172. REAL DEAL: 60 Acres, 6 Units, $0 Down

Summary

Podcast Summary: Real Estate Investing School Podcast

Episode 172: REAL DEAL: 60 Acres, 6 Units, $0 Down

Host: Brody Fawcett
Guest: McCrae Hepler
Date: July 4, 2024

---

Brief Overview

This episode of the "Real Estate Investing School Podcast" dives deep into a creative, multifaceted real estate deal pulled off by guest McCrae Hepler. The focus is on how McCrae acquired a six-unit multifamily property (sixplex), 60 acres of land, and an additional half-acre downtown lot in St. George, Utah—using a mix of creative financing, strategic networking, and collaborative partnerships. Brody and McCrae break down each stage of the deal, offering actionable insights for listeners who want to replicate similar successes in real estate investing, even if they have limited capital to start with.

---

Key Discussion Points & Insights

1. Deal Overview [02:49]

• Asset Package:
  • Sixplex (six 2-bed, 1-bath townhome units)
  • 60 acres of land with water shares in Cedar Canyon
  • Additional half-acre lot two parcels down from the sixplex
• Location: Downtown St. George, Utah, just off Main Street and Trailblazer Blvd.
• Acquisition Date: 2019 (before the post-2020 real estate spike)
• Initial Deal Source: Off-market, referral via a hustling local agent, Peyton Fisher.

2. Deal Genesis & Networking [05:00-06:13, 15:25-16:30]

• McCrae was regularly telling realtors he is an investor, leading to deal opportunities.
• The seller was planning to leave for a mission in Hawaii, motivating him to bundle properties and solve title issues, seeking an easy close.

Quote:
"If you network and you let people know and you're always constantly talking to people... things like that will ultimately fall into your lap."
— McCrae, [15:25]

3. Asset & Structure Details [07:02-08:04]

• Sixplex:
  • Purchase price: $750,000
  • Unit size: ~750 sq ft each, 2 bed/1 bath, all with carports
• Half-Acre Lot:
  • Purchase price: $115,000
  • Zoning: Not immediately eligible for multifamily; potential foreseen with future city planning.
• 60 Acres in Cedar Canyon:
  • Effectively acquired for $0 by helping the seller resolve title issues; nominal contract for $1,000.
  • Value mainly in water shares; not all land is developable.

4. Financing & Partnership Structure [08:17, 23:00-29:11]

• Initial Financing:
  • Commercial loan from State Bank of Southern Utah for sixplex and half-acre lot.
  • 25% Down Payment: Majority provided by a third partner needing to park capital.
  • 3-person partnership via LLC: Equity split after refinancing at 36% (money partner) / 32% (McCrae) / 32% (other partner).

Creative Additions:

• 60 acres and water shares essentially acquired for free as a bonus for solving the seller’s title issues.

• Refinancing & Exit:

  • After 1 year: Renovated several units ($8-10k per unit), then refinanced into six individual residential loans (each unit/tax ID).
  • Allowed flexibility for future sales/refis and better rates; increased property value (~$925,000 a year later).
  • Sold half-acre lot for $260,000 (bought for $115,000), netting ~$150,000 profit.

Quote:
"We brought in a partner with most of the money, then in a year, we refinanced out and paid him back...so we didn't really have to come in with much money either."
— McCrae, [11:33]

5. Operational Details & Cash Flow [11:33, 31:24]

• Current Financials:
  • Sixplex rents: $1,200-$1,250 per unit ($4,800-5,000 monthly gross)
  • Property value nearly doubled since purchase.
  • One partner manages and maintains the property, making it hands-off for others.
  • Still holds the 60 acres; half-acre lot was sold to a friend who built a house.

6. Networking & Relationship Strategies [16:09-22:57]

• Active networking, even beyond title company connections—reach out to agents, mortgage lenders, builders, other investors.
• Using community outreach (e.g., McCrae's local video series "What's Happening in Southern Utah") to build reputation and opportunities.
• Brody emphasizes the importance of small, intentional relationship-building tasks over time.

Quote:
"Friendships, relationships, that’s what it's all about... if you're just always thinking about ways you can do that, there's always opportunities."
— McCrae, [22:17]

7. Lessons, Creativity, and Cautions [32:56]

• Get creative—but always do it correctly, legally, and ethically.
• Use experienced advisors (title experts, lenders, etc.) and structure deals so every partner's interests and logistics are handled.

Quote:
"Get creative, but just make sure you're doing it the right way... Surrounding yourself with people that know what they're doing."
— McCrae, [32:56]

---

Notable Quotes & Memorable Moments

• On Deal Simplicity:
  "At face value, it sounds really complicated... but honestly, that's how most real estate deals... come across." — Brody, [10:34]
• On Networking Importance:
  "It's all about the relationships." — McCrae, [16:09]
• On Partnering Smart:
  "He had money that he wanted to park... we told him, let's just you come in with the majority of the money, we'll come in with a little bit, and in a year, we're going to refinance." — McCrae, [11:33]
• On Creative Acquisition:
  "The 60 acres we actually got for free, because I helped him fix the title issue." — McCrae, [09:22]

---

Timestamps for Important Segments

• [02:49] – McCrae introduces the deal: sixplex, half-acre, 60 acres
• [07:02] – Asset details, zoning, and water shares
• [08:17] – Purchase price breakdown, loan structure
• [11:33] – Rent roll, partnership structure, and creative financing explained
• [13:21] – Status of 60 acres and half-acre (sale and profits)
• [15:25] – Networking and relationship strategies
• [22:17] – Community engagement and networking via social content
• [23:00] – Detailed financing tactics with loans and refis
• [27:01] – Down payment, ownership splits, and LLC structure
• [30:03] – Brody relates to project planning and importance of tax IDs for future flexibility
• [31:24] – Current property management and cash flow outcomes
• [32:56] – Final advice: Creativity must be accompanied by sound structuring and expertise

---

Final Takeaways

• Strong networking and creative problem-solving are essential to finding and structuring deals.
• Bringing in capital partners can enable larger acquisitions with minimal personal investment, if you know how to structure win-win partnerships.
• Smart financing (switching to individual loans, holding/selling assets as market changes) adds flexibility and value.
• Community involvement and "value-first" networking keep deal flow strong.
• Always do your creative deals the right way—using competent legal and title advice.

---

Actionable Advice:

If you want to find unique deals and expand your portfolio, start by telling everyone in your community—especially realtors and lenders—that you’re an investor, and consistently offer value in return. Layer in creative structuring and partnerships, and always anchor your deals with rock-solid paperwork and professional advice.

Episode Summary by [AI Podcast Summarizer].

Transcript

[A]

What's up, everybody? Welcome back to another episode of the Real Estate Investing school podcast. This is a real Deal series today and I'm your host, Brody Fawcett. Excited to dive into one deal. We're going to keep it really simple so you can learn the ins and outs of it. And we have an awesome guest that's coming on to tell us about a real deal that he did. And I'd like to welcome McCrae Hepler to the. To the house. What's up, McRae?

[B]

Thanks, man. Just hanging out. Thanks for having me on. Appreciate it.

[A]

Yeah, just hanging out, waiting for kid number number two. Any day now.

[B]

That's right. Yep. Two week countdown.

[A]

Yeah. Number. Number number two, girl. I'm like, I got you there, dude. Me and you the girl, dad.

[B]

That's right.

[A]

I used to. I used to be like, oh, man, I. I wish I would have had a boy. And I mean, we're not done yet. There's. There's still hope, but I think that after having girls, it's just. Just meant to be.

[B]

I agree. I. I wanted a boy first and then I can't imagine even having a boy at this point. Like, she's so amazing. But I. We're not done yet either, I don't think. At least that's the plan. And so number three, I think has a good chance of being a boy.

[A]

There you go, dude.

[B]

And if not. If not, I'll just. I'll rep that girl that hard and I'll get them to all play golf. That's my plan.

[A]

I knew there was going to be some sort of sport that was coming into this just because we're talking to you. So you already got it planned out. I knew it. Well, dude, excited to jump into this with you. And this is cool because you and I talk a lot of real estate, just in general, and you actually own a title company and you actually just gave me like a legit homie hookup with somebody to buy a property that I was selling that was. Was huge. So, I mean, obviously thank you for that and you made me a lot of money, which I'm grateful for. But this deal, we haven't. Wait, wait, say that again.

[B]

That. Happy to be a part of that.

[A]

Okay. I thought you were asking what I was gonna buy you. What kind of car or formula or something. You deserve it. You deserve it. But, but yeah, this deal we actually haven't talked about or jammed on a ton, which I kind of like. And so, yeah, let's. Let's jump into it first. Just Give us the quick 10, 20, 30,000 foot view overview of, of what this deal is that we're going to dive into. How you found it, how you funded it, how you forced it so that people can learn and go and replicate and do do a deal like this. And this one's interesting because it is multifamily as well. So let's dive into it.

[B]

Yeah, yeah. So this one is a six flex that I bought in downtown St. George, just right off Main street and Trailblazer boulevard, which is 300 South. So it's just a few blocks south of like downtown town Square in St. George. And this was in 2019. And so it was before the rise, which, which we lucked out on. I wish I'd have bought more prior to the 2020, the 2020 shoot up, but 2019, we. I was actually, I'd bought a few single family homes at that point. I hadn't bought anything multifamily, but it was a huge goal of mine. And one thing I always tell realtors here that I'm talking to, you know, as a title company, I'm like, hey, I'm an investor too, so if you ever come across anything like, let me know because I'm a buyer as well. And I had this one agent, his name was Peyton Fisher, and he was a dialer man. Like, he was, he. He would not stop talk calling people all day long. So anybody that was even remotely interested in selling real estate, that dude was talking to him and, and one day he, he calls me, he's like, hey, I've got this guy. He's looking at selling something and. But he has these issues, these issues on title on a Cedar property and he wants to sell everything together. He didn't give any details. He just gave me that. He's like, do you care if I have him call you? And I was like, yeah, it's totally fine. So the guy calls me and he's like, hey, yeah. He's like, I'm actually, he's like, I have a six flex downtown St. George, and I really want to sell it because I'm. I'm going on a mission to Hawaii and I really just don't, I don't want to deal with it anymore. But I've got this land in Cedar and there's some title issues and I really want to get that wrapped up because whoever I sell the sixplex to, I'll just, I'll just sell the Cedar acreage too. And I was like, okay. So I was like, so it's not Listed yet, right? And he's like, no. And I'm like, okay, well, he's like, we do have an offer, but if it. He's like, but it's not. We haven't. We haven't signed anything yet. So I said, okay, well, let me know if. Let me know if, if it falls through because I'm definitely interested. So luckily, a few days later, Peyton calls me. He's like, hey, you still interested? And I was like, heck yeah. So we just. Before I get into like the funding part and all that, we went and looked at it. Guy was like, yeah, this. It was perfect little setup. He's like, yeah, I actually also have a piece of land here next door, two parcels down that I've always thought about doing more units on, but the city wouldn't let me. He's like, I'll include that in the cell as well. So I was like, oh, man. So this is a six plex. It's another half acre, two parcels down. Basically the same layout as our. The current sixplex. That's what would be replicated. And then it was. And I found out it was 60 acres up Cedar Canyon, like about 10 minutes, 10, 12 minutes up the canyon. And so I was like, I. I've got to make this happen. At the time, I couldn't make it happen by myself financially. And so I got. Me and my buddy were talking that we had been talking about investing together.

[A]

Yeah, I'm gonna. I wanna pause you. Can I pause you for a second?

[B]

Yeah.

[A]

This is so good. Cause there's so many good things. I just wanna make sure people aren't missing any of it.

[B]

Where to stop or what?

[A]

No, it's good, dude, you don't even need me. We'll just. I mean, I'm. Yeah. People wann you anyways, that's why you're here. So. So just to. To kind of get some clarification. So did you buy. You bought a six plex in St. George, Utah. Sloan, Utah. So just for. To get some clarification, did you. Is this. Did you buy the 6 Plex and did you also buy the land?

[B]

Yes. Yeah.

[A]

Okay, cool.

[B]

We bought it all.

[A]

Awesome. So I wanted to get that. Get that out of the way. So that's sweet. And then just kind of backing up before you get into it. Maybe just tell me, Tell me quick. So six flex plus how many acres was it?

[B]

60 acres in Cedar Canyon. 60 acres in the Canyon and then a half acre. Just two. Two parcels down from our sixplex in downtown St. George.

[A]

Okay. And a Half acre. Wow. Cool. So. So three was, it was the 60 acres. One tax ID.

[B]

It is. No, it's. I think it's a total of three if I remember right. I can't remember off the top.

[A]

Cool. So even better, it came with two.

[B]

Good water shares too. So.

[A]

Wow, sweet. Okay, so we'll get into all this and we'll, we'll dive into the details. But what did you. What was the purchase price?

[B]

The purchase price for the sixplex was 750. There it's a, it's two bed, one bath, about seven, 7:25. 750 square feet in each with a carport and all. All townhomes and that was 750. And then.

[A]

So you bought them all from him, but you did it. They were separate transactions.

[B]

No, it actually ended up being one we actually did. It was a six plex. We did a commercial loan through State bank of Southern Utah.

[A]

Okay.

[B]

Because that was going to be the easiest way that we could get it financed quickly. We actually did end up down the road once we. Because the way we set it up was we had three partners on it and we initially bought it with one. One commercial loan. And then once we, once we paid back one of the partners or I'll get into that a little bit, a little bit later. But ended up being six individual loans. But initially took it down with, with the. Yeah, one commercial loan. And we included this. The, we included the half acre with it. The 60 acres we actually got for free. So. Because I helped him fix the title issue and so use the sales price of the, of the sixplex to 749 and then made a contract for a thousand bucks for the land. But essentially he's like I'll just throw it in along with the water shares. And so we, we got that. But then the sixplex and the half acre were on a loan. We got the half acre for 115.

[A]

Okay. So it was a total on top of the 750.

[B]

Top of the 750.

[A]

Yeah.

[B]

So it was 865 total. Wow.

[A]

Okay. And was that just out of curiosity, that half acre lot, what was that zoned?

[B]

So the zoning was a little strange and that's why we bought it. And we wanted to do another sixplex on it. But it wasn't zoned properly for multifamily. It was zoned the. The. When I went to the city manager and talked to him, he basically said that it was like no go for anything other than potentially two like two side by side units. But. But they were Going through a downtown plan change and all this stuff. And so we were like, let's just buy it and worst case scenario, we'll just sell it if we don't want to do anything on it. But we felt like for 115 for a half acre downtown, we felt like we couldn't really go wrong.

[A]

Yeah. Yeah. It's still. Even if it was zoned for a single family house, that's still an amazing deal on a lot.

[B]

Exactly. Yeah.

[A]

Cool.

[B]

Okay.

[A]

Okay. So. So this is so good because there's just. There's a lot to dive into here, and I want people to. To stick around through this because there's so much to learn on a deal that, like, at face value, it sounds really complicated. Right. It's like there's this other property they owned over here and like. Like, it's not just a six. And then he had this other lot and I. There were title issues, and we bought this. We got this for free. Right. So I think unpacking that is really good because, Dude. But like. But honestly, that's how most real estate deals. Like, that's how they come across. You know, like every single time we do one of these episodes or. Or even if I do a solo, I'm like, oh, I'm going to talk about this deal. It was so simple and easy. And then the more we dive into it, you realize, like, the theory of it is easy and simple, but you didn't realize all these little things that went into it. So this will be fun to unpack with. With right now. Maybe just fast forward and we'll fill in the gaps. Do you still own all of that? And what do you rent the sixplex out for?

[B]

Yeah, so the sixplex we still own, and we rent those out each for between 1200 and 1250. We started. So what happened was. And the way we did it, we had three partners. Two of us. The two of us brought in the third that he came in with most of the money. It was around. It was around 200,000, 230 that we had to come in with. And the way we set it up was we told him because he had. He had money that he wanted to park. So we told him, let's just. You come in with the majority of the money. We'll come in with a little bit of money. And then in a year, we're going to refinance into six individual loans. And at that point, because we were going to. We renovated some of the buildings, some of the units, and then after a year, we would Pay him back a portion of what he had or we would, we would even out the equity based on a 36, 32, 32 split. But long story short, essentially he came in with most of the money and then when we refinanced that, we made some shifts there to, to accommodate him. So we actually, me and my partner didn't really have to come in with a whole lot of money to the deal either, which was nice.

[A]

I want to dive into that because that's. Yeah. Like the way you structure that is obviously an experienced, inexperienced move, which I think a lot of people can learn from. But all said and done, you. You have this sixplex that you rent out for 4800 bucks roughly. Or 1200 bucks each unit. Roughly 12 to 1250 each unit. Um, and then you have. What did you do with the land, the 60 acres? Did you sell that?

[B]

We still have that. We haven't done anything. We thought about getting a value on it. Mostly the water shares. It's, it's not all developable land. It's actually like if you're familiar with Cedar Canyon, which I think you are, when you go, go up, it opens up and there's like a two lane. It's like the first like two lane it and it opens up. There's like a river and whatnot on the left hand side and. Yeah, really, that's pretty much it. And on both sides, it's the water that's really valuable.

[A]

Yeah.

[B]

But we, we just haven't, haven't done anything with it. And then the Sig, the, the, the half acre, what we wanted to do is we wanted to replicate the six bucks that we had. We were told we couldn't and so we ended up, we ended up having a buyer come and bought it for 260, I think it was about a year, year and a half later. So we bought it for 115, sold it for 260.

[A]

Okay, cool.

[B]

And then ended up in the hands of my good friend Chris Connors actually, who's. He's the farmstead bakery owner. If you've been to farmstead here.

[A]

Yeah, it's amazing.

[B]

He built his house on it, so I'm stoked that it ended up in his hands.

[A]

That's awesome, dude. So cool. So, so you sold that one, you made you know, whatever 150 grand. Ish. Maybe less after like realtor fees and whatnot. So. So now I just want to unpack it and let's dive into the financing of it because I think it's important for People to understand and see, like, what happened with this thing. Fast forward at the end and kind of like, like where it's all at and if it's cash flowing, if you're making money and, and you know, obviously what kind of money went into it to acquire something like this. But before we kind of get there, you touched on, like, how you found it. Right? And I think this is easy for people to be like, okay, so I have to own a title company. And once I do that, if people call in, they need help fixing a title on a property, then I'll let them know, like, hey, I'm also an investor and maybe I'll buy this. Is that the. Is that the. Is that the process?

[B]

No, no, the reality network. Just, if you network and you let people know and you're always constantly talking to people, stuff like that, whether you own a title company or not, it. Things like that will ultimately, I guess I shouldn't say, fall into your lap. It kind of did for me in that one. But things will fall if. If you're. If you're talking to the right people and you're just always on that with that mindset to Network 100.

[A]

And I. Do you remember what you said to me when I. This was just like two days ago. I was like, no, seriously, thanks for, thanks for like, connecting me with this, this guy. And do you remember, like, your response?

[B]

Yeah, it's all about the relationships.

[A]

Yeah, yeah, it's all about the relationship. So I'm like, dude, it's. It's so true. And obviously you, you, you live and breathe that. But. And then this is another example of that and how you do that. So I think that's so cool. But it's important to just touch on how you said everyone you come and talk to come in contact with you. Like, hey, I'm also an investor. You know, I'm also an investor. And you mentioned this. This guy, which I think is important for people that are listening. Like, you know, we hear all these stories and I think of, like, my buddy Brandon Turner. Like, his first, you know, multifamily deal that he bought was someone at his church. And he said, like, hey, this is what I do. I'm a real estate investor. And I'm, you know, even though he hadn't bought any multifamily properties, he just was kind of, hey, this is what I do. And like, oh, we have something that we, you know, we might be interested in selling. And that's how he got apartment complex from them. And so I love that. Just stepping into that, telling people what you're doing. But. But then above and beyond that, you mentioned something about this, this agent who was like a hustler and like anyone who was remotely thinking about selling something, he knew about it and he was all over it. Right. I think a lot of people hear that and then they're like, well, yeah, well, if he's hustling so hard, then why doesn't he just keep the deals for himself? So what are your thoughts on that?

[B]

A lot of times there it's not. You can't. They can't take every single deal. Obviously they want to take every single deal, but maybe for them, you know, if they've got other deals in the works or if they're short on cash at the moment, or one reason or another, a lot of agents are focused, especially agents, you know, focused on helping people buy and sell and they want to buy as much as they can, but the reality is that they can't every single deal. Right.

[A]

Most of them don't. The reality is most realist, for some reason, people think real estate agent is a real estate investor. And it's. Some of them are, but majority are not. It's a job, right? Like, you sell a house and you get paid. And that's. Sometimes I just like, hey, I'd rather just sell the house and get paid. Yeah, yeah. So, so cool, dude. And I think it's cool you go and find those people that are willing to do that. So that's how you found it. I love just touching on that because anybody can go and do that. You don't have to have a title company. Like, you can go set those relationships and go set that out there really quick. What advice would you have for somebody that's like, hey, I want to maybe build some more relationships or network a little bit better in, in terms of letting people know, hey, I'm a real estate investor and I'm interested in buying real estate deals. Any, any advice you have with that?

[B]

Yeah, I mean, I would, I would network with real estate agents, mortgage lenders, you know, private money lenders, developers, builders, just everybody in the real estate community. I would try to meet as many as you possibly can and just let them know. There's always. There's a couple of groups here, real estate investing groups that meet every once in a while. But if you just, if you, Once you get into the community, it's pretty easy, like wherever you're at, to network around and figure out who's doing what. And once you, once you get into it, the doors just keep, keep opening up.

[A]

So for a lot of people that are listening to this and they want to know like, hey, what's the, aside from, you know, starting my own title company and going that route in order to network, what would you say is your best piece of advice when it comes to networking or people just. Yeah. Wanting to increase those relationships so that they can do more deals down the road?

[B]

Yeah. So I would just. The first focus is just connecting and networking with the business or with the real estate community. So realtors, mortgage lenders, private money lenders, builders, developers, that whole crowd, there's so many ways that you can find them. Whether it's on Instagram or Facebook or it's with listings, you know, you can call on listings. There's so many easy ways to connect with that crowd. Along with just a lot of, a lot of cities, like we've got one here, there's a couple different real estate investing groups that are here in town and it's just a matter of picking up the phone or getting on social media and just making it happen. So.

[A]

Yeah, no, that's great, great advice, dude. So basically what you're saying is there's no excuses.

[B]

No.

[A]

And it's, it's interesting too. It just, it's all the, it's usually those little things that people overlook and they're like, I mean, you have a sales background, right? I have a sales back. We both, we actually worked for the same company at one point doing door to door sales. How many times would it would a newer sales rep come in and they'd shadow you or something and they're like, oh, I wish I would have knocked on that door. That was like the easiest sale. That would have been mine. And then what they don't understand is like they would have blown it a long time ago. It was like the little things that you did along the way that seemed so easy. Oh yeah. It's just funny looking at that and then relating it to this where it's like people would be like, oh well that's nice. You just talk to the right person. Where I think like with this specifically, it's, it's all those little things that led up to it. You know, the fact that you were doing, you know, the networking and telling everybody, hey, I'm an investor, this is what I do as well. If you're interested, you know, in selling this, I might be able to help you out, yada yada. And you, you even too, like, this is just complete, you know, side note, but like one thing you do that's completely costs you money. I know because you pay a videographer or someone to fly the drone and edit and do all that stuff. But you do like a. What's happening in Southern Utah? Is that what it's called? Yeah, just these videos that you publish. And like, dude, I'm sure that is. Has gotten you so many network opportunities because you're. People want. That are opening up a business or that are. They're doing a new development. They want you to come and like talk about it because people are going to see it, know about it and then for you, you just get all these opportunities because people know you as the person that knows what's going on. And I've helped you a ton and I'm sure people could go do that in their own town if they wanted to.

[B]

Yeah, yeah. No, it's been. That's been like the ultimate network builder. Does videos and yeah, when you're, when you're talking to people about filming their, their business or development, they're not going to say no. So yeah, like the perfect, you know, startup conversation and then you just go from there. And like I said, you know, friendships, relationships, like that's. That' what it's all about. And even outside the real estate community, even if you're talking to within the business community, there's people that need to buy and sell real estate. And if you're just always thinking about ways that you can do that, there's no. There's always opportunities.

[A]

Yeah, yeah, a hundred percent.

[B]

So.

[A]

Oh, good. Well, dude, on this deal, let. Let's just touch on really quick how you. I think we, we hit enough on how you forced it and got creative and really made it work. So let's just touch on the funding of it really quick and then we can wrap this one up. I think this is super interesting because I want to dive into more how you kind of split up the equity. But first you said that the first thing you did was get a commercial loan and that basically was like a portfolio loan with all of those properties included. So the land which was however many tax IDs, the half acre lot and then also the six plex were all wrapped into one loan.

[B]

The land and cedar we actually didn't include in the loan. So we made a. Made a contract for that separate and just made it worth a thousand bucks. Took it off the, took it a thousand bucks off the sixplex. Closed on that separately. And then so we put the loan, we put the, the half acre and the sixplex in the Commercial loan. And actually, I think technically, I think those were two separate loans now that I think about it. They were.

[A]

The first time around they were.

[B]

Yeah, the first time around they were. And then when we, we didn't, we didn't refi the half acre. We ended up just selling it. And so we just carried that for a little bit and then sold it. So it was the sixplex that we had that we did the commercial, its own loan commercially. And then ultimately we renovated everything, got it to, it was worth, I think when we refied it was worth 9.25, I want to say a year later, something like that.

[A]

And you put how much into it, fixing it up?

[B]

It wasn't that much. One of the units was already renovated and then we did like two or three units at that time. And I want to say we put like 8 to 10,000 in each, I think.

[A]

Okay.

[B]

And so we didn't really have to put in that a whole lot. Plus we made 150 on the, on the lot that we had sold.

[A]

Yeah. So this is, this is good. Like, I know it's, I know it's intricate and there's a lot of details, but like there, it's actually, this is probably why you guys did it, but keeping those separate versus all under one loan. Like I have, I've done commercial loans in the, in the past where. And I'm still, I'm still involved in them where I've had multiple tax IDs as part of the deal and it's a pain to get them to release pieces of it. Yeah, it's, it's just frustrating. Like then they can make promises and say like, hey, yeah, like once we get, you know, to this, this type of equity, then we'll release this other piece and. But at the end of the day they can do whatever they want because it's all tied together and they don't have to release, you know, any of it necessarily. So I. Yeah, yeah, I like that that's how it's done. Because if you would have sold it, it would have been a, a mess if it's mixed in with the other loan. And.

[B]

Yeah, yeah. And it was actually nice because the commercial loan that we did with State bank, it was like an internal committee that they had loan committee and it, it was the underwriting and everything was actually pretty, pretty smooth. Just because it wasn't like a Fannie Freddy situation, you know, conventional loan going through all the, all the, you know, conventional guidelines. It was just, it was an internal State bank of Southern Utah Loan committee. And it was honestly pretty smooth. But yeah, we did. We did keep those separate. And so then we were just. With the cash flows of the 6 Plex. We were just paying on the, the. The lot until we sold that and then that. So then we just had the sixplex loan. That was initially. I think it was 562. Let's see, 750. I think it was 562, I want to say. And, and like I said, our partner came in with the majority of the cash. I can't remember exactly the split of the.

[A]

What percent down did you put?

[B]

I think it was 25% down. 25%, yeah.

[A]

Yeah, it sounds about right. 6. You bought it for 750 and your loan was like 592 or something like that, you said.

[B]

I think it was. Yeah, it was somewhere around there. 750 times. 187. Yeah. 562. 500. So.

[A]

And how'd you, How'd you split up. Split that. That down payment up then? Because you said you had partners at this time.

[B]

Yeah.

[A]

Did they have ownership over the, the land in 60. Everything okay?

[B]

Yeah, yeah. So we just did. It was all one, just1.1 LLC that owned all three. All three properties. So our third partner, so it was me and my buddy, and then he. My buddy brought in his friend that just needed to park money somewhere or needed. Needed to put money somewhere to put it to work and was wanting to get into real estate, but he had never done real estate before, so it was kind of a big. Kind of a perfect mix. So I don't exactly how much he came in with versus us, but it was, it was mostly him. And then I think we ended up coming in with like 30 or 40,000 each. And essentially what we did was that we held. And so then the percentages ended up 36, 32. 32. So he owns 36%. We own 32 each. And. And in that way we, we used his money for that first year sitting in there, and then once we refinanced it, we were able to cash him back out some. And that's when we. That's when we turned it into six individual loans. And we did six loans because it ended up making more sense to do those. The rates that we got and the, the price of it ended up being better to go six individuals versus because they are six different tax ID numbers. So.

[A]

Yeah. Which is, which is huge. Like, what. That's so cool. Like, I'm. So I'm. I'm building a big project A big PD project that I'm doing right now and it's a long story but it's already been approved through, through city council once and it's going through to get approved again because it, it, I was missing a signature, something that I learned a big lesson on. So it has to go through the whole process again. And anyhow, through this process, like that's one of the options. That's it's, it's 16 like units but it's really 8 units if that makes sense. And so like they give each of those eight units has a, has like a mother in law studio. They call them ohana's. So that's what I've been saying that's they say in Hawaii is ohana, but it's a studio apartment.

[B]

Right.

[A]

A casita. That's the word I'm looking for. A casita. And so we have an option right now like to however we do it in the beginning, like it has to be, you know, the fireproof walls and there's like a couple of little things that are so easy to do but it gives you the ability to like later be able to sell it individually versus selling it as, you know, as one or even the whole project in general, you know, could be sold as an apartment complex. But we're going through that extra stage of getting it all approved just so that you have that option and it's just so cool. So I love that you did that. Cause you could even, you know, the financing like you said is better cuz on the residential side. But then you also have the option to sell some of them and keep some of the other ones, you know.

[B]

Right, yeah, no, it worked out. It worked out great. Worked out exactly. And at the time we were getting like 900 on rent roughly and. And it penciled then and now you know, four years later they're all between 12 and 1250. And the cool thing is we're still like one of the lowest in downtown price wise. And. And it's just like we just had one come up and it filled and within a few days and it's hard to find something for 1250 in downtown St. George. So um.

[A]

Yeah, so yeah.

[B]

And then my, our part one of the partners maintains like the yard and stuff. He's got a like a 13 year old boy and so he maintains all the yard and main, he manages all the tenants. So it's, it's hands off for me and Tyler, our other partner. And yeah, it's been, been really good. And the value of it is. Has Almost doubled since we bought it. So.

[A]

That's sweet. That's sweet. That's like all the. All the benefits of doing real estate right there. And I think that. Yeah, like, just to kind of recap on this one, you basically got creative on, you know, once you found the deal, you brought in some partners to take it down. One put in more money, but then eventually, like, you're able to get that money back out. And then it got up. It went up in. In value. You said almost doubled in equity or not in equity in value. And then on top of that, you also are cash flowing on it. Yeah, sounds like. So, yeah, sounds like a good one. All around the horn.

[B]

Oh, yeah.

[A]

Anything else? And. Oh, go ahead.

[B]

No, it's just. It was just one. One of the more fun ones I've done, for sure.

[A]

Anything else in closing that you would say, like, people that are listening to go and replicate something. Something similar to this or just in general, any pieces of advice for going and building wealth and freedom through real estate?

[B]

I mean, get creative, but just make sure you're doing it the right way, because I've seen people try to get creative the wrong ways. And without going into details, just make sure you're doing it the right way. Way for sure. There's a lot of. There's a lot of different ways to do it. And my. My investor hat and my title hat sometimes gets a little crossed because I. I think about a deal and I'm like, okay, I understand this from the investor side, but then the title side is more of, like, the logical side of, like, how this thing's gonna get closed. And there's so many different opportunities. But just make sure you're surrounded, Surrounding yourself with people that know what they're doing.

[A]

Why I surround myself with you, Dude, I have a question I don't know the answer to. I called the title expert. So, dude, thanks so much for. Thanks so much for coming on the show and sharing your. Your gems with this six flex.

[B]

Yeah, I appreciate it, man. Thanks for having me.

[A]

Thank you guys for tuning in. We'll catch you on the next.

[B]

RA.