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What is up, my ProDesign Builder family? Today's live training is how to scale from small projects to large projects. I'm Sam, your real estate development coach, also known as the Pro Design Builder, and I'm gonna be your guide. Alright, so this group is specifically for real estate investors that are looking to make the leap into new development. I would understand this area well because I have had to go through it. So if you don't know much about me, I have been a uh pro design builder or design build general contractor for the last eight years. If you don't know what a design build general contractor is, what we do is we take every part of the process in-house, right? So from the architect to the designers to the uh engineers to the permitting and the construction, all right, all is handled by us, and we're the single point of contact. So for the last eight years, I've done that for my clients, and now I'm doing that for real estate investors. Uh, if you don't know my story, I started out as a real estate investor, and I will go back a little bit so you could understand my story. All right, so before I was a real estate investor, my wife got into med school. And she got into med school, she was supposed to go to med school in the islands, and right before she was supposed to go, she wrote me a letter and she said, Sam, I don't want to go. Alright, so from there it created a lot of confusion, and for me, I was kind of like, Well, if you don't want to go, then what are we gonna do? And she handed me the the book, Rich Dad, Poor Dad. And then after she handed me that book, I read through that book and it really spoke to me. And then she said, Alright, I paid for the seminar, we're gonna go to the seminar and we're gonna dive into real estate. So from there, I dove into um this seminar course, it was really enlightening. It really gave me uh it got my juices flowing, right? It really spoke to me then more than what I was doing at the time. At the time, I was running a body shop in a car dealership. So um, so when she when she did that, and then after we went through that class together, and then we're I I said to her, What was the plan? She goes, Well, you should look into wholesaling and flipping, and then I will be I'll get my license as a realtor. And then that's kind of how we progressed. Uh it took a few months and another seminar course, um, which gave me the confidence to start moving the ball forward as a wholesaler. She did get her license as a realtor, and then we started pursuing projects from there. So the road was not smooth in that in that terrain, to be honest with you, when you have a knowledge gap and you don't know, but I had a friend that worked at the title company, and I knew he was going to be handling all of my title work, so I was confident in calling him to make sure that I did all the proper steps, even though I was very green as an investor, right? So I didn't even know what an escrow was, I didn't even know where to how to fill out a contract. That's how green I was. But something about taking action steps re gets you a reward, right? Which is one of the same things that are absolutely necessary in taking a big leap into new development because there's so many steps that are required that you have to just do. You have to do, you have to be a doer, right? Life rewards people that take the chance and they advance themselves. So, you know, that's what I started doing, right? Even though I didn't know what I was doing, I would call my buddy Mike. Hey, Mike, hey, what you think? He'll tell me, Hey Sam, put it on this escrow line. Don't put zero. Don't put and this and this kind of went on and on and on. So I wholesale the first few deals, and then next thing you know, I got into house flipping, and then what happened was on my first flip, I hired a contractor, I fired a contractor, hired a second contractor, I fired a second contractor, I hired a third contractor, and I realized this business has contractor problems, right? And I was probably never gonna be happy unless I was planning, executing, and running these projects because I just didn't feel like I was running into the right contractors that was gonna have the right anticipation, the preparation and understanding of what we needed as clients to move the projects forward. So I started running my own projects, and then what happened after that? I got really good at getting in and out of projects uh very quickly, and it became very apparent to me that I needed to become a contractor. Now, part of me never wanted to become a contractor because they didn't have a great reputation, and I'm a guy that kind of like to keep my nose clean and do things the right way. So, but I got into the contracting business, not the traditional way, and not the way that I would recommend anybody getting into the business, which is go the route of working for a contractor to understand the business before getting into that. But that was my story, right? So started the contracting business, I didn't know what I was doing, right? And I remember even two years into the business, I said to my wife, I had a great year, and then I looked at my uh balance sheet and I didn't have any money. And I said to my wife, I was like, I don't think I'll ever be happy in this business, right? So, what I realized is I didn't have the right margins, I didn't have the right steps, I didn't have the right processes, and then I changed my business into design build, which was one of the best things that ever happened to me, right? Because what in design build, I added way more value to the client instead of them parsing out parts of their project to the architect and going this place and this and that, I added more value to them by being able to bring all of that in-house, so that was of great value to me. And then what happened from there is I started taking on bigger projects because I could handle all the aspects of the project. And for me as a contractor, I realized I know the project better. Instead of getting a set of plans from a client and trying to figure out the who's, the whys, the and and what's attached to it, I kind of took the steps to plan that project with them. I know who they are, I know why they want to live this way, I know how many kids they have, I know what they do as an occupation, I know all these different aspects about their life and how they wanted to live. So when it came to planning for this project, I knew it like the back of my hand, which is a great benefit to getting through the project because I handled every piece of it, so which was uh a great benefit to me. So, you know, so I went from house flipping to contracting, and then I just felt the itch to get into new development. So um I've always had this itch to be a builder, and I reached out to one of my buddies that I went to high school with named Josh, and he was a big developer in Manhattan. So I flew out to Manhattan. Uh, I didn't know how big he was until I got there, and I sat down with him in his high-rise New York City um office, and you know, probably like 40 floors up, and he's telling me how he got started and stuff like that, and I'm very impressed. And he had about 600 million dollars under construction, he had another 400 million in in the pipeline, he had a total of a billion dollars of new development projects going. And I and I remember sitting down and I said to him, I was like, How do I get how do I get going? Right? And and then he was like, you know, I and I was like, all right, I'm gonna focus on the construction aspect to really get started in development, right? And I represented him on a project down in in South Florida, and I was really able to see the ins and outs of what it takes to get a project, this particular project was was going to be after construction exit about 120 million dollars, right? And I and I was able to see actually all of his profit and loss and and his construction costs and all of that stuff, I was able to see all of those things to understand exactly what a big developer looks like, right? So when we're putting this training together on how to scale from small projects to large projects, this may never be you, all right? And that's and that's okay, right? It's and it's not me. So um, but I do have a great understanding on what it looks like to grow from small projects to large. So let's kind of dive in, right? So the first thing that is required is a mindset shift, right? So one of the things is so the first thing you need uh to scale is not money, but you need to scale your mindset. So the biggest shift that I I've made in my life is to become a lifelong learner, right? So I made that that decision a few years ago that I'm not going to uh stiny myself and and and sell myself short. I'm gonna constantly continue to learn whatever it is, and I'm gonna push my boundaries as far as I'm willing to go, right? So the thing about it is if you really knew my story, uh I grew up in a very challenging environment. Right? I grew up in in the hood during the crack epidemic. I'm from a third world country, right? I struggle to read, I was in dropout prevention, so there's a lot of challenges that I had growing up. So when you hear me and you hear me uh articulate my words and stuff like that, it wasn't always like that. I I had to work to get to this point, and I'm gonna continue to work to advance myself and to advance my family. So being a lifelong learner is naturally something that's in my blood, but making that commitment to continue to read and to continue to dial in different aspects of learning to elevate myself is something that's very important, and something that I think is very important for you as a real estate developer if you want to grow uh as well. So, small projects is about speed and control, large development is about vision, team leadership, and delayed gratification, so that that continue reinvestment into yourself, that continued reinvestment into your business and the patience not to rush into a deal, but to pick the right deals that will advance not just you, but also your company. So you have to stop thinking like a hustler and start thinking like a CEO, right? Start being that planner. So uh God will not give you more that more if you haven't stewarded what you have already, right? Which is very important, right? So my faith is something that's very important to me, and and and I live every aspect of that. So being a good steward of community, being a good steward of life and the people around you is gonna be very important and growing and elevating yourself and not being in a rush to do it. Yes, there's big profits and and new development projects. Also, too, they're not handing those out, right? It's gonna be is gonna require a lot of work on your end to be able to um get to that that particular threshold. So uh one thing I've learned is going to workshops and specialized meetings, I get into these meetings with all sorts of people, right? And one of the things that I've learned is when I'm in the meetings with them and I'm talking about business and stuff like that, I'm kind of like, hmm, these people are just like me, right? What makes them different, right? And the biggest difference is vision and massive action. These people are taking massive action after they learn, and they're also holding themselves accountable, right? So that's why being in a mastermind group of like-minded individuals that are looking to chase bigger goals than just the people around them is gonna be absolutely important in your growth, right? So every time I go to a meeting, I meet new people, I garner new relationships and new uh mentors, and people are looking to be in the room with like-minded individuals that are looking to grow, right? So that's gonna be very important in going from a small project to large projects. So, other the other thing that's gonna be pivotal in your growth is systems and teams, right? So, to scale, you need to move from being a doer to being a developer, right? You you need to think about you need to think strategically into the future uh what you want your vision to look like and what you want your life to be positioned as, right? So, one of the things I feel strongly about is creating your life by design, right? So having a vision, creating the steps, doing and executing on those steps to create the vision that you want for yourself is very important. It's not gonna happen by itself, right? So that's one thing that I could promise you that. So build systems for project management, financing, and communication. So there's a book um that I read called Checklist Manifesto, right? So I'm an avid reader, I read tons of books uh every every year, right? So in Checklist Manifesto, what it talked about is having a checklist for everything. And it talked about the the um the scene was doctors doing surgeries and then not having a checklist, and then seeing what happens when you don't have a checklist, certain things get missed, and people died, infections happened, and stuff like that. And then once they had a checklist for all things and they stuck to the checklist, virtually zero deaths, zero sick clients, zero uh challenges because they took those proper steps. So that's my thought process when I walk into anything, is being a checklist manifesto type of developer that have all of the systems planned out from start to finish. So um that's gonna be very important. Also, to start building a team, right? So, your team, what does your team look like? So that's their general contractor, that's your architect, that's uh the engineer is attached to the architect, but your land use uh attorney, your your designer, your uh real estate agent, all of these people are very important part of your team. So learn to lead and trust others, right? So allowing those people to lead and do their jobs, right? So this is one of the things that you need to learn is because you haven't been in certain areas as a new developer, right? You need to learn to learn from others, right? And because you're hiring professionals, they're they're going to know more than you, which is okay, right? So learn from them, right? So being okay with not being the smartest guy in the room. So for me, as a matter of fact, I prefer to be the dumbest guy in any room that I'm in, right? I don't want to be the smartest guy. I have done that before, and what it looks like is you are a know it all, right? And it makes people insecure about their thought process and their thinking and how to contribute and stuff like that. So I prefer to be the dumbest guy in any room, right? So what that's what what that's telling you is I'm continuing to strive for more, I'm continuing to put myself in position in rooms where people are doing way more than me, and I can draw from their experience, right? Which is going to be very important in your growth. So being the dumbest guy in the room is a fantastic place to be. So uh, you are the developer and you're not hammering the nails yourself. Could be more important than that. Sometimes you could fall into the trap of doing certain things, but understand your time leverage is your biggest asset, and understanding that will set you up for the future. So, also, too, financing bigger deals is very different. So, I'm gonna break down what it looks like financing smaller deals versus bigger deals, and the language and terminology is gonna be important in growing two larger scale projects. So, uh money will come to you if the deals and the teams are right. So, best advice um don't take your eye off the ball. I remember one of the contractors that I really looked up to, his business has been around for a long time. He remember he said to me, Sam, don't take your eye off the ball, right? Meaning from start to finish, execute at a high level, be the professional, right? So from start to finish, you need to be on your game. You need to make sure that it's fully taken care of and you don't allow anything to slip because your name is on it, right? That's how I like to proceed, especially when you're talking about doing high-end homes, you know, custom homes for clients and stuff like that. I tend to work with, you know, for the longest time I worked with very picky clients, which is which is okay because I'm picky myself, but they sharpen your sword, right? Don't take your eye off the ball. So understanding things like capital stacks, uh, equity, debt, uh, preferred returns, right? So these are the this is the language of larger deal structures, right? So positioning debt and structuring it uh into projects is going to be very important in um in leveraging different capital sources to structure a deal, right? So there's always different capital structures to structure a deal to make sure all of the aspects of the deal works. And it's not necessarily using your own money, but being the guide and being the head of that structure is gonna be absolutely important. So raising private money with confidence using solid pitch deck. So once you get your pitch deck in place, right, your confidence is gonna build because you're accustomed to saying, hey, listen, here's my project, here's how we're looking at it. You're talking, you're speaking in the same terminology as sophisticated investors. Here's what the what the what the um uh turnaround time looks like. Here are all of the hurdles, here's how we're preparing for this project, here's the outlook, here's the uh cost basis, here's the return that on investment that we're looking at. These are the types of things that sophisticated investors are looking for, and it makes it easier to raise capital and to get a yes when you truly understand what you're pitching. So knowing your numbers, know the performa, know the return on investment, understanding developers' fees uh that are attached to it, so leveraging partnerships without giving away the whole deal, right? So you could be tempted as a newer developer just to get the big deal done, right? But because you're doing so much of the legwork, right? You gotta understand that you need to get paid and structure the deal so the your payment at the end is worth the time that you invested, right? Yes, you are gaining experience by launching a bigger deal, but you wanted to also pay out in the end so you could turn around and take that and reinvest that money for yourself, right? So don't give away too much of the deal is going to be absolutely important. So large projects uh take a lot of time and effort, and with that understanding, you're not going to get the time back that you've committed to a particular project and you gave away the majority of the profit. Yes, the the capital is doing the work, but you, as a developer and the visionary, is structuring the whole deal and getting all of the pieces to move to be able to create. Create that opportunity and that comes with inherent value. So finding the right land and doing the right due diligence. So the deal starts with controlling the dirt. You have to control the dirt, and you have to also understand how to maximize that dirt to the highest and best use. That's what real estate development is truly about. So start targeting raw and underutilized land. Learn the ins and outs of zoning, entitlement, and the city process. Pick also to pick one area and plan to be there for the next 10 to 15 years. You could potentially pick one neighborhood and say, hey, listen, I'm going to dominate this particular space, this particular area. I'm going to start knocking down homes in this area and adding value to this particular area for specific reasons, right? Whether it's closer to downtown, whether it's closer to restaurants, whether it's closer to transportation highway, or you could see the value increase, the regenrification happening. These are all things that you can do and focus on one particular neighborhood compared to trying to bounce around in different areas. And also, too, the benefit of that when you pick one particular neighborhood is the city and the community truly gets to know who you are, and then now you can get projects passed a lot faster, right? So there's there's very strategic reasons why picking one area and creating a plan to be there for the next 10 to 15 years is absolutely important. So don't skip the due diligence process. Never skip the due diligence process, right? Whether it's surveys, soil samples, environmental studies, always get these things done and never skip these steps. It's going to be very important to a long-lasting success, right? So this is a uh getaway to real profits. This is a gateway to real profits and and to avoid headaches in the future. All right, absolutely important. So uh so your first big project, what does that look like, right? What does the plan look like for your first first big project? Your first big big deal should be a learning deal, not a home run, right? So, what could your first big deal look like? So, after you've done a couple projects, your first big deal may look like four to ten units townhome community, a small infield uh development project with a couple units, a small multifamily um project. It's it's not gonna be a 30-unit um 30 or 100 unit Metroplex, right? You need to really get that out of your head. That will come with time, right? It'll come with reps, it will come with practice, it will come with capital structures, it will come with new relationships, it will come with long-lasting relationships, it will come with happy investors. It's not gonna come to you right away. So you need to be able to walk before you run, and it's gonna be very important because you're dealing with a lot of a lot of money uh on the line, right? So, and you gotta be mindful of that. You have to treat the capital like it's yours, and you have to be defensive and offensive at the same time. So, knowing that, you know, focus on on learning, right? Like I said, I'm a lifelong learner. So focus on the process, focus on team building, focus on gaining the confidence and in pitching your projects and and pitch decks and making relationships with the bank, which is gonna be an absolutely big, the biggest relationship that you can make, uh, is gonna be what's important in striking your first big deal. So um start now, right? So I can't tell you anything more important than starting right now. It's gonna be very important for you to just pull the trigger and to get started right now. So if you don't know what I do, this is what I do I coach real estate investors on how to get into the new development game. If this is something that you're interested in and you've gained value from multiple videos that I've shot, multiple training videos, DM me, reach out to me. I'm a wealth of knowledge. I'll I'll talk to you. We'll have a triage call. If you're ready, I'll say, hey, you're ready, I can help you. If you're not, I'm gonna say, hey, continue to build, continue to work in these different areas to get to a place where you are ready to work with us, right? So we got a couple different um programs. We have a mastermind, and then we also take on projects one-on-one for well-qualified investors that are ready to move forward, right? Well, we will work with you hand in hand to get your project off the ground, right? So you tell me how I could help you. Uh, I try to make myself available. Like I said, uh Sam, the pro design builder, I'm the best in the business, and it's not even close. If you want to reach out and you want to work with us, reach out to us, DM us, have a great day.