On my way to invest $90M

You ever wanted to know what it's like to come out and look at a neighborhood retail center? Well, take a walk with me because today we're looking at one. Let's check it out and let's see what it's got and what it's all about. Come on. Number one, these are retail stores. What do retail STORES NEED? TRAFFIC, BABY. TRAFFIC. WELL, you know, I can tell you right now, the landscaping looks good. It's attractive. It's got nice trees. They're maintaining it. It happens to be an excellent neighborhood. I do know that. There's actually even hotels here. And I don't know who goes to hotels, but they must be doing well. Let's see what we got here. We got Pilates. I mean, this Pilates, I thought it was a drink Pilates. I was saying, "Hey, give me a chocolate Pilates. " But I guess it's a workout type place. I don't see any cars here. So, I don't know. I got to look more into the Pilott business. Looks like they got a little vacancy right there. Let's go check it out. So, we got the vacant space. Hey, this could be the new headquarters for equity management or Grafal's new headquarters. What do we got here? I don't even know what this is. Cold plunge. I don't know. Sonic cold plunge. I mean, aren't people going to gyms for that? They're going to go to a separate place for that. You know, you go in and you sweat your ass off, then you freeze your ass off, and you pay money for that. I mean, a lot of people are into it now. I like a sauna, but I ain't getting no goddamn cold plunge. Screw that. There is an old saying, this doctor told me, he said, "If you can squeeze it, you can freeze it. " I don't know. Maybe the cold plunge stuff works, but I know a lot of athletes are into it and physical fitness people. It's a very This is a very niche type place. The first one's got a double space. Then you got a vacant space. And this guy's got a double space. These are truly unique type of services they're providing. Service is good, but it's got to be a service that everybody always wants. Everybody wants a haircut. Everybody wants to get the nails done. Everybody wants to grab a quick sandwich. But, you know, the whole Pilates and, you know, spa, I don't know. Let's keep looking. Oh, another vacant. You know, if they have two empty spaces in this kind of area, which is pretty busy, pretty big leasing company, I think it may be a little too high-end of type stores for this busy street cuz see a lot of people travel on the street. See, this is the problem. You got to watch with hight traffic streets. You'll see A LOT OF TRAFFIC on them, but other people stopping and spending any money. This is really a way to connect from Penllis County to Tampa. I don't know if a lot of these people are stopping. This isn't like a neighborhood place. We'd need some multi-million dollar homes around here, you know, high-income residential, which we'll go and look for to really support this place. And this place might be a little too commercial. I love the property. That's a fact. I love the construction. I like the landscaping. You know, it's really nice, but listen, it's all about the money. You can't be emotional. I can't say, "Oh, it's a beautiful place and I want to own it. " Can't do that. I got to work the numbers. They got two vacancies here. Why aren't they not rented? If it was such a hot place, people should be knocking on the door to get in there. You got a lot of health stuff here. There's another separate place that's a med spa. So, basically, you come here, it's a one-stop med shop. Here, you get massages and treatments and lipo. There's a hair place with a lot of chairs. The problem is there's not a lot of people sitting in those chairs. And today's a Thursday. Normally, people want to get ready for the weekend and they're all getting their hair done. Even I'm getting my hair done later tonight. Ooh, Asian massage. That you have to really look into. So, we'll leave it at that. Now, this place I heard has a really good reputation. All you can eat. Good for fat guy. Fat guy come here, eat all he want until they throw him out. It's 1:46. I don't know. Maybe they had a lunch rush and they'll have a dinner rush. I'd have to come back here at night. You always got to find places out at all different times depending on the business. If it's a restaurant, if it don't look busy in the day, that could be okay cuz it could get real busy at night. So, I'm going to have to come back here at night and see how well they're doing. It's a little quiet for me. I thought I'd see more of a buzz going on here, but they got nice cars in the parking lot. I don't always have time to cook and I don't want to eat junk. factor makes it insanely easy to eat well without thinking about it. Summertime is very busy. Between travel, plans, and everything else, I kept coming home to a fridge full of rotten food. Factor fix that. Chef crafted dietitionian approved meals delivered straight to my door.

Ready in 2 minutes, baby. Real ingredients, balanced macros, and at least two veggies per meal. They've got new salads like alote corn and miso edamami. Globally inspired dishes LIKE HONEY SAMBAL BARAMUNDI. MORE Mediterranean meals than ever. 97% of people say factor helps them live a healthier life. Voila. In 2 minutes I have a delicious meal. Delicious. Head to factor75. com or click the link below and use code malorf50 to get 50% off plus free breakfast for 1 year. Baby, that's code maler fp50 at factor75. com to get 50% off plus free breakfast for one year. Offer only valid for new factor customers with code and qualifying autorenewing subscription purchase. Basically, this property consists of two sides. You got this side, you got that side, and you have a road that leads to a hotel. The thing is, if it's a hotel, that's more of a travelers. Travelers typically, I don't think they would come here for the cold plunge and different types of things that you need reoccurring people to come to. First side doesn't really have me uh jumping up and down for this deal. Now, here we're starting off with a Buffalo Wild Wings. which I know is a very good brand. So, it really pays for me to come here at night, see how this restaurant's doing, see how people are doing over here. Uh, we definitely got to come back to this place, but let's keep going. I mean, you really got to try to understand the business when you look at these places because you're really investing in their business. If they don't do well, you can't do well. And you know, like I said, this is somewhere I got to come at night because cigar, if it's a cigars, but is it a cigar bar? That's where they make their money on the booze, too. We got to look in there and see if they selling booze. They got some seating outside, but you know, these cigar bars are doing pretty well. He doesn't have a big space. Nails always doing good. Seems like most of these cars are around this nail shop. And then they got Thai cuisine, they got pokey, you got, you know, a lot of different food places here, which could be the real strength, the food, because people got to eat. You got Thyu, you got Vietnamese, you know, we had the Buffalo Wild Wings. Uh, so, you know, it's definitely a place that's providing a lot of food for the neighborhood. And the nail shops normally always do pretty well. And the hair shop should be okay. Cigar guy, we have to come out here and check this place out at night. and see if these restaurants are really making money. If we came out here just now and based our opinion on what's going on right now with these type of businesses, that wouldn't be doing your homework. That's only doing half your homework. That today, I just got to look at the property. Keep in mind, when you buy a place like this, if you ain't got a tenant in it, you as the landlord have to absorb all the common area cost, your CAM is on you. So, you're not only not making money, you're losing money. Okay. Everything has two different things to it. The good and the bad. And in your case, Rafal, the ugly. I never understood why restaurants close on Sunday. I mean, I know Chick-fil-A does it for religious purposes. Maybe they do, too. Sunday's the day everybody wants to eat out. That doesn't make any sense to me. And what do we got here, Tai? Oh, it's pet dental. You could have really came here, Rafal. You qualify as both. You got a dental problem and you're a pet. I mean, I never I heard of veterinarians. Honestly, it's the first pet dental I've ever seen. I didn't even know they had special dentists for uh pets. I thought it was the vetinarians that do it. How do you know when a dog has a toothache? You can't tell you where you go or he's chewing his food on the side of his mouth. I don't know. I never had a dog tell me that he had a toothache. They're getting a bagel guy in here. We hope — this is the way to start your day off Jewish style. M. If you're ever judging a property's business by the number of cars in the parking lot, how many businesses are there? How many employees are in each business? Because if there's 10 stores here, especially restaurants that have several employees, there could actually be cars that belong to at least 20 or 30 employees. Let's be realistic now. So, you can't just count cars when you have these smaller places, okay? This place could have a lot of cars parked, but they may NOT ALL BE CUSTOMER. THEY could be working, baby. But the first thing is I got to make sure this place is making money. Okay? Cuz if these people ain't making a lot of money, I'm not going to be making a lot of money. If you're thinking about buying a strip center retail site, go to bmail. com. Go to consult with Ben. Get me on the phone and we'll talk about everything you

should be doing that I would normally do. What terms of the leases are. Are they single net, triple net, double net? What's the landlord responsibilities? Who's paying for this? Who's paying for that? What's the condition of the property? Is there any upside with the vacancy? What's the future going to be looking like? That's what we got to do. So, go to bed. com, consery legal. You want to talk about diversification? This is diversified real estate. We did own a cookies. Ben built it in Tampa. They paid their rent. Everything went well. Well, now I'm looking at what's on the market and this popped up. It's medical marijuana, baby. YOU WANT TO GET HIGH? WELL, YOU CAN BUY the place without smoking it. So, we're taking a look and seeing it's a true triple net. And do we want to invest in this sector or this market of real estate? This place is all about green. Not my type, but the kind of green I like. Okay, let's get down to the reality of it. Number one, banks aren't really going to want a loan on this asset. So, that's a big, you know, something to consider. Okay, and everything. You have to weigh out the good than the bad. They do offer a higher cap rate on these assets. Why? Because banks aren't going to loan on it. It's not federally 100% legal or at all federally legal. The states have picked it up. It's uh medicinal. It's not recreational here. Uh there's a lot of things and a lot of people just don't want to own it, okay? Cuz they have some morality. But you know me, it's all about the money, okay? They're not doing nothing. If the state approves it, then I approve it. So it's let the state worry about what's good and bad and right and wrong. But it's definitely part of today's society. It's a boom in business and we're going to consider it. But you're going to get a better cap rate because you're taking on more risk. More risk, more reward. That's the way it works in everything in life. Okay? I get a lot of calls from people. They ask me about this type of business. Yes, I have owned it. Yes, it was profitable for me. They paid a higher rent. You get a higher cap rate when you buy them. It has a lot of positive things. But you got to do your homework like everything else. You got to look at the location. competition. You got to, you know, see if the market's too saturated. I know in places like New York and California, it went recreational, the market's totally saturated. You know, it's a gray area in real estate, but it's doable and everybody has their own risk tolerance. If you have the tolerance for this type of risk, it could be the right deal for you. Go to bed. com, consult with Ben, and let's talk about your risk tolerance. All right. Ari sent me a docu sign. I'm buying real estate on my phone. And right now, you know what? Ari just sent me a brand new Tesla dealership with a 15-year lease. And with the price of gas today, I think Tesla's a good deal. So, we're going to review the contract and see what the terms are, what the purchase price is, and all that good stuff. So, let's see. We're offering him a quick cash deal cuz we want a discount. Quick deal means better price and he's going to put down a million dollars hard cuz we're going to do a homework before we sign the contract. We're going to read the lease. We're going to do an inspection of the building, but the building's brand new. I doubt I have to worry too much about a brand new Tesla, do I? Okay. And we're going to sign the LOI, which is not binding, and see if we can get to the price. Once we get to the price, then we'll move to the contract and then that's when the things get serious. Okay, we're going to switch to a little multif family. All right, so here we are quiet little street, not far from my house. You got seven units here. Not something I typically buy, but something you might want to consider. Okay, it's seven units. It's easy to manage. You got a pretty decent looking nice roof there. It's pitched. Uh looks like they put new windows in. They gave it some fresh paint, but I could tell you, I have to look it up. This is an older property. All right, but it's maintained pretty well. This is a good starter property for somebody looking in, they get a small commercial property. Okay, but you got to do the numbers. Okay, I think they're asking like a million bucks. You know, from right now, from where I'm standing, it ain't worth a million bucks. We got to look at the rents. Rents are pretty high right now, but I think they're coming down. All right. We got to look at what the operating costs are. It doesn't look like these units have central air conditioning. I'm seeing wall units here. So, that tells me the property was probably built back in the 60s or 50s even. So, we're going to go back. We're going to take a look. We're going to

show you the numbers. We're going to see the rents coming in. what the expenses are. We're going to adjust for taxes because when you buy it, your taxes are going up. Why? Because the last owner had it at a lower value. So, let's go back. We'll look at the numbers and see at what price would we offer on this property. All right. Rafal was thinking about buying a small little commercial property in our area. He wants to own the Pock Apartments. Turns out the place was built in 1951. It's [clears throat] older than me. The seven units they claim are bringing in $139,000 a year in rent. That's what they claim. I think those rents seem a little high because you got to play it safe and I think rents are coming down right now. In my calculation, if I had four studios, I don't think you get more than a,000 bucks a month for a studio and that's pushing in that little place. So, basically, you got 4,000 in studios. Then you got a onebedroom, maybe you'll get 1,200. twobedroom, maybe you'll get 1,400. fourbedroom. I mean, that could go for at least 2,200. That's only 8,800 a month. 8,800 a month is only 105,000. They're coming up with a whole lot more rent. So, we got to verify. It could be they have leases for this stuff. Could be rented to section 8. I don't know. We have to find out. But, let's just go with their numbers right now and see if these numbers make any kind of sense. You got $139,000 worth of rent. Well, they claim the annual expense for the utilities, the lawn, repairs, and miscellaneous is 23,000. We're not going to go into the hundreds cuz I ain't got time for that. Then we got property management, which is optional. I'd throw it in because if you don't, if he manages it himself, he'll still spend that $11,000. $11,000 for the property management. Then they got the property taxes at 6718. But if he bought this place at their asking of a million1 and you multiply that by 80% that's 880,000 times 2% that's 176. So their property taxes they're showing you are with the previous owner. The new owner is going to pay a lot more. Baby, we might get that bill down about 15,000 a year. So, you better put down 15,000 for taxes. Where's the insurance? Estimated insurance. They got a five, six grand. I know it's going to be at least six grand for insurance. That leaves us $84,000. That's what we should be able to bring in. So, if you paid them a million dollar for this property, you could be looking at an 8. 4 cap rate at 1 million big ones. But I have my doubts on a deal like this. I want to see the leases on the property, okay? And I want to see the exact bills for the operating. I want to see the lawn bill. I want to see the water, any utility bills they're paying. You know, you got to do your homework. Okay? It's an older place. Could it make you a good return on your investment? Yes. But let's see what the number is if you finance it. So, let's say you paid these guys a million bucks. Well, in this market, the bank is probably going to want to see 25% down. Okay? So, that means you're going to borrow 75% $750,000. Now, in this market, $750,000 is going to cost you probably about 6. 5% interest. Your interest only is going to run you about 49,000 a year. Now you take your 84,000 that you hope to net and deduct your interest, not counting principal because you're buying down your debt. So you're still kind of making the money. On paper, you're going to make $35,000 a year for an investment of $250,000. What return is that? It's going to give you a 14% return on your money. 14%. And you will depreciate your rental income over 27 and a2 years. ly you're going to pay very little tax of any considering the age of the place. I don't know if those rents can hold at the numbers they're quoting. I like this deal a lot better at a hundred a door. Especially because there's four studios there. Okay, studios are small. They don't get a lot of rent based on the area, the age, and the income. You know

I I'd like to pay them a lot less. Okay. Did the numbers work at a million? Yeah, they could work at a million, but they have to be verified. But if I was a fool, I would be writing an offer for $700,000. The propertyy's 70 plus years old, 75 years old. You know, you got to really inspect the plumbing. You're going to have to inspect the electrical. The roofs look good. From the pictures, the interiors look good. But listen, it could be a good deal, but great deal if you buy it at the right price. Because if you have a vacancy of two, you're not going to have that $84,000 a year coming in. If you got two vacancies, you could be losing a couple of grand a month's risk. Okay? You got to have that cushion for the risk. And you got to get it for the cheapest price possible. If you got a deal you're looking at, get me on the phone. Go to consult with Ben. Let's sit down. Let's go over the numbers. property and see at what price does it make sense for you. Cuz if it don't make sense, it don't make dollars. I have helped people make and save millions of dollars with just one phone call. — But at 585, that's where he thinks he could probably get them to say yes at like a 59ish. — I really don't want to buy into fives, you know? I really want to try to hit that six mark. Where you at now? You're at play the game. You're offering them how much? What was the price? — 6 and a quarter. — The price was 21,300. — And you're telling me I got 15 years on this, right? — 15 years. — Okay. There's no options, none of that [ __ ] None of that. I got straight 15 years. I could sleep, right? — Yes. — What? I got the roofing structure on a brand new building, right? — Correct. — And I have warranties on the roof. Correct. — Yes, that would be the assumption. — And the building, too, maybe. I don't know. We offered them a six and a quarter cap, right? — Yeah. — What about a 615 cap? — Not everyone likes playing the game the way you do. They know that if they wait or they believe that if they wait. — Well, that's the question. Do they want to wait or do they want 20 something million bucks in their hand right now guaranteed? You know, you get some kind of discount for putting our money where our mouth is. Go with the 615 cap. You know, try to play the game, please. This is a big deal and it's big money. And um let's see, you know, try just do things in writing, you know. — I am — all this verbal stuff doesn't work with this [ __ ] It's all about writing. He puts it in front of him. — Yeah. — We showed the guy that we're showing willing to we're willing to, you know, we're engaging, you know? We're not just sitting here running our mouths. — I DON'T BELIEVE THIS LIFE I GOT. — LISTEN, you got to use brokers, okay? The broker found a deal for me. He's out there looking. He's spending his time. He's going back and forth. He's double-checking all the information. He's helping me make sure that I buy the right deal and get the right terms. You know, that's why Ari is very important to us in the retail division because he works for a living. He earns his fee. Okay? And the broker's getting paid by the seller. I mean, am I paying it in price? Yeah, you can look at it that way, too. But the point is, always hire professionals so you got some backup and you got some help. Don't go out there trying to wing these real estate deals on your own. Could I do it on my own? Yes, I could. But I'd rather have somebody there with me on my team. We're still waiting. What are you waiting for? This beautiful castle could be all yours. And let me tell you something. I'm ready to make a deal. And let me show you the value in this. Okay? Cuz if you and I'll prove it. If you come to this beach right now and you WANT TO BUY A HOUSE, you're going to pay 10 million bucks for a knockdown. PEOPLE ARE DOING IT. I CAN PROVE IT. THIS thing is practically three lots. You're getting $30 million of land. So basically, you know what that means? You're getting this baby for free. And I'll tell you right now, to build this thing, it would take you four to five years and would cost you another 30 million. So you can get this house for 50% on the dollar of what today's replacement cost is. We're all you big shot New Yorkers that don't want to pay that tax no more. Florida, no tax, baby. And forget ABOUT SOUTH FLORIDA. SOUTH Florida is too busy and it's got too much going on. This is heaven. Look at this. This is living, baby. It's just too big for me. I'm scaling down. Kids are going to college. I'm done. I don't need a big place anymore. Otherwise, I'd keep this place forever. And this place is built like a fortress. Top of the line. No better

house around. So, you better go ahead and contact my agent and make me an offer. As soon as all the problems in the world go away and the wars stop and the gas comes back down, this house will be worth double what you pay for it. So now's your chance. This could be all yours right here, baby. Even comes with bowling balls. And if you look at any of these other neighbors of mine, if any of them put their house in the market right now, you'd be paying more per square foot on this particular town that we live in. Okay? This is considered a private beach. You're not going to come out in your backyard and see anybody unless you're living here or connected with a house here occupying the beach. People can walk through, but really my land is half this beach. Okay? And the only people you're going to see sitting out here, not people, is the birds waiting to go eat. So, if you want privacy and you want luxury and you want to live in the most safest, beautiful town you could imagine, this is it. Don't miss your opportunity. You only live once. You want to help somebody get into real estate? Share the video. Adios, amigos.