0:00 Have this podcast. I'm your host, Daniel Martinez. Today I have returning guests Mr. Ken D. If you have not seen the episode, please go check it out. We've covered pivoting into recession, debt and financing and the importance of it. And fatherhood, I think it's a really interesting episode. Today we have Mr. Kennedy back is to tell us a quote, interesting story about renovating an apartment, I believe. 0:23 Yeah, I do want to tell you the story. So this is something that I learned a very long time ago. And the reason I want to tell the story is because well, I wanted to save a whole bunch of people a whole lot of money, hopefully. So you know, when people renovate prop, when they buy a property, they always have a business plan. And they're ready to rock and roll. And usually they're chomping at the bit to get that plan implemented just as fast as they can. And I want to tell you what happened to me, this was a very long time ago, it was when before we actually use other people's money was my own money. And I bought this property, and I'm the moment we bought it, I was full on 100%, let's get this thing renovated. And we went, you know, pedal to the metal and doing that. And what happened was about 60 days later, after I'd spent most of the money that I was intending to use for this property, all of a sudden, I realize that there's something wrong with a building that I didn't know about before. But here's the problem, I didn't have the money now to fix whatever it was that that I didn't, I didn't know, I spent all my money and my business plan. And I didn't do what some people had encouraged me to do at the time, because I knew more than they did, right. They said, just take a minute, make sure you understand the property, don't spend all your money right out of the gate, leave some on reserve, so that if you learn something later, you have some money there to deal with it. And you don't have to go digging into your bank account to get even more money to fix it. Well, I didn't listen to them. I did that. That is exactly what happened to me. Now as it turns out, I did have some more money in the bank, my partner and I, it was one other partner, we just, you know, ease wrote a check and and took care of it. But the reason I want you to really pay attention to this story is that, you know, we do a lot of third party management in our business. And so many times our clients want to rush out and do everything. Now there are some things that you should do, and you shouldn't get on right away. But I want you to sit on your hands for 3060, maybe even 90 days, usually that's a long time. But for some period of time to make sure you understand your asset, your property, make sure the business plan still make sense, before you spend all your renovation money. Because it will no doubt save you later, when when you learn that new thing, whatever it is that the seller didn't tell you about. You'll have the money there to take care of it. So it's a true story. It was really stressful when it happened. hard lesson to learn. But hopefully, if somebody listens to this podcast that it might, you know, might be like, okay, um, I might listen to Ken, because he didn't listen to the guy that told him. But I'm gonna listen to him. And hopefully, it'll say it'll save you a little bit 3:12 of stress. There's always hidden costs, you can underwrite a deal. 100%. And there's always hidden costs. You never realized this, you're right across the face and can totally blow up your whole transaction, or affect your ROI to protect the league as a whole. 3:29 Yeah, it's even worse, if you're doing a bigger deal. And you've raised money and you're syndicating it, it isn't usually preferred that you call your all your investors back and say, Hey, I missed it by, I don't know, four or 500,000 bucks, can you send me some more money? That that conversation? I've never had to have it? But I couldn't imagine that it would go well. So you know, if I can save that, save you that. Please just listen and sit on your hands for a minute. It's just hard to do. I'm just telling you, it's really hard to do. Because man, you want to go full speed ahead. And you think time is money. Time is money. I gotta get it done right away. Just Just chill for a minute. And let let things play out and you'll be glad you did. 4:14 Why is advice from a 25 year plus veteran in the space? So I hope you all take notes. And hopefully, you'll you'll like whenever you're in the situation, it will come back to mind. That's how it happens. Is that like, oh yeah, what was that one episode? And you check it out. Watch that 4:30 again, right? You'll remember the guy who didn't listen to somebody when they told him and you'll be like, I'm not going to do what he did. Hey, 4:39 I appreciate you coming out again, again, because I hope everybody take everybody takes advantage of the knowledge out here. And like I said, it's not taken for granted. I think that's what I love about podcasting is I get to share that information over and over again and it'll be out there forever and hopefully somebody will actually listen. 4:56 I'm sure they will. I tell you got some good stuff, man. You have to do Good stuff. If you're not listening to this podcast, you're crazy. This has got some good stuff on it. 5:06 Alright, thanks for coming on Ken. Where can people find you again? 5:10 i partners.com/invest k r i partners.com/invest and you'll get to see everything you need to know about what we do. 5:18 You go please go show episode. We've covered a lot of cool, interesting stuff. Please go check it out. Don't miss out on another episode. Please go check it out. We'll see on the next one. Thanks. Thanks for tuning in. We'll see you go like, share, subscribe. We'll see you next time. Thank you