Accessing Capital for Real Estate Development

**SPEAKER_1** (0:00)
So, how are you moving into different markets? Like, what are some of the challenges with that? You started where you're from, but now you're going to Texas, and you're going to, you said you're moving to Atlanta and different things like, and then you're doing different product types as well. So, talk about navigating that.

**SPEAKER_2** (0:15)
So, relationships, man, it's everything. I think when I was coming up in Milwaukee, one of the things that I did was just build those relationships. I was networking, I was at every event. You couldn't miss me. Literally, you could not miss me. I was everywhere.
So, I took that same model, but now I'm doing it on a national scale. Everything in DC, real estate based events, I'm there. I'm not there as much now because I've been head down, but I'm in those Atlanta based events. I'm in that Houston based events. I'm in those Birmingham based events. I'm in that. So, I look for the macro economic trends that I like. Population growth, I really like red states and blue cities because it allows for flexibility and getting out tennants that may not pay, right? I'm not saying evict folks. That's not what I'm here for. But at the same time, places like...

**SPEAKER_1** (1:12)
Atlanta.

**SPEAKER_2** (1:14)
Atlanta isn't as bad. Atlanta is DC. Let's use DC for example.

**SPEAKER_1** (1:17)
You said red state and blue city.

**SPEAKER_2** (1:19)
Yes, those are places like Atlanta I like.

**SPEAKER_1** (1:21)
Like Houston, Atlanta.

**SPEAKER_2** (1:22)
Houston.

**SPEAKER_3** (1:23)
Georgia is now. Birmingham.

**SPEAKER_2** (1:25)
All blue states. All blue states, red cities.

**SPEAKER_1** (1:27)
I mean, traditionally, Georgia is not a blue state though.

**SPEAKER_2** (1:30)
No, no, no. I mean blue cities, red states. I may have said it the wrong way.

**SPEAKER_3** (1:33)
Birmingham would be.

**SPEAKER_2** (1:34)
Yeah. Birmingham, Houston, Atlanta.

**SPEAKER_3** (1:36)
Atlanta, Houston. Yeah, for sure.

**SPEAKER_1** (1:38)
New Orleans, stuff like that.

**SPEAKER_2** (1:41)
I really like blue cities, red cities. Sorry, blue cities, red states because the higher level laws allow for more flexibility. Like a place like DC, for example, there were people that literally...
DC, prior to the pandemic, you can go rent an apartment, never pay your rent, and you don't have to get out for at least seven months because that's how long the process takes. Like I know people that lived in a building that I lived in, that literally leased it and didn't pay rent. They just leased it out every summer so they can enjoy the rooftop. And they just burn up different people's things like, okay, your name this year, we all going to live there. Your name this year, we all going to live there.

**SPEAKER_1** (2:18)
Are there any major cities that are run by Republicans? I don't think so. I think most, every major city is run by Democrats. Everybody think about it.

**SPEAKER_2** (2:25)
That's a good question.

**SPEAKER_1** (2:25)
From Chicago, LA, New York, Houston. Miami is a Democrat. The mayor is a Democrat. I don't think there's any major city that's, that's interesting. I just thought about that.
No major city has Republican control.

**SPEAKER_3** (2:40)
Very true. Even if it's in the Republican state.

**SPEAKER_2** (2:42)
LA, yeah.

**SPEAKER_1** (2:44)
San Francisco.

**SPEAKER_2** (2:45)
San Francisco, same.

**SPEAKER_1** (2:47)
Yeah. Yeah.

**SPEAKER_2** (2:50)
And Pennsylvania goes back and forth, but those cities, those states that have those very stringent laws, like at DC, for example, I'm not the most fond of, right? During the pandemic, there were people that literally lived for over a year just because of the system.
And it's like, you're not paying any rent. As a land owner that has thousands of units, I don't want thousands of units in a place that I can't get people exploiting this system out. In Wisconsin, you get somebody 30 days. All right, boom, you go through the process. Atlanta, even quicker than that. And I'm not saying we should exploit it either, but from a business perspective, it doesn't make sense for me to be in a place where X amount of people don't pay rent, especially as I'm rising. Like when I get bigger, of course, maybe I could deal with some of that drop. But right now, I'm focused on cities where it makes sense financially.

**SPEAKER_3** (3:44)
So you move throughout the cities. I know the HUD is involved in the Birmingham situation. There was 370 million allocated for the developments.
Is it a situation where you can now again go back to HUD and do the same type of proposal in a different city?

**SPEAKER_2** (3:59)
Absolutely. So I'm a finalist for three cities right now.

**SPEAKER_1** (4:03)