Speaker 1: 0:20

Hey everybody, ryan Garland here, founder and chairman of Paradigm. We have an exciting guest, which you've already heard two or three times now, but it's always exciting to bring him on because he has officially made the number one real estate team in the state of Arizona. So, ultimately, the takeaway for today is to really get into the weeds of what's happening in Lake Havasu and kind of just maybe from a national perspective and just kind of get into the trenches of really what's happening here. And I, since we have such a big audience in the river, in the investment space, we want to try to lay some a little bit of a yellow brick road for you to consider going down, no matter which direction you you want to go in the next five years. I think you need to consider some of this data and make sure you're reaching out to the right team to position yourself, and you know it's time to build alliances like never before. So, eric Adalia, thank you for coming. Buddy, I love you. Thank you for coming.

Speaker 2: 1:10

I love you too, ryan. Thank you for having me again, man. I really appreciate it because it's so cool. When we do these investor meetups, we have these events. Everyone's always coming up to us and they say they love listening to us, they love hearing us, they love seeing us in person putting a face to the voice. So for everyone that continues to enjoy listening to Ryan and I happy to be here.

Speaker 1: 1:31

Thank you, buddy, and you know what Big congratulations. You're a new father. How cool is that man.

Speaker 2: 1:37

It's the best thing in the world. I think the only thing I regret is not doing it sooner. He's the best joy in my life. I he's the best joy in my life. I love him dearly. I think he looks a little bit more like his mom, which is probably why he's so good looking. But no, he's the best and he's got a couple dimples.

Speaker 1: 1:52

Crazy.

Speaker 2: 1:54

Well, that's your dimples, though I don't think I have dimples.

Speaker 1: 1:56

You do when you cut your beard. I'm too fat for dimples. It happens.

Speaker 2: 1:59

But no, yeah, just kind of alluding to the number one ranking news. That was actually a little bit of a shock. We found out for 2024 that our group was actually certified, ranked as the number one real estate group in Arizona via Real Trends. It's public information, it has to be certified through the brokerage and you know to get that news. When you hear about teams like Phoenix teams in Phoenix, teams in Scottsdale, teams in Peoria, teams in Paradise Valley to be number one in Little Lake, havasu City, I think is absolutely spectacular, but it's a testament to our entire team.

Speaker 2: 2:36

We're still not really considered a large team. We're a large team classification, but we have 15 agents and a lot of these teams are 20, 25, 30, 35. We sold 433 sides in 2024. And we're looking that it will probably track for the same in 2025. So the number one real estate group in Arizona. I think the most exciting thing is the fact that that brand is representing Paradigm Storage, which we see as the number one developer in the commercial space. So it's great synergy and for everyone listening, you know you guys are in great hands. I take these projects super, super seriously and on top of that, I'm actually heavily vested in them myself, so we're happy to make some moves.

Speaker 1: 3:21

Well, let's talk about that right, Because you know a lot of people. They just don't know where to invest. A lot of the conversations I'm having every day is I don't know what to do. I'm worried about the world. The market's burning. I don't want my money to be at the hands of the government and a tweet or whatever's going on in the world to really affect my retirement plan.

Speaker 1: 3:43

So a lot of clients just don't know where to go right. And that's where I think, being boots on the ground like you've been, not only do you know the market and you have your network, but you're actively trading these units and involved in Paradigm as our acquisition specialist. But you also now written another sizable check to be a part of our team, and so I think, know I think that most people do when they're vetting the right operator, they don't understand what to ask, and when you see a team with that type of synergy, where everybody is invested into the project, from development to sales, that's a, that's a testament to where I think there's some success to be laid down right. So I really appreciate your, your trust in this man. It's been great.

Speaker 2: 4:25

No, a hundred percent. And for you know, for everyone else that is currently invested in the project, you know, I think it's it's really important to look at the macroeconomics. And when you talk about where people you know are looking to invest, I think the scariest thing in the world is investing in something that isn't tangible. And when you talk about investing in stocks or other things of that nature, the volatility that comes with that is so strong. So, to be you know, personally speaking, anything I've ever invested in has been real estate and another project here, Paradigm Storage, over the hill, now at 65% developed, and the sales that have occurred in this project in the market conditions that we've experienced with high interest rates, volatility in the Middle East, I think is absolutely exceptional. And do we want to build faster? Do we want to sell faster? Of course, but we're talking now triple digits in sales and you know if things are a little behind. So what I mean if you're expecting to invest and get money back maybe a little bit sooner.

Speaker 2: 5:30

Guys, to invest and make these types of returns, you know, typically requires a lot of capital. So people that came in with 50,000, 100,000, 10,000, 5,000 to be to have the opportunity to be invested in this space, you know typically requires a lot of capital. But you've opened the doors, you know, to have people come in on a. You know, on a on a smaller amount. So for me I've, I've gone all in.

Speaker 2: 5:55

Now this will be my third round investing in the project. You know we're looking at an investment right around 3 million and you know I can tell you guys have been paid back every single time and I have family that is invested, you know, in these projects as well and I can tell you with absolute certainty as the boots on the ground I would not be investing in this project unless I had 100% confidence. I have other places where I can invest, but I choose to invest it in Ryan specifically because the mission that he instills in his team, in his company, the firepower that he has with marketing Guys that's one of the biggest reasons why this project has sold at such a rapid rate in a poor market. I'm going to say is because of the firepower behind Paradigm.

Speaker 1: 6:42

Well, let's touch on that too. I want to talk a little bit about the current market as far as like, have a series just, and then we can go statewide as well. But that does lead me into, you know, the conversation of you know where are people wanting to spend their money? Right, the idea is to identify people's spending habits, whether it's boomers, you know. Just look at the data on who is buying our units. Is it a husband wife? Is it a husband wife? Is it a single man? You know what's going on and what's their age groups, what's their overall net worth. You know, when do they come out here? Are they here to retire? Are they just here because they already live here and retired? You know all that data we pull together.

Speaker 1: 7:19

What I'm seeing is this kind of trend of people going. I don't really want to invest my money anywhere else except the real estate, so I get tax advantages, but then I can create cashflow and hang on to it. So I thought originally we're just going to sell these units to people who want to park their boats. We're now selling units at in bulk amounts. I mean, we just sold 18 units to a guy who just wants the cashflow, because they cashflow great and you don't have to he doesn't have to deal with the headache and maintenance and all the wonderful things on Lakewood for owning a residential rental. So I see that as a big deal. But usually it has a massive impact on what's going on with the residential and real estate. And so let's talk about the difference, what you're seeing right now in Lake Havasu from a real estate perspective, and how's that cross pollinating over onto paradigm storage.

Speaker 2: 8:07

Yeah, it's really quick to touch on those investors that we've had purchase multiple unit packs. We had, you know, one by seven, one by 18. We had a three pack that closed last week. So you know, you kind of even you were betting on that a little bit more you said, watch, people are going to come in and they're going to buy these.

Speaker 2: 8:24

You know these, these units, as rentals and you know, even if the return may not be as strong as it could be like in a single family home, it's the easiest tenant that you'll have. You'll ever have no overhead, no maintenance, no midnight phone calls. So you know, I think we're going to continue to see that. We're actually talking with another individual who's looking to take eight to 10 down. So you know, I think when you look at what's happening in Havasu, you know the inventory is increasing, interest rates, you know, remaining high. People are looking at ways, you know, to keep their money in real estate but get it into something that you know makes the most sense and it seems to be like that storage units right now.

Speaker 2: 9:05

I mean again, I can't stress enough over 130 units sold, you know, in a really really, really tough market. I think that's just a testament to these units being recession resistant and people liking the low overhead.

Speaker 1: 9:16

Well, you know, and you have certain investors as well that are, you know, a little bit more hands on. And then you have investors are like look, I've been doing this long enough, I can just invest. You know, I know what I'm getting myself into. One of the things I've been highlighting is just the asset class itself. Right, self-storage obviously, boat and RV falls with inside that asset class. What we're seeing is even the larger institutions are playing ball. For example, blackrock or sorry, goldman just launched a $500 million fund for takeout construction loans, long-term debt for condo mapped storage units.

Speaker 2: 9:48

Oh, wow.

Speaker 1: 9:49

Or larger units or just rentals. So it's kind of like that build to rent movement, whether you're building residential single family houses in a community that you're keeping as rentals, but you could sell one off at a time and recapitalize or what have you. So you have a much larger buyer's pool. Instead of just trying to find one group to buy $50 million, $150 million check writer, you could have a bunch smaller check writers paying half a million bucks. Same concept with this. So what happens is these institutions are going. We don't mind being pregnant on a bunch of, you know, on a bunch of, let's say, self-storages. But the fact that they're condo mapped you can sell. Each one makes it better because we can start recapitalizing if we need it to sell one off at a time, and the network is much bigger. Your buyer pool is much bigger.

Speaker 1: 10:31

So now you're and ultimately, when you look at it from a portfolio management, you have multiple assets under management with the same big amount out. Right, you just have more assets. You can trade for a smaller dollar amount. So when you're in a high cost environment and you're worried about the market and inflation is where it's at, what happens is the more assets you have under management. Depending on how much capital you have under management, the more assets mean lower price point, which means affordability.

Speaker 1: 11:00

So you're seeing larger institutions start dipping their toe in the water for these type of asset classes. So now, naturally, you're going to get more of the smaller retail. So you're getting all the PR from all the big Forbes magazines about Goldman blowing this out of the water. So now you're seeing smaller retail investors go. You know what I like what they're doing. I want to be. So now you're seeing smaller retail investors go. You know what I like what they're doing. I want to buy some some of that. So, and that couples up with a huge acquisition over here and some of the projected developments 3 000 homes I'm hearing that's supposed to be developed over here.

Speaker 2: 11:28

So yeah, absolutely, and I think what's uh, what's interesting is, you know, you, as a visionary, saw the opportunity in this location here in Lake Havasu the security of water, the growth that we've seen over the last eight years and I'm pulling up an article here because Havasu seems to be making national news more and more.

Speaker 2: 11:48

In fact, Lake Havasu was actually just named among North America's top lakefront real estate destination. That was from the Havasu News Herald a couple of days ago. That was from a national article that went live Lake Havasu one of the top, safest cities in. Arizona. So now you're starting to see all these things in this specific city. That is also adding to the success of the project. But I don't know if you saw that.

Speaker 1: 12:15

Yeah, I saw that I couldn't believe. Well, I can't believe it because I live here. But yeah, there's a testament to the tourism data. I mean the tourism data is impressive. I'm like there's not that many boaters but you have that many people coming out to see the London Bridge and just kind of experience all the things that Havasu has to offer. And you know what's even kind of more wild.

Speaker 1: 12:33

The thing that I've really been paying attention to is even the politics. You know, if you look at the direction the city's trying to push Havasu, they're open for growth and they're doing great and I do believe that what we're seeing is them become a little more forward thinking on the technology or certain building trends that you know really is kind of going on in the world. They're starting to inherit that. So it's allowing Lake Havasu to grow, with the right amount of people coming in at the right pace in my opinion, and it's capturing really family-oriented people that not only can move out here and work from here, maybe open up shop, whatever it is, but you can have your retirement plan here and now you're kind of in a low cost of living area, You're amongst friends. Healthcare is becoming a bigger thing here. You know, all that stuff that really matters is becoming. You know, is really what the Havasu has been pushed to.

Speaker 2: 13:24

It's a perfect location. So when you think of Southern California, inland Empire, orange County, all the beach cities in between, when they look to vacation they look to a destination, they look to retirement. You know destination they look to retirement Lake Arrowhead politics aside, but I'm going to say politics, it's still California.

Speaker 2: 13:43

Big Bear Lake, mead Lake, powell you have some water inconsistencies there. Lake Havasu really is the destination for that water recreation and for future retirement. So now what we're seeing is these Southern Californians, these baby boomers. They've done really well. They're over California though, but they're on that one to five year plan, and Havasu has the water recreation, the favorable politics, the favorable taxation rates. So when you add all of those things together, I couldn't think of a project I would want to be Again. Just because it's in Lake Havasu, arizona, it's got an Arizona state on it, it's a lake town. I mean, there's a lot of things going for it.

Speaker 1: 14:21

Well, let's move over to the residential. What do you see in the residential space right here? And that's because I'm going to lean into how that has like the residential side and how the commercial storages are so different in the trades.

Speaker 2: 14:43

But let's talk about what you're seeing overall here from a resident side. Yeah, so I always you know I feel like I'm quite honest when we talk about you know things on podcasts and I think that you know leading the space on the residential resale front. We're seeing you know things that you know are a little interesting now, with interest rates being so high for so long now, inventory has gone up. There is some rhetoric that you're seeing on social media at the local level from other real estate agents and other lenders now publicly speaking out about is the market soft or are you just priced too high? I'm seeing a lot of that.

Speaker 2: 15:11

I'm seeing a lot of agents post and say well, why isn't my home getting any showings? If we're in a situation where the home's on the market for 60 days, 90 days, maybe we're having some showings, maybe we're not even having showings at all and we're not reducing. The name of the game right now, unfortunately, in the single family space are price reductions. Now I'm assuming that will improve if we finally see some relief at the federal level. But for right now I want to be optimistic, but I think that for the next two quarters it's going to be more of the same.

Speaker 2: 15:41

And we're starting to see record rates of homes coming off the market because the homes didn't sell for what the sellers wanted. So let's just take the house off the market and think that the market is going to get better. But our market has appreciated so aggressively over the last 12 years To think that there's room for more appreciation is kind of uncharted territory. So seeing homes come off the market, seeing inventory go up even though homes are coming off, and just seeing a little bit of softer buyer demand right now and I think that's something that we're not just seeing in Lake Havasu but we're seeing it nationally- so I'm going to piggyback off that.

Speaker 1: 16:19

So what's wild is we did see it slow down a little bit in units, but not nearly as much as we're seeing from if you just look at the Delta between units sold for residential, compared to what we have, we're still leading the ship. Now you know meaning. You know residential slowed down but the storage hasn't necessarily.

Speaker 2: 16:42

Yeah, so I brought, I brought the numbers with me. I mean, when you guys, you can pull up the paradigm storage havasu website and look at all the phases, you know these are a lot of units that we've moved and you know all of buildings a, b, there's two units left in c, there's um three units left in d, you know, and we have about half the building. So it's, it's, we're over 50% sold out, we're about 61% sold, 131 units now closed, which I think is just unbelievable.

Speaker 1: 17:07

No, I think we've done really well and you know, that was kind of that forecast of where I think the world's going. So kind of right before you got here, you know, I had I had a a site visit from a client that was looking to Mel Park Capital in the barn caves and a lot of the common conversations from our investors are going. We are preparing for retirement and we want to come out to Lake Havasu. So what you're seeing are people not necessarily buying big homes right now. They're kind of hoarding their money and rightfully so, given the market but they're making better decisions from an investment perspective to ride this wave and then get the uptick on the appreciation down the road. So a lot of the investors that are, or even clients that don't need to make decisions right away, they're just making decisions a little differently to set themselves up. Is what you're saying.

Speaker 2: 17:53

So if you are an investor already and you're thinking of reinvesting or you're someone looking to invest for the first time, I think it should take all of about 30 seconds. You walk through, you meet with Ryan or you meet with someone from his team, you see how many units are built and you see how many units have already been sold, and from there it doesn't get any more black and white than that. So when you get into like the overanalyzing crap that's why I literally bought. I mean we talked about this last week when that lender the beginning of Paradigm, they just over-questioned it to death I've made six figures in interest and you missed the boat. Two years ago you could have been invested in this project.

Speaker 2: 18:41

So when you go and you see this whole project and you see how fast Ryan has built these units and how many we've sold, to not want to reinvest or to not invest at all, I just I can't imagine. I mean at some point you can't be afraid to write the check for 25,000 or write the check for 50. I mean, and if you're writing for a check for 50,000, in the grand scheme of things, a lot of people that are making this possible are investing a lot more than that. You know, be cool with the paradigm guys, don't make it difficult. I mean it's an opportunity to invest 50 K and make that kind of interest. I mean people do flips and take on a lot more risk to don't that don't even make half that interest rate.

Speaker 2: 19:07

So, um, you know, for people that come through and see this project I've seen it a few times. They come through, they check it out, they ask questions, you know, and then you never hear from them again. So it out, they ask questions, you know, and then you never hear from them again. So you know, I just think you know commend everyone who's invested so far.

Speaker 1: 19:25

I mean overanalyzation is just the absolute death of execution. So so true. Yeah, so true. All right, so let's talk a little bit about just the overall boating community. You know, you see a lot of uptick in boaters, rvers, all since the pandemic. I mean it blew up because of what was kind of necessary from recreational use Right now. It was funny because I was driving through just kind of random parts of the city the other day and I'm like man, there's storage units in every corner of this city. What's wild is how much it's occupied, you know, and so, listening to a lot of our investors that are also looking to buy and own one of the barn caves units, what is the biggest hit, or one of the biggest hits, is the size of the garage. You know, the kind of talk of the town or kind of ongoing conversation is how people have more money in their garage than they do in the house.

Speaker 2: 20:07

it's all the toys, yeah, you know yeah, no, and the boats are getting bigger and I think that's partially in, uh, due to the fact that, like havasu, still does not have a speed limit on this lake naturally attracts a very large boat with a lot of horsepower, but that you know the boating it's it's really nice to see, you know all the way from you know bottom to top, just everyone enjoying the amazing water recreation that Havasu has to offer. But it's gotten to a point where we're. The land availability is so scarce that now people are what they're having to do is pretty serious demolition to their existing garage and building new um you know.

Speaker 2: 20:45

So you're seeing that all over town people cannot believe that rv garages are the biggest marker for value. We've even had people purchase paradigm storage units to tie it with their home sale, just to have a home with a little bit more garage. You know, when it comes to listing their home for sale. So you know, when you, when you look at what a home is worth, you look at the garages, you work backwards from there. People drive through the town. They think it's a bunch of firehouses, but once they they spend a little time here, they understand. You know what Havasu is all about. So yeah, the boating world has been blowing up. You see it every single, every single holiday. Fourth of July seems to get busier and busier every single year.

Speaker 1: 21:22

You said the same thing this year. Yeah, do you know the? Do you know the? You know that white skater that flipped during Desert Storm? Yeah, of course that kind of took Havasu viral. Now flying without a license, I had to throw a little cheese ball in there, bro. I'm sorry, I had to do. I gotta get, gotta get the energy up, man. You know what's the other? The other thing is is that? So he? He flipped that at 209 miles an hour yeah which, which he actually won?

Speaker 2: 21:50

he, he won, yeah, the speed test, but he actually flipped it yeah, 209 was the new record, right, so it was a new record and he flipped it at 209, yeah, and I think he had more to go too yeah, no, I mean, that was that video. I think uh got on more tiktoks and gosh.

Speaker 1: 22:05

I mean that was billions of views.

Speaker 2: 22:07

The virality on that was insane. But yeah, I mean desert storm. Fourth of july, memorial day weekend. Almost every weekend in summertime here in havasu it's uh, it's crazy. But you're seeing projects like the riviera, you two and a half to six million, median price point of three and a half million, you know projects like the foothills still going very, very strong, a very affluent area, people with lots of boats, you know. And then now you know on the north side and viewpoint, viewpoint, north point, and now the barn caves, you know is going to attract a pretty, it's going to attract a variety of boating clientele.

Speaker 1: 22:40

Oh man, I'm really excited to get this going because it's been a long time coming. We put a lot of energy into getting the barn caves off the ground. A lot of energy is in Havasu as well. All right, let's change subjects a little bit, because I want to talk about high net worth clientele. So, as you know, we're building our headquarters right, it's called Family Office Society.

Speaker 1: 22:57

So for those of you that don't know about the family office networking or kind of the culture of a family office, what it is is it originally was founded between wealth managers and RIAs, registered investment advisors that would pull together a wealth plan for a family, right, it's really just kind of retirement planning, but on steroids. So what will happen is they'll sit down with you and go okay, you own a company, you own this much of real estate, you own all these high-end stuff or whatever assets you have under ownership. What they do is they'll help you repurpose all of those assets and position yourself whether it's life insurance policies, setting up trust for your kids, focusing on how you want to get certain thresholds set up in your trust. I mean everything. They're really just the wealth management side up in your trust. I mean everything. They're really just the wealth management side. What's happening is that these wealth managers are starting to get a little smarter, in my opinion, and they're not just investing their clients' money into stock market. They actually are starting to look at alternatives as viable investments, meaning gas and oil, real estate being in the alternative asset class. So what's happening is investors are now starting to lean more towards more smaller fund managers that still have a private equity background, very high in transparency. You still have a governing body by the SEC and you're held accountable for anything that you do with the funds. However, what you're seeing is a huge uptick in that space. People are believing more in Main Street than Wall Street at the moment, so a lot of people are going into cash positions and repurposing their wealth.

Speaker 1: 24:23

What we've done is we've created a relationship not only with the family or an individual who's still managing their own capital, but all of those high net worth clients that need to have because they have so many moving pieces to their business. They have CPAs, tax attorneys, wealth managers that are kind of spearheading all the assets that they have, and what we've seen is again all of these people that did have wealth managers that are kind of worried about the market. Don't believe in, maybe, a stockbroker. They're managing all of their money again. We've created a network of people, especially for people that are still in business, to basically be a part of a group that we vet and bring in. So because we deal with so many investors, we already know what their net worth is. I mean they have.

Speaker 1: 25:01

We have to verify your net worth. You know where's your all your capital? Do you have IRAs? What's your retirement plan? We get to know each and every one of our clients. We felt that it would be beneficial for us to take a lot of our clients, put them in a. In fact, our building we're about 50% complete building our headquarters office called the Family Office Society, 20,000 square feet. All of our investors will have private access to this. They can come in and spend some time with other members. We're going to have a venue that you know you can come in when it's just really hot and go golf. We have some golf simulators in there, really kind of just, you know, get comfortable and get away from the heat and kind of be amongst friends.

Speaker 2: 25:41

Looks amazing.

Speaker 1: 25:42

What do you think you, how do you feel about the networking aspect of business overall? How do you feel that that could benefit you know, lake Havasu's community business community, and what do you think about the overall movement?

Speaker 2: 25:53

Yeah, it's never, it's never been done before, and I think that there's a lot of up and coming young professionals in Lake Havasu and there's also, you know, younger and older, but there's never been one space where everyone can come together and collaborate at a higher level. And just seeing I mean I'm sure you guys have seen it on Paradigm's social media and Ryan's social media the building is state of the art, from all of the subcontractors that have been working on it to to to beyond. So, you know, even just seeing some of the renderings, you know to be able to to, you know, have a really nice high level business meeting, you know, and see if there's synergy with other members that are there, you know, to create new business opportunities. I think it's something that is special and the exclusivity that Ryan is creating in this environment I think is awesome and it really kind of ensures that there's some high level people there only. So I like it.

Speaker 1: 26:50

You know, it's kind of cool too, depending on which direction we go. But even the gym if anybody who's in real estate or one of our investors, regardless of whatever project they're in, we're going to give them access to the gym too, awesome. So just kind of a little extra. Hey, we appreciate the trust. Thanks for coming in. You know, let me give you some other. Let me see if I can add a little more value.

Speaker 2: 27:08

It's a nice yeah, I mean especially like July, august, when you have some pretty hot temperatures like it's a nice place and uh, is there going to be alcohol there?

Speaker 1: 27:22

booze, you know we were thinking about it, but isn't that kind of wild? Oh, so at uh, tell me, obviously we are, we will, but because we can legally sell have a scotch with your mate. There you go yeah, so well, I'm obviously going to have a nice, you know a little setup bar in there for sure so what we're going to have to do is most of our members will bring their own alcohol.

Speaker 1: 27:37

You know I'm a tequila guy, so I'm going to have all kinds of tequila there, I'm sure, and I'm sure I'm going to meet people that are going to be like, hey, I want to have a tequila with you. So I'm sure I'll provide here and there, but it'll be again more of an exclusive spot where people can go and get away, even no matter what time it is you have a key fob.

Speaker 2: 27:55

you go in the driving force behind family office. I'm seeing it on how quick construction is moving. Now we're starting to see that in paradigm. In fact we've been seeing it the whole way but maybe looking to double down. I'm hearing the conversation to potentially get buildings F and G done in the next, maybe Q1, q2 of 2026. Not to shift completely, but I bring that up because I see how fast family office is getting built and it looks like paradigm's going to go into overdrive too.

Speaker 1: 28:23

Well, you know what there was. So there is a little. There was a little bit of a, some logistical components to build. You know we're, you know we have the largest line items for most of our subs. So our subs, you know we're the biggest client. You know biggest client they have by far. So what's happening is our subs when they started getting contracts like ours obviously that helps them get other bigger contracts and they did they grew at an unbelievable rate. Every one of our subs, in fact one of our subs are just invested in the barn case, right and uh. And what has really kind of kind of transpired is they're kind of that you know controlled growth but yet kind of gotta work all the weeds out of your growing business. You know controlled growth but yet kind of got to work all the weeds out of your growing business. You know what's happened is as they took on paradigm storage and some of the other projects they've had to grow, so they brought on laborers and kind of train them up. You've seen kind of this kind of all of the subs and all of our management side just really sink together, right From material orders, understanding the problems that we're having with tariffs and trades we've really been getting in front of that, you know, from a project management side and like, for example, you know we ordered all of our doors for all of the rest of our projects in one shot.

Speaker 1: 29:29

You know, knowing that you know there is an increase in steel costs. You know which helped us? Because we bought in bulk, we got a discount, and then the supply chain. We're such a big buyer that they inherited some of that additional cost and we bit down on it too. But we only lost like thirty thousand dollars on three projects. I mean, we can, we can inherit a thirty thousand dollar loss, yeah, so that was pretty cool.

Speaker 1: 29:47

Then we ordered, but now we have the material right now we don't have to worry if we're going to get the material. It's its own stress in itself. Then what about the air conditioners? For the rest of the project, we just decide to pull the trigger and get all of them. So it's really pretty neat because we've kind of utilized that speed process of hey, faster, one half one, a second half, uh, second, one second faster, snap can say we can win you a super bowl, kind of thing. You know we were like let's, let's just focus on speed, and and if we do that, I think we can make it. Uh, we can uh do well. But again, obviously quality is important. We can't just build it and hopefully you just glue it together and it works out. You got to do it right.

Speaker 2: 30:23

I know I bring it up every podcast, but these units, just with everything they come with. I had a conversation with a buyer yesterday. He said wait, the air conditioner is included. I mean, it's such an easy appliance that you could probably pass off to the buyer and have them, you know, install at their own expense. So to for it to be completely done, you know, fully insulated. I brag about, you know, in my opinion, how fast these units are selling, but it's because of how they're built and the quality that comes with them.

Speaker 1: 30:50

Yeah, we try to build a lot of awareness through marketing too, so I think that helped a lot.

Speaker 1: 30:54

And then you know we have. You know, as far as the large driveways. As far as the large driveways, basically we're just always listening to ears on the ground. What are people really needing and wanting? We're just trying to build around that and making sure it stays within budget. But to answer your question overall, yes, we're trying on building F and G almost concurrently. Now G to F size is two night and day 64,000 square feet to 15, two different worlds. But we are moving forward on G at the same time with f, f. So we already have all the underground done. I think we're getting ready to pour next week. We just gotta get permit. Uh, other than that, he's already done in cod, we're just waiting.

Speaker 2: 31:28

Just, I know you got about half more to sell there we're about 15, 15 sales away from actually, uh, having the finish line in sight. Yeah, I mean, if we we get to 15 more sales, you know, by the end of summer, which you know I I think can easily be done. You know we're talking like fourth quarter of paradigm storage yeah, we'll just yeah.

Speaker 1: 31:47

Yeah, I would love to if we just bittersweet well, I'm we're.

Speaker 1: 31:50

we actually are contracting now to have the building team. We're trying to triple the build team, yeah, because, remember, the whole entire building is going to get dropped in one shot, yeah. So really it's like, hey, can we work overtime, work overnight, pop up lights? Let's just get it done. So I'm going to try to perform as fast as possible Because we're not going to need that much working capital your infusion is killer and we're going to start paying back our investors. So, at the end of the day, we don't need as much as what it's going to cost to finish the project.

Speaker 2: 32:16

Yeah, 15 more sales plus the infusion, that probably gets the investors pretty close. I think 15 sales in building. E is like 3 million, maybe more, when you look at the average sales price in building.

Speaker 1: 32:28

E, so we have about six or $7 million ready to just pay out. Yeah, I mean we're moving With additional working capital. Keep the project moving.

Speaker 2: 32:35

Yeah, plus the eight closings in the last two weeks, Yep so we're flush yeah plus the eight closings in the last two weeks. So Paradigm's in a pretty healthy position getting close to Q4. So sad.

Speaker 1: 32:46

So we ordered the building on the gym.

Speaker 2: 32:48

Yeah.

Speaker 1: 32:48

We already ordered the building. Wow. So that cantilever spot that goes over the pool, that's already designed and built. We already have the engineering already. Spot for the lift that's going to be inside, we have. I mean basically everything's already ordered not holding you to.

Speaker 2: 33:02

When do you see the gym coming online?

Speaker 1: 33:04

you know what I'm gonna, we're gonna, we're trying, we're gonna try to speed this up, even like our pool our pool sub is really pulling together to bring some people together to.

Speaker 1: 33:10

You know, bang this out I. I would love to see this wide open by this time next year, within a year. Wow, yeah, we're actually going to start grading for the rest of the site all in the same time because we're almost done with all of the last things that FEMA wanted. Everything else is done. Fema just wants to get out of that and we're just waiting on the state. But other than that, we're right there. Man, we already got our traffic study in. I mean we're done. We've already got our financials. Believe I mean we're done. We've already got our financials. Believe it or not, the city wanted to see our financials make sure we have the horsepower to develop, which is killer. Yeah, they're starting to really, when larger commercial players they want to make sure now that you really have the capacity.

Speaker 2: 33:47

I had no idea.

Speaker 1: 33:48

Yeah, it's a new implementation. You know all the way down to like. You know, phasing in projects. We're the largest player that's phasing projects. They don't you know all the residential, they're just COing houses as they're completing. Yeah, we have actual phased projects that are multiple units in one phase. They don't have anything else out here like that. They have seen all the other projects that are, you know, condo map, like paradigm storage. It's all just one phase, so it's easy to do that. What they've not had is, you know, for example, like one of our buildings is like our competitors whole project. Yeah, you know so. They're not. So they're not used to like five buildings in a phase where there's multiple. You know 208 units. They've never seen anything like this.

Speaker 1: 34:30

You know, on such a big piece too, with as much power as we're pulling, with 50 amp power in every one of our units two ac units, and you know some of these we're pulling a lot of power. So, even from you know, our utility companies. They're like dude, we like we. It's a lot of hand-holding man. So what's nice, though, is we're getting so much appreciation and respect because we are, in essence, helping them grow as well.

Speaker 1: 34:51

Right, we're working with utility companies. We're saying, hey look, this is where these are the engineers that we're bringing in. For example, you know Steven Beagle, I mean he, I mean he was the number one, one of the top architects in the country, you know remodeled the Pentagon and now, we know, is doing all of this. You do all this stuff, for you know, I think he was heavily involved in the Dallas Cowboy stadium and so you know that type of stuff. Those are the sophisticated partner partners we're bringing in for all of our stuff, you know. So it's not just Lake Havasu. We're trying to scale this to go across the country. It's just investors now are just being we're just raising awareness for this one project. So the plan, if you look at paradigm as a whole, from a firm level at 20 years in the business, this isn't like we're just trying to build this and make money and move on. We're trying to build this, perfect it and then really move on.

Speaker 2: 35:34

Yeah, for sure.

Speaker 1: 35:40

And really and really get more in because, most of you know, 75% of my investors reinvest. That's which is a testament to our ability to perform Guilty. Yeah right, there you go. Yeah, you're one of them, but that's the point is, if we can keep our capital under management, my investors are happy. We have a pretty long run and if we build a product people want and we're again ears to the ground, I think again, our investors are in a pretty good position.

Speaker 2: 35:57

Yeah, I think it goes back to the skills of your decision-making, though, because you talk about all this commercial and residential development and then you throw in a state-of-the-art gym or family office society Like the gym. Havasu has a pretty up-and-coming fitness community.

Speaker 1: 36:12

It's wild, insanely wild, yeah, yeah.

Speaker 2: 36:16

There's some gyms out there now and I know the members and I'm sure to see. The Paradigm Gym is obviously something that everyone's going to want to be a part of and if you haven't seen their renderings, you have to check it out, because it's almost unnatural to the naked eye, especially when you throw a Dubai and Inspired pool on top of it.

Speaker 1: 36:34

You know the one thing that you know of course, every business has data points that you have to track right.

Speaker 1: 36:38

So with the gym, health and wellness is the fastest growing industry, right as far as health care, when you look at everything that happened recently with the pandemic and vaccinations, a lot of doctors and physicians, you know, are just telling their patients, you know, go back to eating clean and working out.

Speaker 1: 36:53

So if you look at the data, the increase in gym memberships have gone through the roof, yeah. The other unfortunate thing is when there's financial hardship, you have a lot of divorces, Because the number one reason for divorces is financial hardship. So when the market kind of gets bad, you're seeing two houses become one. Therefore there's more units that are, there's a demand for housing, and then there are a lot of people that go out and go get a gym membership, and so you have kind of all these things that are kind of directing our decision making to capitalize on the market and what we need. Now I'm not saying anything about the bore side, but what I'm saying is is there's data just supporting the reason why it's a good idea you know, um, but yeah, I kind of what you said.

Speaker 1: 37:36

The health and wellness side of things here in Havasu is a lot bigger than I expected.

Speaker 2: 37:40

Oh yeah, nutrition One Cranks Herb's Herbs on Main Street. Those protein smoothie places are always packed and you just see people Like everyone's getting pretty fairly fit.

Speaker 1: 37:51

Well, you're outside all the time. Yeah, wakeboarding in the boating, I mean, yeah, this is a health and wellness hub. Man, people want to get outdoors, yeah, and if you want to get outdoors, you got to be in somewhat decent shape, and if you're getting outdoors, you're going to stay in shape. So you know, it's pretty cool.

Speaker 2: 38:05

And it's just how nice you develop everything Like it's something that people are going to want to be a part of. Obviously, people wanted paradigm storage, the rendering speak units, upgrade the barn caves, the gym, the family office, society. People want to be a part of that.

Speaker 1: 38:23

I was just talking to the client that left and I was showing him the rendering of the barn cave and I was showing that we have an elevator that goes to all three floors. Your third floor is a master suite, all by itself, totally secluded from the rest of the living space. The size of the garage. It's a drive-thru. People are like what the heck? For what's the price? Yeah, you know, and I have to kind of go back to the backstory as to why.

Speaker 1: 38:45

You know, we started designing this before the, before the elections. We didn't know which direction the world was going. Everything's burning. You know we want to be able to build houses and that's our business that is affordable but also trendy and easy. And then, obviously, we're building metal, steel buildings and that just lowered the cost of insurance for our homeowners because stick built homes are going up in cost for just for insurance. So if you, if you did a piggyback side by side for insurance right now, cost your homeowners insurance will be almost a thousand dollars higher per year just in your policy for a stick built house and you are still like a barn dominion Crazy. Yeah, it's totally different. So when you're looking at an affordabilityability, we have to look at as a developer going who's our exit buyer and we have to really pay attention to the affordability side. So you really got to bury and the way we made up the delta was speed yeah you know again, we can manufacture these buildings.

Speaker 1: 39:30

Cut all the the steel we have. These things come in panels. We pop them all down in panels and you can pretty much finish one of these units within 35 to 40 days. You're flushing toilets, but it's a real house. It's not like you're just putting it on a trailer and dropping it down. But that's the point is there's ways that we wanted to implement certain practices to be beneficial for our investors or clients and buyer, but create a brand that people can be proud of being a part of.

Speaker 2: 39:58

For sure. Yeah, no, definitely Couldn't imagine investing anywhere else, and to be on the front lines on the sales is a huge opportunity, and I think we've done some pretty exciting things on the sales front thanks to the backing of Paradigm Companies. And cheers to everyone who's invested, because I think the returns are coming. I've seen them already. So if you're out there and you're thinking of investing, just pull the damn trigger.

Speaker 1: 40:21

That's what we're thinking. Hey, kudos to all your success and to your team, because you guys are all doing it. You had a good team, man.

Speaker 2: 40:28

That's hard to find.

Speaker 1: 40:29

People don't understand how hard that is, that's probably the hardest part of growing any business is finding the right team or putting together the right team yeah, the right team.

Speaker 2: 40:37

uh, retention um lots of, lots of talent you know when you think of some names you know on our group. So thank you, uh, for being a part of our success, of being a huge part of our success. Uh, without paradigm storage, I don't think we definitely would have made number one. So very grateful for the entire paradigm team.

Speaker 1: 41:03

Well, eric. Thanks for being here, buddy. As always, it's an honor. I love you. You're a very dear friend of mine. I love seeing your family grow. You're a great man, you're a great father and you have an amazing family, and I'm honored to be part of that family.

Speaker 2: 41:06

So thank you very much. No, thank you, we love you too, man, and if you see Ryan, please tell him to stay off of his foot.

Speaker 1: 41:15

Please tell him to stay off of his foot. I fell through the racks and I was hanging by, you know, by my leg, basically.

Speaker 2: 41:22

He's finally going to see a doctor today, thank God.

Speaker 1: 41:25

Yep, which I need to get ready for here in a minute.

Speaker 2: 41:26

I'm going to eat lunch and then get going, so guys.

Speaker 1: 41:28

Thank you all for listening. Hopefully there's some value in there. One of the things we wanted to do is kind of direct you guys towards the real estate overall here in Lake Havasu, just because we're in the middle of the grind mode of raising. If any of you are interested to potentially partner with us or invest, go ahead and reach out to paradigmcompaniescom. You guys already know how to spell paradigm and we'd be honored to have you. You can invest right there online. Don't need to talk to anybody if you don't want to, or you can schedule a call with me directly or any one of my executive teams Happy to answer any questions you have. We'd