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Key Insights on the Economy, Tariffs, and Scaling Your Business Success

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In this episode of Headlines & Project Pearls, Josh and Reid delve into the latest news and key business strategies that shape today’s economy and personal growth. They break down the recent State of the Union address and its potential impact on the U.S. economy, along with the Supreme Court's decision on tariffs. Beyond current events, the duo shares powerful business insights, discussing the importance of speed, accountability, and curiosity in the workplace. Reid also opens up about his experience with a recent cash-out refinance, while Josh underscores the importance of nurturing high-level relationships. They conclude with tips on how aligning tasks with your natural energy can supercharge productivity.

Key Takeaways:
✔️ How the State of the Union and Supreme Court ruling affect the economy
✔️ The importance of speed and accountability in business
✔️ Why being relentlessly curious can drive success
✔️ Reid’s insights on leveraging cash-out refinancing for growth
✔️ How to maximize productivity by aligning tasks with energy levels

🎧 Tune in for a deeper understanding of real estate investing strategies and how they can unlock your financial future!

🔔 Subscribe for more on how smart investing and wealth-building strategies can shape your financial journey.

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SPEAKER_01

Uh I think the way we're supporting our business in the US, the way we're redefining the value system of our political agenda and trying to retrain Europe.

SPEAKER_00

There's like too many referees you can't get anything done. It's ultimately makes things too expensive for business owners to do a startup or or build a widget or whatever it is.

SPEAKER_01

I go to this state because I know they'll work with the state and they have two tax exemptions with the state. Okay, it's not like tax money, they got a tax and give it to me. It's like tax exemptions.

SPEAKER_00

Right? I just had a thought of um just the strength of going narrow indeed in a specific market or you know the general area, like the value, right?

SPEAKER_01

Because I don't know too many people that are like, when I'm working with people, you know, I meet with them, we agree what needs to be done next, and I'm checking with them, right? Firm but fair. I'm always checking with them, right? Holding people you agree very good at this, but like you got to do that.

SPEAKER_00

No, I mean I feel like that's such a big one. Whether it's your practice, whether it's in your investments, whether it's a stock, it doesn't matter. Like that accountability piece is so powerful.

SPEAKER_01

To weekly headlines and project pearls. In headlines, we unpack this week's biggest stories and share how they're shaping our own personal wealth-building decisions in real time.

SPEAKER_00

Then in Project Pearls, we'll hold back the curtain on our real estate deals and share the wins, the challenges, and the learning opportunities.

SPEAKER_01

We have a great headlines and project Pearls show today. With me is the Sultan of Smart Money, Dr. Reed Faudette. Reed, happy Friday. How are we doing, sir?

SPEAKER_00

Happy Friday, happy Friday. Um I'm good. I'm good. I'm excited for the weekend. It's been one of those crazy weeks. And so ready just to like unplug for a little bit, enjoy time with family, all that. Maybe have maybe have some wine or margarita or something.

SPEAKER_01

A glass of wine. When you're running in fourth gear all week, right? Fifth gear, it's it's nice to drop it down in the first or second for an afternoon or a day, right? Just kind of recharge. Yes. You know, I noticed that the last weekend. Uh I took Saturday off. I usually work a few hours every day. I took Saturday off and I came like Sunday morning and Monday morning like a freight train. Like I was just getting stuff done, right? And you try to reflect on like why I was killing it. It's like I took Saturday off. Your brain just uh recharges, right?

SPEAKER_00

Yeah, yeah. When you go just like a workout or whatever, when your mind is fresh, you can attack everything. I even noticed this with clinical practice, right? Like when you're practicing five days a week versus like two or three, right? You can come at it so much harder, so much fresher, because you know you don't have to keep as much in the tank because you got a break coming. So yeah, there's there's a sweet spot. There's a sweet spot. It's it's hard to find sometimes. How about you? What's going on with you this weekend or family?

SPEAKER_01

Yeah, just uh we're we got a ski race this weekend, so we're gonna head over to Montana. It's not far, it's like an hour and 45 minutes from here. And um, we got a hotel room in the hotel with like a pool, right? So all the ski race kids are gonna do you know the swimming and go out to dinner. Uh grandma's gonna come up and and uh help and uh should be should be fun.

SPEAKER_00

So yeah, we spent uh we spent a lot of time last weekend at my wife and I Addison just trying to come up with stuff for the next like six months, like hey, let's book this Airbnb here, let's invite family for this. Will this work? Just a lot of that kind of six-month window planning, which is a lot of fun because then it gets you kind of excited for that that next quarter, the next month. So yeah.

SPEAKER_01

Important to have something to look forward to. That's one of the best things about vacation is just knowing that it's coming. Anticipation. It's a healthy habit to to book those in advance. Yeah, yeah. But I like to do it for the year as well. Um, all right. Uh, let's move on to headlines. Uh, what's new in the news this week? Uh Reed.

SPEAKER_00

Well, the State of the Union happened, which was, I guess it was the longest State of the Union ever. I heard that stat and I'm like, I don't know if it was it was like 160 minutes or something crazy. I can't imagine standing that long.

SPEAKER_01

I imagine Trump's trying to set as many records as president as he can, right? He's like uh he's like an ego achievement guy, so sure.

SPEAKER_00

Check that box. Check that box.

SPEAKER_01

Longest ever winner.

SPEAKER_00

Did you end up did you tune in and watch it, or did you just get the highlights?

SPEAKER_01

I I got the highlights. I mean, um, you know, I've I've heard this uh quite a few times uh, you know, lately, kind of looking at the economics about where we're getting set up as an economy. And I really do uh believe it. Uh I think the way we're supporting our business in the US, the way we're redefining the value system of our political agenda and trying to retrain Europe back to more of that uh agenda, too. It's just really like, you know, your citizen focus. How do you help your people do well, right? Your businesses, your middle class, how do you uplift the poor? Like, like they're really focused on that, removing waste, fraud, and abuse, um, freeing up regulation, right? Like unshackling entrepreneurs, unshackling companies to to just go get after it, right? Unshackling the banks. Um and so the the for the phrase I've heard quite is like really setting it up for a golden age. Um and then for everything I've seen, like numbers-wise, like I see it. I mean, we we we've talked about this before. We could have a really high uh GDP growth this year. Um, so that's one piece. The next one is the border. You know, it's you know, we've secured the border, we're trying to get rid of, you know, really focusing on criminals. And and then I really hope that we're gonna pivot to, you know, how do we um the people who are still immigrants who are here who are not criminals, how do we give them a path to becoming law-abiding citizens, right? How do we do that? And then how do we open up the borders uh with you know a good due diligence process for people coming in, right? Um, get a queue going because you know, we want smart people coming to the US, we want hardworking people coming to the US, and uh we we want to grow our population. I mean, population growth has so many positive uh economic um I'm a little worried because uh uh you know, people having less kids and us uh bringing down the the immigration, right? Like like that the that like a negative population growth will just really hurt our economy. So I'm and I and they're smart, these guys know these things, right? So I'm really hoping that they they turn up that nozzle uh soon.

SPEAKER_00

Uh we're doing our we're doing our part, Josh, because I think the uh the average couple has like 1.9 kids, and we're both at three. So, you know, we did our part. I don't know.

SPEAKER_01

I still see those guys with like four, five, seven kids, and I'm like, dude, I gotta step up. Uh I feel like uh I need to do better. Uh so uh, but yes, we're not we're not at average or below, right? Um you know, the trade tariff stuff, you know, I I I believe in the tariffs. I I do believe we're we're creating a better uh environment for for manufacturing in the US. I I do believe we're like equaling out the the trade deficit. I do believe that'll continue to have positive impacts uh for our economy. Um there's certain things, like I don't want to get political on just like how it affects the economics, but like things like the the just restriction of free speech and and um just uh not upholding our our criminal laws and those kind of things that you're just seeing a lot in Europe. Like we had a really strong shared value system with Europe, and it made our like our post-World War II, it made our economies do quite well, right? And we've really shifted the focus, and it's really shrinking economies, right? It's either styming them or shrinking them. So really getting back to that same like value system. Um, and it's not new, it's like stuff from economics from the last 200 years, these value systems, these thoughts, these concepts, getting back to that as like our core value basic system for our governments, I think will be fostering like very fertile soil.

SPEAKER_00

Um I wish I would have spent so I I've listened to a couple podcasts recently where you listen to people who are like European-born people, and their perception of Europe is pretty negative. I mean, at least the ones that are economy focused, right, and immigration focused, and they kind of speak to the problems of Europe. And then they look to the United States and they're kind of like, at least they're doing these things right. Like, don't fall into the trap that we fell into. I mean, there's uh the this example after example of these countries that have wrecked their economies with over-regulation and um uh I don't, you know, too much immigration that has changed certain things within the country and just a lot of things, a lot of problems. And so you can see that at least those are trying to be addressed in the United States, whether you like the approach of how they're being addressed, they are problems that that have to be focused on. Um, but one of the big things they talk about over in Europe, and I wish I would have spent a little more time researching this, but basically, if you just look at regulation alone, so the problem the problem keeps basically Europe has like over-regulated itself, right? And we've done that in the United States to a certain extent, which just bogs everything down. There's like too many referees, you can't get anything done. And so ultimately it makes things too expensive for business owners to to do a startup or or build a widget or whatever, whatever it is. So they tend to go to a place where regulations are less, and therefore their dollars can go further towards building whatever business they want. And so it was like the number one thing you can do, he said by far. This this was a economist he was speaking to, he's a professor, and I can't remember his name, it's just deregulate. Like the what it can do, it's like a 300%. If you just deregulate, it's like a 300% boost to the economy on just that one lever alone. And it that that's a big part of what Trump's trying to do. So um, like them, hate them, at least you can't you can't argue with like that would speed things up.

SPEAKER_01

And you see that too in like some of the countries in like the Middle East, right? They're really just like taxes, regulation, they're just like pulling this up, they're making it very um, very attractive to move there, um, to for both like successful entrepreneurs and and um the wealthy, and and um yeah, you want to be the place that people want to move. Um I hundred percent agree. Um so we'll see. Uh, I think that was it on that one. Um so I think those were kind of the main takes I got on that. Uh the next one was the uh Supreme Court ruling, right? Um, ruling that the the how the approach to tariffs that was used by Trump administration um was not upheld. Um, you know, and then immediately I started looking at it. You know, what's Trump's response? What's the sense? Like all the guys have been leading the tariff, Lutnik, and and their basic approach is like, we got these tariffs and we're not we're not gonna stop. Like we believe in what we're doing, so we're just gonna use these other strategies that are available to us. There's a few other ones to implement or just maintain tariffs. Maybe they change a little bit, but they're like, no, we're we're doing the tariffs, and you can rule all you want about this way, then we'll just do it this way, right? They're just committed, passionately committed to their vision.

SPEAKER_00

Um, so wasn't wasn't it kind of interesting? I I think I maybe I saw this clip of Trump or something, or maybe it was a tweet that he can basically wage war on any country he wants, but he can't he can't uh tariff other countries. I was like, that's kind of an I didn't think about it like that, but that is kind of crazy. You can't put economic, you get economic sanctions on certain countries, but you can't tariff them. And yeah, just is just interesting.

SPEAKER_01

But the rules of our government and how it's set up, yes, okay, better than m almost all of them, how they were set up, right? The freedom of speech, we have these like fundamental pieces, but it is interesting how um there's so many things that just don't make common sense today, right? Uh in Washington, um, some of the legislators are trying to put together like an income tax in Washington. They've tried about 10 times in the last 80 years, 100 years. And um it's it's in our constitution to not have one. So they're always trying to like find some angle or verbiage to like say, well, it's not an actual income. I mean, it's this, right? Yeah, and and um, you know, there's online like you can like vote like as a citizen, not a vote, but like say if you're like pro or con, it like 90% have voted con. Okay. But the people in power uh believe that we should have an income tax in Washington, and our budget, they just they they can't stop spending. So our budget just keeps going up, and so they're trying to implement it, even though 90% of the citizens have said they don't want it, right? Yeah, so there's there's this whole thing, it's like, wait, are you representing us? Like 90% of us are saying no, so why are you continuing to push forward? It's like you know better, right? And so stuff like that, you're always just kind of like uh I don't know. Our political system has some flaws, and we need to keep fixing it, or else it'll it'll bog us down, like you said, all the regulation.

SPEAKER_00

And there was a there was a quick clip or something I heard from um Huckabee getting he's the ambassador for um Israel, right? And he's getting interviewed by Tucker Tucker Carlson, is that right? Is that saying that right? And basically kind of walked into a trap of like, if most people in the United States are against a war, right? Let's say 70% in the United States decides to move forward with war, you know, like why does their opinion even matter, right? And he and he's like, of course everyone's opinion matters, then why does the governing body, right, the representative democracy, not actually move in step or take action that reflects what the public wants or what the voters want. It's just kind of interesting. But like you said, it's it's this kind of elitist mentality that we know best. And regardless of what the people want, we're gonna do what we think is best, so yeah, just thought that was interesting.

SPEAKER_01

It is kind of hard, right? Because like Trump's doing the same thing. Like, I don't think most people would have signed up for terrorists, right? Because we're like, what? But like he's like, no, no, we're gonna do this. This is gonna be good, right? So it's like it's true, yeah. On the flip side, it's uh so yeah, I don't have the answers. Uh fun to talk about though. Fun to talk about. Uh interest rates, you always like to hit on that. Um, the residential ones are dropping a little bit, but I I was doing some research, you know, the the if you look at like the the long the long tail of like the bond market, right? Like like it's just not showing interest rates going down right now. And so, you know, the feds can lower their numbers, but but but the bond market like you know actually decides on like interest rates, right? And it's the same stuff. It's like, look, if we're if we don't have a balanced budget, right? Our or at least like a three percent deficit, if our deficit's growing as fast as it can, um the the people still aren't buying that the US is gonna recover, right? And so even though our economy is starting to look really good, um they're really gonna have to over the next year, uh, the Trump administration just somehow show a path to balancing the budget, right? I've heard Scott Bissent talk about his rules 3%, 3%, 3%. I've heard um you know talking about economic growth, right? The bigger you grow, the you know the more tax income, right? And and hey, we're cutting programs and we're doing these things, but like like the math has to show that we're gonna get there, or I just don't think the bond market's gonna change.

SPEAKER_00

Um, which is gonna mean the interest rates stay the same.

SPEAKER_01

Stay stay the same. Yeah. Um I I but that just just really hard because people want to buy homes and and um the administration wants people to buy homes, and um yeah.

SPEAKER_00

Isn't the only other thing, uh correct me if I'm wrong, but isn't the other thing is if the government decides to print money to buy their own bonds to drive demand, that'll lower yield too. But that would require that that would cause a lot of inflation.

SPEAKER_01

Yeah. And then it just then it gets back to the same issue, right? Now you've created more inflation, if you've created Yeah, so it um I just think it's like if I'm a company and I create a budget, right, and I'm negative, right? Significantly, and I don't give a clear plan that you can buy, like, oh, I buy that plan, Josh, to get us back positive, right? You you're not gonna bet for me, you're gonna bet against me, right? And so it's the same thing. We we we just don't have that. We don't have a clear plan on this is how we're I think they've made a lot of progress, right? But it's it's still not clear how we're gonna deal with this uh escalating debt problem.

SPEAKER_00

Yeah, yeah. They they've they've said we're doing all these things, but to translate into actually, you know, the it's you're not seeing it. That's I that's what's hard. It's like I'm glad you're doing these things, but how does it actually translate into the outcome we want?

SPEAKER_01

It's hard. And it's the legislators, right? It's like the president isn't supposed to be doing all that stuff, the legislation is, but the legislation can't agree and they can't act fast enough. And so it's like, how do you even get there with our system? Um we'll see. All right, Project Pearls read. Uh, hands-on stuff that that you and I have have learned this week that that can help our audience.

SPEAKER_00

Yeah, so uh I made a little post in our private Facebook group about this, but we just did a uh cash out refinance on one of our properties, so that was cool. Umgratul. Thank you. Yeah, we were about to we pulled out about 55% um of our initial down payment, which is pretty good. Um I'll tell you we should have been over 100%. I'll explain that in a second. But uh but that was we'll still take the win. We'll take the win and some lessons were learned. Um, but even after that, you know, we're I think next year the cash and cash return is gonna be like 17, 18 because of at post refi, which is gonna say if you if you were thinking it was 100, it was only 50, the cash and cash is probably probably still pretty good. Yeah, yeah. So that's that's pretty neat. And so I just made a little post about like, you know, what you can do. You didn't we didn't achieve the infinite return, right? But to still be able to take out 50% of our capital and redeploy it into the next asset and do the same thing, I mean it just starts compounding pretty quickly. Um, and just some numbers. So we bought it at 5.4 million with an NOI of 504,000, which is roughly you know, just under a 10 cap. Uh the initial appraisal was 7.2 million at a 7 cap. That's what they appraised it at. The refi appraisal was 7.2 million at 11.75% cap rate. So they they they inflated the cap rate, the next appraiser, by four, right? Almost five percent. Because our now NOI is eight hundred ninety-three thousand right now. What's going on? Isn't that crazy?

SPEAKER_01

What's going on? What what's the why there? I've never seen an appraisal on a multifamily building in a 11.75.

SPEAKER_00

Um what's going on? So my guess is like they s they looked at the old appraisal or something, and they were like, we're not gonna go above this. We're not gonna give you more than 100% of your capital back. Because if you look at just if we kept the cap rate the same and we boosted our NOI by almost 400,000, our value would be 12 million dollars. How many doors? 184.

SPEAKER_01

So you're you're asking for a sixty-five thousand a door uh evaluation, and they're not giving it to you.

SPEAKER_00

It's you know, what's a C minus property? You know, it's older, it's you know, smaller units, it's not a B class, you know, you know, but still this is weird.

SPEAKER_01

An appraiser is supposed to be an independent third party. Okay, that that they need to go it, they need to testify in court why they valued something the way they value something, if need be, right? Um, if I'm a lender, yeah, I'll I want to lower my risk, right? So I get it from a lender point of view if the lender was running this, but it's supposed to be an independent third party. So there's something going on here where like the appraiser values the banking relationship. They had a conversation with the bank and they're giving a number of the bank. Wants. So, you know, something like that. I'm not saying it's that, but there's there's something fishy going on here, um, for sure. Um, and I don't know what it is.

SPEAKER_00

So, yeah, that was just like I've never seen such a crazy jump like that before. And so I we're just like, you know what, we'll take the little win. You we tried to find it, but the lender's policy is also we'll take the lower of the two appraisals. So if you requested another appraisal, it doesn't matter. If you have the lower one, they go with it. So that's kind of the booger too. But basically, it came back to is like, well, we can always refinance down the road with a new lender, right? And kind of go through the whole thing again.

SPEAKER_01

Um, and so I can refinance with the same lender, your original lender?

SPEAKER_00

We didn't refinance with the same lender. We we went that was a bridge lender, so we refinance with the more a local lender. Um, here's part of the lessons, too, is we were planning our our initial lender was a bridge to agency lender. Sure. Okay. So they were looking at all of like, okay, here's the criteria you need if you want to get into agency debt, right? And so we we updated the units to certain specs, etc., etc. And then at the end of it, we still didn't qualify for different reasons. Like they were saying that one, I think for Freddie, it was the tenant profile. So you have you can't have certain criminals or whatever in there, right? Like they have to have a pretty clean wrap sheet for Freddie. Um, I don't know what the percentage is, I can't remember, but so that was a little bit, right? And you don't want to like change your tenant profile over when it's working, so you just kind of are like, okay. Then we went to HUD. Uh that we were looking like HUD was giving us like a pre preliminary appraisal of like 11 million when they're looking at the numbers. So that's more in line with what we were talking about. But they had some strict criteria being near like public transit and stuff like that that we didn't quite qualify for. So this was kind of the lesson learned is even if you have like a bridge to agency lender that's supposed to help you kind of walk you through what you're gonna need, you really need to know like HUD insider out or Freddie insider out so that you really know that your property will will um qualify for that agent agency loan. So that's just a lesson that I mean, have having not gone through it before, did you guys use a debt broker? Yeah, we had to use a more use of mortgage broker.

SPEAKER_01

So usually the debt brokers have like who are really experienced know that stuff, right? If they're really expensive with HUD, they really they know that stuff on the front end, they'll be like, oh, you won't qualify. Um okay, this is a good lesson. I mean, this is real world, right? Like, like an 11.75 cap rate, like stuff like this happens. It's still a win, right? It's still a win. It's just like you learn and you're like, okay, uh I'm ready for next time. Um, and that's what people say. Like, I was on a podcast today, and they're like, you know, everybody has losses, and I was thinking about that. Um, and these are the type of losses I typically have. It's like it's not a loss, it's like a it's a hit or a setback, right? It's a learning opportunity, right? Like, how how could I have one more next time? Um so that's that's yeah. Okay, any other uh learning things from this week?

SPEAKER_00

Just a quick one. So we did in in one of our uh development projects, we uh we engaged a law firm to help us get a um an access road paid for by the local government. So that it's supposed to be like an eight million dollar access loan. And so they they did like uh, or excuse me, eight million dollar access road would be what the cost would be. Um holy cow, that's expensive. Yeah, so the the thing that was nice is they did like vetting for like three months before they'll like have you sign the engagement letter because they want to make sure that they can proceed with it. Because I think it's pretty much done on contingency, right? Like they have to be successful at it, but and then they get paid off of that. Oh nice, good. So yeah, so we'll see if so that was a good sign that they wanted to move forward. Um, we'll see if it pans out or not. But yeah, that'd be pretty cool. That's like eight million dollars in instant equity.

SPEAKER_01

So yeah, that's awesome. And uh, we can get the the city, the state, or the county to pony up. It's always helpful. Yeah, uh that's uh that's all I got. Okay, so you know, I do a lot of stuff. Um, but you know, one thing I was thinking about is you know, I'm a lead developer on some things, and what I've realized in life is like after running my dental practices and stuff, I am no longer a patient individual. I used to be a very patient person, I'm no longer patient, and I'll get in development meetings with other folks and like I try to stay even killed, but like I get emotionally triggered by slow. Um and it's interesting. Um, it I do think it's like a little bit of weakness to like not be like even keeled all the time, but um you know, I was I was uh talking to one of my buddies very successful, and he he showed me like these TikTok videos that he watches like every morning just to brainwash himself, right? And one of them was all about speed, like doers, like winners, like like multi, you know, hundred millionaires, like they get stuff done fast, like they're just talking about speed. Like somebody calls you, you're like, great, I'll fly down there tomorrow. Like, like you're getting stuff done, right? And that's just how my brain is like now. And so I was like, oh good, like I'm I have this habit, right? But even around like the other like developers and other, like it's just like whoo. So, so I think the you know, how do you be successful? You have good habits and then you just apply those habits and it compounds, right? So I think the one habit I want to tell people is speed. I I think you need to analyze, make smart decisions, right? But you also need to be a mover, a doer. Uh, I think that was just re-emphasized this week for me how important that is.

SPEAKER_00

Um I feel that for sure. I it's and I thought it was dentistry that did it to me too, because we move so quickly and we're so so if like you're a high-producing dentist, you are you are so cognizant of the time frames and what you accomplish within them. Like every every minute matters, every hour, every day for the month to win the month, you win month after month, you win the year, right? And so we really know how to like compress time and get a lot done. And any other industry moves so much slower, they don't value their their progress within a day. So it drives me crazy too. It drives me crazy on asset management. We're working with property managers. I'm like, why haven't we implemented? We talked about this a week ago. Why has this not been done? Drives me nuts. Bankers, so I'm with you. I I'm I'm a fast mover. I'm like, what are we doing tomorrow? What are you guys doing tomorrow?

SPEAKER_01

We're still talking about the same thing for like the third time. I'm like, what is going on? Just call them and come up with an answer. Like, right? It just drives me banana. So that was what it was. It was like something one of the developments. I'm like, why do we not have an answer here? No, we're not gonna set up a meeting to talk about this. We've been talking about this for three weeks. Just call the guy and ask him, what are the pros? What are the like, why are we doing this? What are the pros of doing it? What are the cons? Is there a better alternative? Yes or no, and then we're done. Like, I I don't know why we're doing this. So move fast, people. Like move fast, speed. Don't don't don't be all like, oh yeah, yeah, like group think, yeah, let's collaborate, and like you're just wasting time. Just call somebody, get the answer. Um, we had a couple subcontractors, one on a personal thing I was doing, and then another one on one of our projects, get all weird. This is normal, folks. You set you set up a structure, right? You you you long-term relationship, you frame that with people, right? And you're gonna see people execute and respond to that kind of clarity and that kind of long-term relationship focus. Like some of our cup contractors, man, they've been just killing it on our bids. I'm talking like hundreds of thousands of dollars are saving us, right? I'm like, I like these guys, right? And they just keep coming back for more and they want to be investors on our projects. And I'm like, yes, yes, yes, and yes. And then you'll get like one who just starts going off in la la land, right? They don't do what they say they're going to do, they start making stuff up, and you just gotta be level-headed, clear with them, and move on, right? Like you can't go to the Super Bowl unless you got a strong person in every position, right? So don't hang on to the stragglers, they're gonna identify themselves, the low operators, low integrity, whatever. Just move on, right? And just be very clear to them. Don't let them run the show. You are running the show.

SPEAKER_00

Good, well said, yep.

SPEAKER_01

Okay, um I think another one is is so you've got bad actors, but then you've got like ignorance, people you like that you gotta hold accountable. What's up? Nothing, no, I thought you said bad actors. That's like uh maybe of ignorance. Oh yeah, ignorant actors too, right? Those ones it's like you're you know, hungry, humble, smart, right? You gotta hit the smart category. So be good, but uh like the hold people accountable. So, like, and don't be afraid to do it to folks who are older than you, okay? So when I'm working with people, you know, I meet with them, we agree what needs to be done next, and I'm checking with them, right? Firm but fair. I'm always checking with them, right? Holding people, Reed's very good at this, but like you got to do that, okay? Even if they're high-level people, even if they're great, they're positive. You got to keep holding people accountable, right? You know, hey John, how's it going with those two things we talked about, A and B last week? Like, are we there? What's next? Where are we stuck, right? And then you got to let them know, hey, I'm okay, great. Well, is it okay if I reach out Monday and check in? Right? They know you're on it, right? And so out of the 30 things they got to do that week, they're prioritizing you because you're a leader. Yep.

SPEAKER_00

Good. No, I mean that I feel like that's such a big one. Whether it's your practice, whether it's in your investments, whether it's a side, it doesn't matter. Like that accountability piece is so powerful. You'll get so much more done because you're leveraging people. And you get the best way to leverage people is hold them accountable. And then you'll quickly find out if they're a strangler, like you said, and you got to cut them loose, right? You'll you'll filter them out so much faster, and you'll get that core group that kick that kicks butt and get stuff done for you. But it it's you're the leader, so you got to hold them accountable.

SPEAKER_01

And they respect it. Like, yeah, you start doing it with people, and like they're like, Okay, you're kind of holding me accountable, like I gotta get going. But they're like, I want to do more stuff with you because I know you're doing that with everybody else, too. That's the kind of guy I want to work with, right? So it's a good thing. Uh, and I try not to get too specific in case any of these people are ever listening. But like I want to give you guys actionable things, but I have to like kind of walk the line there. Yeah, um, okay, so another thing that I was reading a uh podcast this week, or uh a story, sorry, um, from a podcast on like skills that are valuable in like the AI age, right? We talked a little bit about this, but but one of the things I describe myself as relentlessly curious. This is who I am, right? I'm constantly looking stuff up, I'm constantly asking questions, just how my brain works. And that was the main skill, the main point of this article is people are relentlessly curious because there is no lack of information, right? With AI here now, you just type in what you want to know and you can know that information, right? So, what is the skill? It's it's being curious, right? Are you actually typing it in? Are you constantly you know doing that, right? So, what I do is I every week I just get instincts about things and then I act on them. Okay. I met with one city, and the person running the incentives for that city, which I work with a lot, they told me, hey, yeah, sorry, my boss went to go work for this other city, which I work in maybe a third of the time. And this is like the head of the incentives person. And I go, Oh, I already know that other city is putting together a new economic development plan because one of the city members told her told me, right? And I already know they're trying to look at like incentives. So I was like, I should call the incentives person who left this city that gives a ton of incentives, and just see what's going on with it, the other city, right? Relentlessly curious, okay. So uh I have that phone call with her, and she gives me like a bunch of information, which is like I can start building my acquisition plan for that city the next year, right? And she put me in contact with a guy who does like this economic impact stuff for that city, right? And then I talked to him the next day, and he's like, hey, by the way, we have$1.2 million that we need to allocate, and we're gonna probably open this up in May. And it's only every like six years they do this, so it's not like you got a bunch of people who are waiting every year for this, right? Nobody's waiting. There's$1.2 million that's gonna be there in May. And I asked him about like the last time they did something, which is they had some land they and they really did it. He goes, Yeah, only two people applied. Okay, so you need to follow your instincts and you need to be relentlessly curious, or you're not gonna find the$1.2 million pot of gold that only two people are gonna apply for because you're not asking. Right? So trust your instincts, be curious, and then keep these good relationships, right? All these people I'm building positive relationships with each point because you never know. Oh, the other thing, the guy that I asked about this thing, we'd found another uh set like uh another two million bucks like three weeks ago that we were gonna apply for. Okay. I started telling him about it. He goes, Oh, that sounds familiar. Tell me about that project. He's like, Yeah, that sounds super familiar. Turns out this two million dollars that was available, we applied for 750. Like, that's what we asked for, but we said we could do from like 500 to 1.2 million, depending on how many units they want us to do. So we give them a range. He goes, Oh, I was just reading your application yesterday. Me and three others on this city are part of the county's board for deciding where those funds go. Wow, right? So and he didn't know me from Eve, right? But now I've built a positive relationship, have a positive impact. I've increased the chances that we get to 775 or 750 that I applied for a week and a half ago.

SPEAKER_00

Yeah. So yeah. Well, so I was gonna just ask you like an order of operations thing. So you you already have land in these areas that you want to do a development project, or are you sometimes seeing that there's money to be had or funds to be had in a certain area and then you go pursue a project there?

SPEAKER_01

That because you want to go when the grass is greener, okay? So when I look at like all my opportunities to develop, if in this city and in this city I don't get free money, okay, go somewhere else, I go to this city because I know they'll work with the state and they have two tax exemptions with the state. Okay, it's not like tax money, they got a tax and then give it to me, it's like tax exemptions, right? And so I know they have that, and then I also know they're taxing and creating these pools of money, right? And so in my brain, it's like if I'm if I'm building over here, I'm competing with everybody, market rate, no competitive advantage. If I'm building over here in this city, I get these tax benefits, right? Yeah, and this one's eight percent, and this one's seven percent. Well, there's a 15 profit margin right there that these other two cities don't have. I don't even need an award for that. I just have to apply for it and show that that's just yeah, tax reduction. So it's like go where the grass is green.

SPEAKER_00

Okay, yeah, that's good. That's good. I I didn't know how it worked exactly, but it makes perfect sense to kind of hunt for those first, and then then you know where the grass is greener. It wasn't always like this, right? We're getting smarter, right?

SPEAKER_01

Getting smarter. Um the collaborative piece, again, super easy. Get things done, use chat GPT. I'm working on a PSA with this group, right? It's really customized in my favor, right? And so by building a relationship, being very open and transparent as I'm building this purchase and sale agreement with them, and then using chat GPT to come up with the initial structure, right? It allows us to like quickly put one together, build trust, and execute. Where if I just sent them an offer with a PSA like this, they'd give me a giant middle finger, right? Uh it's it's a different approach. I paint the vision, why it's a win for them, and then we build the PSA together.

SPEAKER_00

I just had a thought of um just the strength of going narrow and deep in a specific market or you know, general area, like the value, right? Because I don't know too many people that are like, I'm massive massively successful in real estate in these 10 different markets, right? Like you can kind of, but most you have to go really narrow and deep in a specific market, especially in development, because once you get these relationships established, you just want to go deeper and deeper and deeper with them because it just makes everything easier. Um, otherwise, how can you specialize in this area and this type of asset class?

SPEAKER_01

Let me be a little more specific. So, one of the founders of this development company, uh, who's I don't know how long they've been doing this, 15 years, 20 years. They have they're like the active adult, that niche, right? Active adult we talked about, 55 plus, no shared kitchen, right? But a lot of it's like community, right? All in one big apartment building. A lot of activities, pool, you know, peanut, uh, sewing, you know, men's group, women's group. It's just like adult 55 plus who want to be together, right? In in an apartment. Um they have like 30 of these, okay, that they've done over the last, I don't know, 12 years, 15 years. And I was talking to one of the founders, and he's like, Yeah, and you know how it goes. Like, how do we figure it out? We were doing the multifamily development and we had some extra land, and we're just like, hey, well, let's just do a senior one at 55 plus, see how it goes, right? It's random luck, right? And then it worked, and then they just hit repeat because no one else was doing it, right? It's it's like you said, you find that niche that works, and you just follow that vein of gold, just keep at it. That's it, right?

SPEAKER_00

Yep.

SPEAKER_01

Um, I think those are um, and then with high-level people, all the high-level people I work with, 30 million, 50 million, 100 million, 200 million net worth folks, I do check-ins. Okay, I check in with them either in person or uh by phone. You know, hey Bill, how's your project going? Okay, you know, you know, if there's anything I can help with, you know, anything on these areas, any value I can add, just let me know. You know, hope you're doing well, right? I do check-ins, I keep me in their consciousness and I offer to give. Right? Because most of these rich people, family offices, right? People are looking to take, right? Hey, can you invest in my project? Hey, can you you, you know, can you give to this uh nonprofit, right? So so I do check-ins with like go getters, like real important people, and I just offer like how can I help? Is there anything I can do to help? Um, and I think that's another really important habit.

SPEAKER_00

Um so what do you what's your you you're really big into rhythm and habits, right? Like the weekly habit. So what's your rhythm or for that? Like, do you just say like every Friday I want to reach out? Is it what do you what structure what structure do you put around it?

SPEAKER_01

Yeah, so you have to when you build a habit and you you put it in your calendar at a certain time, okay, when your brain actually wants to do it. Okay, right? Because your voice comes through, right? Whether it's on the phone or even in a text, right? So if you're if you know you want to be doing these check-ins, you need to do it at a time of the day where you feel like doing it, right? Or you need to script it. I mean, you're pretty good, you're pretty much a machine, but uh when when I'm trying to be charismatic and personable, right? I need to do it when I feel like being charismatic and personal, not at 2 p.m. in the afternoon, right? And the other thing I do is I always do my energy checks, right? So I so you know the Eisenhower matrix where you put urgent on one axis and important on the other axis, right? And you want to do your urgent and important first, yes, right? And then you want to do the important, but you never want to do the urgent that isn't important, right? It's like it's urgent to you, it's not important to me, right? Like, I don't get caught up in like somebody's emergency that they're making up in their head, and the other one is not emergent, uh not uh urgent or not important, you just don't do it ever, right? Yeah, so I I always like start my day, I write down like um like when I'm gonna try to accomplish that week, right? And then I any frogs or stressors, things that I don't want to do that I've been that are that are there that I know I should do, or any stress in me, I just handle those things first. Get them done.

SPEAKER_02

Same thing done.

SPEAKER_01

Yep, get them done, you said just get them done. Just get it done. And then after that, I Like, I like check my energy, right? What is my passion about that day? What's this like my brain want to do? Right. And if that's urgent and important, I just do it, right? And so if I'm like feeling social and I'm like, oh, I wonder how this guy's doing. I wonder how this guy's doing, right? And I'm like, dude, it would be really good. Maybe it's not urgent, but it's really important to keep up with these folks. Then I just start ping, ping, ping, ping, ping doing it. I send out like eight text messages, right?

SPEAKER_00

Yeah. I think it's to me, I talk about this with our kids too. It's it's like uh you're you're rolling with the current sense instead of against it, right? Like don't try to roll against the current, like flow with it, and you'll get so much more done. And so that's knowing yourself and knowing where you're at, kind of with your energy level, so that you can really take off.

SPEAKER_01

This is why I'm I'm like making grimacing faces right now, because this is an art when you get to this point, because what gets scheduled gets done. So you should definitely block everything, make blockouts, and like this is what I'm gonna do at this time all week, right? But what happens is people schedule stuff where their energy sucks and they put the wrong thing at the wrong time, right? So you you gotta really figure out your energy, your flow.

SPEAKER_00

So yeah, and then you know, yes. So what I've done is if you block off those times and you do it for a little bit, you'll be like, nah, this block doesn't go here. This isn't working for me. But you have the block created, so you just move it to the other spot, and then you say, Oh, this is better.

SPEAKER_01

It's like, where's your mind at that time? Like a good thing we were talking about is is in our dental real estate partnership, right? Like, like posting kind of like um, you know, what's where what's everybody getting done this week, right? Like on Monday, I'm ready to get stuff done. I don't want to talk about getting stuff done, right? So that's a that's a bad blockout for me Monday morning. I like I don't want to talk about it, I just want to do it. But Sunday, when I've had like a little bit of time to reflect and I'm ready to like, what am I gonna get done this week? Like, that's my natural energy state, right? Friday afternoon, I've relaxed a little. Saturday, I've relaxed a little. Sunday morning, I'm coming with a fresh mind. I'm I have energy, I'm wanting to plan my week, right? So I get the most done and I don't have stressful situations pop up with time, right? Like, well, that's a perfect time to reflect on your previous week and talk about what you're gonna get done the next week. You're so I set that block out on Sunday mornings because the task is matched with my natural energy state at that time.

SPEAKER_00

Yep. And the same thing with you and I when we talk about if we do a deep dive on one of these shows, right? Usually it's around something I just wrote. Like maybe I wrote a newsletter or whatever. And right, so I've already did that, it's fresh in my mind. Let's talk about it. So it's kind of it's two birds, one stone.

SPEAKER_01

In the news, why do we talk about the news, right? Because it's like it's it's relevant to us, it's something we want to talk about is affecting our life at that time. Why do we talk about projects that we're doing right now? Not like esoteric, like yeah, yeah, yep, 100%. McKinsey, like number one like consulting, well, depends on who you ask, but like top three, depending on the year, right? We talked about this. One of their CEO, like uh major roles is managing energy. That's one of the like top six things for a CEO, managing energy, right? So this isn't like some foo foo thing. This is like if you want to be a business leader, if you want to get things done, you want to be an entrepreneur, you want to achieve your goals. Um, this has been proven to be a major part of that. So good? Love it. Okay, Reed, always good, man. Have a great uh great weekend with the kids. Uh yeah, you too. Appreciate you, bud. And uh we'll we'll chat next week.

SPEAKER_00

Sounds good. All right. Thanks for joining us today. If you want to connect with us directly and keep the conversation going, join our private Facebook group. We love to have you in the discussion. If you want to see or listen to any of our other shows, you can find them on our YouTube channel by searching Dental Real Estate Partners. Or if you prefer to listen in podcast format, look for us on your favorite podcast app or streaming platform.

SPEAKER_01

Content from Dental Real Estate Partners is for informational purposes only and should not be considered financial, legal, or investment advice. All investments carry risk. Past performance does not guarantee future results. Always consult a qualified professional. Dental Real Estate Partners is not responsible for outcomes from actions taken based on this content.