A&E Reality TV Star Dave Seymore joins the Passive Cash Flow Podcast to explain how he was able to land a lead position on “Flipping Boston” for multiple seasons to build his brand and teach people how to flip houses. Dave breaks down everything from how he got selected to the show, the experience of being a participant on a reality TV show, how much he was compensated and how he was able to turn the popularity into multiple businesses. Dave explains his investment firm and Florida developments he’s working on as well.
Dave Seymour, a retired 16 year veteran of the Fire Service launched his Real Estate career during the last market crash, rapidly becoming one of the Countries top investors. Dave is considered a leading expert in commercial multi-family and Ground Up Development transactions. His success in business and Real Estate put him on the radar of A&E television network as well as multiple news organizations like CBS, ABC, CNBC, and FOX News. “Flipping Boston” aired on A&E for multiple seasons. Dave is a no nonsense investor with zero tolerance for inefficiency. He has helped accredited investors on their very first deal as well as guided large investment firms through complex transactions. Dave’s unwavering commitment to success is why investors seek his advice and choose to invest alongside his team at Freedom Venture Investments.
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This is not a solicitation for funds, tax advice, or legal advice. This is not intended to be, and must not be construed to be in any form or manner a solicitation of investment funds or a securities offering. Peoples Capital Group LLC is NOT a United States Securities Dealer or Broker nor U. S. Investment Adviser is a Consultant/service provider and makes no warranties or representations as to the listener or viewer. All due diligence is the responsibility of the investor.
Transcript:
00:00:00:00 – 00:00:26:09
All right, ladies and gentlemen, welcome back to the Passive Cash Flow podcast. I’m your host, Aaron Frank Nieto, and we have an interesting guest here, a, local celebrity from flipping Boston. We have Dave Seymore with Freedom Venture Investments. How are we doing today, Dave? We’re doing well. Nancy, thanks for having me on the show. Appreciate it. Absolutely, absolutely.
00:00:26:09 – 00:00:52:14
Yeah. When, your team reached out to me here, I said, wow, this guy is, a TV star, fund flipping bastard, you know? And, I wanted to have you on the show here, you know, and you do some development and work with investors. But before we dig in all that, I guess my question is, you know, I can’t even really watch those, like, yeah, those HGTV shows, you know, they just kind of, some of them I have I actually haven’t seen flipping Boston, to be honest.
00:00:52:14 – 00:01:16:03
But some of them, they’re just ridiculous. It’s like we bought this for 200,000. We put 50,000 renovation in and we sold it for 300,000. So we made $50,000 in profit. And I’m like, oh, yeah, I’m screaming at the TV like, yeah, operating costs. Like, are you, you know, holding costs, acquisition costs, closing costs. Like you lost money on this.
00:01:16:03 – 00:01:43:19
If I buy something for 215 or sell for 300, you lose money because of all those costs that that are involved in the flipping of real estate. And, so they drive me crazy. So I just, watch other things. Like Yellowstone. Great show. But Yellowstone is a great show. I would rather watch Yellowstone with that beautiful redheaded lady in there that I wrote that there with, with reality TV shows that I’m with you 100%.
00:01:43:19 – 00:02:06:22
I need a Beth on my staff sometimes, right? Yeah. Yeah. It’s her name. Beth. Yeah. Killer Hillary, too tight dress. What a great, great character she plays there. Yeah, that’s great stuff. Yeah. So, anyway, what was it like being on on a reality TV show there? Yeah. Look, it’s, to your point, there were needs to be emphasis show right at the end of the, at the end of the statement reality TV show.
00:02:06:24 – 00:02:28:03
It’s unfortunate, and I hate it because you did. It’s unfortunate that it’s allowed to be as loose as it is with development numbers, whether it’s a single family flat or even in our world today. Be honest. Right. There’s some guys out there slinging some pretty, pretty heavy crap against the wall with, you know, seven, ten year projections at 7% rent increases.
00:02:28:05 – 00:02:49:24
And they think it’s a great deal. Right? It’s the same. It’s the same stuff on a larger scale. It’s just B.S. in a box. But, you know, the the world of reality TV shows is an interesting, animal in and of itself. It creates, a couple of things. It’s, you know, it’s it’s treasure hunting for those who are not happy with their financial position.
00:02:50:01 – 00:03:16:12
It also touches on the plenty Do list for every Sunday. Right. How do you do this? How do you do that? I want this paint color. I want this kitchen. I want this bathroom. And then you can add the, you know, the dynamics of, of construction characters, you know, money guys and girls, etc., etc.. So, you know, you could write a pretty good soap opera show, without it actually having to be in reality, you know what I mean?
00:03:16:12 – 00:03:38:14
Like, you could play those characters perfectly. And what happened was, is when a TV, looks at a, a company that’s doing any kind of development work, they want to see characters first. They are not invested in the honesty of the numbers. They’re not invested in anything. They want to see a piece of crap. They want to see some drama.
00:03:38:19 – 00:03:57:18
They want to see a beautiful house on the back end and a happy couple buying the home. That’s it. That’s the that’s their model. But, you know, for me, I landed in that world by a set of circumstances which today, I believe was kind of like a little bit of divine intervention. I think God’s got a plan for all of us.
00:03:57:18 – 00:04:20:13
And his plan for me was, you’re going down this road whether you like it or not. But, I came out of a, an education space, the seminar world. I was a student in a, in an education space. I had done 16 years in the fire department as a firefighter and paramedic and, well, construction on my days off, as most firefighters tend to do.
00:04:20:15 – 00:04:37:15
And, that was where I really learned the value of sticks and bricks. I also learned the value of digging a ditch in January, trying to get down to a frost line. So, you know, I’ve got I’ve got scars to prove it. I learned how to, navigate within the the ego world of construction, whether large or small.
00:04:37:17 – 00:05:02:23
And, you know, during that period of time, I’m doing this seminar stuff, I’m doing construction. But what I found was, was in the education space, I had gone from a blue collar mentality to an investment mentality. And with that came, some pretty dramatic changes in my life, one of which was learning how to use other people’s money in real estate transactions, learning how to negotiate a good deal so that everybody wins, learning how to.
00:05:03:00 – 00:05:27:12
And I’m not be the pig that gets fat, right? Just just do good works and make great money is what my mentors taught me. And one of my mentors was in the, internet marketing space, a guy by the name of Russell Brunson. And and Russell sent me a, sent me a link to a TV show application, and, I know that I’ve been around these internet marketing guys and girls enough to know that I needed to separate myself.
00:05:27:12 – 00:05:45:02
What’s the difference between Aaron and David? Why should people listen to David instead of our. Why should people listen to Bob instead of Shirley? All right. What what what can you do to differentiate yourself? And let’s be honest, there’s a lot of a lot of noise in the marketplace or a lot of bling bling. You know, I got a Rolls-Royce at a private jet and all that crap.
00:05:45:04 – 00:06:00:09
But I use that knowledge to to attract the attention of the people making the show. And I, I said in an application that was loaded with profanity, things that I should never say, neither in church nor in front of my parents or my grandmother. And it got the attention. It got the attention of the people who were making a show.
00:06:00:09 – 00:06:18:06
So they came out to us, got a little demo, and then they said, you guys are funny. You know that big English guy? I’m from England originally. I immigrated in 86 from London and they said, that big English guy looks like he could get angry all we want to see more of that. Right. So Phillip in Boston was was born and that’s that’s how it started.
00:06:18:12 – 00:06:44:04
Yeah. That’s cool, that’s cool. Yeah, yeah. At People’s Capital Group we help you invest in real estate, build your wealth by owning professionally managed apartment buildings in the northern new Jersey market. We want to show you how owning real estate is attainable, even for the busy professionals that don’t have the time or experience investing in real estate. Now, we only work with select people who are serious about building wealth.
00:06:44:08 – 00:07:10:02
So find out if you qualify at People’s Capital group.com. Yeah. And and they compensate you right for your time on the show. Right. Like, yeah. It’s Yeah, yeah. Do you want to know the numbers? Because I’m more than happy to tell you. I’m curious. Yeah, yeah, yeah sure I yeah. So the first three episodes we did a test run, me and the guy that I did the show with, we made $1,500 apiece.
00:07:10:04 – 00:07:30:08
Oh, wow. Okay, so I really got to flip a house, and I really got to make money. Otherwise, I’m going out of business, right? Yeah. Yeah. Once we, we hit the ratings numbers that exceeded their expectations. The first, show aired, and I think it was like 1.5 or 1.7 million viewers who just stayed and watched from beginning to end.
00:07:30:10 – 00:07:58:11
Right? On a Saturday morning in that timeslot. And they’re like, you guys are gold. We want 15 more episodes. Okay. So that’s when we brought in representations. Now you got some value added. Yeah. I think I think we went from 1500 Aaron to maybe, 12 or 15,000 an episode. Okay. Not not, you know, you’re not, you’re not, it’s it’s not Kim Kardashian money, right?
00:07:58:13 – 00:08:18:24
It’s not like a dog. It’s not, you know, Joanna and Chip and Joanna Gaines or any of that stuff. But, we did 15, and then they asked for another. I can’t remember what it was. The third, the third tranche of episodes was, was 30,000. So, you know, from a business perspective, what do you do with that?
00:08:19:00 – 00:08:42:17
Obviously there’s inherent value in it. So for us it was to then create, marketing funnels either to our own education because I came from that background or whether it was for locally getting good leads to do deals locally to raise capital, continuing to protect your reputation at all costs. So the real money are the real value in a reality TV show.
00:08:42:17 – 00:09:07:21
Isn’t the 30 grand for an episode. It was interesting. They sent, they sent the wrong contract to us and I got to see how much they were getting paid by the TV. By the TV, company. So you’ve got a TV production company that makes the show, and then you’ve got the talent. Yeah. And, the disparity between, you know, I’ll just tell you, it was six figures and above per episode.
00:09:07:23 – 00:09:25:08
Oh, if I can, I’m making 30 grand, right? Oh, wow. Wow. Yeah, yeah, there’s a lot of money in it, man. Is a lot of money and stuff. You had representation? Yeah, it sounds like you did all right on it, but it’s, But you got you got to hit it. You got the. You have to get the ratings to get any type of sizable income from the show.
00:09:25:08 – 00:09:44:15
It sounds like. Yeah, yeah, it’s, you know, it’s it’s interesting. And then once you get that show and you’re the expert. The amount of people that will come out of the woodwork that would start pitching us there. You know the reality TV ideas. It’s funny. The people that are absorbed in that world, every one of them thinks they can do better.
00:09:44:17 – 00:10:05:18
Right, right, right. And that demo reels up the ying yang sizzle reels from everybody and anybody. Yeah. And unfortunately, it takes it takes us a certain something, something to have a show. And I hope that never comes across as ego. I always talk about day from flipping Boston to some other guy over there. Yeah. Because otherwise because there was a performance man.
00:10:05:24 – 00:10:35:10
You know, it’s it’s showtime. Right? You know, who you’re talking to right now is days they’ve seen, you know, the real estate developer, the firefighter, the husband, you know, the father. It’s a different guy altogether than the TV guy. But leveraging that is critical. You know, when you’re sitting, you know, we got invited into, into New York to sit down on Squawk Box with, Joe Care and and, Becky Quick and, you know, Andrew Sorkin, you know, you’re sitting there in the studio, you know, that guy’s somebody’s that guy sitting in the studio.
00:10:35:12 – 00:11:01:15
I’m nobody but that guy sitting in the studio. That’s somebody, I learned learning how to leverage that. It’s a business. It’s an asset, you know? It’s an asset. Can you. Can you work that asset to the best of your potential? And if you ask me honestly, if I had, I would tell, you know, I would tell, you know, because along the way, there is a lot of, opportunities that I’m based in my, you know, my own bar on Chris.
00:11:01:15 – 00:11:20:11
Your values. You know what I’m saying? Right? Right. Just because just because it’s legal doesn’t mean it always sit tomorrow. You know, I, I’m saying absolutely no. You know, we we, personally, you know, our family of my choices of have kept me at a lower income bracket, but I sleep. I sleep well at night. That’s more important, you know?
00:11:20:11 – 00:11:40:01
And to have that, that faith in that moral direction is more important. And to follow it, for sure. Selling your soul. I mean, that’s, Yeah. You don’t want to be some Hollywood elite. I mean, those. Yeah. You before you seen it. If I saw it first hand, man, I saw it first hand. It’s, Man now.
00:11:40:03 – 00:11:59:19
Yeah. I’m not going to mention his name, but there was one guy. He was part of our education, group there, and him and his wife, hit it pretty big on HGTV. And when they first came in, they were the new kids on the block. And we were the cool guys because we already had, you know, ten seasons under our belt or whatever.
00:11:59:21 – 00:12:23:03
And then you saw that change, you saw that changed, and they went from being the the appreciative, you know, somewhat timid, respectful group. Right? So that been next time I saw about an event that we were doing in Vegas and you got to go comes rolling in with a frickin entourage. You know, he’s got a straight up his wife is carrying, like, a little job free, say, under a rob.
00:12:23:05 – 00:12:52:21
Right? Like what the what? Oh. I got so I could drop a few F-bombs. I was like, what do you mean? What are these? What happened? Yeah, yeah, happen. And it’s ego. Ego? He’s got out. Ego and and I don’t look in business and in TV world and in church and kids sports and whatever it is, I try very, very hard and sometimes I fail, but I try very, very hard not to tear somebody else down to build me up.
00:12:52:22 – 00:13:08:01
Right? Right. Don’t, don’t, don’t get ahead at the expense of somebody else. Sure, maybe I could earn a better living. I don’t know, but it is what it is. Nah, it’s like you’re doing fine over there, Dave. You know, I think you made the right choices. You know, and that’s important to use that. That show’s kind of a launching point.
00:13:08:01 – 00:13:30:01
You know, it’s a great resume builder, you know, and it definitely helps you, get great notoriety during that time. And, and, you know, yeah, you can go a couple different. You can start selling window dressing like, Chip and Joanna Janes. Yeah, yeah, whatever. Yeah, yeah, yeah. But, it’s, it’s a complicated space, you know, and you can only sell so many things in this world.
00:13:30:01 – 00:13:50:08
You know, if you were developing real estate and actually flipping houses, you know, as you do, that, that is, that does require, you know, a lot of focus and attention and skill set to manage and develop that business. Or you can go the route of, you know, selling education and products and so on and building a brand there.
00:13:50:08 – 00:14:14:07
And there’s nothing wrong with that, you know, and there’s, there’s a lot of growth potential there as well. But, I think the reason a lot of us real estate investors get into this is because our passion is actually in developing and doing real estate, doing deals. Yeah. Real estate. Yeah. Taking a house and turning into a nice home that a family’s going to enjoy, or developing an apartment complex or a place where people are going to live and build and grow their families and their lives.
00:14:14:07 – 00:14:33:21
So, I personally that’s where my passion lies, you know, never really much got into the education space or selling product space, you know, and, maybe I should have, right. Maybe that there is there’s a lot of income to be made there. And it is a great way to become a thought leader in the space, especially selling education.
00:14:33:23 – 00:14:51:16
But, you know, I, I like. Yeah, your story there. It’s definitely, an interesting way to go about it. Really exciting that you were, you know, selected on the show there and did so many different seasons. And then so as that wound down, it sounds like you, you eventually made your way to Florida, and now you’re developing real estate in Florida.
00:14:51:16 – 00:15:15:07
Is that correct? Yeah. We are. So I stayed I stayed in Boston, I’m in Boston, I got offices up here in Boston, offices in Fort Myers, in Florida. So at the end of the Covid, debacle, I had, a lending business hub, money lending business. I was working with a $50 million line of credit from, some, from out of New York.
00:15:15:07 – 00:15:36:17
And when Covid hit, they shut down my lending capital. Wow. Put me out of business pretty quick. Yeah. I was blessed that I had enough resources to still, follow through with my borrowers. We had about 16 million in the pipe that we needed to fund, but we got that funded, even though we lost that big source of capital because we would just turn in the notes over.
00:15:36:19 – 00:15:53:01
But when that business crapped the bed, it was like, you know, obviously you little ones, everyone’s going through this crazy fear factor for a couple of weeks and you put some intelligence into the mix and it’s like, okay, well, it is an end in the world’s coming back. It might look a little bit different. What what do we do next?
00:15:53:03 – 00:16:09:02
And I reconnected with, my partner down in Fort Myers, Walt and Vicky and I had another partner with me, a young guy, Eric, who actually came out of, one of the events that I was training at. And, I said to Walter, you know, he’s my age, late 50s, early 60s. I’m like, you know what’s next, man?
00:16:09:02 – 00:16:33:16
What’s this Covid crap? And what this concept was, you know, he’d been syndicating deals his whole career 30 plus years. But he said, you know, one of these Tuesdays was his was his bread and butter. Signed a deal. Raise the money. Do the deal. Small group, you know, maybe five, ten investors Max. He said, would you be interested in using that guy from the TV show to raise capital?
00:16:33:18 – 00:16:51:21
And we’ll we’ll try the fund structure and, you know, we’ll develop and do some stuff in Florida. We believe there was going to be a lot of opportunities post post-Covid because of, you know, the, the the lack of capital flow, the lack of challenge. You know, there’s a lot of stuff going on. But we all know what happened.
00:16:51:21 – 00:17:10:15
You know, the government stepped in and screwed everything up, as they generally tend to do, and pretty much so trillions of free dollars without any goods or services being traded for them. Right? Oh, by the way, don’t don’t tell me about inflation. Like that’s the cause. Yeah. Too much money, not enough. It’s a simple it’s not it’s not rocket science.
00:17:10:15 – 00:17:34:23
Basic economics. Yeah, yeah, it’s basic economics. Supply and demand. So anyway, we that’s what we chose to do. So you know, we launched freedom Venture Investments as it stands today. You know, maybe 250, 250 million assets under management and or in contract with, with land potential land development going through various phases. It’s been it’s been a challenge, man.
00:17:34:23 – 00:17:55:11
It’s not it’s a different game. It’s a different game. I mean, the fundamentals are the same. Don’t ever lose money. Do whatever you can. Any and all costs not to lose money. Yours are in investments. And, you know, we’ve been blessed to be in that position, but, you know, when you’re a steward of of millions of dollars of other people’s capital, you’ve got to do it the right way, man.
00:17:55:11 – 00:18:14:22
Otherwise, you know, I’m not sleeping at night, right? And, that that’s not good. I’m, you know, I’m a steward of other people’s capital. That’s my number one job. After that, you know, how do I velocity’s that capital? Can I pivot? Is my documentation structured that I can I can make choices and move fast when we need to right now.
00:18:14:22 – 00:18:39:05
So we’ve we’ve we’ve we’ve hit some bumps, but God willing so far we’ve got over every one of them. At People’s Capital Group we help you invest in real estate, build your wealth by owning professionally managed apartment buildings in the northern new Jersey market. We want to show you how owning real estate is attainable, even for the busy professionals that don’t have the time or experience investing in real estate.
00:18:39:07 – 00:19:02:17
Now, we only work with select people who are serious about building wealth. So find out if you qualify at People’s Capital group.com. Good, good. Yeah I mean that’s that’s tough space. You know costs have skyrocketed in the last four. Yes. Yeah. Labor materials land. Yes I know development has been it’s been very hard to pencil out.
00:19:02:19 – 00:19:20:00
Developments really slowed down, especially the last couple of years. And then there’s been a lot of supply to hit the market, too, especially in Florida. You know, you hear rumors of kind of oversupply and things like that. Yeah. Why, the Florida market, what what pushed you down there from the beautiful weather in Boston there?
00:19:20:02 – 00:19:40:13
Yeah. That we can solve for sunshine along no matter what. What we you know, no matter what statistics. Look, we all know that statisticians lie. And why does it lie, as you said? Yeah. That’s why I think whatever that saying is, we can’t give them liars and then stats, right. There you go. Thank you, thank you, thank you.
00:19:40:15 – 00:20:06:13
At the end of the day, supply demand fundamental 101. Is there enough population and rent growth and wage increase in the marketplace to sustain that business. Yeah. And then do we what’s the absorption rate. How quick are we absorbing. How quick are we building. You know, what are the options to that to the to the population and the two main drivers to stay in Florida are one, people still can’t afford to buy a single family home.
00:20:06:19 – 00:20:27:07
They’re forced to be renters, so they’re renters by choice. In that sense. And then number two is the fact that the population growth continues. And what’s interested in Florida is, is the median age is increased, is, increasing from the bottom up instead of the top down. So we all know, you know, if you’ve got blue hair and you care and you have a walker, you’re going to Florida, right?
00:20:27:09 – 00:20:50:11
It’s God’s waiting room. They call it. But, what we’re seeing is, is that the urban professionals are moving down there. The minimum, the median wage in as has increased over time. And then we’ve got this, this retirement phenomenon with Florida, where it’s still 1 or 2 in the country. It’s kind of like Arizona and Florida are the number 1 or 2 states for retirees.
00:20:50:13 – 00:21:07:19
Right? And in Florida, for every one retiree that moves there, it garners full service jobs, primarily in the medical field, primarily in the medical field. So now we look at the medical field, we say, okay, where are the hospitals? Where are the medical field and what do they have for housing options? Again, they can’t afford single family homes.
00:21:07:21 – 00:21:29:03
So what we do is, is, even with, the increased units coming into the market, we focus on what we call the missed middle, which is workforce housing. So I’m not building condos that are going to rent at 30, 504,000 a month. And I’m not building to the lower, cost basis either. You know, the section eight type tenant base.
00:21:29:03 – 00:21:52:15
Nothing wrong with it. Not moral, just a number on a on a spreadsheet. Yeah. So we focus on, on that middle, that workforce housing. So that’s my nurses, firefighters, police officers, small business owners, who just can’t find quality housing in a market. So that’s number one. And then and second to that is you’re absolutely right that the primary markets, are are oversaturated.
00:21:52:15 – 00:22:12:10
So we go to tertiary, we go to secondary and tertiary markets outside the MSAs, and we start looking in those areas and we find these pockets of opportunity, throughout Florida, we avoid the coastline, our chains of hurricanes. They’re real. We’ve been through quite a few of them down there in the time that we’ve been, and, established in Florida.
00:22:12:12 – 00:22:33:03
Yeah. And and they, they do change. Not only do they change the landscape physically, they change the landscape of the mentality and also your numbers each time. So. Right. Sure. Yeah. It’s it’s fluid. But if they’re going to be building in Florida for the next thousand years, there’s nobody drops a silly bomb on something. And somewhere, you know, they’ll be building it for a long time.
00:22:33:05 – 00:22:52:06
Yeah, yeah, yeah. No I agree I mean floor is a hot market. In new Jersey here, when you turn 65, you are sent, a plane ticket to fly to Florida. And, it’s it’s a pretty nice gig, you know? And, yeah, some people take it, some people don’t. Right. So it’s, a lot of people that’s kind of what you do here in Jersey.
00:22:52:06 – 00:23:10:15
You basically move down to Florida once you retire. And, it’s a really easy flight, you know, I mean, you could, like, fly JetBlue for like, 99 bucks or something, you know, you get, yeah. It’s an easy flight. Value volume, pricing, my brother. That’s what the volume pricing. Yeah. So Florida and Jersey, we kind of work.
00:23:10:17 – 00:23:30:11
We’re, cousins, you know, we’re we’re very similar. And, same with SBC, the Carolinas law with that as well. But, it’s it’s it’s interesting. Like people in Jersey, they’re they they’re more likely to I feel like invest in Jersey and Florida than like Jersey and PA or something. Yeah. Yeah for sure. Maybe it’s like Ohio.
00:23:30:11 – 00:23:53:23
I keep on getting these deals in Ohio. Right. I’m sure there’s money to be made in Ohio, but it doesn’t. No offense to any Ohioans. Who is that right? Ohioans? Ohioans? Sounds about right. Yeah. Sounds good. You know, I don’t care. That’s what I said. But, you know, I start comparing an Ohio project to a Florida project, to a Texas project, to a Carolina project.
00:23:54:00 – 00:24:11:23
You know, I can’t I can’t find the excitement in it. Right. Think about it. Our investors, my partner said to me one time, he said, you always got to picture our investors going through a book of PMS, you know, maybe 3 or 4 PMS. Yeah. Smoking a big cigar with a cardiac and said, okay, I’ll put 50 here, 100 there, 250 over there.
00:24:12:00 – 00:24:29:17
He said, you know, your your, your investment needs to make sense. I mean, needs to make him excited. Right? And then they start looking at the equity multiples. And if you can start putting, you know, 2.53 equity multiples in front of them under solid underwriting, you know that is an exaggerated and stretched that’s been stressed, tested. He said.
00:24:29:17 – 00:24:49:14
We’re going to do well. So, you know, up here we call them snowbirds, right? The snowbirds, they go from New England down to Florida and back. So yeah, yeah, we got them. So so you’re in the build to rent space. Is that is that ideally right. Your BTR buzzword? Yeah. Yeah, yeah. Okay. Yeah, that’s a hot space.
00:24:49:14 – 00:25:07:17
I see a lot of people doing that. I was, speaking with. I was at the best ever conference about, I just two days ago, and I was at the bar with Neil Bawa, and we were, chat. Oh, yeah, I know Neil. Yeah, yeah. And, interesting. Interesting guy. Very, very sharp, businessman. And,
00:25:07:19 – 00:25:31:24
Yeah, he was showing me his, next venture, which is already launched, and his goal is to basically build 10,000 bill to rent. You know, houses like basic, you know. No, no crazy amenities, nice little backyards, two car garage, maybe, 18 square foot little homes. That just are connected. They’re basically townhouses, but they’re not like big luxury townhouses you see here.
00:25:32:01 – 00:25:55:16
And they’re affordable and, not a lot of whistles and bells, but, you know, nice new piece of real estate to, to rent. And, it seemed like a really interesting business model, you know, and, so he, he’s working with that and that is, I think the next, well, it’s you you’re seeing it, you know, the kind of, getting a nice little home you can rent with it, with the garage and the American dream there.
00:25:55:16 – 00:26:19:03
And, it’s cheaper to rent now than it is to own and, that that’s a really, nice model. I think that I see a lot of success, potential. And there was a couple of companies in Arizona, and I’ll, I’ll paraphrase because I’m not 100% sure on that on the timeline, but they kind of proved the concept in Arizona with like 200 single family homes in one complex.
00:26:19:03 – 00:26:53:08
For example, you know, separated just as you described them. And, they penciled out. And what was interesting was, is that, you know, we always sell the concept of multifamily in the sense of it’s one roof or two roofs maximum. Right. And we’d always we’d always sell the concept of it’s less in, less in maintenance. What was interesting was as I read, I read some, literature on them after they’d maybe been in 3 to 5 years in a couple of projects and maintenance, maintenance costs were a lot lower than they were in their apartment complexes.
00:26:53:08 – 00:27:16:13
And this is where it’s interesting because although they were renters, they bought ownership mentality. So the assets say that again because it was a single family home. Right. A little bit of grass. Nice for the dog place to put the grill. It’s going to school school busses up and down the all American streets. Right. Yeah, yeah. The psyche, the human psyche said this isn’t a rental.
00:27:16:15 – 00:27:36:07
This is my home. Yeah. As soon as somebody says it’s a home that, respect for the physical asset changed. Yeah. And, Yeah. So it’s being tested out. It’s just like the, the office complexes now, right? All these, all this empty office space being converted, to residential. I see a lot of stuff on that. So it’s another hot ticket.
00:27:36:07 – 00:28:01:03
But, sure, we don’t know if that’s going to work. You know, we know there’s a lot we were under and trial at People’s Capital Group. We help you invest in real estate, build your wealth by owning professionally managed apartment buildings in the northern new Jersey market. We want to show you how owning real estate is attainable, even for the busy professionals that don’t have the time or experience investing in real estate.
00:28:01:05 – 00:28:20:19
Now, we only work with select people who are serious about building wealth. So find out if you qualify at Peoples Capital group.com. Yeah, that that’s actually kind of complicated. We’re underwriting a deal the other day and for that and the challenges office was just made totally differently. You know, the amount of luck you put on the floors and everything like that.
00:28:20:19 – 00:28:52:19
But that’s a whole different conversation. But I could see that that pride of ownership is definitely a thing. You know, when you have a single family home. And that’s what a lot of single family rent, landlords say, you know, the reason they focus on single family rentals, because the, tenant does cut the grass and, you know, repair little things and dents themselves and kind of like, yeah, take care of the place better where, you know, on an apartment building, you know, you’re a renter and you know, you’re going to be more quickly, to just call the property management company and complain about anything so that require that to be fixed or, you
00:28:52:19 – 00:29:12:13
know, hopefully at least take your trash out to where you’re supposed to take it to. But, yeah, yeah. These lieutenants and times, that’s good, that’s good. How are you handling, the fact that, you know, inflate with inflation, with increased, labor cost and material cost, you know, seemed like you were getting this started in one of the highest times of inflation.
00:29:12:15 – 00:29:30:11
Yeah. It’s you still have to find deals that can pencil out. Yeah. We are, we are. They’ve got to be off market. They’ve got to have some kind of, you know, hair attached to them that makes them more valuable. Being able to overcome the obstacles that most other people look at and walk away from.
00:29:30:13 – 00:29:53:13
Yeah. So if you could do that, you can pencil them out there. Maybe not as strong as they were three years ago, but the deals that can get done, and I think also one of the big things in this is fluid marketplace, you know, inflation, geopolitical, all of the chaos that we’ve we’ve we’ve been dealing with you know, does your company have the ability to pivot or are they boxed into one, you know, one strategy.
00:29:53:15 – 00:30:22:13
So one of the lessons for us is I always said, you know, we’re small enough to find, we’re small enough to have great relationships with, you know, sellers, buyers, investors, contractors, but we’re also big enough to find the right deals, the pencil out and make sense. Yeah. And then that pivot concept for us, you know, we have a piece of land on McGregor Boulevard in Fort Myers that was, penciled out to be a mixed use building office and a couple stores downstairs.
00:30:22:15 – 00:30:43:19
Sold out beautifully through two and a half years ago. Raised 1.5 of to put the deal together. All cash. Okay. And then inflation. Some challenges that the city somebody didn’t want to tick a box that had already been ticked by somebody else. That box cost me another 6 or 8 months, blah blah blah blah blah.
00:30:43:19 – 00:31:01:04
Oh my god. So now, so now I’ve got a piece of dirt and a business plan that doesn’t fit anymore. I it’s a build. Doesn’t make sense. So what do you do. Do sell it at a loss and say to your investors, sorry guys. You know it is what it is. It can’t change the the facts of the case.
00:31:01:06 – 00:31:20:22
Or do you look for a pivot? And for us, we were blessed right across the street is a high end, golf and yacht club. I mean, I think, a condo community, there’s like three golf courses on there. And they approached us that the tennis club approached us and said, you know, they’ve got these pickleball people.
00:31:20:24 – 00:31:45:17
So they keep on coming on our courts. You know, we we want a pickleball facility, right? And we know you own the land across the street where you build it. Right? Right now, I mean, the pickleball business, I mean the pickleball business, but, you know, my investors instead of a loss, I’ll be looking at, you know, maybe an 18% cash on cash for the first, you know, three years that was stabilized.
00:31:45:17 – 00:32:05:24
But we’re stabilized because the the tennis and country club is is, you know, buying 500 memberships annually every year at a fixed amount. So, you know, the cash flow is, is a beautiful thing. So, yeah, sure. You know. And are you Floyd can can you, can you make money under all conditions, you know, so that’s that’s important.
00:32:05:24 – 00:32:27:00
I don’t know, companies that are able to always think that, like, maybe we’re just lucky, I don’t know. Yeah. Yeah. Well, you know, I don’t really believe in luck. I believe in divine intervention like yourself here. And I like that Christian man. But also, you know, they say it’s about being prepared, you know? Yeah. And and, an opportunity and preparedness meet.
00:32:27:02 – 00:32:47:02
That’s, when you find luck, right? Or they go, that’s the definition. Yeah. Right. And, so it sounds like you’re prepared. You have a good investor base, you have a good knowledge of the market, good developers and builders to, to get the, structures off the ground. And, but that’s great. You know, the pickleball, I mean, that is, pretty hot little, hopefully not.
00:32:47:02 – 00:33:03:10
I was going to say fast that if I say fad, then that’ll that’ll bring you bad luck. I think it’s, you know, it’s I tell you, it’s growing. Yeah. And let’s say it, it dies out in ten years. Am I okay with that? Yes. Yeah. You know, I think you investors have made hold. Yeah. Yeah. Good. So yeah.
00:33:03:10 – 00:33:26:10
Probably refinance. Get that money back. You know, once you stabilize, go, right to a very good. So how can people find you learn more about, what you do there. Yeah, sure. Dave at Freedom venture.com. Dave at Freedom venture.com. Go to the website Freedom Venture Investments. Check me out on LinkedIn. LinkedIn is a good space. We got some free education there around.
00:33:26:12 – 00:33:47:16
What we do, how we do it, how another investor could choose to do it, some passive stuff if they, if they, sorry, active stuff if they want to do the deals themselves. So Google me. You’ll find me. All right. Very good, very good. Thanks so much for coming on here, Dave. Really enjoyed, learn about what you got going on and, a little insight into the, reality TV world.
00:33:47:16 – 00:34:03:16
The dog, your dog, heartless world. Hey, man, least you didn’t find yourself on the Epstein jet. You know, you didn’t make it to. I’m not on there. Thank God. Not enough money to get the invite. Yeah, yeah, you be, you be on that list, by the CIA and have bigger problem had, your pickleball courts.
00:34:03:16 – 00:34:21:03
So, Yeah. Yeah, that’s. It’s all good. And to our listeners, who listening here, you know, share and subscribe. But we do, we’re, been over 100, 170 episodes here. The Passive Cash Flow podcast. It was about 4 or 5 years. And of course, I’m Aaron Frank, you know, People’s Capital Group. We help people build and preserve their wealth in new Jersey.
00:34:21:03 – 00:34:42:03
Apartment buildings up here where, the sun is always shining. Oh, no. That’s Florida. It’s, it’s Florida. Yeah. That’s for. That’s right. Yeah, but something like that. Now we have good, good model up here. So, Yeah, take a look at people scalping ABC.com as well. And, share this episode with, someone you think would gain value from learning more about real estate investments and and business solutions.
00:34:42:03 – 00:35:01:02
And, our last guest was a tax specialist. So, we also focus on IRAs and ways to multiply and preserve and build your wealth, usually in real estate, but all different business, strategies as well. So if you’re enjoying this content, give us a, like, give us a share. We’re on all major podcast platforms and YouTube and, thanks a lot, Dave, for coming on one more time.
00:35:01:02 – 00:35:20:08
What’s that website? It’s freedom venture investments.com freedom venture.com. Freedom venture.com. Excellent. All right. Thanks a lot. Have a great day again. And thanks.
