Transcript
Auto-generated transcript. Not time-synced to the video.
Welcome everybody to Jewish Business
Secrets podcast. Very excited here to
bring you a very special guest. I have
here Ayal Mahab who was the owner of EM
Equity. They previously owned 5,000 real
estate units and they did an exit um
during the time of COVID for $400
million. They sold off most of their
portfolio. they still retain a lot of it
and now they're going into this new
venture which is EM equity which you
could see on his lovely cup and Al
welcome to the podcast. Thank you for
joining. Thank you. Thank you for having
me. So, uh, I just want to get maybe a
little bit about your story and really,
you know, the point of this podcast is
to is to inspire the next generation of
people of young entrepreneurs that are
looking to make it and to inspire them
of what could be, you know, could be
possible. So, why don't you tell me a
little bit about your story? How do you,
you didn't, you didn't come to $400
million of real estate overnight. Some
No. Right. Go ahead. Something happened
in between. So, why don't you tell us?
So I came to this country at age of 16
with a bag in my shoulder, no money,
nothing. Uh my my father my parents at
the time may the rest in peace. Uh my
father felt that uh I'll have a better
opportunity in this
country because it's very difficult to
make a living in
Israel. I did not speak English,
nothing, zero. I know. Hi, how are you?
That's
it. And uh I stayed with my uncle at the
time at the age of 16 in New York upper
west side. After 30 days sent me up to
Raja, New York. It's Yes
ishim. Uh basically I learn I stayed
there. I stayed for six months more or
less to uh finish my high school because
I did not finish my high school yet.
Now, keep in mind, I don't speak the
language, okay? I I have no friends. I'm
over there. Uh during the day, they have
biblical studies, right? From 9 to 12,
right? And then after 12, they have more
of some uh professional stuff, you know,
to uh non non non religious um studies,
right? Be math, okay? whatnot. Okay.
Mind you that Shakespeare Shakes I was
in Shakespeare class and obviously
that's what led you to your real estate.
Uh
so what what was what was your first you
know business? How did you get into real
estate? How did that So wait yeah if I
can finish my story every night I I go
upstairs and do every night for four
hours straight. Four hours straight.
four hours I would just listen to talk
radio in English and write words down.
That's how I learned the language. Wow.
Yeah. Wow. Uh yeah. Oh yeah. Oh yeah.
You know it's a for me failure is not an
option. I'm from Israel so I understand
but you can fail. You know failure is
like death right? We can fail. So at the
end of the day I um came back down to
New York. Okay. We had a I had a a store
called Tower Copy. We did copies three
cent copies to people for free few
years. I got married in New York and uh
I got involved in
commodities. I lost a lot of money over
there. I thought I can make killing did
not make it. And at the time my wife 35
years still going strong. She's like you
know what I don't like New York. It's
too cold. We got to make him move. I got
I got to change. I got I need Florida. I
don't like it here. She gets sick. Every
winter she get
sick, you know. She keep you know Jewish
Jewish woman, you know what they do
best, right?
I don't want to I don't want to say it.
They nag. It's okay. They still nagging
me. Okay. So, I want to
go I want South Florida. I want South
Florida. I want South Florida. At the
end of the day, I'm moved to South
Florida. And that's where the the magic
everything started here. Nice. So, tell
me about that magic. What was your how
did you how did you get into real
estate? How did you how did you fall
into it? What did your first deal look
like? What did Right. So we Right. So we
I took my um I realized that commodities
now not making money. I'm not going to
make a living from stacks or commodity.
I'm a failure on that. It's okay. You
know you don't make it in one thing can
try something else. It doesn't mean that
you cannot do it right. So uh I took my
license to become a realtor to sell
houses. Okay. Yeah, I sell I sell houses
uh in Bocaraton, okay, company in
Colorado. And uh I I'll go to a listing,
right, to pick up a listing for $2
million listing for some old man, okay?
90 years old man. And the guy is moving
very very slowly. Okay, show me the This
is the garage and this is where the
lights I'm get out of here. It's not for
me. Not for me. I can't do it. I need
action. Yes.
At the time, my my wife had a dear
friend. He told her, "Whatever you do,
no matter what you do, do not do
residential. Do commercial." Because in
commercial, your check can be
$50,000,
$75,000, $100,000, not
$5,000. You're better off in commercial
because the rewards are bigger and for
the same amount of work, why not do
commercial? So, I got involved with a
company down in
Hollandale and Dixie, Hollandale,
Florida. I got I went to a company 50
agents 50 agents literally okay drink
cup coffee lazy lazy not everybody but I
would say the majority okay and
basically I started a uh from there
that's why I started and again yes again
it was a another big challenge because I
didn't I don't know what's going what am
I doing right
um I used to go back at night every
night from 6:00 to 10:00 p.m. to hit the
phone call call. At the time, if you
remember correctly, going back 20 some
maybe 30 years ago even, okay, 28 years
ago, there was no no cell phone, very
limited, no social media, no YouTube.
Okay. How do you get your list? Call
from a local paper called Suns Sentinel.
It's still It's still here. Sun
Sentinel. On the back of the paper,
classified classified a uh ad for uh by
landlord, not for sale, but for rent.
looking to rent onebedroom apartment,
$500, whatever. Two bedroom, right? So,
I will call the the seller at night time
because during daytime you can cash
them. Those are not it's not cell phone
and and I'll make a point for the next
day to um to go meet with them and to
take listing, tell them I have a buyer
for you, sign over here. If I get you
the your price, pay me commission. Mhm.
So you're you're you're making you're
you're you're making your inroads you're
making your inroads into these are
commercial real estate properties. So
multi go. So I used to go Yeah. My wife
wait my wife used to work in Boca Raton
and I used to go I used to go door to
door hotel to hotel and fort lot by the
sea during that time going back 30 years
ago 28 some 28 years ago there was no
highrisis all small motel motel motel
right I used to go from one door to
another to another during the daytime
mind you okay knock on door and talk to
the seller potential guy listen you know
I have I have a buyer for you would you
mind if I bring you a buyer what price
would you entertain? At some point, I
went to see my wife in in the BA office.
She was working for another company that
incidentally didn't didn't take me,
which is a good thing. Okay. For
mortgages. Uh I came in water dripping
on me. A lot of water because I'm all
What am I doing all day? I'm boots, you
know, just walking, you know, boots on
the ground, just knocking on doors.
Okay. Asking for listening. That's in
the daytime. Night time, I make a phone
call. Wow. Wow. So what when did you
transition from that business to become
an owner an an investor? Yeah. Correct.
Right. So at the time Okay. Uh and by
the way I had every every week on
Tuesday 9 9:00 we have meeting and all
my listing everybody put their listing
on the board. I would say uh 50 agents
10 listing average at nine out of 10 are
mine. my listing and by the way every
listing overpriced by 20%. They sold
every single listing because those those
people they're there. They're very
they're afraid to make the phone call.
They don't mind taking out buyers. Okay.
So they sold all my listing. So at the
time, okay,
um I met my first partner. He came to
the office and on the wall you see my
name top agent. Yet top agent 1998. The
army habra top agent 1999 the army he
top selling agent 2000 so he tell the
receptionist keep in mind the 50 agent
in the office doing nothing he tell the
receptionist I want him on the wall so
he can't have him why not he's busy he
wait for me four straight
hours okay came in he say you know what
come to my office what what do you want
to buy say you know to me I have $2
million he show me bank statement $2
million and say show What do you have
for me? I say, "Okay, let me go to the
computer." No, no, no, no. What do you
have in your
pocket of market listing? I show him a
few things. Sure enough, he went out and
he put some contracts on some property.
A year down the road, say, "You know
what? Come with me. Don't don't don't
take the commission home. Become
becoming
principal, be part of the deal." But my
wife is a I I owe her a lot because um
at the end of the day I will sell let's
let's say I have 200 unit and I sell for
like whatever $10 million right at a
time right South Florida I make
commission check maybe 50,000 75,000
um the the buyer in New York which most
mostly a lot of Jewish people okay very
very smart people okay it still exists
okay uh they'll come down here and
they'll just buy the property sight and
scene the flippid the same year $2
million profit. Wow. My wife was like,
"Are you kidding me? You want to make
$2,000? I want to make $2 million. $2
million." Right. But I do want to
emphasize, okay, that my first year very
difficult. Extremely difficult. Zero
money. Okay. Nothing. Uh I lived off my
credit card. Okay. Wow. Yeah. Then my
first check was about $255,000.
Wow.
Wow. After that, you know, everything
fell into place. Thank God. So, what
advice would you give? Exactly. I'm
getting to it. So, you know what? You
got to have the fire in the belly. Fire
in the belly. And you have to have to be
able to go the extra mile. And
unfortunately, a lot of young right now,
they're very lazy, okay? Or they're not
I don't know. I don't know. I don't want
to use the word lazy. Maybe they're not
taught right. You know, they're not they
don't have text, okay? And by the way,
for that reason alone, we have an
Instagram channel. That's how you found
me, okay? And I I feel like it's a um
it's my calling to give back to the
world. Does that make sense? Pay it
forward. Yeah. People ask me, "How much
do you want?" I don't want anything. I
don't want money. Just do me a favor. I
don't want to lose on the deal. DM me.
Send me the deal that you're buying. Not
for me. Okay? Make sure I don't want you
to lose with me. Nobody's going to lose
money because we are very
careful while we give advice to people
when they want to buy property.
Are you do you still have the brokerage
part of the business or you're out of
brokerage? No, I don't have brokerage.
No. No. My wife is a she's a broker, but
we don't really use that now. Right. I
gave it I gave it up years ago.
So, is there room still for young
guys to get into the real estate
business? Let me tell you one thing,
okay? There is gold in the street. Go
pick it up. How about that? Right. Is it
easy? No. If this is easy, anybody will
do it. Every every schmuck will do it.
Okay? It's not easy. But you have to
have that fire in the belly. You have to
have the perseverance. You know, you
have to have the willingness to go the
extra mile. Forget about 9 to5. Okay.
And check your ego out the door. Even
now, I check my ego out the door. Yeah.
Oh, yeah. And you know what? Well, one
one really um very very important
information. Okay.
If the audience can take from, okay, um,
you always want to surround yourself
with somebody smarter than
you. If you're going to be in the same
level, that's what we call next level.
Me, when I surren when I listen, when I
meet people and I think that they're
going to be a waste of my time, after
two minutes, I'm out of here. I don't
have time. Because, you know, one thing
you don't have in this life, time. Time
goes by very
quickly. So, it's extremely important,
okay? Whether it's your employee, right,
your friends, your Okay, always be with
smarter people. You want to be the
stupidest man in the room. And by the
way, I did not make it up, okay? I'm I'm
taking advice from somebody much much
billionaire people, okay? That you know
that that's what I thought. I learn all
my experience.
So I want to tell you personally, okay,
I would like to do by yourself too.
Yeah. Me personally, I run a successful
a few successful businesses. I'm making
a nice
living. Um, but if I stop pushing my
ball forward for
one
month, everything starts to slow down.
And that's being a business owner. I'm
36 years old and I don't want you
counting tremendous. You know, you give
it out to the world. old. I'm really
proud of you. Thank you. Thank you. How
old are you? I'm old. You're old. 57.
So, it's nice to be called young once in
a while, you know. Um I like it when the
guys call me the young guy. I I feel
like I'm old already. I'm 30. You're a
teenager. Are you kidding me? Yeah. So,
so I I know that the big money is in the
long-term money is in real estate.
Right. I left my family business eight
years ago, nine years ago, and I've been
in survival mode for nine years, just
trying to, you know, pay my bills, give
sedaka, you know, God bless. God bless.
Put a little bit of money away. Be a
good Jew. Yeah. Be a good Jew. Put a
little bit Put a little bit of money
away. You know, live comfortably. Give
my family what they need. And now And so
it's been all short term. Now I I want
to look long term. I I wanna I don't
want to be I don't want to be 60 years
old and be hustling at the at the trade
show conferences selling 1520$20,000
contracts. I don't want to be doing
that. I want to I want to be I want to
go to the next level. So I you know me
going to the next level. Okay. You're
going to keep in touch with me. We I'm
taking it to the next level. Amen. Amen.
Thank you. So, so I I I I try, you know,
you mentioned reaching out to guys that
are, you know, bigger than you or
smarter than you. One of the reasons why
I do this podcast is because it gives me
access to guys like yourself and that I
could sit with for an hour I could smoo
with. So, I I want to be in real estate.
I want to be in real estate for a few
years now. Okay. And I've I I have the
way that I look at it, I have three
options. I could either take the money
that I saved up on my own and I could
buy smaller
units, you know,
triplexes, quadruplexes, fiveplexes.
Okay, that's option number one. Option
number two is I could I could go and
raise money and buy bigger deals. Let's
say, you know, 16 unit, 32 unit
buildings and and do it on my own and
raise money. Or option number three is
partner with somebody that's been doing
it for, you know, let's say five years,
10 years. He's worked at a company as
the number two at a company and now he
wants to go out on his own. I have a lot
of I have a lot of connections to money.
Let him run the real estate and use his
expertise that he's that he's garnered
over the years and let me use my
expertise in in relationship building
and I bring the money and the investors
and I partner with him like that. Which
one of those would you advise?
So, I would advise um to Here's the
thing, okay? Uh and we're going to go
back a little bit. People ask me 10
unit, 20 unit. And I give you an
example, okay?
Um looking at 20 unit Hollywood, Miami,
whatever. 20 on a chart in $2.2 million.
Yeah. 20 unit, $2.2 million. Average
land is $1,300 1350. Do you think it's
worth $2.2 million?
You have to run the numbers. It's not
anything. Why? 2.2 million. I I always
use the 1% 1% rule. If I'm paying $2.2
million, I want to get rent at least
$2,000 a month, right? Bottom line.
Okay. My rent is 350. So, but don't
worry, the salary is very cute. Okay.
Oh, you're going to get to 2,000. What
do you mean? You can get 1,900 average
rent eventually. Eventually. Oh, so let
me understand, Mr. Seller. I'm going to
work for free for the next two years to
get Yes, basically. So, no good. That's
that's a typical unit property right now
for sale in South Florida all day long
five unit 20 unit 25 unit okay where the
the asking price is really the selling
price once I'm done with the property
that's not going to happen okay now when
I look at the bigger deal for example
okay tomorrow we're looking at 400 in
plantation okay some 67 6 $6 68 million
okay uh another 300 in Jacksonville okay
so when you look at the bigger deal the
1% ent rules do apply. Make sense? What
are you picking up units for in there?
You're picking them up, right? For
example, they're asking 170 a door for a
unit. 170 a door, but my average rent is
pushing $1,700 right now. Not when I'm
done with that. When I'm done with that,
my average rent going to go to 2,000.
Mhm. So, imagine imagine buying this.
Imagine um the same formula for 20 unit
for something 400 unit. Now I'm gonna
pay $90 million for it. Does that make
sense? Numbers don't work. You got to
buy it. You know the 1% rule. If if
people follow the 1% rule, they're not
going to lose. Here's the problem.
People right now, what they do? They're
looking at cap rate. I don't care about
cap rate. Ask me why. Why? Going to show
you, right? Seller going to show you X
amount of income with a to a 30%
expenses. Remember, the lower the
expenses, the bigger the Ny. You cannot
run you can't not run cannot a community
two or 300 unit under 50% expenses it
cannot
okay and even then you got to be very
careful because insurance premium stuff
like that okay so I really we look at
the income we do our own
underwriting and so for me okay I I I
prefer to do even I buy two cap rate
three cap rate but I want to make sure
I'm paying lower my my business is that
much lower price per dollar but you
didn't start with 300 unit deals. No, I
did not. I started with I started with
duplex, you know. See, this is where all
of the real estate gurus. I understand.
So, here here's here's like this is
where they all break down. This is this
is this is where this is where it gets
messed up is the guys that are starting
out fresh. I don't know if I could
raise, you know, if you ask me how much
money I could raise a I'll tell you I
think I could raise at least a million
bucks on my first deal. So that means
that I could buy $3 million worth of
property with a million bucks. Okay.
So I I I if you gave me the best 300
unit deal property that ever right I
can't find it. You can partner up. No,
you can give them we can give the if the
down payment for the three unit is $10
million, it can be 10% of the deal. For
example,
say it again. If let's say 300 unit is
we need $10 million down payment, right?
Your million dollar will buy you 10%
equity in the deal. Exactly. Exactly. So
So that's that's not bad either. That's
not bad. If if if there is if there is
meat in the bone, right? Now on the
other side, if you want to buy something
for $3 million now, you going to buy
something in Panama City? No, because
the property in Panama does not
appreciate. It depreciates.
The Panameanian bank banking system does
not recognize real estate as a monetary
instrument. So, let's say you increase
your NOI on your building in Panama by
$100,000 and you go to the bank and you
say, "My NOI is up $100,000." In the
United States, they'll give you a loan,
another million or whatever it is
dollars based on your NOI. here. They
say, "Congratulations. Go buy a
Mercedes. What do you want from me?"
Right? So, there's no all this real
estate that you see in the back. It's
only worth the brick and mortar. That's
all. That's all it's worth. And don't
have a 20 years tax exempt in Panama.
Yeah. But who cares if if
the if you improve the building? You're
not getting you can't
refinance and the it's it's just a
rental business. That's all it is. Your
your cost of rental is a thousand. You
rent it for 2,000. It's a cash flow
business. That's it. There's no
appreciation. There's no appreciation.
So, where would you buy? You you'll come
to the state. Yeah. Where in the state?
See, that's that's the million dollar
that's the $10 million question is the
United States is huge.
So where one single Miami to Panama City
is close, right? So So I look at what
are the two closest places? I have Miami
and I have Texas. Those are the two
those are the two direct flights three
hours away. Beautiful, right? By the
way, I've been I was in Panama about 15
years ago. Well, you have a you have a
friend now in Panama. Thank you. One
thing I learned about Panama City, it's
90 degrees every single day. Every day.
Every day. Every day. Doesn't go down.
Like I like it. doesn't go down. It's
better than New York. Doesn't go down.
Oh, yeah. Yeah. No, but seriously, I
think Miami and Texas very good markets.
So, that's the problem is that guys like
you, you already paid your bills. You
already paid your dues. You already gone
to a level where you're at your 300 unit
where you feel comfortable where you
could pick up the phone and find $10
million and you have guys that trust you
already that will put down $10 million
on your deals. But the but the guys that
are trying to break into the market,
they don't have those. They don't have
that trust. Start you can start small.
That's okay. So So hang on. So when I
said I want to buy 16 32 unit deals, you
say, well there you can't make money
there. One second. No, you can't make
money if you give them what they're
asking. You need to you need to look at
many deals. Make low offers. You don't
want you don't want to overpay. If you
over if you overpay, okay, that's it.
You can't see your money back. Um I
don't know. Maybe you're going to have
cash flow, but now the way the interest
rate are, I don't think you will. And uh
by after after you close, bye-bye
seller. They don't they don't know about
you. It's a big mistake a lot of first-
time investor do because they fell into
a trap. I mean, I'm I've seen 20 20 on
it, 50 unit on it, 10 year on a deal, 25
unit deal. Asking price is my selling
price when I after you've renovated and
after you've stabilized and it's time to
stabilize. Correct. Right. Right. Right.
Right. I rather you put the money in CD
and wait for the opportunity.
So you're saying you can make money on
the 20 unit deals, but you have right.
You have to buy. You got to buy. Right.
Right. So you're saying the 1% rule if
you're if you're what's it called? The
1% rule is what? Explain it again.
Again, if if if you if it's 20 unit
asking $2.2 million, right?$220 a right.
And I'm getting rent or about $1,200
$39. Okay. I'm losing money. You're
losing money. 220
220,000 per door. Excuse me. Yes. Who's
helping you there in in your office? We
have Joy Laser is my everything is good.
He's good. He's good. Yeah. I have a
whole team. I have all team. But really
the idea is you don't want to overpay
because uh that's a big I rather you go
buy a car. Buy go buy a Ferrari and sell
it. You're gonna you're gonna be fine.
You're going to enjoy it. Lose a little
bit. In real estate, by the way, it's
not liquid. Not liquid. What does it
mean? You're stuck with that. So, we are
we always think when we go into
contract, okay, the number one thing,
think of it like that. You know, um you
know, Macy's M's fireworks. July 4th
weekend. Excuse me. Yeah. July 4th
fireworks, right?
What do you think they do the following
day after on July 5th? They're getting
ready. It's my birthday, by the way.
They're getting ready for the following
year. Fireworks, right? Right. The same
thing here when we buy a property day
one I'm getting ready for refi event 12
months down the road or 24 months down
the road from day one okay or for
selling okay to sell it so I need to
make sure my number works okay because I
need to I need to secure the idea that
the next buyer will pay x amount of
money once I'm down the property you
know you say you you mentioned the
duplex you know who Grant Cardone is of
course so Grant strongly advises is
against buying anything below 16 units
ever. I disagree. You can buy two unit.
It's all listen. It's like saying when
if the market is a um bad economy, do I
buy real estate or do I buy real estate
market goes up? It's like Bitcoin. You
always buy in a pullback. If I if you
get tomorrow a deal and you can you know
you can make a kill on it whether it's
two unit, three unit, four unit. Okay,
you do it and then you wait for the
opportunity to buy something bigger.
Okay. But I I I I think 200 is good
makes sense. 300 makes sense. You may
want to partner up with somebody bigger.
Makes sense. And be part of a big
community.
That's because number one, you're not
going to lose, okay? Because you know
already you're in good hand, okay? And
that person also put his own money,
okay? Stand on the loan, etc., etc. And
number two, um you know, you're part of
300 unit complex. Now, now 16 unit is
good if you buy it, right?
A what unit is good? 16 is good. Net 20,
it's all good. It's a function of money.
It's a function of dollar and cents. You
don't you don't want to overpay. Can you
retire? Can you retire today? I can
retire. Yeah. Today
based on your cash flow or based on your
future appreciation or based on what?
Oh, above.
But I'm not You know what? Um it's not
about retiring. It's about I feel like a
uh my calling I'm trying to I want to go
to the next level. You want to own about
20,000 units. So because look when we
when I see a property for for us it's
like an art. What can I do with that?
And you know what I kid you not, okay?
When we done with the we buy property,
right? We done with the property, we
stabilize it. We command the highest
rent in its class in the neighborhood.
And you know why? Because we have good
manager. My property manager is not just
regular property manager. Number one,
he's got equity in the deal. Number two,
okay, they are original mentality. When
you have original mentality, you don't
sit on your ass, okay? Collect rent.
Collecting rent is that's not property
management. Property management is
create value in the market. Raising
rent. What's your next move? Where where
is business coming from? Lowering
expenses. Getting beats. Do you think
that I'm crazy since I live in Panama
and I want to invest in real estate in
the States and be in that business?
Absolutely not. No, we are crazy. Not
unreasonable. No, you're
fine. There's no issue. But but you got
to make sure you got to make sure you
have um boots on the ground. Yeah. You
if you partner up with somebody, make
sure they know what they're doing
because I don't want to lose, you know.
And that's another thing. We don't have
third party management. I give you an
example, okay? to rehab 200 units,
right? Apartment building community. If
I if I give it to third party
management, we're talking about 25,000
average per door to rehab it. I do find
10. You understand? And I pass on the
serving to our friends, family,
partners, whoever with
us. When you're raising money, you're
raising it now from still friends and
family or you're raising it from
institutions. Where are you raising your
money from? All of the All the above.
All the above, right? What's your
average investor?
250,000, a million, 152 million. Uhhuh.
And who does the money raising? You uh
we have a team.
At the end of the day, they want to talk
to me. I'm the sponsor. They want to
make sure I'm boots on the ground. And
uh look, are you familiar with the bank
called Greystone?
Sure. Are they big? The big one of the
biggest. Thank you very much. I have a
letter from the president, okay, to me,
okay, during co I was one of one of the
only one that actually um I was paid
month in month out. I never missed
payment. They love us. Okay, this I mean
look, you can make money and lose money
and of course everybody we all lost
money in a time. I'm not going to see to
give you you know. Uh actually
I lost money for partnering around with
bad people. Okay, that's that's another
conversation. But um to to to keep your
name to have a good name, that's very
difficult. Okay, you want to make sure,
okay, that you have um a good name out
there because you can you can you can
fix your name. And for us, it's really
important, okay, that uh we have a good
name.
That's just one example, Greystone. You
know, the list goes on. So, my asset
that I have is I I I'm good at building
relationships. I have a lot of
connections because of my social media.
We should talk after after the show.
Yes. What's that? We shall talk after
the show. I like it. I like to hear him.
Yeah. Okay. I I you know, I I have a
good I I have a good name. You know, I
I'm straight in business. I've been in
business for my whole life. People trust
me. Um and and I do think that I could
raise, you know, nice amounts of nice
amounts of money if I really focused on
it. That's my That's my asset when it
comes. I think that's what you want to
You know what? The more I think about
it, I'm thinking about you. That's what
you want to do. Partner up with with
somebody strong. Okay. Raise the money
and don't forget about commission. you
want part of the deal, right? So, okay.
So, let me share with you. This is where
I end up getting stuck. Okay? Let's
let's say I blow it out of the water and
I raise $10 million for a guy's deal.
Okay? Usually, guys don't give more than
2% for money that you're raising. So,
you're raising $10 million to make 200
grand. I'm better off focusing on my
main business. I make much more money. I
tell you what, I make a deal with you.
Okay? After the show, bring me $10
million. I'll make you a partner. At
least one third. You like that? At least
give me $200,000. I'm giving you 30% on
the deal.
You like that? I do like it. But I tell
you what, I'm I'm a tough guy. I'm
looking for execution. Okay. I'm looking
for real people, people with money. I I
black my once I talk if I talk to
somebody there in the Sammy Bush, I
block the number. I get a lot of BS out
there. Okay? Because when I look our our
deal when when I when I bring a deal to
the table, right, you should know I
already did my due diligence. I already
to the property. I do everything. I did
everything that needs to be done to make
sure the deal makes sense. Okay? I got
term sheets. Okay? The only reason why a
person not going to give me money, he
doesn't have the money. That's
why because we know I'm not giving
stuff. I'm not I'm not telling guy, do
you think it makes sense? No. Obviously,
they have to do their own due diligence.
Okay? But I know already in advance.
Okay. The deal makes sense.
That's where you're buying. You're
buying in South uh South Florida. No,
we're buying anyway in Florida. South
Florida is already played out. Yeah. We
buy Yeah. Uh I mean I am looking at 400
unit in plantation. Actually, we're
going tomorrow. Uh so here's a question
for you. How do you have the guts?
How do you have the guts? Let's say you
find the beautiful this 400 unit deal.
Okay. What are they asking for the 400
unit deal? 70 70 million. 70 million. So
you're going to have to put down $25
million on that deal. Mhm. Plus probably
another 10 million in rehab. No. No.
Together about 22. It's everything
included. Okay. So you're going to have
to raise 22 million. Oh, there about.
Yeah. How do you have the guts? Well, so
number one, right? Number one. Okay.
That my my $22 million, how much can I
make on it? Is that am I am I going to
make it 10% or am I going to double my
money? That's number one. So if I if I
don't think I can double my money close
to 2x again see property A property you
know I don't know if you know the
difference right? Yeah. Yeah. Yeah. A
property that you can hold on to it for
like a good five years, five, seven
years. Okay. And you have it's a very
slow moving vehicle, but it's it's
quality. A property it's like it's like
a CD, right? They come to B and B and C
property. I need to make sure, okay,
there is going to be a good value within
the next two or three years, not 10
years. So my my lender, my broker, he
referred to me as a cowboy.
I've put non-refundable $500,000 million
non-refundable. So that's what I'm
saying. How do you have the guts to put
down a non-refundable? In 20 in 25 years
in business, thank God we lost zero
money. We came very close. We came very
close. Okay. But no, we always able to
pull pull a rabbit out of the uh So
that's my question. How do you how do
you you you have how do you have the
guts? You put down a $500,000
non-refundable on a deal and and now
you're on the hook to raise $22 million.
Number one, you can't put your last
$500,000, right? Number one. Yeah. Okay.
Number one. Number two. Okay. We signed
we sign you signed LOI. There is an LOI
process. Okay. There it's not I don't
you don't put the money day one. Okay.
There is 30 days before you do a
contract. Okay. During that time, okay,
I fill around the market and I I know
already I want to be able to raise at
least 60% of the money before I put
nonrefinable during that 30 days.
There's a lot there's a lot of things
going going into it, you know. So,
you're getting on the phone, you're
calling your investors, you're seeing
what I know I know what they're looking
for. You're seeing you you you see what
their appetite is for Yes. Exactly.
Right. Remember, it's not it's not my
first radio, you know. Right.
Right.
This has been uh Yeah, this has been
fun. This has been really fun. I want to
come to Miami. I I need to make it out
to Miami. Please come. Take there's so
many nice beautiful kosher restaurants
here. My pleasure. I want I want to take
you I want to take you to a nice dinner.
That would be great. I' I I I was there
a few weeks ago and I plan to come in
the next month or so and uh I would love
to go for dinner with you when I'm
there. Thank you AL for joining the show
today. I really appreciate it. And um if
anybody wants to invest in Al's deals,
please reach out to him. Uh please reach
out. Where could they find you, Al? On
Instagram. They can find me at They can
uh email me at emquity.com.
emquity.com.
Emmequity.com.
Emmequity.com. Thank you for joining the
show. I appreciate your time. You're the
best. The