Land Entitlement Investing: How Duy Nguyen Doubled His Investment Through Development Approvals

Land entitlement investing offers real estate investors an opportunity to create significant value by purchasing undeveloped land, securing development approvals, and selling the property to builders or developers at a higher price. In this episode of Multifamily Rockstars, real estate investor Duy Nguyen explains how he transitioned from residential property flipping into multifamily syndications, self-storage, and land development. He shares how he has completed three full-cycle land entitlement deals in three years, including one project where he more than doubled his initial investment by securing development density approvals and selling the land on paper without completing the entire entitlement process.

From Residential Flipping to Multifamily Investing

Before moving into commercial real estate, Duy Nguyen built his experience through residential real estate investing. His business focused on building spec homes, fixing and flipping properties, wholesaling, and buy-and-hold investments. At his peak, he was handling approximately 80 to 100 properties per year. However, when the market slowed following COVID, his active income temporarily dried up, prompting him to look for ways to generate passive income.

That transition led him into multifamily real estate investing. Since joining the Warrior Group in 2021, Duy has participated in approximately 600 multifamily units across seven syndications. One of his successful investments was a 90-unit apartment community in Cleveland Heights, Ohio. After purchasing the property, his team focused on renovations, property management, and improving operations before selling it in July. The investment generated just over a 20% annualized return, demonstrating the potential of partnering with experienced operators and executing a strong business plan.

How Land Entitlement Investing Works

One of Duy’s preferred investment strategies is land entitlement investing, which involves purchasing undeveloped property and obtaining the necessary approvals to make it suitable for residential or commercial development. Rather than taking on the construction process himself, Duy works with a civil engineer to evaluate the property, determine its development potential, and create a plan for what can be built. He then works with builders and developers who may purchase the property once the development concept or approvals are established.

The process generally involves several important steps:

1. Identify promising land: Look for properties in growing areas with potential for future residential development.

2. Evaluate development potential: Work with a civil engineer to determine how many homes or townhomes the property can accommodate.

3. Coordinate with local government: Meet with city and county officials to understand development requirements and secure necessary approvals.

4. Establish development density: Determine how many units can legally be built on the property.

5. Sell to a builder or developer: Market the approved development concept or fully entitled property to an end buyer.

One particularly interesting strategy Duy discusses is targeting county land bordering city limits. These properties may offer opportunities to negotiate annexation into the nearby city. Because municipalities benefit from additional tax revenue, annexation can create opportunities to work with city officials on development approvals and infrastructure requirements.

How to Make Money Selling Land Without Developing It

An important lesson from Duy’s experience is that investors do not necessarily need to complete the entire entitlement process or construct buildings to generate a profit. Depending on the project, investors can sell land at different stages of the approval process. Some properties may be sold after establishing development density, while others may require full entitlements, including approvals for infrastructure such as roads and utilities.

Duy shares an example of a project where he purchased land for approximately $700,000 using private financing. After securing approval for a development concept allowing 110 townhomes, he sold the property for approximately $14,500 per approved lot, generating roughly $1.6 million in total proceeds. This allowed him to more than double his original investment without completing the full development process.

The project did encounter a challenge involving a small section of road that neither the city nor county initially wanted to maintain. Resolving the issue delayed the transaction by approximately six months, highlighting the importance of understanding infrastructure responsibilities, local government requirements, and potential obstacles before committing to a land investment.

Land Entitlement Timelines, Financing, and Returns

Land entitlement investing requires patience, planning, and the right professional relationships. According to Duy, taking a property through the full entitlement process can take approximately 12 to 18 months. However, investors may be able to exit earlier by selling the property once development density or preliminary approvals have been established.

Financing is another important consideration. Duy explains that he has used private lenders from his earlier residential real estate business to finance land acquisitions. On the project involving the 110 townhomes, he secured private financing at a 12% interest rate. Maintaining relationships with lenders who trust your experience and track record can provide access to capital for opportunities that might otherwise be difficult to pursue.

Investors considering this strategy should pay particular attention to:

• Engineering and planning costs associated with the property.

• Local zoning, density restrictions, and development requirements.

• Road access, utilities, and infrastructure responsibilities.

• Financing expenses and the time required to secure approvals.

• Potential builders or developers who could purchase the property.

Understanding these factors before purchasing land can help investors evaluate the potential return while reducing the risk of unexpected delays and expenses.

Multifamily and Self-Storage Investing in a Challenging Market

Beyond land development, Duy also discusses his experience with multifamily and self-storage investments. His portfolio includes a 166-unit apartment community in Bradenton, Florida, and a self-storage property in Texas. Both investments have faced challenges in the current market, illustrating how rising interest rates, operating expenses, and changing market conditions can affect real estate performance.

The Bradenton multifamily property experienced difficulties refinancing after interest rates increased significantly. Even though the original business plan involved increasing rents and improving the property’s performance, higher borrowing costs made refinancing difficult. This highlights the importance of evaluating debt maturity dates, refinancing assumptions, and debt service coverage when underwriting multifamily investments.

His Texas self-storage investment has also experienced slower-than-expected occupancy growth. The team initially operated the property without on-site staff, but that approach did not produce the desired leasing results. They subsequently experimented with different property management strategies, including bringing in on-site personnel. The experience demonstrates that operational efficiency and technology must be balanced with customer service and the specific needs of a property’s market.

Building Generational Wealth Through Real Estate

For Duy, real estate investing is about more than generating returns. His primary motivation comes from his wife and three sons, and his desire to create a lasting financial foundation for his family. He views building wealth as a way to provide long-term financial security and establish a legacy that can continue supporting his children even when he is no longer around.

His investment journey also demonstrates the importance of adapting when market conditions change. Moving from residential flipping into multifamily syndications, self-storage, and land entitlement investing has allowed him to explore different strategies and identify new opportunities. Rather than relying on a single asset class, Duy continues looking for ways to create value through real estate while keeping his long-term goals in focus.

Who Is Duy Nguyen?

Duy Nguyen is a real estate investor and entrepreneur with experience across residential property flipping, wholesaling, multifamily syndications, self-storage, and land development. After building a residential investment business handling approximately 80 to 100 properties annually, he expanded into commercial real estate and has participated in approximately 600 multifamily units across seven syndications. He has also completed three full-cycle land entitlement projects in the past three years, focusing on residential development opportunities involving single-family homes and townhomes.

If you want to hear the full conversation and learn more about Duy Nguyen’s land entitlement investing strategy, his multifamily deals, and the lessons he has learned across multiple real estate asset classes, watch the podcast video or read the complete transcript below.

Land Entitlement Investing FAQ

What Is Land Entitlement Investing?

Land entitlement investing involves purchasing undeveloped land and obtaining the necessary approvals to make it suitable for residential or commercial development. Investors work with civil engineers, local governments, and developers to establish what can be built on a property. Once development approvals or density permissions are secured, the land can be sold to builders or developers at a higher value.

How Does Land Entitlement Investing Make Money?

Land entitlement investing creates value by increasing the development potential of undeveloped property. Investors may purchase land, secure zoning or density approvals, and sell the property to a builder or developer for a profit. Duy Nguyen demonstrates this strategy through a project where he purchased land for approximately $700,000 and later sold it for roughly $1.6 million after obtaining approval for 110 townhomes.

What Is the Land Entitlement Process?

The land entitlement process involves evaluating a property’s development potential, working with civil engineers, coordinating with local government officials, and obtaining the necessary approvals for construction. Depending on the project, this may include establishing development density, securing zoning approvals, and addressing infrastructure requirements such as roads and utilities.

How Long Does Land Entitlement Take?

The timeline depends on the property, local regulations, and the approvals required. According to Duy Nguyen, taking a property through the full entitlement process can take approximately 12 to 18 months. However, investors may be able to sell land earlier after securing development density or preliminary approvals rather than completing the entire process.

Can You Make Money Selling Land Without Developing It?

Yes. Investors can create value by securing development approvals and selling the land to builders without constructing the homes themselves. Duy Nguyen explains that investors can exit at different stages of the entitlement process, including selling a property once its development density has been approved. This approach allows investors to potentially generate substantial returns without managing the construction phase.

What Professionals Do You Need for Land Entitlement Investing?

A civil engineer is one of the most important professionals involved in land entitlement investing. Civil engineers evaluate the property, determine its development potential, and help create plans for the proposed project. Investors also need to work with local government officials and establish relationships with builders or developers who may ultimately purchase the approved property.

Where Should You Look for Land Entitlement Investment Opportunities?

Investors should look for undeveloped land in growing areas with potential for future residential development. Duy Nguyen particularly recommends considering county land bordering city limits. These locations may offer opportunities to negotiate annexation into a nearby city, potentially making development approvals easier to obtain while creating additional value for the property.

Can You Finance Land Entitlement Investments With Private Money?

Yes. Private financing can provide capital for acquiring undeveloped land and pursuing entitlement approvals. Duy Nguyen used relationships with private lenders from his residential real estate investing business to finance a land acquisition at a 12% interest rate. Building trust with lenders through previous successful transactions can help investors access capital for future opportunities.

What Are the Biggest Risks of Land Entitlement Investing?

Some of the biggest risks include delays in government approvals, engineering expenses, infrastructure complications, financing costs, and unexpected issues involving road access or maintenance responsibilities. Duy Nguyen experienced a six-month delay on one project because the city and county disagreed over responsibility for maintaining a road. Investors should carefully investigate these potential challenges before purchasing land.

Is Land Entitlement Investing Better Than Multifamily Real Estate Investing?

Land entitlement investing and multifamily real estate investing offer different opportunities and risks. Multifamily investing generally focuses on generating rental income and increasing property value through operational improvements, while land entitlement investing focuses on increasing the development potential of undeveloped property. Duy Nguyen has experience with both strategies and has found land development particularly attractive because of the opportunities to create value through development approvals.

00:00:41:02 – 00:01:08:16
Rod Khleif
Welcome back to multifamily rock stars. So as you guys know, this is where we interview guests and kind of drill deep on some of their deals and give you actionable items that you can get started on your first deal. If you’re brand new to this. And, and today I’m interviewing Dewey Wynn, who has been a warrior for a long time and has been involved in multiple asset classes, including multifamily, self-storage, and, yeah, it’s great to see you, brother.

00:01:08:22 – 00:01:10:22
Duy Nguyen
Yeah, it’s good to see you. It’s been a while.

00:01:10:24 – 00:01:14:21
Rod Khleif
It has been a while. Yes. It has. When did you join?

00:01:14:23 – 00:01:18:14
Duy Nguyen
I remember right after Covid I want to say was 2021.

00:01:18:18 – 00:01:34:18
Rod Khleif
Wow. Yeah. So it’s been five years. Yeah. Well, so why don’t you give us a little background, buddy? Because I know you were kicking ass with flipping, and and and I don’t know if you did wholesaling or not, but you were moving quite a few properties back in the day. Why don’t you give us some, give us a little background?

00:01:34:20 – 00:01:56:22
Duy Nguyen
Yeah. So we were I primarily did residential. We were building spec homes, fixing, flipping a lot of properties, some wholesale here and there, and the fee buying holds. But we were doing probably about 80 to 100, $100 a year up. It’s not too bad. Yeah, right. Right. Before we join your I joined your program. It was, you know, right after Covid and it seemed like the whole market just froze up.

00:01:56:23 – 00:02:11:07
Duy Nguyen
And I didn’t have any more active income for a few months and started panicking. I was like, well, what do I do? How do I start creating this, you know, passive income? And I came across you and your palate cast. And that’s when I started to join your group.

00:02:11:09 – 00:02:19:01
Rod Khleif
And you’ve done, I think you said about 600 units in multifamily so far. Like seven. Did you say seven Syndications.

00:02:19:03 – 00:02:20:12
Duy Nguyen
Seven Syndications. Totally.

00:02:20:13 – 00:02:40:21
Rod Khleif
Right. Okay. And, you said you just went full cycle on a deal in Ohio. Why don’t you talk about that deal? Talk about, do you recall what you may have paid for it? Back in the day. And if you just do the best you can and and, how you were able to, you know, where is it located?

00:02:40:21 – 00:02:42:05
Rod Khleif
In Ohio?

00:02:42:07 – 00:02:43:08
Doy Nguyen
Cleveland Heights, Ohio.

00:02:43:14 – 00:02:58:18
Rod Khleif
Oh, Cleveland Heights. I love Cleveland Heights, man, I missed. I I’ve been on some stuff there on the park. I remember they were huge units, older buildings, but huge units. I love that area. Okay, I, I can see why you did. Well. So. So it was 90 units. I think you said.

00:02:58:21 – 00:03:18:17
Doy Nguyen
It’s 90 units. We purchased it I want to say about three years ago. Okay. And that was through Tile and Michael. I think they were warriors at one point in time as well. Okay. But we had previously done two other deals with them prior to to this one. And they’ve, they’ve done a great job with, with the property management, the rehab, everything that turning it over.

00:03:18:18 – 00:03:22:10
Doy Nguyen
And we just sold it July. July of this year.

00:03:22:12 – 00:03:27:00
Rod Khleif
And and do you remember any of the numbers, the returns, any of that?

00:03:27:05 – 00:03:30:23
Doy Nguyen
It was just over 20% annualized. So we did pretty good.

00:03:30:23 – 00:03:34:08
Rod Khleif
That one returned. No. That’s good. Yeah, that’s real good. Okay.

00:03:34:11 – 00:03:35:18
Doy Nguyen
Especially in this market.

00:03:35:20 – 00:03:50:11
Rod Khleif
Yeah. And yeah. And it’s a tough market right now. We’re talking about it before we started recording. There’s a lot of operators struggling how I’m struggling on to deal with good debt on it even you know because the expense ratio you know I when you know back then I used to teach a 50% expense ratio. You may remember.

00:03:50:11 – 00:04:12:06
Rod Khleif
Well you don’t get that now. It’s like 60, 65%. And and that really that really kills the the you know why. And so, you know, that’s why a lot of deals are going south and, and I there’s an incredible opportunity coming. And, you know, I think they’re estimating $1 trillion worth of debt coming due. And, you know, the, the, the catch phrase for lenders was extend and pretend.

00:04:12:09 – 00:04:32:20
Rod Khleif
Well, I think that ship has sailed at this point and they’re starting to foreclose. So we’re just going to see some we’re going to see stuff go up for auction. You know, I’ve seen some heavily discounted deals being sold for even less than they cost to build, but, you know, and, and it’s, it’s really being a contrarian investor where, you know, you like Warren Buffett’s famous quote, be be fearful when others are greedy.

00:04:32:22 – 00:04:55:00
Rod Khleif
A lot of greed, you know, 21, 22, 23 but then the flip side, of course, is be greedy when others are fearful and now there’s fear. And so if there’s a time, it’s right freaking now. But, so I know you’ve done some self-storage as well, and, and so, you what do you think? You know, what do you think you preferred?

00:04:55:00 – 00:05:02:02
Rod Khleif
You prefer the multifamily? Are you thinking other asset classes? Do you prefer self storage? What what what is your preference?

00:05:02:04 – 00:05:10:20
Doy Nguyen
Actually, my preference is land. I really love land. Land entitlement. Wow. Yeah. I’ve done three full cycle deals here in the last three years.

00:05:10:22 – 00:05:11:21
Rod Khleif
Oh, fantastic.

00:05:11:24 – 00:05:14:20
Doy Nguyen
Yeah. It’s it’s it’s been fun. My dad.

00:05:14:22 – 00:05:24:05
Rod Khleif
Talk about that. What does that mean? Some people may not know what that means. I do, but I want. Why don’t you explain it? So to give, give us the give us like the sequence of events. So you find the land.

00:05:24:08 – 00:05:41:03
Doy Nguyen
You find the land. You talk to a civil engineer, kind of figure out what you can do with the property. How many. So for me, I was doing townhomes and single family development. Okay. So you kind of figure out what you can put there. And then there’s an engineering process and a lot of meeting up with the city, finding out, you know, what their needs are.

00:05:41:05 – 00:05:45:24
Rod Khleif
So who do you bring on your team to do this? Do you bring on an engineer, a civil engineer, or what kind of engineer?

00:05:46:05 – 00:05:47:03
Doy Nguyen
A civil engineer.

00:05:47:09 – 00:05:49:02
Rod Khleif
Civil engineer. Okay.

00:05:49:04 – 00:05:50:02
Doy Nguyen
So their.

00:05:50:04 – 00:05:58:11
Rod Khleif
Contract with them to to what? Scope it out like lay it out to do they do the planning process for it or does someone else do that.

00:05:58:12 – 00:06:00:02
Doy Nguyen
They basically do everything for you.

00:06:00:03 – 00:06:00:19
Rod Khleif
They do everything.

00:06:00:20 – 00:06:11:12
Doy Nguyen
Okay. Do everything. Yep. So so what I was doing, I was, I was taking the concept that he would create for me, and then I would go to a builder and market my concept or developer, and then I’ll just sell them on paper.

00:06:11:16 – 00:06:29:02
Rod Khleif
Not not now pre purchase or after you’ve purchased the land, do you lock it up and then do that process. Is there like a sequence as far as because you know, a lot of people don’t have a lot of cash to to just tie up land. Do you talk about that piece? Because I know sometimes you’ll just lock it up for a bit or get an option on it.

00:06:29:03 – 00:06:31:03
Rod Khleif
How do you do it or how did you do it?

00:06:31:08 – 00:06:34:16
Doy Nguyen
Oh, well, the three properties that I did in the I actually actually purchased the property.

00:06:34:17 – 00:06:35:14
Rod Khleif
You just purchased them.

00:06:35:14 – 00:06:50:12
Doy Nguyen
Okay, okay. A little baby bear discount that way. Right. But you can negotiate it to where they just hold it, for X period of time, and then you just get extensions until you find your in buyer. And at that point, the end buyer closes on the land, you make that spread.

00:06:50:14 – 00:06:59:13
Rod Khleif
So when you’re looking at the land, do you try to stay in the path of progress? Do you look at where things are going? How do you how do you do that selection process?

00:06:59:15 – 00:07:05:16
Doy Nguyen
He definitely want to find any other growth areas, preferably county land that borders city.

00:07:05:19 – 00:07:08:17
Rod Khleif
Oh, you don’t have city taxes and city brain damage.

00:07:08:20 – 00:07:17:05
Doy Nguyen
Well, you can you know, you can add exit into the city. And so that point they want the tax dollars. Right. So willing to give you basically anything you want. It’s much easier to.

00:07:17:07 – 00:07:41:02
Rod Khleif
Go on the edge. You go on the edge of the city in a county. And then and then you can go negotiate with the city to annex it because they want the tax dollars. And they’ll they’ll bend over backwards to try to help you develop it. Correct. Yeah. Interesting. I like that strategy. Okay. And so you retain a civil engineer just to lay it all out for you, and then you start approaching builders, I guess home builders.

00:07:41:04 – 00:07:47:15
Rod Khleif
And, and see if they want to build a townhome complex or, or houses. How big were these, these pieces of land?

00:07:47:17 – 00:07:52:03
Doy Nguyen
The first one was five acres. Was able to get 57 tunnels.

00:07:52:05 – 00:08:01:12
Rod Khleif
Not 57 on five. Wow, wow. I live on two. I can’t even imagine two and a half size this and get 57 townhomes. Holy cow.

00:08:01:14 – 00:08:03:20
Doy Nguyen
I’m not big units. You’re squeezing them in their.

00:08:03:22 – 00:08:26:01
Rod Khleif
Okay, okay. I love you know, honestly, I would love to build townhouses. I was trying to get my son to get his GC license. He’s getting his roofing license for it, to own his own roofing company. But he hasn’t done the GC yet. And I’d love to build townhouses. You know, to me, you know, because I, my, my ex rented one here and I paid for it, and, and, you know, you just throw these things up.

00:08:26:01 – 00:08:37:16
Rod Khleif
Three bedroom, two bath, two story, had a little one car garage and just stuck together and nice little subdivision. Is that kind of what these were like side by side townhouses. What they, what they put in there.

00:08:37:18 – 00:08:41:01
Doy Nguyen
Attached, you know, six and eight unit attached to buildings here.

00:08:41:02 – 00:08:48:20
Rod Khleif
Yeah. Okay. Okay. So what are the what are the returns for you when you do one of these, land and and what are you in, by the way?

00:08:48:21 – 00:08:51:07
Doy Nguyen
I forgot I’m in a Winter haven or Polk County, Florida.

00:08:51:11 – 00:08:53:12
Rod Khleif
Oh, hell, you’re right up the road. Okay.

00:08:53:14 – 00:08:54:09
Doy Nguyen
Far from you.

00:08:54:11 – 00:09:11:16
Rod Khleif
Okay. And so there’s a lot happening down here. My God, you can’t keep people out of Florida right now. This would be the place to do it. So what kind of returns were you getting on these, entitlement and how? First, let me ask this question. You put it, you buy it, you close on it. How long is the entitlement process take?

00:09:11:19 – 00:09:16:06
Rod Khleif
You know, a range. I’m sure it’s not locked. Yeah.

00:09:16:08 – 00:09:26:11
Doy Nguyen
So. So with Tommy, you can exit in multiple different stages. You know, one where you go for the full, full cycle, full entitlements that can take anywhere between 12 and 18 months.

00:09:26:15 – 00:09:30:04
Rod Khleif
Where you’re where you’re putting the roads in and all that business and the, the water.

00:09:30:06 – 00:09:33:21
Doy Nguyen
You’re just getting it fully entitled so that you can develop it, put the roads.

00:09:33:21 – 00:09:41:24
Rod Khleif
In title just means approvals approvals. Yep. Okay okay okay. So fully entitled. And what are some other stages where.

00:09:42:01 – 00:09:53:20
Doy Nguyen
You can sell it? Where I sold his last project was 110 townhomes. But it was just paper right. And so I had the concept, I got to where it you know, the proved for that many units per acre.,

00:09:53:22 – 00:09:55:17
Rod Khleif
You get you get the density. It’s called.

00:09:55:18 – 00:10:03:21
Doy Nguyen
The density. Right. But I didn’t take it through the full entitlement. So I just sold it at the paper status or the approval status for the.

00:10:03:23 – 00:10:08:04
Rod Khleif
Can you share what what kind of returns you got or how much you made or I mean.

00:10:08:06 – 00:10:13:10
Doy Nguyen
That one, that one. I bought it for 700. The dirt. Wow. Okay.

00:10:13:12 – 00:10:16:22
Rod Khleif
And did you finance it or pay cash?

00:10:16:24 – 00:10:18:15
Doy Nguyen
That one I financed.

00:10:18:17 – 00:10:21:07
Rod Khleif
You find a banker through the seller.

00:10:21:09 – 00:10:22:04
Doy Nguyen
Private lender.

00:10:22:10 – 00:10:28:14
Rod Khleif
Private lender. Okay. You got private money from your from your residential days. Got it. Okay. Right. One of those guys. Okay.

00:10:28:17 – 00:10:41:03
Doy Nguyen
Yeah. And then I sold it just over 14.5 per paper lot. So let me do the math real quick. 145 times 110. So about 1.6 million.

00:10:41:05 – 00:10:48:22
Rod Khleif
Should you double more? Wait a minute. Seven. You, yeah. You more than doubled your money. Fantastic. That’s. And how long was that process?

00:10:48:24 – 00:11:03:18
Doy Nguyen
That process? Well, so I had an issue. We had a little road issue of who wanted to claim whether it was a county road or a city road, and that took took very. That’s about six months to get through. Gotcha. But nobody wanted to maintain this road.

00:11:03:20 – 00:11:04:08
Rod Khleif
Gotcha.

00:11:04:12 – 00:11:10:02
Doy Nguyen
It was in the county road. Nobody wanted to maintain it. And it was just a small strip of road. It was like maybe 300ft.

00:11:10:08 – 00:11:11:07
Rod Khleif
Oh, geez.

00:11:11:09 – 00:11:19:12
Doy Nguyen
Finally, the city you decided to take take the road and allow me to annex it in. And that’s when we were able to close. It’s just we had to figure out who was going to maintain that road.

00:11:19:13 – 00:11:37:09
Rod Khleif
Gotcha, gotcha. Wow. And so. Yeah. So you use one of your private lenders from your from your flipping days, I’m sure. And, you know, you you meet a lot of them when you’re doing that. And if you give them a return and they see your got integrity and you do what you say you’re going to do, then they’re good with loaning your money.

00:11:37:11 – 00:11:42:10
Rod Khleif
Love it. You got, you got you got to pay a higher interest rate. You probably paid a decent interest rate for that money, right?

00:11:42:12 – 00:11:43:17
Doy Nguyen
I paid 12% for.

00:11:43:17 – 00:12:05:11
Rod Khleif
That money. Yeah, 12. Yeah. See, that’s that’s hard money. Hard money. Interest rates. Probably a couple points typically too. You pay a couple of points, but, I, my lenders relinquish the points at some point, but I paid 10 to 12% to back in a lifetime ago. 30 years ago. But but, Okay. Do you know, you haven’t been you haven’t been at it as long as I do.

00:12:05:12 – 00:12:26:18
Rod Khleif
You don’t have anybody bitching how things are 7%. I don’t know if you’ve heard me say this before. When I got in the business when I was 18, the interest rate was 18%. True story. And I remember freaking backflips when it hit seven. I’m like, holy shit, at 7%, you know? So, you know, just to give context. But yeah, I mean, right now, you know, multifamily is really struggling.

00:12:26:18 – 00:12:44:08
Rod Khleif
It’s really a meltdown. But again, with crisis comes opportunity. And, and, I, I really believe there’s some incredible opportunity coming. I love the land play. You told me you’re struggling a little bit with your self storage. Any idea why that that you haven’t gotten the occupancy up? Any feeling on that?

00:12:44:09 – 00:12:46:19
Doy Nguyen
I think it’s just the market itself.

00:12:46:21 – 00:12:50:19
Rod Khleif
Really don’t want to spend money to to store stuff,

00:12:50:21 – 00:13:01:11
Doy Nguyen
And in the time of the market, we bought this thing about three and a half, four years ago, I think. Right. And, that’s it just kind of shifted during that time, Yeah.

00:13:01:15 – 00:13:07:02
Rod Khleif
So it’s not it’s not a marketing thing. It’s not a management thing. It’s a, it’s a a market thing.

00:13:07:04 – 00:13:19:16
Doy Nguyen
It could be maybe a little bit of both. But it’s, it’s, you know, we’ve been trying to figure it out, you know, with multiple different strategies, implementing new property managers, on site staff.

00:13:19:16 – 00:13:29:09
Rod Khleif
And did you, did you incorporate did you embrace tech like, you know, tech. You can take one of these self storage units and damn near make it where you don’t even need an on site sometimes.

00:13:29:12 – 00:13:35:15
Doy Nguyen
Well that’s where we started was was no no on site staff okay. And it didn’t go well.

00:13:35:19 – 00:13:48:04
Rod Khleif
It didn’t work. You couldn’t sell units. Yeah. Yeah, I could see I could see how that could slow down your sales and marketing. Yeah. I didn’t even think about that. Where is the self storage located? What state?

00:13:48:06 – 00:13:49:00
Doy Nguyen
Texas.

00:13:49:02 – 00:13:51:23
Rod Khleif
It’s in Texas. Okay. I love Texas, but. Yeah.

00:13:52:00 – 00:13:59:18
Doy Nguyen
Okay. Now we’re starting to get it stabilized. You know, the occupancy is starting to increase. It’s just it’s not not going to at the velocity where we need it to.

00:13:59:24 – 00:14:22:22
Rod Khleif
Yeah. Yeah. Well, there are people moving into Texas. At least there’s an influx of, you know, because I’ve got assets. I had a bunch of assets in Dallas and Houston. Well, I still do now. I have assisted living facilities in Dallas and Houston, and but I still have multifamily in San Antonio, and I love Texas, but, you know, I understand, you know, guests on the multifamily front, they massively overbuilt.

00:14:22:22 – 00:14:42:17
Rod Khleif
So, you know, we’re dealing with an issue which which will again, which will reach equilibrium. And then the whole expense ratio thing will equilibrium as well, because, you know, just you can’t sustain these things at that kind of an expense ratio. So the rents have got to come up. They flatlined or even gone down on multifamily. Where was your multifamily?

00:14:42:19 – 00:14:44:11
Rod Khleif
Besides Ohio.

00:14:44:13 – 00:14:46:04
Doy Nguyen
Ohio and Florida.

00:14:46:06 – 00:14:49:04
Rod Khleif
In Florida. Okay. Where in Florida?

00:14:49:06 – 00:14:50:19
Doy Nguyen
Over there in Bradenton.

00:14:50:21 – 00:14:53:13
Rod Khleif
Bradenton? Hell. Right up the road. Okay.

00:14:53:15 – 00:14:59:10
Doy Nguyen
Yep. 166 units. Actually, I think it was the first one. Probably the second deal.

00:14:59:12 – 00:15:02:17
Rod Khleif
Nice, nice. You still have that one?

00:15:02:19 – 00:15:04:15
Doy Nguyen
That one’s struggling. Struggling as well.

00:15:04:20 – 00:15:10:00
Rod Khleif
That’s struggling in Florida. Well Bradenton has got some. Is that a C property.

00:15:10:02 – 00:15:12:14
Doy Nguyen
No it’s it’s it’s a it’s a B class.

00:15:12:19 – 00:15:13:14
Rod Khleif
It’s a B plus.

00:15:13:15 – 00:15:15:01
Doy Nguyen
Wow. Excellent. Yeah. It’s,

00:15:15:03 – 00:15:16:24
Rod Khleif
Why do you think it’s struggling?

00:15:17:01 – 00:15:29:09
Duy Nguyen
Just a plan. You know, at this time, everything was going right, you know, increasing in the Y, everything incurs rents, but then can’t refi, couldn’t refi because, you know, interest rates doubled.

00:15:29:09 – 00:15:30:14
Rod Khleif
So it’s the debt.

00:15:30:16 – 00:15:31:13
Duy Nguyen
It’s the debt.

00:15:31:15 – 00:15:47:17
Rod Khleif
Gotcha. Yeah, that’s a challenge right now. And that’s the reason why there’s so much opportunity. Because, you know, if you’ve got bad debt or you’ve got a, a term, you know, they call it the balloon. In our world, the residential, it’s a balloon payment. But it’s basically the loan has a term. And you hit that term you have two options.

00:15:47:17 – 00:16:06:11
Rod Khleif
You can sell or you can refi. Well, sales are way down and refi. You’ve got to meet debt service coverage requirements, which is which is challenging what the rates were. The right stand near impossible. So yeah, I get it. Yeah. I mean, it’s it’s gonna, you know, and I think the, the fed is meeting today or or am I or tomorrow.

00:16:06:12 – 00:16:23:13
Rod Khleif
I don’t remember their meeting any moment now and they plant that. What everybody’s saying is just going to hold the rate steady. But I think we need to see some rate reductions. And I think the new fed chair is looking for ways to try to make that happen. I don’t, you know, because he’s a Trump appointee and I know Trump is pushing for that.

00:16:23:13 – 00:16:47:13
Rod Khleif
But, I think he’s trying to rework how unemployment and the job growth is actually calculated so that, you know, he can position it to do some rate reductions. Let’s hope that happens. But so let me ask you this. Do it. You’re a freaking badass. You’re you’re always, you know, moving and shaking and and doing what you have to do to survive and and keep moving forward and kicking ass.

00:16:47:14 – 00:16:50:04
Rod Khleif
How do you stay motivated, man?

00:16:50:06 – 00:16:51:13
Duy Nguyen
You know my family.

00:16:51:15 – 00:16:53:06
Rod Khleif
Yeah. You married kids?

00:16:53:08 – 00:16:55:15
Duy Nguyen
I’m married. I got three boys and a wife and.

00:16:55:19 – 00:16:56:07
Rod Khleif
Oh, wow.

00:16:56:12 – 00:16:57:21
Duy Nguyen
Wow me every day.

00:16:57:22 – 00:17:06:24
Rod Khleif
And that’s nice. That’s nice. So it’s like. It’s like around. It’s around legacy. It’s around, you know, just taking care of them, like I get it.

00:17:07:01 – 00:17:19:13
Duy Nguyen
Yeah. Legacy. You know, it’s. I just think, you know, how can I set them up for the future, you know, something. Something solid and where they don’t have. If I’m not here, how can they continue to be supported without me?

00:17:19:15 – 00:17:38:00
Rod Khleif
Yeah, yeah. You know, it’s kind of. We’re in crazy times right now with AI. It’s like, you know, where do you send them to? Do what? I mean, what what roles can they do that AI is not going to replace? And, you know, I’m dealing with that with my daughter right now who’s become expert at freaking AI. She’s killing it.

00:17:38:02 – 00:17:41:14
Rod Khleif
And we’re having a lot of fun. I use our using AI at all in your stuff.

00:17:41:14 – 00:17:43:16
Duy Nguyen
I’m not. I’m so behind other times. Yeah.

00:17:43:19 – 00:17:44:03
Rod Khleif
Buddy.

00:17:44:04 – 00:17:45:22
Duy Nguyen
Buddy, I need it.

00:17:45:22 – 00:18:03:02
Rod Khleif
Will blow your mind. Okay? Yeah, I went to. Let me tell you what I did. I went to a Nikki conference, which is the senior housing conference in Chicago. I was just there, last week, and I met with. When I’m telling you, I met with 45 different people for 30 minute appointments. I’m not exaggerating. Maybe 50. Okay.

00:18:03:07 – 00:18:23:15
Rod Khleif
And I brought this. This plot transcript scrubber thing. You put it on the back of your phone and it records the conversation and transcribes. And I asked everyone for permission. You have to have it there to record. And but then I forgot to say their names as I was recording and, and then I had, you know, I had business cards, a big stack of business cards.

00:18:23:15 – 00:18:41:16
Rod Khleif
And I’m like, this is a fucking mess. I got to try to put together, you know, because I want to call them. I want to email them and follow up all the work happens afterwards. So I gave it to my my guy that handles the AI stuff, and it matched up the freaking, transcripts with the with the recordings based on the time.

00:18:41:17 – 00:19:00:14
Rod Khleif
Put in the stuff and try to picture the business cards. Put all that stuff into a spreadsheet in like literally six minutes. Done. Boom. And I’m just as just one example. And man. And and I’ll tell you, you know, I’ve even had some clone videos out there that looked just like me. You wouldn’t know. It’s not me.

00:19:00:15 – 00:19:21:18
Rod Khleif
Yeah, I mean, it’s it’s not me and it’s, it’s and it’s they’re they’re damn good. So. Yeah. No, I, I’m, I’m loving what we’re doing with AI, but, but you hear all this onerous stuff about, hey, you know, they may take us all out within the next ten years and, you know, because they don’t need humans, but, you know, a lot of lot of a lot of crazy, crazy, crazy.

00:19:21:18 – 00:19:38:08
Rod Khleif
And then Optimus is going to have all these robots. And, do we want a robot in our house? If AI says no, we don’t need humans anymore. So it’s like, you know, all these, you know, I, I mean, I get sucked into some of this TikTok crap where the people are talking about, you know, how they’re going to end us and all this, and.

00:19:38:09 – 00:19:45:01
Rod Khleif
But they did, you know, just recently break into the big banks. You know, the agents got into the banks. That was a big thing.

00:19:45:02 – 00:19:48:07
Duy Nguyen
Yeah, I heard that. Yeah. That’s crazy. What technology is going crazy.

00:19:48:07 – 00:20:12:23
Rod Khleif
Crazy stuff happening. But but interesting times, but. Well, listen, brother, I appreciate you coming on for a few minutes. I know you’re busy as hell, and and it’s great to see you. It’s been way too long, but. And we’ll probably have a warrior event in Sarasota. Probably in probably February or March. Maybe January, somewhere in first of the year would be great if you’re able to come.

00:20:12:24 – 00:20:18:20
Rod Khleif
Would love to see you, brother. But yeah, I appreciate I appreciate you coming on and value.

00:20:18:22 – 00:20:24:07
Duy Nguyen
Yeah. Appreciate you. And actually, it’s funny, my Facebook memory from six years ago was at your event. Sarasota.

00:20:24:08 – 00:20:32:16
Rod Khleif
No kidding. Oh. No kidding. Oh. That’s awesome. That’s awesome. Well, it’s great to see you, brother. I appreciate it. And and you just keep kicking ass. Okay.

00:20:32:18 – 00:20:33:10
Duy Nguyen
Thanks, rod.