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Action Academy | Millionaire Mentorship For Your Life & Business
How to Raise $1,000,000 + in the next 90 Days w/ Adit Shah
00:57:25
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- [00:00]
A
Every year that you don't know how to raise a million bucks loses you million dollar deals.
- [00:04]
B
I am a college uneducated, Navy bosun swindian kid from New Jersey, grew up with nothing. Total raise was 2.6 million. We closed it in 28 days. I raise money because I give people access to deals that they would never have without me. So that's one thing is being super clearly defined on what is your deal, how much am I going to make, and how fast than my boss, my investors, every single day.
- [00:29]
A
All right, ladies and gentlemen, boys and girls, welcome back to another episode of the Action Academy podcast, Corporate America's least favorite podcast. Today, guys, we are saving you the heartache and the headache that I went through for four years of my professional career. Four years. What I would do is I would work really hard, save up all my money, and I'd buy a house. And then I'd go work really hard, I'd save up all my money and I would buy another house. And then guess what I would do the next two years? The same thing. I had no idea that you were able to leverage other people's capital, raise money, do bigger deals. I didn't realize that I had access to all of that from the very beginning. And so I just didn't know what I didn't know. And so there's this phrase that I love that is going to encapsulate today's episode, which is every year that you don't know how to make a million bucks costs you a million bucks. And every year that you don't know how to raise a million bucks loses you million dollar deals. So, guys, today I have on my homie, my brother from another mother, Adit Shah, who is our capital raising coach in Action Academy. And I've directly watched you, dude, help what, like, raise a hundred million plus just from across all the people that you've helped in the community.
- [01:36]
B
Yeah, definitely. At this point, we've got a strong capital raising community and we're raising tons of money and taking down some huge deals.
- [01:42]
A
And so not only has he known how to do this and he knows how to teach it, which is what we're going to teach you guys today. He's also done it himself. So, Adit, share a little bit about your backstory and kind of, you know what you've got going on.
- [01:53]
B
Yeah. Thanks, man. So my name is Adit Shah. I'm a real estate developer from San Diego, California. Seven years ago, I got out of the military with nothing. So I had zero money, zero relationship, zero connection, zero skills. Zero. Zero. Actually had a negative net worth. Negative $5,000 was my net worth. And I had this crazy idea that I wanted to be a real estate developer. So I didn't want to be a flipper or wholesaler or agent. I want to be a developer. And I wanted to build Shaw Towers, like Trump Towers, but Shaw Towers. So I took my only marketable skill, which was I was a handyman, so I could fix anything within the four walls of a home and offered that skill for free to every developer in San Diego. 99 of them told me no. The hundredth guy said yes. My first job with him was moving about 50 boxes of vinyl plank flooring from one garage to another in a single family home subdivision he was building
- [02:44]
A
for people that have never moved. Lvp. It's heavy.
- [02:47]
B
It's heavy.
- [02:48]
A
Yeah.
- [02:48]
B
My back was definitely hurting, you know, but so that turned into me working for free, like on some Mr. Miyagi stuff with him for a year. And then I ended up working for him for a total of three years. I got hired as a property manager, project manager. So I did everything with him from the single family flip, simple remodel to like, ground up new construction, multi family, single family subdivisions, managed them. And then I became a principal. Getting into what we're going to talk about today, I learned how to raise Money. So in 2022, I learned how to raise money. And year I went from doing little onesie twosies deals. So I had done like maybe one to two deals per year, kind of what you described at the beginning of the episode. And that year alone, I bought 20 million bucks worth of assets in nine months by way of real estate syndication. So I had about 130 investors at the time across four hotels that we took down, and the rest is kind of history. Wrapped up my hotel chapter in 2023 and then came back to San Diego and have been build, building new construction multifamily there ever since with a group of very, very happy investors.
- [03:51]
A
Beautiful man. And I've just seen you in action so many times with just not only your own personal portfolio, but like, seeing how you help others and how you serve others, which is why I really like partnering with you. And it's just we've done some crazy trips. We traveled to a couple countries together. Came out to my birthday, and now I'm excited to help everybody that's listening to this and watching this. So let's set the scene, set the stage for somebody that's watching this. There's going to be a handful of people that are watching and listening to this. Number one, it's going to be somebody that's working the corporate job. Maybe they've saved up 50 grand, they've got an Airbnb B&B or two. And now they're looking to scale into a commercial portfolio. They hear us on the podcast, they've seen people do multifamily mobile home parks, boutique hotels, self storage, all these commercial assets and they're looking to scale into that. And then person B is maybe that person that's in corporate, that's got a high income job, you've got 400, $500,000 sitting in cash or a 401k and they're scared to deploy it and they're scared to actually do something with it. We could talk to that person as well, because there's two sides of the coin. It's like the person A is the person that needs the capital. Person B has the capital and doesn' quite understand how to deploy it. So let's speak to person A first. So first off, why go from single family residential into commercial? What's the allure there?
- [05:03]
B
Yeah. So first of all, real estate is a very get rich slow, but get rich guaranteed, right? So if you iterate the same thing over and over again and you follow some basic principles and that, that you, that you learn, you're pretty much guaranteed to get rich, very, very wealthy. But it's, it's a slow burn. To buy one roof at a time is very, very slow. Now you can raising capital and commercial deals to take maybe a 10 year trajectory and condense that down into one year like I did and like many people in our community have now. So the reason for making the shift is simply speed, number one and number two is economies of scale. So when you get into commercial assets or even businesses, you can raise capital by businesses bigger deal sizes. You get the economies of scale, you move a lot quicker and it's just a lot more efficient. It takes the same amount of work to close on a single family home. The work that it takes takes to close on a large commercial deal is incrementally larger. It's, it's not, it's not like proportionally larger.
- [06:04]
A
And so, I mean, we just ran into the same thing. So I just did my first development deal and I did the exact same thing as you. I've got a small percentage of the GP because I wanted to come in, I wanted to learn, I wanted to do the deal that's a $14 million deal. You know, people are buying $140,000 Airbnbs as their first hospitality deal. My first deal is 14 million and we raised 1 point. I raised 1.2 for it. I think we total aggregate raises, I think like 4 point something. So we ra 4 for a 14.2 million project. And so solid arrays, solid, solid experience. And what I like to tell people is they don't. A lot of people just don't understand the economics of it and how it works. Because the two kind of forces that people are saying for single family residential is appreciation and debt pay down. But you cannot control market appreciation. So even if you got 2% per year, it's like, I think me and you both owned homes during the COVID era. We were able to see that appreciation. But you're, you're gambling, like, you're just like, I hope that we have some appreciation now. And right now in the environment that we're in, I don't really see the appreciation coming. The houses that I sold, 20, 23, all my rental properties, single family, are the same price today in north Atlanta. So you would think that they would have doubled in value. It doesn't go up forever. And so that and debt pay down. But then when I started doing commercial, I was like, oh, I can force appreciation. I can build a million bucks of equity. I can manufacture that. So before we get into the capital raising, can you explain how that process works with cap rate and noi?
- [07:34]
B
Yeah, absolutely. So when you're talking about a single family home, you know, if you've ever bought a single family home, you ask what drives the value in a single family home, and you'll have this realtor take you around to see four or five properties and they'll show you the comps, they'll show you the comparable properties. Right. So they'll tell you, oh, this house is worth 500,000 bucks, because three houses similar to it sold for 500,000 bucks. So if we can distill that down into what drives single family home valuations. It's emotions, it's people's wives and husbands making decisions on how long the driveway is. Vibes on the vibes. Exactly. Right. So that's what the single family home market is based of, obviously leverage, like I'm simplifying it, but also the mood of the appraiser, like the mood of the appraiser, the mood of the lender, the mood of the market, everything. Lots of moods, lots of emotions. In commercial real estate, you're kind of disassociate from that because your value is Based on the amount of income that you can, you can have that asset generate. So if I have apartment building A and apartment building B and they're right next to each other and they're carbon copy identical, apartment building A makes a million bucks a year net operating income. Apartment building B makes a million 5, 1.5 million net operating income. Even though they're carbon copies be identical, the apartment building B is worth more. Now, let's take that same example with two single family homes, A and B. I bought both of them for $500,000. If I put a billion dollars into single family home B, it, I might make it worth 700 grand just because of the comparable properties.
- [09:06]
A
And that's why Airbnb investors, that's what you're running into. It's like you're going in and you're really putting all this blood, sweat, tears and to make the property wonderful, to make it a top 20%, you want to become a super host and you're putting all, all of this time, energy and effort is not going to increase the value of the property because it's going to be the comparable to what's down the street. They don't care that you have a freaking movie theater and a mini golf course on your property. So it's great for cash flow. But when you go do that same stuff to a boutique hotel in that same, in that same kind of conversation, going from a single family asset to a commercial asset in hospitality, you can drive so much more noi, which then impacts the cap rate, which then impacts profit and the valuation. So, dude, it's so amazing. So walk us through. I want to, I want to use one deal in particular to use this as a case study. So like the Amines. So they were on the podcast, they're sitting exactly where you're sitting right now. Aaron and Andrea, husband and wife duo, they had nine single families and then they went to do a residential assisted living. I think you were pretty intimately involved with helping them kind of structure their pitch and their raise. You wanna talk a little bit about that?
- [10:13]
B
Yeah, absolutely. So Aaron and Andrea, incredible, beautiful people. If you haven't seen their episode, watch it. You're going to learn a ton from them. Genius people. But to exactly what you just described. When I talked to Aaron the first time, it was like maybe six or five or six months before he started raising, he had a pro forma that looked like a cat. You gave a ball of yarn to a cat, you know. But what he had was an insanely good deal. Right? So this Guy went from buying single family homes, working corporate to building a ground up luxury residential assisted living mansion in Texas.
- [10:49]
A
Right.
- [10:49]
B
So he made that big jump and it was through the power of raising money and we were actually able to help him raise nearly 3 million bucks in right under 60 days for his first ever capital raise. So I want to go back to something you said. He said. Yeah, my first deal was 14 million bucks. We raised 4 million. You might hear, you might listen to that and be like, I could never do that. If you're a corporate employee and you're making somewhere between 150 and 300 a year you can, you can raise a million bucks in 90 days. We've got a system for it. Plenty of us have done it. You've got the network for it. It's actually a lot easier than you think. But this guy, he raised nearly 3 million bucks. I want to say it was like 2.6 or 2.8 and right under 60 days he knocked that raise out. And now they have officially broken ground on Everwood Reserve. It's a, it's a luxury man assisted living mansion in near Houston, Texas.
- [11:35]
A
Yeah, Tomball.
- [11:36]
B
Yeah, yeah, yeah. So and that's their first ever deal but there's a lot that we can distill from there. They had the right team, they had the right principles, they, they involved us to be their capital raising consultants. So yeah, yeah, it really worked out.
- [11:49]
A
And then now they're going to be able to manufacture $4 million of equity when the property is fully like fully let out like $4 million of equity from that because they bought the deal so well. So that was absolutely insane. Shout out to Andrea and Aaron for if you guys haven't seen the episode. So I want to go to what you just said raising a million bucks in the next 90 days. So if somebody's watching this, the clock starts now. So let's take them through that. What are the steps in this process? What should they be looking out for? In what order?
- [12:19]
B
Yeah, definitely. So first of all there's one simple thing that you have to reframe. So in 2022 I ra we, you know, me and a team of three other people, we raised maybe 5 million bucks that whole year to buy 20 million bucks worth of assets. Not bad. But it took me a year to raise that 5 million and I was strand, I was scrambling for capital. It was tough. In 2024 I bought a 10 unit apartment building in San Diego. The total raise was 2.6 million. We closed it in 28 days. One simple Thing that I shifted, right. So from going to raise maybe 4 or 5 million in a year to 3 million bucks in 28 days. When I ask people, why do you. Why do you want to raise money? Say, I want to scale. Oh, I don't have the money myself. Oh, I need it. Right. I need investors. I want to use other people's money. I want to leverage other people. All of those are reasons, but they're not a reason that's going to propel your capital raise. Right. What's going to propel your capital raise? If you shift your mindset to. I raise money because I give people access to deals that they would never have without me. So no one, unless they were an accredited investor, part of the good old boys club, and knew a luxury mansion assisted living developer, would have access to that level and quality of an investment vehicle without knowing Aaron and Andrea or knowing Joseph Raspberry, another AAC member who's involved with that race. So that is why we raise money is because our friends and family and other private investors who are. Who may or may not be accredited have their money in Schwab making 6% right now. And that's BS, right? The wealthy have access to top tier commercial real estate deals where they double their money every three to five years. Why shouldn't we do that too? And we're able to do that by taking the private operations of real estate, commercial real estate, forced equity, all those things into our hands and opening that up to our networks. So if you can make that simple mindset shift to I raise money to afford people the opportunity to grow their wealth at a rate that would never be available to them without me. That's going to propel your capital raising journey. So that's number one. Number two is you have to obviously have a deal in an asset class. So once you pick that, we distill that, we we distill that down into a narrative that we then go pitch to investors. So we've got a whole system to do that.
- [14:33]
A
Yeah. So I want to hit on the first part that you said there, because right There is where 90% of people get stuck, which is at step, because they have this thought in their head that I want you to speak on, which is, I don't want to beg for money. I don't want to pester people for money. I don't want to be viewed as annoying. What do you say to that?
- [14:51]
B
Okay, it's different. Hey, Brian, can I borrow 500 bucks? That's. That's begging you for money.
- [14:55]
A
I'd give you 500.
- [14:56]
B
Yeah, I need to, I need to borrow 500 bucks, you know. No, it's. Hey, Brian, what are you doing with your money right now? Oh, well, you know, I've got it in shua. I don't know what you do with your money, but whoever, grandma, uncle, coworker, boss, what do you do with your money? Oh, well, I have it in my IRA. And how much have you made in your IR in the last 10 years? 7%. That's, that's dumb. What if, what if you could allocate a responsible portion of that and make 20% a year? Would. Why, why is that? That's not asking them for money. That's opening them them an opportunity up for them. So it's really making that mindset shift. Understanding how people invest traditionally, especially in corpor, like people's retirements are pegged to their employers. Imagine your employer controls your retirement. What you're going to do with your old, that's crazy. Give them the opportunity to retire early. Give them the opportunity to diversify and invest in something that won't be available to them without you.
- [15:55]
A
Yeah, and my favorite little hack, it's just like one sentence that you add to the end of the ask. Because I'm that type of person too. Like even, even when y' all came to my birthday, I was like, I don't even want you guys to pay for anything because I don't want to ask somebody to pay for something to come to my birthday. You know, So I hate asking people anything, which has benefited me in the long run because I just give. But when I was raising capital, I just did. I learned this from Brandon Turner, where you literally just add. At the end of it you say, hey, you know, looking for investors. Like, hey, we've got. We're. I don't know if you saw, but I'm investing in multifamily now or boutique hotels or self storage. You know, we're looking, we're providing double digit returns passively to investors. Do you know anybody that would be interested in this? It's called the diagonal ask. And just like Brandon Turner hated asking people too. I hated asking people. But when you say it like that, you're not asking them, like, do you know anybody that would be interested? And what that does is either A, they'll say, hey, like, I'm interested, like, why aren't you asking me? Like, what are you talking about? Like, I, I'd like some more information on this, or B, they'd be like, oh, I don't Know, like, let me go look up some people. And it's a super simple ask. And just. Just doing that alone, I've seen that make me people a million bucks. It's freaking crazy. So what other mindse do you think people need to overcome to be able to get over the fear of raising capital?
- [17:12]
B
Yeah, I think. I think that's the biggest one. Right. And then number two is, you know, make sure that you have a good deal. So, like, the success of the capital raise depends on your belief in the deal. So if you could find a deal that you unconditionally believe in and you would put your skin in the game on that deal, you're going to present to investors a lot differently than if you're like, just kind of doing this to make a quick buck, right? So I would say those are the two things. And then it's like, we're not.
- [17:37]
A
Not.
- [17:37]
B
We're not. This isn't a pyramid scheme, you know, like, this isn't like, we're not selling Mary Kay or whatever the hell, right?
- [17:43]
A
We're.
- [17:43]
B
We're giving people the opportunity to invest in something. So if your underwriting is dialed in and you have a good opportunity, there's no reason to have any fear of raising money. Now, the other thing that people have fears around is experience. Like, this is my first ever capital raise. This is my first ever deal. And we can quickly, you know, kind of overcome that by bringing some experience to the table. So let's go back to the amines. They partnered with someone who had done it like 10 or 15 times before, and they brought that person into their capital stack into the equity table in the deal, right? And not only did that help them win the confidence of investors, they're like, okay, yeah, this is an experimental, but it also gave them the confidence to go take on a deal of that size for their first ever jump from single family to commercial, right? So if you have that fear of experience, get around the right people who have done it before and involve them into your deal, and you'll have a lot easier time raising money and you'll have no fear about the execution and operations.
- [18:40]
A
I think a lot of people focus too much on their size of the slice of the pie, and they're too worried about divvying up the pie. When you should just go get a bigger pie. They go get the family size and like, your slice was as big as your previous personal pie. And so you did that. I did the same thing. So if I, like, look, I'm a charismatic guy, I'VE got a pretty decent following. You would think that I could go out and raise, you know, for a $14 million boutique hotel, Hotel deal. Maybe, maybe the deal was good enough and sexy enough and trendy enough for me to pull it off. But what really pulled it off for us was I was a part of the deal. My team is what allowed us to raise that capital so easily. People knew, liked and trusted me and, but they respected the experience that my team brought to the deal. So my GC has done full cycle, four projects, never been over budget. I don't know how many GCs you know that have never been over budget. Banks is a freaking animal. I should introduce you to him. My, my principal right now is like Ben Wolfe. He's done this five times. He's, he's both built, developed, got it, got live and exited to private equity. So he's ran a full cycle. He's done this multiple times. And then Steve is a hospitality legend in Miami. He's got access to all of the, all the ins and outs of who's who there in development and leasing and everything and in permits and so like just our team is a freaking superstar team and that's what allowed us to raise. And so what would you say to the person that goes, well dago medit man, Brian, like this all sounds great but not only do I not have any money, I also don't have these connections. How the heck do you find a team like this?
- [20:21]
B
Yeah, I mean you gotta. The easiest thing is community, right? So like whether it's joining a masterminder community or going to your local meetup or just, just join in the Facebook groups. Like if you want to be a self storage investor, join the local self storage investors club. Consider joining a community that has self storage investors. But the other thing is, I want to really highlight this. If you have never done a ground up residential assisted living facility or self storage facility or boutique hotel, the chances of that going flawlessly your first time.
- [20:56]
A
0. Are. 00%.
- [20:58]
B
So are you gonna. So you've got two options, right? You're not gonna go learn on investors dimes because that's unethical. It's. It's legal, but it's unethical. It's immoral. So you've got to fork over that cash to do your first deal to get your licks in to then involve investors. Or you can get around the right people just like Aaron did. And even in. So like even within Action Academy, I'll give a shout out to Hunter, right? So Hunter's gone full cycle and who knows how many self storage deals, big construction background. So he's involved community members to help him capital get their name on a couple of deals and then now some of them are now able to go deals on, go do deals on their own. Same thing with Tim Woodbridge. He went from like 7 to 40 million in mobile home parks in like three years. I might be butchering the numbers. I think it might be more by now.
- [21:43]
A
I think it's more, yeah.
- [21:44]
B
But you know, for people who wanted to A, learn how to raise money and B, be mobile home park operators, they joined Tim, raised money with him or went and had a deal, full cycle with him and then now they're doing their own deal. So like you can go do one, you can go do two with someone with experience and then you have a fork in the road. I love this person. I want to do business with them for life or I have enough experience now to go do it on my own. Right. And I just. One thing that I've, I've seen that's a common objection or common roadblock for people is like, to your point, I want to keep the whole pie on the first deal. The chances, it's selfish. And the chances are you going to just live to do one deal, bro. Like, come on, man, you know, it's just one deal. It's just one project.
- [22:27]
A
Yeah. And I can almost guarantee with 100% certainty that that first deal is not going to make you rich. No, it's not the first deal. It's like the 20th deal that you do 10, 10 or 15 years deep where you've done so many that you've got a track record, experience and you've got investors that have been riding with you for a decade. And then you go do that one development that changes everything for you and your family tree. But it's like gradually, then suddenly, you know, it's. And so people I think are just. To your point where you said in the very beginning that real estates get rich slow, but it's get rich for sure. I think people are too shortsighted and they're thinking about how can I make money like today versus how can I make a hundred times more ten years from now? I think that's the game to play. And the reason I'm hitting on the team so much is because for me, even as a capital investor, I think I've got probably 500,000 to a million bucks deployed as an LP, a limited partner as well. And what I look for is three things I look for a deal. Like I look at the deal first. What is the deal? How does the deal look, how does it operate, how does it pass the sniff test? For me, I'm not gonna fully underwrite it, but I want it to pass the sniff test number two. I look at the team and I'm like, okay, cool. Now who's on the team? Who's the experience? Who's the chest to poke and the throat to choke for each area of the operations, right? And then the third thing I look for is do I trust this person? Do I trust the person that's presenting the narrative? Do I trust the person that's presenting the story? What's the story behind this? And do I trust the person telling it to me? So we just talked about the deal, which we can get a little bit into, like how to identify the best deal and the technicalities of it. We just went to a little bit of the team go really quickly into the story. I think the story is quite arguably the most important point, which is just like I can look at a deet and know that this guy, when things do go wrong, not if, but when, he'll take care of it and he has my back. So talk about the importance of that and building your confidence through the story.
- [24:20]
B
Yeah, absolutely. And I think we're starting to talk to person B here. That person that has a half a million bucks or a quarter million bucks and wants to invest along with person A, who, who needs to learn this to win the confidence of investors. But we actually wrapped up a two day workshop with like 50 AAC members in San Diego. Everyone came out and just so bummed
- [24:38]
A
I couldn't be there. You're going to be at the next one? Yeah, the next ones go to San Diego.
- [24:42]
B
Yeah, anytime come out. You guys are most welcome. But the pre. The, the premise of the workshop was structuring the pitch. And the way that I pitch is completely different than other people. And it's, it's worked tremendously well. Everyone has a good deal. Deal, right? So like if you're, if you're pitching to investors and that person's a limited partner with a quarter million bucks, a million bucks, they're looking at five or six of their deals. It's kind of like dating, right? So like, if you're going to be rigid about it and just like, hey, I've got 20, 20 IRR, five year hold this much depreciation, this is why I love it. These are all the reasons everyone's saying the same thing. It's the opportunity of a generation. It's got downside protection. It's recession, it's recession resistant. None of those things are true.
- [25:23]
A
Okay, what is the market? Look at the market. Growth.
- [25:25]
B
Growth, exactly. Yeah. None of those things are in the control of the.
- [25:29]
A
They're all using Claude to make the presentation.
- [25:31]
B
Exactly. Yeah. So if you want to be different, what we've done is we've created this system where we take the disc profile, the four layers of disc, and we layer that over a deal to distill it down into a pitch and a narrative and it's a story. Is, what is this? What problem is this solving? Right. Why are we the most equipped people to solve that problem? And then why is this a great opportunity? And what is our credibility and traction record? Right, so we've had tons of members go through this and create some incredible pitches that have raised multiple millions of dollars. Right? So like, one of them, let's say for like an H vac business, is, you know, global warming, number one. Number two, can't be automated by AI and incredibly inefficient. All owned by baby boomers. This is the problem. You, you attach a shocking statistic to it and then throughout the pitch you distill, why are we the best equipped people to, to operate this opportunity? Because we've done it before. Because our background points us in that. Because I used to be a CFO at a, at a company or because I used to be an operations director
- [26:36]
A
or, you know, double click on that. I think what you just said is super important and it's something that people can gloss over. So a lot of people that are listening to this that maybe will be the person that's raising the capital on the team, because, spoiler alert, the experience on your team doesn't want to be the one on the webinar, doesn't. They don't want to be the ones talking to investors. It's going to be you, dude. So as you're going through that, yeah, maybe you haven't bought 37 hotels in the past, but what you have done is you've done X, Y and Z in your career. You've got career capital. So explain a little bit more about how you can pull on experience from your past, from your corporate career, to be able to sprinkle that in there as authority as you're going through your pitch.
- [27:15]
B
Yeah, absolutely. So we've got two. We've got two AAC members. They're a married couple, they're both software consultants. So they've, they've basically Basically, one of them, the software role was like, based mostly around sales, the other one around operations. But they're looking to buy a software consulting company to replace their W2 income. Actually, I think they officially have a deal under contract now. But their big thing was, you know, how do I. I've never ran a business before, but I'm like, tell me one time in your career where you helped the client save millions of dollars. Oh, yeah, I helped this Fortune 100, Fortune 500 company reduce or reduce their expense by this much and added a million bucks to E. I'm like, perhaps we mentioned and like you actually have
- [27:58]
A
done maybe make that slide seven. Right.
- [28:00]
B
And there's things that every single one of us have. Two things we have an unfair unique advantage. And number two is we have a unique track record. Like everything that you have accomplished, if you're in corporate and making over six figures, you know you are in the top 1% of the world.
- [28:19]
A
Right.
- [28:19]
B
That is a big deal. Congratulations for making it that far. You. I congratulate you. Most people will never get to where you are. Think about everything you did to get to that point. If you've been a corporate career for five to 10 years, you've promoted, you did things to promote, you helped clients save millions of dollars, you made millions of dollars for somebody else. All of those things count towards your experience.
- [28:44]
A
I think people don't pay attention to their career capital enough, especially with small business. So a lot of people, I mean, if we go all the way back to the beginning, like, the biggest limiting belief. Belief and mindset block that people have isn't even, oh, I don't want to be a pest. It's who am I to do this? You know, who am I to raise this? Like, what experience do I have? Like, this is for other people. Like, this is for rich old white people. Like, this isn't for me, you know, so anything to say about that really quickly and then we can get into kind of the. The deal stuff.
- [29:13]
B
Absolutely. I would say, like, yeah, if you. If you want it to be about rich old people, then that's. That's exactly the results you're going to get. That limiting belief is going to keep you in your exact same situation. Guys, I am a college, uneduc, dedicated Navy bosun's mate. So if you don't know what that is in the military, my job, you are either have a criminal record or you have a very low test score. That's the job that I ended up in. Indian kid from New Jersey, grew up with nothing and have done what I've done. Right. So if I can do it and you're sitting here listening to this and you may or may not be college educated, may or may not have a six figure job. You're already light years ahead of where I was.
- [29:50]
A
Yeah.
- [29:51]
B
So if I can do it, you can definitely do it. And if you think you can, can't, you know, get in touch with us.
- [29:57]
A
100. So let's talk about some of the common pitfalls that we see because we do. A lot of. You do a weekly office hour in action academy where you look over a lot of pitches. I've looked over pitches. I'm getting a pitch once or twice a week. So congrats. They're making them and they're sending them to me for capital. And some of them are like, hell yeses. Some of them, I'm like, hey, go back and redo this. Try this this way. And then we'll go from there. What are some of the common pitfalls that you see where people crash and burn and then kind of have to go back to the drawing board with capital raising.
- [30:27]
B
Yeah. I would say one is not being clearly like, not having your deal clearly defined. Like when I, when you come to someone like br to like Brian or someone else with capital, you need to tell them, hey, I am going to buy a service business. It's a water heater repair company. Here's the ebitda. Here's how I'm gonna, here's how I'm gonna grow the ebitda. This is the how much more multiple we're gonna get. This is what it's gonna be wor. You're going to get a 20% average annual return. You're going to get 3% equity. And here's how you're going to get paid back. And this is exactly how it is. And here's the timeline and here's the return. Where I see people get caught up is they'll say it's a 3 to 7 year deal. It's a 16 to 25% IRR. What is it? Is it 3 or is it 7? Is it 16 or is it 25? So we had an AAC member come to office hours about a month ago with that whole range. And I was like, look, if you talk to investors like that, you sound uncertain. So let's distill your pitch down into a certain business plan. You have a middle case and you have a low case. I never talk about the high case because you lose people's trust talking about fairies. In imagination land, what's the most probable case and what happens if shit hits the fan? What are those two things? Tell me. Tell me quick. I'm a high D personality. And then I'll be able to decide if I want more information or not. So she made this simple shift that's for a mobile home park deal. Her name's Carrie.
- [31:48]
A
Yeah.
- [31:49]
B
I was about to say that she made this one simple shift and she sent me an email. And I'm getting goosebumps thinking about it because it's the most gratifying feeling. Feeling in the world. She said, adi, I was with my kids and my husband at the beach and the vacation, and I. I closed an investor for 100 grand for a $300,000 raise.
- [32:06]
A
It's freaking good.
- [32:07]
B
Yeah. That was my Wednesday Wins, like, a week or two ago. The screenshot of that email, man. So that's one thing is being super clearly defined on what is your deal, how much am I going to make and how fast.
- [32:18]
A
Yeah. That's why I think it's funny whenever somebody's like, oh, I don't want to pay 10 grand or 20 grand to join a mastermind. I'm like, that's one conversation that she had that gave her a hundred grand. And it's funny because people that are doing that are like, you got 30 grand in your bank account. I'm like, that covers legal fees. Like, that's it.
- [32:35]
B
Yep.
- [32:36]
A
Like, you're. Don't. You're not even. Not only can you. Do you not have the experience to do a deal on your own, you don't have the team to do a deal on your own, but you don't have the capital to do a deal on your own. You have enough capital right now to pay the lawyers to draft up your syndication paperwork. That's what you have right now.
- [32:49]
B
That's correct.
- [32:49]
A
And so it's just like, shout out, Carrie. I need to have Kerry on the podcast, Dude.
- [32:53]
B
Definitely.
- [32:54]
A
I spoke to Kerry for a year and a half in my DMs. Back and forth with her. Her convincing her to finally do it. And so that's why it was like a double win for me. Because a year and a half. That's a year and a half that she wasn't raising. Year and a half that she wasn't doing mobile home. A year and a half that she was playing small. Not to say that she was doing a bad job. She's a badass, but she just didn't know what she was capable of and she didn't know it was possible. And now she's over here closing deals on her own, like million dollar deals. It's freaking insane. And so congratulations to you on that as well, man. That's freaking awesome.
- [33:24]
B
Thank you, man. And I want to highlight one thing that you said there. Like me, even me being a part of this community, like we just got off the Dominican event and every time I get around the people who are wanting to do the same thing as me is, which is live a very extraordinary life, be wildly wealthy and make a positive impact in the world. It's like kind of a refresh because entrepreneurship is super lonely. So when I go back to my bubble in San Diego, it's just, you know, putting out the fires and chugging along.
- [33:51]
A
It's just problems.
- [33:52]
B
Exactly.
- [33:53]
A
All you're dealing with and the only thing as a CEO that you get is everything that this wrong.
- [33:56]
B
It's. Yeah, you're, you're, you're a professional problem solver. Right. And it's very draining. But like, you know, forget the international events. Those are just magical. But like the, the weekly calls, man, we get on and I'm like, okay, people relate and they have the solutions to my problems. Right. Even at like, I don't want to say I'm at such a higher level than everyone, but even at my level now, I learned so much because we have so many people operating at the same time within the community that we get this fast input and data from all sectors of the market. It helps us make much, much better and helps us solve problems.
- [34:29]
A
And you get sharper when you teach.
- [34:31]
B
Absolutely. Yeah. Teaching is the, is the, is the last step to mastery. So.
- [34:35]
A
Thousand percent. Yeah. To go back to a couple of the things that I've seen from people that crash and burn with their raises. One of them which if I could go back, I would do this differently. I didn't have any choice in the matter because it was going to be a raise that was going to happen regardless. And so I was just like, all right, we're going to do it yalls way. But there's two different types of syndication. There's a 506B and a 506C. Do you want to quickly share what the difference is between the two before I get into the story?
- [35:01]
B
Yeah, totally. So the 506B is going to be for non accredited investors, sophisticated investors. So an accredited investor is basically someone who makes a quarter million bucks with a likelihood to make it again and, or has a million dollar net worth excluding their primary residence key there and then a, a non accredited investor is everyone else. Right. So 506B allows you to raise from non accredited investors, but you can't publicly advertise.
- [35:29]
A
Yep.
- [35:29]
B
Right. So you can only talk about it with your friends and family. You can't broadcast it to the world. 506C. You can broadcast to the world. However, you can only raise from accredited investors people who fit that criteria.
- [35:40]
A
I think every single person should start with a 506B.
- [35:44]
B
I agree.
- [35:44]
A
We couldn't ask me how much money I turned down in Action Academy.
- [35:50]
B
Oh, man. Millions.
- [35:52]
A
2.1 million.
- [35:53]
B
Oh, God. Yeah.
- [35:55]
A
I had 21 people say that they would give me $100,000, but they were not accredited investors.
- [36:01]
B
That's nuts. You know, there is this new thing on the scene called an investment club where you can generally solicit and.
- [36:07]
A
Oh, Lord, I don't even want to get into that.
- [36:09]
B
No, but.
- [36:10]
A
But if you're so. For anybody that's listening, it's like if you. When you're doing the syndications, right? So you have the 5 or 6B. 560. The key is you can go from a 5 and this is the magic sauce. This is the secret sauce. Right. You go from a 506B.B, friends and family, you go hit up your mom, you hit up your grandma, you hit up your aunt, you hit up your uncle. Oh, by the way, you better be an LP in the deal. Yes, you better throw up 50 grand in the deal. Because how are you going to go ask somebody else for money if your money ain't it? I got a hundred grand in my deal. I got 200 grand in my deal.
- [36:39]
B
Yeah.
- [36:39]
A
As an LP, so it's like aligned interest. Right. And you can share that in your pitch. Like, I'm right in the trenches with you guys. I've got skin in the game. Very important. But to go back to that, you can go from a 5, 500, and 6B and go to all your friends and family, everyone that's in your phone, every contact that you've ever had, you're emailing people, messaging people on social media. And then at the very end, if you have not raised enough money, which I doubt, if you go reach out to like 300 people, you'll find it. Then you can go to a 506C. Yes, you can transfer to a 506C. However, if you start with the 506C, you cannot transfer to a 506B. No, you can't do it. And so for Baya, we were 506C3 and through. And so I, like, with tears in my eyes, I'm watching all these people. I'm like, are you accredited? They're like, what's accreditation? I'm like, that's not the answer I'm looking for. That means you aren't. I'm like, no, because they'd all saved up money, but, you know, they're worth 600,000, 700,000. And so accreditation rules, I mean, we can go down a tangent there, but I think accreditation rules are ridiculous. It's to protect people that are sophisticated. But what I think it does is it limits access to the common man. Man. But I digress. That's what I would do. Number Another thing that I see people do wrong is that you start with a minimum check size of 50. Do a hundred. Yeah, do a hundred. What's your, what's been your experience with that?
- [38:02]
B
Yeah, I mean.
- [38:02]
A
Or 25. Oh, yeah, we'll take 25.
- [38:05]
B
You can, you can always say it's a hundred and then make exceptions.
- [38:08]
A
You can. And then they're the exception.
- [38:10]
B
Yeah, yeah, yeah.
- [38:11]
A
But you can't, you can't be like, no. So here's the thing. If you say the minimum investment is 50 grand, rarely that people are going to give you 200. Right. But if you say, hey, it's a hundred minimum, which is what we did for bio, but like, okay, you only got 50. Ah, let me go ask the, Let me go ask the KP and let me go see what he says. And then you're like, okay, you, you can do 50, but it's our secret, right? Yeah, yeah, yeah, yeah. Cool. Yeah, you're in. And so it's just like. And also talk about the difference between investors that you work with. We've fired investors. We have fired investors at the first draw. We're like, hey, we are not aligned. Thank you so much. Here's your capital back. We're actually going to go a different direction. So people don't even realize that you can do that. So talk about the difference in caliber of investors, the 25K one versus, like somebody that invests a quarter million.
- [39:01]
B
Yeah, absolutely. I mean, you're going to be herding cats at, you know, 25 or 10 grand a pop. Right? It's just a different.
- [39:08]
A
It's a large portion of their liquid net worth.
- [39:10]
B
Correct. And let's say, okay, yeah, one thing is alignment and value values and personalities, because you'd be married to this person for five to seven years in a real estate deal, you know, to go full cycle. So that's, that's One thing to consider, but it's also the other thing to consider is, is this person making the best decision for them and their family?
- [39:28]
A
Right.
- [39:28]
B
So if they've only got 50 grand and you, you need to be honest with yourself. This is a moderate risk, moderate to high risk investments, an aggressive return. The market can do anything. You need to express all of those
- [39:39]
A
things to them and your capital is lost. Locked. Absolutely not.
- [39:42]
B
Not liquid.
- [39:43]
A
Liquid. You're not getting it back.
- [39:45]
B
Not liquid. You need to put money up that you're. That, that you can miss. Right.
- [39:48]
A
And you can afford to lose.
- [39:49]
B
Yeah, exactly. Exactly. And that's the big part. And the other thing is telling people you can lose this money. It's one thing to write it in a ppm in a legal packet this thick, but to say that on the pitch. Right, I, I say it in every pitch. Only invest what you're comfortable with losing. Because this is a risky investment.
- [40:06]
A
Yeah, Right. Even with people that join Action Academy, like, if they only got ten grand to their name, we won't even let them join the community. Cause I'm like, what's the best case scenario? Like, maybe you find the one in a hundred people that are Mason Miranda, that are super scrappy. But I mean, for the most part, what it is, is you just have somebody that's just like, now their marriage is going to suffer because they just spent their last ten grand to just have access. I'm like, now you don't have any money to pay the bills, which is going to bring you into scarcity, which isn't even going to allow you to play at the same level of playing field as everybody that's in the group. So, I mean, dude, it's like we have to turn people down left and right, even for, for just access.
- [40:41]
B
Yeah.
- [40:41]
A
Which is, it's, I believe it's our fiduciary duty. It is your legal fiduciary duty as somebody that's taking capital and you have some. I want to hear your thoughts on that because you've said this multiple times that like, you're like, it is my duty, it is my responsibility. I will do whatever it takes to make sure that you guys get paid. I'll, I'll eat shit. But you guys are getting paid. Like, talk about how you view the stewardship of capital.
- [41:06]
B
So you have. So I've lost tons of my own money. Don't even lose a, A, a minute of sleep over it.
- [41:14]
A
Same.
- [41:14]
B
Lost tons of my own money. I don't care. I, I made, make it all back and I'll do it again. But to lose somebody else's money is the shittiest feeling in the world. That is, that really sucks, right? Because they, because they have put their trust, put their trust, they put their life, their savings, they put their family's future wealth in you, you know, and some things you can't control, like the market you just absolutely can't control, you know. But if you communicate that up front and tell people this is a risky investment, only invest what you can afford to lose and then you do everything you can to execute the business plan. So like my business is a lot different. I absolutely do have a boss and my boss are my investors. So every single day I have to make a decision to make sure that the center of my activity is to maximize their risk return. That's the way that I have to live while I have investor money. You know, and it's not for everyone. It's absolutely not for everyone. It is exhausting. It is sometimes it's not fun. You know, things rarely go to plan, whether it's for the good or for the bad, right? You're going to make a plan, but you have to have the flexibility to move and always have that end in mind that I want to give these people the maximum return that I can. I'm constantly looking at new ways of how can I maximize my investors return, how can I maximize the asset revenue, how can I maximize the protection from the downside, right? Every single day my whole life is centered around making my investors money. And that's the way that it has to be for this to work. In the last four or five years, real estate syndication has caught a really bad rep because yeah, the market, the interest rate tripled. You know, the market has taken an absolute dive. But a lot of, lot of, lot of unethical operators came, came out, right? And it would be the people who you just would not expect, right? The people who really, really talk the talk. Turns out that they were embezzling, turns out they were committing fraud.
- [43:10]
A
And here's, you know, we had, we had a guy down in San Antonio freaking Devin Elder. Like, yeah, he like out Christian guy through and through. Family, family man, like gave me a tour of his office, everything took me in his helicopter to go get barbecue. Like this guy, the guy was awesome him, you know, until all of a sudden he comes up, I think this last year. Yeah, he's going to prison. Wire fraud, dude. Like, it's, it's crazy. It really is really crazy. It's the people that you would not expect can you use a very well known name in San Antonio? And you know, he was on the freaking podcast and it's just like that one hurt, man. I was like, I never invested with him and I never talked about any of his investments. But I was just, just like, dad gum man. Like I felt like I was a good judge of character and for me to see that. And so what you're saying is true, like that dude, it's rough. We're seeing that happen more and more now.
- [44:08]
B
Absolutely. And it's because people just, they get taught the wrong fundamentals, man. At the end of the day, we're here. You have to be in this business to make other people money if you're going to raise money. The only reason you raise money is to make other people money. So if you're not doing deals that are going to yield a return that's sufficient enough for an investor return, just don't do the deal.
- [44:26]
A
And for the love of the God, do not commingle funds. That's what he did. That's what everyone's doing. That's what everyone that's going down. That's what they're doing is that they're either doing wire fraud or they're doing like illegal, immoral use of investor funds. So they're saying, hey, like you know, raise, come over here, raise for this fund. We're doing this over here. Here's where your money's going. And then really in, in business A, really they're taking the money and they're using it for business B, or they're using it to go, you know, help with the lease of their office building or they're using it for their storage facility. Like they're commingling investor funds. That is so illegal. That is so wrong. You cannot do that. If somebody is investing in your self storage deal, you cannot take that capital and use it in your triple net lease facility. You can't do that. And people are doing that every day.
- [45:14]
B
Yeah.
- [45:15]
A
Crazy.
- [45:16]
B
Yeah. And you want to definitely talk to your legal team to set up your bank account structure. Like, you know, our legal team always advises us to have a deposits account that we receive investor capital in and then have an expense account and an in an income account. And you know, all these things are things.
- [45:30]
A
There's so much software now too that helps with that.
- [45:32]
B
There is, yeah. And you know, this is all stuff we break down at capital raising office hours. We have a whole system for this. But you know, every single, for me and my investors, every single month we post the ledger and we've had investors ask us for the supporting documents for every single line item and we have those on file. So we have the ledger, we have the line items. Because here's the thing, man, if one of my deals goes south, it's because of the market. That's how I live. It's because the market, it's something that's out of my control. That's the only reason that one of my projects was.
- [46:01]
A
Will fail. I think that you really said it well though, that you have the ledgers on demand if somebody asks. Because you have two different types of investors. You have the super analytical on your ass investor that, you know, invested a hundred grand, but they're like a doctor, they, they're analytical, man. Shout out to all my medical professionals listening to this. But yeah, man, they're super analytical or lawyers obviously, super analytical and they want to see it. You need to, you need to have your documents prepared, prepared for that. Those people like, so prepare for the bet. Worst hope for the best. And then you have the investor like me, who now I've been burned recently and I'm just the guy that's just like, I trust you take my money. But I invested 150 grand. I won't go into too much detail because I don't want to air them out too bad, but I invested 150 grand into a business. And yeah, both of them were just like, oh yeah, you know, we're just going to passively operate this. And man, life is so different, difficult, you know, with all this stuff that I've got going on in my, in my job and then also running this business. I'm like, hi, hey, it's me, the guy that gave you $150,000, kind of your fiduciary duty to not work a job and perhaps be the freaking CEO and CEO of the company that we gave you money to run. Kind of pissed.
- [47:25]
B
Yeah, that's absolutely correct, man. It doesn't matter. It doesn't matter. Like, and I hate to say it,
- [47:30]
A
it like I had to learn. I had to learn I wasn't underwriting these people for operations as I should have.
- [47:37]
B
I mean some, some things sadly get learned the hard way, but they're permanent, very deep lessons. But yeah, if you, if you're going to take on investor money, that's got to be your sole purpose is to maximize their return. Period.
- [47:47]
A
Case, not your side hustle.
- [47:49]
B
Yeah. And, and the other thing is like for the financials and stuff, you owe that to them a hundred percent. If someone asks if Any of my investors asked me today for the. To see the books. I owe that to.
- [48:00]
A
To them. Yeah.
- [48:00]
B
You know, and believe it or not, in my ppm, it says that I. It says all I have to do is a monthly. Sorry, a quarterly update. But mine are live, man. You know, like, I feel obligated to let people know what their money. Where it is, you know, and that's the way that we teach people to. Because raising capital is the easy part. Making them money is the most important and most difficult part, and also the communication and the trust that you build during that process. I did three syndications last year, and I had people invest in syndication one, two, and three before I even had permits to build, number one, because of the way that I communicated to them. Right. I already started getting referrals from people before I. Even. Before I even delivered a return because of the transparency. Because when things went wrong. Because believe me, in every single deal I've ever done, something has gone wrong.
- [48:51]
A
Like, it's. It's a guarantee.
- [48:53]
B
It's absolutely. And when I say wrong, it's not like the world's going to explode. It's like, you didn't get permits on time. The city made you do more stuff you didn't get.
- [49:01]
A
The deal is always going to be worse than you think it's going to. To be. Usually always worse. It's always worse. I haven't walked into a deal ever where it's like, oh, wow, everything's better than I expected. Never?
- [49:11]
B
No, never.
- [49:13]
A
It's like, oh, like Lisa, the office manager just had a heart attack and died.
- [49:18]
B
Yeah.
- [49:19]
A
Week one, you're like, huh, okay, anybody know cpr? Like, what? And so it's stuff like that you can't underwrite for, man. And it's just like, it's. It's so crazy. So to put that one on the bumper sticker, it's like, if you're raising capital, like, treat it very, very, very seriously. Very seriously, because this is your shot to, like, build your credibility. And if you mess this up, like, these are investors that are never coming back to you. And your, Your track record, it's. It's a big little world, man. And it's like, if you've screwed people over, you're not going to get that back. So you got really? What, like, measure 10 times CO wants here.
- [49:58]
B
Absolutely.
- [49:59]
A
And that's where the team comes, because again, and I'll put that with a comma. And some deals won't work, comma. And some deals won't work. So how many people do you know that the market is completely wiping them out right now?
- [50:13]
B
Tons, tons.
- [50:14]
A
Good operators. We're not even talking about the. The sleazy, fraudulent people. We're talking about good operators, good men, good women, good teams, good deals. Deals can't refinance their bridge debt. And they are proactive with their communication. They are fast and frequent with their communication. They're telling you exactly what's going on. Hey, we have to raise this additional tranche because we, like, they're telling us we're going to have to bring another million bucks of equity to the table. It is what it is. This is what we got to do. Here's what we're doing to fix it. We're probably going to lose money. Money here. I'll take that 10 times out of 10 over somebody that does what. What happens most of the time? Ghost, Ghost or no contact.
- [50:57]
B
Hey, we didn't tell you for a year that we have this problem. And now we need all of you to fork over ten grand each capital call.
- [51:05]
A
Correct. And so I would say the closing piece of advice to give to people is tell your investors when things are going wrong, don't just update them on all the ways that you're winning. Update. Your update should look like this. And I want you to like, like, hit this really hard, is tell your investors, here's what we've done, right? Here's the good news, here's the market. Market's appreciating. Rent growth is going great. Bad news is we're working on this issue, this issue and this issue. Here's what came up. Here's how we're working to solve it. You guys have nothing to worry about. And at the end, you know, another win. Just do a little sandwich.
- [51:42]
B
Sandwich. Yeah, yeah.
- [51:43]
A
Like, what's been your experience?
- [51:44]
B
That's absolutely. That's absolutely right. But like, anytime that I'm concerned about something, something, I say it right away. Like right now, in one of my projects, I was supposed to have permits at month eight. I'm going on month 11. I'm probably not going to get them till month 13. But at month six, I was already telling them, yeah, permits are going slow on this one, guys. I'm concerned about it. But what happens is, it's a beautiful thing is I over. I tend to over catastrophize things within the sandwich because you want to do good, bad. Because if you just shove bad down people's throat, it makes them emotional, makes them, you know, act irrationally sometimes. But I tell people the truth.
- [52:18]
A
Truth.
- [52:18]
B
I always Give I. There's always tons. There's always more wins than, than, than things that go bad. But then when you solve the problem, like you know you're going to, you look like the hero. Yeah, it's, it's so amazing.
- [52:30]
A
There's, there's a psychological principle to it. I don't know the name for it but, or the label for it. But it's especially in like five star hotels. What makes a five star hotel isn't a lack of problems, it's how they respond to problems. It's how fast they respond to problems too. So it's the, it's the quality and it's the speed that they solve the problem. Like how well did they solve the problem? How fast solve the problem. That's what your investors want to see. And also when you're raising, talk about that, say, hey, here's a project I did before, or here's something I ran into before with some of my own own investments, with my own money. This happened and then this was super wrong. I under, I did not underwrite it correctly. And then I fixed it here, here, here. And this is what I learned from it. Cool. I'll take that all day. Because if you show me somebody that's raising capital that has never had a loss or never had a blemish or a scar, I'm like, dude, you're just doing this on AI. Like you're not real, dude.
- [53:23]
B
Yeah, like, so I, it's an expectation. I'll give you a real life example. So I did a webinar once with a CO GP with 38 investors on there. And the, one of the, one of the questions. So it was a, it was a 30 minute pitch and then 30 minutes of questions ended up being. 30 minutes of questions and 20 minutes of that, 15 or 20 minutes of that was literally me talking about failures and how we responded to them, things that have gone wrong. Because that's what someone asked, what could go wrong. And I literally spent 15 minutes minutes going back and forth and talk. Well, what would happen if this and what would happen if that. Out of those 38 people, 29 of them signed the, signed up the form with expressed interest to, to invest.
- [54:00]
A
That's crazy.
- [54:01]
B
And I spent most of it talking about stuff that went wrong.
- [54:04]
A
Yeah, you know, well, I mean that's just proof of concept right there.
- [54:07]
B
You just exemplify you, you exemplify your ability to solve problems by talking about them when you hide them. That's dishonest.
- [54:13]
A
Correct. So to put that one on the bumper Sticker. When things are going wrong, increase your communication, don't decrease it. Actually send two emails per month instead of the one that you're used to. Just, I think a good rule of thumb is when shit's going sideways and shit's hitting the fan, just double your communication cadence. If it's bi weekly, do it weekly. If it's once a month, do it twice a month. Yeah, like, if it's weekly, do two a week. Like, if it's weekly, you're like, you'll probably be fine. But in closing here, man, like, so somebody's listening to this, watching of this and they're like, okay, cool. Like, I just got some game from this. You know, you guys have mentioned aac, which is Action Academy Community, by the way. We had a remove AA because we didn't want people thinking that there were alcoholics in the group. But so it's AAC or Action Academy and we. You help people raise capital in the group. So can you talk a little bit about Action Academy and kind of your experience in it for somebody that's watching this or listening to this and they're kind of on the fence about it?
- [55:05]
B
Yeah, absolutely. I mean, Action Academy is magical, guys. We're helping people. Every single Wednesday, we do a capital raising office hours. I've gotten on investor webinars for people. I've gotten on investor calls with people. You get really live feedback. You know, I paid consultants tens of thousands of dollars for what I do for now included in the membership. You know, so it's one of the most gratifying things for me. But I would say, hey, if you're on the fence, one thing that I'll say is my. My real estate career absolutely took off when I joined the community. When I joined Action Academy, people have raised millions of dollars, hundreds of millions of dollars worth of transactions done in that community. Community now.
- [55:45]
A
And it's gonna be over a billion now.
- [55:48]
B
Yeah. Gross transactions. Yeah. Over a billion bucks. That's so nuts. That's so crazy. We're so awesome. But just imagine like a family of people that are going through exactly what you're going through and want you to win just unconditionally.
- [56:04]
A
Yeah, that's exactly.
- [56:05]
B
That's the best way to describe it.
- [56:06]
A
Yeah. I mean, me and Adika sit here and talk about like the capital raising calls or all the asset calls or small business calls or mobile home calls or land flipping calls, but at the end of the day, the number one thing that come to us and say is like, dude, the quality of people in here. Like, the people I met. I've met my best friends, met my business partners. Like, we got someone for our wives to hang out with. Our wives are friends or kids are friends. It's. It's a really cool spot, man. So in closing, if people want to invest with you and they're like, man, I want to actually invest with the deet. I want to see if that's possible. Or they want to just follow along with you, where can they find out more about you?
- [56:39]
B
Yeah, just House Bender on Instagram. Like House Bender. Like Air Bender, but House Bender. Shoot me a DM if my deals aren't good match for you. We have tons of amazing, amazing operators in Action Academy, and I pass investors along all the time.
- [56:53]
A
Beautiful. So, guys, that's Brian and Adit Goat. We'll have him in the show description. You can go check him out on Facebook, on Instagram, shoot him a message if you want to possibly invest with him. And as always, we have actionacademy.com for anybody that's interested in membership. We have 600 active members. Almost a billion, I think. Yeah. Over a billion dollars in acquisition done. $428 million in 2025 alone. Hotel, if you guys want to be a part of that, you want to be a part of that statistic. Actionacademy.com or you can go in the link in the description. It's always right there. Thanks so much. And send this to somebody that's looking to raise million bucks in 90 days.