0:00 Hey to the half of this podcast. I'm your host, Daniel Martinez. Today we have a special guest developer, longtime real estate investor, Anthony amount of TV. 0:09 Daniel, how are you? 0:11 I'm good, man. I'm good today. 0:12 I am honored to be on the hive mind, man, your show is awesome. And I watch it. And I'm just amazed that you've invited me on. Thank you very much for the invitation. Well, I 0:22 think we connected because you had your podcast, which is the future factory podcast. So I think we can make a plug to that first. But I appreciate you having me on. So it's an exchange. So change the value exchange information exchange of time. So I appreciate you coming, coming back and give me your time. So I always ask this, what part of the country are you from? And how long have you been in real estate? I know you've been in real estate for a very, very long time and you have a lot of experience. So What country are you from? 0:48 So I'm actually originally born and raised in South Florida, right? I would grew up in Boca Raton, Florida and beach. I was born in Fort Lauderdale grew up in Boca and I moved up to Chicago about 30 years ago, I worked for a company a development company called Discovery Zone that ultimately became a Blockbuster Video. And from there I worked for multiple brands. I you know, I was internal as a development partner for companies like Boston Market, Einstein, bagels, on Pan, Panera Bread. Those were all the brands had worked inside for as a development person. 1:22 Oh, wow. So 25 years. You still live in Chicago? 1:26 I do. I still still live in Chicago. I live in Oak Park, Illinois. 1:30 Okay, okay. I grew up in Hammond. So I was a little over the border. And that's where I spent 21 years of my life. 1:37 That's great Hammonds great town, right. It's a little sleep a little quieter, but it's rented. You've got Chicago within an hour, you're you get Indiana, which is kind of cool. So it's a you know, it's a sweet place to grow up. 1:51 Yeah, my dad, we have moved out of Chicago because Chicago is a little rough in some areas. And then the commute, everybody that lived in Indiana usually commuted to work somewhere in Illinois. So when I became of age, I worked in Joliet and I worked in Cicero. So I still have to commute through work. And my dad was a construction worker see at a key all over Illinois. So it's always interesting to everybody from Indiana going to Chicago to go work. And it's an interesting dynamic, it is up there, because 2:19 it was what's fun about it was you the taxes are a lot less you could buy get a lot more home. You know, it kind of makes sense, if you're not bad with it with the commute, and forgot that your dad who are moving job sites everywhere anyways, you know, you get a lot more house value for it. And we're gonna talk about real estate today, we're really gonna look at kind of the overall cost for developing real estate, right, looking at value and what you're trying to get out of it. Can your long term position and we're gonna we're gonna talk about that in a podcast. So I think it's kind of interesting when people say, you know, where do we come from, please like me, and you got a lot more property for a lot less Buck 2:54 100%. So let's talk about development. Because I think you working with, like, all these major chains and development side of it, it's, it takes a lot of capital to sled expertise, and you're doing it in like, opposite the States, from what, from what I heard, I know you were going to operate a lot of states at all, as a whole. So how does it like operating and managing a team? And what does it take to get into that development field working with, with these us ours? 3:17 You know, all businesses, you know, we own nine separate companies in some real estate trusts and different investment groups that we work with, you know, Daniel, when we, when I talk, it's running a company and all companies no matter what they are, that it's the same, it's the same exact thing, if you're an entrepreneur, I really wanted to get this all accompany is, it's an idea, right? Doesn't matter what it is, whatever your idea is just an idea, right? And then the whole idea about a company is that you expand on that idea. And then you organize. Right? So all a company really is every single day is an idea that we expand and organize. Now, what I mean by that is most people don't don't get this right. Most people make it out to Well, I want to be a millionaire, great. You want to be a billionaire? How are you going to do that? I want to do in real estate. Great. How are you going to do that? I want to buy real estate and make some money and make it great. How are you going to do that? Right? So let's look at what does it mean to go out and buy real estate? Right? So for us, we work in all 50 states. So for us, we have a very, you know, I just walked out of Fort Washington here. I just walked into a process meeting, right. So if you look at the groups that we work with, you know, we have people all around the country. Now, there's no possible way that me or all the vice president vice president work for a company could be at every project everywhere there are there's just no way they could do that. Daniel, they would they would go insane. In fact, we've tried, and it's very, it's not very effective. Right? You know, you're you try to go everywhere and be everything everybody you can't. So the idea is that we really got to spend a lot of time in developing processes, and have it to a point where everybody the idea of what we're doing here at corporate headquarters is translated over to each and every team, right and each and every team it's recreates it Just like we do here, right, so that the way that we think about property, the process that we follow to make sure the property is a deal worth us doing, that that process is the same no matter where we go, it's not reinterpreted a different way. And that we don't change the patterns by which we execute for success. Right. So if you look at it, we were always looking at how do we organize and train to the nth degree. So that our idea, our process, and what we're trying to achieve here? Is the same over there not reinterpreted in a different way. 5:35 Gotcha. How do you hire good people? 5:40 Well, there's there there's no magic wand, I would just tell you that we we've hired a couple of, of witches, and they just use magic wands. No kidding. It's a, that's a trick, right? Because with that, you know, it goes back to setting up the process. And I think if you look at everything that we do as a company, as we look at our organization, right, try to figure out what is the role that people are going to do? Now, ultimately, you got to know, we've messed up more people, we've hired more great people and mess them up. Because we were not crystal clear about what they're gonna do. In fact, I would tell you that when I first saw the company, I didn't even know what look we were organizing, right? When I started CTO group, there was no such thing as outsource construction management, there was no such thing. You know, 25 years, 26 years ago, there was no outsource construction management company, there was not you, I would call it you know, I had worked for all these brands. And I realized that I kept working myself out of a job, right? Every time I'd go build a new chain, or go build a new thing and everyone so I get that knock on my door, and my boss would come and go Anthony sit down, and they'll kind of get that same look on their face. Look, nothing you've done wrong, but we're gonna have to let you go. What? I just worked my ass off for you for last years, whatever that was. And now you're gonna let me go? Well, yeah, we're not going to build any more brands kind of backs. We're not gonna grow as we've kind of got to. Great, I got that. And when I realized, okay, I love doing development. I love doing the deal. I love looking for sites. I love negotiating entitlements. I love negotiating the deal. I love going through the process of passion I have for taking dirt or taking a property and reinvesting it as you do. Right? When you and I talk. I can really hear your passion and development deals that you do. Right when I want to see your podcast, the people that are on your podcast really are up to developing amazing properties. Yeah, right. Now, the question becomes, how do I do the same thing for multiple companies. And that's where CTO started, CTOs group was really designed under to two words, to kind of a double play on words, it was Chief Development Officer, right kind of everything fell under the Chief Development Officers role for a company like Boston Market rights and bagels or discoveries on whatever that person's role was, right, the chief development officer, that team will be underneath them. That's what CBO is going to do on an outsourcing basis, you pay us a fee. And we'll do that work for you. And you could focus on your primary business, if it was renting videotapes, or selling chicken or selling bagels, you could focus on your business, and we would focus on your development needs. And the second play of that word was corporate development outsourcing. Right, it was essentially outsourcing your development needs to a third party company, again, going back to allow them to do the first one call people, you got to remember, there are people that are invested in doing it the old way. Right. And I mean, when I was at Discovery Zone, we had a $5 million a year budget for the development team that was just for the not for the money we spent to build the stores. That was just for the team itself. That's for the people and the lawyers and the team and all the staff and the offices. And also it took to run that development team, when you think about as a company that really was there to make playgrounds. Why are you buying cows to get milk, just buy the milk, right? You want the playground, right? And at the end of the day, those are capital expenditures that hit your bottom line, where I can take the development costs of a team that I outsource to, and I can capitalize that against the project, same cost, but now I'm just moving it from a general expense to over to a capitalized expense. And it just hits me taxation wise in a much better way. 9:22 That is amazing. I so you are operating as a third party for these large corporations. And you work with a lot of them to facilitate the building of their units and buildings to grow their operation, and then often actually have to hire and build that internally. 9:38 That's right. So so for us, oh, what do you do in brands? Right? When you're building brands, for me, it's always the same thing, right? As we look at real estate, and we look at a brand and says, Hey, I want to I would like to build 100 new locations this year. Right for us. There's a process by which we do that. And it doesn't matter if we're going to build 100 dog houses or we're gonna build 100 skyscrapers. The process that we follow is is always the same. Now, if you understand something about most real estate people, they show up like cowboys. Same thing with construction people, right real estate construction people, for hundreds, maybe even 1000s of years now have showed up at their projects, like cowboys. And if you're a well seasoned real estate expert, maybe you can sit there and pull guns from your hip and play cowboy. Right? You have a shot at that. But the truth is, if you get a when you don't deserve it, you may get it, but you don't really deserve it. Right? If we don't follow a process, right, a proven process that takes us through the looking at the prop, how do we go and look for property to begin with? Right? What's the property we look for? Right? So I'll give you some examples a little bit, right, the number one, I look at a real estate deal. Let's say that we're building today I'm building. I was at a meeting with Panther earlier today, right? We're building pandas all around the country, right? The I can go and squeeze an electrician, a plumber and HVAC person, I might be able to squeeze them for a couple percent here or there. Right to save some money on negotiating a bit. When I save them. 1000s of dollars, is when I go negotiate for a better delivery of the property. If it's a ground up building, where all my utilities coming from, right, where's my sewer? Water? Gas? Electric? Right? What am I probably my entitlement process. Am I going to go through hearing after hearing? Am I going to it? Where's the soil at what's going on with the property itself? Is this site already pad ready? Right? In other words, is all the development work done on there? Do I have to raise or lower it like that can be hundreds of 1000s of dollars in development cost? And how I get the bill how it gets the dirt, or how I get if it's an interior build out, like we're building when it's in a shopping mall, right? I get what's called a landlord work letter. Right? And you know, a lot of times when you're going to run to space as a, let's say you're a sandwich shopper, let's say Daniel, you and I decide that we want to build the world's best sub shop. Daniel, you've got the world's best bread, you're you you've got a recipe has been handed down from your grandmother and her grandmother. It's the kind of bread that when you're done, you lick your fingers because you touch the bread. Right? I imagine that that's the bread so good that bread is right. I have the best cold cuts. And I think I can do customer service really well. And together we're gonna put them together we're gonna make Daniel and Anthony's greatest, greatest sandwich shop ever created on the planet. Right? We're gonna, we've got an idea. Right. And as we go to look for locations to put Daniel and Anthony's best shop, there's a couple things that we're looking for number one, we want to find the best place to put it based on what's in the market area. Right? So we we do what's called a trade area analysis. Right? We don't want to go because like every broker I've ever met, when I tell them I want to build Daniel and Anthony's perfect greatest jammer shop ever created. What are they gonna tell you? They've got the perfect location in their, in their MLS, they've they've, they've got your perfect look, they know that they've got your perfect location, right? Because what do they want? What do they get out of it? 13:13 So this this is based off like a trade area analysis would provide like foot traffic car cow that provide those demographics, population density population within walking distance? Am I do all that stuff? 13:24 That's right, that's exactly. In fact, I'm going to tell you what's coming to us now, where AI is really going to bring the real estate world, it's going to blow us all away, right here. Imagine when I was a kid, you would sit on a corner and you'd have like one stop or one counter that would count cars driving by, and the other one would have people walking by. And you might have something for where's the hospitals where it's the churches, where's the schools, where's the offices, you might create a little algorithm on a spreadsheet, that you might have 15 or 18, or let's say 25 characteristics of a marketplace. And that would give you your best idea to build paint a picture of what that development site will perform. Right? Based on those 25 characteristics. We'll just imagine what's about to come to us is 10,000x that number, right? Imagine AI can now bring together all of the cell phone records and travel counts and soccer games and and parades and and start to know a demographic so good that we couldn't have we couldn't we would look at the algorithm and not even be able to understand it. Right? Imagine that the demographic model that's coming to us will give you when people are going what what kind of people were there. What are the people that go by there how to get how to communicate with those people? Right because up until now, if you wanted to market Daniel Anthony's a sandwich shop, we had to market to 100% of all the people, right? We had to go out on TV we had to go right and it causes a lot of money for maybe the sales only 3% of the marketplace. going down and enhancing the subs, maybe three, maybe, let's say it's 10% of the marketplace, each subs, the other 90% couldn't give a crap about subs, right? They're not gonna get shot with them. But our goal is to figure out where are the people, where's that 10% of people that want it, the problem, I gotta market to 100% of people to do that. But what's coming today with social media and social media impact is I can start to model people in a much smarter way. Now I can take my advertising dollars, and go to the people that will eat subs, right? You know, it might be moms are on the way to a soccer game. It might be it might be dads and on the way to work or, or on the way home, it might be moms that are that are coming home from the boardroom, and they want to get the board, you know, they're gonna work late tonight. And their board meeting might go a little late, they might decide, tonight, we're gonna get some subs for the board meeting or whatever, whatever they're doing right? Today, the amount of information we're gonna have on each and every human being, is getting a lot smarter than ever before an artificial intelligence will help us market to those people a lot better than ever before. At the same time, it'll look at the demographic modeling and what's happening in that marketplace with other people that are selling subs, right? How are they performing? It'll also help you look at what's your availability for human beings to come work for you. Right? Nothing worse than going to marketplaces where you can't remember where you where you grew up, it was hard to find great employees there because the marketplace was so small, right? And a lot of times, they had to go to bottom feeding to find employees that really didn't perform very well. Right? Imagine being able to look at markets and go, yeah, maybe don't want to go here. Maybe I'm not taking my broker's word for it, I want to take that 10,000x demographic model, and go look for where I can perform better. Maybe if I just move it over a couple of markets, I can shift my probability of being successful by 10x. And there's where in lies, the smart that's coming down the pipeline, our opportunity, right, that's where our opportunities are, with the algorithms and the AI models that are coming to us. Right now. It's never going to be better than it is now. At first people are gonna get scared to go oh my god, it's Terminator, the finger remember finger from the movie, you watch Terminator that like they're gonna take over? Right Skynet is gonna kill us all. And the truth is, that's not going to happen, well, probably not gonna have I can't promise that. But that's not going to happen, what's gonna happen is we'll have a much better way of looking at demographic models, and and that all spill into the construction world as well, which we'll get on a little bit later. 17:21 So are you actually working? Are people working on that for you? I'm bringing that to you right now. Because this, it seemed like it would benefit you the most because you have the demographics, working with billion dollar companies? It seems like it would benefit you the most because if you're working as their development development person, I think it would help you. 17:43 Absolutely. Look today, you know, there are we did a podcast that they would cite us a great company right there. They're the amount of information that they've been able to capture on each location, it's out there, it's never been better than it was before. Now, imagine this, that that's, you know, where AI is going. That's, that's where real estate starts, right? We start to learn that with Blockchain technology, we're gonna be able to capture all the information about a piece of property, right, and keep it with the property up until now, every time we wouldn't develop a piece of property, we'd go build a property, right, we go find it, we'd start the entitlement process. We do a set of civil drawings, we do architectural drawings, we do our engineering drawings. And then we build it and we take all that information that we gathered, and we put it in some shelf somewhere, and we forget that it ever existed. And the next time someone's come that property, we just start all over again. Right and and we never keep the information within Well, what's about to happen is we're supposed to implement blockchain technology into every property. So everything that ever goes to that property, every sale that's ever made, every every brick that's ever brought there, every yard of cement that gets poured there. The information we know about the dirt, the compaction, the type of dirt, the sill the the construction, progress, photos, all the data is collected during the project. And after the project will stay with the project and make that make that product property even more intelligent as we move forward. Right? Imagine that in the future, artificial intelligence will be able to do drawings. Right, reimagined, the architects will really change from being drawing related, right, which is the worst part of their job, their job making the drawings is ask any architect doing the drawings is the worst part of their job. It's time consuming, it's labor intensive. It's painful. They love being creative. Right? It's a mental, right? It's a mental game, because the coordination between all the different pages rarely works out. Did you understand the difference between AutoCAD and Revit? No, no. Okay, so AutoCAD, if you're working with AutoCAD, and today, electronic it's electronic or a designer you're back in the old days. They had plans we call them blueprints why they're called blueprints was literally as you drove drew on them, right? You were kind of scraping off the blue and it was blue and where you drew on it, we became white. And that became your set of drawings. Right. And today we draw with AutoCAD, right? And AutoCAD really electronic design. Now from AutoCAD, they own a company called Revit. Now in AutoCAD, when I draw a line, right, on that line that represents a wall, right, sorry, or whatever I get from drawing a base building, a line may represent a wall, and I would go to another page, like, you know, on my architectural drawings, to show the details where the wall goes, I this is gonna be seven feet long, it's gonna go, here's another one that's eight feet long, and it's going to cut it to this wall and, and you can see that on the drawings, and I might go to a separate page. And I'll see what the wall type is, well, wall type A, might be drywall on one side, metal studs in the middle brick on the outside, this wall over here might be drywall on one side, metal studs in the middle, it might be drive it on the outside, or EFIS or some other finish, might go to wall type C and maybe drywall, metal stud drywall, right, it might be an interior partition wall, right? So in AutoCAD the drawings, or have kids or parts that you have to go and decipher Well, in Revit, it's a little bit different. When I draw a wall, I create what's called a family. That wall type is represented by the parts that make the wall. Just imagine this, when I draw the wall, I have the bottom track the two screws that hold the startup, right, the two screws at the top and the top track, then I've got the drywall, the screws hold the drywall on the mud that holds it that glues up drywall has to get together, it loses my seams and my screws, right all of that gets created in the family as they build that wall type. Now estimate. That's right. And it's going to take off of all the materials that I need. Where the what's really going to be amazing is that I can also have the costing right AI will allow me to open the API that goes to Home Depot and Lowe's and I look at product availability to fit my scope. Right. And it'll be able to help me find the products I need to build my build out. And while it's designing it, it'll also be pricing it. And also make sure that product availability is there. Because data what's the worst part about construction? 22:25 The people I'm just kidding. It's the materials people and men cohesive. Working, binding it all together. Well, you 22:33 know what, you know why? We're all liars. 100% You know why we all lie to each other, right? We literally to get a project, right? So we're going to be Daniel in Anthony's sub shop. You and I go to an architect, we hire an architect, we beg him to give his plans for a cheaper price. And they go okay, I should charge you 25,000 But I'm gonna charge you 15,000 Because I like you too. But the problem is, is that they build plans that are only $15,000 Worth, right? The DNA that people are gonna build from they we've we've shorted the guy who's going to build you know, build that. Now, everybody else who gets involved, doesn't have enough information to do it properly. Now, you are not you and I, we go to bid. Daniel go, I got my Uncle Bob, I got my cousin Bruce. And I got these three contractors over here we fight. What's that? 23:19 I gotta hammer to make it even cheaper. 23:21 That's right. I gotta I'm gonna do it myself. Right. I'm gonna do it myself. And as even that right now I'm gonna do I'm gonna do it myself. Right, I got all the time in the world. I could do it myself. Now. I go to bed. And we get, you know, imagine we're in our sub shop, there's 20 Different subs, you got a flooring guy, you got a lighting guy, electrician, a plumber, you got a painter, you got a mayor mural or a mill worker, right? We've got all kinds of stuff. So we got 20 Different subs in here. Right? And for us, we want to win the bid. So we might have three subs for every line item. I just imagined, right? I want three plumbers, right? So I want to get me I want to win the project and see do I want to win the project. So I get three different plumbers, I can look at all their numbers and see which one's the right number. I look at three different letters. Let's say that it takes each of those subcontractors $1,000 to bid for us. Alright, stop their day, get the plants printed out, pull it out, do a takeoff sit down called supply house is the same cost of 1000 bucks, right? Let's take takes each general contractor like three or 4000 bucks and put the bids together, stop their time, take their day, put the bids together, submit to the customer, you know, submit a request for information RFIs you know all the stuff that comes along from the subcontractors, negotiate the bid, put them all together on a bid spreads and submitted to say custom three to 5000 bucks. No, imagine that's 60 Subs per general contractor 1000 bucks apiece. That's $60,000 times five contractors that we bid to. Right? That's $300,000 in work that the industry gets sucked out of it and no one's won a job yet. Now, you have a friend, your friend comes This says I could do it for $200,000. And Bruce comes in and says I could do it for $180,000. And Mike comes in Geico, just soldered 70,000, we have another 160,000. And you come in and say now forget, all of you guys have a bill for 100 grand. Right now. You're not in business, you just have a hammer. And now you decide to call your friend, Bob and friend Betty and, and they show up when they can and and we start work, but they never quite perform the way it's supposed to. And everybody that you hired has to suffer now, because number one, what you thought you're getting a deal you never do. The truth is that everybody on that on that on that program gets gets, you know, they've already remembered they've been in five other projects they've worked on. And they've been on and they've already lost 1000 bucks per project. Right? So we're already sucked into a bad deal. Now, you think you can get it done at the price. Those people show up with a deal to try to get the deal done. And it's a mess, right. It's a mess, right? The carpenters and get the walls up. We're supposed to electricians try to get started with the kid get started on the walls or finish and the plumbing can't get done. And now we can't pass it in one section was supposed to take eight weeks doesn't it takes us 25 weeks. Now I'm paying rent on a location that hasn't even opened yet. Daniel and Anthea already paying rent. Right now we've already got, you know, five or 10 months of rent or paying on a space that we haven't even occupied yet. Now everywhere along the way, the industry gets hurt for that. Right? And that's what makes the group now artificial intelligence about the change all that, right. Imagine that in the design, right? As it designs, the product projects, right specs out all the parts and pieces, it'll also be able to create schedules. And not only that, you're gonna go to marketplace where there'll be no more electrical companies. There'll be no more electricians, there'll be no more plumbers will be no more HVAC companies. There'll be individuals that know how to do the work. And just like Uber did the taxi companies, it go to the player and say, Hey, Mr. Player, your five star plumber, you get first picket this and a five star plumbers will want to maintain their five star and it's just like Uber wants me to their five star they have water and they have a charger and every time you get an Uber it's clean, right? Because they okay once a 4.9 or five, he was a five rating every time you leave that thing. And he wants that 20% Tip. Well, the same thing will happen with the plumbers, the electricians, the HVAC, AI will develop the scope, it'll buy the materials and have it delivered to a job site. It even train you when we use new products on how to do that the way that you'd learn best. Damn imagine this that you'd like to you'd like to watch videos while your your cereal in the morning. And you learn best doing that. Or maybe I don't I like to watch videos when I'm on the crapper, right? Or maybe I like to watch them in bed before I go to sleep at night. Or maybe I like to learn in the movies that I watch. And I will take the learning about whatever the new plumbing product is that we're going to use, maybe it's a clamp on or a new crimper a new a new valve and how it gets installed and integrated into the way that we learn best. Right? Imagine, imagine how that changes for humans. As we add this whole, this whole construction world changes dramatically. Right, we're about to enter into a whole new field. So that's what's really exciting about it right. And now our opportunity as developers is to really look at how can we be part of really creating that, you know, when I met with you and your partner and what you guys are doing over there, you're pretty good at some really interesting real estate deals, right to continue to look at not the old way our grandfathers did it. Right, I could keep building the way that my grandfather did it. I've got family members that were in Rome, we they built the Colosseum. You know, just like for most of my career, we've carried very heavy shit over to a space, we bet we banged on it. We call that construction. Well, today, we're called in to do it much, much smarter. Imagine a future where when, when a company like Daniel and Anthony's sub shop wants to grow. The second that we have an idea, they'll be able to tell us where the best place to open is how much it's going to cost us when we're gonna need cash to pay who and what our projections are for that, we might have a couple little things that we could change, we might decide that we could, we could move when we want to open, like let's say that we want to open for Christmas. And there's always a rush, because retail is always kind of rushing to capture the Christmas holiday. And they may say, Anthony, if you open by Christmas, it's going to cost you $400,000. But if you move this over to opening up in January, when the drop happens after after the holidays, you might be able to do that same exact project for $325,000. Now you and I may decide, hey, I want to capture the Christmas business is absolutely what we want to do. We will be there. We want to do that. Great. And we might decide to leave the slide there to open for Christmas. But we also may have another slide it says All right, we want to be green about it right, we might make a slide that we slide and says we want to be as green as possible. We're gonna make sure we have no carbon footprint. We want to use solar everything we're gonna find and that might adjust some of the numbers or pricing a little bit. Right we might be more at risk about it. And that's the things that AI is gonna give us the ability to look at how our decisions we're making will impact our schedule, our cost, in the moment to get happens, imagine that we make a decision to open to 10 shops, you'll tell us exactly what a cash outlay is going to be, how to hire, who that marketplace looks for people we want to hire, what's your availability for great people, people are trained. And we might be to look at, all right, if we look for, you know, five star employees, we should open it and figure that, you know, we can open and November, we'll be ready for the Christmas holiday. And here's what's going to cost us to hire those five star employees, you may go, hey, you know, it's a smaller sub shop, I could probably do four star employees. You know, that's your decision to make. And I can do a better job of training and my job will be a move than four or five star plover or five star employees. And those will be all the gifts that we'll have in creating the future that's getting pretty high. It's getting really dynamic right here. 30:55 It is. One of the craziest things to me is that I think the tech and this is where like there's there's age businesses where technology hasn't came in and Reese reformatted them. So I think when the when the communication of systems, people, and bids all that come together, because I think there's so there's a million variables in one transaction, because you have all the moving parts that you can actively keep track. Imagine raising capital for that when you just draw on the first and the 15th. And when we're good for 45 days, imagine that your accounting your accounting person is going to be your CFO is going to be like in the clouds. This is amazing. 31:39 Imagine having pay applications done before you start a project. Today we work on at CDO, we work on creating schedules, and we tell our teams to literally drive your schedule by having your subcontractor build the pay application, when you start it. In other words, we build clients, let's say on the 25th of every month fact, that was the conversation we had today. Right? Today's the 25th. We're taping this, it's 25th. And we go back and look at what subcontractors haven't billed us. Now, one of the flaws of that is that great subcontractors are working all day right throughout the field, they're working, they forget it. But if we miss their billing, and we don't get it in this month, they may not get paid until the next month, and that may really hurt somebody. And then ultimately, what does that do, it hurts us because what happens in subcontractors is they stop coming your job and they don't get paid. So my one is that we if if we need their sub, their, their invoice in by the 25th, that we're working on the 15th to make sure that that arrives. In fact, we're even, we're even forecasting where they're going to be. And for me, I try to pull them into the future, right? I'll tell them hey, listen, Mister, mister electrician, I want to inwall inspection by the 25th. Now the guy may be really that might be the 27th or 28th. But we know that if we if we can pull them into that, I'll pay him up to that initial inspection, and then kind of pull them into that. And hey, by the way, I'll have your payment out for that much, much farther. So I'm gonna let you build me a little bit further on the 15th. Knowing that you're not quite there yet. But by the 25th, when an inspector comes out to inspector for the bank, I need to make sure you've passed your in wall inspection, or your pay application will be denied, I would actually end up do is end up pulling a subcontractor into a future that gets created. Right, rather than pushing them out of get it done, or I'm gonna hate you. Right? That really works. When I pull them into Hey, by the way, you're gonna get paid up until here, I just need that inspector shot and see that you got your initial inspection. Right? It's it pulls them into a future that's exciting, rather than pushing them out of fear. Like if I get done, you're gonna, I'm never gonna use it again, or you know, all that fear based stuff that we've always done. When we were the Lower, lower me, what I'm what I'm building, you know, building great relationships with subcontractors. 33:55 I love for everybody listening to that. I hope you took notes. Because I think that's that's your experience talking because I think a lot of people play that play that game. And you're just burning relationships. And I think that business is built off relationships. And I think you're incentivizing people to complete the job in a timely manner, and paying them for it. So it's a win win situation. So you actually can hit your deadlines, because you have a job to do. That's right. 34:19 All the brands we work with, we tell them this every day. Like you want us to be successful. You can't mess around with payments. You know, this morning, I got a I got an offer from a client to $400,000 Bonus. Right this morning. He said we'll give you $100,000 bonus if you open our store by Thanksgiving, right? We have 121 days from today to open that store ground a building. Right? And we've literally put it this morning we're putting the silt fence and to start doing the outline of it. 121 days, owl. That's a really, really aggressive schedule for grounded building in today's environment, right? Yes, weather nights and weekends. That's going to take some work from the team and really develop that Now in order for it to be really successful, right, I sat down with a team today, we can't miss a day. Right. So most construction projects, we get awarded, people get awarded projects, and they spend the next three or four, it may take a month, before they even get all the contracts issued. And that can't happen when you have 121 days where you need to get all of your subs lined up. And we need to make sure that all of them can see the vision of what we're doing. Right to ask a subcontractor to come work a weekend, right? When you when you when you sit down on Thursday, or Friday, and you say hey, I need you to work this weekend. That's too late. Right subcontractors have families and jobs and picnics to go to and family get togethers. But if you say to him, when you're building a project, hey, this is gonna be a seven day a week project. I need the other team and staff on board to make that happen seven days a week. Right, they can start to plan and they can figure out, hey, Bob's got this weekend. But he's got next weekend, Bruce has got the following weekend, right. And we can spread the load out over our team. And we keep that project going as committed for CTO group, right, a much different way of looking at it. It's not the old days where when two guys set out to the Cowboys shooting from the hip, you got to you know, most of our decision logic has got to move to the front of the of the project. And that's what's really going to help us with artificial intelligence like like Revit, right? When you build in Revit. Right, since it's a 3d model, you can't do the next segment, unless the first one's right. In other words, you can't build a wall, that the intersection to another wall, because the model will bump into each other. Right. And what you're doing is you're taking that information that we used to figure out in the field, right, most of us sat in the field and solved all the problems in the field. What we're trying to do now is move that information back to the boardroom or back to the estimating room. Right. So we can see that information. And that takes getting a set of drawings and building, you know, spending more time on the architectural drawings, and understand the base building before we ever get started. Because if we don't, when when I started to develop their schedule, it won't be able to count on, it doesn't have the original base building drawings done digitally. And we're using a paper drawing, or we're using an old drawing that's archaic. Right, if those building that building wasn't built digitally in Revit, to begin with, right, or Revit type of model a 3d model, it won't be able to trust the base building drawings, which ultimately will put impact to their long term schedule, right AI in order for it to be delivered and create schedules that can count on, it's got to understand the building better. And it's got to understand the building better. And it's got it's got to be able to understand the supply chain better. 37:54 Wow. That is insane. That is insane. I I'm excited for the future. And I think it's going to develop into something that I think we're starting to see. But we don't even understand what could happen and talk about possibly change even that future because I think the technology even from the last 1015 years is accelerated so quickly. So we might have a different conversation a year from now. And it may look totally different. 38:22 For sure. Well, I didn't come on, for sure it will. You know, look when as this unfolds, we can't see what's around the corner. Just Just remember the guys who were driving stagecoaches right. Remember guys who right here? Yeah, yeah, they're on top there with their fingers all leathered and they know horses, and they know where the Indians are. And they know that they know the Wild West, right? They know that well, right? They could never imagined when a car came by, right the first time you remember the first time you saw a car? What's that? Damn, they've gotta kill people, it's males. And it's impacting things. And that thing is going to, I think it's going to kill people. Right? And you can't man, I don't know why they're talking about Southern accent also, I guess southern accent they're, you know, they imagine, they could never have imagined that later on in life, you'd have a piece of plastic in your hand. And you could you could poke at it a few times, and another car would show up. It couldn't have imagined that today where we stand and what we're talking about now is great. It's a vision for maybe we could see something. But where this is about to go is even more dynamic than that. And I behoove all the people that are listening to us right now, to get more conscious to get more focused to get more intentional about their day to really step into their businesses and their focus and look at all the new changing technology like a gift, right because there's a gift to be exploited. And those who exploit the AI gift will separate from the rest of the pack so fast that the other group won't be able to catch on. Very similar to what the French the English the Portuguese did with shipping. Right? We all these little tiny countries took over massive amounts of the world because they exploited a technology called shipping. Right? And that's what we're going to do today's as we go into this next segment of the world, we need to start looking at how can we exploit the opportunity of artificial intelligence as it impacts and quantum computing as it starts to impact our future development. 40:22 Boom. That is amazing. Where can people find you online? And tell us about your podcast, the feature factory podcast has been amazing episode. I really appreciate your time. Daniel, 40:33 anytime as always, lovely audience combined see future factory podcast. We're on all the major streaming applications. We're on YouTube. If you come over, make sure you tell me your from Daniels podcast. I love to have your guests here. I love first of all, I'm grateful that you invited me on the show. I love your show and the work that you're doing. It's amazing work. You know, it's insightful, it's creative. I love the ideas about real estate and how to do different ideas with real estate so I love it and they can find that future factory or you get me on LinkedIn Anthony amount of ticket LinkedIn. I'm sure Daniel put the link down below. And all the all the classic social media platforms. 41:17 You go. I appreciate your time. Thank you. And thank you, Anthony for coming on. Everybody here. You know what to do. Like, share, subscribe, you know what to do, and we'll see you next time. Thanks for tuning in, guys. Bye.