Multifamily Real Estate Development and Asset Management with Sam Bates

On This Episode of Peak Market Watch...

Multifamily Real Estate Development and Asset Management with Sam Bates

Sam Bates, founder and CEO of Bates Capital Group and co-founder and managing partner of Trinity Capital Group, Anton Mattli, and John Martinez will discuss Sam’s experience in multifamily real estate investing in today’s economic climate. Sam brings listeners insight into his recent experience in multifamily real estate development and his recent acquisition in the Florida Market and share his knowledge in multifamily asset management! 

 

Episode Highlights:

  • Multifamily real estate development investing

  • Multifamily real estate Florida market overview – prices, taxes, & more

  • Multifamily asset management – reducing expenses, fees, and adding value to tenants

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Show Host

Guest Speaker

Connect with John Martinez

  • Email: john@peakfinancing.com
  • Website: https://peakfinancing.com/about-us/
  • FB: https://www.facebook.com/jzmpeakmff
  • LinkedIn: http://linkedin.com/in/john-martinez-65a2926

Connect with Sam Bates

Bates Capital Group

Trinity Capital Group

  • Email: Sam@TrinityCapitalTexas.Com
  • Website: https://www.trinitycapitaltexas.com/

VIDEO TRANSCRIPTION

 

00:00

anton thank you for having me on i look

00:02

forward to talking the markets with you

00:05

and hopefully sharing some knowledge

00:07

with your listeners yeah great uh thanks

00:10

for being with us why don’t you give us

00:12

a little bit of a background of what you

00:14

have been doing uh in

00:18

before you and ventured into

00:20

real estate right i think you also have

00:23

some interesting background on the tax

00:25

side too and then what you have been

00:27

recently doing on the

00:29

real estate side okay yeah definitely um

00:32

i

00:33

after undergrad i worked at ubs

00:36

investment bank for a few years as an

00:39

analyst and i love my job and i decided

00:42

to get my masters and when

00:45

i was in grad school that’s when the

00:46

market tanked and

00:48

essentially i realized i couldn’t trust

00:50

the equities market i couldn’t

00:53

give people advice to invest in mutual

00:55

funds or stocks bonds and i had

00:57

absolutely zero control of it and

01:00

that

01:02

made me do a lot of internal processing

01:04

and thinking and when

01:06

i graduated i decided to go the

01:08

consulting route and i

01:11

worked at a company that when i showed

01:12

up they put me in sales and use tax

01:14

consulting and honestly didn’t know what

01:17

it was

01:18

um and

01:19

it

01:20

it was great i learned

01:23

a lot of things from a tax perspective

01:26

from sales and use property taxes

01:28

um even fuel taxes and i spent about a

01:31

decade in the tax realm or tax industry

01:35

i’m consulting that i was at energy

01:37

company but one of the things it did was

01:39

luckily it made me realize i didn’t want

01:41

to do that for the rest of my career

01:43

and

01:44

probably back in i guess in 09 it’s when

01:47

i started to venture into real estate i

01:49

was a limited partner on a couple deals

01:51

and then i did

01:53

close to 20 single-family homes and then

01:55

since 2016 i’ve been a gp on

01:59

um

02:00

multiple deals

02:01

we’re in the process of closing which

02:03

would be my 13th gp acquisition or

02:06

acquisition or development

02:09

yeah that’s a great uh obviously started

02:12

out right at the right time in 2009

02:15

right when

02:16

when the opportunities were plentiful

02:20

we wish we could say the same today and

02:22

we certainly can can touch on that uh

02:25

a little bit later

02:28

uh so uh

02:30

now i

02:31

i think you uh based on what we know

02:34

where you you have been uh

02:36

now the latest focus is on a deal that

02:39

you’re soon will be closing is in

02:41

florida but uh before that i think you

02:44

also have been involved in quite a bit

02:46

of

02:46

of projects uh

02:48

in texas so maybe you just can give a

02:51

little bit of a background there too

02:53

right so just our listeners understand

02:55

your deep knowledges on the development

02:58

and asset management side

03:00

yes um most of my projects have been in

03:03

texas but florida will be the fourth

03:05

state that we’ve invested in and

03:09

as you know

03:10

especially the larger markets in texas

03:12

are very competitive and most of our

03:16

acquisitions or developments are in

03:18

secondary and tertiary markets we

03:20

like the yield we like

03:23

not being as competitive from an

03:24

acquisition standpoint and we can go in

03:28

and we’ve been able to provide our

03:30

investors as good or possibly even

03:32

better returns than

03:33

some of the people that are buying in

03:35

austin dallas houston

03:37

and

03:38

i’ve been able to build out a network

03:40

with our

03:42

with a couple property managers where

03:44

they manage kind of across the country

03:46

and that’s given me a lot of comfort to

03:49

go into some of these markets that

03:51

are a state or several states away

03:55

because they’re the boots on the ground

03:58

they i have a comfort and familiarity

04:00

with them that i’m definitely talking to

04:02

them every day every week we have calls

04:04

but um i’m not necessarily having to be

04:07

at the property every day and

04:09

in my ex

04:11

in my experience i’ve went through i’ve

04:13

worked with seven or eight property

04:15

managers and they all have pros they all

04:17

have cons and now we’re kind of

04:20

whittling it down to a few that

04:23

feel like have

04:24

risen to the top of the top of the heap

04:27

and

04:29

now we’re focusing on assets that

04:31

they’re able to manage and help us

04:34

gain the most

04:35

extract the most value from

04:39

very good

04:40

so these property management companies

04:42

are they more

04:44

large national firms that you prefer to

04:46

work with rather than just local firms

04:49

is that the kind of ones

04:52

one’s a large national firm and then one

04:55

is more of a regional firm they’re based

04:57

in atlanta but they do have operations

04:59

and some of the southeastern i think

05:01

five southeastern states um and they

05:04

were

05:06

initially a broker then an owner than a

05:09

developer and now property manager so

05:11

they’ve

05:12

seen the entire spectrum and they can

05:14

give us insight that some property

05:16

managers might not be able to just

05:18

because they

05:19

haven’t actually owned a prop or the

05:21

other property managers haven’t owned a

05:23

property like they have

05:25

and their team has been with them for

05:28

a lot of them for 15 20 plus years so

05:31

there’s a lot of continuity that we can

05:34

leverage their resources and skills that

05:37

have helped to

05:38

help the process in the atlanta market

05:41

and now in the florida market i think a

05:43

lot more seamless than it would be if i

05:45

had to go out and start interviewing

05:48

local property managers that i had

05:50

no experience or rapport with yeah okay

05:53

very good

05:54

uh

05:55

now it’s it’s interesting that you

05:57

mentioned uh

05:59

that

06:00

you you

06:02

move kind of away from from from texas

06:05

because of the

06:06

uh the high prices and the competition

06:10

uh and your deal that you’re going to

06:12

close in the near future happens to be

06:16

in a high price markets only on a per

06:19

unit basis

06:20

which is in

06:21

in orlando

06:24

where

06:25

i would say in compared to dallas fort

06:28

worth

06:29

the price per

06:31

unit surprise per doors

06:33

still seem to be pretty high right there

06:36

might be at the level what you would pay

06:37

in austin but

06:39

uh you probably still pay more typically

06:42

than what you will pay in

06:44

in dallas fort worth market so what

06:49

what made you feel comfortable to to go

06:52

in into

06:53

into a market where aim for a 60 70s

06:56

property you may pay around

06:59

200 180 to 200 000 plus per door

07:04

compared to a market uh where you may be

07:06

able to get it 450

07:09

which is still extremely high right in

07:11

dallas fort worth

07:14

or in the upper 180 190 in in austin so

07:18

what made you decide that

07:20

yes the price per door is really steep

07:24

but we are still comfortable to get into

07:27

into such a market

07:30

yeah and i’m still looking in

07:32

texas but it’s just turned out that the

07:35

last few deals have been out of state

07:37

and

07:38

what made me comfortable going in with

07:40

this property is it’s a 2017 vintage um

07:44

so it’s

07:45

newer product there’s not that

07:48

um many issues that we have to correct

07:50

from a deferred maintenance standpoint

07:52

and we’re getting a price point which

07:55

to some people it sounds crazy but we’re

07:57

paying 200 000 essentially per door for

07:59

it um and in

08:01

the same

08:03

orlando msa we were looking at

08:05

properties that they were one was 210

08:08

one was 180 some of the new bills in

08:10

orlando are going anywhere from

08:13

235 to 275

08:15

um so we feel like we’re in a really

08:17

good basis and even in dallas now some

08:20

of the newer properties are trading i

08:22

was talking to one broker and he was

08:24

saying anywhere from 220 to 255 to 60

08:27

adore so pricing on the newer builds are

08:31

pretty comparative um but one thing that

08:34

i like is

08:37

florida doesn’t have the crazy property

08:39

taxes that texas does where it’s hard to

08:41

model out an insurance even though

08:44

florida is on the coast and it’s in

08:47

hurricane alley

08:48

essentially they haven’t had the storms

08:51

some of the insurance providers haven’t

08:53

pulled out like we got our insurance

08:55

premium back less than a month ago on

08:57

our texas portfolio and it increased by

08:59

36 percent

09:01

that just kills

09:02

the bottom line on any deal and it’s

09:05

you can’t model out a 36 percent

09:08

property

09:10

property insurance increase

09:12

so um even though the price per unit

09:14

might be a little bit higher or a little

09:16

bit more than what we’re seeing

09:18

the overall return

09:20

will we think is going to be better just

09:22

because

09:23

the

09:24

the expenses

09:26

are a little bit lower than what we

09:27

would be paying right now in texas

09:30

and not trying to make like a texas

09:32

versus florida you know only

09:33

conversation but as you thought about

09:35

this particular investment you know

09:37

maybe a little bit richer you see

09:38

opportunities to really capture the

09:40

return for your investors

09:42

on the back end you know

09:43

what are kind of some of the drivers

09:45

that you think you know that florida

09:47

provides that makes your exit more

09:49

probable or give you comfort that this

09:51

is the right price and you’re going to

09:52

have a successful exit to your investors

09:56

yeah that’s a great question and i don’t

 

 

 

09:58

want to compare texas to florida or to

10:02

atlanta they’re all different markets

10:04

but there are similarities everybody

10:06

knows that people are moving to texas to

10:09

florida to georgia to

10:11

arizona so we have that population

10:14

growth that i think is going to continue

10:16

um i’ll be honest before we

10:19

seriously looked at the still i i looked

10:22

in orlando but i kind of shied away

10:24

because i was afraid of just the tourism

10:26

industry and it’s boom and bust and then

10:29

with kovid i thought it was going to

10:31

take a massive impact and the more

10:33

research i did

10:35

is

10:36

there’s a lot of fortune 100 and 500

10:39

companies in orlando and it’s more

10:40

white-collar jobs than maybe most people

10:43

believe

10:44

and our property is actually north of

10:47

orlando so we’re

10:50

40 to 50 minutes probably away from like

10:52

all the disney epcot all the tourism so

10:56

our employee base doesn’t even make up

10:58

any of the

10:59

workers that would be at disney um and

11:01

since it’s a newer vintage and a class a

11:04

it goes for more the white-collar

11:06

workers and another thing that orlando

11:08

has for it is they have some large

11:10

universities and they’re getting an

11:12

influx of young

11:14

working professionals and talent every

11:16

single year moving in and a lot of them

11:18

are staying

11:19

obviously some will migrate after they

11:21

graduate to find a job but a lot of

11:24

being able to stay in orlando and over

11:26

the last 17 years

11:28

orlando’s job base or employment base

11:31

has grown by 45

11:33

which i think that’s just going to

11:35

continue in the future

11:37

yeah that’s a great point right so

11:41

i think that’s what a lot of people

11:43

really do don’t understand how diverse

11:45

the economy is in in orlando i thought

11:48

greater orlando

11:51

right outside of that uh

11:54

amusement park uh

11:56

bubble there right so there are many

11:59

many more economic drivers

12:02

and i would say certainly we don’t know

12:04

how it looks medium term but short term

12:08

uh that market florida in general’s only

12:11

benefits from

12:12

uh from from less density right so i

12:16

think even college graduates at this

12:19

point they may not be that inclined to

12:22

to move back to a to a major city

12:25

uh and i think

12:27

the problems only

12:29

uh haven’t gone away right so uh like

12:33

when we look and we

12:35

look at

12:36

freddie now reducing the corvette

12:38

reserves uh just uh

12:40

as of yesterday

12:43

based on our recording we have today

12:45

uh they still have a pretty significant

12:49

concerns in in certain locations and the

12:52

major locations that you’re concerned

12:54

about are all the dense

12:56

uh gateway cities right so i think

12:59

uh also for for graduates and generally

13:03

my caller employees they think twice

13:07

once they

13:09

study and graduate in a market like

13:11

orlando or have a job opportunity that

13:14

they really want to move back into

13:17

into a major big city i think it will

13:20

come back it will just takes it will

13:22

take a number of years

13:26

that will definitely benefit you guys

13:28

with with that with that property

13:31

yeah that that’s what we’re hoping and i

13:34

know with kova

13:36

had a shift of the

13:38

working culture and

13:40

obviously every most people are working

13:42

from home now

13:43

and we’ll see how long the swing

13:46

it takes to go back and when people

13:47

start going back to the more densely

13:49

populated urban areas um i’ve

13:53

i think

13:55

eventually people are going to go back

13:57

to work because it just you have to have

13:58

that company culture you have to have

14:00

camaraderie the younger staff for people

14:03

early in their career they need that

14:05

connection with the senior leaders with

14:08

the

14:09

senior managers just to be able to help

14:11

grow their career

14:13

i’m not sure how long it’s going to take

14:14

for them to go back to

14:16

working full-time or be in the office

14:18

60 of the time or whatever but it will

14:21

happen eventually

14:22

yeah definitely

14:25

you brought up a good point right when

14:28

it comes to taxes and insurance i think

14:31

orlando you definitely have to benefit

14:33

that it’s further inland

14:36

insurance rates along right along the

14:39

coast are pretty

14:42

pretty tough to to swallow

14:45

uh in florida as it is uh in some uh in

14:49

southern uh

14:51

uh texas and obviously we have it

14:53

virtually anywhere in texas because of

14:55

tornadoes and hail storms further north

15:00

now when it comes to taxes uh this is a

15:04

really good point right everyone looks

15:05

at price per door price per door but no

15:08

one really

15:09

discusses the ongoing uh operating costs

15:13

that that one has and as we know taxes

15:17

uh make up a big big chunk

15:19

and

15:20

other than florida an order market that

15:23

a lot of people always felt that’s

15:25

overpriced is is arizona right uh but

15:29

there again you you have a much better

15:31

control over your tax situation right so

15:34

you do not get that massive hit just

15:36

because an assessor decides that

15:39

now the value

15:40

for all the properties in that

15:42

particular sub market need to be go need

15:44

to go up right so

15:47

it’s a very good point that you made

15:49

there

15:50

well well thank you and yeah i think

15:53

more and more people are starting to

15:55

focus on it everybody’s getting

15:57

squeezed from a price point so you just

16:00

have to look at the opex expenses and i

16:02

know some are controllable and some

16:04

aren’t but the more you can save on the

16:06

opex expenses the more you’re just going

16:09

to add value because if you increase

16:11

rent by a dollar save a dollar on

16:13

expenses it’s the same same thing so

16:17

and

16:18

with technology

16:21

coming more and more to the forefront

16:23

i’m hoping we’ll get more efficient

16:26

just from an entire

16:29

expense standpoint but like another

16:31

thing that florida has from a tax

16:34

perspective which is nice that some

16:35

people don’t know about is if you pay

16:37

early you get a four percent discount

16:40

so you can even factor that into your

16:43

tax

16:44

payment amount and it just helps you

16:46

save that much more

16:47

i would assume most people take

16:48

advantage of that if they don’t they’re

16:50

just throwing away money but um not

16:53

everybody understands that

16:55

sure yeah excellent point

16:58

so sam just kind of leveraging off your

17:00

comment a little bit earlier off of i’m

17:02

sent off of insurance you know that

17:04

spike that you saw you know where you

17:06

find that your team is you’re looking at

17:08

investments like you know where do you

17:10

think you have the opportunities to like

17:12

your maybe your strengths to execute

17:14

when you do get a spike like that

17:15

because obviously on the front end

17:17

you’re underwriting deals maybe you’re

17:18

passing on some that you think are too

17:20

rich because you don’t have that

17:21

operating cushion for these types of

17:23

eventualities you know so

17:25

that’s so much kind of what’s your

17:27

secret sauce like where do you think

17:28

your strengths are with your team that

17:30

when these do occur um you know you’ve

17:32

got some you know trick in in your bag

17:34

that you’re able to focus on to still

17:36

kind of maintain those returns because

17:38

that type of hit like you’re saying to

17:40

the p l i mean

17:42

that can have a significant drag for a

17:43

window of time to be able to try to just

17:45

have rents naturally lift

17:48

what are some of the solutions you try

17:49

to bring to situations like that

17:52

um i don’t know if it’s a secret sauce

17:54

but i do feel like we operate our

17:57

properties well and

17:59

um

17:59

[Music]

18:01

all but

18:02

i mean

18:04

outside of all but one my oldest

18:06

property is a 96 vintage um and most of

18:10

them are in the 2000 teens

18:12

so

18:13

we do have a newer product so our

18:15

expenses are going to be a lot lower

18:17

than the 1970s or 60s vintage but i

18:20

think

18:21

just constantly staying on

18:24

the property manager and managing it

18:26

from

18:29

just a continual daily basis of how we

18:31

can improve and

18:33

some properties you can improve almost

18:35

immediately like we were able to go in

18:37

on this atlanta deal and we’ve pushed

18:40

rents in five months more than 200

18:42

dollars um because it was horribly

18:45

mismanaged but on other especially the

18:47

ones that we’ve owned for a few years we

18:49

can’t do these massive sweeping changes

18:52

at a drop of a dime so i think it’s

18:56

bringing in technology like i mentioned

18:58

i think it’s adding

19:00

luckily texas is a great

19:02

market for this and

19:04

our um there’s some pricing elasticity

19:07

that

19:08

the consumer will take and we can add

19:10

different fees

19:11

um

19:13

now that some of our insurances went up

19:15

we’ve

19:16

and well before the insurance went up

19:19

earlier this year we implemented some

19:20

different fees that are almost standard

19:23

in the texas market that aren’t in other

19:25

markets such as a common area

19:27

maintenance fee or

19:29

um

19:29

one of our properties we dug a well and

19:33

we’re basically

19:34

we’ve been

19:36

supplying them with well water now we’re

19:38

turning it into actual water system

19:40

where we can build back

19:41

for

19:42

100 of the water they use and all the

19:45

cost associated with instead of just

19:47

basically rubbing them the the water um

19:50

so it’s just looking at each property

19:53

and seeing how you can optimize it um

19:56

one we were able to charge a convenience

 

 

 

19:59

fee

20:00

that in that market it took it and i

20:02

tried in other markets and it didn’t so

20:06

it’s just always testing

20:09

different pricing that we could

20:10

implement

20:12

trying to

20:14

i mean in some projects we’ll go and do

20:17

kind of like the green project where you

20:18

implement new toilets

20:20

led lighting

20:22

to save electricity costs just

20:25

almost

20:26

we’ll try any way to

20:28

to reduce the expenses it doesn’t always

20:30

work out but

20:33

just constantly

20:34

testing the market and asking i mean we

20:36

send out

20:38

uh

20:39

links to residents on probably a monthly

20:41

to quarterly basis asking them what they

20:43

like what we they want to see improved

20:46

um and getting their feedback which

20:48

provides us a lot of

20:50

um good information to just make their

20:53

lives in the community that they love

20:54

them better

20:56

yeah

20:58

you mentioned price elasticity i think

21:01

that’s a particularly in the a-class

21:03

space right if you provide true value

21:07

residents have the

21:09

ability to pay for it right so that’s

21:12

where

21:13

good or excellent property management

21:16

plays a massive role right

21:19

if you if you have a great property with

21:22

great service and

21:23

even though you have to pay for it

21:26

uh those tenants tend to be willing to

21:29

pay for it right and

21:31

obviously in c class that’s a little bit

21:33

of a different story in b class it’s

21:35

still a little bit more challenging but

21:36

particularly on a class

21:38

uh you have that ability if you if

21:41

you’re just above the rest right

21:44

yeah and i mean

21:46

we haven’t tested this out but we plan

21:48

on doing it on this new deal in orlando

21:52

is putting in electric

21:54

vehicle chargers and seeing if that’s an

21:57

amenity that the residents want as we

21:59

were

22:00

well i took a trip to houston with a

22:03

friend and he had he has a tesla and we

22:06

had to stop multiple times

22:07

and it was

22:09

it was honestly kind of frustrating

22:11

because it extended the trip a couple

22:12

hours and i was thinking like if the

22:15

resident

22:16

lives on a property on site that they

22:18

don’t have a charger that’s just a added

22:20

inconvenience that they have to go fill

22:22

up however every 300 400 miles

22:27

at a charging station but if they had it

22:29

at their

22:30

house essentially

22:32

maybe that’s something that brings them

22:34

back and

22:35

maybe they’ll

22:37

um recommend it to their friend to stay

22:39

here so for the cost of actually

22:41

installing the charger it’s not that

22:43

much and hopefully we’ll add if we can

22:45

get a few more leases it was worth it

22:48

yeah definitely

22:49

that really brings up a

22:52

question how many of of uh electric

22:55

vehicle owners

22:57

are

22:58

renters right because that that’s

23:00

definitely

23:02

is a challenge when you’re a renter to

23:04

to charge your vehicle overnight right

23:07

so that’s kind of the business model

23:09

uh everyone who has an electric vehicle

23:12

you plug it in at night

23:14

when you come home and then you have

23:16

you’re fully charged in the morning

23:19

but if you cannot do that easily

23:23

it’s it’s very hard to

23:25

to to own a vehicle even if you just

23:28

drive 30 or 40 miles per day because

23:30

it’s very hard to charge in within a

23:32

city outside of your own residence so it

23:35

would be interesting to know what that

23:37

percentage is and

23:39

maybe you’re able to carve out a niche

23:41

there with with a sufficient number of

23:43

of charging stations so that

23:46

all the test owners and all the others

23:48

and maybe now the f-150 future f-150

23:52

owners

23:53

will be all uh

23:55

flocking to that property right so

23:57

that’s a certainly a value-add element

24:00

there

24:01

john talked about secret sauce

24:05

now i think

24:07

the question there also is what was your

24:09

secret source to win that deal right so

24:11

we

24:12

uh as you know prizing in in florida and

24:16

orlando

24:18

is is pretty crazy right so we have seen

24:23

as i mentioned earlier c-class

24:24

properties uh that that are trading at

24:29

mind-boggling numbers

24:31

uh that are

24:32

depending on the set market hundred and

24:34

fifty thousand plus

24:36

uh

24:37

and you’re able to capture a

24:42

virtually brand new class a property

24:45

for for

24:46

for a pretty reasonable price right so

24:50

how how were you able to achieve that to

24:53

competing with other players i would say

24:56

you’re obviously it’s not a very big

24:58

property but it’s still

25:00

relatively close that even institutional

25:02

players would also play in that in in

25:05

that sandbox so how were you able to win

25:08

that deal

25:09

over others that were

25:11

undoubtedly competing for the same

25:13

property

25:15

yeah that’s a great question and

25:19

to be honest part of it was luck

25:21

um but i think also with that

25:24

we

25:25

had the preparation to pounce on the

25:28

opportunity um we were in florida the

25:32

week that

25:33

it was it started to be a marketed deal

25:35

and it came out and we toured it i think

25:38

the second day it hit the market and we

25:41

asked the broker can we preempt it and

25:44

he’s like

25:45

and he’s like we’ll see and luckily we

25:47

had a relationship with a broker our

25:50

property manager that we’re going to

25:51

bring in they had a relationship with

25:53

the broker so they’re able to give us a

25:55

good word um we had a phone conversation

25:58

with a seller and

26:00

a lot of the things they were looking

26:01

for in a buyer

26:03

we met their criteria

26:05

and um

26:06

i think the final piece of it was

26:09

the seller there a development company

26:12

and they were focused on

26:14

four or five other developments that

26:16

were

26:17

frankly

26:18

more than double the size of this one so

26:20

i think they kind of took the eye off

26:21

the ball they had their loans maturing

26:24

on july 5th

26:25

and

26:26

which is coming up really quickly and we

26:29

basically told them hey if you go

26:31

through the marketing process you aren’t

26:32

going to be able to close on or nobody’s

26:34

going to be able to close in time so i

26:36

think there’s a lot of confluence of

26:38

events that helped but just us taking

26:40

those steps because there’s a lot of

26:42

deals i’ll ask the broker can we preempt

26:44

and nobody’s ever said yes so we were

26:46

kind of surprised but we were grateful

26:49

because every deal we went through the

26:51

marketing process on since last

26:53

september it’s been bid up one to

26:55

probably three or four million dollars

26:57

so we felt like we got

27:00

we’re coming in at a i won’t say a good

27:02

price point but we’re coming at a very

27:04

fair price point and maybe even a good

27:06

price point compared to some some of the

27:08

new vintage comps in the area and um

27:11

that was just the relationships we had

27:14

been working and building over the last

27:16

few years i think paid paid off

27:17

dividends

27:18

yeah that’s a that’s a great story right

27:21

it’s uh kind of surprising that the

27:25

major developers take the eyes off the

27:28

ball right

27:30

knowing that you have a maturity you

27:31

need to do something and somehow

27:35

it’s still sitting there until they

27:37

realize oops we need to do something

27:40

yeah and through that first conversation

27:43

and then the seller i was

27:45

pleasantly surprised but they showed up

27:47

during due diligence and through the

27:49

conversations we’ve had

27:51

we’ve just realized how mismanaged that

27:53

property was and they had three on-site

27:56

managers in

27:57

less than a year

27:59

and it just showed they were kind of out

28:01

of sight out of mind and had their

28:03

mindset on bigger

28:05

uh

28:07

bigger projects than um fish to fry yeah

28:11

yeah well it was great for you right

28:13

that you were able to get in there and

28:16

that the preemptive offer was accepted

28:19

so congratulations on that

28:21

thank you

28:22

uh

28:22

so thanks again uh uh it was really

28:26

great to have you on uh today sam uh

28:30

how can our listeners reach you

28:33

obviously you have investment

28:34

opportunities but also just to to get uh

28:38

not just to get on your list but also to

28:40

hear from you how if someone has a

28:43

question how you

28:44

uh were able to evaluate the market in

28:47

florida right so since you’re out of

28:49

state but uh we’re still able to win

28:52

that deal

28:53

uh how how are our listeners able to

28:55

reach you

28:57

yes definitely anton thank you for

28:59

having me on and um

29:02

listeners can go to my website

29:04

batescapitalgroup.com and there’s you

29:06

can fill out information there or i have

29:08

some free resources that they can sign

29:10

up for also you can call my cell phone

29:13

at 972-855-7654

29:16

and i’d

29:18

love to talk real estate or potential

29:20

investments with anyone

29:22

yeah great to hear so now your cell

29:24

phone will blow up hopefully hopefully

29:27

not in the middle of the night

29:30

i i sleep is important to me so i

29:32

silence it yeah

29:34

i’m open most of the day

29:36

okay great

29:38

thanks again sam and uh uh good luck

29:41

with uh with your closing in orlando

29:43

well thank you anton and john it’s great

29:46

talking to you and um look forward to

29:48

speaking to you again yeah same here

29:51

all right