Episode Transcript
[00:00:00] Speaker A: All right, Dylan, appreciate your time coming over here. We're at the. I can't ever say it right. The stinking OHCE conference. You know, getting ready for all the RV park exhibitors. So tell us what you do, you know, kind of who you are and how you help other RV park owners and guests.
[00:00:16] Speaker B: Yeah, for sure. So we're Campfire Capital Group, based out of Greenville, South Carolina. We're kind of unique. We do two things really well.
Number one, we help sellers sell their campground.
[00:00:26] Speaker A: So we're.
[00:00:27] Speaker B: We're, you know, outdoor hospitality investment brokers.
So we do that, and then on the second piece, we're owners ourselves. So the second arm of our company is actually investment.
So we raise capital from investors.
[00:00:39] Speaker A: Mom and pop keep the sweet deals.
[00:00:41] Speaker B: I wouldn't say that. But we buy our own deals, for sure.
And so we kind of have experience. We say, you know, being brokers makes us better owners, and being owners makes us better brokers.
[00:00:51] Speaker A: I like it. I like it.
[00:00:52] Speaker B: But yeah, yeah.
[00:00:53] Speaker A: Because brokers, you're seeing. You're seeing all. You're doing a lot of analysis. You're seeing a lot of deals, and as owners, you're experiencing a lot of the problems and.
[00:01:00] Speaker B: Precisely. Precisely.
[00:01:02] Speaker A: And the evictions and the fun stuff and the cities changing and, you know, whatever. It's always something.
[00:01:07] Speaker B: Absolutely, Absolutely.
[00:01:09] Speaker A: So that's great. So do you guys nationwide or try staying Southeast or.
[00:01:12] Speaker B: So I would say east of the Mississippi for the time being, Primarily south, Southeast focused. But east of Mississippi, we've. We've began to expand beyond just the Southeast, so we're doing stuff a little bit further north now.
[00:01:27] Speaker A: I think the Carolinas and Tennessee are great.
[00:01:28] Speaker B: Absolutely.
[00:01:29] Speaker A: I don't see enough RV parks and a little bit of driving we've done in Kentucky, but Tennessee, North Carolina, you know, parts of Georgia, of course, but I really like Carolinas. I'm a Texas guy. I don't know a lot about it, you know?
[00:01:40] Speaker B: No kidding.
[00:01:40] Speaker A: From there.
I was born in California and then military family, moved a little bit and went to high school and living in Fort Worth, Texas.
[00:01:47] Speaker B: Okay, excellent. I'm originally from Virginia.
[00:01:50] Speaker A: Okay.
[00:01:50] Speaker B: But spent a ton of time, obviously, all up and down the east coast or Southeast, primarily.
[00:01:55] Speaker A: But I grew up in Dale City in Fredericksburg as a kid for a few years.
[00:01:58] Speaker B: Small world.
[00:01:59] Speaker A: Small world.
[00:02:00] Speaker B: Yeah. That's neat.
[00:02:00] Speaker A: Well, I was in Fredericksburg when the DC Sniper was at.
[00:02:02] Speaker B: No kidding. Okay. That was. That was scary. Yeah, that was definitely scary.
[00:02:06] Speaker A: Yeah. But, yeah, you get out of third grade, you take your ass.
[00:02:09] Speaker B: Okay. I bet. Yeah. So we're southwest Virginia natives. So like Christiansburg, Blacksburg area. Okay. But my brother in law actually lives in Annandale, like Fairfax County, Northern Virginia. And I have a lot of college teammates and whatnot all over. But. But yeah. So there's a ton of beautiful land like country in, you know, Virginia, Carolina, four seasons. Kentucky, all of it.
[00:02:31] Speaker A: Yeah.
[00:02:31] Speaker B: You get to experience all four. Four seasons.
[00:02:33] Speaker A: Texas is hot till Halloween forever. Right.
[00:02:37] Speaker B: And you can have year round like camping.
[00:02:39] Speaker A: Yeah. You know, you get a little bit farther north. That's the.
[00:02:42] Speaker B: Yeah, it's over. Yeah. You're done six months. Yeah, you're done six months. And I don't know how folks in
[00:02:46] Speaker A: the Midwest and north do that.
[00:02:47] Speaker B: Agree.
[00:02:47] Speaker A: Parks like my rv, the little piece behind the toilet will pop if I don't put a heater on when it freezes. 25 degrees outside.
[00:02:54] Speaker B: That's it. That's exactly.
[00:02:55] Speaker A: You know what I mean? So. So if it's negative 10.
[00:02:57] Speaker B: Yeah. How do you, Maddie, make it function?
[00:02:58] Speaker A: I don't know how to do that.
[00:02:59] Speaker B: There's a lot of those, the stuff in the Northeast though, like some of them take advantage of the winter and then they, they basically just cater to like snowmobilers.
[00:03:06] Speaker A: Yeah.
[00:03:06] Speaker B: And you know, outdoor enthusiasts that. From that way. But yeah, I would much prefer full year round camping ability.
[00:03:13] Speaker A: Yes.
[00:03:13] Speaker B: With less cold.
[00:03:15] Speaker A: Yes.
[00:03:15] Speaker B: Yeah.
[00:03:15] Speaker A: Yeah.
[00:03:16] Speaker B: I'm right there with you now. That's excellent. That's excellent.
[00:03:18] Speaker A: That's awesome. So you guys like actively looking to buy more or do you kind of just have a go on like a few a year or.
[00:03:25] Speaker B: Pretty aggressive or so right now we're always looking. Always looking.
[00:03:29] Speaker A: Yeah, sure.
[00:03:30] Speaker B: But we'd love to add, you know, one to two a year for the foreseeable future until, you know, if we had like an unlimited checkbook, then obviously we'd ramp that up quite a bit.
But until we find that unlimited checkbook.
[00:03:43] Speaker A: Yeah.
[00:03:44] Speaker B: We'll grow gradually, scale at a normal pace and then you know, aggregate a portfolio over time. But looking to sell a lot more than purchase at the moment.
[00:03:55] Speaker A: Sure, sure.
Yeah. And that way you're just keeping up with industry. You're seeing the changes, you're seeing what they're going for. You just, you're involved in it, you're in it multiple levels. I like that because me, we build them and we manage them and I have four of my own, so I'm trying to build my portfolio.
[00:04:09] Speaker B: That's excellent. Okay.
[00:04:10] Speaker A: So. So I'm seeing it from other sides.
[00:04:12] Speaker B: Yeah, no kidding.
[00:04:13] Speaker A: Because when I tell people in the construction like, hey, you're not just getting a construction contractor because we freaking run run too. We see them both sides.
[00:04:18] Speaker B: Yeah, you're getting both angles which multiple sets. Exactly. Now that's killer. So you're doing, obviously you're, you're developing them out and then you manage them your own and then obviously do that for others. Yes. Okay.
[00:04:30] Speaker A: Yeah. So I got started by building my first two mid sized ones and then acquired two and so it seemed and we, you know, came up with a construction company from it. My two brothers have a background in grading and underground utilities, which is 90 of that. And I'm the business guy.
[00:04:43] Speaker B: Yeah, yeah.
[00:04:44] Speaker A: I'm getting better at being on the skid steer now, but for sure. But I'm on the phone dishes. I ain't scared.
[00:04:51] Speaker B: That's excellent.
[00:04:52] Speaker A: But yeah, so we're on full on construction on that side. But so the natural progression was like, all right, I got force and like, let's be contractors for other people. And then you. That's why I'm doing this podcast. Just try to talk to more folks like you. Yeah, just getting it stinking in.
[00:05:04] Speaker B: No, that's killer. What, what was it like going from developing two to buying two that were existing, knowing what you knew from the development side seeing like, okay, yeah, I don't know about this.
[00:05:15] Speaker A: Yeah, well, well, the one that we bought, it was a little 10 site park in west Texas and then right across street was an extra lot. So we just immediately added six sites, added some basic marketing sales items. That seems like a win because I had owner financing. This old man was like 83 years old and he's like, give me $100,000 and I'm going to retire. I'm like, you don't want more than that. He's like, just give me 100,000. I'm like, I drove out there the next day and you know, he could cash everything. So it was a little bit of a judgment call, but him and his son end up doing owner financing. So I'm like, let's just do it. Yeah. So we got a hard money loan for 150 and then built the other six sites. And then later we had, there was extra lot and we built a cabin because I saw that rentals were, were tough. A shipping container cabin or one bedroom for get 7:50.
[00:05:57] Speaker B: That's killer. No kidding.
[00:05:59] Speaker A: So, so the answer your question.
I don't know because you just, you just, you just see it differently now. You have some experience and you like have these pain points on Whether it's dealing with the city, you know, like some cities, they'll like to do some handshake deals with your buying a park, you know, like, well, what's the answer to this?
[00:06:14] Speaker B: Yeah. What's the actual answer that I can get on paper?
[00:06:17] Speaker A: Yeah.
[00:06:17] Speaker B: I can revert back.
[00:06:18] Speaker A: Cities and counties, like, they like to play some games.
[00:06:20] Speaker B: Absolutely.
[00:06:20] Speaker A: I was looking at a park in East Texas, and they have a rule that a unit has to be more than 800 square feet because there were some guys build them, like, out of like, garages or something. And I'm like, well, my whole plan is to put tiny homes here. They're 399 square feet, but they're nice. And he was like, well, just tell me their RVs and I'll prove it.
[00:06:37] Speaker B: I'm like, I don't know about.
[00:06:38] Speaker A: Yeah, come on, dude.
[00:06:39] Speaker B: I don't know how that's going to fly.
[00:06:41] Speaker A: Is that going to go through on city council? Yeah.
[00:06:43] Speaker B: Yep, yep. Now we've seen some of that. We've, like municipalities saying one thing and then walking it back a couple months later, whatever. And it's like, yeah, you got to
[00:06:51] Speaker A: be careful in your due diligence.
[00:06:53] Speaker B: Oh, for sure.
[00:06:53] Speaker A: Because that changes your whole strategy and it just could kill a deal.
[00:06:56] Speaker B: Absolutely, absolutely. So that's. No, that's interesting. What do you do from a management perspective, like, company wise?
Like, is that your all's primary focus? Like, obviously we're. We want to continue to scale much like you.
But of the two business. Business, like Eunice that you have, which one's your primary focus or is it both?
[00:07:19] Speaker A: I think it's just RV park focus, because I know it's great just to be linear, focused on like one certain thing. That's not what everybody tells you. But for me, it's just RV parks. I know that. We love building them. It's a family business. My two brothers, my nephew, when he's not playing football, comes the weekend. My other nephew's 19, works for me. My buddy's the electrician, you know, like, so it's like a family business that we're all trying to. I don't have them grow with me.
[00:07:41] Speaker B: Yeah.
[00:07:41] Speaker A: So on that side. And then the management is just. I just love RV parks. Like, just being able to talk to somebody and say, you know, I would love to 2 years be able to sell this thing.
[00:07:49] Speaker B: Yeah.
[00:07:49] Speaker A: I can't even get anywhere near for right now. I'm like, okay, let's come up with an action plan. What are you doing? What can we do? To help, like just dig into it. Like, have you tried this? Have you tried working with the chamber of commerce and then these fall events come in. Do you figure out a strategic partnership with them? Like so to me, it's exciting. So to answer your question, both.
[00:08:05] Speaker B: Yeah.
[00:08:05] Speaker A: You know, because. Because if I know I'm doing that, I know I'm on my correct path and then I'm gonna be able to build my portfolio as well. Yep. And just have things in property that I'm proud of.
[00:08:15] Speaker B: Yes, absolutely. That makes sense. That makes sense.
[00:08:17] Speaker A: It's a little spread out, but I don't, I work a lot, so I don't care.
[00:08:21] Speaker B: That's how it is. That's how it has to be at some point, right? Yeah, yeah, I get that.
[00:08:25] Speaker A: Yeah. I think, I think I was going to ask you some capital questions because I think it's really cool.
I just learned this a couple years ago about, you know, private equity. They want to see something that's like say six to eight parks that are run similarly and you know, you'll get a better 6 or 7 cap rate versus 9 or 10 to the, to the public. So that's definitely a strategy. Is like, hey, how do I, you know, build my portfolio to where for sure. You know what I mean?
[00:08:49] Speaker B: I will also say I think that is more an idyllic thing. Like everyone thinks I'm going to develop a portfolio of 8 to 10, to 12 to 15, whatever it is, and then I'm going to sell it at a compressed cap rate.
[00:09:03] Speaker A: Yeah.
[00:09:04] Speaker B: We haven't really seen that pan out.
[00:09:06] Speaker A: No.
[00:09:06] Speaker B: To a tee.
[00:09:07] Speaker A: Yeah. So it sounds cute.
[00:09:09] Speaker B: It sounds great, right? It sounds great. I'm gonna buy all this stuff at 9 and 10, sell it for 7. That's. Everyone wants to do that.
[00:09:15] Speaker A: Yeah.
[00:09:16] Speaker B: I truly think even though we've have communication with some of the biggest fish in the industry, we've not seen them pay 7 caps.
[00:09:23] Speaker A: Okay. Like especially this market. Yeah.
[00:09:26] Speaker B: Like especially right now. So it's like now will that change?
[00:09:31] Speaker A: Possibly.
[00:09:32] Speaker B: And there's definitely like a portfolio premium that you could stack on, especially if you have well performing assets. But another thing we've seen like the guys that aggregate larger portfolios, they have not yet had like, you know, they have 12 assets in there. It's not like all 12 are, you know, top tier properties. It's like I got three dogs in
[00:09:52] Speaker A: here, A couple that we be nice. We have to deal with this one again.
[00:09:56] Speaker B: Yeah. So it's like we haven't seen a portfolio that was just like, oh, Every single asset in this is performing at the level that everyone expected it to.
To where like you know, a private equity firm would say, yes, we need it.
[00:10:07] Speaker A: Yeah.
[00:10:07] Speaker B: So now that's not to say someone could not put that together.
[00:10:10] Speaker A: Sure.
[00:10:11] Speaker B: But we have not seen it. I think 7 caps are still a reach.
[00:10:15] Speaker A: Yeah.
[00:10:16] Speaker B: Even for.
[00:10:16] Speaker A: Yeah. Especially the interest rates and the cost of the debt. You know.
[00:10:19] Speaker B: Absolutely.
[00:10:20] Speaker A: It's got to cancel out.
[00:10:21] Speaker B: Yeah. How do you, how do you make it work? And I, it's tough right now and we've seen like there's a large one of the big fish, relatively newer player in the industry as of like 2021.
They grew really quickly. They aggregated a nice size portfolio. They brought it to market. I don't. They. I know for a fact they did not get what they thought they were going to get for that.
[00:10:41] Speaker A: Right.
[00:10:42] Speaker B: And it didn't, it hasn't moved. Like it hasn't actually transacted yet.
[00:10:46] Speaker A: Right.
[00:10:47] Speaker B: So I think it's everyone. It sounds great. Like yeah, we're going to, going to get 15 properties and then we're going to sell it for 7 cap. But I don't think in actuality it's functioning that way.
[00:10:57] Speaker A: Well, the, the other side of that is I'm 38, so I could just keep them for a while. Precisely.
[00:11:01] Speaker B: And there's nothing wrong with that either.
[00:11:02] Speaker A: Right.
[00:11:02] Speaker B: So we sell everything. Everyone's like are, you know, you a buying old guy. You fix and flipper. Like you just, you know, coming to take it over and do whatever. Like I want the option to sell.
[00:11:13] Speaker A: Yeah.
[00:11:14] Speaker B: But not the mandate to sell. Like I'm. My long term goal is to have legacy, create like have assets that cash flow, create wealth and then be able to keep them as legacy properties.
[00:11:25] Speaker A: Yeah.
[00:11:25] Speaker B: But have the ability to refinance and take some cash.
[00:11:29] Speaker A: It's real.
[00:11:29] Speaker B: Exactly.
[00:11:30] Speaker A: Asset class. So if you're. Most people know of single family homes, you got a portfolio of 20 or 40 houses. You have to constantly be trimming the fat.
[00:11:37] Speaker B: Yep.
[00:11:38] Speaker A: You know, focusing on the successes and.
[00:11:40] Speaker B: Precisely. You got to be cycling through. Exactly.
[00:11:43] Speaker A: Parks aren't different. There's just a little bit bigger scale.
[00:11:44] Speaker B: But generally same concept. Yeah.
[00:11:47] Speaker A: One of our parks is only 100. I think a bank's going to appraise it for 450. My little success story on that one.
[00:11:53] Speaker B: But that's killer.
[00:11:53] Speaker A: But still it's.
[00:11:54] Speaker B: That's killer. That's, that's a real estate play.
[00:11:56] Speaker A: Right.
[00:11:56] Speaker B: Like that's, that's success.
And then it just scales up. You know. The larger the property, the. That goes from a million to.
Wonderful.
[00:12:05] Speaker A: Let's do that again.
[00:12:06] Speaker B: Yeah, absolutely.
[00:12:07] Speaker A: So you guys southeast kind of focus. Do you have like a certain buy box or is because like people ask me what's your buy box? I'm like dude, I bought that one for 100.
But you know, I, I would get involved in one that's worth a few million. Like, you know, I probably wouldn't go much over 5 unless I had some different partners or something. But.
[00:12:23] Speaker B: Yep. So we, we don't have necessarily like a buy box that we would say we're married to, but we have loose parameters that we play with. Right. Like we prefer.
Yeah. Like we would prefer 50 sites and up.
[00:12:37] Speaker A: Right.
[00:12:37] Speaker B: We don't really have like price point. It's just dependent on the. The partners. Right. Like.
But 50 sites and up revenue. I think there's a sweet spot. So like a lot of the private equity guys that we deal with, larger groups, like they want a million plus revenue now.
[00:12:50] Speaker A: Yeah.
[00:12:51] Speaker B: 150 plus sites or at least 100. I think there's some sweet spots to be taken advantage of below that.
[00:12:56] Speaker A: Yeah.
[00:12:57] Speaker B: You know, where you're not like only at a hundred thousand or $200,000 revenue properties, but like if you can go between 250 to 500, I think there's some. A lot of opportunity in that and under 100 park.
[00:13:10] Speaker A: I mean you're getting more and more people that say, hey, I want to stay at a park, but I don't want to live in a effing parking lot.
[00:13:15] Speaker B: Absolutely.
[00:13:15] Speaker A: You know, like there's this guy in Abilene that's going to build like 2000 site park. And I'm like, yeah, like, you know,
[00:13:20] Speaker B: that's a parking lot, you know, like. And you know. Yeah, that's tough. I don't. We don't want that. We want it to actually have like the outdoor hospitality feel with. It's campy experiential. You can have.
[00:13:31] Speaker A: Why not buy multiple pieces of land in that same area that you like and to do several precise ones. Because somebody that's staying at a 60 site park, half those people don't want to stay at 150 +1 because it's just like, you know what I mean? Like it's absolute campers and walls are thin.
[00:13:46] Speaker B: Absolutely.
[00:13:47] Speaker A: To a train. You know what I mean?
[00:13:48] Speaker B: Absolutely. Yeah. It's like. Yeah, I'm not a huge fan of like a massive purely RV park.
[00:13:55] Speaker A: Yeah.
[00:13:56] Speaker B: Where it's just like. Yeah, this is, this is a glorified mobile homework. Yeah.
[00:13:59] Speaker A: At this point.
[00:14:00] Speaker B: So, yeah, we're right there with you. But not a. Not a strict buy box. But that's kind of. I think there's opportunity in that for sure.
Our preference is southeast for our. Our own sake.
[00:14:10] Speaker A: I like Carolinas because the way I see it, Texas and Florida gets a lot of attention. Arizona, they get the eyeballs for sure. The Snowbirds, just eyeballs. But just, you know, Carolina's right there. It just doesn't seem like there's that many parks. And it seems like everyone I went by are pretty good performing.
[00:14:29] Speaker B: Agreed.
[00:14:29] Speaker A: No, what am I missing here?
[00:14:31] Speaker B: There's definitely some opportunities.
[00:14:32] Speaker A: If it's Texas, they're like, we're not gonna build some for sure.
[00:14:34] Speaker B: Yeah, we're gonna build them all. So it's more regulation in the Carolinas, so you can't just throw them up left and right.
[00:14:39] Speaker A: Yeah.
[00:14:40] Speaker B: But it is also like you gotta
[00:14:42] Speaker A: have a GC license and over 40,000 in North Carolina. Yeah, I was about to get that license.
[00:14:45] Speaker B: Okay.
[00:14:46] Speaker A: What I didn't need to get, but
[00:14:47] Speaker B: anyways, so it's like there's definitely opportunity. There's a lot to like about the Carolina area.
[00:14:53] Speaker A: People want to live there. The weather's good.
[00:14:55] Speaker B: Not nearly as much inventory online though, as you see like in. In other areas. Texas specifically.
[00:15:03] Speaker A: Yeah.
[00:15:04] Speaker B: But there's definitely opportunity there for sure. And us being there, like we own in the Carolinas, so we own in North Carolina currently we live in south.
We would love to have some stuff in South Carolina.
[00:15:14] Speaker A: Yeah.
[00:15:15] Speaker B: There's just not a lot available.
[00:15:16] Speaker A: Yeah.
[00:15:17] Speaker B: At the moment. At least that's reasonably priced, I should say.
[00:15:19] Speaker A: Yeah, yeah. There's always something.
[00:15:21] Speaker B: There's always something if you got a deep enough pocket.
[00:15:24] Speaker A: But yeah, we're. I'm saying in Texas loan like 50 increase in inventory this year.
[00:15:29] Speaker B: Oh, yeah.
[00:15:29] Speaker A: Are you seeing similar Southeast?
[00:15:31] Speaker B: Yeah. So I wouldn't say 50 increase, but it's definitely. There's some folks that are really ready to do, you know, ready to trade.
[00:15:39] Speaker A: What do you think? What do you think?
[00:15:42] Speaker B: I think a lot of people are aging out. A lot of people are getting tired.
Some just changing hands. Like next gen took it over and they're like, yeah, I don't really love this. After a year or two of actually being in it, having to work it.
[00:15:53] Speaker A: Yeah. Because ohi stat was. I think 75% of park owners are mom and pop. Own it for 20 plus years. Yeah, exactly.
[00:16:00] Speaker B: Yeah. It's natural. Like we. We deal with a lot of folks that are like, it's that they've had it for, like, we're selling a property right now. They've had it for. It's like year 10. This was their working retirement.
[00:16:10] Speaker A: Yeah.
[00:16:10] Speaker B: And now, like, we'd actually like to retire.
[00:16:12] Speaker A: Right, right.
[00:16:13] Speaker B: Sold several where it was like, hey, we did this. You know, I left my job, I put all my. My retirement into the campground to buy it.
[00:16:20] Speaker A: Yeah.
[00:16:20] Speaker B: Now we've done it for 15 years, and we'd actually like to take a break and rest. So I think there's a lot of that.
Some, I imagine, is like, folks were trigger happy during COVID Yeah. Bought when stuff was really high and occupancy was super high.
[00:16:36] Speaker A: Yeah.
[00:16:36] Speaker B: Now, you know, it settled down. It's back to kind of normalized. And I think some people are like, yeah, this is not what I thought.
And so trying to get out. But yeah.
[00:16:45] Speaker A: During COVID everybody was full.
[00:16:47] Speaker B: Exactly.
[00:16:47] Speaker A: Now, now you need to, like, actually
[00:16:49] Speaker B: have to have a business.
[00:16:50] Speaker A: You got to pull out all the stops, you know, you gotta do the things other people aren't willing to do to get the occupancy they ain't got.
[00:16:56] Speaker B: Absolutely, absolutely. And that's not like, that's not always easy. Right. So.
But yeah, I think there's a. There's a culmination. I feel like if you talk to 10 different sellers specifically, like, you might get five different responses on, like, why we're letting go.
[00:17:10] Speaker A: Yeah, sure, sure. Yeah. I definitely find it interesting, though. Like, I remember speaking to one lady a month or two ago, and she's like, I got an appraisal for 1.5 million. I'm not selling for a penny less. I'm like, well, what is. What is the income? Like, so look, well, bankability says no. Okay.
[00:17:26] Speaker B: Yep.
[00:17:27] Speaker A: The scr.
The numbers that you're giving me now, no bank is going to give me that where my loan payment is more than what the net income is.
[00:17:35] Speaker B: Exactly.
[00:17:36] Speaker A: She's like, but. But I'm like, it's not a house. You know, like, yeah, don't work. Yeah.
[00:17:40] Speaker B: Doesn't work.
[00:17:41] Speaker A: And I think that the SCR houses are off appraised.
[00:17:44] Speaker B: Absolutely. Absolutely. And I think that's a disconnect. So there's obviously, you know, a number of folks that are willing to sell. And then there's an entire different disconnect between what that price should be versus what it. What it like pencils at.
[00:17:57] Speaker A: Right.
[00:17:57] Speaker B: So pencil.
[00:17:59] Speaker A: So it's like, what? Well, neighbor down street got 3 million, so mine's got to be worth 2.5.
[00:18:04] Speaker B: Oh, yeah. They Treat it like houses, like it's not. This is not the same at all. And we hear that appraisal game all the time where it's like, well it appraised for this and it's like appraisals are always great. That's wonderful.
[00:18:15] Speaker A: I don't think I've ever seen an example where appraisals came back trash bad, right?
[00:18:18] Speaker B: Yeah, yeah, exactly.
[00:18:18] Speaker A: They're always good.
[00:18:19] Speaker B: But it's like truthfully I oftentimes I don't know how the appraisal worked if we're looking at the same numbers. This doesn't math.
[00:18:28] Speaker A: Like I got, I got a funny story on that one. So my first parks I built in Whitney, I got an appraisal and the next one we were building was in Oklahoma and it was pre construction based off proposed know land value and then what it's going to be worth after we build it. And so the lady called to make an appointment and I was like, oh really? So how are, how are you basing this off of. Because it's rural Oklahoma, there's not many comparables. And she was just kind of bluffing. I was like, oh really? That's crazy because my Whitney park they did X, Y and Z. And you want me to send you that report?
[00:18:59] Speaker B: She's like, actually no, don't send me that.
[00:19:01] Speaker A: She said yes, I sent her the report and what do you know, the numbers came back looking just like that. She copy and pasted.
[00:19:06] Speaker B: No kidding.
[00:19:07] Speaker A: Like you're not doing your job. You're not a very good professional. Yeah, I'm just going to take what good numbers.
[00:19:12] Speaker B: But thanks a lot.
[00:19:13] Speaker A: I was, I was blown away. How's that ethical and yeah, it's insane.
[00:19:16] Speaker B: I mean that's not, that's not uncommon across any real estate where it's like oftentimes appraisal comes right at the the ask price or the contracted price. It's like come on. Every single time. Really?
[00:19:26] Speaker A: You know, we're trying to get deals like it's a professional opinion value.
[00:19:31] Speaker B: Yeah. Like please give us something that's real here intangible that were there.
[00:19:35] Speaker A: Well, cool man. I appreciate your time. I think that's good little episode, a good conversation we had.
