WEBVTT 1 00:00:00.120 --> 00:00:04.280 For thirty five years, Cindy Stumpo has been a female homebuilder with a passion 2 00:00:04.280 --> 00:00:07.960 for design, a mastery of detail, and a commitment to her crack. 3 00:00:08.080 --> 00:00:11.519 With daughter Samantha Stumpo by her side, I don't need my whole family on 4 00:00:11.560 --> 00:00:14.240 a date with me. That's a good note. It's goddemn weird. See. 5 00:00:14.240 --> 00:00:18.800 Stumpo Development is the only second generation female construction company in the country. 6 00:00:18.879 --> 00:00:23.519 You're crazy, You're a wacko, You're insane. I mean, it just 7 00:00:23.559 --> 00:00:28.359 doesn't end together. Cindy and Samantha welcome guests to explore the world of construction, 8 00:00:28.679 --> 00:00:32.640 real estate, development, design and more. Unpredictable. Every time I 9 00:00:32.640 --> 00:00:34.920 think I know what you want, you switch it out. But that's what 10 00:00:35.000 --> 00:00:38.880 makes sure houses all your They discuss anything that happens between the roof and the 11 00:00:38.920 --> 00:00:42.719 foundation. Nothing is off limits. You truly do care about everybody. She 12 00:00:42.840 --> 00:00:45.399 can yell and you get screen, but when you get her alone, she's 13 00:00:45.439 --> 00:00:54.479 the best person on the planet. Cindy Stumpo is tough as nails. Yeah, 14 00:00:54.520 --> 00:00:59.320 welcome to Cindy Stumpo Toughest Nails on WBZ. Who's Radio ten thirty and 15 00:00:59.399 --> 00:01:03.840 I'm in do tonight with I'm not introducing another person, go me too, 16 00:01:04.000 --> 00:01:07.640 please? Where with Sean and Tyler? Do they have last names? Do 17 00:01:07.680 --> 00:01:10.959 we know who they are? They like little ghost people? Like what are 18 00:01:11.000 --> 00:01:12.079 they? They're like my besties. I talk to them all the time. 19 00:01:12.200 --> 00:01:15.239 Well, do they have last names? They can introduce themselves. Oh okay, 20 00:01:15.439 --> 00:01:19.599 go ahead. Oh no, I can go with the first name only. 21 00:01:19.640 --> 00:01:22.959 I'm like Seal in the New Generation. But okay, I'm cool. 22 00:01:23.000 --> 00:01:26.359 But no, I'm Tyler Wnder of TV Winder and Winder Capital and developer, 23 00:01:26.519 --> 00:01:30.959 lender and broker here in Boston. So what is this? What is the 24 00:01:30.000 --> 00:01:33.280 developer? Do you? If you don't mind me asking this new generation? 25 00:01:33.319 --> 00:01:38.000 How old you thirty one? Okay? Your baby baby? What does the 26 00:01:38.040 --> 00:01:42.799 developer mean to you? Buy a property, add value to it and sell 27 00:01:42.840 --> 00:01:47.879 it. Wow, things change in my in the generations. That's what developers 28 00:01:47.879 --> 00:01:51.439 to you? Right? So what am I? You're a developer? Mm 29 00:01:51.480 --> 00:01:55.640 hmmm, which means it means you're you're buying land, You're buying property, 30 00:01:55.680 --> 00:02:00.439 You're tearing it down, you're adding the value to it and selling it. 31 00:02:00.760 --> 00:02:04.599 If the numbers work for the rental and that's what your ex is, then 32 00:02:04.599 --> 00:02:07.240 you hold on It's the difference between what you call developer and what we've called 33 00:02:07.240 --> 00:02:12.879 developers is we bought the land, we self perform the buildouts, and we 34 00:02:12.960 --> 00:02:15.599 made a development fee and a construction fee. That's what that was all about, 35 00:02:15.719 --> 00:02:22.240 right now, developers, We were builders, right, but today developers 36 00:02:22.240 --> 00:02:25.280 and money guys most likely. And then they got to hire some schmagigy like 37 00:02:25.360 --> 00:02:29.240 me to come and do all the hot lifting, right most likely. Okay, 38 00:02:29.759 --> 00:02:31.759 and then you're gonna hope this the schmagigy like me doesn't hurt your pockets, 39 00:02:31.840 --> 00:02:35.080 right. I just want to stick with that word McGahee for a while. 40 00:02:35.080 --> 00:02:37.719 That's what it was. If we got a good sch mcgahey and then 41 00:02:37.719 --> 00:02:38.919 hopefully everyone makes a little bit of money at the end of the day, 42 00:02:39.599 --> 00:02:43.000 and then you hope that schmaghy doesn't take you down with them. Yeah, 43 00:02:43.039 --> 00:02:46.360 sure, hope So because as large mcgigi's out there right now, so we'll 44 00:02:46.400 --> 00:02:49.520 just get like a watch list of the do not work with smagige. Yeah, 45 00:02:49.520 --> 00:02:51.960 I think we need a schmaghigi list, okay, and like just get 46 00:02:52.039 --> 00:02:54.039 rid of them. Smart. Do you notice that it's going to be harder 47 00:02:54.039 --> 00:03:00.599 for your generation to find good solid dudes? Out here and women, right, 48 00:03:00.680 --> 00:03:02.439 I haven't worked with women, so thirty six years, I see one 49 00:03:02.479 --> 00:03:07.000 here popping in and popping out here and there. But do you notice that 50 00:03:07.000 --> 00:03:12.599 it's hard to get more better skilled labor guys out here? Then again, 51 00:03:12.639 --> 00:03:14.639 what would you know, because you wouldn't know what it's like to work in 52 00:03:14.639 --> 00:03:15.960 the real world back in the day. One thousand percent. No, And 53 00:03:16.240 --> 00:03:21.039 I and who I learned from when I got into this business are the you 54 00:03:21.080 --> 00:03:24.439 know, developers from the late eighties, early nineties gcs who worked through the 55 00:03:24.479 --> 00:03:29.080 eighties nineties. Well, then that would be me. So I'm learning through 56 00:03:29.400 --> 00:03:31.520 you know, people like yourself, the baby boomers. The baby boomers, 57 00:03:32.639 --> 00:03:35.919 by the way, last year, don't push it. What's that I'm in 58 00:03:35.919 --> 00:03:38.240 the last year? The baby boomers, don't push it. You want to 59 00:03:38.240 --> 00:03:40.159 said it, I'm not allowed to say that. She's turning. Oh shut 60 00:03:40.360 --> 00:03:44.639 o'p already with that number. I swear if I have to age, you 61 00:03:44.639 --> 00:03:47.159 have to age? No, you keep aging. I'm not aging, So 62 00:03:47.360 --> 00:03:51.000 you'll you do have two years in one month. Though you do listen to 63 00:03:51.000 --> 00:03:53.039 the older guys. You have to. I don't listen to your generation. 64 00:03:53.199 --> 00:03:55.159 I didn't go to I didn't go to school with it. It was kind 65 00:03:55.199 --> 00:03:59.039 of self taught and then you know, learned from people who've done it over 66 00:03:59.080 --> 00:04:01.000 the last twenty thirty five forty years. Okay, follow the lade, trust 67 00:04:01.080 --> 00:04:03.960 me, you got all of them. Just don't follow the ego maniac ones. 68 00:04:04.199 --> 00:04:08.479 You know, the ones that have been up and down, like what's 69 00:04:08.520 --> 00:04:13.479 the word yo? Yo's thirty six years c Stumble is still in business. 70 00:04:13.479 --> 00:04:16.680 We've never been another name, we've never gone bankrupt with the same company from 71 00:04:16.759 --> 00:04:19.439 day one, and we've never been sued by an end user of vendor, 72 00:04:19.480 --> 00:04:24.560 a subcontractor. That's what you look for when you're hiring a builder for your 73 00:04:24.560 --> 00:04:28.600 development. Got it beautiful? Seriously, like go through it all? All 74 00:04:28.720 --> 00:04:30.759 right? So but you're still doing hot money lending. So with that being 75 00:04:30.839 --> 00:04:35.360 said, what are you charging right now? And all I know it all 76 00:04:35.439 --> 00:04:39.160 varies. So let's let's play. Let's play a game here right now. 77 00:04:39.199 --> 00:04:41.879 You're and I yeah, all right, I need a fast closing two million. 78 00:04:42.040 --> 00:04:45.240 I only want it in ninety days. Where we going Most likely you're 79 00:04:45.279 --> 00:04:47.720 going to start off at twelve and two when Sean gets around. So dumb 80 00:04:47.759 --> 00:04:51.199 it down so people understand because we're in the business. So a twelve percent 81 00:04:51.279 --> 00:04:56.879 interest rate in two points at closing one point resembles one percent of the total 82 00:04:56.920 --> 00:04:59.920 loan amount. That's pretty much your standard what you'll see. And again when 83 00:05:00.000 --> 00:05:02.000 Shawn's up here talking, he's going to talk a little bit different. The 84 00:05:02.160 --> 00:05:08.319 quicker the clothes, the less track record of of a barrow, where the 85 00:05:08.399 --> 00:05:12.040 less cash a barrower may have, that twelve and two is going to adjust 86 00:05:12.079 --> 00:05:15.680 accordingly. But if we're going to use that twelve percent interest rate two points 87 00:05:15.720 --> 00:05:18.000 as a close, that's going to be your best way to kind of underwrite 88 00:05:18.000 --> 00:05:21.319 a deal of kill hard money. And now the guy needs you to carry 89 00:05:21.360 --> 00:05:26.040 him through construction loan. What's up? Now, let's say, let's change 90 00:05:26.040 --> 00:05:30.399 it up. I'm coming to you for two million, and the two million 91 00:05:30.600 --> 00:05:34.319 is to buy the property. Right, I'll put the twenty percent down finance 92 00:05:34.360 --> 00:05:38.160 a property. The whole thing comes to two million. We're going to just 93 00:05:38.199 --> 00:05:42.560 compare apples taples. What's the indust rate then, Now, knowing you're going 94 00:05:42.600 --> 00:05:45.399 out a year or two years with a guy, if you're in hard money, 95 00:05:45.399 --> 00:05:46.839 you're still going to be looking at the twelve percent and two points. 96 00:05:46.879 --> 00:05:49.600 I mean, if it's a four year progress, So you don't want more 97 00:05:49.639 --> 00:05:54.600 money knowing that you're going to go longer and you're speculating with them. The 98 00:05:54.639 --> 00:05:57.480 only thing that we really will care about at the end of the day is 99 00:05:57.560 --> 00:06:00.759 what is our risk parameter set? At what point are we losing breaking even 100 00:06:00.879 --> 00:06:04.279 or we're crossing over that risk threshold. So if it's a four year project, 101 00:06:04.480 --> 00:06:05.839 we're going to be looking at it. It's like, all right, 102 00:06:05.839 --> 00:06:09.920 here's a four year carry, here's where costs are. We still better be 103 00:06:10.199 --> 00:06:14.519 below that, you know, seventy percent loan to the after repair value. 104 00:06:14.800 --> 00:06:17.600 Basically, you want thirty percent down on your clients. Not necessarily thirty percent 105 00:06:17.680 --> 00:06:20.399 down, but we want to have that thirty percent margin on the back. 106 00:06:20.560 --> 00:06:27.199 What's a downstroke on two million? Downstroke meaning Okay, I'm paying three hundred 107 00:06:27.199 --> 00:06:31.279 thousand for the land and I need a million seven for the construction. I'm 108 00:06:31.279 --> 00:06:34.360 just using numbers like we can just play, so use most like you're going 109 00:06:34.399 --> 00:06:36.639 to say, how about this one better. I'm paying a million for the 110 00:06:36.720 --> 00:06:40.399 land, yeah, and I'm paying a million in construction. What are you 111 00:06:40.439 --> 00:06:43.240 giving me? So right off the bat, if you' putting twenty percent down, 112 00:06:43.279 --> 00:06:46.160 you're going to get an eight hundred thousand dollars acquisition loan, and then 113 00:06:46.160 --> 00:06:49.000 a million dollars is basically going to be sitting on the sideline ready to reimburse 114 00:06:49.040 --> 00:06:55.040 you through constructions. A little funny though, you the banks, you're all 115 00:06:55.040 --> 00:06:58.240 funny. I love that game. You guys put the money out, then 116 00:06:58.240 --> 00:07:00.920 we'll rEFInd you after the job is done. Yeah, that's kind of crazy 117 00:07:01.199 --> 00:07:05.199 because that's what gets guys into trouble because they don't have the money to fund 118 00:07:05.800 --> 00:07:11.120 and put out and then we have to wait for you guys to come out 119 00:07:11.439 --> 00:07:14.079 and mister banker to come out to say, oh, yeah, you did 120 00:07:14.120 --> 00:07:15.560 this, this, this, this, this, So when you're out there 121 00:07:15.560 --> 00:07:19.439 building, I have to have millions, not one hundreds of thousands if I'm 122 00:07:19.439 --> 00:07:23.800 going to take instructional money to carry these guys because they want to get paid 123 00:07:23.839 --> 00:07:28.000 right away, and a lot of like our guys, they come in weekly, 124 00:07:28.720 --> 00:07:30.040 right, so they want to be paid weekly. So we pay the 125 00:07:30.120 --> 00:07:34.040 performance and then you guys step in after work is done. Okay, here's 126 00:07:34.079 --> 00:07:38.480 a check. So when you sit down, do you explain to your clients, 127 00:07:38.480 --> 00:07:42.000 like, you got to have two hundred thousand whatever the bank to start 128 00:07:42.079 --> 00:07:46.800 the process. Do they comprehend that or they just powing had on the site 129 00:07:46.839 --> 00:07:49.199 work, and that's where the numbers get put in there to carry them. 130 00:07:49.920 --> 00:07:54.519 You make it up through draws. So if you don't have as much capital, 131 00:07:54.560 --> 00:07:56.639 I get it all set. You're going to juice up what you're doing 132 00:07:56.680 --> 00:08:01.720 at the beginning of course to approve. You know when you're being juiced up, 133 00:08:03.079 --> 00:08:05.040 Yeah, you know, good sent Yeah, I mean, we're all 134 00:08:05.040 --> 00:08:09.199 a part of the business. We've seen enough loans, we've done enough loans, 135 00:08:09.240 --> 00:08:13.120 we've seen enough projects successful, unsuccessful, struggled. We're going to go 136 00:08:13.160 --> 00:08:16.279 through all of those and we're going to have an idea. So we're going 137 00:08:16.319 --> 00:08:18.240 to see something's thirty percent higher than what it is. We're going to raise 138 00:08:18.279 --> 00:08:20.560 some flags. So here's the crazy part when you really think about it. 139 00:08:22.319 --> 00:08:26.399 They're borrowing construction money from you. They're paying the interest of the construction loan. 140 00:08:26.680 --> 00:08:31.199 Then they're paying interest on interest. Mostly you're going to be looking at 141 00:08:31.240 --> 00:08:33.519 a per draw interest rate. Okay, that doesn't matter. If so, 142 00:08:33.559 --> 00:08:37.840 if it's a million dollars sitting on the sideline, you need one hundred thousand 143 00:08:37.840 --> 00:08:43.200 dollars for process the project, and they brought five hundred thousand. They're paying 144 00:08:43.240 --> 00:08:46.759 the interest back to you with your own money. You know that from construction 145 00:08:46.879 --> 00:08:50.159 on right, So that means they're paying interest on interest, is what I'm 146 00:08:50.200 --> 00:08:52.320 just saying. Like, dude, I ain't paying you interest on interest too, 147 00:08:52.799 --> 00:08:54.759 Like you got to have some cap in my brain, but I'm old 148 00:08:54.799 --> 00:08:58.840 school, Like my brain says I better have this much money back when I 149 00:08:58.879 --> 00:09:03.519 was twenty three, twenty four, twenty five to carry the juice follow me. 150 00:09:03.799 --> 00:09:05.519 I don't want to pay you interest on interest. It just something sounded 151 00:09:05.600 --> 00:09:09.600 so crazy about that. Oh you're getting good, you're coming on the twenty 152 00:09:09.600 --> 00:09:13.080 three second mark. I like that. What's that? A good? It's 153 00:09:13.120 --> 00:09:16.360 all good? All right, So we're gonna all hold that thought. When 154 00:09:16.360 --> 00:09:18.399 we go to break from city stumping. We got say Tapes Nails on WBZ 155 00:09:18.519 --> 00:09:22.840 News Radio ten thirty sponsored by Floor and Decor, National Lumber and Village Bank. 156 00:09:37.799 --> 00:09:41.879 Just written it all and welcome back to WBZ News Radio ten thirty. 157 00:09:43.120 --> 00:09:48.879 Tepes Nails City STUMPO. Okay, Sean, we heard Tyler's opinion. Now 158 00:09:48.919 --> 00:09:54.600 here's here's my question to you. Why is it called the construction little money? 159 00:09:54.799 --> 00:09:56.200 But we don't get the money till after we do construction. Can you 160 00:09:56.200 --> 00:10:00.639 introduce himself? Oh, I'm sorry, can you introduce your stuff? Go 161 00:10:00.639 --> 00:10:03.159 ahead, and let's start. Give you a little bit of background. So 162 00:10:03.960 --> 00:10:07.080 John Kelly Ran, managing partner of ore the Advisors. We're a real estate 163 00:10:07.080 --> 00:10:11.120 private lender in the Boston area. Quick background, So you know we talked 164 00:10:11.120 --> 00:10:16.039 about construction, we talk about builders. Well, I grew up My father 165 00:10:16.120 --> 00:10:20.279 was a carpenter. My mother was a realtor selling foreclosures in Boston. So 166 00:10:20.840 --> 00:10:24.360 you know, I've been on job sites for how a long time? Forty 167 00:10:24.399 --> 00:10:28.960 five? Okay, my shoulder, you have the baby. I've been around. 168 00:10:28.120 --> 00:10:31.799 I've worked with my uncle in construction, so I spent my summers in 169 00:10:31.879 --> 00:10:35.320 DC working with t J. Rand Construction. So I come at the lending 170 00:10:35.399 --> 00:10:41.279 side from a kind of construction builder's first side. And then, you know, 171 00:10:41.399 --> 00:10:43.639 after kind of doing this and growing up in this, I went into 172 00:10:43.639 --> 00:10:46.440 real estate private equity and real estate investment banking, and then came back to 173 00:10:46.480 --> 00:10:50.440 Boston seven years ago to set up our own real estate private lending business to 174 00:10:50.519 --> 00:10:54.639 kind of bring some of this private equity and kind of Wall Street you know, 175 00:10:54.720 --> 00:10:58.320 kind of money and philosophy back to Main Street. So you know, 176 00:10:58.399 --> 00:11:03.600 how we position ourselves in the market dealing with builders is we're a non bank 177 00:11:03.679 --> 00:11:09.720 lender for bankable clients that have projects that just don't fit into the bank box. 178 00:11:09.080 --> 00:11:13.679 And a lot of that has to do with timing. So the clients 179 00:11:13.679 --> 00:11:16.519 that are coming to me are not the clients that are saying, hey, 180 00:11:16.519 --> 00:11:20.399 I have no money and I have no credit. That that's not my client 181 00:11:20.879 --> 00:11:26.360 and they're not clients. So my clients are typically builders that are financiable. 182 00:11:26.720 --> 00:11:30.200 And this is not for every single one, but typically so they're financibal so 183 00:11:30.240 --> 00:11:33.759 they can get bank financing and they choose not to because of either speed. 184 00:11:33.879 --> 00:11:37.720 So you're buying something at auction and you have less than thirty days to close. 185 00:11:37.720 --> 00:11:41.080 Oh yeah, because we mind so much an auction last five six years 186 00:11:41.120 --> 00:11:43.320 here in messages, Yeah, well go ahead. Or you're buying something and 187 00:11:43.360 --> 00:11:48.840 you're a competitive bid process and they're bidding against you, and you know they're 188 00:11:48.879 --> 00:11:50.519 going there and they say, well, I can send it, sell to 189 00:11:50.559 --> 00:11:54.039 city somepo or who's getting bank financing, or I can sell to this builder 190 00:11:54.120 --> 00:12:00.960 or actually check who's going to close in ten days and they're going to have 191 00:12:01.000 --> 00:12:03.080 to come to us in order to be more competitive because the seller is not 192 00:12:03.120 --> 00:12:07.840 going to wait forty five days or ninety days for bank to close, and 193 00:12:07.919 --> 00:12:09.559 so that there end up need to go to somebody for speed, and so 194 00:12:09.600 --> 00:12:13.759 it's a performance product, it's not necessarily a product there. And then where 195 00:12:13.799 --> 00:12:18.039 we are today is just looking at the environments are banks aren't as active as 196 00:12:18.039 --> 00:12:22.600 they used to be, and banks are pulling back, especially on the margins, 197 00:12:22.720 --> 00:12:24.919 on the construction projects and the build projects and not everything. They're not 198 00:12:26.919 --> 00:12:28.840 not on all builders, but not on all builds. Right. They are 199 00:12:28.919 --> 00:12:35.159 still with the sophisticated builders, they're still taking care of one. But the 200 00:12:35.320 --> 00:12:37.559 guys that are not tasting their own blood a little bit, they get nervous 201 00:12:37.559 --> 00:12:41.279 of those guys. And we're not lending to those guys either, right, 202 00:12:41.360 --> 00:12:45.919 So that that's not our market. But we are doing things where we'll close 203 00:12:45.960 --> 00:12:48.799 on an office to REZI conversion. Right. So I'm looking at office buildings 204 00:12:48.840 --> 00:12:54.840 now downtown I'm looking at but not all can be converted, but some can, 205 00:12:54.519 --> 00:12:58.120 and you need to move fast on those that can, be right, 206 00:12:58.200 --> 00:13:01.120 And so we're trying to deal with the clients that need a product for speed, 207 00:13:01.679 --> 00:13:05.279 not because they can't get a bank loan, and sometimes we're there, 208 00:13:05.519 --> 00:13:07.960 we do the fast closing and then we get taken out by a bank loan. 209 00:13:09.200 --> 00:13:13.200 That's for that and a matter of how much time it can be anywhere 210 00:13:13.320 --> 00:13:16.159 from we've done loans as quick as you know, been paid back and as 211 00:13:16.240 --> 00:13:20.320 quick as a week pre penalty, no penalties, and that's why they work 212 00:13:20.399 --> 00:13:24.080 with us. We're cheaper than bank financing when you take into account like a 213 00:13:24.120 --> 00:13:28.120 five percent pre payment penalty. And that's the norm for high money guys that 214 00:13:28.159 --> 00:13:31.480 there's no pre payment. No that usually is is there usually a pre penalty 215 00:13:31.480 --> 00:13:33.639 with you high I don't know. I don't I don't know. You know, 216 00:13:33.960 --> 00:13:37.399 I don't see it tons of it to you know. I think there's 217 00:13:37.440 --> 00:13:41.320 probably some guys will do hey, you know it's three months minimum or certain 218 00:13:41.320 --> 00:13:43.639 minimum period, but most of them it's there's It seems like the guys I've 219 00:13:43.639 --> 00:13:48.200 talked that do that is because the points spread on the other end, they'll 220 00:13:48.240 --> 00:13:50.639 charge them a lower interest rate, but they get them on the other way. 221 00:13:50.039 --> 00:13:52.480 They get them, They get them walking out the door, not coming 222 00:13:52.519 --> 00:13:56.759 in the door. Maybe I see that as more bank financing the way it 223 00:13:56.799 --> 00:14:01.159 goes. But if banks are doing charging three, four or five hundred basis 224 00:14:01.159 --> 00:14:07.240 points over if you're only two percent more, so why go to a bank? 225 00:14:07.360 --> 00:14:09.679 I mean that and that's some of our So they had ones to pay 226 00:14:09.720 --> 00:14:11.919 the ten percent, then by the twelve and the nines. I mean then 227 00:14:11.000 --> 00:14:15.320 come on, look at we know one thing in our business, in any 228 00:14:15.399 --> 00:14:18.799 business around a long time, right Like, it doesn't matter if my commodity 229 00:14:20.000 --> 00:14:24.480 is construction. We all know what brings you down to your knees in business, 230 00:14:24.480 --> 00:14:26.759 and that's called interest. I don't care if you're in a Mama Pop 231 00:14:26.759 --> 00:14:30.399 Pizza place and you got to line the credit here and a ligne of credit 232 00:14:30.440 --> 00:14:33.919 there. Look at the look look at the how how we're servicing the debt 233 00:14:33.000 --> 00:14:37.240 nock country, right at the interest rates that we're paying. And I would 234 00:14:37.279 --> 00:14:43.399 say that the deal if it works for a bank loan today, and it 235 00:14:43.440 --> 00:14:46.519 works for a private lender, then the deal works. We run the numbers 236 00:14:46.559 --> 00:14:48.480 ourselves, and that's one of the things. We have no originators on our 237 00:14:48.519 --> 00:14:52.639 team. There's not a single salesperson on my team. I'm not you're on 238 00:14:52.679 --> 00:14:56.679 top of that. Looking we're not looking for going out actively soliciting clients in 239 00:14:56.720 --> 00:15:01.120 that way, right, People come to us because they have a project and 240 00:15:01.120 --> 00:15:03.080 they're going to earn a margin on it. And I think as a builder, 241 00:15:03.080 --> 00:15:07.840 you should be targeting at least a twenty percent margin. And so if 242 00:15:07.840 --> 00:15:11.480 you're not making a twenty percent margin on the project, if you're making a 243 00:15:11.480 --> 00:15:15.200 twenty percent margin on the project, you can afford twelve percent as your cost 244 00:15:15.200 --> 00:15:16.799 to capital on the dead side. If you're not making a twenty percent margin 245 00:15:16.840 --> 00:15:18.919 on it, then you're paying too much for the project, and you shouldn't 246 00:15:18.960 --> 00:15:22.399 do it. And if you don't have and I think people should, and 247 00:15:22.440 --> 00:15:26.600 this is an industry thing. Okay, let me bring you back. How 248 00:15:26.600 --> 00:15:30.559 many guys in the last three years, when prices would absolutely berserk on them 249 00:15:30.600 --> 00:15:33.039 and they didn't see it coming, had to come back to for more money. 250 00:15:35.200 --> 00:15:39.080 Not that many, that's insane. I would say number went from three 251 00:15:39.200 --> 00:15:41.480 or five, from three or five to three fifty five a linuar foot to 252 00:15:41.559 --> 00:15:48.120 eighteen eighteen fifty little foot lineal foot by twenty twenty one. If you were 253 00:15:48.120 --> 00:15:50.840 in the middle of a project and you were buying lumber, you got schmeckls. 254 00:15:52.480 --> 00:15:54.960 So if they had an advance from you, let's say one hundred grand 255 00:15:54.960 --> 00:15:58.120 for a frame, and the frame went up to four hundred thousand. Who 256 00:15:58.159 --> 00:16:02.240 was covering the difference. But let's let's look at it this way, right. 257 00:16:02.279 --> 00:16:04.240 So one of the things about private lending very different than a bank loan. 258 00:16:04.240 --> 00:16:07.519 And one of the things that we look at our loans are our loans 259 00:16:07.519 --> 00:16:10.320 are short termed, they're twelve months. Why do we do that? We 260 00:16:10.399 --> 00:16:14.600 do it? We do it. We're not taking on projects or you know, 261 00:16:14.600 --> 00:16:15.200 if a borrow comes to us and says, hey, I've got a 262 00:16:15.200 --> 00:16:18.879 three year project and this is going to take three years, I'll say I'm 263 00:16:18.879 --> 00:16:21.320 probably not the right lender for you. You really want to go to a 264 00:16:21.320 --> 00:16:23.279 bank or you want to go another lender, because we don't have that visibility 265 00:16:23.360 --> 00:16:26.720 on cost and sales prices as well three years from dow as we do twelve 266 00:16:26.799 --> 00:16:30.120 months from now. And so your point about lumber is the next one. 267 00:16:30.159 --> 00:16:33.639 But we did have that in that period that two years. We're getting hit 268 00:16:33.679 --> 00:16:37.759 with everything. But if somebody's closing, right, it's a twelve month loan, 269 00:16:37.080 --> 00:16:41.360 so we're probably doing you know, if it's a two year project, 270 00:16:41.360 --> 00:16:42.759 we're not doing that project, right, that's not our But even in a 271 00:16:42.840 --> 00:16:47.879 year project, they're buying their lumber. They're signing up their lumber the day 272 00:16:48.159 --> 00:16:49.759 you know, after they're closing. They're getting in there and getting lumber price 273 00:16:49.799 --> 00:16:52.919 in delivery. It's not twelve months later you're getting your lumber. You're getting 274 00:16:52.919 --> 00:16:56.200 your lumber at the beginning of the project, not the end of the project. 275 00:16:56.279 --> 00:17:00.360 Right, I hopefully waiting twelve months. I can guarantee that any loans 276 00:17:00.360 --> 00:17:04.359 that you were writing for new construction guys in that period, they came up 277 00:17:04.359 --> 00:17:07.680 with the money. Whether they didn't come back to you, they had to 278 00:17:07.680 --> 00:17:11.200 come up with a difference of money because everything was up. Well here's everything, 279 00:17:11.279 --> 00:17:14.599 here's what we did see. So one of the things that was up 280 00:17:14.720 --> 00:17:18.240 right, so very interesting in that period is prices and construction costs were up. 281 00:17:18.440 --> 00:17:22.759 Right. Price to acquire the property was up, but also the end 282 00:17:22.839 --> 00:17:26.279 product, the value shot up in a period of time, and that and 283 00:17:26.279 --> 00:17:30.119 that you know, we you know, talk about this forever, But that 284 00:17:30.160 --> 00:17:32.680 bailed out a lot of guys, right, correct, You know, a 285 00:17:32.680 --> 00:17:34.440 lot of people got bailed But that's not happening right now. That's not happening 286 00:17:34.480 --> 00:17:37.400 now. So the numbers are up, but we're still only pulling a certain 287 00:17:37.480 --> 00:17:42.119 number on the other side, so it's not matching. So the spreads. 288 00:17:42.519 --> 00:17:47.200 Look, I'm in a very niche market, so I don't pay attention. 289 00:17:47.279 --> 00:17:51.240 I'm not concerned. Right, But for the guy that's entry level, let's 290 00:17:51.279 --> 00:17:55.519 say three and a half four million in new Massachusetts, right, he's the 291 00:17:55.519 --> 00:17:59.359 guy that can go down faster than anybody because it's entry level. That's kind 292 00:17:59.400 --> 00:18:02.359 of that's a new number for a new construction. That is crazy. And 293 00:18:02.440 --> 00:18:07.200 what town Newton? Two Oh, there's no two million. Not a single 294 00:18:07.200 --> 00:18:10.440 family, not a single family, not in the nice part, not the 295 00:18:10.519 --> 00:18:14.599 nice part you might be an in. Yeah, seven thousand square foot lot 296 00:18:14.640 --> 00:18:18.559 on Comma Averge. Yeah, not very new. But it's crazy. I 297 00:18:18.559 --> 00:18:21.640 mean it's crazy where prices are. I find that absurd growing. I mean 298 00:18:21.680 --> 00:18:25.960 I grew up a very modest income family to think about like what but which 299 00:18:26.400 --> 00:18:30.519 where Jamaica Plane in Roxbury? Okay. So again, when I hear you 300 00:18:30.559 --> 00:18:36.359 know, Newton's not affordable, Brookline's not affordable West and what it never was? 301 00:18:37.119 --> 00:18:41.079 It never was. So I'm so sick of hearing it because it's all 302 00:18:41.839 --> 00:18:44.720 I just laughed. It's like the craziest conversation I have with people all the 303 00:18:44.759 --> 00:18:49.519 time. My parents went from our twelve thirteen thousand square twelve thirteen thousand brand 304 00:18:49.599 --> 00:18:53.799 new house they paid for West Pevity in nineteen sixty four, in sixty four, 305 00:18:53.920 --> 00:19:00.000 sixty five and seventy eight they pulled I want to say, twenty thousand 306 00:19:00.279 --> 00:19:04.839 for that house and moved to Newton and paid ninety something ninety nine. Was 307 00:19:04.880 --> 00:19:10.119 that affordable? No pee? But he was affordable? Newton won and the 308 00:19:10.160 --> 00:19:12.920 only and the guy was ritally asking like one forty They moved dollars furniture out 309 00:19:14.359 --> 00:19:17.119 and he just every he just took a beat. It was nineteen seventy eight 310 00:19:17.160 --> 00:19:22.119 was some bad times anyways. And but again, what where's that affordable? 311 00:19:22.799 --> 00:19:26.759 We are when you're leaving wes poebe at a house that you're into for next 312 00:19:26.799 --> 00:19:29.759 to nothing, and you moved to Newton and you're one hundred and plus thousand 313 00:19:29.799 --> 00:19:32.880 dollars more, right or whatever? The number of different than Boston area housing 314 00:19:33.119 --> 00:19:37.599 is absurdly expensive and it's only going up. And we can't talk about that 315 00:19:37.640 --> 00:19:40.480 too. Hold that thought, I'm sitting stumpointing was to his nails on WBZ 316 00:19:40.519 --> 00:19:42.960 and his ready at ten third sponsored by Pillow Windows of Boston. Next day 317 00:19:42.960 --> 00:20:00.119 molding and Kennedy Carpet in the morning, and I'll come back to tenness sales 318 00:20:00.160 --> 00:20:04.440 on WBZ News Radio ten thirty and I'm Cindy and I'm here with who, 319 00:20:06.440 --> 00:20:11.720 Mantha Tyler and Seon. Okay, finish up with you saying Boddy Austin's expensive 320 00:20:12.160 --> 00:20:15.759 and it's only getting more expensive, and it's hard to build, and it's 321 00:20:15.759 --> 00:20:18.200 getting more expensive to build. It's tough out there. I get it. 322 00:20:18.319 --> 00:20:22.559 So let's go there. Why do you think we're in the housing crisis that 323 00:20:22.599 --> 00:20:25.599 we are now? I think because it's so. I think there's so much 324 00:20:25.640 --> 00:20:27.359 red tape on building, and I think it's so. We've had red tape 325 00:20:27.400 --> 00:20:33.039 for fifteen years. We've had red tape for a lot longer than that. 326 00:20:33.039 --> 00:20:34.400 There used to be a time I could build anything one as long as I 327 00:20:34.440 --> 00:20:38.119 fit my side, setbacks, rear and front period and the story height restrictions. 328 00:20:38.160 --> 00:20:41.680 Non far Non, it's not the problem. The problem was. And 329 00:20:41.720 --> 00:20:45.599 I set us on Bloomberg Radio in twenty eleven. When you stop building for 330 00:20:45.640 --> 00:20:48.960 three four years and we're only in eleventh of time. We missed eight, 331 00:20:49.119 --> 00:20:52.519 nine, ten, we're already three and a half years before I went on 332 00:20:52.519 --> 00:20:56.880 too Bloomberg Radio when they said, Cindy and I started going right over their 333 00:20:56.920 --> 00:20:59.720 heads. How did you think this was not going to catch up on us? 334 00:21:00.680 --> 00:21:03.839 Many states? Everything closed down like take Florida, like every excavator stopped, 335 00:21:03.880 --> 00:21:08.079 everything stopped. Mass a little bit different. We're still building, just 336 00:21:08.119 --> 00:21:11.200 took longer to sell. Right, So we're kind of cushioned here, But 337 00:21:11.319 --> 00:21:15.440 we can't judge that across the whole entire country. You are we're going to 338 00:21:15.519 --> 00:21:19.519 catch up on a housing problem within a decade that was dead on on that 339 00:21:19.559 --> 00:21:23.000 one. And the other problem is here here. Here's where we are right 340 00:21:23.039 --> 00:21:30.119 now, is that you have a I think you're short about seven million houses 341 00:21:30.160 --> 00:21:33.119 in the country right now. Now. You want us developers and builders to 342 00:21:33.240 --> 00:21:38.079 go out there gamble every day, right, think about this, and we 343 00:21:38.200 --> 00:21:44.079 got to pay crazy interest rates, crazy number for product and crazy numbers for 344 00:21:44.079 --> 00:21:48.599 skill gap labor. Right every think about this. For every fifty guys that 345 00:21:48.599 --> 00:21:52.200 are going out, the average age of a contractor is fifty years old. 346 00:21:52.480 --> 00:21:56.960 That is a true fact. Whether there's plumbing, electrical sman, whatever, 347 00:21:57.039 --> 00:22:02.079 fifty is the average age. Every fifty that go out, one's coming in. 348 00:22:02.559 --> 00:22:04.960 Every fifty that go out, to retirement or death. One's coming in. 349 00:22:07.319 --> 00:22:08.720 That's not a good ratio of numbers, right, that's not how it 350 00:22:08.759 --> 00:22:14.160 works. Fifty go out, fifty should be coming in. Fifty go out. 351 00:22:14.200 --> 00:22:15.880 Give me thirty back in, give me fifty, give me seven, 352 00:22:15.960 --> 00:22:19.759 give me ten, depending on the trades. Some we are getting seven seven 353 00:22:19.799 --> 00:22:26.079 back in. But here's your trifector. Here is I said money's expensive. 354 00:22:26.920 --> 00:22:30.920 It's not used to being you used to hear. Oh, it's all on 355 00:22:30.000 --> 00:22:32.960 how you buy. Right, it's the bye. It's not bye, it's 356 00:22:33.000 --> 00:22:34.759 on the buy. It's not on the buy anymore. We gotta pay what 357 00:22:34.759 --> 00:22:37.599 we gotta pay. Period. End of story. No one's giving away their 358 00:22:37.640 --> 00:22:42.000 product anymore. Right, and then numbers just keep going up. So how 359 00:22:42.039 --> 00:22:47.880 does it become affordable. It's not going to become affordable because we don't know 360 00:22:47.880 --> 00:22:49.279 what the new norm is going to be. Number one, We don't know 361 00:22:49.279 --> 00:22:55.279 where product's gonna level. We make this inflation curve. Maybe June comes out 362 00:22:55.319 --> 00:22:57.880 again with a better report, Maybe we'll drop one or two. You know, 363 00:22:59.359 --> 00:23:00.880 we'll have I don't know. You're looking at me like I don't think 364 00:23:00.920 --> 00:23:04.759 so, Cindy, okay, one one point twenty five. But that's not 365 00:23:04.799 --> 00:23:07.400 going to change the needle. It's not going to change the needle. But 366 00:23:07.480 --> 00:23:11.519 remember, the stock market looks into the future. For whatever reason, the 367 00:23:11.519 --> 00:23:15.079 stock market is up at all time high Friday of four hundred. What are 368 00:23:15.079 --> 00:23:18.960 they seeing that we're not seeing, right, They're seeing a stable economy. 369 00:23:18.359 --> 00:23:22.039 I don't know what they're thing. I could say to you, they're overflated. 370 00:23:22.119 --> 00:23:23.920 I don't know. This is our thirty six years. This is something 371 00:23:23.960 --> 00:23:27.000 I've never seen before. I mean personally, I think we should be in 372 00:23:27.000 --> 00:23:30.759 a precession, depression and everything else that comes with it. We haven't figured 373 00:23:30.759 --> 00:23:34.319 out why we booming right? Why? Why? Why? Why? Okay, 374 00:23:36.279 --> 00:23:38.960 So I just think that this window of opportunity right now is right here, 375 00:23:40.400 --> 00:23:44.279 and I'm taking full advantage of this window, meaning I got no competition 376 00:23:44.359 --> 00:23:48.680 that's stepping in. I'm going out and buying everything I can buy, because 377 00:23:48.720 --> 00:23:52.720 when that window closes again and interest rates do drop, there's gonna be ten 378 00:23:52.799 --> 00:23:56.519 office again in every house. There comes to the game again. So how 379 00:23:56.559 --> 00:24:00.799 I look at this and if people are listening, hope they're listening, really 380 00:24:00.839 --> 00:24:04.200 well, if I buy as an end user, right, we'll get back 381 00:24:04.200 --> 00:24:07.279 into your hot money for a minute. But I just wanted to go here. 382 00:24:07.000 --> 00:24:11.319 If I buy a product today and I can find a way to carry 383 00:24:11.319 --> 00:24:15.519 the difference in the interest rate as a young you're thirty one, Well what 384 00:24:15.519 --> 00:24:17.720 does that mean? Well, I can't go off for dinner every night. 385 00:24:17.880 --> 00:24:19.359 I got to slow down my lifestyle a little bit for the next year, 386 00:24:21.400 --> 00:24:23.960 not a vacation, cut back on things that need to be cut back on. 387 00:24:26.039 --> 00:24:29.519 Carry the rate when you run the numbers from what you're going to pay 388 00:24:29.559 --> 00:24:32.240 in the difference, So you're not going back to two, three four percent. 389 00:24:32.279 --> 00:24:36.200 That's done. Guys, that's not ever happening in my lifetime, your 390 00:24:36.279 --> 00:24:38.559 lifetime seeing me. That's never going to happen. But let's get back to 391 00:24:38.640 --> 00:24:44.000 something that's fear fives and the fives. Okay. So if people have locked 392 00:24:44.039 --> 00:24:45.799 in mortgages between three and a half four and a half, four point seventy 393 00:24:45.880 --> 00:24:48.720 five, okay, they can swallow that. They can swallow it. The 394 00:24:48.759 --> 00:24:53.079 buyers will come back out. If you take the difference of spread to your 395 00:24:53.160 --> 00:24:56.480 brain things you're going which you're not going to three and a half percent. 396 00:24:56.880 --> 00:25:00.680 So folks, get that out of your head. You know it's to fall 397 00:25:00.720 --> 00:25:03.720 down again in real estate to come tumbling down again. It's not gonna be 398 00:25:03.759 --> 00:25:08.880 the old market. That's not gonna happen again. But if you lay out 399 00:25:10.119 --> 00:25:15.759 the difference of the spread of let's say, okay, if it gets back 400 00:25:15.799 --> 00:25:18.400 to normal, it's five and a quarter, let's say five and a half, 401 00:25:18.799 --> 00:25:22.440 right, and not six point seventy five or wherever we are right now, 402 00:25:22.039 --> 00:25:26.720 wail the difference every month. I promise you you'll be cheap on the 403 00:25:26.759 --> 00:25:30.119 interest rate. Then you will be when this ten off is coming and the 404 00:25:30.160 --> 00:25:33.880 product's going again eighty ninety one hundred thousand dollars over asking price. Just see 405 00:25:33.880 --> 00:25:40.839 how I see things. No makes sense. So if more people understood that, 406 00:25:41.319 --> 00:25:45.359 they'd be less afraid to buy, you're gonna be it's always where it 407 00:25:45.440 --> 00:25:48.640 goes. You're gonna spend it here or there. You're gonna spend it on 408 00:25:48.680 --> 00:25:53.279 the interest rate, or you're gonna spend it on overpaying for products. You 409 00:25:53.400 --> 00:25:59.359 can't forget that we're seven million houses still short. That you know we haven't 410 00:25:59.359 --> 00:26:03.599 caught up to that. Now you're pulling back on developers again because a lot 411 00:26:03.680 --> 00:26:07.079 of us have pulled permits that we're not going to ever build out. We're 412 00:26:07.119 --> 00:26:11.039 trying to flip the deals. I'm me not I'm not flipping anything. But 413 00:26:11.079 --> 00:26:14.200 I'm saying I use the word we because I have a mouse in my pocket, 414 00:26:14.240 --> 00:26:17.880 I guess, But I'm talking to the average guy there. When you 415 00:26:17.960 --> 00:26:21.599 start checking Brookline, Newton, Revere, at Chelsea, I don't care where 416 00:26:21.599 --> 00:26:25.720 you go. Massachusetts, and again we're in thirty plus states here, but 417 00:26:25.839 --> 00:26:29.720 let's talk about Massachusetts. You speak to the building departments because I've called them, 418 00:26:30.480 --> 00:26:34.680 Hey, how many permits for new construction? Fifteen? Fifteen? No, 419 00:26:34.799 --> 00:26:40.039 fifteen altogether, Cindy, what does that mean? Decks, bathroom, 420 00:26:40.240 --> 00:26:44.400 kitchen? No? How many new building permits have pulled from ground up? 421 00:26:45.200 --> 00:26:48.319 Three? Four? They were getting fifteen a day. You see where I'm 422 00:26:48.319 --> 00:26:52.680 going with this, No think, and that's in a month. So there's 423 00:26:52.680 --> 00:26:56.160 a slowdown right there. You see the slowdown happening. I see it, 424 00:26:56.160 --> 00:26:59.400 and I think there's anything But that's okay. But now if you take the 425 00:26:59.480 --> 00:27:03.880 seven million houses was short and you add the slow down again, seven million 426 00:27:03.920 --> 00:27:08.519 will grow to nine million overnight. All I'm saying, yeah, there's a 427 00:27:08.519 --> 00:27:11.960 massive need for housing. Correct, let's talk about greater Boston area, but 428 00:27:12.039 --> 00:27:17.240 nationally, but coction is huge and it's very hard to build and we need 429 00:27:17.279 --> 00:27:19.880 to loosen the restrictions on builders. Okay, let's gold there, right, 430 00:27:21.000 --> 00:27:25.480 and let's be clear that a lot of the restrictions that are on builders in 431 00:27:25.559 --> 00:27:29.400 terms of regulations, in terms of building code, they kill the cost. 432 00:27:29.519 --> 00:27:32.960 Right. So we sat down. What it does is it makes us builders 433 00:27:33.039 --> 00:27:37.680 carry something for a year longer, pay the interest, pay the insurance, 434 00:27:37.920 --> 00:27:41.079 and paying the taxes because you get our hands tied behind our backs like it 435 00:27:41.160 --> 00:27:45.160 all times. And then special permit ZBA, the design review blah blah blah. 436 00:27:45.200 --> 00:27:52.119 Then we the market going to be and then affordability code absolutely and so 437 00:27:52.400 --> 00:27:55.599 you make it. I mean we brought it in. And then affordable housing. 438 00:27:55.680 --> 00:28:00.359 We brought in ten builders into our office, sat down through a destruction 439 00:28:00.480 --> 00:28:03.400 project up on the screen. It happened to be one of the developments that 440 00:28:03.440 --> 00:28:06.960 we had personally, and said, let's go line by line on what your 441 00:28:07.000 --> 00:28:08.759 build costs are. You know, what is it going to cost you for 442 00:28:08.799 --> 00:28:11.720 framing on this, what is it going to cost you? And where are 443 00:28:11.720 --> 00:28:15.319 my savings? And we went through this and we went through, you know, 444 00:28:15.480 --> 00:28:18.359 dollar by dollar, looking at it with every single builder, with all 445 00:28:18.400 --> 00:28:21.759 those guys in there and you couldn't come up with savings. With all your 446 00:28:21.839 --> 00:28:26.400 guys in there, I would rip that apot in five minutes and tell you 447 00:28:26.680 --> 00:28:30.039 you're going to be over budget, over budget, over budget, over budget, 448 00:28:30.039 --> 00:28:33.440 over budget, over budget. We have not brought a project in. 449 00:28:33.000 --> 00:28:38.799 I never brought my quick books, my Excel, spreadsheets, all my software. 450 00:28:40.480 --> 00:28:44.960 That's my bible for building. Since COVID, we are over in every 451 00:28:44.960 --> 00:28:48.400 buildout. We've never come in under budget or to budget. And here's the 452 00:28:48.480 --> 00:28:49.880 issue is that that never happens by the way. You know, you talk 453 00:28:49.920 --> 00:28:53.599 about the Brooklines, the Newtons of the world, you can still build those 454 00:28:53.640 --> 00:28:56.119 budgets. You go to the rest of the market and you talk about the 455 00:28:56.160 --> 00:29:00.720 media and income, and you look at the build cost forget, if you 456 00:29:00.759 --> 00:29:03.920 get the land for free, you look at the build costs and the affordable 457 00:29:03.920 --> 00:29:06.440 bad work it. You can't build it, and so you're gonna have a 458 00:29:06.480 --> 00:29:10.920 massive shortage of housing in a lot of these neighborhoods that need it the most. 459 00:29:11.039 --> 00:29:15.119 Okay, So if you listen to me in xpaces and clubhouse and social 460 00:29:15.119 --> 00:29:18.519 audio devices, I say this to people, if you gave me the land 461 00:29:18.599 --> 00:29:23.680 for free, the numbers don't pencil out period, end the story. Don't 462 00:29:23.720 --> 00:29:27.759 call me on these deals I'm looking at right now coming through our office. 463 00:29:29.160 --> 00:29:33.359 I don't know I'm getting fifteen eighteen deals. The last time I saw fifteen 464 00:29:33.400 --> 00:29:37.880 eighteen deals, it's been nine years since the eleven ten eleven market. So 465 00:29:38.480 --> 00:29:42.039 what I'm saying is, you guys are only gonna get busier, and I'm 466 00:29:42.079 --> 00:29:45.640 only gonna be able to name my tune because it is what it is, 467 00:29:45.839 --> 00:29:49.680 right, So we're not gonna be afraid. We're gonna be very careful how 468 00:29:49.720 --> 00:29:53.279 we maneuver this market because this is something none of us have ever seen. 469 00:29:53.319 --> 00:29:56.079 Hold that I thought. I'm Sidney Stumple and you listen to Toughest Nails on 470 00:29:56.200 --> 00:30:02.400 WBZ News Radio Temper sponsored by Newbrook Realty Group, Boston, would Smaller Insurance 471 00:30:02.599 --> 00:30:19.799 World Auto Body and Tosca Drive Auto Body and welcome back to Taba's Nails on 472 00:30:19.960 --> 00:30:23.720 WBZ News Radio ten thirty. And I don't care if you don't know who 473 00:30:23.759 --> 00:30:26.839 I am by now, then you shouldn't been listening to my show. What's 474 00:30:26.839 --> 00:30:32.640 your name, Samantha? Okay, you're Tyler Winder? Okay, Sean Kelly 475 00:30:32.720 --> 00:30:34.480 ran all right. So we just had a conversation. Now give me your 476 00:30:34.480 --> 00:30:37.000 abuse of what I just said. You can say, Cindya dead wrong. 477 00:30:37.519 --> 00:30:41.599 No, I think the one risk and speak careful when you say I'm dead 478 00:30:41.599 --> 00:30:45.160 wrong. Okay, I'm never dead wrong, but go ahead. I'm still 479 00:30:45.160 --> 00:30:48.279 waiting for Cindy to come to me for a loan. I'm waiting for that 480 00:30:48.359 --> 00:30:52.039 dec It's gonna happen, Sam, it's gonna happen. That deal is gonna 481 00:30:52.039 --> 00:30:53.920 come up. And you're like, we're in the middle of these projects. 482 00:30:53.960 --> 00:30:59.359 It's such a good deal. Who is sophisticated can close this in ten days 483 00:30:59.400 --> 00:31:00.640 get it done? And I hope that I'm the one you can. Then 484 00:31:00.680 --> 00:31:03.680 I'm want to beat you down on your weight so you don't want me. 485 00:31:03.000 --> 00:31:07.799 You're not I am because you're gonna want that deal so bad because there's gonna 486 00:31:07.799 --> 00:31:10.279 be so much margin in it, and you're gonna be like, Wow, 487 00:31:10.359 --> 00:31:11.519 this is an amazing deal and it goes Cindy, do you want the deal 488 00:31:11.799 --> 00:31:15.319 that means I have to run out of money? Right? I don't know. 489 00:31:15.440 --> 00:31:18.880 You know that could happen. It could be you could be doing so 490 00:31:18.880 --> 00:31:21.519 many projects because what we talked about is right, there's gonna be so much 491 00:31:21.599 --> 00:31:23.359 to build. I told you in fifty nine. Yeah, but somebody's got 492 00:31:23.359 --> 00:31:26.519 to take it over, and somebody's gonna be doing a lot of projects, 493 00:31:26.720 --> 00:31:30.319 a lot of energy. Go talk to miss Brunette. Yeah, she should 494 00:31:30.319 --> 00:31:33.759 be running this company by now. I know a thousand percent. She's got 495 00:31:33.839 --> 00:31:37.079 everything it takes to run this company. She just doesn't like to chase the 496 00:31:37.079 --> 00:31:38.519 guys all day. And I get it, you know what I mean. 497 00:31:38.759 --> 00:31:42.359 I'm just used to that. She but she's sweets all the time now, 498 00:31:42.400 --> 00:31:47.720 like I can't stop her from swearing she's a sailor. She is. Please 499 00:31:47.759 --> 00:31:49.480 tell her it's not very nice. Uh, Sam, that's not very nice. 500 00:31:52.119 --> 00:31:55.759 Let's go, well you should because it doesn't. It works coming out 501 00:31:55.759 --> 00:31:56.759 of my mouth, but it doesn't work coming out of her mouth. We'll 502 00:31:56.759 --> 00:32:00.279 send me tell her that, please. Oh your mom just said it should 503 00:32:00.319 --> 00:32:06.079 listen to me. Go ahead, you can tell me where I'm wrong. 504 00:32:06.279 --> 00:32:08.880 So I think in the economic environment, we're were talking about rates, right. 505 00:32:09.039 --> 00:32:13.799 Every builder, every developer, every real estate person is talking about rates, 506 00:32:13.880 --> 00:32:17.400 and I think let's not play with rates, right, Let's not go 507 00:32:17.440 --> 00:32:21.960 out and build, Let's not buy things with the idea that rates are coming 508 00:32:22.000 --> 00:32:24.440 down. Anytime soon. And I think that the risk is that people are 509 00:32:24.440 --> 00:32:28.039 going to say, hey, rates are coming down soon. You're going to 510 00:32:28.079 --> 00:32:31.039 serve us to death this country at those rates. It's a problem, right, 511 00:32:31.079 --> 00:32:35.039 But I think you can be right rates are gonna come down, but 512 00:32:35.079 --> 00:32:39.640 you can be vastly wrong on time. And so I I don't know right, 513 00:32:39.720 --> 00:32:43.599 and we're not gonna We're not. But is it going to be twenty 514 00:32:43.599 --> 00:32:45.440 five bases fifty basis points in a year? You're gonna get one percent in 515 00:32:45.440 --> 00:32:47.960 a year? Does it matter? Is one percent going to matter? Does 516 00:32:47.960 --> 00:32:51.359 it mean that mortgage rates come down? And then you have to ask your 517 00:32:51.440 --> 00:32:54.799 question yourself, the question why are rates coming down? Are rates coming down 518 00:32:54.920 --> 00:33:00.200 because inflation's coming down because the government rate does all the time and goes this, 519 00:33:00.359 --> 00:33:02.880 Oops, we made a mistake the rates we made a mistake. Or 520 00:33:04.000 --> 00:33:09.119 do the rates come down because the economy goes down and they need to lower 521 00:33:09.160 --> 00:33:14.839 the rate to save the economy. Is it is it a rates falling because 522 00:33:15.119 --> 00:33:20.720 inflation is falling? Or is rates falling because employment is falling and unemployment is 523 00:33:20.839 --> 00:33:23.599 rising vat sleep And so then then if you look at that picure, I'm 524 00:33:23.599 --> 00:33:27.720 not a conspiracy person by no means. But if you think I believe the 525 00:33:27.799 --> 00:33:30.160 data or anything anymore, I don't. So let's get that straight. There's 526 00:33:30.200 --> 00:33:35.000 a lot of people unemployed that has stopped collecting unemployment, so I'm not gonna 527 00:33:35.000 --> 00:33:37.559 have real data numbers here. Okay, that's the truth. So I think 528 00:33:37.559 --> 00:33:40.079 we have a two speed economy. I think we have a lot of people 529 00:33:40.240 --> 00:33:44.079 that are doing very very well. And I think if you look in the 530 00:33:44.160 --> 00:33:45.720 data, and if you go back and and you know, I do a 531 00:33:45.720 --> 00:33:50.319 lot of this on social media. LinkedIn is my place. People who follow 532 00:33:50.359 --> 00:33:52.960 me, I'll see it. I comment a lot on on the economy. 533 00:33:52.039 --> 00:33:54.799 Well, I'm coming after you on LinkedIn. Then I'm gonna yeah, come 534 00:33:54.839 --> 00:33:58.559 on, let's go. Let's go out to bat. And I think one 535 00:33:58.559 --> 00:34:01.039 of the things that's out there, and its reason is, hey, if 536 00:34:01.079 --> 00:34:06.160 you look in in the data, if you follow the bank data, so 537 00:34:06.440 --> 00:34:08.960 mortgage delinquency, I need them on xpaces with me. Remind me of that 538 00:34:09.000 --> 00:34:14.920 place. Go ahead, the mortgage delinquencies on the edges. So faha right, 539 00:34:15.000 --> 00:34:16.679 So the faha loans the language is a certain spike. If you look 540 00:34:16.719 --> 00:34:20.840 at car loan delinquencies, they're going up. If you look at credit card 541 00:34:20.880 --> 00:34:24.480 delinquencies, they're going up. So something in that consumer on that end is 542 00:34:24.519 --> 00:34:29.480 not going well, right, and so is a commercial. And then if 543 00:34:29.480 --> 00:34:30.679 you look at the commercial real sex, and then you look at the then 544 00:34:30.679 --> 00:34:34.440 you look at the down Joe's it's up for I mean, it's just crazy. 545 00:34:34.480 --> 00:34:37.920 And so you ask yourself, is everything going well or have we reached 546 00:34:37.960 --> 00:34:40.480 have we gone to a point that we've said, hey, it was going 547 00:34:40.519 --> 00:34:45.039 well, and it's carrying on past the edge of the cliff, and we're 548 00:34:45.079 --> 00:34:47.360 now looking and saying, you know what, the momentum is carrying us forward, 549 00:34:47.559 --> 00:34:52.719 but the fundamental economy overall isn't as doing as well as people are looking 550 00:34:52.760 --> 00:34:54.840 at. And that's why as lenders and we say, hey, what is 551 00:34:54.880 --> 00:34:58.559 there I look at as a lender as an investment position, right, and 552 00:34:58.599 --> 00:35:00.719 why am I lending? Why I'm lending because it's a defensive role. So 553 00:35:00.800 --> 00:35:04.719 our investors and we're investing on behalf of our investors. We see it as 554 00:35:04.719 --> 00:35:07.840 more defensive than going out and building ourselves right and being an equity investors. 555 00:35:07.880 --> 00:35:10.960 And that's because we look out the economy and we say, hey, it 556 00:35:12.000 --> 00:35:15.639 doesn't look as rosy to us as it does looking at the Dow, and 557 00:35:15.679 --> 00:35:19.000 we think people need to be defensive, and I think people need to look 558 00:35:19.039 --> 00:35:22.000 at that and start saying, hey, you know what, we need to 559 00:35:22.039 --> 00:35:24.039 proceed with caution. So okay, so everything you just said, just dumb 560 00:35:24.079 --> 00:35:28.599 it down. Now, dumb down everything you just said, because sometimes we 561 00:35:28.719 --> 00:35:34.559 talk over people's heads and they're not grasping. I think the economy is not 562 00:35:34.679 --> 00:35:38.719 doing as well as it shows and the figures greed and I think the same 563 00:35:38.760 --> 00:35:42.159 page on that one. We are, but a lot of people aren't. 564 00:35:42.320 --> 00:35:45.320 No, and I think people think there's a rosier view than maybe they should. 565 00:35:45.360 --> 00:35:47.559 And I think people need to proceed. I'm not saying you need to 566 00:35:47.920 --> 00:35:53.440 save money for a ready day. Just save money. Oh he's the cheapest 567 00:35:53.440 --> 00:35:57.559 person in the world. Thanks for bringing that in. He's a Libra. 568 00:35:57.920 --> 00:36:00.880 Okay, I'm I'm a thirty one year old Libra. Every dollar I get 569 00:36:00.960 --> 00:36:04.239 goes right back into the business. Okay, So you save money for rain 570 00:36:04.360 --> 00:36:07.760 day, you or you reinvested in, reinvested in. But you're stupid, 571 00:36:08.000 --> 00:36:12.760 right, try not to Okay, walks around holding his sock. I'm just 572 00:36:12.760 --> 00:36:15.960 trying to make it's a whole time. He had something he's getting very personal 573 00:36:16.079 --> 00:36:21.960 talking about Okay, I like, guys, what Nana does, It doesn't 574 00:36:22.039 --> 00:36:24.760 matter. You save for a rainy day with the coffee cup. Then I'm 575 00:36:24.800 --> 00:36:29.679 just trying to explain to Samantha, like you, just if you make a 576 00:36:29.760 --> 00:36:31.880 million, doesn't mean you spend eight hundred. Okay, how about spending five 577 00:36:31.960 --> 00:36:35.480 hundred? Make a million, given a load to the government, and then 578 00:36:35.559 --> 00:36:37.400 I don't know, there's not eight hundred left. That's true too, right, 579 00:36:37.480 --> 00:36:42.000 So make a million, you give a five hundred, right, done, 580 00:36:43.079 --> 00:36:45.880 and then go get some property tax in there. And okay, but 581 00:36:45.440 --> 00:36:49.599 I mean all time in so if we're looking to dumb everything down, you 582 00:36:49.639 --> 00:36:52.199 look at everything at a very mich does that mean CALLI youre as dumb as 583 00:36:52.239 --> 00:36:55.119 me because I like the dumb things. Now. I can't answer that as 584 00:36:55.159 --> 00:36:58.159 I'm as dumb as I am. Right now, We'll just stay right. 585 00:36:59.159 --> 00:37:01.280 Either of you are dumb people. You simplify everything, and you look and 586 00:37:01.320 --> 00:37:06.159 when twenty twenty one where they dropped everything and it was zero percent interest rate, 587 00:37:06.159 --> 00:37:08.440 it was the dumbest thing you could possibly done for the financials and the 588 00:37:08.480 --> 00:37:13.679 government. Moving forward where three years later and you're seeing the affordability spike, 589 00:37:14.119 --> 00:37:16.480 right, so rates go down to zero, mortgage rates go down to practically 590 00:37:16.639 --> 00:37:20.800 and that right there, right there, what you're talking about right now is 591 00:37:20.880 --> 00:37:22.320 why the guys that have been in the business for the last seven years are 592 00:37:22.360 --> 00:37:25.519 tasting their own blood right now, and they don't know how to maneuver. 593 00:37:25.960 --> 00:37:30.559 They've they never felt this before. So they were all like ah deers with 594 00:37:30.599 --> 00:37:32.920 headlights coming at them. I'm laughing because I've had deal with I've been a 595 00:37:34.000 --> 00:37:37.360 deal with headlights for thirty six years. Eighty seven, eighty eight, eighty 596 00:37:37.480 --> 00:37:40.400 nine, ninety ninety one, Market ninety seven was a hiccup two thousand and 597 00:37:40.400 --> 00:37:43.960 eight. I've seen this movie, and I know how to maneuver around this 598 00:37:44.039 --> 00:37:46.800 movie. But your generation, oh yeah, things are going to great. 599 00:37:47.079 --> 00:37:52.079 Real estate's gonna stay great for twenty years, body stopped. There's always something 600 00:37:52.519 --> 00:37:54.280 that breaks us down. We just never know what it's going to be. 601 00:37:54.559 --> 00:37:58.599 And we had the longest real estate run I've ever seen in thirty six years. 602 00:37:58.679 --> 00:38:02.000 Yep. We literally had twelve year run, a twelve year run where 603 00:38:02.039 --> 00:38:06.880 things have been great. Something's gonna slow this down. Well, you look 604 00:38:06.920 --> 00:38:08.679 at you look at the two things of so by the way I believe that 605 00:38:08.800 --> 00:38:12.920 young guys at a cocky need to taste their own blood right now. And 606 00:38:13.239 --> 00:38:15.880 is it bothering me? Absolutely not, because they need to. You know 607 00:38:15.960 --> 00:38:19.360 why, you don't know good times to your felt bad times. You don't 608 00:38:19.400 --> 00:38:22.079 appreciate good times to you felt bad times, and vice versa. And by 609 00:38:22.119 --> 00:38:25.480 the way, bad times checks your ego right back at the door real fast, 610 00:38:25.840 --> 00:38:30.360 and you hope you'll never forget that. I've never forgot those days when 611 00:38:30.400 --> 00:38:34.239 I tasted my own blood, right So, I just think there's a little 612 00:38:34.239 --> 00:38:36.519 bit of blood tastes that's gonna get taken care of out there, and then 613 00:38:37.079 --> 00:38:39.360 they'll come back and maybe do things a little smarter. Everybody wants to be 614 00:38:39.400 --> 00:38:45.320 the biggest, and everyone wants this overnight. They want to be very, 615 00:38:45.440 --> 00:38:49.320 very wealthy in five years, and a lot did get wealthy in five years. 616 00:38:49.880 --> 00:38:54.360 The questions will sustain because the bigger your balls are, you're going to 617 00:38:54.440 --> 00:38:58.920 stay with that mentality, and that mentality is going to take you down at 618 00:38:58.960 --> 00:39:02.840 some point. Just watch, like, look around you, look around you. 619 00:39:04.559 --> 00:39:07.960 I'm not gonna be wrong here. Yep, it was happening my generation 620 00:39:07.079 --> 00:39:09.880 is gonna happen in your generation. Me. I was smart. I watched 621 00:39:09.920 --> 00:39:13.440 all the other guys. What did they do wrong? So I don't do 622 00:39:13.519 --> 00:39:15.360 this wrong at twenty three, twenty four, twenty five, then I saw 623 00:39:15.440 --> 00:39:21.440 it. I figured out they were over leveraged and underfunded. Wow, two 624 00:39:21.559 --> 00:39:24.719 crazy words. Over leveraged and underfunded, and we're right there right now again. 625 00:39:25.079 --> 00:39:29.760 These guys are underfunded and they're overleveraged, and there's no more robbing Peter 626 00:39:29.800 --> 00:39:31.639 to pay Paul. So they have four houses sitting. The banks are shutting 627 00:39:31.679 --> 00:39:36.559 them down, saying you're not getting a fifth because the fourth one carried the 628 00:39:36.599 --> 00:39:39.480 interest on the first. The other three follow I'm saying, yep, so 629 00:39:39.679 --> 00:39:45.559 look for another deal to pull the money to carry your interest loan. And 630 00:39:45.599 --> 00:39:49.920 they're out shopping other deals, and then eventually the bank says, until you 631 00:39:50.000 --> 00:39:52.920 move one or two projects, we're not taking you on against they go to 632 00:39:52.960 --> 00:39:58.199 another bank. You guys, I'm just saying, what's been for thirty six 633 00:39:58.280 --> 00:40:00.480 years? You can tell me what's been going on here with I think starts 634 00:40:00.480 --> 00:40:04.880 blinking whenever seizure from it. But it is hot live, we're live, 635 00:40:04.960 --> 00:40:07.119 we know we're live. Go ahead. I think there's one of the things 636 00:40:07.199 --> 00:40:12.280 that you know we tell our builders we work with, and I think a 637 00:40:12.360 --> 00:40:15.320 lot of them were more experienced builders, and that's we deal. That's a 638 00:40:15.360 --> 00:40:16.679 clientele we built up, and that's in everybody in the industry. Okay, 639 00:40:16.679 --> 00:40:19.599 I hope that bub we're going to break. I know, I know this 640 00:40:19.679 --> 00:40:22.639 thing. I'm so sorry. You know. It's in Toughest Nails on WBZ 641 00:40:22.719 --> 00:40:34.280 News Radio ten third'd be right back and welcome back to Toughest Nails on WBZ 642 00:40:34.360 --> 00:40:37.039 News Radio ten thirty. And I'm Cindy and I'm here with Sam, I'm 643 00:40:37.039 --> 00:40:39.880 here with Sean. I'm here Tyler. Okay, So guys, you're inducted 644 00:40:40.239 --> 00:40:44.960 into the Cindy Stampo world. So we're gonna come on every four or five, 645 00:40:45.039 --> 00:40:46.639 six weeks. We're gonna bring up people up to speed on interest rates, 646 00:40:46.719 --> 00:40:51.960 hard money, regular bank, traditional funding. How's that perfect, Tyler? 647 00:40:52.280 --> 00:40:55.119 Sean, how do people reach you easiest ways on LinkedIn? Tyler Winder? 648 00:40:55.159 --> 00:40:58.840 If you go on Instagram, mister Winder, that's what we're running with. 649 00:40:58.960 --> 00:41:00.159 And if you're ever in North End in Boston, that is where our 650 00:41:00.159 --> 00:41:04.920 headquarters are. Go ahead, Sean Kelly Rand RD Advisors, so you can 651 00:41:04.960 --> 00:41:07.159 look us up on Instagram. We have a presence, but really you find 652 00:41:07.320 --> 00:41:12.679 me personally on LinkedIn. So it's Sean Kelly rand So Kelly k E L 653 00:41:13.000 --> 00:41:15.719 Y hyphen R A N D and it's on LinkedIn. You guys always going 654 00:41:15.760 --> 00:41:20.280 to complicate things your generation. Okay, have a great safe weekend. I'm 655 00:41:20.320 --> 00:41:22.719 sorry that the things are so long. I'm just Sindy stumpboy Gmail. I 656 00:41:22.800 --> 00:41:25.239 have a great safe weekend and we'll see you next week. This is Cindy 657 00:41:25.280 --> 00:41:29.159 Stumpo Toughest Nails on WBZ News Radio ten thirty