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For every $100 you can increase the rent on a apartment that's worth about 15 could be $20,000. Do you see any plumbing lines in this one? I see some copper there. You want 200 the door? Give me 200 the door product. High class Chinese food is the weirdest layout I've ever seen. Look at that curb appeal on that trash on the ground. — Ooh, look at those windows. — Every bottom unit got flooded. Look, they got piles and piles of sheetrock that they're doing work. — Little Ben wants to pay a hund,000 a unit for this. — Wow. — I have to have him drug tested. — This is gutted because after the hurricane, same we went through. This property sustained after math flooding. Whereas all the water that you know came in, it flooded. It had tenants in it. They didn't get to it probably fast enough because there was occupied units. So therefore, they had to gut the whole thing because it probably just went to hell. If they didn't if they would have came in here probably and cut out all the sheetrock where you can see most of the moisture was, they probably could have saved all the top, right? And they would have just had to finish the bottom. But because it was occupied and people were living there, it probably just went to I think it was a major evacuation of this building. I think there was organizations here and so here we are today to look at it to see how far they are in progress and maybe purchase it. Um I know we can handle it. Just about the numbers. That's all it is. — The point is that what do you do with a window like that? — Replace it the whole thing. — Can we block it in 100%. — Not have a window to go so low to the floor. New front doors. Stud wise, I guess we're okay. — We're okay. Bottom plates will pass and all that. — Yeah. Yeah, it'll pass. It's got to be bleached. — These boxes all look like water's been in them. — They've already done the electrical in here. See, it's all brand new breakers. — I don't know. What is it going to cost to rock a place like this? And moldings, tape. — 60 bucks a sheet. One, two, three. — How do you know what a unit ends in here? — 40. Let's say 45 to 50 sheets of rock — per unit. — Per one bedroom. — Tape mudded, textured. 100 bucks a — Okay. 100 bucks a sheet. Yes. Five grand — Just a rocket. — Then you need molding, serial labor, electrical. You're going to need plumbing. light fixtures. — Plumbing looks like it's done. But this is upgraded poly. — I assume red is hot, blue is cold. — Very good, Dad. These clamps and the plastic have the potential of going out. There's no chemical bond. There's no I don't know. Maybe this is a better mechanical solution. Maybe you guys can tell me. Appliances. That's the big one. interior doors and hardware. — Uh closets, — door, look at that. Patio door, windows. We're going to have to walk every single unit and make a list. — I would say with flooring and everything. — Minimum 35 grand a unit. — Minimum. — We can submeter this place. That's individual rind. This is for this unit. — I thought you sme. But that's only for hot water. They did it wrong. They should have put the meter in the wall. Now that they've exposed this, they can put the meter here. Just bring this up. Put the meter right here. Now you'll capture all the water coming in this whole unit, not just the hot water like they're doing right now. — Now we got to find out exactly how many units are down. I think — they got 40 back online. — Let's go. We got to meet him at the leasing office. Units a month for a onebedroom. — That's not — 1100. You can't pay 180 or 60 or 50 or none of that. The numbers don't work. — Market rent though. No, — that's what they're advertising. You've heard of mud, rent? You know what that is? Looks like — I know about mud cuz you've been slinging it all ever since 24 years. — Cheap ass walls. This is the cheapest counter. Ben Mala special. Okay. And this is the cheapest toilet that you can buy from Home Depot. The cheapest wall surround. This is not even a wall surround. There's sheetrock behind here with a thin layer to protect it from getting wet. — So listen, Hanley Place I sold for 158 a door. That's in Town and country. This is much better. I sold a deal in Fort Myers for 150. — We just paid 108 in Fort Myers because we had a good broker. — This selling this the product is I mean they're not doing tile surrounds. They're not doing anything. They could have did showers. a lot of but they didn't. — I HAVEN'T TOUCHED THAT THING. — SO, I don't know if you're going to get $1,800 a month or 15 $1,600 a month. — Get $1,800. Let's say you're 200 bucks lower than that. That's — Smoke detector battery is dead already. How new is it? — It's a big project. We got to go from what we saw framed to this and that takes money. So, we got to buy it right. He's going to feed us a whole bunch of But we got to buy it right. — And you have new windows in and you have everything in here and you're in for like less than 130 a door. That's a

major win. That is a major win. You're not losing money. I'll tell you that. — The happened to here? You're talking about 4 ft at least. — You're talking about over this. — Over this through the fence. But still, — but if that's clogged, you're Yeah, Half. They should have immediately got somebody in there and unclogged that — Oh, — this is a big ass pit which looks clean. gate valve which is opened by that old ass diesel motor. Here's the pump. Hillbilly off the grid type right here. This has a major lift station for storm water. All this equipment is normally ran by the city. This is not private owner equipment. I just don't want to do all this work, be stuck with a flooded property that ain't worth more than we paid her into it for. Reminds me of I'm going to have to put hundreds of thousand dollars in landscaping. — 70% of the property is two one and a halfs/2s. These windows are coming out or not? — Yeah, he said it all. — Why does that staircase look crooked? — Oh, everything here. — Everything looks crooked here, especially the agent. — So, here's something interesting. There's a big shift happening in hiring right now. It's called skillsbased hiring. And basically, employers are starting to care more about WHAT YOU CAN ACTUALLY DO rather than where you went to school or what your last job title was. and the data backs it up. It leads to faster hires and people who actually perform better on the job. Now, if you're an employer who's adopted skills-based hiring, the best way to ensure that your applicants have the right skills is Zip Recruiter. Zip Recruiter recommends smart screening questions to help you hone in on that perfect match for your role. And right now YOU CAN TRY IT FOR FREE AT ZIPRECRUITER. COM/MALA. Ziprecruiters matching technology does the heavy lifting for you. Finding qualified candidates fast and you can easily add screening questions right to your job post so you're only hearing from the best of THE BEST. IT'S NO wonder Zipracuda is the number one rated hiring site based on G2. Let Zip Recruiter help you find amazing candidates with the skills you seek. Four out of five employers who post on Zip Recruiter get a quality candidate within the first day, baby. And now you can TRY IT FOR FREE AT That's ziprecruiter. com/mala. Meet your match on Ziprecruiter. How many units are in this condition? — 34. Let's say that for 130 to a door. It's a steel. — Hell yeah. Steal, — right? If it's leased up at 90% 91 92. — You're giving me 15,800 bucks in rent. Maybe kind of what you're looking at is like, okay, where am I ending? — Top dollar. — Okay. What can I do to show you that? — Show them the comps on recent sales. — That price you're going to be in at close to a nine cap. Okay. So, that makes you feel good. — Yeah. But all that is based on you getting $15 to $1,800 on average. — How much time you going to spend marketing this thing? — Hopefully not a lot if you're buying it. Let's go. — Nobody serious bar is going to make a move on this. — Honestly, and I'm not just saying this to sound salesy. I completely disagree. This is what people want. 100%. We — wanted to ask in price. — We will have a ton of tours. — What's this place going to appraise out after you're done with all the work? — Yeah, probably 75 80 million. — That's a 6 and a half cap. What kind of cap you want to put on it? It's not going above a six and a half. — I don't see any Do you see any plumbing lines in this one? I see some copper there. — There's no plumbing. — I see drain drainage — pretty good. [snorts] — Sorry. For electrical, they have two categories. It's electrical rough and electrical final. I'm not sure what the final is. Might just — final nowhere near finals. But how many of the rough are done? — Uh 73%. 117. — It's not like it's new with popcorn ceiling. It's not like these upgrades you guys used to do. — I'm too old for this [sighs] 20 years ago. But really, it's all about the price. If you don't buy it, right, you could get stuck. Look at that. Nice gym. Very nice. I — mean, look, they got a whole place. You could drive a car through the property. That's for emergency vehicles. — Mike's just about to go walk on somebody's door. — Let's not go that way. — Even the bad even the good

units need cabinets. — No, you're — Look at that side of that cabinet. — Cabinets. You're keeping this. — I'm replacing that side. — What the This is the whole bathroom. — Okay. It's just a weird design. This the P Diddy layout. — The P DDY layout. — Yeah, — there's no shower. — Two. One and a half. — Oh, they share the shower. — Yeah. — No, I don't know what you would consider that. That's not even a two. That's a two — one and a half. Is the weirdest layout I've ever seen. You got to come see this You You're not going to want to buy it even more now. — That's not bad. — Hey, we got to sit down and really think about this. We got to look at our tax situation. — This is a price per pound type of deal, right? This is exactly what you're looking A lot of work and a lot of risk. — No, man. Again, what I'm saying is if you can be all in for low30s a door, that's a win. You're not losing money. — I'm trying to get out and they want to bring me back in. Okay. The place needs a lot of work. We're going to go back and crank the numbers. It does have some attractive financing on it, so maybe our carrying cost won't be as bad as I thought, but this is a major major rehab, okay? And there's a lot to consider. It's a lot of work, and you don't want to work for free. If we come in here, we buy this place, we fix it up, we get it stabilized, and then we find out, wait a minute, we can't sell it for any more than we sweated into it and we're into it for, then what was the point? You can't be emotional. You got to be logical. You got to look at the numbers. You got to have a cushion of safety. And this place don't seem so safe to me right now. Maybe he'll go around, he'll show it to the market, nobody wants to buy it, and maybe the seller will come down in reality. That's what we're hoping for. — Today it's Friday and Erin's taking me out to a special lunch. I do know one thing. Valet here. If you spend some money, free valet, baby. Saving money, making money. — The goat right there. That's the goat — Why doesn't our Holiday in look like this? Look at the water there. Look at this. This is the high This is the highest level of hotels you can come to. This is the top, baby. — Malhala. — Mala. Nice and easy. — She's from Michigan. So — yeah, I got that swing. — It's not her fault, too. She was fired from Bonefish down by my house. — I wasn't fired. I wanted more for my life. — I might have been a reason why she got fired. — Regular tap. Cheap stuff. The food here is great. The service. — What are you having? I'll have the uh teriyak salmon as well. — Salmon. Oh, health guides. — What's that? I lost the whole Tampa thing. Oh, we'll have salmon. — High class Chinese food. — I like visiting my dad. — Excuse all the pants. — He gets a free lunch. — That's right. — Chicken quesadilla. Look at that. — That salmon look fresh or what? — Burger They painted it. Look at all the colors they used. Oh they put up the privacy stuff. These people know their stuff, boy. But it is one of the nicest beaches around, I can tell you. We are now in Clear Water Largo area. Even the mailman's [clears throat] creeping out of the alleys. Look at that. We're out looking at some real estate today. Why? Because it's time for Aaron to get off his ass and start making us some money like his brothers do. Here we are. We're looking at some of our neighborhood. It's a typical 15 unit building, but they're asking like a couple of hundred grand a door. Even though the numbers might work where you're going to get a 6 and 12 cap, where's the upside? And if you're going to ask 200 a door and only offer a six and a half cap rate, what the hell's up with this tree? What's up with the landscaping? fencing? Why did they go all the way? They put a new roof on it. It looks like they may have painted it black and white. They did the parking lot but finished the goddamn job. I don't understand. You want 200 the door? Give me 200 the door product. So, you know, the numbers will work because there's low maintenance on this thing. The windows are original. I can tell you that right now. But the fences are all screwed up. You know, the landscaping needs a lot of love and the place is looking not so great. It's kind of shabby. What's up with this garbage here? The recycling program. I mean, so basically, you know, listen, you look at deals, you say, "Okay, you look at the good, the bad, and the ugly. " And then you got to go back and, you know, these people got to come down in reality. If I come in here tomorrow, he's got to get in here. He's got to do landscaping. He's got to fix fences. And there's really no upside because they're already renting at the top dollar of the market. So, where's the upside? This is the type of deal you got to come in and you got to lowball them, baby, and get them down to a number where you can have a little fat in a deal. They can't take all the fat out of the deal. What's the point of

anybody buying it? So, I don't like your pick for the day, Vince, Erin, whoever you are. I think, you know, deals like this, you know, this guy's way overpriced. — But the only good part is that it is in our backyard, so it's going to be really easy to manage, really easy to work on. So, that is it's really close to us. We got to find deals like this that are priced reasonable. The guy knew he wanted to sell. All right. If you know you want to sell and you're going to spend some money on a place, fine. You put new roofs on it, that's great. You painted it, that's great. But look at the front. You expect somebody to come home to that every day? Come on, give me a break. Finish the goddamn job. Why do people put this stuff on the market and they don't finish it? They just halfass do it, put a giant price on it, and they expect somebody to pay them. It doesn't work that way. Okay, you get what you earn and you ain't finished earning here. If you want to sell this as a 6 and 1/2 cap at top dollar, then give me top dollar property. So, you know, but it's a solid building. It's concrete. It's easy to run. Like I said, it's low expenses, but it needs love. They're asking about 3 million bucks for this joint. He wouldn't like my offer cuz my offer would be 2 million. Okay, maybe we can meet somewhere at two and a quarter million. I don't know. But I got to put some time and money and time and money cost money. So there you go. What else? Big shot. — Low ball. Let's play lowball. Let the games begin. All right. Write the guy off for 2 million bucks. Quick cash deal. Done. There you go. This will pay your college tuition. This thing's supposed to bring in 300 grand a year. You're supposed to have an NOI for 200 grand a year. Well, we all know 200 grand a year at 5 million uh at four million would be a five cap. So, he's a roughly a six and a half cap. — What's up? — Are you guys — We're just doing real estate. This place was on the market. We came by to look at it. Maybe we want to buy it. That's what we're doing. What are you doing? That's the question. What am I doing? — Let's find out what you're doing. Let's get down into it. I'm just kidding. We might have been doing some fighting. I think four of us against him. Even though he's fat, we could take him. The back curtain keeps closing. I don't know why. Somebody's hitting a button back there. Look at that. Same street, new construction. That means the neighborhood's going up, but it ain't up yet. This guy's got a price to where the neighborhood went up. Belair Healthc Care Center, Bair Towers, Bair Storage. Once you cross the tracks through the path, that's the Penelis Trail. Look at the beef from Belair. of me and Ben. I almost bought something here. It's a daycare center. Happened to be right in our backyard. — Aaron grew up right here on this area right here. — That's right. — So, we just went from not such a great area to a really good area. So, that has a lot of value in real estate. Now, this is a similar property. They're also asking for 200 a door, but for this one, you're getting a better neighborhood. But as you can see, it looks pretty original. The windows are still the same age. They haven't done much here. This place needs a little bit of love, but it definitely has a very strong location. And remember, in real estate, the first thing you learn in real estate, no matter what kind of real estate you're in, is — location. Very good. Aaron gets a cookie today. All right. So, basically, it's a nice place. Very easy to run, very quiet, built pretty well because it's all concrete. They built really good back in the day, but it's going to need some love. You can do a rehab on it, but is it worth doing a rehab? Basically, it's the same thing. You're going to buy this place. It's going to get you about a 6 to 7 cap. Okay? So, you got to come in and lowball, baby. Why? Because you're going to have to come in here and if you want more rents, you're going to have to make some improvements to make it a little more attractive so you can get a little more rents out of it. And now you got to figure out the money I spend. Is it worth spending versus getting an extra hundred bucks or so a month? Okay, but I'm going to tell you right now, every $100 you can increase the rent on a apartment. That's worth about 15 could be $20,000 in equity. So if you raise the room, rent $100 in every unit, that's $1,800 a month. 1,800, you know, that can equate to anywhere up to a few hundred,000 and you created an equity just by raising the rent. The property is only worth what the return is on your investment. Okay, but this is a solid deal, but again, I think the price is too high. I need some upside. Okay, I don't just want to come in and sit back and get some average return. I'll put my money in taxfree mun bonds to do that. You can buy a low cap rate. You understand this part? You can buy five and six cap rates, but what can you do to the cap rate? Can you raise

the cap rate by increasing the rents or reducing the expenses? It's all about the bottom line. How much money is this place going to put in your pocket every month? So, the cap rate is important, but is there opportunity to get a better cap rate? That's how you create value and equity. This is very important. Okay, it appears it has to be verified that all three of these buildings are running off this one water meter here right here. Now, we got to see is the owner charging the tenants for water cuz he's only got one meter. So, they're not going to get a bill from the water company. The owner has to give him a bill. You understand that? — And that's done through a rub system. Look it up a brother knows all about it. will come in if the owner is not charging for water and we will install separate meters in every unit to keep track of their water usage and we will bill them accordingly. What's that going to do? That's going to eliminate the water bill. Now, what does that do? That's going to reduce our expenses. It's going to make us more money, baby. Less money going out is more money in the pocket. So, always look at how many water meters a property has. Always look to see if the they're charging the tenants for water because that's an upside. That's going to increase your cap rate. That's a new window. The small ones, he didn't do those, but you know, it's it tells you it's time for this place to get new windows. He's already started it, but he's only done it on an as needed basis. This place needs all new windows if you want to bring it up to today's standards and raise the rent. New stuff gets new money. I got an offer today for Largo. — Take it. — Pay me $48 an hour. — Who? — City of Largo. — Take it. Don't even around. I'm not kidding you. Take it. I never heard of such a thing. — I'm not kidding. I'm not. Honestly, Listen, I don't honestly, you know, I help people become millionaires, but they got to make it happen. And you know, but you know, if you can get that kind of money and you get the benefits, then you need to take it. — I like variety. — What? — No, I like the variety of working where if I'm in the shop every day of my life fixing, — you do your time in the shop, you walk away, you walk away with even after taxes, you know, big money, — okay, plus holidays. — Do it. And then forget all those big fancy trips on the yacht, baby. — No more life for you. GO BE A grease monkey for a few extra bucks. And don't hang out on yachts and take fabulous trips eating food you never in your life would ever eat because you can't afford it. And even Gilligan's eating tonight. — There's a balance of — All right. Well, if the market turned and you found a deal, I never turned anybody down and helped them buy a deal ever. Nobody ever. You know, you gota be in that mindset of I'm going to find a deal. And those two lights are out in the back patio downstairs. — Order the bulbs. Oh my god. He has to ORDER TWO LIGHT BULBS. UNFORTUNATELY, his light bulb doesn't come on. That's the problem. He's burnt out. That's why his hair is gray. His light bulb burnt out, turned his hair gray, and now he's just what he is. Do you have one to $10 million in real estate investments and want to scale up to 30 to 50? We need to sit down, analyze your property, and come up with a personalized plan to take you to the next level. Book a call, set up a meeting, go to binme. com, and let's put you on the road to success. And listen, my mother told me TO TELL YOU, "SHARE THE GODDAMN [screaming] VIDEO. WE NEED MORE GODDAMN VIEWS. " DON'T FORGET ABOUT OUR SPONSOR, Zip Recruiter. Adios, amigos.