0:00 This podcast again. Today we have a special guest returning. If you did not listen to the other episode, we talked about AI construction and development and what the future looks like. We have special guests returning Anthony, I'm going to take you today we talked about cool, interesting deals and our deal breakdown. So what is your cool interesting story Anthony you have for us, 0:18 you know, I've got a bunch of them out there. But I'm gonna I'm gonna tell the audience about what I'm doing. Right now. It's kind of a fun one. I just got done buying a $500,000 building, right? It's a guy who has owned it, his family owned it, they actually built it, him and his dad actually built the building, almost 50 years ago, they they've owned it, it was kind of an under producing asset. It had a dry cleaner in it, it had a had a theater in it. And the theater was went went belly up after COVID. So for the last few years, it was it was bank, it was empty. And he was only getting a partial amount of money from the dry cleaner, a little bit over 1000 bucks a month. And when I sat down with him to look at the property, you know, what I noticed was he's elderly, he doesn't want to sell the property outright, because he has what he takes the capital gains hit, right, because he pretty much appreciate the entire building over over the 50 years they've had it. So the idea was how can we put this deal together in a way that might be a little bit more creative? Right? So one of the things we came up with was a rent to own right, we cut a deal that wrote a contract and said, Look, I'll pay you rent on this building for X period of time. And it was a two year period. And I'll give you $7,000 a month for that rent. And that's going to go directly to buying down my my overall cost of the building. Right? So imagine he's gonna He's gonna get a essentially a good 50 Wait, what's it? At 84,000 bucks a year? Yep. Right. And the only thing that comes out of that are taxes and insurance. Right. So the tax insurance come out of that money. Everything else is any expenses that are incurred on that during that time I pay for, right, so now I flipped a building around I put I put 70 grand in the building, I bought the building for 70 grand and and put a new roof on it built up the new tenant filled in the old the space where the school was, I did a little build out in there. And I put it around school, there was a theater in there. And the theater had they had dug it out and it had like four levels deep. So they had kind of Oh, wow, this thing is so I filled it in, poured back in put a couple bathrooms in rent to a school. Now school pays me $7,000 a month, I'd love to rent on the dry cleaner to $2,000 a month, I mean coming $9,000 A mother paying him $7,000 A month, I'm already cashflow in 2000 bucks a month on the deal. Right? While I'm paying down while I'm paying that's directly go into my pocket because all 7000 that minus the tax insurance are essentially going in my pocket and buying down the deal because I'm going from $500,000 right mindset at $4,000. So let's say we get another 70 $70,000 in, in actual cash that's going to buy down my deal that's $140,000 off the $500,000 deal when we close in two years, by the by the property at the you know the discounted rate for that property. And I'll already have shown the bank that I'm already cash flowing. And I've already got two great tenants in this space. 3:20 So you can essentially refinance in Panama that setting up your own capital 3:23 without use some of my capital do a new roof and build out the tenant in there, I probably could achieve that out because I got a I got a pretty good I got a really good deposit from from both he had no deposit on the dry cleaner and he had no deposit and it since a school. They give me first lesson security in a pretty decent amount of money therefore for their deposit. 3:44 One thing I want to hit on to the you never mentioned, it was 0% interest 3:50 0% Interest, no, no money, no no money on the money that I borrowed from him. And when I close this deal, it becomes a pretty sweet deal. Now, I also may have the option to grab another year from him. He and I were talking about egos, like we push this back into the year, I'm gonna buy Dell for another year. For him, it doesn't matter for me, it doesn't matter either. I've got preferred pretty well, where there's no real chance of me losing anything, no matter what happens to him or the deal. 4:15 Yeah, it's an amazing opportunity. And for him, he gets the benefit of paying less taxes because he's getting extra paid off the principal. So he gets a cheaper bite on so it's a win win scenario. You get an amazing deal with cash flow today. And the opportunity to refinance and the opportunity. We've extended that debt even longer, and he gets the opportunity of paying less taxes. So I think it's a win win scenario for everybody here. Very creative using a lease option rent to own Bytown amazing. I'm really glad you brought this up because we talked about this on your episode, and I'm really glad you brought it up. So this is such an interesting now we actually get to share it. I love podcasting because we have the ability to share, like our first and second conversations like we ever really talked beyond the podcasts, everything you're hearing is all here for everybody here to listen. So I appreciate you coming on and sharing that I hope people learned that you get to negotiate from wherever you want to negotiate from. And you've got to understand what the sellers needs and wants out of the transaction, and you create a win win scenario. 5:20 Thanks, thanks. I love your podcasts. The work you do out here is amazing. Thanks for having me on. I really, really do. You got an amazing podcast. Every one of these is full of all kinds of cool ideas. 5:30 So we're gonna do a funny online feature factory podcast. That's our I was interviewed. I don't know if that came up episode. But that's up to you tell the audience where people can find that. And hopefully, they'll follow you there as well. 5:42 You can find us on future factory podcasts on YouTube, Spotify, all of Apple, all of the platforms that stream podcasts were on I believe all of them. I know they were missing. You can also catch me on LinkedIn and the amount of Tiggy at LinkedIn. And if I'm in all of you type and antibiotic, most of the social platforms will pick us up. So thanks for having me on the show. 6:05 For everybody here tuning in, and thanks for tuning in. So like, share, subscribe, you know what to do. We'll see on the next one. Thank you, Anthony, for coming on. Thanks for your time, and we'll see you next one. Thanks.