0:00

Capital Razors, I want to give

0:02

you $11 ,000 worth of goodies. I'm

0:04

talking about Capital Raising Closing Scripts,

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the viral capital playbook, over 20

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hours of Capital Raising sessions from

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our previous events like Raise Fast,

0:13

a summit where we showed people how to

0:15

raise $5 million in 30 days. Plus,

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I want to give you access to a

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community of hundreds of Capital Razors who

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are active in our group, helping you out,

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answering your questions. If you want to

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learn more about that, just go to raisingcapital

0:27

.com. It's

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short for Capital Razor's

0:32

Edge. So again, raisingcapital .com

0:34

forward slash CRE and I'll

0:36

see you inside. we

0:39

all know that real estate has created

0:41

more millionaires than pretty much any other business.

0:44

The problem is, it's also created a

0:46

lot of heartaches and bankruptcies. Sure,

0:49

we can get access to a

0:51

ton of real estate education on the

0:53

internet, but that's precisely the problem.

0:55

How can we tell which strategies will

0:57

consistently produce asymmetric returns and which

0:59

should be avoided at all costs? My

1:02

goal is to give real estate

1:04

entrepreneurs, capitalraisers, and investors all of the

1:06

secrets so that we can grow

1:08

our portfolios without dealing with costly

1:11

investment nightmares. And that's

1:13

what this program is all about. I'm Hunter

1:15

Thompson and welcome to the Cash Flow

1:17

Connections Real Estate Podcast. How's

1:21

it going, everyone? Welcome back to the

1:23

show today. We are going to talk

1:25

about how to capture, how to take

1:27

advantage of what I believe to be

1:29

this once in a generation. type of

1:31

opportunity. If you're listening to this right

1:33

now, it means that you're somewhere in a

1:35

massive growth curve of your business. You wouldn't

1:37

be listening to this podcast because of the

1:40

jokes. You wouldn't be listening to this podcast

1:42

because of the random stories I tell. You're

1:44

listening to this podcast because you believe that

1:46

you are at the bottom of a massive

1:48

mountain and at the top of the mountain

1:50

is financial freedom most of the time. Now, some

1:52

of you believe you're at the bottom of

1:54

the mountain, but you're actually about halfway up at

1:56

others. Think you're at the bottom of the

1:58

mountain, but you see the mountain is way less tall than

2:00

it is. And I'm here to tell

2:02

you what you have in front of you

2:04

is a ton of work, but it

2:06

is also potentially way higher than you could

2:08

possibly imagine, meaning way more work, but

2:10

the highs can be way higher. Meaning if

2:13

you're thinking about financial freedom for yourself,

2:15

what are you thinking about for the next

2:17

generation? What are you thinking about for

2:19

the generation after that? And

2:21

one of the reasons you listen to this is

2:23

you want to expand your vision of what you

2:25

think is possible. I'm here to tell you that

2:27

the next level is possible. I'm going to talk

2:29

about tactics and strategy and the opportunity in just

2:31

a second, but let me just tell a quick

2:33

story. A lot of people listen

2:35

to this show view financial freedom as

2:37

being able to pay off all of

2:39

your expenses by your passive income. Number

2:41

one goal was you see what your

2:43

number of dollars of expenses on a

2:46

monthly basis is. See what the amount

2:48

of real estate you'll have to buy

2:50

or how much money you're going to have

2:52

to make to pay off all those expensive through

2:54

real estate. And you start to create

2:56

a battle plan. But

2:58

then I was thinking about

3:00

that, creating that battle plan at

3:02

an event. And a

3:04

guy in the back of the audience said,

3:06

Hey, I want to speak real quick.

3:08

Can I come to the audience and make

3:10

an announcement? And the host of the

3:12

event recognized the person and said, yeah, come

3:14

up here, tell them what you want

3:16

to say. And he got up there and

3:18

said, I just achieved. my number one

3:20

financial goal. And I'm thinking, okay, cool,

3:22

this guy's making $10 ,000 a month

3:25

passively. That's cool. And he goes,

3:27

my number one financial goal was that

3:29

my passive income would be 10

3:31

times my expenses. It's like, is

3:33

that legal? So like

3:36

if his expenses are like 20 grand

3:38

a month, he's making $200 ,000 a month

3:40

passively. So

3:42

that is what's possible. And by the way,

3:44

this guy wasn't 80 years old or something

3:46

like that. Maybe you can make the

3:48

case that his expenses were really low and

3:50

it was $8 ,000 a month or $6 ,000

3:52

a month. Well, still, my

3:54

friend, still, regardless of what it was, real

3:57

estate is not like

3:59

entrepreneurship. There doesn't need to be comps just

4:01

because someone down the street is charging $1

4:03

,600 a month. In the world of entrepreneurship,

4:05

doesn't mean that that's where you're going to

4:07

max out because whatever number you're looking for,

4:09

you can add a comma or a bunch

4:11

of commas and there's still people doing that

4:13

out there as well. timing

4:16

matters. And that's what I want to

4:18

talk to you about today. So how

4:20

do you capture this moment? Let's talk

4:22

about what this moment is. Right now,

4:24

2024, around half a million apartment units

4:26

are going to be delivered this year.

4:29

Half a million. That is a

4:31

very significantly high number. 2025,

4:34

things start to cool down dramatically depending on

4:37

who you listen to, real page, co -star,

4:39

you're going to see a number in

4:41

the 400 ,000s. But here's the act factor. In

4:44

2026, the number

4:46

of new apartment units that

4:48

are planned to be delivered

4:50

in 2026 is around 250 ,000,

4:52

less than half of the

4:54

amount that came online in

4:57

2024. And in order

4:59

to see a number that low, you

5:01

got to look back to 2014 or so,

5:03

meaning that

5:05

there is going to be a

5:07

massive surge in demand for a

5:09

product that is going to be

5:12

supply constrained for the first time

5:14

in about 15 years, something

5:16

close to that, 10 to 15 years. And

5:19

that is what I want you to capture.

5:21

Now, in order to do that, You

5:24

cannot wait until 2026, because two things

5:26

are going to happen in 2026. 2026

5:28

is going to come around. The

5:30

new apartment units is going to drop

5:32

by 50%. Rents are going to start

5:34

increasing. And all of a sudden, the

5:36

play is going to be so easy

5:38

to know, looking at the data, that

5:40

prices are going to be bid up.

5:42

buy people that are already engaged in

5:44

the space that already have contacts that

5:46

have already done deals with lenders that

5:48

have already been underwritten a billion times

5:50

and can rinse and repeat that have

5:52

a high degree of confidence of close

5:54

from sellers because they're already participating in

5:56

the market. So the money

5:58

that you're going to raise in 2026 when it's

6:00

so easy that people don't even want to

6:02

give you credit for it in 10 years.

6:05

The money you'll raise at that

6:07

time it will be as a result of

6:09

the work you put in now. The

6:12

work you put in now, I

6:14

was listening to a short

6:16

reel with Brandon Turner over at

6:18

Bigger Pockets. He has

6:21

raised around $400 million from equity.

6:24

And that is not from

6:26

institutions and family offices, but

6:28

hundreds or thousands of listeners

6:31

of his show. And

6:33

the number one takeaway had from this reel

6:35

was that if you have guidance to

6:37

someone of how to raise money, It is

6:39

that you cannot drink from a well

6:41

you haven't dug yet. And so

6:43

you are now on the clock

6:45

to get this well dug. So

6:48

how would I do this? How would I take advantage of

6:50

this once in a lifetime opportunity? Number

6:52

one, go all in

6:54

on a niche so that you can speak

6:56

to people's souls. A quote I

6:58

had recently that I posted and

7:00

has been shared a bunch is

7:02

that people take action when

7:04

they think something uniquely applies

7:06

to them. So when I go

7:09

to create content, I try to speak

7:11

to my listeners' souls so

7:13

that they feel obligated in

7:15

a lot of ways to take the

7:17

next rational step. Now, I'll

7:20

give you an example of what not to do so you

7:22

can kind of reverse engineer what might be a good

7:24

idea. If I'm

7:26

talking to no

7:28

one, essentially, by saying,

7:30

hey, busy professionals, right,

7:33

it doesn't give me clear understanding of who that

7:35

person is, what their goals are, what their

7:37

pain points are, and how to get them to

7:39

take the next rational step. And

7:42

by the way, no one refers to themself as a

7:44

busy professional. But if I use

7:46

the term, hey, are you

7:48

a burnt out CPA who's sick of

7:50

getting crunched every time it's September

7:52

15th because of tax deadlines? That

7:55

all of a sudden makes me

7:57

think, wow, this person is literally reading

7:59

my mind. So this is why

8:01

I talk about having a niche because Using

8:04

a niche is the only way to get someone

8:06

to think it actually does uniquely apply to

8:08

them like they go oh my gosh this person

8:10

is exactly me just six months ago or

8:12

six years ago. I want you pick

8:14

a next you can actually learn the language you can

8:16

start to dig that well. You can

8:18

start to be in a position to say that

8:20

the money you'll raise in twenty twenty six is

8:22

because the work you did in twenty twenty five

8:24

and the money you raise in twenty twenty four

8:26

is because the work you did in twenty twenty

8:28

three. So. Whatever

8:31

you can do to take massive action to

8:33

pick a niche and go all in and

8:35

start to build out that infrastructure is going

8:37

to work. But keep in mind that this

8:39

opportunity is freaking massive. Another data point that

8:41

I want you to be mindful of and

8:43

why I continue to call this a once

8:46

a generation type of opportunity. The

8:48

distress that's happening right now,

8:50

particularly in commercial real estate, but

8:52

my focus in multifamily as

8:54

many of you likely know, with

8:56

25 % discounts to peak prices.

8:58

That alone is historically significant. Now,

9:01

that doesn't mean that it's a great time

9:03

to buy, but at least it's like a holy

9:05

crap. Historically speaking, anytime there was a 20

9:07

plus percent discount, it was historically a great time

9:09

to buy. There's more to

9:11

it than that. It's not just that prices

9:13

are down. It's why they're down, which

9:15

is almost exclusively tied to interest

9:17

rates rising faster than they've risen

9:20

in 40 years, meaning that

9:22

we don't see massive unemployment. We

9:24

don't see massive shell shock. Sure.

9:26

There is oversupplied markets, but that

9:28

may be responsible for people reducing

9:30

rents or giving a free month

9:32

of rent or something like that.

9:34

That is on the margins. That's

9:36

not creating massive distress across thousands

9:38

of apartments in the United States,

9:40

but interest rates are. And

9:43

so it is almost, not technically because

9:45

it's out into the future, but it's

9:47

almost a fact that the Fed is

9:49

about to start lowering rates. Now,

9:52

is it going to be 25 basis points or

9:54

50 basis points or 100 basis points or

9:56

125? You can look at the futures

9:58

market and see what the market actually thinks. But

10:01

the question I have for you is, if

10:03

the Fed lowers rates, how

10:06

much easier is that going to be for you to do deals? Because

10:09

think about it, it's not just going to make it

10:11

easier for your numbers to pencil. It

10:13

will also make it easier for the seller

10:15

to sell his deal and get into

10:17

a new deal because it's going to make

10:19

his numbers easier to pencil as well.

10:21

If a seller wants 20 million dollars, they

10:23

don't care if interest rates go down

10:25

and now they want to make 21. Obviously,

10:28

it'd be nice if they could, but you get where

10:30

I'm going with that. A lot of people that

10:32

are selling right now are selling because they're deeply distressed.

10:35

So when they say they need 20

10:37

million, it's usually because they need

10:39

20 million to pay off the existing

10:41

loan, my friends. And

10:43

so if interest rates go down, they're like,

10:45

oh my gosh, thank goodness, because

10:47

I'll be able to pay off the existing loan if

10:49

they are in fact distressed, which is who you want

10:51

to be buying from right now. So my

10:54

guidance to you is put in the

10:56

work right now, play the long game,

10:58

and don't settle for this super quick fixes

11:00

that are out there. Like if you're

11:02

just trying to hammer. your existing list. If

11:04

you're trying to hammer the people that

11:06

you've already had invest with you, you know

11:08

deep down that is not a strategy

11:10

that's going to help you get to the

11:13

next level. It may get you

11:15

to the next deal. It may get you

11:17

out of escrow. It may help you not

11:19

lose your earnest money deposit, but

11:21

you've got to take time

11:23

to put in to building

11:25

your capital raising system. I

11:28

just listened to a call with someone

11:30

on our team where someone came in

11:32

That was thinking about getting coaching and

11:35

consulting from us. And they just keep

11:37

hammering this point that they don't want

11:39

to be focused on raising money. They

11:41

just want to do deals. And

11:43

they're like, can you just hire someone to do it? And

11:45

I'm just like, you are

11:48

the number one capital raiser of your

11:50

business and are going to be for

11:52

years. You think you could just come

11:55

in and buy an investor list and

11:57

handle all of that for like $1

11:59

,000 or something like that? Lean

12:01

in, take the time, whether it's three hours a

12:03

day or three hours a week, that will give

12:05

you the most pronounced results in your business, but

12:08

you've got to do it now to capitalize on

12:10

what's going to happen in 2026. I

12:12

hope that helps. All right, so I've

12:14

got some bad news. This episode

12:16

is over, but I'm probably answering questions

12:18

during one of our live Q &As

12:20

in our online classroom for capitalraisers.

12:22

How nice would that be to be

12:24

able to ask me questions directly

12:26

every single week? Also, to supercharge your

12:28

experience in this online classroom, we

12:30

threw in over 20 hours of capital

12:32

raising trainings, including my capital raising

12:34

closing scripts, our investor referral program and

12:36

much, much more. If you want

12:38

access to all this and you want

12:40

to ask me questions directly every single

12:43

week, just go to

12:45

raisingcapital .com forward slash

12:47

CRE to learn more.