Today's webinar with Ken McElroy and Marcin Drozdz: Worth watching when the video gets released. Ken and Marcin shared wisdom that comes from decades of experience in the business. Ken opened by making a point about the banker's REO mindset. - A banker selling REO will not sell to a buyer who can only raise capital. - Why? Because the the last buyer managed to raise capital, and they ended up giving the deal back to the bank (along with a total loss in equity). - Banks will sell to the buyer who can raise capital AND manage the asset. Banks want to know that the buyer's entire team can perform. Banker's question when evaluating a buyer: Can this buyer solve my problem for me? Problem to be solved: - Banks do not want to be in the property management business. - Banks want to get paid interest for lending money. That's it. - REO is a pain in the neck for the bank. So they want to get rid of it, but only if it can be turned into a performing asset. Question in banker's head: Can the buyer turn this troubled asset into a money-maker so the bank can once again get paid? - Buyers who solve this problem can buy assets at BIG discounts. - Both Ken and Marcin have bought discounted assets this way. Marcin shined a light on the ELEPHANT in the ROOM: - If the bank is stuck with a troubled asset, why don't they just hire an in-house prop mgmt team and solve the problem themselves? - Ken's response: I have never met a bank that knows how to manage property. - Banks can read books about property management, but PM is something that you only learn by doing. Just like any other profession. Bonus: Ask Marcin about his experience with inflation when he was six years old. Cool story!

In my market (MF in Arizona) my partners and I are seeing increased deal flow this year. Sellers/brokers are quoting whisper prices at or near the loan amount. The challege: Some of those deals still don't pencil, even at the loan amount, because... - The new operator must enter with a new loan at a higher rate. - Rents are lower, and dropping. We experienced a 30% decrease in rents at once of our AZ assets. We had to match the market in order to keep units occupied. - Some professional property management companies are giving up. When they stop finding new residents, we have no choice but to replace them because we have a fiduciary responsibility to our investors and ourselves. We've changed management at every AZ asset we own at least once, except for the one we bought four months ago. Through it all, my team and I are optimistic. We've been looking forward to this current climate of opportunity since 2022. We are actively walking deals and making offers (two LOIs this week alone, and it's only Tuesday). The future looks bright!

@Bob Richie Plenty of opportunity to do so. Much success to you!

@Brian H Hi Brian, glad to hear from you. Let's trade contact info, and we can setup a time to talk. https://go.roiclear.com/rth-business-card

Solid info. I’ve watched this video several times before, and it took me awhile to really get it. Key points: - Replacing pressure and uncertainty with structure and clarity. - Letting the investor know that it’s okay to say “no” goes a long way toward building the relationship. It is very difficult to learn these lessons during times of easy money. Tough times force us to study the basics. Thanks for sharing this, Marcin.

Lots of competition in the AI space. Check out this chart with recent rankings for Grok, ChatGPT, Gemini, and others.

Kai-Fu Lee, author of "AI Super Powers", is a powerhouse in tech and in business. - Tech: PhD in Computer Science, fmr Apple, Microsoft, and Google. - Biz: Founded Sinovation Ventures, VC firm with $3 billion AUM. And he offers insights from both worlds. "AI Super Powers" is worth reading!