Hello, fellow Robocapagos, hope you're well. I haven't done a video in a few days I've been traveling in the United States.

Add a mastermind meet up up in Park City, Utah, which is fantastic, and I'm going to share with you some insights from that

meeting directly from one of my good friends and business partners Mr. Ken

McElroy he outlined a deal that he was actually looking at as we speak in real time.

It shows you the problem that we're going to most likely have with commercial real estate

moving forward.

This is most you guys know my good buddy Kenny he's right there and this was him up on stage at our event just a couple days ago and again this is in Park City and he was just he's kind of old

school like kiasaki so he likes to do these flip chart things. But he's outlining this deal and I don't I don't know if you know actually he was outlining the concept behind a deal that he's doing right now, but these aren't actual numbers he kind of simplified the

numbers just to make the math easy so usually the deals that Kenny is doing are

between 20 and 50 million dollars and their apartment complex if you don't know Kenny he's one of the a big time investor in apartment complexes and what he'll do is he'll set up a fund, just like a hedge fund or something like that,

or private equity fund, and then he'll take that money and he'll buy undervalued apartment complexes.

He will fix him up, he will increase the rents, and then

he'll just cash flow, cash flow, and he keeps him just indefinitely. He doesn't flip

him, he doesn't do anything, He just keeps and collects the cash flow and

distributes that to his investors. And then when the time is right, he'll go ahead and refi at that higher price,

hopefully if all things go well, and then he pays back the investors and you just keep that train going.

So he's been doing this for, I mean at least 20 years, and he survived the 2008 crisis actually he made a lot of money on

2008 so he's seen cycles he's definitely an OG I guess so anyway he's going over this hypothetical deal that and

this is exactly like a deal that he's looking at right now by the way and

the hypothetical number though is 10 million and this represents a 4% cap rate so that would be the basically the profit the net operating income I think is what NOI is is $400,000.

Okay, so for can he do this deal, he's going to use debt and equity.

So he's gonna borrow money, he's gonna borrow $ five million, and then he's going to go and he's going to let's say set up a

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