Inside the Deal: Lessons from a 20,000 Sq Ft Industrial Flex Development

Industrial Flex Space Development as a Scalable Investment Strategy

Industrial flex space development investing is becoming one of the most attractive alternative real estate strategies for investors seeking cash flow with operational flexibility. In this episode of Multifamily Rockstars, Joseph Sargo breaks down how he moved from traditional small real estate projects into ground up industrial flex development in Branson Missouri. His story highlights how access to the right team, local market relationships, and decisive action can fast track investors into large commercial opportunities even from out of state.

Joseph explains that his development consists of a 20,000 square foot industrial flex property designed for small businesses needing a mix of office, storage, warehouse, and light manufacturing space. The property was intentionally designed with high visibility and adaptable layouts that can serve retail, manufacturing, or service based businesses. This flexibility makes industrial flex space resilient across multiple economic cycles and tenant types.

How Joseph Built Confidence to Invest Out of State

One of the most valuable lessons from Joseph’s journey is how he overcame the fear of building out of state. Rather than trying to manage everything himself, he leaned heavily on a local broker, an experienced builder, and trusted banking relationships. This team based approach allowed him to confidently move forward with development despite having no prior background in industrial flex construction.

Joseph also shared how speed of execution played a major role in the deal. Compared to heavily regulated coastal markets, the Missouri market allowed the project to move from concept to construction in a fraction of the time. This reduction in red tape significantly accelerated timelines and reduced carrying costs during the build phase.

Leasing Strategy and Market Demand for Industrial Flex

Leasing was identified as the most intimidating part of the project, yet Joseph emphasized that strong location, local marketing, and demand from small manufacturing businesses created early traction. By the time the build neared completion, the project already had strong tenant interest and confirmed leases, including one from the builder himself.

Joseph explained that industrial flex tenants typically include small manufacturers, contractors, service businesses, and retail operators who need warehouse access. This creates a diverse tenant base that reduces dependency on any single industry. He also noted the added benefit of tax incentives tied to manufacturing tenants, further strengthening overall returns.

Financing Structure and Capital Strategy

The deal was financed using a local bank construction loan after Joseph and his partner purchased the land with their own capital. They intentionally invested heavily upfront to reduce financing friction later. The construction loan transitions into long term debt once lease up is complete, creating a stabilized income producing asset.

Joseph emphasized that working with a local lender was critical. The bank understood the project, the market, and the development strategy which made funding smoother and more flexible than institutional financing.

Why Focus and Action Drive Long Term Success

Throughout the episode, Joseph repeatedly stressed the importance of taking action over waiting for perfect conditions. He described how analysis paralysis prevents many investors from moving forward even when opportunities are right in front of them. His approach focuses on clearly defining what he wants, assembling the right team, and taking steps forward even when the asset class evolves beyond the original plan.

Looking ahead, Joseph plans to continue expanding his industrial flex development strategy while also exploring opportunities in senior housing. His long term vision includes build to suit flex units that can later be sold to small business owners, providing both cash flow and exit flexibility.

Guest Bio

Joseph Sargo is a New York based entrepreneur and real estate investor who has spent over 25 years operating a successful film and television vehicle supply business. Inspired by early exposure to real estate through family connections, Joseph expanded into commercial investing and development. Since joining Rod Khleif’s Warrior program, he has successfully completed his first industrial flex space development project and is actively pursuing additional commercial opportunities across multiple markets.

FAQ: Industrial Flex Space Development Investing

What is industrial flex space development investing?
Industrial flex space development investing focuses on building or acquiring flexible commercial properties that combine warehouse, storage, manufacturing, and office space into one adaptable facility. These properties serve a wide range of small businesses and provide diversified income streams for investors.

Why is industrial flex space development investing growing in popularity?
Industrial flex space development investing is growing due to strong demand from small manufacturers, service companies, ecommerce businesses, and contractors. These tenants need affordable, flexible space, which makes flex properties highly leasable and resistant to economic shifts.

What types of tenants use industrial flex space?
Tenants typically include light manufacturers, construction trades, automotive businesses, service providers, storage users, and small distribution companies. This diversity reduces reliance on a single industry and strengthens occupancy stability.

How does industrial flex space differ from traditional industrial real estate?
Traditional industrial real estate often focuses on large warehouses or distribution centers, while industrial flex offers smaller, multi purpose spaces that can accommodate manufacturing, office, retail, and storage all in one unit.

Is industrial flex space development investing suitable for new investors?
Industrial flex space development investing can work for newer investors when they partner with experienced builders, brokers, and local lenders. Strong teams, conservative underwriting, and market research are essential to reduce development risk.

What are the main risks in industrial flex space development investing?
The primary risks include construction delays, cost overruns, leasing timelines, and financing structure. These risks can be mitigated through fixed price construction contracts, early tenant pre leasing, and working with experienced local professionals.

How do investors add value through industrial flex space development?
Value is added through modern building design, efficient layouts, high visibility locations, strong tenant selection, and long term stabilized financing. Lease up and proper management significantly increase net operating income and overall asset value.

What financing options are commonly used in industrial flex space investing?
Most investors use a combination of land purchase capital, local bank construction loans, and long term commercial financing after stabilization. Local lenders are often preferred because they understand the market and support development projects more easily.

What makes industrial flex space development investing attractive for long term wealth?
Industrial flex space development investing offers strong cash flow potential, long term tenant demand, and multiple exit strategies including refinancing, portfolio hold, or sale to owner users. This flexibility makes it a powerful wealth building strategy for commercial investors.

Disclaimer: This summary was written with the help of AI and reviewed by Rod’s Team.

00:00:28:24 – 00:00:49:01
Rod Khleif
So welcome back to multifamily Rock star. So as you guys know this is where we do deep dives in our in our guests deals. And we try to give you actionable advice for your first deal. So you actually take action and do something with this stuff. And so so today I’ve got Joseph Sargo on the show and Joe from New York City and, been a Warrior less than a year.

00:00:49:01 – 00:00:53:21
Rod Khleif
And, just excited to get into this deal that he took down. How are you doing, brother? Good man.

00:00:53:21 – 00:00:54:12
Joseph Sargo
How are you?

00:00:54:14 – 00:01:12:24
Rod Khleif
Awesome, awesome. So why don’t you take a minute? I know you don’t come from the real estate business. You actually kind of cool. You come from film or TV? That’s kind of cool. But, talk a little bit about that and your background and why real estate and and all that. And kind of bring us current and in your own words.

00:01:13:01 – 00:01:37:22
Joseph Sargo
Okay. Well, I started, you know, my, my core business is I supply automobiles for movies and TV shows. I’ve been doing that for 25 years. I took it over from my father, the opportunity. And, you know, we’ve grown that over the last 25 years. Real estate for me was something that I saw, in some of these other guys that my father had his friends, and I saw what these guys were doing and how they were building wealth.

00:01:37:22 – 00:01:55:03
Joseph Sargo
And they had other, you know, big projects. So for me, at an early age, I’ve been involved in real estate for quite some time. It always intrigued me, you know? So it kind of felt natural. And I, you know, been doing it for 20 years now.

00:01:55:05 – 00:02:02:13
Rod Khleif
Right? Right. Right now. That picture behind you, is that the first deal we’re going to talk about?

00:02:02:15 – 00:02:07:14
Joseph Sargo
It is it is our it is probably our our biggest deal not to.

00:02:07:16 – 00:02:11:07
Rod Khleif
Tell us what it is. It looks like, industrial flex or something. What is it?

00:02:11:09 – 00:02:35:22
Joseph Sargo
It is, it is a, 20,000 square foot, industrial flex building. It will be ten units that will have 26, 43 square footage, of leasable space because we’ll have weight rated loft space that the tenants can use. And that is located in, a sub city of Branson, Missouri, and Hollister, Missouri.

00:02:35:24 – 00:02:43:21
Rod Khleif
Oh, and by the way, for that not not not in your backyard, in Missouri. Now, Branson, isn’t that isn’t that like an entertainment area?

00:02:43:23 – 00:02:49:19
Joseph Sargo
Branson is like a summer, you know, seasonal place.

00:02:49:19 – 00:02:54:10
Rod Khleif
So don’t they have, like, the, like, the Dolly world? Just, I mean, I’m, I’m thinking of somewhere else. I’m thinking.

00:02:54:10 – 00:02:55:21
Joseph Sargo
No, that’s that’s Tennessee.

00:02:56:00 – 00:03:01:18
Rod Khleif
Tennessee. But Branson is known for something. I know that I’ve heard that name before. What’s it known for?

00:03:01:20 – 00:03:18:12
Joseph Sargo
They have, Branson has, Bass Pro. It’s the the largest bass pro. They have a museum there. And the gentleman that owns Bass Pro is big into, development in that area. And I think they have the number one theme park in the area, which that’s.

00:03:18:12 – 00:03:37:00
Rod Khleif
What that’s what I was thinking. Yeah. I thought that was like a theme park or something there. Yeah. I love I love Bass Pro Shops. I mean, that’s like crack cocaine for me, man. I love going in there. I just love it. But, so, so, so, so talk about this deal. You know, why Branson? Why industrial flex space?

00:03:37:02 – 00:03:42:05
Rod Khleif
You know, how do you find it? Just just talk to us about that deal.

00:03:42:07 – 00:03:59:01
Joseph Sargo
I’m gonna I’m going to give you a little backstory for with it. You know, just that’s how I ended up there, right? So, I’m an avid mountain biker. I travel to the Bentonville. You know, that northwest Arkansas area. I saw the development in the area enough that my wife and I had bought land, you know, to to build a house and move there.

00:03:59:01 – 00:04:19:09
Joseph Sargo
So when I was looking for commercial space, originally, I was looking in that area. Luckily for us, my partner is partner with another gentleman who’s a broker in Branson. So he had been looking for us in that that area and we were like I said, we originally looking for a multifamily and he came to us with this deal.

00:04:19:11 – 00:04:27:22
Joseph Sargo
Had you asked me in January when I joined if I was going to be in development, I would have said, not in a million years. And here we are.

00:04:27:24 – 00:04:31:17
Rod Khleif
Here we are. You want to make God laugh? You tell him your plans, right?

00:04:31:19 – 00:04:32:16
Joseph Sargo
All right.

00:04:32:18 – 00:04:33:10
Rod Khleif
So how did you gain.

00:04:33:10 – 00:04:46:22
Mark Nagy
The confidence to do this? Because I know you’re in New York, and obviously this is in a totally different state and it’s new development. How how did you gain the confidence to not only do a deal out of your state, but also a new development project.

00:04:47:02 – 00:04:54:12
Rod Khleif
As part of that, as part of that question, have you done any industrial flex space before? Either either one or you and your partner?

00:04:54:14 – 00:05:10:15
Joseph Sargo
No. I own my my warehouse where my business is in, and that’s a whole really cool story how I bought that, actually. Okay. But, really, we had the right boot in place, right? So, again, it’s kind of outside of my comfort zone. Everything.

00:05:10:17 – 00:05:19:12
Rod Khleif
That’s a book, right? That’s the clue, not how, not how. Yeah, I love it. Okay. Yeah. Yeah. Okay. So. So who was the who?

00:05:19:14 – 00:05:39:12
Joseph Sargo
It’s the team down there. It’s the military, the broker, the builder. Our builders out of California. Kind of like us, you know, East coast kind of feel. You know, and he, you know, they just made us feel right at home solving the problems without me having to worry about them. Right? Like, I’m usually like, my hands are dirty and everything.

00:05:39:14 – 00:05:49:24
Rod Khleif
So, so, so you you got the comfort in answer in answer to Mark’s question. You got the comfort by by the fact that you had a kick ass team helping you put this thing together. Would that be the right answer?

00:05:50:01 – 00:05:51:20
Joseph Sargo
For sure. For sure. Okay.

00:05:51:22 – 00:06:04:14
Rod Khleif
Okay. So, so, Well, now you now I’m intrigued and I’m intrigued. I hate to shift gears, but I want to shift gears. Tell me about the warehouse you bought. Why is that a cool story? So one is the one. The one? You’re the one. You’re my biggest.

00:06:04:16 – 00:06:19:16
Joseph Sargo
So. So I’m not, you know, like, big on going to all these town meetings and stuff. And my mom, my mom, my wife was like, look, we got to go up to this town meeting. Let’s go up there, okay? Me and my my wife and my father go to the town meeting. My dad knows everybody. Been in the area 50 years, right?

00:06:19:18 – 00:06:21:02
Rod Khleif
Right. One of those guys got it?

00:06:21:02 – 00:06:38:05
Joseph Sargo
Yeah. So after the meeting, the mayor comes up to me and he puts his arm around me and he’s like, listen, kid. He goes, you got to buy your building. I said, okay, this. I said, why, what’s going on? He goes, well, we got to Fedex is coming in. The whole area is under redevelopment. You know, in in a year or so your property be worth double.

00:06:38:07 – 00:07:00:15
Joseph Sargo
I said, okay. The next morning I called my landlord and I said, I want to buy the building. We had about a 15 minute conversation. I’ll shorten it up, but it was pretty much okay. What do you want to pay? I offer, I made him an offer. He countered, I said, okay, I’ll give you your your offer. But you hold the mortgage.

00:07:00:17 – 00:07:24:03
Joseph Sargo
He said, okay, I’ll hold the mortgage. You gave me a number back. You come up with this number, I said, okay, I didn’t have that number. I said, okay, and we bought the building. You know, I’m in that building right now. And had I not bought the building after Covid and all the things that have happened, and the cost of the these buildings around here, I would, I would be out of business essentially.

00:07:24:03 – 00:07:25:07
Joseph Sargo
Yeah. You know.

00:07:25:09 – 00:07:37:18
Rod Khleif
You know, it’s not what you know, it’s who you know. And and that just speaks to the fact that your dad that built those relationships. So the mayor comes up and says, I’m going to help this kid out and tell them what to do because they know what’s going on.

00:07:37:18 – 00:07:38:23
Joseph Sargo
I mean, yeah, 100%.

00:07:38:23 – 00:07:47:00
Rod Khleif
Yeah. Right. I mean, yeah, you know, the look at Pelosi, what did she make 100 grand a year now she’s worth 40 million. 50 million. Whatever it’s is.

00:07:47:01 – 00:07:48:24
Joseph Sargo
I like that I like that multiple.

00:07:49:01 – 00:08:05:19
Rod Khleif
Yeah, yeah. Anyway. Yeah. But but anyway so so back to this, Branson, Missouri thing. Your broker brought you the land. And and how did you connect with the other pieces of this, the other players, this, this team? How did that all come together?

00:08:05:21 – 00:08:07:10
Joseph Sargo
Through the broker? Through the.

00:08:07:10 – 00:08:08:17
Rod Khleif
Broker. He knew him, okay?

00:08:08:18 – 00:08:22:22
Joseph Sargo
The broker knew the builder introduced us to the builder. And honestly, rod, I was out there a couple of weeks ago at the property. And pictures don’t even do it justice for location where it is really nice. It’s up on a hill. It’s on 65. As you come into this.

00:08:22:23 – 00:08:24:13
Rod Khleif
Is it completed now?

00:08:24:15 – 00:08:28:17
Joseph Sargo
It should be completed by the first of the month. Is what I’m being told of December.

00:08:28:19 – 00:08:31:12
Rod Khleif
Okay. Wow. Wow, you’re almost there. It’s coming. Oh, yeah.

00:08:31:14 – 00:08:31:21
Joseph Sargo
Yeah.

00:08:32:01 – 00:08:48:02
Rod Khleif
How are you going to. You know, I mean, let’s drill down on on industrial flex space a little bit. We had someone else on not that long ago. You know, guys, by the way, those of you listening, I mean, the warrior program. Yeah, they own what my warriors own. Probably close to 300,000 units. We we we can’t even keep track anymore.

00:08:48:06 – 00:09:10:18
Rod Khleif
We know it’s over 277,000, but every other asset class is represented. Lots. Lots of industrial flex space, lots of senior housing, lots of self storage, student housing and, you know, hotel conversions, you name it. But anyway, let’s drill down on industrial flex a little bit. So you put it together, you built it. Now you got to lease it.

00:09:10:20 – 00:09:27:00
Rod Khleif
So talk about. Yeah. Are there some market dynamics there that make it exciting number one. And then talk about how you’re going to go about filling it up. What what what are your marketing methodologies and or relationships or whatever that you’re going to utilize?

00:09:27:02 – 00:09:31:08
Joseph Sargo
Okay. So that’s probably the scariest part of the whole thing.

00:09:31:10 – 00:09:32:11
Rod Khleif
Okay.

00:09:32:13 – 00:09:33:12
Joseph Sargo
You know, because.

00:09:33:16 – 00:09:34:17
Rod Khleif
Lisa.

00:09:34:19 – 00:09:52:12
Joseph Sargo
Now I got it. Now, now I got to make it happen. Right? So again, the team down there has done a really good job of with the marketing. We’ve been marketing. We went actually we’ve been going really strong right now, Facebook ads and stuff like that. We have a, my realtor and the builder have, pretty good local, presence.

00:09:52:14 – 00:10:10:21
Joseph Sargo
Also, the location of the building has gotten a lot of eyes on it. So there’s been a lot of interest in that respect. We believe that we, probably have three leases already. And what we’re thankful for is that we believe that at least one, maybe two of them are in manufacturing, which would be a tremendous help.

00:10:10:23 – 00:10:16:02
Joseph Sargo
With the new big, beautiful bill. And it gives us, some tax incentives there for manufacturing.

00:10:16:08 – 00:10:23:20
Rod Khleif
Oh, cool. Oh. Very cool. So. So are you targeting, you’re targeting small businesses? I take it we are.

00:10:24:00 – 00:10:33:03
Joseph Sargo
We’re targeting, you know, businesses that have a, you know, a, retail presence and maybe a small storefront that needs a little bit of warehouse space.

00:10:33:03 – 00:10:37:21
Rod Khleif
Oh, even retail. Oh, not retail. They’re retail somewhere else. And they need storage.

00:10:38:02 – 00:10:45:07
Joseph Sargo
No, you could be retail there. There’s office in there, and you could, you know, just because it has the bay door, you can you can still set up a storefront.

00:10:45:07 – 00:10:45:20
Rod Khleif
Okay.

00:10:45:20 – 00:10:49:07
Joseph Sargo
We can actually replace the bay door with a storefront. If the client at the.

00:10:49:10 – 00:10:53:14
Rod Khleif
Oh that’s cool. It’s got enough visibility for that to be viable.

00:10:53:16 – 00:10:55:03
Joseph Sargo
Oh, yeah. Definitely.

00:10:55:05 – 00:11:08:13
Rod Khleif
Oh, wow. That’s unusual. That’s not true. Yeah. A lot of times you’ll see industrial flex space right off a highway to, you know, you see it off to the side, but, okay. And, and so three out of the ten you think may already be leased.

00:11:08:15 – 00:11:25:02
Joseph Sargo
Yeah. Well, we definitely have one, which is our builder. He’s actually going in there. Yeah. So, it’s been also really good for him as well because of the location and the people seeing it. It’s he’s gotten tremendous amount of additional work.

00:11:25:04 – 00:11:42:12
Mark Nagy
Now, what about the financing on this? Because I’m doing a new construction project myself right now, 14 units. And I know the key to that project was financing. We got interest only for the entire term of the loan, so we don’t have to put a bunch of money down. What about you? Tell us about the financing on this deal, how you secured the financing.

00:11:42:12 – 00:11:46:15
Mark Nagy
If there was funds you had to raise. Give us some details on that.

00:11:46:17 – 00:12:07:14
Joseph Sargo
Okay. So we went into this a little strong. My partner and I, we went. Yeah, we did. Because we didn’t want to have a problem with financing. So, but we did go with a local bank. And what does that mean? We put up a pretty significant amount of money. We purchased a land prior. We did ourselves.

00:12:07:14 – 00:12:07:20
Joseph Sargo
We didn’t.

00:12:07:23 – 00:12:11:18
Rod Khleif
And which which includes which contributes to the equity for sure.

00:12:11:20 – 00:12:34:22
Joseph Sargo
Yeah. And we also, we pretty much did the first, draw for the build. And we again, we went with a local bank. We actually did really well with the local bank. And I think we’re at six, eight, nine interest rate, which was pretty good for March of last year ish or something like that. Yeah.

00:12:34:22 – 00:12:36:04
Joseph Sargo
So it’s, it’s 30, 30.

00:12:36:04 – 00:12:40:22
Rod Khleif
Year, 30 year am, 30 year am, five year balloon. That’s very typical. What you got.

00:12:40:24 – 00:12:46:16
Joseph Sargo
Well, we haven’t secured it into a full mortgage. It’s a construction loan up until. Yeah.

00:12:46:18 – 00:12:55:07
Mark Nagy
So what was the term. And then information on that. Was there any I or was just a regular term?

00:12:55:09 – 00:12:58:17
Joseph Sargo
It was just a as far as I don’t have the term sheet yet. Like it.

00:12:58:18 – 00:13:03:11
Rod Khleif
Yeah. On the construction financing. And you’re not going to typically CIO. Well.

00:13:03:11 – 00:13:12:14
Mark Nagy
That’s right. Yes. Because I have I owe for the entire term on our construction loan on a local bank. That’s the only reason why I asked that question. Yeah. For for two years, for the entire term period.

00:13:12:16 – 00:13:14:10
Rod Khleif
Okay. Okay.

00:13:14:12 – 00:13:15:18
Joseph Sargo
Yeah. No, I don’t understand.

00:13:15:22 – 00:13:17:00
Rod Khleif
I stand corrected.

00:13:17:02 – 00:13:30:10
Mark Nagy
Okay. So you guys are just making regular as you as you pull the draw van, you’re just making the regular payments as you’re doing that. And what’s the timeline on that from when you got that loan to when I mean, December 1st. What what’s the timeline on that entire project?

00:13:30:12 – 00:13:53:16
Joseph Sargo
So the timeline on the entire project was we started our build in roughly, May June, and we funded that part of it, the beginning of it. And we didn’t really go to the bank until about September. That’s the draw. Yeah. It’s very it’s really set ups. I’ll tell you why. It’s very little regulation that went on the town.

00:13:53:18 – 00:14:00:02
Mark Nagy
That’s what I was going to ask you about. How did you get it so quickly without all the red tape of new construction and all that?

00:14:00:04 – 00:14:01:22
Joseph Sargo
Who you know.

00:14:01:24 – 00:14:03:09
Rod Khleif
It’s Branson, Missouri, man.

00:14:03:09 – 00:14:04:00
Joseph Sargo
It’s that simple.

00:14:04:01 – 00:14:04:15
Rod Khleif
It’s really.

00:14:04:15 – 00:14:18:09
Joseph Sargo
It’s it’s it’s my builder and my realtor. I’ve been in the area my my realtor pretty much wrote the book on, single family like Airbnb rentals for that area because nobody was doing it. So these guys.

00:14:18:09 – 00:14:19:24
Rod Khleif
The good old boy network.

00:14:20:01 – 00:14:21:09
Joseph Sargo
Yeah, they’re tired, but.

00:14:21:09 – 00:14:29:05
Mark Nagy
Now I’m getting curious. What was this part of? What made it a good deal? You knew ahead of time that you could just move super quickly, or is that a nice bonus?

00:14:29:07 – 00:14:48:11
Joseph Sargo
It was a nice bonus, but but they had told us prior to and I had I had actually spoken to the city and they were in love with the project. They loved the idea, they loved the where it was going to be location wise. So they were they were all for it. They approved, you know what I was shocked at is, you know, coming from where I’m at, right?

00:14:48:12 – 00:14:55:15
Joseph Sargo
I’m in New Jersey. You can’t even step on a piece of property without like, you know, certainly it’s. Yeah.

00:14:55:17 – 00:15:14:21
Rod Khleif
You know, like that election didn’t go the way, the way we wanted, but that’s another story. But anyway. Yeah. So, so you know I’m looking at I’m looking at the, the framed out building here, behind you. And it’s kind of cool because you can kind of see, you know, you’ve got the plumbing stub outs in the floor where the bathrooms got to be, and then the rest, of course, in the back is going to be all warehouse.

00:15:14:21 – 00:15:28:09
Rod Khleif
So it’s kind of cool to see this stage, you know, and recognize what what what what it means. But but, did the fact the steel construction’s probably a lot faster than people might think as well, right?

00:15:28:11 – 00:15:52:02
Joseph Sargo
For sure. And again, our builder has a relationship with the manufacturer. So, his orders go in pretty quick. And we we had a basic design for this building for a while before we, you know, for a while. So it was. No, it was, it was the steel was on the ground in step number. I think the steel was on the ground mid-September.

00:15:52:04 – 00:15:54:17
Rod Khleif
Well, you know. So what why did you come in and work.

00:15:54:17 – 00:16:08:02
Mark Nagy
With us then? Because you correct me if I’m wrong, but you seem like a ready fire ame type of guy. And the way that you’re doing things and so many people struggle with fear, and that’s like the hardest part. Obviously that’s not you. Why don’t you come and work with us?

00:16:08:04 – 00:16:09:17
Joseph Sargo
Why did I come to work with you guys?

00:16:09:17 – 00:16:11:14
Rod Khleif
Yeah, yeah. Become a warrior. Yeah.

00:16:11:16 – 00:16:29:11
Joseph Sargo
A why did I become a lawyer? Oh, I mean, it was it was easy for me. Like, probably the first thing that it was, was the way that you talked about mindset, you know, your relationship and the way that you worked with Tony Robbins. That, to me, is where people really fall short, and beat themselves up.

00:16:29:11 – 00:16:45:07
Joseph Sargo
And I thought that was that part was fantastic for me. And then it was about being in the room and having access to people that were really doing what I wanted to do, and that was the second biggest reason.

00:16:45:07 – 00:16:51:01
Rod Khleif
So did you join in boot camp or did you did did you just join? I did, you know.

00:16:51:03 – 00:17:05:03
Joseph Sargo
I watched the boot camp. I did go to one of the virtual boot camps. Okay. I think I only got to watch one day because I was on a, mountain biking trip. So I ended up only getting to watch one day. And then I think Mark and I talked on that following Monday, and I think I joined on Tuesday.

00:17:05:04 – 00:17:05:14
Joseph Sargo
That was it.

00:17:05:19 – 00:17:16:06
Rod Khleif
That was it. Okay. Okay. Love it. Yeah. And and, yeah. I assume you didn’t make the Phoenix Warrior event. I don’t think I saw you there.

00:17:16:08 – 00:17:26:16
Joseph Sargo
No, I couldn’t make that event. My niece got married on Sunday. Had that event been on the East Coast, I would have actually been flown out for a day and come back. But it was to fly West.

00:17:26:16 – 00:17:28:22
Rod Khleif
Coast to be in Sarasota. Next one will be in.

00:17:29:02 – 00:17:31:10
Joseph Sargo
Yeah. That’s easy. Yeah, yeah. Well, you.

00:17:31:10 – 00:17:42:14
Mark Nagy
Mentioned Joe beforehand that you had tried to actually do this on your own a little bit to, to give the listeners some, some context to tell that, to tell that story real quick about what kind of motivated you to get some help.

00:17:42:16 – 00:18:02:00
Joseph Sargo
Yeah. So I was, you know, again, my, my experience with single family multifamily, smaller projects and, you know, that kind of stuff. My building and I’ve owned some condos in Florida and that stuff is easy. It was easy. I could do that, you know. No problem. I so I was like, fine, I’ll go and I’ll start looking for, you know, multifamily.

00:18:02:00 – 00:18:21:10
Joseph Sargo
Right. So the first the first building I found I started working on did all the underwriting, which I didn’t. Honestly, I didn’t even know what that meant. For years and years I had been doing it. And I’m like, I don’t even know what it means, you know? So we did. Yeah, right. So I’m I’m doing this on this building and I’m going through it and the building seems like a fantastic deal.

00:18:21:10 – 00:18:41:22
Joseph Sargo
You know, and go to the bank and the bank asks me like and comes back with, like, it’s a rural area and I’m like, I don’t even know what that means. You know, they won’t lend on it. So I had to backtrack a little bit and say, okay, let me let me learn a little bit more, because there there seems to be some things that I don’t know in this process.

00:18:41:24 – 00:18:48:18
Joseph Sargo
And before I go and spend two and a half, $3 million, maybe I should learn something.

00:18:48:20 – 00:19:13:11
Rod Khleif
You know, I can’t tell you how often I have somebody hit me up. And, I mean, it happens probably on at least a monthly, if not on sometimes a weekly basis. Hey, I’ve got this 100 unit deal under contract, you know, can you help me? I’m like, okay, I’m kidding me. You you know, you didn’t want to spend a couple bucks to get some help, and now you’re asking for help after you’ve pulled the trigger.

00:19:13:11 – 00:19:37:07
Rod Khleif
I mean, come on. Yeah, yeah. No, I mean, but, anyway, by the way, guys, if you are have any interest in applying to our warrior coaching program, it’s extraordinary. Text the word crush to 72345. You know, I was just being interviewed on another podcast, and I made this comment. I really believe our results in the warrior program eclipse all the rest of the people combined.

00:19:37:07 – 00:19:51:18
Rod Khleif
And we’re a fraction of the cost. And if you’re interested, text the word crush to 72345. We’d love to help you crush it in this business. So. So what’s next for you, brother? I mean, obviously you got to get this thing filled up. Are you going to do another one? What are you thinking? You know.

00:19:51:18 – 00:20:12:14
Joseph Sargo
We are, when we were down there, two weeks ago in, in, October, we looked at a quite a few other pieces of property to do this. And so we are we’re probably going to move forward with at least one of them. We just would love to get at least, you know, these three tenants in the building and then, you know, move on to the next.

00:20:12:14 – 00:20:25:15
Joseph Sargo
But I think I think for the next project, we’re looking in a little different city somewhere a little closer to one of these bigger subsidies. And we are going to probably do, more of a build to suit and, sell the sell the units.

00:20:25:17 – 00:20:45:08
Rod Khleif
Oh, okay. And that’s, that can be very different creative as well. So you actually, you know, people I will tell you, a lot of small business owners like you want to actually own what they have. And you have you have a small you have a small fee for the taxes and the and the, you know, the, the outside maintenance, things like that.

00:20:45:08 – 00:20:53:05
Rod Khleif
But it’s insignificant and and you own your own. I mean, I, I’ve seen that happen many times. We actually sell them off. That’s a great idea, brother. I love it.

00:20:53:07 – 00:21:11:23
Joseph Sargo
So that area’s popular with that micro, what they call them micro flex. You know, that 1 to 4000 square foot property where, like my market here, where I am down the street from me, they’re building 102 of them, 120,000 square foot buildings. Wow, wow. Two different, you know. So thank you for that. I.

00:21:12:00 – 00:21:19:03
Rod Khleif
Are you thinking about any other asset classes or, you know, focus is power. Value staying focused. What what what are your thoughts on that?

00:21:19:05 – 00:21:37:18
Joseph Sargo
We’re staying focused on the flex space. And if I’m, you know, going to be honest, which I always will be, I’m a little intrigued by where everybody’s going with this senior care. And there’s a huge market for where we’re doing all this flex as well. It’s it’s a shortfall. So.

00:21:37:19 – 00:21:56:04
Rod Khleif
Money buddy, that’s that’s that’s, that’s really big right now. And I’m, I’m, I just we just bought I bought my first living facility, two months ago. Very excited about that. Very excited. And we’ve had, you know, lots of warriors are doing it already. Lots of more to own own facilities. And, you know, and there’s a lot to it.

00:21:56:04 – 00:22:16:20
Rod Khleif
So. Yeah, I encourage you to consider that because, I mean, there’s a huge shortage of housing. I mean, the beds for, for seniors, and and it costs upwards of 250 to 300,000 a bed to build them. And you can, you know, you can still buy them for sub 100 a bed. So, you know, right. There’s an opera, there’s an opportunity.

00:22:16:20 – 00:22:25:13
Rod Khleif
I don’t know how long it’ll last, but Covid destroyed a lot of facilities. So yeah. That’s good. I’m glad you’re considering that. Yeah. So. Yeah. Cool, cool. I was going.

00:22:25:13 – 00:22:32:10
Mark Nagy
To say, with your background in your job, you should consider big syndication. Could go, you know, raise some money from Denzel Washington or something.

00:22:32:12 – 00:22:53:01
Joseph Sargo
You know, so many years, I, I so I’m also a local, local 52 prop. I spent many years on sets with movie stars. Honestly, I just did my job, you know, like, I was never, you know, it’s very it’s. I’ve been around it since I’m a kid. I’ve been sitting on the curb of movies since, you know, not old.

00:22:53:04 – 00:22:53:11
Joseph Sargo
Yeah.

00:22:53:11 – 00:22:56:00
Rod Khleif
So how cool is that? That’s. Yeah. You know, a lot of people.

00:22:56:00 – 00:22:57:09
Joseph Sargo
For me, it’s a job, you know?

00:22:57:09 – 00:23:04:14
Rod Khleif
That’s that. Yeah, I gotcha. Okay. Yeah. Well, I mean, have you ever thought about raising money for deals or you just like doing it yourself?

00:23:04:16 – 00:23:11:22
Joseph Sargo
We have we have talked about raising money for deals. I probably, would probably lean on somebody that’s better at it than me than.

00:23:11:22 – 00:23:14:11
Rod Khleif
Well, I we’ve got, you know, dozens and yeah.

00:23:14:11 – 00:23:15:14
Joseph Sargo
There’s tons of people teams.

00:23:15:15 – 00:23:16:20
Rod Khleif
In the warrior program for that.

00:23:16:22 – 00:23:36:09
Joseph Sargo
There really is I, I, I was amazed at early in my journey how many warriors like quickly were already into deals together, you know, doing stuff and, and big, big things. It was it was pretty impressive the action you know, that that was taken.

00:23:36:11 – 00:23:51:02
Rod Khleif
Yeah. It’s mindset I mean they actually take action because you know because we we spend a lot of time, you know, on what’s most important. And that’s actually doing it instead of, you know, getting caught up in our stories and why we shouldn’t do it, and fears and limiting beliefs and all these things that hold people back.

00:23:51:02 – 00:24:14:08
Joseph Sargo
So well now with all of the resources, right? And all of the things that you can get, you know, analysis paralysis is even greater, right? Because right now you have so much more before, you know, you had to really, really search out some of this data, right? Yeah. And now it’s it’s literally, you know, at a type of a chat bot, right?

00:24:14:10 – 00:24:14:17
Rod Khleif
Yeah.

00:24:14:22 – 00:24:27:07
Joseph Sargo
You can find out pretty much anything and you know, and do it in a fraction of the time. And that becomes overwhelming. And some people can act on it and others, you know, delay.

00:24:27:09 – 00:24:35:08
Rod Khleif
Yeah. No, it’s it is it’s we’re in crazy times right now. Yeah. You know, we’ll get a.

00:24:35:10 – 00:24:55:05
Mark Nagy
Speaking of action, Joe, leave the listeners with one more golden nugget. What are, from your perspective, what are some actionable items, whether they work with us or not, that doesn’t matter. Even if they don’t, what are some actionable items that you kind of do on a weekly, monthly basis that you think listeners can just start doing, whether it’s calling brokers, deal analysis, whatever?

00:24:55:05 – 00:25:01:10
Mark Nagy
What are some of those things that you would recommend they do in terms of taking action?

00:25:01:12 – 00:25:20:07
Joseph Sargo
I mean, just just doing it right. Like just start looking for those properties, right. Find some properties that you like, get your deal box together. You know, what do you want? Right. Sometimes you may go into it thinking you want one thing like me and end up in a journey building something that was totally not on your radar.

00:25:20:13 – 00:25:46:18
Joseph Sargo
So, you know, really just starting, right? Picking up the pen, getting on the computer, you know, start looking for that project and calling those brokers. You know, we were fortunate because we have an awesome broker. So I, I leaned on him and and not that I didn’t necessarily make as many calls, but I spent hours and hours and hours on a computer researching properties and deals and, you know.

00:25:46:20 – 00:25:50:23
Rod Khleif
Nice, nice, great advice. Yeah, I know it is.

00:25:51:00 – 00:26:06:23
Mark Nagy
For people that want to reach you, Joe. Maybe they like your story. They want to get into industrial flex, new construction, maybe people that live in new Jersey, whatever they want to invest out of state, which are people that live in New York with the whole freeze the rent thing. I wouldn’t blame you for wanting to invest out of that state at this point.

00:26:07:00 – 00:26:11:00
Mark Nagy
How can they reach you and where can they reach you?

00:26:11:02 – 00:26:18:15
Joseph Sargo
You can email me at Legacy Partner Holdings at gmail, and that’s probably the easiest way to do it. Yeah.

00:26:18:21 – 00:26:37:20
Rod Khleif
Perfect. Perfect. Well, listen, brother, I appreciate you coming on for a few minutes. It’s great to see you and, I’m sure we’ll see you in Sarasota for the next warrior event. And, Yes, sir, I appreciate you adding some value and, interested to see, you know what? What you’re up to, you know, here in the next year or so, I’m sure it’ll be.

00:26:37:20 – 00:26:39:18
Rod Khleif
It’ll be amazing. So you.

00:26:39:18 – 00:26:55:00
Joseph Sargo
Got it. I appreciate you. I appreciate you for having me here. I’m very thankful for the program. And to the other warriors for being available. You know, at the drop of a hat. I can call some of these guys, and I’ve done the same for others, so it’s. It’s nice. It’s been nice. Thank you.

00:26:55:02 – 00:26:57:03
Rod Khleif
Thanks, brother. See you guys. Thanks.