Finances are the back bone of any deal, and they can make or break your deal. So it’s important you have your finances structured properly.
And we say finances, we’re talking about both sides, both debt and equity. Your mortgage from the bank, and any equity that you need to raise.
So, how can finances kill your deal?
Dan and Anthony breakdown the 3 main causes for deals falling through due to poor financing. From unforeseen loan qualifications to a lacking network, it can be very difficult for new investors to properly structure the financing of their deals.
Tweetable Quotes:
“You might know of all these big rockstar investors and other operators in the in the field, but if they don’t know you and your track record, and like they understand what you’re bringing to the table… they’re not gonna bring you money.”– Anthony Vicino
“So much of the commercial lending space is not black and white, there is no consistent rule of thumb for what your net worth need to be. It changes from lender to lender.” – Dan Krueger
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*Transcripts*
3 Ways Where The Finances Kill Deals
[00:00:00] Anthony: kind of, but real estate’s so slow. This doesn’t really apply. There’s plenty of days when you
[00:00:06] Dan: could be following your plan perfectly, doing everything right,
[00:00:09] Anthony: but there’s some sort of external thing going on in your life, a fight with
[00:00:13] Dan: somebody.
[00:00:14] Anthony: Um, you’re depressed, you’re angry, you’re just having an off day or you just stand up really late, drinking heavily, uh, whatever it is.
What are you guys doing with your lives? Those are, it’s. So then I got one. So now we have matching Jedi robes, and every morning we go down to the lobby to get coffee in our building. And the, the security guard, his name’s will he, Harry, Harry Potter. He looks at me and he goes, I like a Harry Potter robe.
Like, I’ll take it .
[00:00:41] Dan: He tells his friends about you. He does , definitely. There’s these people that just moved in. , they, because you’re robes just for listeners. I, I wasn’t when he said, uh, uh, ninja robes or samurai robes or whatever you said, like, I got a different image in my head than when you showed ’em to me.
Oh, yeah. Yeah. They, I mean, they look like some, like Darth [00:01:00] Mall. Yeah. Like robes. Like that’s, this is like straight outta star, uh, um. Star Wars. Star Wars, yeah. . I was almost gonna say Star Trek. Anyways,
[00:01:09] Anthony: yeah, I love it though. It’s super comfortable. It’s cool. It’s uh, they’re made by this guy out of la, um, called One Golden Thread Thread.
It does look very la totally. I’m actually wearing this shirt I’m wearing is from him too, so it’s like I could tell it’s my, you got the whole thing. I’m, this is, uh, for people that are watching on YouTube. You can go to Multi-Family Investing Made Simple and, and check us out in 4k. This is what I call my LA Starving Artist.
[00:01:34] Dan: You need a little more scruff. A little bit more scruff. Yeah. And then, uh, some sun.
[00:01:40] Anthony: Ooh. I don’t own any good sunglasses, to be honest. LA is sunny. So yeah, there’s not much sun up here, except for when it’s sunny today,
[00:01:46] Dan: actually. Yeah, that’s a good point. Okay,
[00:01:49] Anthony: so, um, banter done Enough banter. Yeah. Yeah,
[00:01:52] Dan: I think we hit our quota.
[00:01:53] Anthony: Sweet. So, alright, let’s get to the, let’s get to the topic of hand here actually. Um, what are we talking about here? Oh, we’re [00:02:00] gonna talk about three ways that deals fall apart due to financ. and I think that this is actually gonna be a really interesting episode because we’re brainstorming it before we just pick a number.
We’re like three and we’re like, okay, let’s get to three. And I actually, you like set the bar
[00:02:15] Dan: low. Yeah. ,
[00:02:17] Anthony: I think we actually came up with three good ones where we have seen personally either our own deals or other people’s deals fall apart because of these things. So listen to this episode all the way through.
You’re gonna learn some things that are hopefully gonna save you a lot of pain when you go to finance your deal and get it. Get it. . So, but before we do that, you know what we need to do is make room, have a snack. Yep. Make room in our meal for some bad investing advice.
[00:02:47] Dan: Mm-hmm. . Okay. Which, yeah, shove those potatoes aside.
[00:02:49] Anthony: You don’t want the potatoes. I got some bad here. Has some cheese curds.
[00:02:53] Dan: That sounds better. Anyways, um, bad investing tip of the week. Uh, you need to be constantly engaging in [00:03:00] the market. Whatever market you’re in, stocks, real estate, whatever. You gotta be constantly engaging if you’re new, uh, to get, uh, to get good and succeed as quickly as possible.
Right? Hear it all the time. You gotta get your reps in. You gotta be doing all this stuff every day, engaging. But, uh, and this is really specifically more for, um, you know, public markets, not necessarily real estate. kind of, but real estate’s so slow. This doesn’t really apply. There’s plenty of days when you could be following your plan perfectly, doing everything right, but there’s some sort of external thing going on in your life, a fight with somebody.
Um, you’re depressed, you’re angry, you’re just having an off day or you just stand up really late, drinking heavily, uh, whatever it is. What are you guys doing with your
[00:03:44] Anthony: lives? Those are, it’s. Days happen. I get
[00:03:48] Dan: it. I can’t talk about it. Okay. Okay. But yeah, I mean, if you’re just not off your game, like some days, even if everything, uh, you’ve got your system, all these other things, all these parameters for what you’re looking for to invest in.
Some days you’re just not gonna [00:04:00] make your best financial decisions. Mm-hmm. , right? That stuff creeps in. Uh, if you’re coming in angry, um, you’re not gonna be making good astute decisions. So some days the best thing you’ve gotta do is just not engage. Now, if this is stocks crypto, maybe it means you don’t respond to that, uh, negotiation that you’re involved in with a seller because you’re emotionally charged from something else.
Some days the best thing to do is nothing, so don’t feel the need to always engage with the market. Take some time off.
[00:04:27] Anthony: I like this one. It reminds me something that’s completely unrelated, but when, when I first started write writing fiction, I had set the goal like, I’m gonna write every single day, 3000 words, and there’s gonna be all these days along the way that you just don’t wanna do it.
Like you feel terrible, you’re tired, maybe hungover, or maybe like everything is, you really don’t have a reason to point to. You’re just not in a groove. And in the beginning I think you, you kind of need to force yourself to sit down and continue to do it because, Your, your body is just always going to want to default to not do the hard [00:05:00] thing.
Mm-hmm. . And so you’re almost like building the, the, the discipline in the beginning to sit down and do the work regardless of how you feel. But then there comes a point when you start to realize, okay, it’s not just about like forcing my ass into the chair to, to pump out words if, if the spirit really is not.
Then I’d be better off just going and resting and recovering. Yeah. Getting rejuvenated and then come back when reset. When I am like fully present. And I think it’s the same with with investing, right? Like yeah, maybe in the beginning. You gotta force yourself through to prove that you can develop the discipline, the muscle to stay active and present.
but then at a certain point you have to realize like rest might be the right move. Yeah. Yeah.
[00:05:36] Dan: Especially if you’re putting money at risk. I mean, you are gonna have to get a lot of experience with whatever thing it is that you’re investing in, but that doesn’t mean that on a day where you are not in the right head space, you need to actually be putting capital at risk.
Yeah, right. You could do a lot of other things that don’t involve taking on risk that still get your reps in or, you know, get you up to speed. But, uh, yeah, you don’t always need to be. Take
[00:05:59] Anthony: it on risk. [00:06:00] Yeah, that’s a good, that’s a good one, which is maybe don’t deploy capital on days when you’re not in the, in the zone
Yeah. And don’t do the other work.
[00:06:08] Dan: Do the other work. Having a, a bad day sometimes. Just, and, I mean, there’s a lot of negotiating. I feel like this is where this would apply to real estate. It’s not like a, a stock thing where you can just, you know, have a emotional feeling, click a button, you’re out. Real estate transactions are slow.
But, um, you could have a very. unproductive conversation with somebody that blows up a deal entirely. And,
[00:06:29] Anthony: and don’t underestimate that one because that happens real quickly in the blink of an eye. And you go, what have I just done? Yeah, if you wanna
[00:06:37] Dan: hear about that. Check out the, uh, what was it called?
Getting punched in the face by a seller or something. It was like we
[00:06:42] Anthony: got, got into a verbal fist fight with, uh, with a seller that, I don’t know when that was. That must have been like in the two hundreds. That’s, I think he’s always like that though. That’s a really fun episode. So that’s what happens when you respond emotionally, , and, uh, maybe
[00:06:55] Dan: you need to nap.
Oh man. I wish we could have recorded that. Take naps, . [00:07:00] All right, let’s get to it. Okay.
[00:07:01] Anthony: So three ways that a deal will fall apart on account of financing. Now, when we say financing, we’re talking. both sides of the equation. Both debt and equity. Yeah. So both. Hey, we’re going to the bank to get the mortgage and or, Hey, I, I need to raise a hundred thousand dollars to get this deal closed.
I have 50. I was gonna get my buddy to bring another 50, or I’m gonna raise a million. I’m gonna, you know, bring in some LPs. These are the, these are the three ways that I, that we see deals fall apart. What’s number one,
[00:07:32] Dan: first one written down in no particular order. Just the order that came out of our reins is, uh, not qualify.
to actually take on the debt from the bank. Something you’re gonna hear us say, uh, along with a lot of other people in the industry is, Hey, multi-family stuff above five units and commercial is great, uh, because you don’t have to bend over backwards to prove your income and all this stuff like you would with the traditional mortgage for like your primary residence, right?
Uh, because the [00:08:00] property is, uh, gonna be produc. Cash flow sufficient to pay the debt. So the bank just looks at, you know, can this asset pay for the debt? They don’t care about your income, right? It’s true. But, um, banks do have some qualifications, uh, to who they lend to. Even though they’re lending based on the income of the property, they do care about.
a couple things. Mm-hmm. , well, two specifically. Yeah,
[00:08:23] Anthony: specifically your, your net worth, your balance sheet, and then your post closed liquidity, like how much money do you actually have access to. So, and this is liquid, like this is the thing that I think can trip people up and on bigger deals, you’re probably, maybe don’t have enough liquidity or net worth strength to justify the acquisition on yourself.
So probably neither. Yeah. So maybe the GP teamed collectively, or you need to bring in a kp a key principle. Somebody who has a strong balance. . But, um, I hear this one all the time, and we say it too because it is a lot easier to qualify for a big multi-family loan than a single family. Like for us, [00:09:00] man, like getting a single family loan is, is, is like, uh, one of the hardest things in the world suck.
[00:09:05] Dan: Um, but yeah, if we need, I mean, once that relationship’s developed at the bank, they already know you checked those boxes. It’s an email. It’s
[00:09:11] Anthony: super easy. It’s, yep, pretty easy. But now, now you do need to be careful here because like we talked about in that, um, the bank fraud episode with Matt Ari. What you do not do is you do not pad your, your numbers.
Yeah. Don’t commit fraud. Do not commit bank fraud by, by lying on the sheet or doing what they did, which allegedly was. Um, somebody would send somebody else a million dollars, let it sit in the bank account when the bank looked so that it looked like you had money and then they’d send it back afterwards.
Yeah. Don’t do that. . Yeah. That’s
[00:09:44] Dan: basically just faking the post closed that, uh, post co post closed liquidity. Yeah. Uh, that Anthony was just talking about, which, uh, I mean, it’s one of those things where it’s like so much the commercial lending space is not like black and white. , [00:10:00] um, there is no consistent rule of thumb for like, what does your net worth need to be?
Um, how’s it calculated even? Yeah, like, there’s like all these kind of like variables where you’re never gonna get like a really clear answer of like, will I qualify or not? Um, but I will say that this is not consistent either. It’s totally, it’s, it’s such a relationship driven business because when I got my first six unit, Um, I bought it for, uh, 4 75.
I took out a, a 75%, uh, loan on it. Uh, but my net worth was like negative. Like I did not have net worth if you do a per um, um, personal financial statement, like my net worth was, was negative and, uh, I had zero experience, but, Good, uh, referral with the lender from somebody who we both, both knew. And so we got that deal done and then kind of eased into it.
So there’s ways around it, relationships you can, um, you know, make it so that those things matter. Less to the banks. Yeah. So, and how will we know ’em? . So
[00:10:59] Anthony: just make [00:11:00] sure that if you’re new or you’re going into a deal that you’ve had this conversation with the lender beforehand. Yeah. To get very clear like, Hey, here’s my, here’s my financial situation.
Do I need a kp? Like, it’s better to figure that out well beforehand than after. Cuz if they find that out afterwards, like the deal falls apart. There might not be time to, to fix it. And I, I realize we keep saying the word post-close liquidity and we should make, it’s just liquidity. We should, we should, we should specify exactly what that is, is.
if you know you’re buying this building and maybe you have a million dollars sitting in the bank, but your plan is to put 800,000 of that into the building, right? Like that’s your down payment. The bank’s not gonna count that they’re, they want to know how much is gonna be left in your account after the deal is closed.
Yeah. So they’re looking at it and they’re like, well, actually you’re only gonna have 200,000. Right? So that’s why we’re saying post close. But really it’s liquidity at. .
[00:11:49] Dan: Yeah. And I should note it. I, I know I’ve said this on a few episodes as well, and to a ton of people in person. Uh, whenever I’m talking to people who are just getting started in this business and they haven’t done their first deal, [00:12:00] I always tell them my first call was to the bank, right?
Because I knew that, uh, I needed them to get a deal done. So before I went to, um, agents, started looking at physical properties. Before I sent Lois, before I did anything, I called the bank. Went out to lunch and I showed him a couple underwriting samples of some stuff. I pulled off a LoopNet and I’m like, here’s the type of stuff I’m gonna be out there looking for.
Um, is this what you guys want to do right? Uh, told ’em about me, my personal financial statement gave ’em all the info and, and I was like, yep, can we do this or no? Because if we’re not, I gotta go shop for another bank. Mm-hmm. . So that was my first call. I think everybody needs to start there if they’re brand new.
So
[00:12:41] Anthony: that’s, that’s probably the first thing. Uh, not the most important, but you know, number one on the list of reasons why deals fall apart on a part on, uh, account of financing. I think the second one, this is the one that I. trip up people the most. This is the reason I see most deals fall through, which is they, they fall prey to.[00:13:00]
that saying, if you have a deal, the money will follow. Mm-hmm. . And so you go into the deal and you’re like, oh, I need to raise half a million, but this is a banger deal, so I know my investors are gonna come through, or my buddy over here, he’s gonna bring like half of it, I’m gonna bring half. And then you get into it and for whatever reason, your buddy backs out, or your investors don’t come through how you thought they would, and you get to the closing and you’re like, I don’t have the equity I thought I would have and I cannot close.
Yeah.
[00:13:30] Dan: It’s unfortunate because I hear so many people saying some variation of get the deal, the money’s always gonna follow, um, like at a certain point. Yeah. Maybe, you know, when you’re like maybe when you’re like a decade in and you got this massive track record and like this big network, like there was probably gonna be a point where that’s pretty much true, but not anytime soon.
And it’s always newbies that people are talking to when they say that. Totally. I’m like, that is not the case for your first deal, your second, or [00:14:00] probably even your third. I mean, for us it took us a, a good handful of deals to really feel like we. We’re actually confident with our ability to, to raise all the money, but the first few at least, are gonna be like every time nerve, nerve wracking.
Yeah. Every
[00:14:13] Anthony: time we least, every time we went to one of those capital raises for like the first four, we were like, We’ve done this before, we think we can do it again. But you know, when you’re new to something, you, you don’t really have the track record yet to prove to yourself that you can do it consistently or the
[00:14:27] Dan: investors, which is why it’s hard, like you’ve never done it before.
It’s a tough sell for the first
[00:14:31] Anthony: couple, it, it reminds me of another phrase you hear people say a lot, which is that it’s not about what you know, it’s who you know. And I, and I fundamentally disagree with that because it does not matter who, who, you know, it matters. Who knows. and in the beginning, like you might know of all these big, big rockstar investors and other operators in the in the field, but if they don’t know you and not just know like your name, but know who you’re, you are your track record and like they understand what you’re bringing to [00:15:00] the table, they’re not gonna bring you money.
So you need to focus on becoming known, incredible so that people want to do deals with
[00:15:07] Dan: you. Yeah. I’m gonna double down on that because I don’t think it’s just them knowing you because there’s a lot of people who’ve got a really great. First tier network, um, maybe they’re coming from like a sales background or it’s just like a, a wealthy network.
Like maybe all these people know you personally. But, um, if you’re like most people and you’re starting to kind of dabble in the real estate thing, but you’re not really. putting it out there. If they know you but they don’t know you’re doing this and then you show up and they find out that, oh, all of a sudden you’re doing this now.
Oh, and you want my money? Like I just found out you do this five minutes ago. Mm-hmm. , um, you know, you wanna make sure that people are aware of what you’re doing for a long time before you go to the mass them for money, cuz they don’t want to know you as a doctor and all of a sudden you’re managing a portfolio of real estate.
Mm-hmm. . . I mean,
[00:15:50] Anthony: and this is a really good point because identity is one of those things that’s really hard to shift right? First. Yeah. You have to shift it in your own mind as you start to make that transition from [00:16:00] being a doctor to now being like, oh, I’m a real estate investor. Maybe you’re still a doctor, but you can’t go into conversations with brokers and lenders and investors saying, I’m a doctor who also invests in real estate.
You have to start to shift your identity and saying, I’m a, I’m a real estate investor, and that’s the first shift that has to happen. Factor on the. Yeah, I’m a doctor on the side, but it’s a good side hustle. That’s the, that’s the first shift that has to happen. Yeah. But the second shift, and this is the one that takes longer because you can work on that shift in isolation on your, on your own for many months and years before you start to identify as an investor.
The second shift is getting everybody else in your life to see you not as the doctor, but as the real estate investor. And that takes time and repetition. Cause you think about, I’d say a year. Yeah. I mean, think about how long you went to doctor school. , right? Like, and so you’ve been training for this for a really long time and people are like, yeah, you’re a doctor.
This is what you do. So like now to get them to think of you as a real estate investor, it’s gonna take a lot of consistent, like repetition, saying I’m a real estate investor. Yeah.
[00:16:56] Dan: I, I’ve, I’ve kind of made that transition, uh, twice [00:17:00] now, and I could tell you I feel like it’s about a year. Mm-hmm. , because I went from, corporate finance, which I mean, no one really cared.
Um, people knew me and, oh, Dan, we cared. Well, I mean, it wasn’t a thing where I was like, reaching out for something. Sure. Like, no, I wasn’t like in sales or anything. You were in your cubicle? Yeah, I was in my cubic, like I didn’t really talk about what, what it was, but I went, I went from that to coach. Okay.
Took a while to be known as, okay. Dan, the, the fitness nutrition guy, like he’s, if you wanna get in shape, like he’s the one you go to, took a, a good year at least of. Pushing, uh, and then going from coach to real estate, probably about another year. Cuz once you spend all that time and effort building up that one image mm-hmm.
It’s like it doesn’t just go away over, it doesn’t go away. probably a good, probably a good year,
[00:17:43] Anthony: I’d say. Yeah, so makes sense. But just think about that now, like if you want to be able to raise capital, bring your investors into a deal, like it’s gonna, you need to start building that now cuz Yeah. I see this being one of the big reasons deals fall through.
I get people reaching out, I’d say once every couple of weeks being [00:18:00] like, Hey, I got this deal. I’m in trouble. We are having struggling to get the deal done. Can you guys raise capital for us? And I’m like, We don’t raise capital for other groups. Sorry, that’s not, that’s not our jam. But, um, I just see this happening so frequently.
Yeah. So don’t be one of those people. Yeah. All right. Third reason, the third reason that deals fall apart. What do you got?
[00:18:20] Dan: Um, so what do we wanna call this one? Because I’ve got another one written down, which maybe we can use as a bonus. I feel like we’re gonna go long, so maybe not. Um, what should we call this one?
Like seller
[00:18:32] Anthony: carry. Yeah, this is again, goes back to your bank relationship and over-leveraging. Yeah, over-leveraging, because, so this one is thinking that you can get seller financing on a deal and maybe even negotiating it and de like your underwriting is dependent on it. And then you go to the bank and realize the bank isn’t down with that.
Yeah.
[00:18:52] Dan: Seller financing sounds so great and we’ve wanted to use it for so long. You’ve tried so many times. Um, but I mean, at the end of the [00:19:00] day, it’s, it’s a lot of leverage, right? Um, depending on how you’re doing it. Like, um, but without getting into the weeds, I think most people, they’re gonna go to a bank, they’re gonna get 70 to 75%, um, of the capital from the bank in the form of a, a senior.
and then you go to the seller and say, Hey, can I get a, a loan for, uh, let’s say you got 75% in front of the bank, maybe you want to get another 10, 15 or even 20% from the seller. Maybe you’re only in it for 5%. Like, I mean, the cash on cash returns theoretically start to look pretty damn juicy there. Um, but there’s a problem with that.
Well,
[00:19:34] Anthony: it’s a lot of debt in the bank. The senior position, they’re, they don’t, they, they’re underwriting this thing, not just based off of their risk profile for the, the debt that they put on it, but the total amount of debt. And they’re like, no, no, we wouldn’t give you 95% ltv. Yeah. Why do you think it would be cool with you putting 95% on elsewhere?
Even if we are in the senior
[00:19:54] Dan: position? Yeah, and there’s something called, you know, the debt seage debt service coverage ratio, which [00:20:00] anybody. Uh, in the industry we’ll know, and for any listeners might know, means that, uh, a property needs to produce a certain amount of money over whatever the debt service is.
Usually it’s 1.2%, or I’m sorry, 120%. So they wanna see about a 20%, uh, cushion there between whatever the, uh, net income is from the property and what you owe the bank. Um, and they’ll factor in a seller carryback and say, dude, no, you’re down to like a 0.4. Mm-hmm. . It. No, like you can’t do this. Um, and there’s times when it works.
I will say, um, you know, look at Bill Ham’s book, creative Cash. We weren’t active during the last period where this was actually a really viable option. Um, but right now, It’s still not saying it. Yeah, it’s tough. I mean, well, unless you wanna do like 50% bank debt and then something with the seller, like I
[00:20:51] Anthony: could see 25.
So this is, this is actually the one time we got close to doing seller carry and finally found a bank that would get on board with it. That’s what they, that’s [00:21:00] what they were gonna do. So they were like, Hey, we will underwrite this up to a 75% loan. We’re happy bringing 50 if you want to get the seller to bring the other 25.
And we’re like, oh, well, That just needlessly complicates the situation. Why? Yeah. For what we were going for.
[00:21:14] Dan: I could see that working if maybe like the seller like really wanted to hold some,
[00:21:18] Anthony: some, or they’re giving you a juicy interest rate. Maybe it’s like 0% or like, yeah,
[00:21:22] Dan: super good. Yeah, I could see it like, but for, for our purposes in that conversation, we’re like, no, we were just trying to lever up more on that deal for whatever
[00:21:29] Anthony: reason.
Well, at that point too, the bank, uh, the, the turn, the interest rates were at like three and a half, right? And the seller was like, well, I can get three and a half. Elsewhere. Yeah. He’s, he wants like 5% and we’re like, well, the bank debt is just so cheap right now. Why? We’ll go take that.
[00:21:46] Dan: It’s, yeah. That’s kind of switching.
So yeah. There might be a, a place where that works. But I will say, you gotta make sure that you start, and I said this before, you gotta start your conversations with your lender. Yeah. And tell ’em like, , this is what I want to do. Are you guys cool? There’s lenders [00:22:00] out there that’ll do it. Totally. It’s not unheard of
[00:22:02] Anthony: just, well, this again, going, I don’t want to keep bringing this episode up, but it like, these things are the reason deals fall apart.
But that episode where we talked about the bank fraud, this is another one of the reasons that this person was, you know, caught, was that he wasn’t disclosing to the bank, that he was putting seller financ. onto these assets. So he was putting more debt onto them without disclosing that to the bank. And that’s bank fraud.
Yeah. I’ll get you in
[00:22:26] Dan: jail because I wanna say he wasn’t actually putting a lien. So typically what you Yeah. Could do if you want to, uh, go around your, uh, your bank’s back like. , what happened in this situation is you find a seller who would do an unsecured
[00:22:39] Anthony: carryback. Right. And in his case, he was the seller.
So Exactly. He, he was
[00:22:43] Dan: cool at doing it. Yeah. I mean, obviously he’s okay with risk because he is doing, committing, allegedly committing fraud. Um, he’s like, what’s a little more risk? ? Any normal, financially reasonable person would say, I would like collateral, I wanna put a lien on the property. And that’s where the bank sees at least once a [00:23:00] year.
Oh. Who’s this other guy who is, who is on the title ?
[00:23:05] Anthony: So that’s a, I would recommend that episode. It’s our, our most downloaded episode. It was very salacious because we’re talking about paying fraud, obviously, but that was back in December. I, I would imagine like episode 3 10, 3 20, somewhere in there. So go listen to that episode and learn a lot about what not to do.
It’s a juicy one. because all this is like, that was all about bank fraud. Yeah. What happens like when you get desperate in these situations because your, your deal’s falling apart. You’ve done the hard part, you found the deal. You, you negotiated it, you got it under contract and now it just seems like a formality to get the debt and to get the f the equity right.
Yeah. It’s not afterthought, but it’s, it’s, it’s not, it’s actually the hard part. Yeah. Like, and I know that sounds crazy cuz it’s been hard to find deals in the last couple years, but Tru. That’s not the hard part. The hard part is what happens after that. And really, really, the, the real true hard part is what even happens after close.
So hopefully this will save you guys a little bit of pain and suffering, having to learn this. Lessons
[00:23:59] Dan: [00:24:00] everybody out of no tend
[00:24:01] Anthony: to do a deal at all. No, no, no. I don’t think this, I don’t think this scared any of our, our, our listeners. Our listeners are a, they’re hardcore, they are a, um, what’s the, the word for, what’s the opposite of like yellow beed, like iron Bei.
[00:24:16] Dan: uh, as far, does it have to relate to a belly or can you just be
[00:24:19] Anthony: brave, courageous, like iron sides? Yeah. We’ll call you guys. So our listeners are a bunch of iron sides. I made it sure it. I just made it up. Ironside, that was, you
[00:24:28] Dan: gotta
[00:24:28] Anthony: define it. No knows what the hell I, okay. So an ironside actually goes back to nautical times when the ships were clad with iron around the side.
That made them more resistant to cannonballs. So being iron sided means, or iron clad means you
[00:24:42] Dan: are resistant. Well, I know what iron clad, uh,
[00:24:44] Anthony: that’s like an Iron Cloud contract. But like our insights , because I thought it was a cool imagery. Like, okay. Yeah. Anyway, well, here we. So guys, uh, your book of the week is a book I’ve been reading recently called Socratic Selling, like How to Sell, how to Ask the Right Questions to get the Sale.
And [00:25:00] I think it’s really good, even if you’re just a real estate investor and you, you don’t sell in the traditional way. Like we’re always selling, we’re always negotiating. , we’re always having conversations with a loved one, with a friend, a partner with, uh, you know, a competitor. And we’re constantly selling our vision for the world.
So if we can do that through the power of questions, and I think this is really good, it, this is a really good skill to be working on right now, because as we move into the AI future, I think a lot of your ability, a lot of queries. Yeah. It’s gonna be a lot of queries. Your ability to, to go far is gonna be dictated on the quality of your questions.
So I would start spending a lot of time reading books on how to ask better questions.
[00:25:38] Dan: So, um, what are the better
[00:25:40] Anthony: questions do you have when you have to read the book? There’s another really good book on questions called the Coaching Habit. It’s six questions in there, um, that will help you become a better coach, a better leader.
But I think just thinking about the process of asking questions, More clear. Um, who, who
[00:25:58] Dan: wrote the Socratic one? Did you say [00:26:00]
[00:26:00] Anthony: the, I can’t even remember. Um, it looks like a really old book. Don’t let that turn you off. It’s really good. . Um, I cannot remember who it was, but it was recommended by Chris Doe of the Future.
Chris Doe, if you’re listening to this, he’s got a big Instagram following big YouTube. It was like 2 million followers, so pretty big. And he recommended it because he does a lot of, um, selling his high service digital marketing, um, products. Uh, so I was like, oh, let’s check this out. But
[00:26:28] Dan: cool. It’s good. I like it.
I like the word Socratic. Socratic got a nice sound to it. Soccer.
[00:26:35] Anthony: No. Sounds less good. No, no. Don’t. Yeah. Doesn’t sound good at all. Okay guys, that’s gonna do it for us. We’ll end it up. We’ll end it there on that weird note. Oh, um, I got a bad taste in my mouth now. Yeah, go, go brush. I gotta go. Oh, last thing.
Um, I went to the dentist this morning and had my teeth cleaned and it was the worst experience in my life. Oh yeah. But you know, Um, just let that be a lesson to everybody to go, go
[00:26:59] Dan: to the dentist, [00:27:00] go, go make an appointment, go to the dentist. I need to make an appointment. I’m way behind. It’s
[00:27:03] Anthony: so hard. I I hadn’t been in over five years.
[00:27:07] Dan: Yeah. It’s so easy not to
[00:27:08] Anthony: the, my, my dental hygienist. It’s not fun at all. She goes, yeah, five years seems to be the running average these days for people. I’m like, cool. I’m average
[00:27:17] Dan: Li Liz was hitting five when we first met and I made her go. Oh, really? Yeah. Cause I was on my game. I’ve always been on my game.
It’s like the last year and. I was always, I was always a once a year guy. Some people go twice. That’s pretty good. I go once a year. That’s good. And my parents were good with Megan a thing, but uh, yeah, like it’s been almost two years now. So. So take
[00:27:35] Anthony: that, take that guys. Uh, go Brush your teeth, make a dentist’s appointment.
We’ll see you in the next episode. Applause.
