you can perform (in the trouser department)? Men, why are you weak (in the trouser department)? How can an 'electric belt' help you (in the trouser department)? What would happen if someone hacked your nanites? How competent is a robot surgeon? How long can you live with your head cut-off? Are the Russians on the level? All these questions answered and more on The Imaginauts!In this episode:Sean - What's the strangest outdated medical procedure?Phil - Could we live forever?James - How long could you live with your head cut off?Got anything you want to say to us? Email babybeardmedia@gmail.comAlso, check us out on Twitter, Facebook & Instagram. 'Baby Beard Media' for all!

51Talk is China’s leading online English education platform. The company’s mission is to make quality education accessible and affordable, and through their online platform, they enable millions of students across China to take live, one-on-one interactive English lessons with North American teachers.James is the North American Marketing Manager at 51Talk. Before his work at 51Talk, James worked at several FinTech companies, and was most recently based in San Francisco where he ran the business development segment of his previous company. He is now based in New York City, where he focuses on growing 51Talk's operations and teacher community in the west.Robyn is a Senior Editor at 51talk, Linkedin influencer in the education sector and education reporter.Episode Content:Robyn talks about her first responsibilities in 51Talk and a bit about her backgroundRobyn and James talk about their positions at 51Talk, the qualities necessary for such roles, and what one has to bring to the table in order to make worthwhile contributionsHow was 51Talk started?Question from China Business Cast audience (James): How did 51Talk start prior to its fundings? What was the strategy back then considering there were giants in the industry such as English First and vipabc?How 51Talk is doing things differently from their competitorsJames talked about how he connects with students and teachers and how he engages with them. He gives an example of one thing that worked really well and something that was a total failureQuestion from Nicholas, a listener from the WeChat group: How did you manage to reach 8,000 - 10,000 teachers?(Robyn) As a LinkedIn influencer who reaches a very large crowd, what does this role really mean within the LinkedIn platform and how is this position attained?Robyn and James recommend two books that they recently readHow people can get in touch with Robyn and JamesEpisode Mentions:Intro51TalkBook RecommendationsLouis XIVSiddharthaThe Power of Now: A Guide to Spiritual EnlightenmentQuiet: The Power of Introverts in a World That Can't Stop TalkingDownload and SubscribeDownload this episode: right click on this link and choose "save as"Subscribe to China Business Cast on iTunesOr check out the full list on subscription options Periscope Live broadcasting of the recordings follow @StartupNoodle (open link on mobile)Add Mike ('michelini') or Shlomo ('shlomof') on wechat to join China Business Cast WeChat group

Welcome to the first episode of Totally Made Up Tales, an experiment in improvised storytelling in the digital age. We hope you enjoy our tales of wonder and mystery. Let us know what you think! Music: Creepy – Bensound.com. Transcript:   Andrew: These are some stories which we made up brought to you by the magic of the internet.     Once upon a time Jesus H. Christ set out from his home to the marketplace. He stood among the market traders on an old box preaching to the crowds. "Blessed are the cheese makers," he'd acclaimed and a passing cheese maker so delighted in hearing his words that he gave him a shiny silver coin.     "Uh huh," thought Jesus to himself. "I bet I can take this coin, multiply it into many more using one simple trick." "Blessed are the rich," said Jesus.     The end.     This is the story of the witch and the turning sickness.     Once upon a time, in a relatively far away place, there was a deep dark forest.   James: Almost no one ever went into the forest. For the first mile or so round the edge, you can sometimes snare rabbits or maybe go logging, but further in if men ventured they did not return.   Andrew: There were no ponds in the heart of this forest. Only huge, nulled tree trunks growing up the bushy leaves of the canopy obscuring the sky in all but the very depths of winter. But still in this heart, there dwelled one person.   James: An old and wise woman. She had lived there, some say for centuries.   Andrew: There were many things ... it was said ... that she understood. How to control the seasons and the weather ...   James: How to talk to animals and smaller creatures.   Andrew: How to raise the dead from their graves.   James: How to blend and choose the herbs and spices of the forest to counteract illness and drive away evil spirits.   Andrew: But whatever favor she did for you, if you made your way into the heart of the forest and found her cottage and begged for her help, she would ask for a price.   James: The price would always be high. Perhaps the highest you could possibly pay but it would also always be appropriate to you, to the illness she was curing or the misdeeds she was covering over.   Andrew: Those who failed to pay would suffer a terrible punishment as all of the power that she had used to help was unleashed on creating suffering.   James: In another part of the country, far far away from the black forest there sat a village of great renown.   Andrew: The people of this village were famed for miles around ... all of the other towns and villages of the plain knew that these people were good and chaste and virtuous and pure of heart.   James: It was winter. The end of Christmas tide and the villagers were bringing in their livestock to the great communal barn to shelter them there through the bitterous nights of darkness ...   Andrew: ... and after their mid-winter festival which they always held when the great herding of animals had been completed, they all returned to their homes. The next day they woke and to their horror, they found that the barn had been raided over night and six chickens had been taken away.   James: The village elders questioned everyone but nobody had heard or seen anything and nobody confessed to the crime. No remnants of the chickens were found and the village was forced to go to sleep once more aware now that there might be a thief amongst them.   Andrew: In deed the very next day dawn bright and early and they found that this time two pigs had been taken and again nobody had seen anything, nobody had heard anything, the village elders questioned everybody. There was no evidence.   James: One more night, the villagers slept worried now about what would be stolen overnight and sure enough, as the weak raise of the winter sun touched the steeple of the village church, they woke to discover the great cow had been stolen.   Andrew: The village elders met in councils to discuss the situation. "How can it be that we, people known to be pure of heart, people known to be good and true should have to suffer this terrible plague of theft upon our houses."   James: "It cannot be one of us," they agreed. "We are too good. We are too pure. It must be the work of the devil."   Andrew: "Yes. The devil who brings with him the turning sickness," said one of the elders from the back of the room. They turned to look at him. "Yes. I recall a tale from my childhood of an entire village wiped out. A village who had been pure of heart but were corrupted by the taint of sin in the cool clear air."   James: On hearing this, the other elders were much afraid and they turned to their leader. "What should we do? What can we do to protect ourselves from the devil himself?"   Andrew: "We must barricade ourselves within our homes and barricade our livestock into the barn. We must pray that it is not too late and that we are still able to escape the sickness."   James: That night the villagers barricaded themselves into their homes, having previously boarded up the barn with the livestock inside it. No more theft that night but the following morning they discovered that they were already too late.     Every house had at least one person fall to the turning sickness.   Andrew: "What shall we do now?" said the council of elders. "We have waited too long. We have let the situation go too far and the devil already has hold of us." There is only one thing we can do. You must send for the witch.   James: So their fastest messenger was sent on their fastest horse speeding through the winter nights towards the dark forest and the witch's house within.   Andrew: He tethered his horse at the edge of the forest and set out through the dense network of trees. It seemed like he had trekked for days when at last he came across a tiny crooked cottage in a tiny clearing.   James: "I know why you are here," said the witch. "You have succumbed to the devil and the turning sickness."     "Yes," said the messenger. "Will you help us?"     "I will help you," said the witch "but there shall be a price."   Andrew: "Name your price," said the messenger. "We will pay anything. Our people are sick and  must be saved."     "Yes," said the witch. "I will save them. I will save them all but then I shall return in ten summers time and I shall take from the village to be my slaves and minions all of your virgins."   James: So saying, she cracked up her herbs and spices into her bag, leapt upon her broomstick and vanished. Appearing moments later at the village where the elders were waiting anxiously for word.   Andrew: "Almighty and powerful witch," they said as she appeared before them, "We thank you for being merciful and coming to our aid in our hour of need."   James: "Of course," said the witch. "But heed my price and pay it in full," and so saying she unpacked her herbs and spices and made a bitter brew which every villager drank down and in the morning the turning sickness was gone. "Remember the price," said the witch before leaving the village alone.   Andrew: There was great celebration in the village that people had been cured and spared and that they were able to go on living their lives. What joy there was in their hearts until they remembered the price that they were going to have to pay. How would it be that in ten years time, all of the young and the purest of the pure of heart to be snatched away.   James: ... and so the council of elders met and decided a terrible fate for the village. For the next ten years, no children were to be born. No children were to be allowed. If any were conceived and carried to term, they would be without mercy killed that they might not become the slaves of the witch.   Andrew: ... and so it was that this cruel policy was enacted and for ten years the villagers kept their word and though they may have sorrow in their hearts, they brought no children into the world. So it was that ten summers had passed and the witch returned on her broomstick and called to the village that they come and meet her and pay her price.   James: When the witch found out that they had no virgins to give, she burned the village down with all the villagers inside it.     The end.     A long time ago, before mankind came on the scene, the northern hemisphere was ruled by dinosaurs using a democratic system of government. One day at the meeting of the senate, their chief scientific advisor made a great announcement. "We have discovered," he said " a large expanse of water on the moon. Should we go there?"     "Yes." They said and did.     The end.     Now the tale of the talking horse of Baghdad.   Andrew: Once upon a time in a far away land, there lived a horse. This horse was no ordinary horse. He had a magical power.   James: Every morning he would get up, stretch and in front of the villagers and anyone who had gathered he would declaim a story.   Andrew: This was a talking horse. A horse with a gift of speech, an eloquent horse, a great orator some say that people would travel miles to hear.   James: One day after giving his oration, he noticed a small man at the edge of the paddock.   Andrew: He went up to the man and said, "You seem like a stranger. You're not from these parts. I haven't seen your face before."     "That's right," said the man, "I have traveled from far off Baghdad.   James: ... and I noticed as I watched you  after your oration, you seem troubled, you seem alone. "   Andrew: "Yes," said the horse, "It is true. For although I have many admirers and people come from far and wide to hear me speak, in my heart I have a great loneliness ...   James: ... for I am the only talking horse that I have ever encountered and without others of my kind, how could I possibly be other than alone."   Andrew: "Well," said the man, "In that case, you must travel for in Baghdad there is a talking horse of great repute that people come from even further to see."   James: "If this is so," said the horse, "then I shall journey there at once" and so saying, he packed up his few belongings.   Andrew: He had some strips of wood, some coal ore and a woolen fleece from a mighty sheep.   James: Packing them away, he trotted south. South through the hills and valleys. South towards the unknown.   Andrew: At the top of the highest hill, he stopped and turned and looked back at the way he had come, at the land that he had called home for so many years and thought to himself ...   James: "Will I ever come this way again? Perhaps this is the last few I will have of this home." So saying, he turned and proceeded south.   Andrew: Beyond the hills laid the great dusty desert plain filed with dunes and sand.   James: He traveled through it for many days, gradually feeling weaker and weaker until he reached an oasis in the desert where he was able to quench his thirst.   Andrew: At the desert oasis, he met with a nomadic tribe and asked them, "Which is the best route from here to Baghdad?"   James: ... and they turned and pointed east. East towards the jewel of the Caliphate. He thanked them with a story and continued on.   Andrew: He trekked for many days and many nights and finally was clear of the desert and standing before the towering great gate of the city wall of Baghdad.   James: Minarets twisted high above him and mighty stone randalls beneath.   Andrew: The gate of the wall was closed and by it, a sleeping century stood in his box. "Hello," cried the horse, "Hello."   James: The soldier woke with a stat. "Who is it? Who is it who seeks passage into Baghdad?" he asked.     "It's just me," said the horse, "Just me."   Andrew: "I have come for I hear there is a great talking horse in the city and I wish to speak with him."     "Very well, " said the soldier, "but there is a price."   James: "You must pay the tax of the Caliph."     "Well, what is this tax," said the horse, "I don't have many possessions. I have wood, ore and the ewe skin."     "Ah," said the soldier, "Well it just so happens that as the winter nights draw in, I have a longing for warmth. I will take your wood and let you pass into the city of Baghdad," and so as the soldier built himself a fire, the horse trotted in.   Andrew: All roads in Baghdad lead to one mighty central square. It is said to be the largest square in the whole of the world.   James: The horse looked around seeking from corner to corner, anyone who could help him in his quest for the talking horse of Baghdad. A small voice appeared at his side.   Andrew: It was a little girl.  "Excuse me," she said to him, "Are you lost? You look lost. Can I help you?"   James: "I am looking," said the horse, "for the talking horse of Baghdad."     "I can help you," said the girl, "but there is a price."   Andrew: "Well," said the horse, " I have in my saddle bag my coal ore or a mighty sheep skin."     "Oh," said the girl, "Yes. A sheep skin...   James: That will keep me warm during the bitter winter nights as the cold winds blow across the plains," and so she took him to the stables.   Andrew: ... and there he encountered a small man with a large key standing outside a locked door. "Excuse me,"   James: ... said the horse, "Can you let me in to see the talking horse of Baghdad?"     "I can," said the man, "but there will be a price."   Andrew: "The only thing I have for you," said the horse, "is this coal ore."     "Aha," said the man, "This is perfect for firing my brassier." "Yes," he said and took his mighty key ...   James: ... and unlocked the stable door and the horse trotted inside but within was not a talking horse of Baghdad ...   Andrew: ... but a whole crowd of horses. Hundred upon hundreds of them chattering in the many languages of the world.     "What?" thought the horse to himself, "Can there be?"   James: "What is this?" and he nudged the closest horse to him and said, "What is going on?"     "This," said the horse...   Andrew: "... is the parliament of all horses. Delegations from around the world have been sent so that we may decide who we crown as our new king."   James: This is the talking horse of Baghdad.   Andrew: "Stranger, you are welcome. Tell us your tale."     Peter ...   James: ... went ...   Andrew: ... to ...   James: ... the ...   Andrew: ... shops ...   James: ... to ...   Andrew: ... buy ...   James: ... some ...   Andrew: ... bread.   James: He ...   Andrew: ... forgot ...   James: ... to ...   Andrew: ... bring ...   James: ... his ...   Andrew: ... plastic ...   James: ... bag ...   Andrew: ... so ...   James: ... was ...   Andrew: ... wasteful ...   James: ... and ...   Andrew: ... lost ...   James: ... five ...   Andrew: ... pea ...   James: ... the ...   Andrew: ... end.   James: Jeremy ...   Andrew: ... played ...   James: ... cards ...   Andrew: ... against ...   James: ... his ...   Andrew: ... mother ...   James: ... and ...   Andrew: ... won.   James: She ...   Andrew: ... never ...   James: ... spoke ...   Andrew: ... to ...   James: ... him ...   Andrew: ... again.   James: The ...   Andrew: ... end.     Harold ...   James: ... went ...   Andrew: ... upstairs ...   James: ... and ...   Andrew: ... fell ...   James: ... downstairs ...   Andrew: ... the ...   James: end.   Andrew: I've been Andrew and I'm here with James. Join us next time for more made up tales.   James: Clive ...   Andrew: ... met ...   James: ... a ...   Andrew: ... sticky ...   James: ... end ...   Andrew: ... when ...   James: ... he ...   Andrew: ... reversed ...   James: ... into ...   Andrew: ... a ...   James: ... beehive.   Andrew: The ...   James: ... end.   Andrew: That will do nicely, I think.  

Volatility Review: A look back at the week from a volatility perspective VIX Cash: VIX poised to start moving aggressively again? VVIX: Hovering around 85 - near the low end of its 1-year range. VIX Options: Back to light volume - all sessions below 500k. 3.8/1 Calls over puts. RVX: OI 62 contracts. VXUP / VXDN: Light week here as well - VXUP most days well under 30k shares, VXDN under 5k shares. VSTOXX: Flirted with a 5-month high of 27.5 earlier this week. Crude Oil: Crude Vol creeping lower. OVX - 29.18, OIV - 29.36 Rates: TLT Aug IV = 16 - Has not changes much over the past month. Volatility Voicemail: Listener questions and comments Question from Nick James - Tuned in last week for the first time and heard the discussion on volatility products, and particularly the AccuShares VIX products. I have been intrigued by this product and found your conversation interesting. It sounds like you take a dim view of it and would recommend against me buying shares of the VXUP version. How would you fix it if you could? Question from St. James - How low can VIX go? You guys said on a recent show that a VIX of 1 was not realistic. So what is a realistic low for VIX? Question from Encore - I am a fan of bullish risk reversals or collars in the equity and index world, due to the volatility premium inherent to the puts. It looks like that similar strategy is not as effective in VIX Options and most volatility products. The volatility premium is in the call, so most bullish risk reversals end up costing a net debit rather than generating a credit. So, should I take this to mean that I should flip my strategy to employ bearish risk reversals instead in volatility products? Do they tend to be more effective, or are the call premiums merited in volatility products?

James: How to handle trials and tests