Charles and Alekhya, both seasoned real estate investors, have successfully expanded their portfolios across multiple states. Charles began his real estate journey in 2011, growing from residential rentals in California and Georgia to over 1,000 multifamily units. Since becoming a Warrior in December 2022, he has been involved in 64 units, including 52 units at District 52, where he partnered with three other Warriors, and 12 units at Concho Vista, in a JV with another Warrior. Now focused on commercial real estate, Charles emphasizes investor education, asset management, and underwriting. Alekhya, active in real estate since 2009, moved to the U.S. in 2015 and has expanded his investments, focusing on multifamily assets in Texas over the past two years. Both Charles and Alekhya also invest as limited partners, with Alekhya owning residential properties in the U.S. and the U.K. Charles holds an MBA from Emory University and lives in the Bay Area with his wife and son.

Here’s some of the topics we covered:

  • The Inside Story of How the Team Landed Their First Deal
  • DSCR in Multifamily Explained
  • Why the Team Couldn’t Say No to This Deal
  • The Bold Long-Term Vision for This Asset
  • The Power Players Behind the Deal & What They Do
  • The Struggles That Shaped The First Deal
  • The Mindset Shift You Must Embrace to Score Your First Deal
  • The Deal Flow Dam Is About to Burst According To Brokers

If you’d like to apply to the warrior program and do deals with other rockstars in this business: Text crush to 72345 and we’ll be speaking soon.

Full Transcript Below

00:00:29:00 – 00:00:50:04
Rod
Welcome to multifamily Rock star. So as you guys know, these are the episodes where we dive deep into our guests deals and really give you some practical and actionable items and tasks and and things you can do to get really get started and do your first deal, especially if you’re brand new to multifamily. And I was always I’ve got my co-host, Mark Nagy, with me here going on.

00:00:50:04 – 00:00:52:15
Mark
Right. I’ve heard you’re going on, vacation tomorrow.

00:00:52:19 – 00:01:14:16
Rod
Yes, sir, yes, sir. Going to Italy for for almost three weeks. So really, really looking forward to it. And so, Yeah. Well, yeah, I need it. Let me just tell you that. So I’ve got Charles Xu and, Alekhya Mukherji On with us today. They’re warriors. And we’re going to talk about their their first deal which was a 52 unit.

00:01:14:16 – 00:01:16:20
Rod
I if I recall. Is that correct Charles.

00:01:16:22 – 00:01:19:05
Charles
Yeah that that’s correct exactly. Yeah. Okay.

00:01:19:07 – 00:01:24:07
Rod
Well tell us, tell us how you came upon that deal and then and then let’s let’s go through it.

00:01:24:09 – 00:01:41:22
Charles
Yeah. So this is our, our deal. Once we joined the warrior programs, just set the stage a little bit to to the audience. We joined already in 2020 2nd December, but then it took us a while. So the deal closed in April this year, April 2024. So that’s a good about a year and a half, right.

00:01:41:22 – 00:02:00:22
Charles
So as you know, the deal flow is pretty dry these days in the last 12 to 24 months. And then we it really took us time to to talk, to build our relationship with with brokers and then be disciplined and the learn and the ins and outs, how to underwrite it, deal how to build a team and how to be comfortable with this market.

00:02:00:22 – 00:02:18:21
Charles
So it took us a while, but we are really happy about the results. And then now we’re seeing, you know, with the first deal closed, we’re seeing more momentum as well. Like, okay, we’ll talk a lot more about the deal to sell. But for first and foremost I want just want to say this is our first deal. But also we learned a lot.

00:02:18:21 – 00:02:40:08
Charles
And then it’s a long process for the first one. But we are very much hope. You know, this gives us the momentum going into the future. Yeah. In terms of yeah, in terms of this deal, it’s a fantastic assets. Yes it is. It’s a smaller market, but still with 120 K people. In the city it’s Costa Angel in Texas, 52 units as you mentioned.

00:02:40:13 – 00:03:03:16
Charles
That’s a value add deal. And then we are getting a very good base, essentially, the seller is selling the deal to us with the same price they paid in 2020. So we went back four years time. And we’re assuming there are 3.48% loss. So it’s a fantastic rate as well. So yeah I would defer to yeah. Like elected to to talk about all the other details of it.

00:03:03:17 – 00:03:07:07
Charles
But that’s the overall and then the background.

00:03:07:09 – 00:03:28:01
Alekhya
Perfect. Yeah. As Charles mentioned I think we were initially not looking at San Angelo honestly as a market. I’m based in Texas, but we were looking at kind of the primary markets like most other groups as well. But we like this deal came across because I had started building relations with a couple of brokers in the market, and they brought it to me.

00:03:28:03 – 00:03:53:22
Alekhya
And so we started exploring, San Angelo as a market and then the property. And I think what is really attractive about the property and why we got interested is twofold. As one is, as Charles mentioned, the zoom on the loan was really attractive. And to think, what we figured out as we started the conversation with the broker is that, the seller was really having some troubles with his, there were a syndication group as well.

00:03:53:22 – 00:04:15:04
Alekhya
And so they were having some troubles with their LPs. And so the LPs were wanting to get out of the deal. And so he was kind of in a position where he was forced to sell. And, it was basically it was the property was being mismanaged. So they had very high vacancies, not taking care of the tenants, lot of maintenance issues.

00:04:15:06 – 00:04:32:02
Alekhya
And so we saw a lot of like low hanging fruit here to really turn the property around with like professional management. And that’s what we have done since, since April, like when we took over, the property was 60% vacant. And now over the last four months we have brought it up to like 85, 90%.

00:04:32:04 – 00:04:40:10
Rod
You mean 60% occupied and now it’s 8590. Gotcha. Okay. Question how many years were left on that loan?

00:04:40:12 – 00:04:41:21
Alekhya
Seven. There is.

00:04:41:22 – 00:04:54:05
Rod
Oh, fantastic. Fantastic. Yes. Yeah. That’s that’s fantastic. And so you’ve already got it up to 85, even 90% in just a few months. So what did you do there to to get that occupancy up. Talk about that.

00:04:54:06 – 00:05:20:18
Alekhya
But we did two things. One is like we really got in, professional property management company almost market because they have other properties of the market. And two, we really focused on the tenants. And so any work orders, I think we have been kind of turning them around fairly quickly. So they are getting happy. There were four down units that we have rehab completely as well.

00:05:20:20 – 00:05:42:09
Alekhya
And from a property amenity standpoint, they had a pool that was nonfunctional for two years. They had a laundry that was nonfunctional for two years. So we have brought all of those, back online. And that has really generated positive, feedback from the tenants. And now they are actually recommending their friends and family to come and live off the property.

00:05:42:09 – 00:05:51:19
Alekhya
So we have gotten a lot of like, positive, good footfall from just tenants recommending others to come and run, with us.

00:05:51:21 – 00:06:20:10
Rod
You know, it’s interesting. I’m actually dealing with that right now in a portfolio that I’m in with an ex partner that ran it into the ground and tons of pools down, laundries down. And I mean, it’s just simple stuff. I mean, come on. So how much money did you raise for this deal and how much was, how much of it was CapEx noted for CapEx by the way, guys, CapEx means these improvements like these down units that they had, things like that, maybe maybe repairs that aren’t really expensive, all the capital expenditures.

00:06:20:13 – 00:06:23:07
Rod
So if you would speak to that, please.

00:06:23:09 – 00:06:37:13
Alekhya
Yeah. So we raised in total about 1.7 on the deal. We had about seven or k, for CapEx and that was interior as well as on the exterior stuff that we are planning to do now.

00:06:37:13 – 00:06:53:04
Mark
Now, really quick, before we get into what you guys are doing on the deal to increase value and that whole plan, one thing I wanted to ask about was San Angelo in general. I know you said you weren’t looking at that. Obviously you look at a map, it’s it’s a little bit of health care, but it is a town of quick Google search.

00:06:53:04 – 00:07:14:14
Mark
I see 100,000 people, so it’s that tiny. But it’s not a major metro. What, if anything, did you guys change in your your underwriting, in your evaluation process to feel comfortable of buying an A? Let’s call it a smaller town than, let’s say, a Dallas, an Austin, a Houston, whatever. What what did you change in the underwriting process?

00:07:14:16 – 00:07:39:15
Charles
Yeah, I can I can take the lead on this and I can add on anything I’m missing. I think we didn’t, the short answer is we didn’t we didn’t change any of our, our our requirement or we it’s the same a similar requirement on the two on a numbers, a return projection. And then the, you know, all the SCR projection models and also, the, you know, the exit cap rates.

00:07:39:19 – 00:07:55:18
Rod
We want to let me and let me interject for one second. Charles, let me interject. So you said DSR guys, if you don’t know what that means, that’s debt service coverage ratio. You know, in our world, in the commercial real estate world, the banks look at the property’s ability to service the debt. They’re not looking at your personal debt to income.

00:07:55:23 – 00:08:21:22
Rod
And so a typical debt service coverage ratio can be anywhere. Well, it can be a negative number to, you know, a positive number. But the average that a bank will want is to see is 1.25% as a minimum. So that means if a property’s net income is 125,000, yeah, per and per year. And the debt, is 100,000, that’s a 1.25% debt service coverage ratio.

00:08:22:02 – 00:08:27:16
Rod
So anyway, I’m sorry, I just wanted to explain that when you when you glossed over that acronym, please continue. Just.

00:08:27:18 – 00:08:45:21
Charles
Yeah, that’s a really good call. So what I will tell you, Mark, is what, what’s make us say yes or be interested in this market is, a few things. One is, it is not a super small town. Used to have 100,000, 120,000 people. That’s the one.

00:08:45:23 – 00:08:48:15
Rod
That’s not a small town. That’s not a small town. Yeah, yeah.

00:08:48:17 – 00:09:15:11
Charles
Not at all. And then, another very important factor is if you look at the, the job, the job there, it’s a very strong job market and it has multiple industry there. It’s it has a very large university, Angelo State University. They have, 1600 employees, and they’re more than 10,000 students enrolled. There have a major Air Force officer training facility there.

00:09:15:14 – 00:09:38:01
Charles
That’s a good feather Air Force training facility. And then they have one of the largest, health healthcare network, channel? Channel. It’s called a channel clinic there. And that’s one of the major employers in town. Goodyear Tire, they have their global testing base there as well. So you have this nice, very diversified employment base.

00:09:38:03 – 00:09:42:12
Charles
So that’s where we really like this town and not just let me.

00:09:42:14 – 00:10:01:17
Rod
Yeah. I’m sorry. Sorry, sorry, sorry to interrupt. Let me interject something on that note. Okay, guys, one of the and he’s saying all the right things here because one of the things you want to see is all based. Everything is based on jobs. Guys. That’s is that is the most important factor when you’re buying multifamily and you want to see employment industry diversity.

00:10:01:23 – 00:10:18:09
Rod
No one horse towns okay. Because you know, even an air force or an army base if that’s the main employer and that’s the big horse. If that horse gets sick or leaves town, you’re in trouble. So it’s very important that there’s a lot of diversity. So, you know, and you can I can tell you really did your research, Charles.

00:10:18:09 – 00:10:33:12
Rod
And that’s that’s really good. And, you know, my minimum for a town typically is 80 to 100,000. So you’re well above that with with San Angelo. I’ve actually looked at assets there as well in that town. So I like that market. So okay, I’ll.

00:10:33:12 – 00:10:48:06
Mark
Mention real quick I was a partner on a, on a deal, last year that we bought in a town of 19, 20,000 people. And, Charles, you said something. One of the things I like that pushed me over the edge for that deal was a college. There was a small college there and a lot of jobs that got brought in.

00:10:48:06 – 00:11:04:07
Mark
And I’m glad we did invest because I think year one, we’re going to make 13, 14% cash on cash returns on that deal. So there can be a lot of opportunity in those smaller towns that maybe other people like a ride or, you know, the bigger operators may not touch. So something, something to think about there.

00:11:04:09 – 00:11:29:19
Alekhya
What you said is we look at all across Texas, that’s kind of our primary, market that we look at. And every time we offer on properties in Dallas, there’s like 20 other offers that we are competing. But when you go to some of these smaller markets, which are not so much in focus, but have probably a more steadier kind of growth in terms of population and job, and not the kind of spikes you see with some of the bigger markets.

00:11:29:19 – 00:11:44:23
Alekhya
With Dallas, your you don’t have one, you don’t have that many people competing with you. But then to I think it’s easier kind of to figure out what the game plan is, because you have that runway in front of you as well to make your business plan work.

00:11:45:00 – 00:12:01:12
Rod
Okay. Okay. What are we going to do. What’s the plan long term for this asset. Is there any are there any other value add components to this. You know what do you anticipate to happen with rents. What did you what were the going in rents and where are they now and where do you anticipate them to go.

00:12:01:14 – 00:12:31:10
Alekhya
Yeah. Great question. So as I said, like we have already started our value add kind of business plan, I think the three big components is one, stabilizing the occupancy, over the next 3 to 4 months to is add the amenities. So we have already brought out, the pool and the laundry. We are thinking of putting in a dog park because a lot of the tenants we have seen have, dogs or pets, at the property.

00:12:31:10 – 00:12:36:16
Alekhya
And currently there is no dog park for them. So I think we, we want to create that.

00:12:36:18 – 00:12:42:23
Rod
That’s an easy, very inexpensive add on. And you’ve got some land for it. You got to have some land for add level land. But yeah, you’ve got.

00:12:42:23 – 00:13:06:02
Alekhya
The granite exactly to to do that. And then I think we, resurface the parking lot, for the tenants and everything else. And then I think the other big play is, unit rehabs for us. And so we are, plan to turn turnover about, like, 40% of the units, with, like, new resurface, counters and everything else.

00:13:06:04 – 00:13:31:03
Alekhya
And so the goal is like for our year one from a proforma standpoint, we didn’t assume any rent growth because our proforma assume that we would just get, get the occupancy up. But I think what we have achieved over the last four months is already, like, somewhere between 30 and 50 bucks, unit kind of rent bumps, some of which is already kind of taking us ahead of where we were from, from a performance standpoint.

00:13:31:03 – 00:13:38:16
Alekhya
So. Wow. We are we are on track right now. So I think the goal is to keep that momentum going as we get into 2025.

00:13:38:18 – 00:13:40:05
Rod
Yeah yeah that’s fantastic.

00:13:40:10 – 00:14:03:04
Charles
Yeah yeah. Go ahead. Another thing in terms of revenue opportunity. We’re looking at other income as well. Right. Other than the rent itself, we are adapting where we are. Provide the tenants an opportunity or option to pay for the cover parking. And also we are charging pad fee, which is pretty standard, but that previous owner just didn’t do.

00:14:03:06 – 00:14:22:12
Charles
And also the laundry room. Obviously we will charge a fee for that, but the previously it’s just not functioning. So we have a brand new equipment there. And then the tenants are very appreciate that, because this is the number one complaint about, from the tenants before. So by doing that, we are really just taking care of people in the right way.

00:14:22:16 – 00:14:27:01
Charles
And then people are paying for that. So I think that’s a really a win win for for both of us.

00:14:27:03 – 00:14:48:11
Rod
Let me just let me just share this with, my listeners here. And so you’re talking about you’re getting upwards of $50 rent bumps. Yes. Okay. If you take those $50 rent bumps and you talk, you cross them over 52 units and you annualize that number and you divide it by a five cap. That’s a $624,000 increase in value.

00:14:48:13 – 00:15:12:19
Rod
Okay, just so you’re listening. So this is why we love this business, guys okay. And you know, let’s say, you know, you get a charge at $25 pet fee. And half the people there take it. So 25 times let’s say 26, times 12, $7,800 annually divided by a five cap is $156,000. Increase in values. Guys. This is why we love this business, okay?

00:15:12:19 – 00:15:35:01
Rod
Because you can ramp the value exponentially by your efforts. So these little numbers add up in a big way. I give you an example. We’ve got a, more of a B plus asset in San Antonio. I use this example. You know, we asked we painted, numbers in the parking spaces and allowed people to pick their own parking space, and they could reserve their parking space right in front of their unit.

00:15:35:06 – 00:15:59:16
Rod
And we had 100 people taken. It was 25 bucks a month that that Annualize was 30,000 and had a four cap. That was a $750,000 increase in value for some paint on the freaking parking lots. Okay. So, you know, again, that’s why we love this business. So the next question I would want to ask is you guys are a team who does what and what are your individual superpowers?

00:15:59:16 – 00:16:04:19
Rod
Or are you both fairly the same, or is one more in one area or the other?

00:16:04:21 – 00:16:24:20
Charles
Yeah, that’s a really good question. Between me and Alexia, I’m based in San Francisco Bay area, so I’m more focused, you know, extending my network and then finding more investors. And they educate those investors about this asset class, how we do business, how we evaluate deals and what is the benefits and what is the risk in this investment as well.

00:16:24:20 – 00:16:40:08
Charles
Right. And then Alicia being based in, Texas, he is more on the building, the relationship with brokers on the acquisition side, underwriting the deals, talking about brokers and lenders. So this is how we divide and conquer between me and like, yeah.

00:16:40:10 – 00:16:48:10
Rod
Probably the asset management as well for a lucky. Yes. Since you’re there. I mean, yeah, I would guess your your boots on the ground, as it were. Yeah.

00:16:48:10 – 00:17:10:23
Alekhya
Which is why I think this, this partnership works really nicely. Right. Because, we can cover most of the bases between the two of us. Me being on the front end with broker relations and underwriting and, Charles doing the investor relations and kind of all the social media and marketing for us. So, I think that has really worked out really well.

00:17:11:00 – 00:17:33:11
Rod
Yeah, sure. You know, and guys, that’s one of the huge benefits of the warrior program is, I mean, we’ve got people everywhere. And, and so, you know, chances are there’s somebody in the market that you’re in, then this is why, you know, our my warriors on somewhere between 200 and 220,000 units that we know of is and most of them done between warriors.

00:17:33:11 – 00:17:35:18
Rod
And you had warriors in on this deal, correct?

00:17:35:18 – 00:17:37:11
Charles
Yeah. Exactly. Exactly.

00:17:37:14 – 00:18:02:20
Alekhya
Out of all of them were like, the whole team is warriors. So that’s why it was like really great to partner because we could all leverage our skillsets because we have a couple of, partners who are really, experienced in construction management. So they’re kind of handling all the CapEx and a couple of people who, do all the, capital raising, plus also the investor relations with Charles.

00:18:02:22 – 00:18:25:04
Rod
Yeah, yeah. By the way, guys, if you’re considering possibly getting some guidance in this business so that you can experience the life you’re wanting this year rather than later, or maybe you just thought you could be more effective if you had a real understanding of what goes on in this business. Text the word crush to 72345 to see if the warrior program might be able to help you overcome any challenges that you have.

00:18:25:04 – 00:18:37:20
Rod
Again, text the word crush to 72345 to apply. And, we’d love to help you. You know, accomplish what you want to accomplish, just like these gentlemen are doing. So, talk.

00:18:37:20 – 00:18:55:14
Mark
About some of those challenges. You know, that time frame of getting up until you. Right, always mentioned this, getting that first deal. It’s always the hardest one. What were some of those challenges, struggles, mindset struggles that you guys went through until you got to that, you know, final closing, that first deal we had.

00:18:55:16 – 00:18:56:14
Charles
Yeah. Go ahead.

00:18:56:16 – 00:19:19:22
Alekhya
I can quite, I can share a couple and then Charles, jump in with yours as well, but like, just getting started, I think, and I’ll focus on the front end with brokers. Right. Like just getting in front of brokers when you’re new, and with no doors behind you or no experience. You start small again.

00:19:19:23 – 00:19:42:13
Alekhya
I think, you just keep calling them building your relations, like, just so that they see you. They know you. So I think it took us, took me a while to kind of start building those relations. So the first six months, as we were underwriting, I was providing very like, direct and, timely feedback. So they knew that we were, serious buyers.

00:19:42:15 – 00:20:09:02
Alekhya
And so over time as that, as that progressed, it kind of helped us build, that rapport with a couple of brokers. And so they started now, calling me back and saying, like, I have this deal. Like, are you interested in, in this property? So that was one I think it’s just like having that mindset of like, it’s, it’s a long game, so it’s not like I start and two weeks later I have a deal and that I can, take down.

00:20:09:02 – 00:20:33:09
Alekhya
So that was one. And for me, the other big one was really, finding the right partners. And so as I said, like this is why I really appreciate being part of the The warrior group is, we could have done it potentially by ourselves. But I think just having that network and being able to reach out to people where we don’t have experience or we there’s a question and I’m like, how much do I need to spend on a on a water heater?

00:20:33:09 – 00:20:45:14
Alekhya
I can just call up somebody and who is doing that and say, like, what? What should I factor in? And so just building those relations upfront I think helped us quite a bit. So those were kind of the two big ones for my son.

00:20:45:16 – 00:21:05:11
Rod
You know, one thing you said, is, you know, it’s not a get rich quick thing and it’s just please know that guys, it’s not a get rich quick thing, but it is to become super freaking wealthy over time thing. So just keep that in mind. If you if somebody tells you, oh, get into this multifamily game because you can get rich fast, no, no, you can get acquisition fees and you should get acquisition fees.

00:21:05:11 – 00:21:19:07
Rod
And typically they’re 3 to 5%. And you know, on a small $3 million deal that’s 150,000. So it’s not pocket change. But but again it’s not get rich quick. It’s the money’s in the end game Charles.

00:21:19:07 – 00:21:21:05
Mark
Do you want to go as well. Sure.

00:21:21:06 – 00:21:42:12
Charles
Yeah. I think my one of my biggest challenges is the mindset change again. So I, I’m still have my W-2 job. Right. So before it was before this is more of like an employee base or I go to, 95, 95 and then you do your work right. You get rewarded. In this business. It’s very much entrepreneurship.

00:21:42:13 – 00:22:02:15
Charles
Right. So I think again, echoing to what, like I was saying, being in the community with a lot of people like this really helped me to change my own mindset. So, okay, now I sort of just, shouldn’t say have I changed most of my internal identity to myself? Right. So this is the what have we as a entrepreneurship, we want to do.

00:22:02:19 – 00:22:28:16
Charles
We want to bring business and want to providing value to our investors. So not the change in my mind is is very different from what I had before. So I think this change inside of myself, people can feel that, can feel that my investors can see that and they they trust to you because now you’re in the you’re becoming a investor friendly or you have become a seasoned investor or syndicator per se.

00:22:28:18 – 00:22:47:21
Rod
Yeah, yeah. Charles. Continue continue with with another question and that’s give my listeners one action item that they could get, you know, focus on right away to get started. What’s what’s something that comes to mind when I ask that question? And then I’d like to ask you the same question. Or like you.

00:22:47:23 – 00:23:07:20
Charles
Yeah, I was thinking, really do some, quote unquote, soul searching to see what do you want to achieve in your life? You can ask that question today. Right now. Right. And then we we keep asking that what kind of lifestyle you want. What are you trying to achieve? Who do you want to spend time with for how long?

00:23:07:20 – 00:23:30:08
Charles
And then do you want to get to choose? Who do you want to spend time with, right? And then ask yourself, is your current job or current career get you there or not? Right? Be honest to yourself. Be honest to yourself, right? And then there’s no wrong or right answer. Some people like your job fantastic. Great, right? And if you don’t think about how to, how do you make a change to that?

00:23:30:08 – 00:23:37:16
Charles
Right. So you can ask that question, ask and then give yourself honest answer. Right now I think this is something everyone should do.

00:23:37:18 – 00:23:38:07
Rod
Nice.

00:23:38:07 – 00:23:56:09
Alekhya
Alicea yeah, I would I would I don’t do that saying like take action. Honestly, I speak to so many people who also have a W-2 and like and keep telling me I want to get into this space, I want to get into the space, really want to invest. And they’re still having that same conversation with me a year down the road.

00:23:56:09 – 00:24:12:24
Alekhya
So it’s like, really take action and really get started. Like it’s as you said, it’s it’s not rocket science, but start taking the small actions like pick up the phone, call somebody, be an investor or a broker and just start the process.

00:24:13:01 – 00:24:35:02
Rod
Well, I think both of you guys are pretty analytical. And, you know, as you know, being analytical, you know, most people that are analytical have to check off every single box before they make a move. And, and and that’s what happens as years go by. And I would just tell you, if you’re listening, just realize that you’re not going to see the whole path.

00:24:35:02 – 00:24:42:22
Rod
But people have done it before you. You just, you know, like Doctor Martin Luther King said, you to take the first step, the next step will be revealed. You guys agree with that?

00:24:42:24 – 00:24:44:08
Charles
Absolutely.

00:24:44:10 – 00:24:45:16
Rod
Yeah. Well, look what.

00:24:45:17 – 00:25:04:05
Mark
What are those excuses for? Not taking action has just been eliminated. Earlier this week, people sitting on the sidelines. Oh, I’m going to wait for interest rate cuts and all this sort of stuff. The fed just cut rates 50 basis points. Maybe you guys want to talk about what you’re seeing in your local market, Texas. You don’t have to talk about the United States obviously.

00:25:04:05 – 00:25:18:14
Mark
But with that happening, what are you guys seen in the local market in Texas? Where are things going in terms of deal flow? What’s happening? What are you guys feeling? You know, being on the ground there? As the rates are starting to shift here finally.

00:25:18:16 – 00:25:39:07
Alekhya
Yeah, I think, what I’m expecting, it hasn’t quite hit yet, but I think what I’m expecting is a lot more sellers that are starting to think about, putting their properties back on the market. I think what we saw over the last two years is properties coming on that were needing to be sold, let’s put it that way.

00:25:39:09 – 00:25:56:21
Alekhya
Or say that really, like if they had a choice to hold on, I think they were they were trying to hold on unless they hit, the pricing they were looking for. So what I’m hearing from the brokers is that they’re expecting the deal flow to pick up over the next 3 to 6 months as kind of this rate cycle.

00:25:56:21 – 00:26:24:14
Alekhya
And the expectation is this is one of a few to follow, right? So I think that’s the kind of the the long term view. And so I think what will help us is both from a financing as well as cap rate expectation standpoint, I think we’ll see some movement there. But on the flip side, which is why I think we were particularly active now when there were less other groups looking at properties, is you’re expecting others to come in the market as well.

00:26:24:14 – 00:26:31:13
Alekhya
So we’re expecting probably more competition as we’re looking at similar properties with more buyers in the market.

00:26:31:15 – 00:26:55:18
Charles
Like higher level. I think for us, with interest rates dropping, I think some of the investment dollar will shifted to back to real estate and then commercial, especially because, if you look at CD rates or if you look at that for any other fixed income investment, the return has been pretty good in last to 24 month, but now very clearly the cycle changed.

00:26:55:24 – 00:27:02:19
Charles
So I very much expect more money flowing to real estate. And the commercial rates especially.

00:27:02:21 – 00:27:04:02
Rod
That’s actually a nice nice.

00:27:04:04 – 00:27:09:03
Mark
Right, that people are forgetting about as the fed funds rate comes down. That means the savings accounts are also.

00:27:09:05 – 00:27:20:14
Rod
Oh yeah. Oh yeah. Oh yeah. Oh yeah for sure. Already seen it. So, are you guys okay with listeners reaching out to you? And if so, you know, how and where can they do that?

00:27:20:16 – 00:27:42:00
Charles
Yeah, they can always go to our website, which is, invest in Cap Dotcom, which stands for evergreen. That’s our company’s name. We have some e-book there just to, you know, introduce ourself. And also as a, as someone who works for a high tech company, you know, how do we think about investing in this domain as a, as a syndication and a commercial real estate?

00:27:42:00 – 00:27:58:18
Charles
We have some free resources for folks. And then if people are in, we chat, which is one of the, platform in Asia, they can also find me there. My name is Charles Dash. Us invest there. And I think you can chime me otherwise as well.

00:27:58:20 – 00:28:00:14
Alekhya
Yeah, I think you hit it. Do there.

00:28:00:15 – 00:28:21:11
Rod
Okay, fantastic. Fantastic. Well, I appreciate that, guys. You guys coming on today and adding some value and sharing your deal, and, you know, I’m I’m excited to get you back on in a year. And. Yeah, I’m certain that number will probably be next, but, thank you for coming on. And thank you. You know, absolutely great job.

00:28:21:13 – 00:28:21:19
Alekhya
Yeah.

00:28:21:19 – 00:28:22:11
Charles
Thank you so much.

00:28:22:11 – 00:28:24:00
Mark
Yeah. Hope to see you guys.

00:28:24:02 – 00:28:24:20
Charles
Yeah. All right.

00:28:24:22 – 00:28:44:16
Rod
So one other quick thing. We encounter so many people that are frankly frustrated. You know, they’re looking in the mirror and they’re frustrated that they haven’t been able to escape the rat race. They haven’t been able to build cash flow to the point where they’re able to have financial and time freedom with their families, you know, and maybe they see other people buying real estate and creating, you know, incredible cash flow.

00:28:44:16 – 00:29:13:15
Rod
And they think, well, it’s just scary. You know, buying apartments is intimidating. And I get it. See, that’s why we created our warrior mentorship program. There are coaching students and they’ve had extraordinary results. My students I’ve been teaching about five years and upwards of 140,000 units. Now that we know of. Right. And we feel like it’s just getting going now, we’re looking to grow this group and really take it to the next level and honestly believe that the greatest transfer of wealth could be upon us right now with this current economic environment.

00:29:13:17 – 00:29:45:08
Rod
Everything’s going on sale. So we’re looking for people who want to follow a proven framework, really like a blueprint or a map, literally step by step. And then they’re able to leverage our systems and our incredible network to raise money in equity, to find deals and close those deals and build partnerships really nationwide. So if you’re interested in finding out more about how you can become more in our incredible network and take advantage of the unbelievable opportunities that are upon us, you can apply to my Warrior Mentorship program by texting the word crush to 72345.

00:29:45:11 – 00:30:00:04
Rod
Or you can go to mentor with rod.com. And what we’ll do is we’ll set up a call so you can check us out, and we can check you out and see if it’s a fit. Now again you can go to mentor with rod.com or text the word crush to 72345 to apply and we will speak.