Speaker 1: I'm not Sydney Tempo. And this is Tough Zails on
Speaker 1: WBZ News Radio ten thirty.
Speaker 2: Try that one again. You have been doing a radio
Speaker 2: show for nine years. You should be able to open
Speaker 2: up our shows by now?
Speaker 1: Why you always do the open?
Speaker 2: Why don't you ask mikey V that's the DJ here
Speaker 2: you can open explain her why after nine years she
Speaker 2: should be able to open up your own show.
Speaker 3: Hopefully muscle memory or seeing it. But who knows that
Speaker 3: you guys are doing different ways? I don't know.
Speaker 2: Okay, I can do it for you, can you? Yeah,
Speaker 2: go for it? There we go. Yeah, you're going. We're waiting. No,
Speaker 2: we've opened up. Ready, we're here. Here we go.
Speaker 3: This is Tough as Nails with Cidney Stumpo and Samantha
Speaker 3: Tempo right here in WBZ.
Speaker 2: There you go, And how do I open up?
Speaker 1: You tell us how you open up?
Speaker 2: I don't remember. My brain is so dead right now.
Speaker 3: Next question is and who we're with?
Speaker 2: All right? And next question? So we typically open welcome.
Speaker 2: This is City Stumpo Toughest Nails on WBZ and we
Speaker 2: are here tonight with Sammy and.
Speaker 3: Lukens and Mike e V from H and kis fun.
Speaker 2: Wait, okay, so what.
Speaker 1: Does H one H two stand for? Because it's like.
Speaker 3: That's com've originally started.
Speaker 2: You know, if two people talk at the same time,
Speaker 2: it's a very horrible listening experience. I just want you
Speaker 2: to know when you're listening to Radio ahead.
Speaker 3: H one two we stand for housewan house too, to
Speaker 3: help developers get into more projects, get in the housewan
Speaker 3: house too.
Speaker 1: And so we didn't talk about that the first time.
Speaker 2: Well we should, okay, but for us, let's just touch
Speaker 2: upon what is going on in the economy right now.
Speaker 2: Terris come and go and they're coming, they landed, this,
Speaker 2: staying and there. We don't know right So a lot
Speaker 2: of our listeners have been asking, how come Sinny's not
Speaker 2: touching upon real estate, the economy? Terrorists We were going,
Speaker 2: we were interest rates going blah blah blah, right, like
Speaker 2: everybody has an opinion, and then I got to listen
Speaker 2: to everybody's opinions. You know what everybody's opinions mean. I'm
Speaker 2: going to say this one time and one time only.
Speaker 2: What I know is I don't know how's that. I'm
Speaker 2: not predicting any calls right now. I'm not predicting I've
Speaker 2: made a lot of calls in the real estate market
Speaker 2: on Bloomberg Radio, on Yahoo Finance, and on the Globe
Speaker 2: and the Herald over my thirty seven year career. I'm
Speaker 2: not making calls right now. What I say, you say
Speaker 2: thirty eight years again, I'm going to throw my penny you.
Speaker 2: She likes to make me older and older. I don't
Speaker 2: know why that makes her older and older. But what
Speaker 2: I do know is this, when stock markets crashed, historically,
Speaker 2: we as real estate people go behind it. The difference
Speaker 2: is the stock market's been high up until all this, right,
Speaker 2: the last couple of weeks of craziness, and then once
Speaker 2: the market drops, we drop behind it. This is the
Speaker 2: first time that real estate slowed down and the market
Speaker 2: was still at all time highs. Right. But if you
Speaker 2: watch the market right now, it's just so volatile that
Speaker 2: if you take the public stock like Toll Brothers and
Speaker 2: bringing all the public companies right, they were down, down, down,
Speaker 2: down down, and then they got a little but they
Speaker 2: went up. I don't know where they stand right now,
Speaker 2: so I might want to look that up. Can you
Speaker 2: look up right now for me? Right now? We're told
Speaker 2: Brothers closed on Friday or on the overnight, So that
Speaker 2: gave you good indication for a bit that they rose
Speaker 2: again because if they're thinking interest rate is going to
Speaker 2: come down, right I don't know if any of this
Speaker 2: is all making sense to my listeners right now. Maybe
Speaker 2: it is, maybe it isn't. We will do a show
Speaker 2: on it completely, but right now we're going to stay
Speaker 2: focused with Mikey and Luke and talking about their business.
Speaker 2: And again, what I know is what I don't know
Speaker 2: right now. I'm sitting in the same cheer as everybody
Speaker 2: else waiting to see where this market ends up going.
Speaker 4: Yep.
Speaker 2: But I do know this, guys. We have two years
Speaker 2: before midterms hit, and there's no way any presence ego,
Speaker 2: I don't care who the president is wants to go
Speaker 2: down as a flop. That's just not especially this president
Speaker 2: right so I would think he's going to pick up momentum,
Speaker 2: figure this all out, and we're going to be smooth
Speaker 2: sailing set in twenty twenty three. Samu Ary twenty four
Speaker 2: was gonna get bad, in twenty five, was gonna be
Speaker 2: a really tough year going into twenty six. I'm standing
Speaker 2: behind that and that one. I'm not coming off of
Speaker 2: that one. Was a prediction I made twenty two or
Speaker 2: twenty three. I forget.
Speaker 1: You actually thought internace would go up this year?
Speaker 2: What's that You.
Speaker 1: Thought interstrates would go up in twenty twenty five?
Speaker 2: No? No, I said interstrates were going up in twenty three.
Speaker 1: Also in twenty five, they were gonna go up this
Speaker 1: year before you thought two or three more times before
Speaker 1: they went down.
Speaker 2: Yeah, that was actually twenty four. I said twenty five
Speaker 2: they'd have to level. They'd have to level now.
Speaker 1: I'd have twenty five.
Speaker 2: No, absolutely not. You might want to go back and listen.
Speaker 2: That is not true. So will interest rates go up?
Speaker 2: Will they stay the same? I don't know. Again, Powells's
Speaker 2: own entity. I have no idea what he's going to do.
Speaker 2: Presidents can't control where interest rates go and where they are.
Speaker 2: Can they keep rising? Sure? Can the Federate drop the
Speaker 2: rate tomorrow? Sure? We don't know. So everybody just I
Speaker 2: say this, don't panic, don't sell out your stocks, and
Speaker 2: just go to sleep at night. Because if you're old enough,
Speaker 2: you've been to these economies before. If you're young, then
Speaker 2: you're young enough to weather it out. So if people
Speaker 2: just don't panic, stop panicing. The stock market for if
Speaker 2: you all stop panicking, you all going to sell mode
Speaker 2: when you have more sellers than your selling down there,
Speaker 2: you go just going to keep deflating the market. So anyways,
Speaker 2: let's get off of that. I hope I answered my
Speaker 2: listeners this question that they text me, email me, and
Speaker 2: send me all these things talk to me. We left
Speaker 2: off weird. Does anybody remember where we left off with you?
Speaker 2: To U?
Speaker 3: I think we're walking through an actual deal and what
Speaker 3: we would lend on a fix and flip type product
Speaker 3: in our product that we have for new developers, that
Speaker 3: is really advantageous for somebody who's getting into the game.
Speaker 2: Okay, we can go there, but I do have a
Speaker 2: question for Looke where you see all of these banks
Speaker 2: right now getting nervous? Are you guys getting nervous in lending?
Speaker 2: Things have changed since we met and had a conversation
Speaker 2: a week ago. You realize that, right, Oh yeah, we're
Speaker 2: going back to back two weekends in a row now
Speaker 2: and we it's a whole different conversation though. Now things
Speaker 2: changed in one.
Speaker 4: Week, Things were changing by the hour the day. Now
Speaker 4: then it's really there. So yeah, there's there's certainly reason
Speaker 4: to be nervous about what's going on. But where we
Speaker 4: hang our hat is that and probably are vesting in
Speaker 4: this industry in general is people always need a place
Speaker 4: to live. So we're lucky in our industry to be
Speaker 4: diversified across three million dollar houses to three hundred thousand
Speaker 4: dollar houses, and Americans will always need a roof over
Speaker 4: their head. So we look at it, and you know,
Speaker 4: times like this being super super particular about not being
Speaker 4: over leveraged in any particular subcategory of of our real
Speaker 4: estate lending.
Speaker 2: So you guys have sat down as a team and
Speaker 2: have discussed this.
Speaker 4: Yeah, we know where our exposures are. So we've looked
Speaker 4: at things and said, Okay, you know, are we over
Speaker 4: leveraged in a certain you know subcategory like a high
Speaker 4: end luxury or do we have too many you know,
Speaker 4: rental grade, you know, workforce level housing products? Where do
Speaker 4: we have too much? And where do we think is
Speaker 4: going to get impacted first? So where do we want
Speaker 4: to kind of hit the brakes or have a little
Speaker 4: bit of pause as we put more money out your
Speaker 4: how old look thirty four?
Speaker 2: Okay? And Sammy you're thirty eight thirty seven? Okay?
Speaker 1: How old are you?
Speaker 2: Mom, so I've been The sad part of that question
Speaker 2: is that I've been developing and building longer than all
Speaker 2: three of you have been alive. And that's really scary, right,
Speaker 2: really scary.
Speaker 1: Well, are you scared?
Speaker 2: No, okay, I'm not scared at all.
Speaker 4: People scared and nervous are two different.
Speaker 2: No, No, not scared. I'm not nervous, And I'll tell
Speaker 2: you why. Once you've been through these twice in your life.
Speaker 2: There's a difference between my age and your age. Right,
Speaker 2: you already know what's coming. We're going to go through
Speaker 2: some bad times and then when to come back up
Speaker 2: like we always do. It's just amount of time. The
Speaker 2: question is do I have the time at this time
Speaker 2: in my life to weather out four bad years? Right?
Speaker 2: Because usually it's four bad years and then we go
Speaker 2: seven eight years good years, and then it's back to
Speaker 2: the three four bad years. You learn the cycles. This
Speaker 2: is all cycles. And I knew that we had a
Speaker 2: bullsh market since twenty twelve. We've been in high gear,
Speaker 2: high gear since twenty twelve. All right, every hold, I
Speaker 2: thought we're going to break. I'm Sidney Stumble and you're
Speaker 2: listening to one crazy toughest Nails tonight on WBC and
Speaker 2: welcome back to Toughest Nails on WBZ. And I'm Sidney
Speaker 2: Stumble And you're here with Sammy, you're here with Luke,
Speaker 2: and you're here with Mikey. Let's not waste time on
Speaker 2: openings and closings because we got so much to talk about.
Speaker 2: With that being said, No, I'm not nervous and I'm
Speaker 2: not scared. What I am is weathered. Okay, I'm weathered.
Speaker 2: I'm used to this. Do I like it at this
Speaker 2: stage of the game. No, Because if I had to wait,
Speaker 2: like I said, another four years to come out of this,
Speaker 2: that's going to be an issue for me because you
Speaker 2: got to take people's ages into consideration. Right. So I'm
Speaker 2: on the back let's say three of my career. Okay,
Speaker 2: So if I'm on the back three of my career,
Speaker 2: then the next three four years are kind of important, right,
Speaker 2: So you can't make at some point sayre going to stop,
Speaker 2: like doesn't go You're not going to stop, Okay.
Speaker 1: You're more afraid that you're going to forget everything and
Speaker 1: if you don't use it, you lose it. You're not
Speaker 1: going anywhere.
Speaker 2: I can't retire.
Speaker 1: I think you've been saying in the back nine since
Speaker 1: I've been ten.
Speaker 2: I've been on the back nine since since you've been.
Speaker 1: Like, for someone that doesn't solf, you really know how
Speaker 1: to keep saying.
Speaker 2: Right some of the factory. But for me right now
Speaker 2: I have to worry about. You're in your prime of
Speaker 2: making money. Your best years are ahead of you. Do
Speaker 2: you understand, Yeah, your best years are coming forward, but
Speaker 2: my best years are behind me. Maybe it's say it's
Speaker 2: it's Sammy. You can keep saying that, but that is
Speaker 2: the truth. Okay, But why do you want to battle
Speaker 2: me on some not battling battle? Because I think it's
Speaker 2: some part of it.
Speaker 1: This excites you, this economy, Yeah, because you're like, yeah, enough,
Speaker 1: I'm going to do No. I know your brain's going
Speaker 1: places where, like you're setting you yourself up for when
Speaker 1: we get back to the high again. Like, I know
Speaker 1: that's where your brain's going.
Speaker 4: So you think she's looking for the opportunity.
Speaker 2: Thousand percent on what you call the bottom scrapper. Of course,
Speaker 2: I'm not going to get scared to buy. This is
Speaker 2: when you buy. Everybody buys when everything's high and then
Speaker 2: all of a sudden things drop. Everybody goes, oh, it
Speaker 2: looks like a bunch of deal with headlights.
Speaker 4: Yeah, we saw that at the end of like the
Speaker 4: COVID real estate boom where people were still paying crazy
Speaker 4: prices and then hold on a second real estate isn't selling,
Speaker 4: you know, without any inspections or any contingencies.
Speaker 2: Like, yeah, that was all crazy. Sammy saw me go
Speaker 2: in in twenty eleven. It was bad and literally walk
Speaker 2: into this person's house and say, Okay, I'm going to
Speaker 2: pay you two million dollars right now. I'm going to
Speaker 2: hand you a check for two million right now. You
Speaker 2: can cash it when we go to perch and sale,
Speaker 2: but that's when I'm paying you. We put the steal
Speaker 2: together in one hour in that house in Brookline. Nobody
Speaker 2: was stroking checks for two million dollars in two thousand.
Speaker 2: It was a ten or eleven, Sammi, since your memory
Speaker 2: is so good on my age, I.
Speaker 1: Know the house you're talking about. I want to say eleven.
Speaker 2: Okay, deal's done. When I paid that much money, people
Speaker 2: was like, people like, wait, what is she crazy? Is
Speaker 2: she crazy? When that hit the listing right because.
Speaker 1: They thought that was too much money at the time.
Speaker 2: Six months later, across the street went for two point five.
Speaker 2: Then six months after that, I paid three points something
Speaker 2: you sow fast.
Speaker 1: It moved first too eight? What was it to Cabot?
Speaker 1: Was too eight?
Speaker 2: Not talking about that one.
Speaker 1: That was the next one after that, No, the one
Speaker 1: closest to where you live now, that Cabot, not this Cabot.
Speaker 2: The next one was right yeah, And then people said,
Speaker 2: are you crazy again? I'm always a crazy one. It
Speaker 2: always seems to work out right. But that's not the point.
Speaker 2: The point was, no one was stroking checks like that.
Speaker 2: Everybody was on breaks on. No, I wasn't breaking on.
Speaker 2: Then that started that whole erie of me redeveloping and
Speaker 2: pulling insane numbers that had never been pulled before. That's
Speaker 2: the fun, that's right. You're taking a risk every day.
Speaker 2: We're gimbling every day out there, no doubt. When you're
Speaker 2: putting your money on the streets, you're gambling.
Speaker 1: So you put it under in twenty twelve, we closed
Speaker 1: January ninth, twenty thirteen, okay, million, But.
Speaker 2: I put an under agreement when and we closed.
Speaker 1: When January ninth, twenty thirteen, okay.
Speaker 2: So we went to Historical for four months, probably right,
Speaker 2: But they had the money.
Speaker 4: I think some of that is a difference, though, between
Speaker 4: nervous and scared. There is definitely a line, like scared
Speaker 4: is oh no, and taking my money off the streets
Speaker 4: and I don't want to do anything. Nervous is you're
Speaker 4: paying attention and you're you know, you care, and you're
Speaker 4: feeling something. Hey there's something going on and I'm not
Speaker 4: just being oblivious to it. That's when when is that?
Speaker 3: Really?
Speaker 2: What nervous is? Nervous is when you can't sleep at night.
Speaker 2: Nervous is when your stomach's tossing and turning, And nervous
Speaker 2: is when you're sweating, going oh scratchy, had going oh god,
Speaker 2: should have I underwrote that deal? Oh boy? When you're
Speaker 2: questioning everything you're doing, that's nervous. I just closed checking account.
Speaker 2: Scared means I'm closing the checking account.
Speaker 4: Yeah, I'm with you. There, I'm with you. Unscared, which
Speaker 4: I don't think people should be here. Certainly we're not
Speaker 4: scared in this environment. Nervous for me is more of just,
Speaker 4: you know, trying to be extra careful and thinking about
Speaker 4: more scenarios, not to the level of anxiety where I'm
Speaker 4: not sleeping or paying attention but like I think of
Speaker 4: it all the way back to like a big test
Speaker 4: in school or before a big sports game or a
Speaker 4: date or something like that. Like you get nervous, and
Speaker 4: that's like there's a good thing about being nervous too,
Speaker 4: So that opportunity that you're seeing maybe some of that
Speaker 4: nervousness can be you know, weaponized as a good thing
Speaker 4: where you're thinking, oh, hey, yeah, you weren't nervous writing
Speaker 4: a check for two million dollars for that house. You
Speaker 4: felt one percent confident when when you did that, I did, Well,
Speaker 4: you're that's incredible. But that's like, that's not the average
Speaker 4: investor in real.
Speaker 2: Estate because remember we're in a lot of we're in
Speaker 2: thirty eight states right now we're talking. We can't talk
Speaker 2: about what's going on every state that's a safe state.
Speaker 2: We're especially the areas that I belie, Right, it's a
Speaker 2: pretty recession proof that I've proven that to be the truth.
Speaker 2: Where builders have gone down Need and Wellesley Weston.
Speaker 1: You're a pretty recession proof your brand, not everybody.
Speaker 2: Else's, Okay, explain that.
Speaker 1: There are people that will wait for a house that
Speaker 1: you would that you would build in a certain area
Speaker 1: over just going to buy somebody else's house just because
Speaker 1: they need a house.
Speaker 3: Your brand holds weight.
Speaker 1: Like we have a client right now that lives in
Speaker 1: new and he bought like the house that they bought
Speaker 1: was kind of like an okay, spack house. They've been
Speaker 1: waiting three years before their house is officially done on
Speaker 1: Woodland Road conservation planning, just because they wanted that house.
Speaker 2: Yeah, and so we put this house on an agreement
Speaker 2: three years ago and would just get into the closing
Speaker 2: table in two weeks. Yeah, but I just got we
Speaker 2: had it's just because there was so much going on.
Speaker 2: I had so much to build that I just couldn't
Speaker 2: get to it right away. So I had five going
Speaker 2: on this street. I mean, I've built the last two
Speaker 2: streets in Brookline.
Speaker 1: But I don't know any other builder that would a
Speaker 1: client would wait that long Coorehouse.
Speaker 2: That's your point.
Speaker 4: And I think part of that's like write it in
Speaker 4: the book someday, like Cindy Stumpo doesn't get nervous when
Speaker 4: there's opportunities there. That's where you're making your living. That's
Speaker 4: that's a great I think a great accolade to have.
Speaker 2: No, it's it's teaching you guys. What I've already been
Speaker 2: through the pain, so you don't have to go through
Speaker 2: the pain. If I could just take my brain. And
Speaker 2: I know your generation uses the word mindset, it's not
Speaker 2: a word I use. I don't use the word mindset.
Speaker 2: It's just not a word I use. That's generational. Never
Speaker 2: heard that when I was growing up, and I still
Speaker 2: didn't hear It's I got into social audio and then
Speaker 2: social media, like, okay, mindset, I said, And what's the
Speaker 2: other word. I don't like?
Speaker 1: Manifest?
Speaker 2: Yeah, I don't manifest because if we can manifest, I
Speaker 2: want to be twenty five again, and I'm going to
Speaker 2: be five ten and I'm going to have I don't know,
Speaker 2: I'll look like whatever and I'll be the super duper
Speaker 2: model and I won't build. How's that? And then I'll
Speaker 2: beat you holders.
Speaker 1: Do you know that are sitting on product and you're not.
Speaker 2: Yeah, we're not sitting at any product.
Speaker 1: Everything is so how many builders do you know that
Speaker 1: pre cell houses? Not many? Not ten plus million known ones.
Speaker 4: No, that's a great point, though. Does your appetite change
Speaker 4: to be a little bit more like flexible with a
Speaker 4: pre sale buyer in a market like this where maybe there's.
Speaker 2: A little you know what, here's the difference for me
Speaker 2: and any other builder. I'm never greedy. I'm not saving
Speaker 2: your life. I can't remove a bleoblastome out of your brain.
Speaker 2: I can't cure your children of the worst cancers. I'm
Speaker 2: just a builder, developer. I don't think I'm missed a
Speaker 2: magic man. Okay, I don't think I'm God out there.
Speaker 2: So you always put deals together. Some deals make you
Speaker 2: short amounts, some are better profits, some are larger. But
Speaker 2: I don't look at one deal. You gotta look at
Speaker 2: your bottom line at the end of the year, right. So, yes,
Speaker 2: they are builders that are greedy and they think like
Speaker 2: they're God, and you know, then they go and they
Speaker 2: buy the Ferrari and the Lambo and Amelie and the
Speaker 2: ap And for three years prior to building, I was
Speaker 2: in the high end automobile industry with my ex husband,
Speaker 2: and I would see these buildings come in and say, hey, Joe,
Speaker 2: I want that Lambeau. Here's ten thousand. I got a
Speaker 2: closing in thirty days. This was before I became I
Speaker 2: was twenty. I'm like, they're already spending the money before
Speaker 2: they even go to the closing table. What idiots. Yeah,
Speaker 2: but that's the mindset. And I'll use the word and
Speaker 2: I hate it because I'm make everybody happy. But of
Speaker 2: the ego male builder the ego of a female builder,
Speaker 2: we don't really know because we don't have a lot
Speaker 2: to compare out there. My ego is no ego. I'm
Speaker 2: going to work to have helped my ex husband support
Speaker 2: our family. It was a big difference, not because I
Speaker 2: hadn't want to palm my chest. It was going to
Speaker 2: take two of us to give my kids life the
Speaker 2: lifestyle that I want them to have.
Speaker 4: We see exactly what you're talking about happen all the
Speaker 4: time from Hey, we've got like the flashy, hot new
Speaker 4: developer who's spending the money before they get it and
Speaker 4: then oh man, something doesn't work out and they don't
Speaker 4: get the number that they thought they were going to
Speaker 4: get buy or fell through and they're just committed to
Speaker 4: staying at that big number we have. We have to
Speaker 4: sell it at three million and then.
Speaker 2: Then get qush.
Speaker 4: They spend the money or they know it's there and
Speaker 4: then they don't get it.
Speaker 2: You know, a breakout is a win too right?
Speaker 4: What's that?
Speaker 2: You know what breakouts a wind too? Right? Breakout. Hold
Speaker 2: that I thought I'm sitting stumpy listening Toughest Nails on
Speaker 2: WBZ News Radio ten thirty. Will be right back and
Speaker 2: welcome back to Toughest Nails on WBZ. And I'm here
Speaker 2: with Sammy, I'm here with Luke, and I'm here with Mikey. Wow,
Speaker 2: you remember everybody's after being up till four o'clock in
Speaker 2: the morning with China, And again I'm on phones with
Speaker 2: different vendors over there. Not that we buy a lot
Speaker 2: of things for our homes. We buy other materials that
Speaker 2: we need to make, things like furniture and drapes and
Speaker 2: things that I do for my clients above and beyond
Speaker 2: my buildouts. Right, LUs, we got Cindy the Doll coming outs,
Speaker 2: you know, get the you know they got Bob the Builder.
Speaker 2: We got Cyndy the Builder coming out.
Speaker 4: Yes, yes, yes, yes, that's the real thing.
Speaker 2: Yes, yeah, really real thing. We get like signed, yes,
Speaker 2: absolutely amazing. She looks like me twenty years ago. Yeah,
Speaker 2: she's really kind of cute. I like her. She just
Speaker 2: when you pull the strings, she swears a lot, he yells.
Speaker 3: She video records the guy putting no longer.
Speaker 4: But who were you particularly yelling at in that string
Speaker 4: pol too, like there's got to be somebody.
Speaker 2: Well, did you watch my stories the other day all
Speaker 2: the time? Did you see me with the guys when
Speaker 2: they're flipping out in the truck because they can get
Speaker 2: the stone?
Speaker 1: My networking group is like, can we come hang out
Speaker 1: with your mom because she's a riot?
Speaker 2: Pulled up that job site and the test he was
Speaker 2: flying like you couldn't believe everybody's swearing. I'm like, oh,
Speaker 2: and the electricians going, I need you over here. You
Speaker 2: always need me for everybody needs me for two seconds, right,
Speaker 2: there's no two seconds. First of all, they ache a lot.
Speaker 2: I gotta walk right, so that's not two seconds number one.
Speaker 2: And then I hit them screaming in the truck. I'm like,
Speaker 2: what is going on? My son's laughing. He thinks it's
Speaker 2: a big joke, and it's like, what what the F? Guys?
Speaker 2: What the a F? And the guy My guys are right,
Speaker 2: like the stone was put in the back of the
Speaker 2: whole truck, so we had to put the lift and
Speaker 2: try to get it in. The stone is exterior stone,
Speaker 2: all Indian limestone, and they're all flipping out right and
Speaker 2: the you know inside guys, they don't want to come
Speaker 2: out and help the outside guys, right because they're not
Speaker 2: the biggest tougher. Rugged, like we got any more testy
Speaker 2: around here. We had like nine guys, right, and we
Speaker 2: had to pull the lift. In the end, I'm like,
Speaker 2: you know what you have, I'm right, and everything a
Speaker 2: lot of a lot off was going on, right, and
Speaker 2: I had to agree. And then I felt after the
Speaker 2: poor truck driver packed the truck up, right, I'm just
Speaker 2: the delivery dude. I'm like, I know, but I'm so sorry.
Speaker 2: Just whatever it was just but yeah, that but that's
Speaker 2: the stuff that goes on behind the scenes all day.
Speaker 2: So I try on my social media to give you
Speaker 2: the wheel crap, not the Okay, let's let's look at
Speaker 2: the pretty reveals and it just all of a sudden, Oh,
Speaker 2: this magical, beautiful bathroom use changes. Yeah, okay, like you know,
Speaker 2: let's say she TV and yeah, okay, that's not the
Speaker 2: real world anyways.
Speaker 4: Building houses is easy, right, Yeah, I'm going to.
Speaker 2: Drop that the hot tack on it. This amount of time,
Speaker 2: just amount of time before I go down, just at
Speaker 2: of time. But okay, so we were saying.
Speaker 3: What basically, if a guy is stuck in a project.
Speaker 3: Sometimes they go from the higher number. They're better off
Speaker 3: just getting out of the project.
Speaker 2: You have to you have to because what they all
Speaker 2: start to do. And this is what you all need
Speaker 2: to be careful, because I've seen it so many times.
Speaker 2: Here comes Cindy. She's got one sitting right now, I
Speaker 2: go and buy another deal, which is fine. Banks are
Speaker 2: still going to work with me. Now I got another
Speaker 2: second one sitting. But the problem is the second build out.
Speaker 2: I used a lot of this construction money to pay
Speaker 2: the interest on the first one. Okay, Now the bank
Speaker 2: extends me again for a third one. Now I get
Speaker 2: two sitting. Now I'm using construction money to pay the
Speaker 2: interest on the first one and the second one. Okay,
Speaker 2: finally the first one dumps off, we get rid of it. Boom,
Speaker 2: I get my money, I get okay. Now I'm okay.
Speaker 2: Now we're just sitting on one. I got the other
Speaker 2: one in the construction. They will keep doing that, and
Speaker 2: event actually that game will get them every time.
Speaker 1: But what I don't understand is they do that. But
Speaker 1: then I hear builders say all the time that they
Speaker 1: would rather not deal with the consumer and pre sell
Speaker 1: the house and not to me.
Speaker 2: Because you have the stress of either you have the
Speaker 2: stress of either waiting for the buyer or dealing with
Speaker 2: the buyer. My choice always been for thirty seven years,
Speaker 2: I will take the buyer and I will deal with
Speaker 2: the stress of the buyer because I can.
Speaker 1: But it makes you look good to somebody like them
Speaker 1: if they presold it and then keep wanting to lend
Speaker 1: to them. So why don't they want to do that?
Speaker 4: You can because they can't the money.
Speaker 1: But what I'm saying why there are a lot of
Speaker 1: builders that refuse to pre sell. You want to wait
Speaker 1: to complete.
Speaker 2: I disagree with that. I think a lot of that
Speaker 2: has to do with that. A builder doesn't know how
Speaker 2: to estimate. So if you really want to look at
Speaker 2: the bigger picture, he's afraid if he gets into a
Speaker 2: deal with you pre construction, he can't make those numbers.
Speaker 2: He's stuck in that number because these builders don't know
Speaker 2: how to estimate. The biggest part of a project is
Speaker 2: what sammy estimating. If you don't know how to estimate,
Speaker 2: the problem is since COVID we could estimate in a
Speaker 2: week later the numbers were changing. So I can honestly
Speaker 2: say I have not brought a project under budget. Since COVID,
Speaker 2: I'm over in every budget everyone I never was. I
Speaker 2: was always under budget. Everything I ever built was always
Speaker 2: under budget and looked like the hero. No, no, haven't it. No,
Speaker 2: can't do it because the price are changing on us
Speaker 2: daily out here, so it's impossible. You used to get
Speaker 2: a let of concretes going up in January. First you
Speaker 2: got this maybe in August. So now you get a
Speaker 2: let of concretes going up in a week. You know,
Speaker 2: that's just what it's been like. So again supplied to
Speaker 2: me and the whole nine yets.
Speaker 4: There's an interesting alignment though from what Sam was saying,
Speaker 4: like between the established, really successful developer, who will I
Speaker 4: think more frequently than not go to that pre sale
Speaker 4: listing because they're not afraid of of where they're putting
Speaker 4: that number at. They've estimated close enough, or they know
Speaker 4: where their cost is and they can put it up
Speaker 4: there in that pre sale versus the last experienced waiting
Speaker 4: to get onto the market to see like okay, like
Speaker 4: I can't really you know, lower my price or sorry,
Speaker 4: I can't raise my price once I'm setting it there.
Speaker 4: Uh So it's a lot easier to go the other direction.
Speaker 4: So if these guys are putting it out early, they
Speaker 4: feel like maybe they're leaving money on the table if
Speaker 4: they're not super.
Speaker 2: Again, if you're there to get rich off of one sale,
Speaker 2: get out of the business right now, okay, especially here,
Speaker 2: especially anywhere. If you're in it for the one time too.
Speaker 2: If you're here to build a business and again, and
Speaker 2: you guys want to build these brands, it's called building
Speaker 2: a business. Your parents and grandparents build businesses, okay, or
Speaker 2: they work for somebody and when they put their time in.
Speaker 2: If you had told my grandfather he was building a brand.
Speaker 2: So I'm never going to talk that way either. I
Speaker 2: set out to be a really good business woman. What
Speaker 2: does that mean? You take care of your clients, No
Speaker 2: tail light warranties when you call with the not when
Speaker 2: you don't see my tail light anymore, and we take
Speaker 2: your money at a closing table and you don't see
Speaker 2: us again. This company ce Stumple Development. I can sit
Speaker 2: here proudly and say we have never been sued by
Speaker 2: an end user, a subcontractor, or a vendor in all
Speaker 2: these decades.
Speaker 1: Into one of your houses. They forget what it was
Speaker 1: like to live anywhere else. Because they don't do anything
Speaker 1: in their house. They call us to do it all.
Speaker 4: And anybody else say that that you can think.
Speaker 3: Of everybody has a loss.
Speaker 2: Nobody can say that. Nobody can say that. But that's working. Literally,
Speaker 2: your phone is never off. I get clients that call
Speaker 2: me that will literally say to me, I can't turn
Speaker 2: my clicker on. I'm like my shower on. No, because
Speaker 2: they're going through these smarts they put these smart homes in. Right,
Speaker 2: have you tried changing the batteries? I don't think it's
Speaker 2: a battery. I'm coming over the battery. If this battery works,
Speaker 2: I'm going to beat you up. Right, change the battery,
Speaker 2: and then we'll say to me, I knew it's the battery,
Speaker 2: but I just wanted you to come over so I
Speaker 2: could see your face and want to go have a
Speaker 2: cigarette together. I'm like, but it just called me and
Speaker 2: asked me if I wanted to come over.
Speaker 1: The best has always had to lock the Pella doors.
Speaker 1: They're like, I don't know how to do this. I'm like,
Speaker 1: you turn and then you lock.
Speaker 2: The bolt.
Speaker 1: You have to pull the handle up on that.
Speaker 2: We teach them at all the time.
Speaker 4: So to put a bow on it, today's craziness going
Speaker 4: on in market doesn't impact your willingness to work with
Speaker 4: a pre sale buyer. You've always done it, and you'll
Speaker 4: always do it.
Speaker 2: I'll always work with a priest. I don't care. And again,
Speaker 2: I have built some of the best relationships in my
Speaker 2: career by becoming pre selling those homes. And Samuel tell
Speaker 2: Ray when he first started to dating, it was the
Speaker 2: first like summer after that winter, I go, we have
Speaker 2: to I have five parties I have to hit tonight
Speaker 2: and goes, we're hitting five parties and then I go, yes,
Speaker 2: he said, who's are they go? They're all my clients.
Speaker 2: We're gonna hit five parties tonight in the matter of
Speaker 2: this time. That yeah, I can't show up to one
Speaker 2: and not the others. Well, how do we do this?
Speaker 2: We're just going to keep moving an hour thirty minutes.
Speaker 2: If I don't show up at a and I show
Speaker 2: up to yours, but I don't show up to your party,
Speaker 2: well why were you there? That's why I stopped going
Speaker 2: to games with back in the day. When in my thirties,
Speaker 2: I stopped going to games because I would go with
Speaker 2: one wife, one Celtic's wife, or one red SOX wife
Speaker 2: and then the otherwise were like, why did you go
Speaker 2: with her? So I just don't go. I don't exports anyways.
Speaker 2: But everyone's while I feel bad for the new wife
Speaker 2: they came in has no friends yet on the team,
Speaker 2: and I'd go, that was a bad move, right, So
Speaker 2: now you're pissed on. But it's I have built incredible friendships,
Speaker 2: insane incredible friendships with every one of my clients, but
Speaker 2: some of them just you know, we just look, I
Speaker 2: live next door literally to I don't know, seven neighbors.
Speaker 2: Like it's ridiculous, Like K lives next door to seven
Speaker 2: of their.
Speaker 1: Neighbors, seven of their clients. About you bill houses.
Speaker 2: Seven clients that I bill for, thank you? Right, not
Speaker 2: just neighbors, but you know what I'm talking about, And
Speaker 2: they don't complain to me. And we're all sitting at
Speaker 2: a gas fire pit in the summertime. Pay you with
Speaker 2: one thousand percent thousand percent. But that's the stuff that
Speaker 2: you guys need to take you as you're lending. You
Speaker 2: need to know who your builder is, what's his personality,
Speaker 2: what's her personality? And are they they groove with the
Speaker 2: Sidney stumble brain or they groove with a brain that
Speaker 2: you are not aligning with right all that I thought,
Speaker 2: I'm Sidney Stumble going to break this WBZ News Radio
Speaker 2: ten thirty. Welcome back to Toughest Nails on WBZ News
Speaker 2: Radio ten thirty. And I'm Cindy with Sammy and we're
Speaker 2: here with Luke and Mikey. V had just run into
Speaker 2: a studio kiss went away and jump out real fast,
Speaker 2: and in his places you.
Speaker 4: Got Josh Cohen. I'm the co founder and one of
Speaker 4: the partners here at H one H tw.
Speaker 2: Okay, Josh, nice to meet you for having us. I'm
Speaker 2: glad you ran in and gave us your last fifteen
Speaker 2: minutes of the evening.
Speaker 1: He's coming apro He just made him move closer like
Speaker 1: Mikey did to him the first.
Speaker 2: See, Luke, now you're doing Mikey does. See how you
Speaker 2: learn fastspital life. Right. So let me ask you guys
Speaker 2: a question. Your lenders. We don't like to use the
Speaker 2: word hard money lenders when it comes to you guys, right,
Speaker 2: you can use that. We're not Josh, you like, what's
Speaker 2: what do you like? I like?
Speaker 4: Private lenders? You know?
Speaker 3: We okay take that seriously and we're not just you know,
Speaker 3: uncle Johnny with.
Speaker 2: A bag of cash, Okay, and that would be Uncle Vinnie. Sure,
Speaker 2: that would be actually no thumbs Vinnie. Yeah, okay, But
Speaker 2: so I like that private lending sounds better, right, let's
Speaker 2: change that to private lending when we talk, it's much
Speaker 2: more classic. Okay, okay, had my lending. We just think
Speaker 2: of guys getting their legs broken when they don't pay
Speaker 2: on the streets. Right, It's just how it was back then.
Speaker 2: But so, what is what's going on with your philosophy
Speaker 2: in your business right now? With what's going on changing
Speaker 2: up a little bit, staying course the way you stay
Speaker 2: in course.
Speaker 4: Yeah, So we touched on a little bit earlier. But
Speaker 4: for us, it's just that diversification of what we're lending on.
Speaker 4: So knowing that we have these different changes going on
Speaker 4: in the market, not having too much exposure in one
Speaker 4: basket compared to another. Hey, we don't want ninety percent
Speaker 4: of our fund to be invested in high end luxury
Speaker 4: and we don't want ninety percent of it to be
Speaker 4: invested in apartments in Springfield. We want to have a
Speaker 4: good balance between what our products are going and also
Speaker 4: where they're going in the country. Is we do some
Speaker 4: stuff in other states and other regions of the US
Speaker 4: where those areas might get impacted differently than you know,
Speaker 4: the greater Boston market is a lot different than Jacksonville,
Speaker 4: Florida when economies start to change. So knowing what our
Speaker 4: exposures are in certain areas has become much more paramount
Speaker 4: in every loan that we underwrite. Hey, are we cross
Speaker 4: checking that in you know what region? Is just going
Speaker 4: into what you know, subcategory of houses. This is a
Speaker 4: luxury is at entry level? Is it? You know, crazy?
Speaker 4: You know dream home stuff that you're building, Like, where
Speaker 4: are we going? We don't do a ton of the
Speaker 4: stuff that you guys do, as you know, our money's
Speaker 4: too expensive.
Speaker 2: No, I you might too expensive, and I might eat
Speaker 2: your portfolio pretty goddamn fast too.
Speaker 4: Yeah, you'd be a big part of it. Pretty cool.
Speaker 2: And then now the eggs are in all in one basket, right,
Speaker 2: and that's not good for you guys.
Speaker 4: Yeah, So that's that's part. I think that's the biggest
Speaker 4: additional attention that we're putting on just to our regular
Speaker 4: practices is being really diligent on making sure we're not
Speaker 4: too much in one space.
Speaker 2: So where the market gets like this is it harder
Speaker 2: to raise Like raising money was very simple when people
Speaker 2: are getting zero zero point two five percent in the bank, right,
Speaker 2: and then interest rates went up. People making money in
Speaker 2: their banks.
Speaker 1: In their head, no one's talking.
Speaker 2: What's that.
Speaker 1: Everyone's shaking their head on radio. No one's talking.
Speaker 2: They're shaking. Okay, that's all right, you can shake your head.
Speaker 2: So they're shaking their heads in the studio. Thank you,
Speaker 2: Samith the STUMPO. So you can say yes, yes, yes, okay.
Speaker 2: But my question is when everybody's getting nothing on their money,
Speaker 2: they'll give their money because they need to make money, right,
Speaker 2: You got to live up interest. You got a little money, right, Yeah.
Speaker 4: So the phone rings a lot during times like this
Speaker 4: where oh man, the S and P is not doing
Speaker 4: so great. Oh man, you know I'm not getting what
Speaker 4: I need out of my regular depositories or might my
Speaker 4: low risk investment stuff. People are saying this, I'd rather
Speaker 4: put it into a different asset insert.
Speaker 2: So raising money for funds right now is easier the
Speaker 2: same or.
Speaker 4: Harder, significantly easier.
Speaker 2: So what will they do. They'll take loss in the
Speaker 2: S and P five hundred and put in or they're
Speaker 2: just using other money.
Speaker 4: I think Most of the investors that we talk to
Speaker 4: look at the stability of real estate especially, and you
Speaker 4: can break it down geographically and say, hey, if we're
Speaker 4: doing projects in this area, and we've got this data
Speaker 4: that tells you, you know, even in the worst of times,
Speaker 4: this is what the exposure is. And with a senior
Speaker 4: debt position on these projects there, you know, there's no
Speaker 4: just thing as a risk free investment. But there's a
Speaker 4: lot more security in the stability of knowing, hey, I
Speaker 4: can put my money and get this return in real
Speaker 4: estate versus rolling the dice and who knows what you're
Speaker 4: going to see on the ticker on your phone every
Speaker 4: two seconds in the most recent couple of days.
Speaker 2: So raising money can be easy right now. Yep, that's
Speaker 2: a good thing for your fun, right definitely, really good thing. Yeah, okay,
Speaker 2: And in our business, there is never enough money. You
Speaker 2: understand that we never have enough money. It's just one
Speaker 2: of those businesses that you just need more money, more money,
Speaker 2: more money. That's saying more money, more money, because the
Speaker 2: more money you have, the more money you can make
Speaker 2: by lending it out.
Speaker 4: Yeah, but there's a catch to that too, So we're
Speaker 4: actually not answering a lot of the calls that we're
Speaker 4: getting right now because there's only so much we want
Speaker 4: to deploy in a certain amount of times. So if
Speaker 4: we go and take on, you know, if you and
Speaker 4: all your friends call us tomorrow and said, hey, Luke
Speaker 4: and Josh, we've got one hundred million dollars we want
Speaker 4: to write and.
Speaker 2: Get off the you know, I don't have a place
Speaker 2: to put it.
Speaker 4: Well, if I take it now, I'm saying yes to e. Okay,
Speaker 4: maybe I'm getting my tolerances have to expand because I'll
Speaker 4: be sitting on the money if I don't. And if
Speaker 4: I'm telling you I'm taking your money, then you're going
Speaker 4: to expect a return from it as soon as you
Speaker 4: send it to me. It's costing me money every day.
Speaker 2: But that's not actually true. I mean, you do set
Speaker 2: these funds up where you say, look at you're gonna depart,
Speaker 2: or you set the fund that look when we're ready.
Speaker 2: You're saying, okay, Cindya, I'm gonna put a half a
Speaker 2: million dollars into your fun and we want you to
Speaker 2: wire at the minute. We know that, but we need
Speaker 2: you committed. Are you commit one way to do We've
Speaker 2: done it and this way you're not paying any interest.
Speaker 4: Yeah, the covinar call is always the most attractive version
Speaker 4: for us, where we can say, hey, I want you
Speaker 4: to commit to this number and you have forty eight
Speaker 4: hours to get it to me when I tell you
Speaker 4: I need it, and we'll do all the paperwork. And
Speaker 4: maybe that's one way to set it up. The more
Speaker 4: attractive check sizes that we will go after for some
Speaker 4: of these call it like institutional level or kind of
Speaker 4: maybe like mid grade, you know, family office back type
Speaker 4: of dollars. They want to write you a check upfront
Speaker 4: right away for a minimum deployment, and then they want
Speaker 4: to say, okay, every month we're going to tack on
Speaker 4: X amount, or they want to schedule. So when you're
Speaker 4: going after these bigger dollar sizes, a lot of these
Speaker 4: folks are looking for that really solidified commitment to getting
Speaker 4: that money off because that's their job. If you're talking
Speaker 4: to a family office, that's a guy at an office
Speaker 4: that's managing wealth and they say, hey, thirty percent of
Speaker 4: this family's wealth has to go into real estate, and
Speaker 4: they just got a bunch of stuff back last month.
Speaker 4: They're sitting on twenty million dollars. He's got forty five
Speaker 4: days to get twenty million dollars off his plate. So
Speaker 4: that's give and take. Okay, hey, I can take that,
Speaker 4: but you're going to have to give it to me
Speaker 4: for less out of the gate, and then I'll play
Speaker 4: catch up. And there's there's a lot of risk and
Speaker 4: management of how those you know funds get deployed in
Speaker 4: what it is.
Speaker 2: And look, you is your business brain again, I'll use
Speaker 2: brain and mindset to make every happy, but is your
Speaker 2: business brain? Want to grow that fund every year? You
Speaker 2: want growth? Right?
Speaker 4: Sustainable growthough, I just I don't want to take on
Speaker 4: more than we can choose. That's why I'm saying, well,
Speaker 4: it's great when the capital calls get easier, it's better
Speaker 4: for me. Or I can go to our existing structures
Speaker 4: that work really, really well. We have phenomenal partners right
Speaker 4: now that we work with and say, hey, you know,
Speaker 4: look at the inbox and I'll forward am emails or
Speaker 4: all forum you know conversations I'm having. I got guys
Speaker 4: offering us money for dirt cheap compared to what you
Speaker 4: know we're paying out a return for you, So can
Speaker 4: you work with me on this next? You know two
Speaker 4: months worth of deal flow, so I don't have to
Speaker 4: consider shopping anywhere else. I want to stay where I'm mount.
Speaker 4: We like what we've got going on, you know, Can
Speaker 4: we negotiate some so.
Speaker 2: You have no problem having the same brain that I had.
Speaker 2: I was a turtle. Do you know what the turtle is?
Speaker 4: No teach me?
Speaker 2: So okay, here's the hill right. No one can see
Speaker 2: me do this. I'm holding a piece of paper. This
Speaker 2: I climb. My whole career, I couldn't look like an
Speaker 2: EKG machine like this. Builders looked like an EKG machine five, six,
Speaker 2: seven years. They got homes in the Attucket, they got
Speaker 2: homes in Newton Brookline. They're buying their fancy watches, their boats,
Speaker 2: and then both they're bankrupt and they got nothing, and
Speaker 2: then back up seven years later after they cleaned up
Speaker 2: their credit, back up and running again, making the same
Speaker 2: mistake over and over again. And I watched it for decades.
Speaker 2: They come back out five to seven years later and
Speaker 2: they do it the same way again. It's like they
Speaker 2: don't learn from their mistakes. But me, you and I
Speaker 2: learned from your mistakes and say I don't want to
Speaker 2: do it. You did because you fail. So you were
Speaker 2: riding high at one point, But what's the sense of
Speaker 2: riding high and then five years later you're bankrupt and
Speaker 2: you're moving your kids out of the home and you're
Speaker 2: renting something and now you've destroyed your family, and then
Speaker 2: you're riding back up again, you know, five years later.
Speaker 2: But what if your kids are at that age where
Speaker 2: it's that age from ten to fifteen, which's really important ages. Right,
Speaker 2: there's certain ages of your children that they need all
Speaker 2: that stability in the world, and that's you know, you
Speaker 2: can move around, you can do that. Then they get
Speaker 2: to about eight or nine, ten years old and net
Speaker 2: ten to like seventeen, they got to be settled. Those like,
Speaker 2: to me, the most important years, right that it's realized,
Speaker 2: like you go a with about them their friends of this,
Speaker 2: and that I've watched so many builders go up and down.
Speaker 2: I like the way you're talking. I've done everything the turtle. Now.
Speaker 2: Of course there were guys that were absolutely making so
Speaker 2: much more money than me, but then they're broke. So
Speaker 2: yes you had the run, Yes you made more money,
Speaker 2: but then you're rupt. I don't want to live that way.
Speaker 4: We have a saying that I picked up from a
Speaker 4: previous boss of mine and mentor who's a ton of
Speaker 4: respect for. It's never too high and never too low,
Speaker 4: and we always are trying to stay that steady, slow
Speaker 4: up into the right path. And then this same guy
Speaker 4: gave us another one that just absolutely killed me. When
Speaker 4: I heard it was, hey, you know at that point
Speaker 4: where this fund was really growing and we were taking off,
Speaker 4: it was, hey, you know, we're really happy with where
Speaker 4: we are now, but what got us here isn't going
Speaker 4: to get us where we're going. And I hated that.
Speaker 2: Well, that thought I was going to break. I'm Sindy Snupoint.
Speaker 2: You listen at Toughest Nails and WBZ and welcome back
Speaker 2: to Toughest Nails on WBZ News Radio Tentor and No,
Speaker 2: I'm Cindy, and I'm here with Sammy, and I'm here
Speaker 2: with Luke, and I'm here with Josh. Okay, let me
Speaker 2: ask you a question. People that need to borrow right now,
Speaker 2: people that want to build, pick some flip to ground
Speaker 2: up building you do, right?
Speaker 4: Yeah?
Speaker 2: Okay, all right? How they reach you?
Speaker 4: They can get us if you're on Instagram H one
Speaker 4: H two capital. If you want to go to me directly,
Speaker 4: that's Luke Hanscomb and the website H one h T
Speaker 4: capital dot com is all going to drive you right back.
Speaker 2: Say that really slowly, like when you call my phone,
Speaker 2: Say your number slowly because I really hate when I
Speaker 2: have to listen to it four times.
Speaker 4: H one H one h twocapital dot com bingo or
Speaker 4: at H one h two capital on Instagram.
Speaker 2: Okay, thank you, Luke, thank you, Josh, Sammy. Once again,
Speaker 2: I love you everybody. Have a great, safe weekend and
Speaker 2: we'll see you next week. This is Cindy Stumbo tough
Speaker 2: his nails on WBZ