426 | Spotting A Lemon In A Deal Evaluation BEFORE You Buy

It is so easy to fall in love with the numbers when you look at rental properties.  That's why we love them.

But numbers can also be used to fool you.

That's why we're breaking down deal sheets with bad numbers, so you never get fooled again!

Join us for this week's Not Your Average Investor Show where Gregg Cohen, co-founder of JWB Real Estate Capital, and show host, Pablo Gonzalez, dive into actual marketed turnkey rental investment deal sheets and break down:

- what numbers turnkey providers love to fudge (or leave off altogether!)
- how true-ing up the numbers would affect the returns (aka- KILL returns)
- why JWB rather underpromise than make a deal look better than it is
- and more!

This one is a requirement for anyone not looking to be fooled in real estate!

Join our real estate investor community LIVE: 
https://jwbrealestatecapital.com/nyai/

Schedule a Turnkey strategy call: 
https://jwbrealestatecapital.com/turnkey/ 

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Transcript

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Today we are bringing back a show that everybody loved last time, which is how do you spot a lemon? How do you, how do you sort through all these deal sheets, all these different promises that real estate companies are making? We're going to take a live look into deals that are not being presented the way that, are setting you up to succeed. Welcome, welcome, welcome everybody to your weekly edition of the not your average investor show. I'm your host Pablo Gonzalez with me as always the man that I affectionately like to call GC because he's got the genius concepts because he knows how to generate cash flow because he's a great ghost and because his name is Greg Cohen. Say hello, Greg. Hello, everybody. Fantastic to be with you today. It is great to be with you too. Do you see, I am a, I am streaming in live from Austin. I'm at another one of these property management events out here in a thriving downtown of a city that I can just see where I see the, I see the future of Jacksonville every time I'm in this city, man, it's really, really cool. You know what, my, my wife and I were just talking about places that we want to go next year with the kids. And we were like, let's go check out Austin. I want to go see the downtown. I haven't been there in many years. I just can't wait to see it. So yeah, man, it's a, it is nice to see what downtown Jacksonville will be like as we go from six hour city, eight hour city to 18 hour city, which is what Austin is today. I could open that window and you could see it, but then you wouldn't see me and we all know what's important here. Right? You see, how's your Thanksgiving bud? Oh, man, fantastic, man, fantastic. I was just telling Kate in our meeting, I was like, I think as a family, we've really figured out how to do Thanksgiving well. And, you know, and there's, there's stages as my kids were young, you know, just doing every holiday was a lot of work for everybody involved and now my kids are a little bit older and then, you know, we're just settled into our community and just surrounded by loved ones, family, friends, friends in the community and great weather here in Jacksonville. So couldn't be more thankful. I love it, but I love it. I'm hearing good things from the chat of people. Someone Thanksgiving and speaking of judges who we have a little tradition that we would like to kick off the show. Do you know what it's called? Do you remember? Lay roll call. Lay roll call baby. Kassaf is Joanne, our community manager welcoming everybody. The mystery man checking in from Kuwait. Denny Davies, of course. I didn't know if you were going to take this thing. Are you taking the whole thing? Or you're right. You're right. When I'm away from you, there's too much of a gap. We've got the mystery man. Denny Davis, checking in from Kuwait. Good to have you, Denny. We got Chris Lee from Fernandina beach. We got our lead off batter hitting third today. John Henning with a good afternoon. We got the early bird, Dean Curry, checking in fourth. We got the ring master. Drew Barnhill saying good day to all. We got let me see it from the Empire. We got the MVP. Everybody's heard of Lee Bishop. We got our regulars, Gary and Rosalyn Riley from Marietta, California, who we regard you. Good to have you here. We got our favorite smile from the Pacific Northwest. Pamela Myers saying hello. We got a famous composer and musical score of the stars. John Williams checking in from Long Island, New York. We've got the fairy godmother of the natural average of a show community. Jen feels and checking in from Monterey. What else we got in here? We got the shaman from the Pacific Northwest with his trademark. Good morning. Good afternoon. Nadeem Shah. Jeff Pettyjohn from Missouri. Good to have you. We got Charity Graham back in the house saying hello. Who else we got in here? Good morning from the dear poppy mountains of Colorado. Wow. Billy, you're really, thanks for the, thanks for the softball with dear puppy. Oh, dear poopy. There you go. The easiest one and I mispronounce it. Perfect. Thanks. But you just, you're real, but don't me buddy. Way to go. All right. We got Marie Rockoff rocking in Arizona over there. Good to have you Marie Aaron Wilson with a good day to all. And yes, Sanchez. Teammate JWB. Good to have you in the house at Larry saying greetings all very interested in gems of knowledge here. I've seen some questionable advertising from other turnkey providers. Ed, you're going to love this show, buddy. Who else we got in here? Checking in on the roll call, scrolling through. Of course, the first family of the Not Traverse Your Best Show, Patriarch and Matriarch, Ken, Carolyn, Malene, Whit, Duchess, Karen, Anne, Duke, Ed, and Grand Duchess, Rachel, we salute you! Salute you! You know, I had never used the word Duke before, Ed, so I had to think on my feet there, but I guess if you marry a Duchess You're a Duke, my friend. Vernon Campbell checking in. Good to have you, Vernon. Alma Valenzuela from Long Beach, California. Good to have you, Alma. Misty and Troy Johnson from Denver, Colorado. The ninth most attended shows last year. Still keeping the streak going. Good to have you all in the house. Okay. I think, I think we got, oh, Milady Jack Chatta is in the house as well. And, Milady I think we're going to do. Oh, Santos Vasquez from Texas. First webinar. Santos. We always, we always appreciate when you show up for the first time you check in takes a little bit of courage. We know, and we appreciate it. Make yourself comfortable. Be a fan of the show. And by the way, I'm in Texas right now too. I'm in Austin, Texas. I don't know if you count this as Texas. It's kind of a weird part of Texas, but, good to have you in here. Eric Brown checking in Eric. I think that's a new name as well. Good to have you. okay. Let's kick it off. GC. Before we start, we have got one of the most breakingest of breaking news of all time. What is it GC? Give the people what they want. Is it what they're waiting for? It's time to announce the date for the Not Your Average Investor Summit. Thank you everyone. For your patience, we are putting together something super special this year. This is the, the opportunity for everyone in the show, everyone in the community to get together, to be together, to share friendships and to come down to Jacksonville and get to see this beautiful investment opportunity that we are talking about here with JWB Turnkey Investment Properties. And then get to see what we have been talking about in downtown Jacksonville. And those who have been coming to the summits, I think this is our fourth rendition of it. Now you have seen what we have been talking about. You have seen the blocks of downtown where I said, guess what? That's going to be different next year. And last year I said, this block is going to be different. So this is this opportunity for you to see. The growth of downtown Jacksonville and to get on the inside and to see what's coming over the next two years, three years, five years, 10 years, and what makes it such a great place to invest. So we're going to announce the save the date right now. And tons of details are going to be coming in future weeks, but here's the dates. Mark your calendars, February 28th. That's a Friday. And Saturday, March 1st. So you're going to want to get in the night before on Thursday night. So, Friday, February 28th. Saturday, March 1st. Can't wait to see you all. How fired up are you Pops? I'm super pumped, man. This is, this is like the crown jewel of the community that we've built every single year when we get 100 folks coming in here. I never take for granted the fact that we have all made these like very, very real relationships inside of a zoom chat. Right. Like, let's, let's, let's be real. Right. Like inside of a zoom chat through this roll call and through this kind of like, showing people in the community on the screen and, and, and highlighting like how smart people are that tune in here every single week and giving people nicknames. names and continually acknowledging them on here. We've developed these really, really real relationships where everybody just kind of comes together. It's like, Oh, you're really Bishop. You're Jen Filson. You're in a deep, right? Like every, all, all the, all the members of our communities become the star. Anybody that is. You know, kind of like, is this real? Could they possibly be paying for all these bots to be so funny and so smart inside of a zoom chat, you will be disappointed if you think that that's the case, because these are all very, very real people. Those are all friendships that have lasted for four or five years now. And it's a really, really special feeling. I think my favorite moment in one of these was two years ago. When somebody at the. In the happy hour. I forgot her name now, but she comes up to him and she goes, your company excites me. How could you be doing all this stuff? Right? Like just this like really buzzworthy feeling of all the cool things that are happening. The people there, what's happening in Jacksonville, how much one small company is capable of doing so many significant things. It's really awesome, man. I'm super pumped. You know, It is so amazing. And I just never, I never knew we could create something so special through, through, through an online get together, right? I never knew we could have so many real friendships. So this is just a special time. And the way that we're setting this up this year is going to be reflective of just how strong our bonds are with our friends and our clients in the Not Your Average Investor community. So some events try to go bigger and bigger and bigger and bigger. We want to go better. And so a lot of times that means it's going to be a little bit of a smaller setting last year. We filled the brim as much as we could. I think we had over 125. folks coming in from all over the country. This year, it's actually going to be a little bit smaller by design because we're going to pour more and more resources into this event. So it's going to be limited to a hundred not your average investors who will be at the summit. It's actually going to be limited to JWB clients only. And so, that's many of you are JWB clients. And so we're super excited to have you. So it's going to be a little bit more kind of, let's call it intentional. It's going to be smaller by design. We have events lined up that we're going to be sharing with you in the coming weeks. But it is 100 percent going to sell out. It's just a matter of how quickly it does the last one sold out. Way quicker than we expected and this one, because intentionally we're limiting it to a hundred folks so that we can do more and better for those folks it's definitely going to sell out. So we're going to announce registration sometime in December, early January. We're still putting the details together and we're going to do it live on the show. So I want to encourage you all to be here on every single show. If you're just brand new to the show. Keep showing up because we are going to not announce the registration live on the show and I can guarantee you it's going to sell out very, very quickly. And we'll be doing that sometime in December, January. We'll let you guys know as details come about. Love it, man. Super excited. I think, I think the big aha moment was after we finished last year and we realized we sold it to the brim in like two weeks. We're like, let's double the size, right? Like that was the, that was the initial obvious reaction, but the non obvious thing that I think is really good is I don't think we've ever, we've never built this thing, this show, this community to be a large audience. We've built it to be an intimate room. And you know, we, yeah. We kind of like wrestled with that throughout this, why it took so long, but the idea of really limiting this to the folks that want to be here, that want to see each other, that want to spend quality time together, I think the more intimate we make it, the more that we can actually help that happen, as opposed You know, trying to like get as many people in the room as possible. So very, very deliberate making this an intimate experience. I know a hundred probably doesn't sound like an intimate experience, but trust me folks, it is hard to limit it. It's like when you get married, it's really hard to only, or at least for like a big Hispanic family, like my guest list was like 89 people, just family alone. So having a hundred person wedding was really, really hard. But that's what this is. This is kind of like the, the Royal wedding of the JWB family every single year. And it's the best ticket in town. Well said. All right. And what would it be without Royal Family Karaoke? So I'm seeing some of that in the chat you, you best believe Pablo is going to be rocking it with karaoke. So don't worry about that. Yeah, yeah, I think we had sure we had like 125 tickets sold last year. I think we ended up having more people show up. But yeah, that, that was kind of like the, that was the moment, right? Like it was, we can either, we can either try to accommodate more and more or we can make. The best out of the experience with like exactly the people we want in the room. So can't wait to see everybody there. Can't wait to of course, get my yearly giant bear hug from Lee. and also, you know, reconnect with folks that we've seen over and over again, as well as welcome some new folks that have been part of this community recently, and kind of connect you to it and. You know, at the end of the day, it's also a really wonderful moment for anybody that's really curious about this. I know that, like, Kelly Barenbaum came a couple years ago, and she was just kind of like, on the fence of doing this thing. And once she got here, she realized, Oh my God, I cannot miss out on this opportunity. This is all too real. So, I think it's gonna be a really nice balance of things, and I really can't wait to happen, for it to happen. So get here, no later than February 27th. And we're going to kick off bright and early on the 28th and the, of February and the first, which is Friday, Saturday. If you want to make like a more full week or plan out of all of it, you know, it's really a wonderful time to be in Jacksonville. It is Florida. late February, probably better weather than wherever you live, save for a couple of small spots in the United States. So definitely welcome you to come here and keep an eye on the weather. It might be a little chillier than you think, or it might be a little warmer than you think. Cause that's what it is like summer in Florida out here, but it's never, I guarantee you it's not going to be snowing. It's not going to be, not going to be lake effect snow. Tell you that right now. If anybody was watching the Sunday night football game. All right. You see, we're ready to dive in to how to spot a lemon on these deals. I feel like you get particularly excited with this one because it's, it's a, it's a topic that we've been trying to do for a long time. And I feel like you finally unlocked how to do it. You see, you want to tell me a little bit about like, why it's so important to dive into these other deals. Yeah, absolutely. You know, it comes from a place of really just feeling you know, it's just really hard to get enough courage to get out there and invest in single family rental properties. And there's a million people that tell you you shouldn't be doing it. Nobody really understands it. Nobody, you know, people take shots at this asset class. And so you have to work up enough courage to be able to do it. The reason I'm so excited about sharing this today and really diving in and pointing out things that are not represented the right way is because for a long time, when somebody has enough courage to go and do that first deal, then they work in an environment or with a provider who, who really, either lacks the knowledge or expertise or just flat out is misrepresenting things, it takes that, that one investor's shot maybe of investing in rental properties and it might turn out poorly. And that might take them away from this asset class for the rest of their investing career. And unfortunately you know, what that does is it takes away a beautiful asset they could invest in that could do wonderful things for themselves, their family, their community. And so, you know, I have seen this now for 18 years. I've been around the block. I know how we construct our property evaluations and it's in line with our core values of under promising and over delivering. And I've never seen another turnkey operator present their evaluations the same way that we do. it is always the over promise. And many times under deliver mentality. And so I'm excited to share this today. Obviously, we're going to keep names out of this. We're going to, we're going to keep you know, this is certainly not a place to take a shot at anybody else directly, but there's just so much knowledge that I want to share with all of you about the things to watch out for. If you're thinking about investing with another turnkey operator so that. You can be empowered. You know how to compare apples to apples so that you can make the right decision. And whether this is your first time investing in rental properties, or this is your 50th time, you're going to be well informed and a well informed investor is a more successful investor. Love it. You see, before I do this, I forgot to call out DeHoff from Indy who checked in on the roll call and I miss his name. Joanna brought it up to my attention. DeHoff, happy to have you, man. I think you're a new name. I want to make you welcome. Thank you for chiming in. You always think DeHoff's a new name. DeHoff's my buddy. DeHoff's my buddy for like 20 years. DeHoff and I go way, way back and he's a JWB, uh, JWB client. So good to see you, bud. DeHoff is getting that Hervé Francois treatment where I just like mess it up nonstop. Yep. Cool, man. All right, let's get into it. Let's get into this. The other thing, the other thing that I think is really interesting is this idea of like, if you're a new investor, you know, not failing the first time is, is really, really important. And anybody can, you know, show you some numbers on a spreadsheet. The question is, can they perform? Are the numbers real? Are you really going to have the experience that they're giving you? And for us, you know, like. What really unlocked us being able to do this is the community involvement. It is you all sending us these deals that you are looking at in other markets with other providers, perhaps things that you've been offered in the past that you have questions on. So, I want to continue to encourage that behavior. We wouldn't be able to do this without the folks that are submitting these. We're not going to blow anybody up because, of course, we want to give unbridled opinions here and don't want to make you feel bad. Continue to send these in, send us, send us an info and at the end of the day, if you want these slides, if you want these breakdowns, all you got to do, or you want to send us a deal, all you got to do is text JWB at 904 293 0341. That is not a bot. That is a phone number to, to, to our teammates here and we're here to respond and help you through this journey, help you analyze deals help you make your best decisions and set you up with the right person to talk to. So, if you want these slides, if you have a question, if you want to send us some of these, some of these deal evals that you're wondering about, text us at 904 293 0341. And the last little bit of housekeeping is that. Investors should do their own due diligence. We are looking at, you know, real deals here. We're talking about real numbers. Greg, you want to add a little kind of like context to this? Yeah. I mean, that's, that's really the, the, the long and short of it. Do your own due diligence. These are estimates and these are not guaranteed. I'm going to show you a lot of numbers by other turnkey providers. I'm going to relate those to JWB numbers. And you know, this is a start of your investing journey. This is not the end of it. We are not financial advisors and make your own decisions and invest with the support supporting cast that is leading you in the right direction. One of those people is, or one of those groups is, is the Not Your Average Investor Show, but we are not the only one. All right, let's do it, GC. All right. So I'm going to bring you guys back. Just in my. Adventures over the last 18 years of investing in hundreds of rental properties, myself of managing over a billion dollars of real estate for our clients and in speaking on hundreds of stages into tens of thousands of investors, I've gotten pretty in tune with how. Turnkey companies play the game when it comes to returns on investment. It seems like turnkey companies operate from this place where they don't believe people will buy their properties if they simply represent. exactly what their real rates of return are. They feel like they need to have these very, very hard to ever achieve rates of return, like 15 percent or 20 percent or 35 percent returns in order to sell their assets. And it's a really short term mindset. And so I've really come in tune. I've seen hundreds of evaluations from probably all of the providers across the country. And I've understood the most common ways for turnkey companies to fudge the numbers. And so, this will be great as, as you, you know, ask us for the slides or reach out to my team over text or whatnot, it'll be a, kind of a good, just kind of checklist for you to go through when you're making a decision. And here they are. Many turnkey companies will fudge numbers by not including or underrepresenting maintenance costs. The same for vacancy costs, so they don't include them or they underrepresent them. They underrepresent interest rates, down payments, and or closing costs. They don't include or they underrepresent property management fees. They project higher home price appreciation and or rent price appreciation. They inflate return on investment calculations by not including selling costs. And they inflate year one Profit calculations by including things like tax savings and principal pay down and or home price appreciation. So there's your list. That's what you guys should be watching out for. Got it. You see, yeah, I think this is kind of like the perfect checklist. Anytime that you are talking to somebody offering you a deal to run down and say, you know, A Hey, show me where these maintenance costs are. Show me how you're representing them. You know, like, where do you get these numbers from? Show me where these maintenance costs, va vacancy costs are. Right? Like what I'm saying is this is kind of like the perfect cheat sheet to have with you handy when you're having any of these conversations. So, texting JWB at 9 0 4 2 9 3 0 3 4 1 for just this one slide even though you're gonna get all of them is a worthy endeavor. But let's see how these things perform out in the wild. Shall we GC we shall. So, I came across this evaluation and this is the one we're going to break down in detail so I can show you the good, the bad, the ugly here. And so this is what the, what the evaluation looks like from the, from the, you know, on the first page here. Obviously I've blacked out all of the information that people would, would know for the name of this company. But it's a company I'm not super familiar with. Probably just showed up in the last couple of years, I would imagine, because I didn't know them right off, off offhand. But this is what a typical, I would say, property evaluation looks like. The picture, you've got some information on the left hand side, and usually somewhere maybe bottom right, you've got your estimated returns of investment. And so I think let's go to the next slide and we'll dive in a little bit deeper into the numbers here. Yeah. Do you see, and you said this is a company that just, that just showed up kind of thing, right? Like, I feel like that's common, right? Like, is that, is that another thing to look out for is just kind of like how long you've been doing this, how long you've been offering these things? Yeah, absolutely. So you got to understand that, you know, 18 years ago when we started this turnkey investment model, it was it was not done. There was only one other company that I know of that was actively choosing this business model. We had to inform the marketplace about this business model that it existed. And we had to inform the marketplace about Jacksonville. And so, you know, the idea of Real estate investors or realtors or property management companies, putting it all together and creating a turnkey experience was just, it was nowhere to be found 18 years ago. But if you fast forward and you see what's happened, especially since COVID, what has happened is that. The media and everybody in real estate fell in love with single family rental properties as interest rates dropped right after COVID hit. And that invited a whole lot of people into the space really since, let's call it 2020. And you had this huge entrance of folks that really have no experience holding assets. And creating passive income streams for investors that are planning to hold on for 10 years or 20 years. And and you know, so many of these folks have been here for a very short period of time, driven by interest rates being so low and, and this becoming the investment du jour back in those days. You know, so some signs that folks might not have been around for a while. You can certainly ask for how long people have been in business or how long they've been doing this, but I'll give you a little something to look out for. People will take how long they have been in real estate and tell you they have been in business for 10 years as if they've been a realtor for 10 years, which is probably true. Very different than how long have you been buying, managing. building, selling, creating turnkey rental property. And, you know, to get that answer, you really got to dive two or three steps into the conversation. So a couple of things that I, I would ask if I were you, how long have you been in business for sure? How long have you specifically been selling and managing turnkey investment properties? And how big is your staff? Because if you really want to do this well, you need to have a sizable staff. You can't have 10 people. You can't have 10 remote teammates or virtual assistants to make this happen. You know, JWB has 135 teammates, full time teammates here. And there's a reason for that. That's what it takes for somebody to produce at scale and also to serve those clients for everything they need to make this a passive investment. And you just don't find many companies like that in the country. Okay. I like that, man. Way to, way to bring that home. Let's bring it back up on. And this is sign number one of spotting a lemon. No vertical integration. Tell me how you found this GC. Yeah. So I just go to the company's website. That's where I would start. And, you know, so I, and I don't know this company personally. So I just put myself in the shoes of a, of just another investor here. How would I go about what signs would I look for? And we should first start with. What vertical integration is and why it's so important. Vertical integration means having all aspects of the investment under one roof, and that is so important in an investment like a turnkey rental property, because the number one reason why investors are not happy with turnkey rental properties is because of the experience. They feel like they buy a property from a realtor and then they are underwhelmed with the contractor who has to work on the property or they don't get the same story from the property management company or things change along the way and it's It's the blame game. And it's because not all of those teammates were under one roof. So working with a company who is vertically integrated like JWB is super important for your experience. The way you win in rental properties is you stay in the game. You buy and you hold for a full market cycle. And there's no way you're going to want to stay in the game. If you have. 14 different teammates with 14 different agendas and 14 different ways that they make money. And that's the typical way that people buy rental properties. Vertical integration solves that. And so it's, it's so critical. So as you are first looking at a deal, and maybe talking with that company, find out if they have all aspects under one roof. So I just did a quick search at their website and you will find some terminology that will tell you that they do not have it all under one roof. So I pulled these two snippets just straight from their website. This was in the about us section. I will tell you many of these turnkey companies don't talk about the fact that they don't have in house property management on their front and center on their website. Because they know that is a reason that other people would choose to work with other folks other than them, right? They know that people know that that's so important to have in house property management. So you gotta do a little bit of digging. So I dug a little bit, and here's what I found. You can see this snippet, the first one it says. You know, whichever market you choose, this is straight from their website, right? Whichever market you choose, we have a fully integrated team in place that can service they can service needs as they arise. What's more, each of our clients speaks with a personal investment counselor who helps determine the best options for each specific case. So Pablo, when you, when you read that, what do you think? What, what jumps out to you there? Listen, uh, to the untrained eye, it sounds a lot like we talk about, right? Like you have somebody that can help you out, you know, this is a white glove experience that's like fully designed, but wherever I, where I start to question this thing because of the trained eye is when they say, whichever market you choose, there is nobody that has a fully vertically integrated. property management, construction arm in every single market that I may want to choose. As an entrepreneur, you need to decide exactly where you are going to go a mile deep and not just you know, like a mile wide everywhere, if you're going to control the experience. So the idea that they're positioning themselves as somebody that can have, you know, a reliable contractor base that they have worked with many, many times understand how to. Fill, you know, fill the homes and like take care of everything and, you know, like have people on the like, like eyes and feet and hands on the street in every single market, you know, that kind of tells me that you're not really in any market or maybe you're in a couple of markets, but you're willing to take a chance on me if I, if I want to go test something else and I become the guinea pig as opposed to like entering something that's already designed to be completely controlled. You're, you're right. You're right. It's really cool to see you dig into that, which on, on the surface seems like it's The same as like what we're talking about, but like you mentioned, it is unrealistic for there to be a team like JWB in every market that you could potentially choose to invest in. And this is when you see this terminology, what's most likely happening here is this is a middleman. There are a lot of marketers out there that contract with turnkey companies in different, in different parts of the country. And then they serve as basically the marketing arm. So when you see things like, Hey, we are in 20 different markets out there and you know, whatever market you choose, you're going to be placed with a team. Most of the time, what they're saying is that they are a marketing arm for other turnkey properties. They actually don't own. Or manage or sell anything. They are good marketers. And many times they have investment counselors on their team, you know, but you know, those are not many times they're remote teammates and those investment counselors help to sell the assets. But at the end of the day, that company doesn't own, manage, build, sell anything. They receive a commission based on referring you to other turnkey partners. And that's most likely what this company is. Yeah, it's, you know, they're, they're lead farms, right? Like this, this happens in every business. Somebody has like really good SEO. Somebody has a really, really good marketing operation. They'll sell you leads. And the question is, if you want to be a passive real estate investor, do you want to be doing business with a marketing company? Or do you want to be doing business with a, with a company that's designed to deliver the thing that you are buying? Right. And I think you hit on this idea of many mouths to feed, right? Like if you are. If you are the marketing agency, you get fed first because you take a rip off the top. Guess who pays that tax? The investor does. A. But B, you know, anybody that's ever, anybody that's ever done any kind of like construction work. In their own home or something else, or they've, they're probably familiar with the feeling of talking to an architect that's blaming the general contractor for it not to come out the way that they said, or general contractor blaming the architect for, you know, like it not being feasible. And this is how you have to do it or a, the, Painter blaming a drywaller for the fact that the wall doesn't look good. So there's no way that the paint can come out perfect or the drywaller blaming the painter for no, man He just painted that wrong, right? So it's it's that similar feeling this ideal of vertical integration as a client You know, you're gonna buy a property once but you're gonna own it for 20 30 years 10 to 20 years Is what jwb talks about right? So it's like do you want to be doing business with a person that just handles the transaction or do you want to be doing? business with the person that is managing your expectations and delivering on the promise over the next 10 to 20 years. And it's built to do that and also handling the transaction, right? That's, that's the beauty of vertical integration. Well said brother. GC, you also pointed this other thing here. It says since 2012 blank has successfully connected hundreds of investors with premier turnkey providers to help them build their passive income portfolios. This sounds like they have a really nice track record, right? Yeah, on the surface, right? They put it on their own website. But what do you know when you dig deeper into that comment? What does that tell you? Number one, that what they're doing is selling leads, right? Like we have successfully connected investors with turnkey providers. They're not even saying they're a turnkey provider at this point. They're telling you that all we're doing is we're the yellow pages or the Google or the Google resort, depending on, depending on what generation you're in. But the other 2012 would make me, you know, would make me want to really ask them, Hey, have you been? Is this what you've been doing since 2012 or like, have you, did you, did you like buy a condo in 2012 and like have an efficiency next to it? So now you've been saying you've been in real estate, but over the last four years, you've like refined your operation. Kind of like what you were just saying. Exactly. Yeah, exactly. And that's, that's a great point. People want to say, I've been in business for 10 years or 20 years or whatever. So they'll throw that date out there for 2012. Well, what's the threshold of connecting hundreds of investors with premier turnkey providers? I don't know what that means. Did you like send an email to 101 investors to another turnkey provider? Or have you actually put your money in the game for, you know, a decade now? Right? Like I just got out of our meeting. Our acquisitions team did a, did a presentation this morning and JWB has bought over 6, 500 properties in Jacksonville since we began in 2006. That's a much higher threshold. That's where you know people know this market. They know this investment when they put their own money in the game. And what you will find from others out there is they will use convenient, you know, timelines or dates to, to talk about credibility. But you really got to dig in because in real estate, there's a thousand different ways to be active and not every single one of them is going to lead to success specifically in passive income rental property investing. Got it. All right. That was a, that was sign number one. Let's look at sign number two. GC of spotting a lemon, not buying in a growth market. Tell me more about this. Yeah. So we started with the team first because that is the most important part of this decision for you. It goes team. Then market. And when you are investing, you need to be in a growth market. A growth market will provide you with the best risk adjusted rate of return, and it will also provide you with the biggest wealth pie, the biggest profits that you will find over the long haul over. a 10 year or a 20 year or more hold. And if you are only focusing on cash flows, that's typical for a non growth market. And you're missing the big picture because the biggest contributor to your overall wealth pie will be Those other profit centers not named cashflow. So you got to be focused on a growth market and many people either don't know what a growth market is, or they don't have access to the data to help them understand is their market, a growth market or not. But I have access to the data for all of the markets out there. So many times I'll know more about their market than they will know about their own. And that's what we found on this evaluation. So this turnkey property is actually in independence, Missouri, I didn't know where Independence was so I had to Google it it's about nine miles from Kansas City, so, near a major metro, so that's great. At first I thought, well, is Indi Independence, Missouri, and, you know, somewhere I, somewhere not close to, to a major city, but it is, it's close to Kansas City. So we used Kansas City as the, Metropolitan Statistical Area, that's the MSA. And now we can understand how does that Kansas City MSA compare to a growth market like Jacksonville and compare to the U. S. overall. And what you'll find is that Kansas City has lower home price appreciation than both Jacksonville and the U. S. It has lower rent price appreciation than both Jacksonville and the U. S. And look at that look at that income growth. Pabs, see that there at the bottom? Over the last five years, incomes in Kansas City have grown nine percent, while incomes in Jacksonville have grown almost 25 percent over that same time span. In fact, in the U. S. it was even more than Kansas City. U. S. incomes have grown about 13 percent. So, and then population growth is there as well. Jacksonville laps Kansas City. So, if you look at what a real growth market is, they have higher than normal home price appreciation, higher than normal rent price appreciation, higher than normal population growth, and higher than normal median incomes. And here in Kansas City, You are not seeing that this is not a growth market. Do you see it's, it's funny. Cause I was just kind of quality controlling the newsletter. We're about to send out from last week's episode. And we're talking about this idea that, you know, interest rates, lowering interest rates, isn't going to fix a market, right? It's just kind of like cherry on top. This idea that you want to invest in a market where people are moving to where. and income is growing and jobs are flowing to is the thing that floats all the boats, right? Like as somebody that owns rental properties, I want to know that there's going to be a growing supply. I want to know that there's jobs that are happening there. Income growth is happening there. And I'm not going to reach some kind of like ceiling where either by hook or by crook, right? Like either by like government regulation or just by like. Lack of demand in the market. I'm not going to be able to continue to make my property better in order to attract better people and continue to raise my rents to continue to increase my cashflow so I can, you know, keep up with inflation and live my lifestyle and do the things that I want to do. Right? So this idea of investing in a growth market is both risk mitigation and also upside that you're locking in. And I, I feel like it's maybe the most important part of the pie outside of like the team that's going to manage it. 100%. And it's not just about how do I get the biggest return on investment. I love how you talked about how it's risk mitigation, right? What do you, what do you think is driving those rent numbers, those low vacancy numbers, right? Those, those rent increase numbers, it's population growth, it's median income growth. And if you're not seeing that, you're setting yourself up for either a big long term problem or. Or what's more likely is you're just not going to be maximizing your dollars that you could be investing in this wonderful asset class. Yeah. And you see, before we dive into kind of like the big difference between a little bit of home price appreciation, what looks like a small number, Sandra Morales has a really good question here. Um, she's asking how does JWB vertically integrated and property management outpace property management? That's solely a business to manage properties. It stopped me from investing in some bad reviews. I found in terms of profits, how does JWB assigned resources, dollar people to each unit when combining business units? Oh man. I wish I could read that as you're reading that there was a lot there. I want to make sure I fully understand the question there. So can, can you paraphrase for me or at least show me where I can read it? I think what Sandra is asking is like. I think it's a couple of, it's two different things. One is how does vertically integrated approach, how is that better than just a property manager? I think we can start there. Yeah. Great question. You know, there is such. about goals being aligned. And unfortunately the normal property management business model is not aligned with your goals as a real estate investor. It's the reason why there are millions of property management companies out there. But generally speaking, if you talk to people who own rental properties, People are like, Oh yeah, you know, they almost do it begrudgingly. They hold onto it even though their experience is not great. It's because the property management experience is not great. And that's because goals are not aligned. So a standalone property management company actually makes between 25 to 50 percent of their revenue. by placing new tenants in your home. I know this because we are a property management company. And more importantly, we buy property management companies. And so I see what their books look like. Our books as a property management company look very different than what their books look like. About 25 to 50 percent of their revenue comes from placing new tenants in your home. And the reason that that's a problem is because that is the greatest pain point for you as a rental property investor when somebody is placing a new tenant in your home. And there's a lot that we can digest about the property management model overall. But if you have a quarter to a half of your revenue coming from an activity that's causing pain, For your client, for your investor, that is going to be the backdrop of a failed experience. And that's just the, the, the most, I guess, visible or the, the most I would say the most important, problem with standalone property management company as a business model. Now, vertical integration is different. JWB makes the majority of our money by selling you houses. And it is not by property management fees. And you'll see some of this as reasons why we choose to set up our property management a certain way. We sign long term leases because it's better for you. Long term leases lead to lower maintenance and vacancy costs. Long term leases lead to higher returns on investment. And because we're vertically integrated and we make the majority of our money by selling you houses. We are incentivized not just to sell you the house, but to have you perform really well, so you come back and you complete that buying plan that you have with JWB, so you buy. one, three, five houses each and every year and help you get there. And you're not going to do that if you have a lot of turnover, a lot of maintenance, a lot of vacancy, a lot of property management fees. So great question. I hope you continue to come back. We do many shows on this, but that is probably the most important thing. You got to have goals aligned and the typical property management company goals are just not aligned with you as an investor. Yes, I'm done. I think, what Greg is saying is something. All right. You're saying, saying clear the, the last thing that I would add to it is just that the thing that I talked about, this idea of like architect contractor, right? Like, Hey, the person that designed the thing isn't the person building it for you is always going to create a, it's like that spider man meme where they're like pointing out all the different spider mans. You know, like whose fault is it? Kind of thing. If you have one person that's delivering the whole thing, I came from the construction industry selling a design build project where the person that designed is the person that build it was always better for the customer, right? Like this is a similar, this is a similar scenario. When it comes to, when it comes to real estate property investing, the person that bought you, the property is the person that's going to manage you the property. And what that means is that they're going to build it to a certain standard so that all of a sudden, two years later, when they're not around, you're not just like saddled with something unforeseen, right? Like it is in their best interest to handle that. And jag actually put that in the Q and a, I think. What can get you is despite due diligence of rehab property, needing work one in years one and two, right? Like if the person that's going to manage it as a person that's also selling you the property, they're doing the things that JWB does like investing in easy to maintain. Easy to replace hard to beat up surfaces that will like outlast a long time as opposed to just going for lowest initial cost in order to like flip this thing to you and make their money. I would say that those are the kind of the two big things, plus the ongoing thing of what Greg is talking about of incentives and tenant placement piece. All right, you see that you want to move on. You want to explain this idea of why a little bit of home price appreciation really matters. Yeah, you know, some people just kind of gloss over those differences. The 4. 1 percent is what Kansas City's long term home price appreciation trend is. And 4. 9 percent is what Jacksonville's is since 1982. That's where those numbers come from. So if you invested the same dollars. And the Independence, Missouri or Kansas City market in 2024 versus Jacksonville. Here's how it would line up 20 years later, just that 4. 1 versus 4. 9. It equates to over 92, 000 more of additional gain just by choosing a growth market on one property. Now, imagine. You buy three properties or five properties or ten properties or more like many of you who are here in the chat, many of you have chosen the right market in Jacksonville. And so you can multiply that 92, 000 times three, five, ten, fifteen properties. That's why it really is a million dollar plus decision on what market you're investing in. Yeah. And you see, send out another one in the chat that asks, how about seeing available inventory or construction versus demand? You want to kind of like address the difference between like. The snapshot of like inventory and construction versus demand and what a growth market means. I'm not sure I'm understanding the question. Are we talking about seeing available inventory or maybe I'm not getting it. Help me. Yeah. The way that I read the question is how much inventory is on the market and how much. construction is out there already scheduled versus the demand for homes. Oh, okay. So now we're talking about supply and demand and maybe, maybe overbuilding in certain markets versus other markets. Okay, great. Yeah. Yes. The best way to measure this is by months of inventory. And we actually, we do that every single quarter on our, our quarterly call. We just had that. She's I don't know, probably three weeks ago, Sandra. So you can check it out on YouTube if you'd like to go back and see it actually broke down our months of inventory in Jacksonville, which measures the amount of sales and the amount of inventory in a marketplace. It helps as a leading indicator for where pricing is going. And I also broke down. The number of building permits that were pulled in Jacksonville for both single family and multifamily and the punchline there is that we are way under supplied when it comes to single family housing. We've been that way for over a decade and we are building more now in 2024 in Jacksonville and in other parts of the country, but we're not anywhere close to having enough supply of housing. This is going to create a high floor for pricing, which is what you've seen over the last few years. And really set the stage for markets where there is high population growth, like Jacksonville, to see above average home price appreciation over the long haul. Cool. Sounds good. Oh my question is, do you advise to these Indicamos to identify lemons? Sandra, I feel like I might be assuming something, but like I know that I type in both in Spanish and English in my keyboards and sometimes it autocorrects a Spanish word. So when I see that it says indicamos to identify, I'm wondering what I'm, I'm wondering if maybe you're like your, your, your keyboard autocorrected key, okay. Key indicators to identify lemons. Thank you, Sandra. Much appreciated. so she's asking, my question is, do you advise these key indicators to identify lemons? Do you see, correct me if I'm wrong, but I think. Kind of like the snapshot of what's happening in the market, you know, in like one quarter or like one year of construction pipeline versus inventory versus demand is almost like current, you know, snapshot of a market that can go up and down while. These like growth market indicators are full market cycle indicators that tell you, is this place growing over time is, do we, do we have like the recipe here for more people moving to an area balanced economy, you know, being kind of like, risk mitigated around like a black Swan event happening. Is that what we're talking about? Yeah, it's, it's very important to know the fundamentals of the market. So, when we're talking about population growth, when we're talking about median income, when we're talking about rent price growth, home price appreciation, right? If you're investing with somebody, you're putting hundreds of thousands of dollars under their stewardship in a certain market, they better know that about their market. But not everybody does. Beyond that, there's additional things that, that somebody, you know, who has a responsibility that I have, managing over a billion dollars of real estate, I need to know the additional things too. How many building permits are pulled. Why has multifamily rents done something different than what single family rents have, have done? Why is that happening in your specific place that you're investing? So I would say that that's kind of like the, the next level of, of insight that you need to know about about your market. But unfortunately, many folks don't know the standard of, of their marketplace because it's hard to get that information. It costs money. And again, it kind of goes back to what we started the conversation with. There's many new entrants in the game. Many have very small you know, expenses, very small payrolls because they're just a new outfit. They don't have the ability to go and spend twenty, thirty thousand dollars a year to get this type of data. And we have the benefit of being able to do that now for eighteen years. Gives us the opportunity to have that data and help our clients be, you know, better informed. Got it. Last question on this one. Earlybird Dean Curry says, How much maintenance costs should one expect in buying a rehab dome like one to five years out? You know, I can give you the numbers for JWB, outside of JWB, Dean, it's, it's just the wild, wild west. You know, so for JWB, we have been able to show that on average, our maintenance costs come in at About 7. 5 percent of rents for renovated homes and 4 percent of rents collected for new construction homes. And you know, but I hesitate to, you shouldn't use those numbers for others. You should go way higher than that for others. The problem is on evaluations from others, they will just use industry standards. So you'll often see 5 percent for maintenance costs across the board. They just make it up. They don't actually track it. And for a company that's just recommending you to go and work with another turnkey partner, how would they even track it? They don't have access to the information. The only company that can actually track this is a vertically integrated company. So, if it were me, I would probably put 15 percent maintenance costs for and probably 10 percent vacancy costs. And that might be being conservative. That might be, that might be low. Maybe you go higher than that if you're using some other evaluation. Okay. All right. You seem good answer. Let's move on to the next one, man. What is, what is What is in this one that you're highlighting here? An estimated monthly gross income after fixed costs of 432 and an estimated ROI of 14. 83%. What are you spotting here? Well, I just want you to see what, what you would see. If you saw this evaluation, we're going to dive more into the numbers of how this. is presented in just a second, but this is what they are telling their investors to expect. They're expecting 432 a month in cashflow, and they're expecting about a 15 percent return on investment. Tell ya, there's gonna, there's gonna be a lot to dive into there. And that's where we're going to go right here. so the way that they got this 432, that's this estimate of cashflow here. So we won't go into all the numbers on the left hand side unless you guys want to, but just that's the visual that you'll see. And when I plugged into the formulas, how did you get that 432? I noticed a few things. There are no maintenance costs and vacancy costs. So the number one on that checklist, it's very rare that I ever see maintenance costs and vacancy costs and cash flow numbers for these turnkey providers. Well, guess what? Not included there. Pablo, you own rental properties now. You have five doors now. What do you think about an evaluation that has zero dollars for maintenance and vacancy costs? I'm gonna, I'm gonna look at it a little crooked, man. I feel like I've had some maintenance and vacancy costs throughout the whole journey. That's real. That's real. That's why a reputable provider needs to include estimated maintenance and vacancy costs to set you up for success or else you're gonna be blindsided. And, you know, ultimately there's no way to hit 400 a month in cash flow when you have, when you include maintenance, vacancy costs, and some other things that they conveniently forgot about. tenant placement fees, renewals fees, right? Tenant placement fees many times are thousands of dollars, right? Many times it's equal to one month's rent. And so their rent on this one, I think was 1, 675, that's 1, 700 of an expense. Hopefully that's hitting year one because you want it to be rented in year one. So how can you not include that, right? And then renewal fees, we want renewals to happen. Renewal is when your resident chooses to rent, chooses to renew the lease. We want that. Well, almost always there's a fee for that. So they conveniently forgot to put both of those. And again, that's how you contribute to this inflated 430 something a month in cash flow. And lastly, I noticed that their management fees are 8%. I point this out because the team is the most important part of this decision. You want a premium provider and standard. For property management fees is 10 percent of gross rents collected. You start to see 8 percent and we've even seen 6 percent in some of these evaluations. That's a way for them to lower the cost and inflate the cash flows. Maybe that is 8 percent that they're providing. Maybe that's just what they think they can get in the marketplace. I don't know. You're likely going to get a discount property management team, which is going to hurt you in the long run. Yeah. So as, as I see this GC, this takes me back to that first slide that you can get, you can get the whole presentation obviously by texting 904 293 0341. But that first slide that had the list of questions of what to ask for, you know, this is really when they start fudging with these numbers. It's really easy to just kind of like miss a fee here. Underestimate, a cost there and start to really inflate these like cashflow numbers that if they're not all there, you're setting yourself up for a bad experience, right? Unfortunately, you're right. Unfortunately, I'm right. What else we got here? So this is the breakdown of how they come up with their rate of return. Again, all the numbers are here on the left. So for all those who are requesting the slides, you'll be able to see it and break it down if you'd like. But I just pointed out some of the things that are missing or that are inflated. There are no closing costs. There are closing costs on every transaction. So if you're not including the closing costs, what you're doing is you're artificially inflating the return on investment. That's how they're getting close to 15%. There are no maintenance and vacancy costs. And of course that also is a contributor to return on investment. So that, that jumps that number up again. They're overestimating home price appreciation. They estimated it at 6 percent a year for the Kansas city market. Again, another sign of a team not knowing their own backyard. So when you're choosing to invest your own dollars in their stewardship and their backyard and they don't know their own numbers and it happens to be overinflated, how does that make you feel about their ability to manage your money well, wouldn't make me feel good. And they're, they've inflated it by about 50%. It makes me feel like either you don't know your numbers or you're trying to fool me, but either way, I can't trust you. Yeah, exactly. comes from a place of thinking that their assets aren't going to sell at 10 percent returns. And they say to themselves, okay, how do I? Get this number higher than what I, you know, what my competition is. And, you know, it's unfortunate because the investor ends up losing. I also feel like you are more likely to do that, like we discussed, when you're not vertically integrated. If all I need to do is sell you a piece of paper and get you to buy, and then I don't have to deal with the repercussions, I'm much more likely to You know, not really think through what that means year two and three when I, when my team has to explain to you why we're not hitting these numbers, right? Exactly. All the money they get paid day one. Got it. So I took all of that stuff and I wanted to compare apples to apples on deal eval. So I took the other guys estimated rate of return of their own property for their cash flow and for their rate of return. And then I reran their properties according to what JWBs. Evaluations would show and very, very different, right? The other guys estimated 432 for their monthly cash flow. When I reran those same numbers within JWB's property evaluations. That number drops to 113 a month. Very typical for what a JWB property would be. And then if I took their estimated rate of return over a 10 year IRR, which is Internal Rate of Return, it's the accepted way to analyze an investment like this, it drops their roughly 14. 8 percent rate of return down to 11. 2 percent again. Huge swings when it comes to cash flow. And huge swings when it comes to rate of return, simply by including all of the good stuff and all of the bad stuff that comes along with a rental property investment. Yeah, this is the big aha that we had the last time that we did one of these shows. It's like, once we, once we normalize for these assumptions, for these kinds of things that non vertically integrated providers do, plus we also normalize for the fact that, let's face it, Because you have been doing this for 18 years, vertically integrated in one market and you've been delivering on these, your numbers are actually real versus, you know, what other people can just like put in, in assumptions and the purchasing power that you're able to create by being in one market, vertically integrated and all these different things, these numbers really start to really start to like Lose their shine, right? Like they start to, they start to be like, Oh, it's not that I'm actually choosing between a market at 14 percent and 432 in monthly cashflow without growth versus JWB. That is, you know, like 11 percent and a hundred bucks in monthly cashflow with growth. It's actually, no, no, no. It's that those numbers that you have in your head aren't necessarily what you're choosing. Plus, you're for sure giving up growth versus these numbers that you can really, really count on that look a lot more similar to it when you really run them and actually look at it and you for sure have growth because that we know you are in a growth market, right? Yeah. And just, just it either erodes trust or it breeds trust. There's one way of doing it that erodes trust. And if you over inflate your numbers and you don't include things that every investor who's ever owned a rental property would include like maintenance costs and vacancy costs, you're eroding trust. It's a short term gain is what you're trying to make as a return key provider by selling that asset. But the way that. I think should, it should be done is to build trust by putting all the good, all of the bad, making sure that these investments stand on their own two feet and making sure that you're going to be happy one year, three years, five years, 10 years down the road, you're going to keep showing up as a part of the Not Your Average Investor community. Like many of you have owned JWB properties for three years, five years, 10 years. I guarantee you that's not happening for a lot of these other turnkey providers. And it's because the day one experience and the day one numbers that was presented just can't be realized. It's just not mathematically very possible. And then experience wise, it's just not very likely because many of these teams are not built to be there for the long haul for their investors. We got one more question here, but I want to get to this before we start losing people at the hour market. We still have like 76 folks here, but these are actual investment numbers in a JWB property that are vetted. There are vertically integrated. This is what inventory looks like these days in Jacksonville in a growth market purchase 000 that puts you in a like a cashflow positive initial investment of around 76 grand. The estimated IRR just South of 11%. an already rented home with a two year lease and there's something else going on, right? Do you see there's kind of like a, like a big breaking news announcement that we save for right now. You want to, you want to tell folks what, what we're breaking right now? I do. We are super excited to do a super, super de duper, super charge. Can I say super anymore? We're going to do a, an incentive here. And it is going to allow a lot of investors to take advantage of this incentive package. And we are going to start off 2025 with a lot of happy investors and a very full sales floor here at JWB. So super excited to talk about it. What we're doing is a lot of those same incentives that we've been offering in different packages, maybe for the last few months, we're combining a lot of them and adding something on top. So for the next 25 contracts that are signed. It's not a time limit. It's contracts that are signed for the next 25 contracts. What we're doing is we are paying 2 percent of the sales price towards your closing costs. That comes out to about 4, 000 to 6, 000 per property. We're also including the maintenance costs incentive, which we've been running. So that's another 2 percent of the purchase price that we're contributing. So that's an additional four to 6, 000 in maintenance costs that JWB is covering for you. And in addition to that, JWB is waiving your first tenant placement fee. So you stack all of that together. That's 10, 12, 000 of incentives. And that's what we're doing here because we want to kick off next year, just absolutely in style, making a lot of our investors super happy. And, you know, of course, Our team loves it when we kick off the year just well ahead of pace for our goals. So, that's available for the next, for the first 25 contracts. So if this is something that you're interested in. This would be a great time to text us with the text number 904 293 0341. Did I get it right, Pops? I think so. I believe so. All right. You're, you're the numbers guy. So of course. I'm dangerous, bro. I'm just scrolling up on the chat to make sure we have it right. Anyways, but I'm not, ah, God, 904 293 0341. I'll put it back in the chat again. Love it. So this is a great time. Reach out to us. talk to our team, ask any questions. If you have other evaluations that you're thinking about investing with, if you want to have that conversation with my team and say, Hey, can you help me compare apples to apples? We would love to have that conversation with you. So reach out to us, get that, conversation started. Again, it is for the first 25 contracts. Do you see if somebody is already in the process like John Williams as, is that an incentive available? Is it like the next 25 that close? Or is it the next 25 like new, it is the next 25 that go under contract. Okay. Next 25 that go under contract. There you go. John Williams. That's, that's good news for you, buddy. Okay. And, Oh, here's that number again. If you want these slides, 904 293 0341, or if you want to get started. And be one of those 25 that go under contract 904 293 0341. Got a couple of questions. Still got 78 folks with us here, an hour and seven minutes in GC. This is unbelievable, man. We should do this, this type of show more often. Um, but Cecile Jame is asking, do you have a lot of clients investing from their retirement using a percentage of allocation between their retirement account and personal accounts if they do not have enough money available in their retirement account? think that's a two part question. So yes, we have a lot of clients that are investing from the monies that are in their retirement account. There is a lot that we can help with as far as setting up rather setting up the cash purchases, or there's even non recourse financing that you can get financing in your retirement account. So if you have questions about that. Definitely reach out to our team. And I think the second question was, can you invest with your qualified money and your non qualified money, meaning money in your retirement account, as long as well as money outside of your retirement account? And the answer is yes. Just need to talk with our team, make sure that we're setting it up correctly with you, and your self directed custodian. But yeah, absolutely. You can do that and I would encourage you to get on the phone. Got it. You see, and Dean Curry has another question here. Last question of the day. What due diligence talking about vertical integration, right? And like how vertically integrated companies are able to just kind of like control for the long term outcome here and do it in your best in your best interest. But what due diligence does JWB do to ensure rehabbed homes don't have big hidden maintenance items. The seller decided to kick down the can to unload the property. Yeah, you know, Dean I think when it comes to renovated homes, especially, you've got to make sure that you've got your major mechanicals taken care of, you got your four major mechanicals, your roofing, your heating, your plumbing, your heating and AC, your plumbing, and your electrical. Those are your main things. Yeah. Your main expenses. If those aren't up to standard, then you could be looking at some big hidden charges coming down the pike. So, you got to make sure those are taken care of. And I think beyond that, you've got to make sure that your homes are built to be lived in for a very long time. And that it's not going to cost you an arm and a leg like Pablo was talking about earlier where we, we build and construct and renovate our homes, expecting families to live in those homes for four and five years. So hard surfaces in the living areas. You know, we have granite countertops in our new construction homes. Right. These are things. Yes, it's a sizzle feature, but it also really reduces maintenance costs longterm. And there's, you know, dozens of examples of those things that we spend extra money on in the JWB side to make sure that we're putting in materials that can withstand a family living in there for four or five years on average and not cost you an arm and a leg when it goes to turn the property. So you got to get your major mechanicals down. And then beyond that, you got to make sure that this, this asset can. handle the wear and tear and not have a large expenses every single time you have a turnover. Yeah. So that's the JWB standard of either turning over a remodeled home or new home. I think I like how I just said it this last time, easy to maintain hard to beat up. Easy to replace materials, you know, like surfaces in the home and your mechanicals, electrical roof, all these like major, major components, making sure that they're, they're there, you know, without any deferred maintenance on those. Right. Well said. Love it, buddy, man. What a show today started off with a big bang announcement. of the summit coming up still have, I mean, people are, people are realizing we're finishing, but we've had like 77 folks on for an hour and 10 minutes. Like I, to me, it is always so humbling and like, it's, I'm always so grateful to know that like 78 folks take a, an hour out of the middle of your like workday on a Tuesday to come here, ask great questions, contribute in the chat. You know, get educated. It's just like, we couldn't do it without you. So I just, I just never take that for granted. You see, I feel like this is a really good content pillar of analyzing these deals. And again, we're only able to do these because you are sending these, those deals, right? Like GC is not out there shopping for turnkey rental properties, but we know you all are. So we really want to compare these to actual deals that you're looking at with folks. So keep them coming. You can either send it via that text 904. 4 1. You can email us at info at JWB companies. com. And just keep it coming or keep, or submitting here, here, when you're here, we're taking note of, of the different things that you, that you submit. Cause we know that if we do something that you're asking for, you show up and that makes us happy, right? Like that is what we're here to do, right? GC. Absolutely, buddy. Absolutely. Just, you know, so appreciative of everybody's time and for you guys making this show great. Pablo and I will dive into any topic within the real estate world that you guys want to. And so this came from your suggestions and I hope you guys have enjoyed and learned something here and are better equipped to make great, great decisions. So, yeah, super excited and man, I'm so excited for Summit. I'm excited for those next 25 contracts that are coming in. Again, if you're not a client yet, you can't be a part of Summit. So it might be a great time for you to take advantage of that incentive, become a client, and then, of course, be here for Summit which is February 28th and March 1st. Love it, bud. Last minute question from Adriana de Leon asking, For homes that are remodeled, do you make sure the sewer water lines are in good shape? Yes, absolutely. That's a super important thing to do and, you know, many times corners are cut there when it comes to the plumbing, and making sure that you're set up for success. So, yep, our team, we have a general contractor on our team, and then we have a lot of subcontractors that report to their general contractor, reports to our general contractor, make sure that you're set up for success there. I just want to say that today has really helped me prove that my name is Pablo Gonzales y hablo espanol perfectamente bien, like it's been a very bilingual day of names. And that really fills my bucket because I feel like people look at me, they see Pablo Gonzales, they see I speak English like this and they don't believe me that I'm from Venezuela. So, uh, I, I, I appreciate all these Hispanic people. Many times I wonder if you can even speak the English language. So, I mean, I guess that's a good thing. You know, I'm really not insecure about my ability to speak the English language, Greg. I don't know if you've noticed, but I talk a lot on the show, so you can't make fun of me for that. All right, G. C. Great job by you today, my friend. I really appreciate you breaking these things down. I think we're going to continue to do these at least every, every month or so, or at least once a quarter, we're going to do one of these lemon shows, as long as you keep submitting them. Also submit. Topic discussions like Marie Rockoff sent, Hey, let's do a show on lending options. We definitely are going to put that in the pipeline. If you suggest something, we will literally do it. Like we are here, we are here to, to make you happy. So, um, but, and it also makes our job easier, right? So like, it's really, really awesome. So, really pumped for this, pumped to see everybody. Remember, if you're going to save, if you're looking at travel plans, get here February 27th at the latest. If you're planning on coming to the summit and hope to see you there 28th and the 1st of March. And it's going to be awesome. Do you see anything between now and the next show that you have advice for folks? Don't be average. See everybody. Don't be average folks. See you next week.