00;00;00;00 - 00;00;09;06
Unknown
I'm a firm believer that if it's not a win for the whole team, meaning all the metrics, all the goalposts, all the everything point to the ultimate win, then it's not a win at all.
00;00;09;06 - 00;00;13;03
Unknown
and for me that that played into this like to know what a win looks like
00;00;13;03 - 00;00;14;15
Unknown
for me in the field.
00;00;14;15 - 00;00;27;02
Unknown
That same idea we took it from the big picture 30,000ft view, you know. So then now I had to make sure that my renovation directors and my project managers and my crew and my foreman and all my trades knew what a win look like for them.
00;00;27;02 - 00;00;37;11
Unknown
Because I honestly believe if you've got that y right out in front, you know where the goalpost is, then every decision that we can make, whether it's what we're going to spend, how we pull the permit,
00;00;37;11 - 00;00;37;28
Unknown
what we're
00;00;37;28 - 00;00;43;22
Unknown
doing, what we're not doing, how we're addressing everything. Everything is informed by that ultimate wind.
00;00;51;10 - 00;01;12;04
Unknown
For all of you guys on here today. I met Bobby a few months ago. Him and I had lunch and, Bobby is the VP of Offer Pad renovate. So that means for the last, I think he said 14 years. Is that right, Bobby? Well, nine years with offer pad, but 14 years in the space? Yeah. Okay.
00;01;12;04 - 00;01;37;04
Unknown
So for the last nine years, that offer pad, he's been running the renovation arm for, for all, for pad. But here's what's crazy. All for pad is a publicly traded company. You know, they're $1 billion organization. But really, he represents renovation for a lot of the hedge funds, the REIT's. They don't all just have the ability to turn their own properties and, tournament around.
00;01;37;04 - 00;02;07;18
Unknown
Some of them do. Many of them don't. So Bobby's been able to participate in about 40,000 renovations with offer pad, and their volume is like almost uncomprehending all even if you're a mega flipper doing 2 or 300 a year, a thousand a month sounds insane. I think for most people. So, but Bobby's going to come and be with us in person in Clearwater, and he's going to have a follow up to that as well.
00;02;07;18 - 00;02;26;18
Unknown
They'll go deeper on stuff, but I wanted before he came out there and you're like, my mind is blown by all the crazy stuff they do. I wanted you guys to have an understanding of what they do and kind of what their format is, and like why they're even talking to regular investors like us now. So, Bobby, what that said, man, I'll turn it over to you.
00;02;26;21 - 00;02;27;20
Unknown
Awesome, man.
00;02;27;20 - 00;02;47;10
Unknown
Adam. Thank you so much for having me, everybody. It's really good to meet you. I'm excited to get to meet everybody in person here in a month. Month. Right. Six weeks, something like that. Yeah, about a month. Yeah. Well, a little bit about me. So, my name is Bobby Triplett. I'm based here out of Tampa, but I basically live on whatever Delta Sky club I happen to be in.
00;02;47;10 - 00;03;09;18
Unknown
How many times a week is where I. I'm on an airplane. I just got back from Dallas just this afternoon. And I oversee all the renovation operations nationwide for for offer pad a little bit about us. Can I just mind if I share a couple slides? Is that right? Awesome. Let me make sure. Tell me if, everyone can kind of see this.
00;03;09;21 - 00;03;35;08
Unknown
Got me. Yes. All right. We can see, a little bit about us for the for the first six years of offer pad, we bought renovating, sold our homes thousands and thousands and thousands of our own homes. My team was 100% dedicated to all my employees, just to renovating our homes that sometimes we were doing in 2020, though, like the beginning at 22, we're doing 1200 houses a month.
00;03;35;08 - 00;04;09;29
Unknown
We're flipping across the country. It was probably some of the most insane time of my life. And in the last three years, when the rates went up, we kind of changed our acquisition appetite like Adam was even talking about. And we started offering my renovation team as a service. I do a ton of work with, like, Fannie Mae and Freddie Mac, and the whole thing kind of started when our biggest competitor in the space came to us and asked us to re renovate about 3 to 400 houses of theirs, which at first I was like, well, that's a nice little feather in the cap.
00;04;09;29 - 00;04;32;05
Unknown
You know, the thinking, all the enemy, you know what's better? Do this. And then I was like, well, why do I want to do this? Like, is this all right? I don't want to take my secrets. But in reality, like it was one of those opportunities to really kind of partner across the aisle. And we had got a reputation for, what I call a comprehensive renovation, whereas our competitor would do more all a cart hay.
00;04;32;06 - 00;04;47;17
Unknown
This one piece of trim needs to be fixed. It called out on the inspection. So they would just do that piece of trim instead of also painting that trim to match the rest of the trim, you know. So it looked very disjointed, not on purpose. And they had hundreds of homes that had been sitting 120 plus days. No offers.
00;04;47;20 - 00;05;09;13
Unknown
Staff was not moving. You know, obviously time is money, so they're hemorrhaging the risk taking. So we came in and on about 90 days we renovated 3 or 400 of their homes. One of the things I'm most proud of in that partnership is within two weeks of turning in each property, every one of them had an offer on it, and they were also and I was, extremely happy about that.
00;05;09;13 - 00;05;33;29
Unknown
Well, that birthed what we call offer pad Renovate, where we are now leveraging my teams across the country to renovate on behalf of investors, just like you on any given month. Right now, we're swinging hammers for between 4 and 600 houses. That we are still flipping. You know, we probably 100, 150 of our own and 3 to 500 homes for investors just like you that we're renovating and this is I wanted to put my cell up there.
00;05;33;29 - 00;05;51;23
Unknown
This is my email address. And this is my team that helps us renovate. JW Carlson is my my number two. He oversees all my field operations. He's out of the Charlotte office. David Beazer would be your first point of contact on boards. All our clients helps with any of the compliance stuff. He's right here in Tampa as well.
00;05;51;23 - 00;06;17;15
Unknown
And then Shea Neil handles all of our, HOA related stuff, permitting related stuff, invoicing related stuff for any of your homes. And she's at our headquarters there in Phoenix. Last year, in 2024, I renovated 767 homes just for investors like you, these are not offer pad owned. These are, whether they were large REITs, private family shops, single family rentals.
00;06;17;17 - 00;06;39;10
Unknown
Rose, we did this. These were last year stats and those 1767 homes we did in 14.73 days on average. And that service 33 different clients, just like you guys. And for us, I'll give you a little idea of our footprint. We're not everywhere, but we're a lot of places. So, 15 states, 20 plus major metros.
00;06;39;10 - 00;07;07;22
Unknown
And like, in Tampa, where I'm from, we go all the way out, like Holiday Hudson down to Punta Gorda, and then from the Gulf beaches all the way, basically across to the Port Saint Lucie on the other, other side of the coast, and then all the way up. It's, pretty large, you know, that really heavy. And a lot of, like, the big, institutional markets, you know, so Atlanta, Charlotte, Raleigh, all the major Texas ones.
00;07;07;25 - 00;07;36;05
Unknown
And so it's what's great about this is we, we get an opportunity to swing hammers every day all over the country, and I've got two, renovation directors in each one of those markets, as well as, you know, dozens and dozens of project managers. What we what I wanted to share, what Adam asked me to do here is just a little bit of, kind of like the ethos or like, I don't know if it's a secret sauce, but it's one of those, like, it's kind of the mindset that me and my team will take when it's kind of renovating
00;07;36;05 - 00;07;43;09
Unknown
one of the things that I teach my team and I preach all the time, and it might sound super simple, and you probably read it in a million books, and I didn't come up with it myself.
00;07;43;09 - 00;08;05;04
Unknown
Is control what you can control? And you know, it's not in my control. The market interest rate rates are not in my control like appetite of my clients, women, acquisition side mergers and acquisitions of companies that happen all over the place. But what is in my control and what I believe is in your control as well, is the way we respond to this changing environment around us.
00;08;05;04 - 00;08;27;03
Unknown
There's got to be like this theme of ownership, like not having the mentality of what comes, but like, hey, what can I own in this thing that has so many variables? What is the thing that I can control? And at once we understand that it instantly starts making things so much more predictable that it allows us, you know, to systemize and take the guesswork out.
00;08;27;03 - 00;08;44;14
Unknown
And that's what we've done over the last nine years. And I honestly, it's been one of the biggest reasons why we've been successful. And I'm going to give you a couple of those things that we have said, hey, these are things that we are going to control. And I like that you can instantly apply to you whether you're a huge hedge fund or whether you're getting ready to do your first flip.
00;08;44;17 - 00;08;59;22
Unknown
I wanted to give you guys some, some real world insight from from us. And this might be old hat. You might know what it means. You might practice it every day. But, chances are you've made a lot of mistakes. Like I've made a lot of mistakes. And I needed to learn these, too, so I figured I'd share them out with you guys.
00;08;59;24 - 00;09;23;16
Unknown
The first thing, if we're gonna have this control that we can control conversation. I think it starts with two very important questions or understandings. The first one off the bat is understanding what a win looks like. And this is for you first, before it does your team win. How many of you guys have ever been through, like, postmortem conversation or if you know what they are, I mean, you don't have to raise your hand.
00;09;23;16 - 00;09;45;17
Unknown
I'll pretend like you had, the idea of a postmortem is after the deal is done and it's sold. Everyone sits around. What went right, what went wrong? Usually post mortem sounds a lot like death. And it's usually the conversations about what went wrong. Very early on in my career here at Offer Pad, as we were getting the company off the ground, we, I had so much frustration.
00;09;45;17 - 00;10;03;29
Unknown
My team was frustrated. I was pulling my hair out. And what I keep, what I'm learning is and what I learned big time here was a true win has to be congruent through the whole organization. If if it's just a win for acquisition, like they hit whatever metric they're supposed to hit. But now that deal's a bad deal, right?
00;10;03;29 - 00;10;18;29
Unknown
Or now I don't have enough money to renovate it, or I blow the budget. Now we can't hit a comp value, or the RV is blown out of the water because we weren't all congruent. Rowing in the same direction, like the win has to be a win for everybody. If it really is going to be a win, I'll give you guys a story.
00;10;18;29 - 00;10;39;08
Unknown
So, our Dallas market, we had just launched it, hired some new leadership there. Everybody was super excited to impress. You know, one of our leaders had on the acquisition side had said in Dallas, we need it. We need to celebrate. The team who can buy 100 houses a month consistently like this is what we need to do.
00;10;39;15 - 00;10;57;00
Unknown
So that leader heard, I need to buy 100 houses if I want the gold stars, if I wanted the attaboy, if I want the raise, if I want the bonus. Right. I don't know if you guys know this, but anybody given the right amount of money can buy 100 houses a month. Everybody can buy 100 houses a month.
00;10;57;02 - 00;11;16;08
Unknown
Not everybody can buy 100 houses a month that perform. And that was that, like one key phrase that, really got us in a world of hurt. So guess what? He goes out and buys 100 houses, he's getting the attaboy. He's getting that. He's getting celebrated on all the meetings. T shirts are being made for his team. Everybody's feeling like a million bucks.
00;11;16;15 - 00;11;40;12
Unknown
And then those hundred houses come to my department and, like, they are Messi's. Messi's not because it's a bad house or it's needs a haircut message, because the recipe of what we need to do is off. There's not enough money that's there. There's no way we're hitting comp level. The amount of, very extensive renovations to foundations and skeptics and all these things that, like, can't be done within our time allotments that we're given.
00;11;40;17 - 00;12;00;02
Unknown
It was a win for the acquisition guy to get 100, and it was an absolute abject failure for everybody else in the name of those 100 houses that first year we did that. He did it three months in a row, 10%, 10% were winners. And it was one of those one of the biggest holes we had to dig ourselves out of in the state of Texas.
00;12;00;05 - 00;12;17;28
Unknown
And it was all because we didn't truly know what the real win was like. The leader was celebrated for doing what he thought the win was like, and maybe what somebody his boss told him this I just need 100 houses, man. And the implied was 100 houses that form. And that's going to be congruent all the way out.
00;12;17;28 - 00;12;31;24
Unknown
But that's not what we've said. And so I think, honestly, as you, as you're evaluating your business and you're looking at the properties and maybe you guys have acquisition folks, maybe you're doing it yourself, maybe you have disposition folks or your own project manager.
00;12;31;24 - 00;12;41;09
Unknown
I'm a firm believer that if it's not a win for the whole team, meaning all the metrics, all the goalposts, all the everything point to the ultimate win, then it's not a win at all.
00;12;41;12 - 00;13;02;17
Unknown
And and for me that that played into this like to know what a win looks like for me in the field. That same idea we took it from the big picture 30,000ft view, you know. So then now I had to make sure that my renovation directors and my project managers and my crew and my foreman and all my trades knew what a win look like for them.
00;13;02;19 - 00;13;20;27
Unknown
Because I honestly believe if you've got that y right out in front, you know where the goalpost is, then every decision that we can make, whether it's what we're going to spend, how we pull the permit, what we're, what we're doing, what we're not doing, how we're addressing everything. Everything is informed by that ultimate wind.
00;13;20;27 - 00;13;22;12
Unknown
And here's the biggest deal.
00;13;22;15 - 00;13;51;02
Unknown
Like if you as the leader and if me as the leader, if I don't know what that looks like. There's an old saying that if it's a missed in the pulpit, it's a fog in the pews. That means if the preacher doesn't know what he's really talking about, no one else is going to get it either. And so it was a big, hard gut check where I had to look myself in the mirror and like, I have to figure out what my true metrics are for my team that are reproducible, that are easy to understand, and that are congruent with where the rest of this project as and the team as a whole needs to
00;13;51;02 - 00;14;12;15
Unknown
go. It was interesting. Well, I'll tell you another story. You know, one of the first, in the early days of off the Pad, we were buying, somebody had a, I don't know, like a sweet tooth for these 1920s bungalows in Arbor City. And if you've ever been to them, like, they look really cool on TV and they've got that craftsman vibe to them.
00;14;12;15 - 00;14;33;11
Unknown
But in reality, most of them are held together with, termite excrement and the red tape or the caution tape that the city had put around. It was great, for they almost condemned it, but sold it to us. And none of them have that. I've done, and I've done hundreds of them have ever gone on budget, have ever gone according to schedule, even with all the intentions in place.
00;14;33;11 - 00;14;51;14
Unknown
And so early on, you know, there was so much emphasis about be under budget, be under budget, be under budget, be under budget. And I'm going to tell you right now, I wholeheartedly believe with every fiber of my being, that is the worst metric that anyone can do when they're approaching a project, especially with a renovation. Because guess what?
00;14;51;17 - 00;15;09;11
Unknown
You can be under brought under budget and that house is not going to be insurable or it's not going to show. Right, or all of a sudden it's not going to match. You know what you thought it would be? Anybody can be under budget, but you get what you pay for. And I remember like I just thought, because being under budget was what everyone was screaming, that must be our new goalpost.
00;15;09;13 - 00;15;27;27
Unknown
I started finding, like in these 1920s bungalows, we were always over budget. So in my mind, I'm trying to connect the dots that that whole 100 houses thing. All right, let's find a way. All right. I'm obviously two weeks late on this grant. It was like a ten day back up at this time. I'm like, let me let me value engineer this.
00;15;27;29 - 00;15;45;00
Unknown
I can get laminate installed tomorrow basically because I had a custom installer that would do it. He's going to give me a deal. I'm going to save a couple thousand dollars on this house. I'm going to get it done, you know, eight days ahead of schedule and I'm going to come in, be in the hero house, look great, get it done, put it on the market, are listing photos.
00;15;45;00 - 00;16;05;12
Unknown
Come back to our disposition, folks. And I am getting my absolute ass chewed the next morning. And I'm sitting there thinking like I did it. I came under budget. I made it look beautiful. What is the problem? Well, the comp that they had, you know, that they were basing their RV off of what they were trying to do everything to was comps that all of them had granite throughout.
00;16;05;18 - 00;16;25;23
Unknown
All of them had upgraded kitchens, you know, under mount sinks, the whole nine yards. And nobody told me that that was what the comp level was. I just they just kept saying, get under budget, get under budget. And I ended up saving the company $2,000 on the front side, but lost them $12,000 because we couldn't hit the comp levels that we needed to be.
00;16;25;25 - 00;16;45;04
Unknown
And for me, like, I didn't quite know what that win looked like as a whole. Like, I definitely check the box that I thought we needed to hit, and that sounded really good on paper, but ultimately cost us way more money than if I had just been able to ask the right questions or understand this picture back then.
00;16;45;04 - 00;17;04;06
Unknown
I'm sure nobody's ever done that on this call. I'm sure nobody has chased the Almighty under budget God and have, knelt at his altar and felt the pain. But for me, that that's one of the big things that that drives me to make sure, you know, when we're renovating for an off or pad house, I know what that recipe looks like no matter what.
00;17;04;06 - 00;17;26;10
Unknown
From day one, and no two houses are going to be the same. We have we have, conditioned our acquisitions teams and our inspection teams to make sure we've got detailed expectations and comp comp values, pictures so that we way my project manager is not out there in the field completely just swinging in the dark. Same thing is for us when we onboard new clients to renovate for.
00;17;26;10 - 00;17;46;03
Unknown
One of the first things if if I end up getting the, privilege of swinging hammers for you somewhere around the country, the first thing I'm going to ask you is, what's the recipe on this house? Right. What is the win look like? Because the last thing I want to do is over scope it or under scope it, you know, chase the wrong goalpost, and then you're sitting here like, well, that was great, but I it's a loser for me.
00;17;46;10 - 00;18;07;14
Unknown
You know, I, we want to be that kind of partner. And hopefully we take that real estate, knowledge of, from the school of hard knocks and help you not have to learn those lessons yourself. The second thing that I'll say that is, probably the biggest thing, if that you can control, if you know what the win looks like for the whole team and your people in the field know what the when their part of that win looks like.
00;18;07;16 - 00;18;37;07
Unknown
The second part is understanding partnerships. I have an honor and a great stewardship responsibility. If you have a multi-million dollar payroll just for my renovation teams around the country, I came from Invitation Homes. It was a multi, multi, multi-million dollar payroll for everyone who's managing renovations, turns and maintenance. Every single REIT that's out there, the big ones anyway, have dedicated dollars to people understanding this and it's very expensive.
00;18;37;07 - 00;18;53;29
Unknown
And that's because it is very hard to do at scale. It's very hard to do consistently. And that sounds a little bleak, because I don't know if everybody on this call has got access to millions and millions of dollars to hire people all over the country to make sure you're getting what you want. That's a very expensive way of doing it.
00;18;53;29 - 00;19;17;28
Unknown
The, and if that's out of your control, the money and you can't let the project get out of control. I'm a firm believer that this is why partnerships matter more than anything, right? I can't expect everybody on my team to know every single thing, all the expertise, every single time, for every single market. But we hire people strategically to know what those expertise are.
00;19;18;04 - 00;19;39;19
Unknown
And I think one of the biggest goals in this, this partnership mindset is the sharing of knowledge and helping it out. If one of my guys gets to the finish line every single time, but five other of his colleagues can't seem to find their way there, like that's not really a real win. That's not really I don't want I don't want just one rock star and five people that haven't figured it out yet.
00;19;39;21 - 00;20;08;16
Unknown
But in my teams around the country, our goal is like, how do we leave everybody better than we've found them? How do we elevate and raise our game? How do we train? The same thing goes for our clients, too, because expecting one person, whether you're a new investor or a seasoned investor, to to honestly know this very complicated world of renovations and the different municipalities and then try to expand that into a different market, it's like parachuting into the Amazon with nothing but a butter knife to catch your way out.
00;20;08;19 - 00;20;28;25
Unknown
We have a saying on our team. We call it Machete Up. And the idea is, hey, as a leader, it's our job to create paths for our teammates and our clients. Success. Like when we're when we're working with a one of our clients who might be buying section eight voucher based homes and wanting to flip them, we're going to we're going to show them the way that this needs to be done.
00;20;28;25 - 00;20;48;28
Unknown
And so so you're not wasting money or not spending money twice or not under doing it and finding that you can't pass an inspection. Or if one of our clients is a single family rental client, like we're going to show him or her our repair replace guidelines that we have been buying homes like this for all the big REIT's for a decade, and we use the same protocol.
00;20;48;28 - 00;21;13;09
Unknown
We want to share that wisdom, because the last thing I'd want somebody to do is to try to renovate a single family rental house, like you're doing a fix and flip. It's they're close, but they're not. They're not the same. And there's definite ways to save and overspend. And we want to help clear that path, I think, because for me, honestly, guys, leadership is not just about finding my way to the other side.
00;21;13;12 - 00;21;34;25
Unknown
It's about racing back into the jungle machete and and willing to help clear paths for other people to succeed. Like that's an ethos on our team, across the board. And it's not just for the offer pad folks that bleed orange. It's for all of the people that we have. The that stewardship privilege of getting to renovate for. There's a I don't know if you Adam if you're team if you guys are big Simon Sinek people.
00;21;34;25 - 00;21;51;10
Unknown
I'm kind of a little bit obsessed and I make all my people read all of his books and I like to quote him a lot. But there's this one quote I wanted to share with you guys tonight. It says the goal is not simply for you to cross the finish line, it's but to see how many people you can inspire to run with you.
00;21;51;13 - 00;22;15;27
Unknown
Hiring an expert is one thing. You can do that it's expensive. It's not always reproducible. It's not always scalable depending on everybody's budget. But partnership is possible. Always. It's a whole new world all together, and it's a completely different kind of win. Like we have sound that is born when partnerships are real. There's a book that I read last year that I made everybody go through.
00;22;15;27 - 00;22;38;21
Unknown
It's called No One's Coming to Save You. It's, a green braids guide to getting big shit done is what it's called, by Lieutenant Colonel Scott Mann. And he has this, theory that I have taken to heart about sharing your scar stories, making sure that because not everybody wins, not everybody succeeds. Every single one of us have failed.
00;22;38;23 - 00;22;59;02
Unknown
Every single one of us have stubbed or toe. Every single one of us have got, you know, egg on our face like everybody. And I think one of the biggest things in this in a partnership mentality is like, hey, I want to show share my scars stories so that you don't have to make them for yourself. I could save you a lot of heartache, a lot of embarrassment, a lot of money.
00;22;59;05 - 00;23;19;04
Unknown
And and if you are partnering with someone because I know I'm not in everybody's market, but as you're seeking out partners, you know, in this renovation space to help you scale your businesses, like I would challenge to make sure that you're finding somebody that's not just trying to take from you. Yeah, I got a job. Let me see if I can just pad that thing up and milk it for all it's worth.
00;23;19;07 - 00;23;45;28
Unknown
But someone that's really willing to help guide you the machete up and lead you through some of the complicated or some of the confusing or maybe, to you, but might be obvious to them ways so that you can really look at the long game here. I in a world of renovations, especially at scale, if we as leaders commit to the daily like deciding that we are going to control what we can control, I think it has an opportunity to to drastically impact everybody's business.
00;23;46;00 - 00;24;08;01
Unknown
I know it has done massive amounts of good for my team and for our shareholders, and for the clients that we've renovated this year, I think we've almost almost tripled the amount of clients that we've onboarded. As we've been doubling down and really learning about these amazing mastermind networks that I until January, I had no clue existed.
00;24;08;01 - 00;24;32;29
Unknown
Man, I feel like the biggest loser in the room because I'm like, these are absolute like gold of of collaboration and wisdom and knowledge and, I feel like as we have, you know, grown so exponentially. I'm having fun partnering with people just like you guys on this call. I think one last kind of truth for me, that that matters.
00;24;32;29 - 00;24;55;19
Unknown
And when you're looking at what kind of partners that you might be, you know, considering the one core factor about a partner that it has to be non-negotiable to me, is having boots on the ground like W-2, their own employee boots on the ground, because accountability is only a reality in my world if I've got my own boots on the ground.
00;24;55;22 - 00;25;19;02
Unknown
Because how many times have we. Or maybe, maybe not you. This has been me. Hey, it's Friday, 5:00. I've got a cleaner that's supposed to be, you know, showing up and finishing. They said they're running late. They'll send me a picture. I get a random picture of that sent to me. So I call in my my, my photographer supposed to be there Saturday morning, and the house isn't clean, but I'm looking at a picture in my hand of a clean house.
00;25;19;04 - 00;25;32;12
Unknown
But the house isn't clean. Well, they didn't get around to it and they thought they'd just get it to the morning. So they sent me a picture that they had and they thought, you know, because the one person who was out there was just trying to, you know, either get to his his kid's school or maybe get to his cold beer.
00;25;32;12 - 00;25;48;21
Unknown
I don't know what it was, but he was late. And so the picture lied. Maybe his intention was good and he was going to do it early, but he was trying to. Or maybe he was trying to get his crew paid and thought, he'll just come in on Saturday because Bobby's not going to be there today. And I end up like getting one embarrassed too.
00;25;48;22 - 00;26;03;18
Unknown
It's going to cost me money and trip charges is now I have to send people back. And three is a huge opportunity for that relationship to not be existing anymore in my world. Because pictures can lie. I don't have a six pack. Adam has see me. There's no way on God's green earth anyone's going to think I have a six pack.
00;26;03;25 - 00;26;18;25
Unknown
But if I put a filter on it, and if I hold it right, and I make that weird face, you know what I mean? And I that lighting is there. I can maybe make you think I have one. How many times have any of us got pictures from our painters? And it's like, right up against the wall and you're like, oh yeah, paint looks good.
00;26;19;02 - 00;26;44;12
Unknown
And then you get there and there's roller bumps everywhere, all over the ceilings and there's drips everywhere. Well, they didn't put that in the picture. You know they fake that six pack right there. Pictures can lie mainly because the thing is the person taking them, if they don't have your best interests in mind or your partnership in mind or your or, cashing the paycheck that I'm going to give them in mine, they're going to do their best interest.
00;26;44;14 - 00;27;09;11
Unknown
That's not like putting like a cloud over humanity. I'm definitely a glass half full, but I've learned the hard way that their number one priority is usually them, unless I'm paying for them. And so pictures can lie because people, you know, people are people we make mistakes. I as much amazing things as I can do in the renovation space from some, scoping ideas and accountability ideas.
00;27;09;11 - 00;27;30;28
Unknown
I still can't smell it. I, you know, walking a house that has been quality control over pictures, and then you walk that house yourself and you find out, oh, it's not so quality control like there's so much that can get lost and I still can't smell. I mean, that house might smell like I was just in one in, Minnesota a couple weeks ago on pick pictures.
00;27;31;01 - 00;27;46;03
Unknown
Look like a million bucks. Looked like a quick paint and carpet job. When I got there, after spending an hour in this place, like, I could still smell the cat urine and nicotine to this day, if I think about that address hard enough, I mean, it was one of those. We're going to have to rip every subfloor out, soaked all the way through.
00;27;46;07 - 00;28;04;00
Unknown
The trim was like I thought it was just like the natural light that made everything look kind of that yellowish orangish. No, no, no, it was the nicotine stains of like probably 20 years of people smoking in the house that, you know, they tried to paint over it, but it's bleeding through. And I mean, that's not something that the computer is going to find for you.
00;28;04;00 - 00;28;24;27
Unknown
So I found that like having my own boots on the ground or the people that I partner with around the country having their actual W-2 boots on the ground. But that's the way that you can have accountability and ensure it. The problem with it is right hiring your own. Sometimes it's super expensive. The other part is scaling well in order.
00;28;24;27 - 00;28;40;08
Unknown
In my world, for a project manager to be able to pay for himself, he's got to handle 12 to 15 jobs a month. Well, what happens if you only bought two jobs that month? And now you're thinking to yourself, like, am I going to let this guy go? That's somebody's family. Like, that's not a way to really run your business.
00;28;40;08 - 00;29;02;19
Unknown
And so there's a question mark. Sometimes if you can't keep up with volume demands or you're trying to scale into new markets. So that's why I think finding someone you can partner with who's already there, that's why that takes. And it eliminates the pressure of the financial. It eliminates the pressure of the volume capacity. And it eliminates honestly, the big question mark of accountability.
00;29;02;21 - 00;29;23;04
Unknown
So for me, over the last three years, as we've been partnering with investors, just like you, I've been able to help folks in in a couple different ways. The three different ways really. The first one is a pressure relief valve. Say, Adam, you're used to doing ten flips a month in your backyard, but you want to go to 20.
00;29;23;10 - 00;29;40;23
Unknown
Great. You handle first one through ten, I'll handle 11 through 20. I don't need to take things away from your people. Or, you know, you got someone from church that does this, or someone from softball or someone you know that you've known in another in another world is helping you out. Like, I don't need to take that away from them, but I can help you on that pressure relief valve.
00;29;40;25 - 00;30;09;14
Unknown
That way you're not having to worry about trying to hire extra people and ride that volume wave. The second way that we really, honestly been able to help people is on market expansion. One of my favorite stories is we're doing a ton of renovations in Greater Saint Louis area for a company that was, section eight voucher based rentals, where they went and raised a bunch of money on Wall Street to try to institutionalize and put a institutionalized fund, for section eight rentals.
00;30;09;19 - 00;30;36;05
Unknown
They raised that money on the partnership of us that anywhere that we were currently renovating, that's where they would buy. So today I'm renovating for them in Indianapolis and Jacksonville, Florida and Tampa and Houston and Dallas and Ohio and Saint Louis. Just because and they didn't have to go hire a single other employee to do that. It was the same process, the same payment schedule, the same product.
00;30;36;08 - 00;30;53;05
Unknown
The same people. And then because I'm already there, it really allowed them to expand. Maybe you've been thinking about, you know, I really loved it. I come across deals in Minneapolis all the time, but like, I'm afraid to say yes because I don't know anybody there or Las Vegas or or Denver. Well, now you know somebody that's there.
00;30;53;05 - 00;31;17;02
Unknown
And so we're able to open up the possibilities of what that market expansion could be. But honestly, the third way, in the most important way, what we've really able to do as a partner because of what we control is consistency, our product, our pricing and our timelines. All of our prices are pre negotiated already. Like for instance, I'll give you this because I'm from Tampa and I'm here and Adam's here.
00;31;17;04 - 00;31;38;23
Unknown
Like what I charge to paint a house to you. The client is $2.13 a square foot. That's walls trim ceiling, doors, labor material, tax tag, title outfit, everything. So for $2.13, if you had a 2000 square foot house, you. You can instantly multiply and know when you're underwriting the house. No matter what, I'll know what it'll cost me to paint it.
00;31;38;23 - 00;31;59;24
Unknown
If Bobby and his team at offer pad do it. I have my flooring, renegotiate at my roof per square, renegotiate my Hvac, renegotiate, have all of these things so I'm not waiting for bids on them. It's the same price every time. I don't know if you figured this out before, but I definitely learn this the hard way. Like somebody is going to give you a great deal on a paint job to get you hooked in with them.
00;31;59;24 - 00;32;19;17
Unknown
Oh man, I really like Jeff's painting. Right? It gives me a great deal. Well, the next time, man, it didn't feel like a great deal because he, like, had to make up for the great deal that he gave me the first time because he, he underbid and now he's got it over. For us, consistency is key. That price the paint is going to be the same price, no matter if it's a 5000 square foot house or it's a 500 square foot house.
00;32;19;19 - 00;32;46;15
Unknown
That way you can inform your underwrite. The next thing that that consistency for me is timelines. I've got about ten years of data at Offer pad, and my teams have put together nine, nine, nine plus, that for every thousand dollars in approved spend, I've got a day or less to get it done. So once you sign that contract and it's $20,000 job, I've got 20 days or less to get it done and I've nothing if I'm not consistent.
00;32;46;17 - 00;33;06;17
Unknown
Some of my markets, I'm even faster than that. Like the Charlotte in Raleigh, it's probably my fastest markets in the country. There's PMS and senior PMS, and then we got seven years and they've got their stuff so dialed in and their trades dialed in. You're not having to wait for hey, okay, when can you get started? Bobby? As soon as that contracts that sign, we dispatch same day, 24 hours.
00;33;06;17 - 00;33;28;10
Unknown
All have boots on the ground. So you're not like, hey, three weeks later, can you squeeze me in? For us? Time is money. So if you can look at your carrying cost, your whole, your utilities, the risk of a house being on the market vacant, all of the above. And you can reduce some of those question marks by having a consistent product, having consistent pricing and having consistent timelines.
00;33;28;13 - 00;33;48;09
Unknown
I think that allows people to have, at least for the investors. We're working for a confidence to want to grow their business. So for us, that's how we help people. Those are a couple of my little takeaways that might have been, elementary to some of you. But for me, I learned those lessons the hard way about knowing what that win looks like for the whole team.
00;33;48;09 - 00;34;05;21
Unknown
Know what? What my team's part of that win looks like in the field, and then finding the right kind of partners across the country to help you scale, I'd love I I've got tons of other stuff, but I don't want to dominate the whole conversation out of. But that's kind of what I wanted to share tonight. Bobby, I think I think we'll we'll go deep.
00;34;05;21 - 00;34;32;06
Unknown
I mean, we'll go as deep as people want. And, at the Clearwater event. Okay. Yeah. When we're there. But I'm sure people there's just going to be a standard set of questions. I know people will be wondering. And, everybody, you're welcome to just come off mute and ask Bobby a question. But Bobby will talk about the markets here and, and any like, would you ever go out of those markets, would you open new markets, would there be a volume requirement for you to be able to do that?
00;34;32;09 - 00;34;53;14
Unknown
Yeah. So, here's the map again. I if everyone could see that offer pad the mothership, we are not in Minneapolis, but offer pad renovate is in Minneapolis. Two years ago, one of my largest clients, we were, we did about 1800 doors for them. And, just a little over a year. This was back in 23.
00;34;53;14 - 00;35;13;04
Unknown
They were getting it handed to them in Minneapolis. And they we were helping them everywhere else that. Could you please consider coming? We guaranteed you 20 houses a month. Would you consider coming up there? It happened to be one of those markets that we had some great relationships. We were able to make a hire. We were able to get our license up there.
00;35;13;04 - 00;35;41;14
Unknown
And in about 90 days after that, ask, we were able to say, yes, from a pilot standpoint, it's been a year and a half that we've been in Minneapolis and it's been it's super successful. Not only were we renovating for them, but now we were able to do so many other clients now that were there. There are parts in our in my growth cycle, if you will, that, like in Q4, we've got a couple markets that we're considering opening pilots in the beginning of the year.
00;35;41;15 - 00;36;00;03
Unknown
Like we're going to narrow it down because we keep getting asked. The good news is as like, say, let's just pick Tampa because I'm here. Say you have a house that's maybe a little bit outside of the Tampa market that we currently in, like those, if, hey, we got maybe it was Ocala or something like that.
00;36;00;05 - 00;36;15;14
Unknown
Hey, I've got three I could give you right now if you're willing to say yes. Well, those are easier. Yes. Because we would just run it out of our Tampa and just stretch a few extra miles than what we normally would. But if you were to say, hey, I want to go to Pensacola, that would be a much bigger lift.
00;36;15;14 - 00;36;28;21
Unknown
But not necessarily a no, but it would definitely would be a no. Right now. It would take probably 90 days for us to be able to ramp up, to be able to say a good yes, because what I don't want to say is, yeah, man, I can handle that for you. And then we go up there and we just grab the bed.
00;36;28;23 - 00;36;43;27
Unknown
That's not that's not going to be helpful for anybody. But we have expanded for some clients. We are considering a couple other markets here for. We're hopefully going to nail it down here in the next month or two about potentially stretching in 2026.
00;36;44;00 - 00;37;10;01
Unknown
Yeah. We have good we have a good amount of guys and gals and, North Carolina and Virginia right now. Yeah. Well, North Carolina, we own most of that market except for Asheville. So we'll do the triad, Winston-Salem area, Raleigh, Durham, and then the greater Charlotte. We even go down to like Columbia, South Carolina to Poole and, Sean Trans, you can come off mute.
00;37;10;01 - 00;37;31;19
Unknown
Sean. I just actually, Lindsey and I just started a renovation. We just turned off our pat on today and a house we, property we just bought literally signed today. And, their team has already went there today and already scoping us literally same day. That's exciting. In Sean. What you got, brother? Oh, yeah. Thanks. Thanks for taking my question.
00;37;31;21 - 00;37;53;22
Unknown
As far as, like, how do you navigate the whole permitting city approval process? Yeah. So it's different in every market. For instance, like, if you were going to be here and like Clearwater, Dunedin, we're going to pull permits to pull permits. There's no way you're trying, you know, to get around any of that. If you're in Atlanta and Texas, half the time they don't even know how to spell permit.
00;37;53;24 - 00;38;26;25
Unknown
There's there's there's different regulations like the greater Saint Louis metro area. We pull permits on every single thing. No matter what it is, you're going to get red tag. Same thing in Minneapolis. You know, every market is slightly different. Like, for instance, if, if I was in, you know, one of the suburbs of Houston, like Spring or Pearland or Sugarland or something like that, where there's way less regulation, there's not necessarily even a need for permits unless it's like the life, safety and durability things.
00;38;27;02 - 00;38;47;03
Unknown
But it's funny, like in the state of Florida, I'm a licensed general contractor. I can't put up, I can't put a roof on anybody's house. Right. I'm legally not allowed to do that except for my own personal dwelling. So we pull a permit with a roofing contractor in the state of Florida every single time, no matter what. There's no such thing, really, in the state of Texas.
00;38;47;03 - 00;39;08;11
Unknown
As a licensed roofing contractor, anybody can just go put a roof on it. So it's it's different for each market, if that's a way of answering that. And is there like a minute like so like how small of a project is kind of like the bare minimum necessary. Like obviously if someone want to get something painted for 20 $0.13 a square foot, like, but that's it.
00;39;08;11 - 00;39;23;00
Unknown
That's all that was needed. I mean, obviously I imagine you guys had to have a certain threshold to be. Yeah, there's there's certain like we some of our clients, we'll do their turns for them because we're also doing their renovation. And like I said, it's a partnership. Like, hey, I'm say I'm swinging hammers on three houses for you, Sean.
00;39;23;02 - 00;39;41;28
Unknown
And you were also wanting to do, you know, you had a couple turns on some of your rentals you needed, and maybe they're only, like $2,000 rentals turns up as a partner. Hey, man, I'll do this favor for you. You know, we're doing other stuff for you right now. We're not maintenance, so I'm not. I can't just go change your water heater.
00;39;41;29 - 00;40;00;28
Unknown
We don't do anything in an occupied space. Typically, like art, we try to be that 4000 and above. Is where it's really worth our time, if that makes sense. Yeah, sure. And then you're not coming to California anytime soon, are you? We were already in California. We used to have an office in the Inland Empire in in Sacramento.
00;40;00;28 - 00;40;17;17
Unknown
We pulled out at the beginning of 24, unfortunately, that I get asked to go to California all back all the time. And I have some great recommendations and some great contractor that I would be happy. I'll put a QR code at the end. Feel free to shoot me an email and I can connect you with some good people.
00;40;17;19 - 00;40;39;16
Unknown
Appreciate it. Thank you. Yeah. Show them what you got, brother. Hey, what's going on? Bobby, thank you for, for your time tonight. Man, this is pretty insightful. Quick question for you. Are you in the New York area? No, we're not in the northeast, and we're not in the northwest. Talk about, that they're both very difficult places to do this at scale.
00;40;39;18 - 00;40;58;06
Unknown
Unfortunately, we get asked all the time, the most in North, I guess you would say on the East Coast for us is, is that Raleigh area, which is not really north at all? You know, it's still North Carolina. It's for Minneapolis. We're in Minneapolis. That's is north north as we go, but that's the Midwest. So I'm sorry, man.
00;40;58;08 - 00;41;16;13
Unknown
No worries man. And it's not even something you're considering at this point. I'm going to be honest with you. That is not on my radar. New York, Chicago, Miami, those are certain markets that are just not on or on our radar at all, like I don't. You like those markets, Bobby? Like, what's the insight? Yeah, a bad there.
00;41;16;13 - 00;41;38;22
Unknown
So for me, like, it's about scalability. Like I want to be able to hold my teams to the, to the right metrics, and I want to be able to do it at a way that, I don't have as many holding costs I'm not having is me much municipality involvement this the more labor union friendly the market, the more pain in the ass it is to do this at scale and sometimes almost impossible.
00;41;38;24 - 00;42;04;28
Unknown
I have national flooring contracts and I vendors that, you know, national flooring or regional flooring vendors that refuse to go into some of those markets because they're having people show up in rat costumes and picketing their stuff because they're not a union company. It makes it highly difficult. Miami, for those of you who are in Miami and are renovating and if you're in, you know, Miami Dade, Broward, we call it the Miami, HOA mafia.
00;42;05;00 - 00;42;24;07
Unknown
And if you're not approved by an HOA and they're like, they're not going to let you do the work, let alone be able to get, when I used to work for invitation homes, that was a struggle bus for us to be able to keep up with the rest of the country because of HOA regulations on who the renter is, who the contractor is, who's allowed through the gate, the whole nine yards.
00;42;24;07 - 00;42;53;10
Unknown
And it was it really was a speed bump to scalability for us. Miss Jane, hey, it looks like you're in the Nashville area. Yes, ma'am. I'm in East Tennessee, specifically Knoxville. Do you have any plans to expand? Because that's about three hours away. Yeah, not in the immediate, but it's definitely on the radar. Not both Knoxville and Memphis, which are two completely different worlds.
00;42;53;10 - 00;43;18;29
Unknown
We've we get asked all the time. It's definitely on our short list. But not this. It won't be for this year, though. Okay. Thank you. Yes, ma'am. Don. Hey, Bobby. How are you? I'm great. Thank you so much for putting this together. Run back and in and out of the car. But I caught most of it.
00;43;19;01 - 00;43;46;10
Unknown
Do you have any plans to expand into the panhandle of Florida? Specifically in the Pensacola area? We have not. I'll tell you, one of maybe. Adam, this helps answer the question, too. For everybody else, what we have found. So Pensacola is not hasn't been on our radar, honestly at all. Where there is a big institutional presence, we find it is way easier to scale up at high volume.
00;43;46;12 - 00;44;10;22
Unknown
For instance, I went and opened up the Indianapolis market, American homes for and as their progress residentials their first keys there. And my ability to get the trades that are used to doing volume based pricing and having project managers and having employees that understand scale, you know, hey, hey, I need you to be ready to do 40 to 50 flips a month for multiple different people.
00;44;10;24 - 00;44;43;05
Unknown
If and if there's large institutional presence. Those markets are typically ones that we have targeted first. The Panhandles like the Knoxville, they have not. Those have been like tertiary markets for the reefs. And so it's much more difficult to scale up and spin up because you're still dealing with either what I would call like retail pricing contractors, that, you know, there want to charge you 6 or $7 a square foot and they're not necessarily doing it on your schedule.
00;44;43;05 - 00;45;03;02
Unknown
They're doing it on their schedule. Or you'll find somebody that's in the labor union that just will show up when they show up, which just is never going to be good. We had like, Saint Louis for me, is probably my most difficult market that I've ever opened up and kept open up, mainly because there's no large institutional, REIT presence there.
00;45;03;08 - 00;45;28;22
Unknown
And, the, how do I say this nicely? Like the lack of give it shit from anybody that we've done, you know, had to do business with it was crazy. And that was the one big factor that differentiated that market, particularly from a lot of the other ones we opened up, was because nobody was used to this big institutional machine that.
00;45;28;22 - 00;45;48;11
Unknown
So we had to do a lot of educating and then, shaking hands and saying goodbye to so many people in places like that, just because they didn't understand how to do it at scale. Yeah. Does that answer it? Yeah. Yeah, yeah. And that reflects that. Since I'm not here to but, what about what about mobile or so.
00;45;48;14 - 00;46;10;23
Unknown
Yeah, we kind of, flex our. Yeah. We for each other. Correct. We've done a little bit there in in Birmingham. That's a small market for us, but we have our relational reach has not gone down the mobile that's mobile. That's one that we've been considering. But not quite yet out. Well if maybe if you can get some of those people who have your mentality and bring them into the ten scale mobile.
00;46;10;29 - 00;46;26;19
Unknown
Yeah. You can keep their, you know, any of them in Saint Louis also send it my way because I'm there and I still pulling my hair out. So yeah, know Kansas City, but not Saint Louis. Sorry. Thank you so much. You're welcome. A couple more of Vikram. What's you got, brother?
00;46;26;21 - 00;46;49;18
Unknown
So at what point, flex say if I find a house and then I, get back to you, right? That's when you take a door and then. And then fix it and give it to me. Yeah. I'll explain that part real quick if you want. So once you're under contract on a house, or if you already own it, you can, after you've onboarded with us as a customer, which, by the way, doesn't cost you anything.
00;46;49;18 - 00;47;08;08
Unknown
There's no subscription, there's no volume minimums. Whether I do one house a month with you or 100 houses a month with you, like, I'm looking at this from a partnership. And when Adam and I spoke and have lunch, the idea is like, I want this to be a value add for for your community. And so you don't have to feel bad.
00;47;08;08 - 00;47;23;23
Unknown
Well, I'm only going to do one house every other month. Great. I'd love to do that. One house, because you know why? I'm already renovating my own anyway, so once you onboard as a client, we'll give you this at this address right up here. Renovated offer. Pencom. Vikram, you would say, hey, here's one, two, three Main Street in Raleigh.
00;47;23;26 - 00;47;40;03
Unknown
Here's the lock box. And then the very next question, the most important question. It has everything to do what? I spent half of this conversation talking about is like, what is the wind look like on this property? Right? I want to know, is it is it a buy and hold? Is it a fix and flip? Is it a voucher base?
00;47;40;06 - 00;47;55;04
Unknown
Do you want me to just remove the dead body spray for breeze and mow the lawn because you're going to hotel it? You know, I mean, like, I want to know like what the wind looks like. You might say, hey, this is a full cosmetic gut or hey, I just this is a light cosmetic upgrade. But we also know it needs an Hvac.
00;47;55;06 - 00;48;15;13
Unknown
You I need some lines to color in because immediately will dispatched to the project manager in that area, usually 3 to 4 business days. We'll have a detailed scope of work back to you. So no lump sums. You'll never see something that says new kitchen, seven grand. What the heck does that mean, right? New kitchen means something different to every single person on this call.
00;48;15;13 - 00;48;33;08
Unknown
So what we will do is room by room by room line, item by line, item by line, item, unit price. You'll see exactly how much it cost us for linear foot to install the cabinets. You'll see exactly how much it's going to cost us per square foot for the countertops, you'll have the measurements. You'll know exactly what each line item is for two reasons.
00;48;33;08 - 00;48;53;15
Unknown
One is accountability, right? You want to know where your money is going, right? And if we have to make a change before we sign the contract together, like if I said new kitchen seven grand, you're like, well, maybe we'll just keep the existing, you know, cabinets and countertops. And I write you the scope, revised scope. And it came back.
00;48;53;15 - 00;49;18;15
Unknown
New kitchen, six grand. You'd be pretty ticked, as you would have thought it would have been more than that. Right. It should be a lot more than that, by the way. Yeah, but that's how some contractors will. They're trying to pad line items to make up for contingencies. We would rather spend 3 to 4 days doing the detailed measurements, making sure everything is accounted for based on your what your win looks like and based on what our expertise is.
00;49;18;17 - 00;49;33;05
Unknown
And then we'll get that back to you. We'll do a scope review. Vikram, like, was my director in that market. So Josh, who runs the Carolinas for me, would have a call with you and say, okay, Vikram, here's the scope of work. Send it over. Here's a couple options. Hey, I know you said you wanted a new roof.
00;49;33;05 - 00;49;47;05
Unknown
We do not think this needs a new roof. Especially as a fix and flip. Or. Hey, I know you said you want to roll the dice in the water heater. Brother, this thing is shot. Do not you don't waste your time rolling that. We need to replace it. You know it will give you that expertise. And then literally.
00;49;47;05 - 00;50;08;29
Unknown
What is that? Is that before the closing? Because I want to say suppose. See, suppose I, get into a house and I want to see how much is to me. I'm going to, get into, rehabbing me. So see if you're you're under contract. Sorry I misunderstood. Yeah. If you're under contract, we'll get it back to you within the due diligence and so that you can make an informed decision.
00;50;09;03 - 00;50;28;06
Unknown
Okay? Whether it's a go, a no go. That's when I decide based on your estimate. Right? Correct. Yes. And I realize, you know, and I get this is a gamble for me. I realize there's a little bit of cost and doing business. So say we we scope five houses or three houses for you, Vikram. And we didn't get any of them.
00;50;28;06 - 00;50;44;15
Unknown
You decided to walk away? Probably on that fourth house. I'm going to charge you to scope it. You know what I mean? And if and if we get the job, then I'll take that scoping charge away. I'm willing to do one, 1 or 2 to make sure that we're learning each other because I'm trying to do a partnership.
00;50;44;18 - 00;51;04;01
Unknown
I don't have the ability to go walk a house, but you're like, hey, I'm thinking about getting this one down the street. What do you think? I typically won't have the ability to do that. So okay. Yeah, that's to be under contract. Yeah. That answer your question about that process. Yep. Good. Miss. Miss Stephanie. Hey, Bobby. Looks like you are in the Midwest.
00;51;04;01 - 00;51;21;05
Unknown
Just we're just south of you in Evansville, so I won't ask if you're in that market, but I don't think I heard you say anything about follow up. I'm just curious. You know, obviously we're going to the phase right now where, if you were to use you guys get it on the MLS, and then we have a list of things that needed to repair.
00;51;21;07 - 00;51;39;12
Unknown
Do you guys follow up with that or is that something okay, okay. Yeah. We get so, it can work a couple different ways. So we call that vendor in our world or like a vendor inspection. So, say you decided to roll the dice on a couple things, and then your contract negotiation, you know, for seller concessions, you want to do a handful of items, right?
00;51;39;12 - 00;51;59;00
Unknown
You would you would send that back up, over to us, almost like a new a new property, you know. Hey, guys, you just renovated this. I know we didn't do the Hvac and we didn't do the roof, but we really need to do this. So can you get me a price for the Hvac in the roof? We would get that and we'd go if it was something that we did do, like say we installed, a brand new toilet.
00;51;59;02 - 00;52;22;12
Unknown
And for whatever reason, it was something was off and it was running or leaking and you could hear it. And that came on the inspection. We would actually go back out and warranty that toilet, you know, and you make the adjustment that's on that. Now, if you said, hey, we're going to do just a service on the, the Hvac and we, you know, three months later the house is sold or is under contract, what the heck is not working?
00;52;22;19 - 00;52;42;12
Unknown
But we can't warranty just a service. You know what I mean? Right? We could we could absolutely go back out and have our techs go take a look at it. Okay, perfect answer to that question. Are you planning on moving a little south of Indy? And anytime. Yeah, that that's possible. Like, we at one time, we had reached out a little bit into the Fort Wayne area.
00;52;42;12 - 00;52;59;07
Unknown
We had to retract a little bit, depending on volume, if it's, you know, within an hour, hour and a half, you know what I mean? Of Indy. Like, we're open to it. Yeah. Okay. Thank you. Look forward to seeing you in town. I've got capacity in Indy. Just so you know, that's one of the markets. Like, if you gave me 20 houses a day, I would.
00;52;59;09 - 00;53;17;04
Unknown
I've got to do it there. Yeah, absolutely. Okay. Adam, how many more questions you want to do, brother? Maybe, like, maybe we'll just take Alvin's and then we'll close out and Bobby two, can you just touch on, like, the, the how the payments work? Because I think that's a big, big one for people. That's a great.
00;53;17;05 - 00;53;34;03
Unknown
Let me do payments and then I'll do Alvin, and then we'll we'll close it up. So here's how it works. So we're a publicly traded company. We have a risk assessment board that requires most of our new clients to do a 50% deposit, at the time you sign your contract. I don't do any other draws. I won't ask for any.
00;53;34;04 - 00;53;55;08
Unknown
You'll never pay for a single material. All of that is there. I'm not using your deposit to fund and finish. You know, Adam's three jobs that we started two months ago. That deposit is just mainly for, to appease the risk assessment. Then we'll send you a final invoice after the QC walk is completed. And we just expect payment within 30 days of final invoice.
00;53;55;10 - 00;54;11;26
Unknown
Once you have had a handful of these projects have come through and your payments of all come in on time, there is a $1 threshold, assigned to your company after week, because when we onboard you as a client, we're going to do a little bit of investigation to about you, like, hey, do you have a track record of paying your bills?
00;54;11;26 - 00;54;33;02
Unknown
Like, hey, are there any, you know, leans against you that we need to know about this? That's what we do. Some of our clients, when we do that assessment, they they have a score that that that team evaluates. And we don't have to do deposits or, hey, we need to do five deposits. And then after the fifth deposit, we fully fund the whole thing ourselves and just give you one invoice at the end.
00;54;33;04 - 00;54;55;08
Unknown
Most, most I would just say if you're a new investor or I've only been doing it for like a year or so, typically that comes back with a score of hey, there's a deposit and then a final invoice. But that's typically how that works. Does that answer your question? Yeah, that's that's perfect, Bobby. And, I think that's that's good.
00;54;55;08 - 00;55;20;05
Unknown
The Alvin, if you want to just wrap up with this last question, that'd be great. Yeah, yeah. No, that was a good piece of my questions. So I had this second question. I just go with that one. So, I've, I've worked with, five tractors that work with reeds before. And so I want to kind of talk about the bad experiences, and then I want to hear how you guys, you know, mitigate against that.
00;55;20;08 - 00;55;46;01
Unknown
And biggest problem being was with the smaller crews, I kind of was able to dictate the rules like, say, hey, if I if I come to the site and nobody's there, you know, that could be $100 a day. Fine. You know, for leaving the project. Whereas when I, when I work with the bigger companies, they have their own standards and processes and there becomes a lack of accountability that I can't hold their feet to the fire.
00;55;46;03 - 00;56;11;11
Unknown
So I found on those projects, those will go over a long time period. And I know everybody says, oh man, I'm taking longer this money on my pocket to, you know, I want to finish the job as quick as possible. You know, you get a lot of that lip service. But, you know, when you have somebody working that hard at scale, sometimes I feel like, you know, maybe the company overloads those crews, so that the quality drops.
00;56;11;11 - 00;56;33;09
Unknown
So, you know, to kind of summarize my question, like, what levers do you have in place for accountability for the crews? Because you guys are at scale. You want to move fast. You want to efficiently, you want to have good quality, but where the quality drops or you're going over time limit, and we're just I'm just sitting there and I don't have any leverage the pool like I would if I was writing my own contracts.
00;56;33;12 - 00;56;53;05
Unknown
Yeah, that's a great question. And, you know, going back to controlling what you can control, this is what you think this is. I mean, it goes a little bit deeper than this, but, my project manager is a W-2 employee. He gets I leave it. That's exactly what I wanted to do. How do you know that? I tried, I was Jeff, it.
00;56;53;08 - 00;57;15;15
Unknown
They just they, our project manager is is he's a salaried employee or she's a salaried employee, and they get graded, marked and incentivized to be on time. I will I'm never going to incentivize somebody to be on budget because I if I if that's the carrot, they will always be below budget. And the only thing that will suffer will be the project.
00;57;15;18 - 00;57;36;22
Unknown
I promise you everything them. But I incentivize them. They get bonus on a monthly basis, or they get written up by being on time or early. So it behooves them. It's money in their pocket. They're walking your house 2 to 3 times a week. It's what I don't like. And I will say this like you as the owner, like I, I it's your home, it's my liability.
00;57;36;22 - 00;57;54;12
Unknown
It's my insurance. Right. So I'd like you to say, hey, you see the project managers? Jess. Hey, Jess. I'd like to come by, do a progress walk with you on Tuesday. Great. That project manager will figure out a time that works for the both of you. He can be there. He can make sure nobody's doing something that's going to put you in harm's way.
00;57;54;15 - 00;58;16;15
Unknown
And then, you know, be able to answer the questions that are when you are there. But for him, if he's going to make his bonus every single month, his projects have to be on time. If his projects aren't on time, he misses out on it's complete bonus. And I pay pretty good bonuses to my team. That's part of their salary structure, and so they are very consistent and hitting them.
00;58;16;18 - 00;58;34;28
Unknown
I could I can just tell you, like I can give you the data and I know we don't trust each other yet, so that doesn't mean anything to you, I promise. I understand that, but, like, that's what we've, How we've made our reputation of that. And quite frankly, if I have a crew that doesn't show up and doesn't sign their contract, you know, within 24 hours of dispatch, I move to the very next group.
00;58;34;28 - 00;59;02;11
Unknown
And I've got people banging down my door looking for work. So that's how we do it. And then the second piece, I guess from a quality standpoint, and again, like material choices, like, if, you know, if, if I'm doing a $700,000 RV live versus a 300,000 versus a rental, I know it's different material grades, like how how they handle what the end quality.
00;59;02;13 - 00;59;17;10
Unknown
Well, the first thing we need to know that that's going to have to be on the front side. You know, when I'm asking for the recipe, what is the win look like for that house? I need to know, hey, we're going high in tier two, 750 a RV. We're not going to. We're going to spec it with our tier two stuff that is there.
00;59;17;12 - 00;59;36;04
Unknown
We are definitely not the custom contractor like you're going to see on HGTV. Hey, let's let's shiplap the heck out of this thing. And I want 43 different colors in the house. We've got a white scheme, a tan scheme, a gray scheme. Our two carpets match, the paints are two LVP match, the paints are two countertops match the different paints our cabinets.
00;59;36;04 - 00;59;59;04
Unknown
But it's our wheelhouse. Is that medium price point or below right. Certain markets and not like Vegas. We do high end luxury stuff there all the time. My renovation director there, Julie, she has been on not only has a design background, a general contracting background, but she's also got an agent background too. So like she knows how to and she's got the crews to be able to do that.
00;59;59;06 - 01;00;14;09
Unknown
I would never tell you. Yes, we could do a high end project in Houston or Saint Louis or Minneapolis. Those crews are not built for that. So we would know that on the front side, because like I said, I want a good partner is going to either give you a good yes or a good no. I don't want to give you a bad yes.
01;00;14;09 - 01;00;31;28
Unknown
And then it ends up hurting the partnership. Right. Thank you. I know let me know on time so I can touch base with you more in chat with us. See, here's my QR code up here. If anybody wants to scan that, we could schedule. We could schedule some time, before November. Or if we, you know, if you've got projects that you you need in the hopper.
01;00;32;00 - 01;00;48;15
Unknown
But I'll be there hanging out with with Adam. Was it everybody? And, you know, I like a good cigar. I like an adult beverage. And I never will be considered skinny. So I also like to eat. So if we want to break some bread or, you know, have a drink and get to know each other with your, your crew, I mean, count me in.
01;00;48;15 - 01;01;09;29
Unknown
I'll be there. Yeah. Awesome. Bobby. Hey, man, really appreciate you coming on late night. You guys don't know this, but Bobby went from, an event in Tampa with me and then flew into, Texas for, like, eight minutes, did a presentation, and then flew back and just got back home. So, it means a lot for you to come out with our community and our people and spend the time with us.
01;01;09;29 - 01;01;19;01
Unknown
And we're excited to have you in Tampa and happy to be here, brother. Happy to be here. It was so great to meet everybody. Looking forward to see you in person. Thanks for having me on my friend.
01;01;19;01 - 01;01;45;21
Unknown
Hey, if you love today's guest, we're doing an event November 5th through eighth in Clearwater Beach, Florida. It's members only. It's very exclusive. No selling. It's just going to be an amazing event for real estate investors. House flippers and entrepreneurs. You can apply to come now. You'll have to pay for your spot, but you could get in the room with some of the best house flippers in the United States.
01;01;45;24 - 01;01;56;17
Unknown
I highly recommend you apply. Click the link below. Apply to come to the event. If we select you, I'll see you in November. November 5th through eight Clearwater Beach, Florida. See you there.
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