SPEAKER_00: 0:40

Well, hello everybody. Ryan Garland here, founder and chairman of Paradigm. We have Mike Revley, our CEO today. And I'm uh want to thank everybody because it looks like we have quite a bit that are already logged on for joining us today. Make sure those arms stay steady. There we go. Joe, you got to do your job. Thanks, buddy. So uh, but thank you guys for joining us today. We have uh, you know, we we're we're getting um a lot of requests to talk about kind of the exit strategy for investors and kind of what seems to be common, what a lot of people have questions on. So we felt that it was necessary for us to kind of talk on that. I think you guys will appreciate kind of where we're taking it today. Obviously, Mike, from his background on Wall Street and kind of really working with uh larger institutions and how they uh position themselves for exits, because it's always about how to not only make money but retain the wealth that you've created. So uh Mike has just got a ton of knowledge on how a lot of guys are are maneuvering around for taxes, but really just talk about our experience with what's happening with the barn caves, what's happening right now with Lake Avasu, and just kind of paradigm in general. So we again we thank you guys for joining us today. Mike, thank you, buddy, for joining us as well. And uh what would you like to talk about first? You want to talk a little bit about all the things we have going on, uh, just so we can kind of give more of a background for some of the new uh uh uh participants.

SPEAKER_01: 1:52

Right, I think that's great because I'm I'm on the front lines with a lot of our investor calls. And I I think the one thing that they're surprised, because they're obviously getting information on our current project of Barncase, but that's really just one of many that we have going on here in Havasu and and really uh you know in other parts of the country. And I think they're surprised by the sort of the depth and breadth of what we're doing overall as paradigm and and where that vision takes us from here, right? So investors they want to know what you're doing now, of course, but they also want to buy into what you're gonna do in the future. And I think if you look at the Barncase project, it's very unique, obviously, and people buy into that sort of unique nature of that particular development. But there's a genesis story to that, right? And and that the genesis is here in Lake Havasu, where you really got your start as paradigm development right here in Havasu, and we're wrapping up you know, a 200,000 square foot development of man caves here in in in Havasu. So I think that Genesis story is something that I think people need to understand more of that paradigm. We just keep we need to hit that a little bit, let people understand exactly what we're doing here and how that translates to where we're gonna be over the next three to five years and and how we're gonna essentially from an investor standpoint make sure that you know we're executing on that vision.

SPEAKER_00: 3:11

Yeah.

SPEAKER_01: 3:11

And I think that's so that's fundamental, I think, to paradigm. It's fundamental to understanding who we are as a company and then our projects, and and from an investor standpoint, what the end point is, right? Because everything that we're doing in paradigm, and and I think this is important, is that the time frames that we're looking at from an investor standpoint are short, they're short duration assets, they're one to four years, right? So if you're gonna lock money, you know, in what we typically see is people that are coming onto the platform begin to roll over to that next project and that next project. So giving a people uh I think a sense of not only what we're doing here in Havasu, but that how that translates to other markets is important. So I'd love to start there, man. I think I think you going through what we're doing here in Havasu, how you got into Havasu, and why you think it's a market that quite frankly we could hover here in the next 10 years and not satiate the demand that we see for what paradigm is building. So I'd definitely love to start there.

SPEAKER_00: 4:11

All right. So, you know, I have the philosophy, which is kind of nice because one of my mentors, his name is Dan Um uh Stevenson, he owns uh Europa Village and has owned a company called Rancon Group and has been in Temecula for 70 years. And he uh he was kind of there since the 70s. And so he had mentioned, you know, when he went out there, he just saw the opportunity to basically build an empire there and really build some wealth for not only himself but his clients. And so he just kind of stuck with inside that geographical area and really has done amazing jobs, probably the best reputation in the area for development. So I kind of have that same uh philosophy, and I think really it stems from just being a kid and coming out here, you know, and then my father retiring and moving out here. And so, what has happened since the pandemic? Because that's really really started to kind of open up our eyes as far as the migration and really watching the data of everyone's spending habits and so forth. And right now in Lake Aviso, not only do we have 225,000 square feet, which is paradigm storage, Barn Caves is roughly 530,000 square feet. And to give you guys an idea, in this little location off Retail Center Drive, which again, this is on the north side, right next to the mall and across from the airport, we share a property line with Paradigm Storage with Home Depot. Um, the uh the entire retail center, as far as Dillard's, the mall, you know, uh Walmart, uh, Home Depot, was it JR Motors, uh JCPenney, you know, all of that uh retail over there is roughly 730,000 square feet. If you look at the numbers just right here that Paradigm's building is equal to, it's another 750,000 square feet or so under roof. And so ultimately, when you look at it from let's just say from the city's perspective, or you look at it as from you know a vertical perspective, that's a lot of square footage under roof. And we're ultimately doubling the amount of development that's already uh in place here on the north side. So when you have that much going in, you're more of an institutional player. People start looking at you differently. Um, and then and if the you have a proof of concept and things that you're making money, that's uh that really starts standing out. So paradigm storage, guys, is probably one of the best um examples to start with. Uh, but to move forward separate to that, is is you have you know boat house as well. Boat house is 49 units. It's a paradigm storage product, their condo map, but it's a little bit um, I would say more in uh affordable just because of the location. It's out there by the 40 and the 95. Uh paradigm storage is within the city limits, so it's a little bit closer to home. So people will obviously spend a little bit more to be closer to their home. So uh, and then we have our headquarters that we're building, and we don't talk about it much just because it's our uh kind of our like little secret weapon or what have you. But that's a 20,000 square foot office building. Ultimately, it's a 20,000 square foot house, it's just a big office, and that's right here off Dover and Industrial, so it's central part of town, closer to the water. Um, and then we have uh, and then we have barn caves in the gym, right? So you have four different models that are really going on here, and the demand is continuing to show. Example, today, I think we have an offer coming in for another five units just in paradigm storage. And my broker, which everybody knows, Eric Adalia, he texted me and said, with this velocity, given the amount of units that we're selling, by the time this project is completed, meaning the buildings are up, we have already sold all of the units. So to be able to say in this volatile market, in this environment, you're still able to produce an asset that is holding and investors are comfortable with, uh, that's a big deal. So it does open up the doors for larger institutional investors, and we're gonna talk about JP Morgan here in a minute. Uh, but that really kind of gives you an idea on how we're hanging our hat here, but the data does support it. Uh, it's really nice for a group like us to be able to have our resources, whether it's subcontractors, the relationships with the city, architects, engineers, city engineers, when you know kind of how people maneuver, it allows us to actually have a well-oiled business. So it's that's where a lot of the heavy lift is gone. So being able to kind of hone in on an area that we see the demand, the data is supporting it, uh, baby boomer spending habits is there, healthcare is a big on the forefront, is the city too. You know, we can kind of come in and build these assets that we think are gonna continue to have the demand. So that's really important. But again, really, you know, what's the next step, right? So, okay, we build these things, now it's about the exit. The exit's always really important. And even today, I was talking to one of my favorite investors, and she's been with me for uh a long time, and she's in every one of our projects, and she's like, Ryan, I'm about to make a bunch of money on paradigm storage. What about taxes? What do I need to do? Right. And legally, I can only guide so much because we're not uh advisors, but we could say, well, this is what we're doing, you know, and uh and obviously we want everybody to uh cross their T's and dot their I's. But right now, you know, if you haven't uh seen some of the stuff that we've uh we've had in the past, we actually brought on a tax attorney that really does a lot of deferred sales trust. So we've already been in the game of trying to position our investors to see other options to position themselves to not only retain the wealth that they've created on that equity kicker, but you know, maybe reposition it and continue to earn or even to start uh shifting it and diversifying what have you. So uh really that's what's happened with the barn cage, really kind of started that too, guys. Where, for example, with solar, we can pass on the tax credits to our investors on solar, and therefore for the next four years, you're getting tax credits on your K1s or your 1099s. It depends on when we start issuing distributions, but you're starting to get some tax advantages on maybe some additional income that you have coming in on through those K1s, you can start saving on taxes. So there's a lot of little things like that that developers like us that need to continue to be sensitive to, not only for our own income, but to continue to provide those resources to our investors. So, with that said, Mike, let's talk a little bit about some of the things and conversations that you're having with clients about taxes and really kind of what you're seeing most people are are leaning towards. Now, again, we know about the IRAs and people rolling over, but what seems to be the common conversation because we are getting ready to pay off our investors uh on paradigm storage, and so we're already starting to start our phone calls to uh welcome and thank them now and thank them for being a part. But what are you seeing?

SPEAKER_01: 9:56

I think from an investor standpoint, you know, the the typical things that I hear, you know, uh people looking to do, and and we've seen this in paradigm storage, I think, in particular, right, is the 1031 exchange. You know, I'd love to say it's a 1031 exchange into the a unit in the barn case, but we're not there yet, right? That's a fund. But we yeah, as a as an institution, we are offering that option for 1031 exchange right here at Paradigm Storage. And that that I think is the easiest transition from an investor standpoint because a lot of people that we have are real estate heavy. They love real estate. That's where they've made their whether it's a family office or it's a high net worth, you know, they're constantly looking for real estate projects to invest in. And that the the the 1031 exchange obviously is a common, common, common uh discussion that I have.

SPEAKER_00: 10:45

We just had 18 units purchased by it through a 1031.

SPEAKER_01: 10:48

18 and perhaps another 10 or so we had another nine, a 10, yeah, a seven, a five.

SPEAKER_00: 10:54

We've had a lot of I think out of all the 208 units, I think we're gonna have less than 100 owners because most people are buying more than one unit.

SPEAKER_01: 11:02

Yeah, exactly. So obviously that's something that we hear all the time, right? In terms of how do I really shelter this gain that I have? And we just had a conversation with one of our larger investors, but she's a bit older, right? And and there's some things happening within the family. It's it's in a family trust. So how do we divert those assets out of the family trust into paradigm projects and not have to incur taxes? That's always a question that we get, right? So you know, we you know, as a firm, I don't like to give tax advice, obviously, but there are ways to shelter that income and not have to pay uh the capital gains on it. So that you know, we're we're constantly looking with the bird sales trust, another huge idea where people are are essentially you know using that to invest and reinvest their uh you know their real estate gains and shelter it inside that DST structure. You know, so there are it for the sophisticated clients, there are ways to do this for sure. And I think one of the things that I'm seeing, you know, from you know my conversations with the investors is and and it maybe this is just a reflection of where paradigm has come over the last 18 months. The conversations that I'm having with our investors are no longer the smaller check writers, the$10,000 to$20,000 check writers. These are people that have$500,000, a million, two million, four million dollars, right? So I I think that's that's a reflection, I think, of the product that we're bringing to the market, the sophistication. But in a you know, in a real way, it's the track record, Ryan, in terms of what you've been able to deliver. And you know, as from an investor standpoint, people want to reinvest in things that have made their money in the past, right? So people are getting more comfortable with the overall asset class. I think they like storage, and they're seeing this idea of you know, storage plus residential, true storage, not just you know, we're saying we're building a you know a large garage. You know, these are true boat and RV garages, allowing people to keep you know their toys where their you know where their home is, whether it's a second home, first home, or third home. So that that product I think is catching sort of fire across the U.S. I mean, we've had people come in from Alaska, fly in to Havasu, invest with us. We have conversations with people all over the country that have seen this, given our reach on Instagram, Facebook, and social media platforms, that have been able to see it, but there there seems to be this buy-off, like I just can't get enough garage space. And therefore, you know, and you know, and I think our demographics tend to be, let's face it, they tend to be 35 to 60, right? That's that's our demographic in terms of our investor and our buyers. And that demographic is the one that has all the toys.

SPEAKER_00: 13:51

It's true, and a lot of much of the wealth too, which ultimately are looking for more and more write-offs. I know one of the common things for you know local buyers, what's happening is they don't have enough room in their current RV garage that's tied to their home. And so they're coming out and buying another storage unit. But a lot of the conversations, as I'm seeing them in passing, as they're maybe epoxying their flooring or moving in and getting their keys, they'll say, Yeah, we had you know some tax implications, and our advisor it, you know, wanted us to buy more real estate or pay Uncle Sam. Which one is it? You know, which obviously leads into additional uh opportunities to invest. If you have the same issue instead of buying real estate, you could actually own a piece of real estate through an investment structure with paradigm, and then you don't have to worry about work or management or or what have you of the asset. So we do that heavy lift. Uh, there's another opportunity that we're actually working on right now to call the qualified opportunity zone. For a lot of the real estate investors, they probably know what that means, but ultimately it's uh it's locations within certain cities and counties where um uh I would say from a federal level want to try to push more growth. So what they've done is they've created incentives for investors to go into a fund that is an asset in a specific location that has again has been identified for for needing growth. And we would get, you know, you can roll your capital gains, 1031 exchange, sales from uh maybe a business, and you can actually roll those gains into a real estate uh opportunity zone where, for example, a lot of people don't know this, but like let's say uh you have a sale of a business, you can't just roll those gains into real estate, getting 100% you know, write-off on your gains. You still have to you can defer them, but only for so long. The same thing for with 1031, it's like for like, right? So if you sell real estate, that's what 1031 is for. You can sell real estate and then you can roll that capital gains into uh another real estate investment, right? You have to own the property, you have to be on title. So yeah, like for like what we're doing is ultimately it is like for like, it's real estate, but you can also sell businesses or any other assets and invest that into a real estate fund and get those tax advantages. So that's another fund that we're actually looking to open because so many people and investors are going, Ryan, not only do we want the more diversification, we want to stay in real estate, we're getting a lot of profit on your end, but how do we maneuver for taxes? So it's either you could roll into some of the other funds. So what's happening is we're just kind of you know ears to the ground and maneuvering our structure. And really doesn't matter the the construction, the product, all of that, it's has its own merits. The same thing in paradigm storage. We know that there's a demand for it. The only difference is the location and the way we structure the fund for those tax advantages for our clients. So it's really just kind of maneuvering and implementing, you know, basically the the tools that are out there to provide those um amenities to our clients. And so uh with that said, you know, let's say um, you know, the uh, you know, with not only Dover, we we want to do a cost segregation on that. We're gonna do a cost seg as well on the gym, which ultimately means we get to pass those uh those um real estate uh um what's it called? Not tax credits, but uh depreciation back through to our clients. So it's really kind of neat, you know, how we're actually making this more on the forefront because again, our clients are making a lot of money and uh they're they're looking for those uh again, those tax advantages.

SPEAKER_01: 17:09

And I think too, just the way that we're structuring and and we're finalizing this with our attorneys now, our tax attorneys and uh our fund attorneys, but to be able to basically essentially have within the barn caves structure our investors coming into the uh coming into the fund and actually viewing this as sort of a pass-through, right? You're actually purchasing a lot as you're coming in to the fund and then maneuvering this so we can roll over the the principal and profits into that down payment and have it in a tax-advantaged way, right? So this is in a way for us, you know, we're we're trying to stay at the forefront of you know real estate and tax law and be able to essentially help our clients manage that, you know, because I think it in in particular the Barn Caves is a unique product, right? Because it's it's being seen as a high return investment, and we have plenty of people that are just saying, look, I I love 31.5% projective return on it, and I sort of get it, it's 93 units. It's not you're not building a thousand homes somewhere, you're you're in your home market, you're building, sure, it's a 75 million dollar project, but it's understandable, right? So there's those people that just view it from an outright return perspective, but there's a heck of a lot of people that are have sort of seen this and said, No, I want to invest in it, but I also want to own a unit, right? And and we've got famili offices that are coming in for multiple units, that they're just basically you know taking the returns that they get from the underlying fund and rolling it into multiple units. So we want to be able to do that in a tax efficient and effective way for you know our investors. So I think we are, you know, we are trying to stay on the cutting edge of what we can do within the tax law and and making sure that we understand it, our investors understand it, and you know, get the advice that we need. And and that that I think is, you know, from my perspective, I think that's that's our job, right? We're not just developers, but effectively, you know, the nice thing about us is we're a platform. And on that platform, you know, we have consultants, we have attorneys, we have tax accountants, all these people that uh we can not only you know use to our advantage, but also for our clients' advantage. And we're so we're becoming much more of a quote unquote family office, right, with a development on it.

SPEAKER_00: 19:29

Yep, that's exactly. So let's unpack that a little bit more. So that's the fruit here, guys. I wanted we're gonna kind of we're gonna talk about that a little further so it's understood probably better. So it's funny because some of our investors that are actually in paradigm storage are on this and want to own units or have already bought units once the project was not only did they invest into it, but they also own units here. Um, it's really kind of the same concept. The majority of our clients do like real estate. So, of course, no one's gonna put all their eggs in one basket, right? Everyone, you know, you see paradigm and you're like, you know what? I want to dip my toe in the water. I've hey, I've had you know several investments with them, I'm gonna keep rolling capital, but they still have some of their liquidity and a lot of their net worth is still in other assets in real estate. What has happened is we've learned our lesson with paradigm storage, where because these are condos, this is a for sale product, it's fee simple. Each unit's a for sale product that opened up the doors to a lot more buyers, uh, a lot larger buyer pool. And you have real estate investors that don't want to do a step or can't do a step up in their basis, or you know, because of interest rates are high, they don't want to buy another residential rental, and the entry point is so low here that you can buy one or two. The management is much less. The kind of list goes on on the reason why people continue to buy these. It really has to do with the returns are stable, you don't have a lot of turnover, the maintenance is minimal, and the entry point is low. So the the net is a lot farther out from investors, and people from across the country are buying these site unseen because the asset class is getting more and more PR from Goldman Sachs opening up a$500 million debt fund for operators on takeout loans after construction for uh buying holds, in essence. So long-term debt, 30-year, 40-year mortgages against these assets. So, what's happening is institutions are paying attention because the asset has been so stable. But to fast forward, what's happened is with the barn caves, it really opened up the doors for investors to say, hey, Ryan, we want to invest, but we want to buy a unit. And uh, and then we would like to own one. And so what happened was again, learning what's happened with Paradigm Storage, is we went to our securities attorney and our tax attorney and said, Hey, look, if we have investors that are invest, and and whatever that number is, and we could talk about it if anybody's interested that hasn't invested with us, you know, they can lock in a lot, invest us a minimum amount, and then what happens is that 30% projected return, I can return that profit to them with a gift of equity. So now they're getting the gift of equity, eliminating the tax gains on on or the profit and on the taxable gains on the profit, and it's rolling into ownership. And therefore, our investors are going, I love that idea, right? So now let's say you roll into you have an IRA. It's it's fine. We can roll those gains into ownership, but you take the principal back to your IRA. There's so many different practices, but here's the biggest takeaway. We have, I think, north of a hundred thousand people on a waiting list to buy these units. That's how much exposure we've really pushed the barn caves for everyone to see. But the interest list has gone through the roof. On top of other developers, other landowners, other guys are trying to get uh a hold of our floor plans because they want to build something similar, because it's just taken root. It's it really has. It's a it's really kind of impressive. But again, what's happening is investors are going, well, look, I or buyers and investors are going, I love what you're building. I love the price point as far as the sales price. So they're locking in on it on a sales price. So from an investor's perspective, or even a developer, we're always focused on developing and selling to make a profit. If my own investors are looking for tax strategy, they're buying them, and then we're gifting the profit to them for the down payment or a portion of their down payment. But yet we have a fixed sales price, and we have right now, I think it's 43 of our units or lots have already been chosen out of 93 lots. We're already halfway sold in essence, right? Or close to. So what's what's happening is now the investors that aren't necessarily know the location or don't want to own a home, own one of them, is looking at it from just a straight raw investment, get my money back, move on, or maybe reinvest. What's happening is they're going, well, hold on, you already have set purchase prices. You already know what your so your pro forma and your projected returns are pretty locked down. The really only thing that we need to focus on is building them on time and on budget to stay on that pro forma projection. So it really has created a lot of institutional players to start paying attention to the demand, because that's that's a testament to demand, people wanting these. It's a testament to being able to build them at a cost that is favorable and affordable and attainable. It's a testament to the nature of the development and this and the fact that the majority of it is steel buildings, which lowers insurance costs, not only from a development side, from a construction side, but for an end buyer's homeowner's insurance policy is actually significantly lower to have a steel building, all the way down to the technology that we're implementing uh for fire protection, which is we could talk about in another another webinar. Um, but all of these things are changing the landscape of how uh planning and approvals are being done internally with the city at a at a private level or public level, down to how architects and engineers are trying to add value to developers by developing a uh, let's just say the structural engineering of these buildings where you can deliver the structural steel on one truck and it's cheaper for logistics and transfer and keeping the cost down. I mean, the list goes on on what we've created. So when investors, the sophisticated people that want to know what they're getting themselves into, are gonna pay attention to all of this and then pay attention to what the world is talking about as well. So, with that said, again, this is what's happening is these investors are going, Ryan, we love where you're going because not everybody knows this. We're working on buying another 37 acres right behind just west of paradigm uh uh barn caves, by the way, because we the demand is there. But we're gonna continue to develop right here in the area because again, that demand is there, it'd be dumb for us not to. And by continuing to provide those tax advantages again by through ownership and gifting that equity, uh, is really a big deal. And I would say the majority, I'd say maybe 50% of the investors that are in this fund want to own one. So by being able to create another vehicle for opportunity for clients, it's really kind of starting standing out for other, let's say, operators like us that are trying to provide uh and and and successfully raise capital, but provide more services to their clients. So I hope that makes sense. I know I talk a lot of your guys, but I hope that I was able to unpack that again. Again, the takeaway is investing, rolling your gains into ownership. Uh, you know, if you have, depending on the vehicle and what you've invested in, you can get some of that principal back, plus a pref if you need it, but you're not getting taxed on those gains. Those are that's a big play. So again, it's like you're gonna buy a home, you're building the home on your own. If you keep the house, you're not gonna get taxed on unreal unrecognized or realized gains. You still own the home. Until you sell it, you're not gonna, you're not, uh, you're not gonna have to pay taxes on any of the profit. Same concept here, because ultimately you're investing into the LLC that owns this project. So it's really just a numbers game, is really all it is.

SPEAKER_01: 26:23

We're just simply gonna have two share classes within the buck. Share class for investors and share class for investors that want a unit, right? So usually we can do that. I I think I think fundamentally too, if you go through the numbers with the investors, I'm I'm sensing too, they sort of see this almost like an IPO, right? In a way, they're like, oh, well, you know, you get a new a new stock that comes out in an IPO, it's typically cheap and it goes up after the you know after the stock is released, right? I think people look at this and going, you're delivering this product at 425 bucks a square foot. Wow. Okay, there's an upside there for sure. And I tell them, look, these are our performers, we're being tried to be conservative, and and yeah, we could be releasing these at much higher price points over time, right? This we're phasing it out. Anybody that's not locking you know their their home in through the that V share, you know, effectively, yeah, I think we're delivering this below market. I've always thought that. It's like, okay, 425, fair. But I think you know, there's 450, 475, even pushing$500 a square foot, delivering the product that we can deliver out here in Havasu and making it. I think once you once you drive into the private drive with the palm trees and the paved streets, and you're gonna get in there and go and do I get to talk about that on this one?

SPEAKER_00: 27:37

Do I get to talk about that?

SPEAKER_01: 27:38

You get to talk about that.

SPEAKER_00: 27:39

I'm such a nerd.

SPEAKER_01: 27:39

Absolutely, yeah. But you're gonna come in there and you're gonna go, wow, I just don't want to leave this place. This is so incredible. And then having a 32,000 square foot gym with a Dubai-inspired pool and pickleball courts and duck, all that creates the overall environment where you know that that price per square foot seems like a giveaway. And I think people are sensing that. They're like, Yeah, I see the upside in what we're trying to build here, and also from a concept perspective, we begin to brand ourselves in a way that when we come to that next location, they already know about the product, they've already seen it, they've seen what we've built here, and that's why I think we're getting the takeup we get from Alaska or from Florida or from Missouri or, you know, I literally I'm having conversations with people in virtually all 50 states.

SPEAKER_00: 28:26

Well, let me add it to this. So, guys, where I learned a lot of this, so my uncle, um, he was one of the presidents of Standard Pacific Homes, which ultimately sold to Lenar. He ended up going over to uh Western National that was building uh, I think 33,000 apartment doors for the Irvine Company. He left there and went with became the president of uh of Holland Partners, which it builds high rises all over the world. And in my opinion, that would be my dream. He doesn't get much bigger than building high rises. Okay. He always said that you make money on your acquisition. You make money on doing your homework and doing your research. That's where you make your money. And the biggest testament that we have to the success of where we believe the market is going is not only because the data doesn't lie, but you know, for example, Paradigm Storage, we thought we were going to sell these at$145 a foot. Our cost to build has actually stayed the same, which is ironic because we've been building through an inflationary period. But we plan on selling these for$175 or$145 a foot. Right now, on average, we're selling them for$175 a foot. And the rest of Building E, we just sent out an offer, or actually I counterside an offer at$180 a foot. So it's the same concept as home builders, right? If you buy earlier in the phases, your your cost is a little bit lower. As you deliver a product, people are your the demand goes up, you can increase that price. That, yes, the demand has gone up, but it also the market has slowed. You mean Q4 last year during the elections was I mean, it was desolate, it was quiet. And we kind of expected it, um, but we still were starting to see we were still seeing trades where other real estate traditional real estate had slowed down, and certain price points have definitely been hit. But these assets just aren't, and it's simply because of the tax strategy. People are looking to continue to retain their wealth and not pay Uncle Sam so much. So that's been huge. So it's allowing us because the demand for tax strategy is higher than homeownership right now. People own their homes. You are maybe you may have a low interest rate on your home right now, and you don't need to sell it because interest rates are high. You may want to move to Havasu, but you can't because you're like, well, I'm gonna go buy a$1.2 million house, but I'll have an 8% or sorry, that's right now 6% mortgage where I have a 2% right now. So it it's the lot of people aren't making those moves just because the the rates aren't low, and but they're looking for those tax advantages. So um to move to move over, and this is actually probably one of the most important things, and I think. I announced this before. And if you guys were to Google Apex, APE A T A P A P X, I believe they just bought 630 acres from the state, just west, and it's kind of northwest of the mall here, which is ultimately a left-handed rock throw away from us, um, uh, to Apex, I think it's like 10.2 or 10.3 million, 630 acres, and then they're splitting that down the middle to the owner of Viewpoint South Point, which I think there's like you know, 400 homes or 500 homes over there, which is literally, you can see it when you're standing up paradigm storage. And then, and then the idea is for they're gonna build a lot more homes. So the demand is going up, but if you're seeing a 630-acre acquisition where there are two of the larger home builders in the area, and including me, I'm gonna actually end up taking 37 acres from one of the guy who owns uh viewpoint uh North Point for us to build more in that area as well. The demand is clearly there. And these are institutional capital-backed players. So, you know, we're really kind of in that same lane as they are. We just have a different product. They're building regular one-story, you know, uh uh RV garages on the next of the one-story house. Their product and what we're doing are two different worlds. So there's no real competition. But if you were to Google that, what you're gonna see is that they actually implemented Paradigm's gym and the Barn Caves in their PR when they were telling the world what they just did. So Paradigm has really created kind of this momentum for the North Side to pick up. And I won't go too far into even a possible partnership with the owner of the of the mall, but uh, because that still hasn't solidified yet, but we have a lot of landowners that we're working deals with uh all over the place. But um, you know, that that that'll kind of give you an idea of our projections on the growth. And so what's gonna happen is the barn caves are gonna be really the first residential that's this close to the re the retail that's gonna be delivered after that acquisition. So I believe we're gonna control the market. Right now, our pro forma is showing that we're gonna be, you know, just under$400 a foot. All the other sales in the area are north of that. So if we're already conservative on what we're selling and exiting these at, of course, investors are like, yeah, I want to buy them. You're gonna be on the lower point already. But let's say investors we we decide to shut it down and we only have, let's just say 43 units accounted for. My investors that invested, and this is important, my investors that invested, same thing we did with paradigm storage, the rest of the units that are not accounted for by my investors, again, which have first rider refusal, we're gonna start increasing the cost per square foot as we deliver the rest of those phases. So the other half of the of the project, if you will, I'm gonna increase the sales price. And I do believe the market's getting better. So, uh, and it's it's projected to get better by the time we deliver these units. I think we're all gonna be in a in a much better position overall as an economy. With that said, that's gonna change even the investors are walking into additional equity. Now, from a gift perspective and from a documentation, it's not, it's just you're gonna buy a house and I'm obviously for X price, and then we're gonna end up selling the rest of the phases for higher. So you're automatically getting an equity increase uh as you have owned that property over time. And then again, you have all that development going up. So the point is that there's demand there, and I think the investors that are really digging their heels in to understand the barn caves and the location and what's going on in the city and where the demand really is, that's important. Lastly, and I'll open it up to you because I like to talk a lot if you haven't noticed, guys. They uh in the news herald, they just uh mentioned that the now they've been the the airport has been kind of a nightmare for years and years, okay? They have been trying to figure out a way to make this thing profitable. It has been a nightmare. We went over there because we have helicopters that are renting units from us because they can't find that, which is cool, right? Paradigm stores has helicopters landing at it, but they they can they those helicopter owners don't have a place to park their their helicopters, they don't want to leave it in the heat and they don't have airplane hangers. So we approached you know the the airport manager and said, listen, we yes, we can build these things, we're willing to help you, we'll make some money. It kind of aligns with our brand, but we also know that the demand that that the city's looking for, and if we had a larger airport, more hangers, we're gonna have more buyers come in. Okay, so working with these brokers out here, that'll that's where a lot of buyers are are hesitant to even buy out here because they just don't have a place to park their their stuff, their planes, or what have you. So the idea is that we would try to help them build. So they just announced in the in the news herald that behind closed doors, they're talking about expanding and building out the airport even further. So when you now have the city, and now you have like the public side of things are are really starting to bump up, uh, or private, yeah, but public side of things are bumping up, and then the private side's already growing. I I would like to think that this area is just really now starting to kick off for growth, and that mall is really starting to turn up too. So I don't know, I'm I'm a little biased if you'd have mine, and and I'm trying to make it beautiful. When you come down retail center drive from the 95, I have four date palms that are like 25 feet tall. And because paradigm storage parallels the land for the barn caves, I'm gonna just continue those those uh those date palms right in front of in uh of the gym and the barn caves and throughout the development, but that's gonna be the main thoroughfare for people to get back there to where all those houses are gonna be built. So uh I I personally think that our location is really uh key here.

SPEAKER_01: 35:49

Yeah, I think the location is key, and I think you've hit it. It's really North Abbaso where the money is going into over the next 15, 20 years. It's the migration into this part of town. It's gonna be our gym that you've said has been sort of central. The people that are looking at if they're gonna move into that area, what's the infrastructure there, right? So talking about potentially even uh a new marina on this side of town. So I think look, there and and the city's lining that up for us as there's talks of it.

SPEAKER_00: 36:16

We're not sure yet.

SPEAKER_01: 36:17

Not sure yet. Okay.

SPEAKER_00: 36:18

I have a lot of we have a lot of conversations. Okay, there's a lot of talks of it. Yeah, people that know what they're doing. So I just want to let you guys know.

SPEAKER_01: 36:24

Fair enough. Maybe I'll put my own. But it would be nice to have something like that up there too. I think it's part of this whole development. I I see that as possibly you know a good possibility. So yeah, I think when we look at it, we're well positioned, you know, locally here. And I think we're well positioned with the with the city. I think they're you know, every time you go into the city or Dennis goes into the city, I think we're getting that, okay, it's paradigm. Here's the quality to build. Yeah, we understand what you're trying to do here. And I think there's a you know, there's a consistency which we're bringing to those conversations, which are important, right? Because you're exactly right. You've sort of flagged a couple uh additional developments that we're gonna do here in uh in Havasu, which is terrific, but there's no shortage of building the city out. It's just it's really just beginning in terms of it's what I think is gonna be the next really important uh phase for Havasu, right? Hotels, more infrastructure, and bringing the big supermarkets in here. It's it's gonna be an amazing, and especially north side of Havasu is gonna be an amazing place to live. And I think from my perspective, you look at the map, the barn caves is the gateway to all of that activity. You're gonna go right right next, right past the barn caves into all that development, right? So I think we're we're we're really well positioned for that. And of course, you know, we deliver on our performance, just like we did here at Paradigm Storage. I mean, initially we're performing at what 145 a square foot. Or, you know, selling this stuff at 180, 185 a square foot, right? So I think if that's that's what I see for the Barn Case project, and I think it sets the stage for paradigm and and what we do going forward, whether it's storage or it's you know storage plus residential. And that really brings us into the topic of how do you finance all this stuff, right? Because that's you know, from my perspective.

SPEAKER_00: 38:16

Hold on before you go too far, because I know exactly where you're going. Okay. Anyone who has questions so far, because Mike's about to tee off on something that's really important for you guys to know, I can see it in his face. He's just biting at the bit to talk to you about it. If you guys have questions, please go ahead and start asking those questions now, and then we'll go ahead and answer them uh right after Mike talks about it. But this is also something that's very important. And again, it kind of goes in line with kind of the institutional side of things.

SPEAKER_01: 38:40

Yeah, I think so. So, you know, my my background, as everyone knows, I think that's been on these before or have chatted with me. It's a it's an institutional background, Wall Street for 10 years, private equity in Asia, taking companies public, you know, so dealing with this idea of how to scale businesses and how do you bring the right financing mix to those businesses. When I was in Wall Street, I basically did debt deals for the largest companies in the U.S. I brought them, you know, transactions all across the globe and and swapped them back in the US dollars. And whether that was G E C or Toyota, this is sort of what I did early on in my career, right? So when I look at the paradigm model, for me it was Ryan's done an amazing job of building out, you know, his reputation in social media and the crowdfunding area, which in a lot of ways essentially is you know, you create your own destiny through that model. And you do, you know, your projects are tend to be um serial, right? One, one, one, one. There could be some overlap between those projects, but that capital raise means they probably take up a little bit longer to do the capital raise, and because of it, you're also taking a bit longer to do the actual project itself. So my goal here within Paradigm is to sort of take what we do really best, the crowdfunding model, but then marry it up with more institutional capital, right? So, what does that mean? Ultimately, that means we have to go get a revolving credit facility from a major institution, get that in place and bring some capital to that. And then therefore, when we go to our next race, effectively what we're saying is let's go to the family offices that's gonna essentially provide the equity to support that line of credit. We've got JP Morgan right now, knock on wood. I don't have wood here, but I think I'm gonna have a term sheet from them, if not this week, early next week, which is gonna allow us to do that. So I met with the head of credit uh in JP Morgan, New York. It's a relationship, it's a relationship I've had for 25 years. And when I was in their office explaining why I'm there now and why I wasn't there three years ago, and the differences in paradigm from a scale, from an infrastructure, from a vision, and and from our ability to execute, you know, they they took a look at that and and I just saw the light bulb go on, right? It's like they're like, oh wow, okay, I love your business model. We here at JP Morgan want to get behind it. We want to basically be that lending institution that takes you from where you are today to that$3 billion company in three years. We we want to be lending you as much money as you can possibly take, but let's structure it in a way that makes sense for you today, but you can scale into a bigger facility over time. And so that that's where we are in this. So we what you're gonna see from us uh on a go forward basis is the ability essentially to move as quickly as we possibly can with projects in parallel, right? So you're not you're you're talking about three, four, or five projects at a time across the US with institutional capital backing it. But how can we do that? Well, we've got the development team in place now. We know our costs, we know we have the migratory trends across the US, we know we where we want to be, we're gonna pick our locations very carefully, we're gonna partner in the local markets when we need to, and we're effectively replicating something that we've done over and over and over again. In addition to that, what uh the guys at JP said well, two things. One, I don't think anybody else is doing this, are they? No, they're not, they're not, not the Barn Case product, we haven't seen that. And number two, we really like the fact that you're not taking this to Los Angeles, New York, Miami. You're taking this in the areas which are, you know, which they see as well, migratory areas, where you can get land a little bit cheaper, where you know the demand is gonna be there over the next 10 or 15 years. And when you get a tailwind, by the way, with interest rates a bit lower, which I think they're gonna be lowered here very shortly, you're gonna get a tailwind from a from a uh an inch an interest perspective, right? Your your debt costs are gonna be lower. So I think you know there, and and I I was, you know, in those discussions, I was perfectly honest with them. I said, look, the I am less concerned with the rate that you charge me, right? Because within the paradigm model, we have the ability, the way we build an engineer and structure, we're billed to go fast. We go fast, the faster we go, the more money we s we save, right? At the end of the day. And therefore, I can be more generous to my my partners, JP Morgan, and my and my equity partners, my LP partners, because we have uh embedded within our profit margins the ability to do that, right? If you're a traditional builder building 500 homes somewhere, yeah, you may not have those business margins. You need to count every penny. I think from paradigm's perspective, the partners that are looking at us right now are going, well, the partners that are looking at for I would call this like phase two of paradigm, right? Phase one, the traditional crowdfunding, phase two is gonna be a little bit more institutional in its nature, right? So the people in you know phase two are gonna be the larger family offices, the bigger check writers, but they're gonna want to come in and and essentially share a piece of the pie for everything that we do, right? They're gonna buy into that, and and therefore that sophistication level is gonna be, you know, it's it's much higher at the end of the day. It really is. So they have to buy into what you're doing, where you're gonna do it, the time frames you're gonna do it in, and then make sure that you as an institution, as a paradigm, are de-risking every part of that supply chain, right? Whether it's the debt, the equity piece, or the underlying you know, development aspects of it. And I think they bought into the our ability to de-risk projects and our ability to deliver on time and and on budget. So that that's the key part of this for paradigm. Now we enter this phase where you know it's I would say it's not turbocharged because I don't want to use that word, but um we're gonna go a lot quicker and and bring this sort of product out. And I don't know if you want to have granular on this stuff, but this can be like an amazing thing where we're putting a barn cave you know unit on a truck, semi-truck, and delivering it to a job set and erecting it, you know, in two days, right, from a framing uh standpoint. So we can go that fast, but that's you know, that's the advantage of having more of an institutional capital.

SPEAKER_00: 45:34

And I'll I'll kind of open it up here too. What's what's kind of wild is we I originally went into planning and designing this in a way that allowed us to go to the high dense areas, the downtown Nashville's, the LAs, and build these in a way where you can go into a high dense area, uh, you're looking for a high dense zoning, uh, they're you know, they're tall, they're skinny, it's like they're kind of like those condo townhomes that are more affordable. That's how I looked at it originally. It morphed a lot from there and kind of went more into, yeah, we're we can make them luxury, believe it or not, with the same price as going more attainable. And so it's morphed over time and and we got to a point where we are happy with it. But what's happened is a lot of other builders and developers started reaching out to us. So, equal the amount of people that are interested in buying them, we've had landowners and developers across the country that are asking to buy our floor plans from us, or can we manufacture these buildings? So, what's happening is from like a firm perspective, we're even thinking about setting up our own manufacturing so we can actually white label these products and start giving them to other builders and developers. So, think about it, guys. They say that the the people that made all the money during the gold rush are the ones that provided the picks and the shovels, right? If we're able to, if people can change the skin and maybe make some adjustments to walls or what have you, and we have that in place, you know, then then builders can actually buy these, put their name on it, we manufacture it and ship it to them, and we we're handling everything from a back office side. So when you look at how many we can actually get out, institutions are looking at lending us the capital to do all of these things. So that's what Rev was going to talk about is once these in these larger institutions are getting involved, they want a piece of all of the cash-flowing perspectives that paradigm has built into play. But what that does ultimately for you is create security. And our investors, regardless of how big these check writers, our current clients stick with us regardless, because there's other opportunities with inside the brand and that are inside the company that we still want all of our existing clients to be a part of. And we still will always open it to new investors. Um, but what's happened is that I did not expect, I have to give credit to where credit's due. I told Mike, JP is not gonna look at us, man. He's like, trust me, it's relationship based. I'm like, JP is not gonna look at the the density's not here. You know, we just the Census Bureau's data is not accurate. You know, you're just you can't get the data unless you do private and do like some serious private research from a third-party firm. And he's like, Trust me on this. And I'm like, I know we have a good product, but will people will bigger institutions look at it? Because again, we're in a secondary market, you know, this is an area where people are really moving to to try to bring down their income or bring down their overhead. You know, it's it's as much the population small, it just doesn't make sense for what larger institutions are looking at. Once they've got which I have to give, you know, Mike was able to pitch it to get them to go, hmm, I'm probably kind of interested. That's when it started opening up to really the inner workings and what we have created, because these buildings can be popped up in any, you know, any geographic location in the country and any atmosphere. You can stack solar on any of this stuff, you can print these things out while you're doing your horizontal improvements. The buildings are being cut and printed, like just like paradigm storage, right? Paradigm storage has 56,000 pieces, including the screws in every one of these, and every one we can get to a point where we know that number, that much detail in these barncaves. So, what's happening is is these institutions are going like, man, when you get to a point with inflation and with all the cost of management, and even all the way down to like we have less with less labor and less trades, we can cut the we can we're cutting the risk. That's what they that's what they care about is risk. How are we mitigating the risk? And so all of these little attributes is what's creating that. So um we feel that we're on the right track, the demand is there, and ultimately now it's like how can we print these things out and build the relationships with our clients and investors to believe in our vision and say, Ryan, we want to be a part of it. And then implementing these additional tax strategies to open up the door for investors to be a part of it is huge. But then you can roll these back over and your your capital back into either ownership or rotate into other projects with us, and that's what's really happening here with paradigm storage. Paradigm storage, for the most part, is going to pay all of our clients, not only the principal back, but their their equity. And that and all everyone who's already wants to allocate the capital and roll them over to barn caves, which we're gonna shut down the raids on the barn cave. So we pretty much are done on the first raise for that product, and now it's just about building as fast as we possibly can, build awareness for it, and continue to try to implement better practices for our clients. So we're on the way.

SPEAKER_01: 50:02

And that improves we've seen that here at uh paradigm storage where we're sitting right now, right? So we're now in the last two phases, two buildings, F and G, right? Report on where F and G, we're putting the you know, we'd be putting the retaining wall in here shortly. So I think from a paradigm storage perspective, we've learned a lot from paradigm storage, right? In terms of from the phase A to you know, building G, there's a lot of information that we gather as a as a builder from from that process. And you know, I think one of the things I talked about when I was at uh at the bank meeting with JP is like, you know, we can under the right circumstances build 50,000 square feet of new storage construction in 90 days, right? That building gets dropped, we we build very, very quickly. And they were impressed with that. They're like, okay, well, that sort of turns that model upside down because the other model is sort of what you'd refer to with Goldman. You know, they're they've committed a bunch of money to go, you know, take these uh C or Class B you know storage units, storage facilities, and redo them and bring them up to market, right? That takes a heck of a lot of investment and a heck of a lot of uh reinvestment in terms of bringing those uh everything within those that product up to market. Whereas we can go and build 50,000 square feet in 90 days, you know. Once we got the building engineered and dropped, we go very, very fast. So, in a way, they were like, I I think, I think from a JP Morgan perspective, like, okay, yeah, I sort of see that, guys. Yeah, you've you're you've sharpened your blade on the storage side, you've got apartments going up in San Antonio. You you you know, probably as a builder perspective, you cut your teeth, and now you've come up with a design which is unique in a lot of different ways, but you're not looking to put it necessarily in the hot, you know, where it's gonna cost you 15 million bucks for 18 acres or 20 or whatever it is, right? You're going into areas that are affordable but has that migration, and we want to be in water. That's the other part of it too. We sort of feel like there's something about the boat world, the RB and boat world that's part of our DNA. And I don't think that's uh, you know, from a development perspective, certainly from an MFR perspective, that you know, people haven't focused on that yet, right? In addition to that, the way we build with steel and concrete, you know, I after the fires in LA, I had I have municipalities calling me up going, oh wait, okay. So what can you actually do here? If we if we put in restrictions in terms of what that rebuilding looks like, you know, what what does this look like? Can these burn? Can they not burn? What's the wood content? You know, from an insurance company, have insurance companies have they looked at your product, right? Because these municipalities are looking at all that right now and determining what they need to do on a go forward basis to rebuild those communities, right? So I think the tailwind is there for you know what we're trying to do, paradigm's trying to build in the vision that we have, which is great. I like to see that. It's not that I am I'm not gonna go and and rebuild specific palisades or anything. Yeah, it's not on the agenda right now. But I think you know, whether it's hurricanes or fire or you know, other weather, these structures are meant really from our perspective, they could be anywhere. Right? Florida has the problem, you know, with with uh their structures right now, whether it's wood or other building materials, right? So we have some advantages, you know, at Paradigm in terms of what we're doing. I think we just parlay those advantages into uh markets that we think we can return the types of and maintain the types of returns that we're giving right now to our investors. Because ultimately that's all that we care about at the end of the day. If we're not delivering the types of returns for our investors that we promised, then okay, then what's the point?

SPEAKER_00: 53:55

There's no there's no business.

SPEAKER_01: 53:56

What's the point? So, you know, it there's and and this is what you know, really going back to my experience, like how do you scale? Scaling's important because you can scale too quickly or you can scale too slowly, and you've got to do it in a way effectively that you as an institution, as paradigm, feel comfortable with. And from my perspective, you know, within paradigm, we're in a much different situation than we were uh three years ago. We sort of we know our vision, we've we have enough experience now as an institution to be able to deliver that and walk into the most serious, whether they're LP investors or banks, and provide the you know, the business model and the numbers to support what we're doing. So I think that goes a long way. And I think and I think, and going back to my comment, is more and more of my my conversations with investors, because anybody's on this that I've spoken with, um, you know, these are people that are much more comfortable with a million-dollar check or a two million dollar check. And that that's just a function, I think, of where paradigm has become and where we're we're essentially heading. So very happy to see that. And obviously, for our investors that are that are currently with us, yes, Ryan's absolutely right. Regardless of what model we have from a uh financing perspective or a scaling perspective, we are always gonna have an opening for our current investors. And there'll always be a crowdfunding aspect of what we do because part of our DNA and part of Ryan's DNA is having, whether it's a large or small investor, he wants those people to participate with us, right? That's why we go to the extra length of setting up a reggae, right? For for everything that we're doing. So we can have those conversations with the investors that don't have a million dollars. Let's face it.

SPEAKER_00: 55:48

Well, and my philosophy originally, and we'll sum it up too, because our philosophy originally was, you know, I grew up with a single father. My father didn't do very well, and we didn't, you know, we didn't, I didn't go without, but I didn't do great. And so with the amount of relationships I built, pretty much from being boots on the ground in the mortgage space, the people that started trusting me a long time ago were my own friends and clients that I was doing loans for, and they just kept believing in me and they just kept investing. And so over time, it's just it's really just snowballed to where it is today. So we've made a lot of good decisions over the bad decisions on to get to where we are. But with that, let's answer a couple questions and then uh I'll kind of tee off on that. And we'll try to stay at red in an hour for you guys so we don't want to take up too much of your time. Um, again, you guys have more questions, let us know. Chevy, uh, so good question in regards to ownership. Um, so what's happened is the 43 clients, and I could be wrong, Tiffany, our uh relationships manager, will correct me here in a little bit, but I think it's about 43 of our lots are already accounted for from current investors. When you look at now, mind you, for those of you that have that are on this, you know I have for the most part a personal relationship with you. Uh some I talk, I talk to some people more than others, and some people have things that happen in their lives and they call me because they just they're worried about the world and the market and we just establish a better relationship. But um, what has happened is we knew that these properties are gonna probably be a little closer together to get rid of the riff-raff of like Airbnb is really important. We don't want the Airbnb, I don't like Airbnbs whatsoever. I've never wanted to own them. Airbnb in general right now is not doing so well. So we don't think even the investors that are really uh, or even buyers investors that are looking at from an Airbnb side that had maybe some experience in Airbnb are starting to consider not Airbnb, which is good because since we're gonna own the HOA company, we're not gonna allow Airbnbs, just so you know. And and to go to go back to that is the 43 clients that I have in there that I have relationships with, I know what their overall goal is to live here or be out here a handful of times a year, whatever it is, they don't want that riff raff either. So, really what's happening is the nature of the owners that are inside this this this uh community, I'm gonna know pretty much every one of them. Um, and and it's really kind of nice because it's like my own little network of like a real estate community of people own. And so listening to them, they don't want that riff raff either. And in fact, even for parking is kind of a problem for us to get, you know, if you have a if you were trying to throw a big party, you'll be able to be okay to park it. But if you have five or six different units are all throwing big parties at the same time, people are parking on the street, you know, down like out by the gym street. So it there's not a lot of extra room uh for parking so that way the riff raff isn't gonna be there. We're gonna make a requirement that people have to pull their stuff in the garages, you know, all that fun stuff, because we want to make this place look really good. Like, for example, we don't have street lights in every single one of the units that have the lights on the side of their garages, right? So, like outdoor lighting, every one of those lights on every unit on front and back, because some of the garages, some of the units, as you know, have garages on both sides, they're in essence drive-throughs. All of those are all going to be lit by the HOAs. Now, mind you, the whole project is on solar, so the HOA is not gonna feel it, but all both sides of those lights will be on all the time. So if you're an owner and you come down, uh come down the street, which by the way, we're putting all the streets in pavers, but when you come down the street, every single unit will be lit up and the unit owner hasn't have to pay for the electricity, it's all on the HOA. So it's really pretty neat on just the nature of what we're creating inside the community. And people just don't want that riffraff. And to be honest with you, I don't want it either. So the fact that we're not allowing short-term rentals is a big deal to finish that question and answer it. Long-term rentals, yes. Um, so we will allow the long-term rentals, you know, the six-month, one year. Um, you know, we're we are gonna choose a property management company that we know that will vet those tenants and do background checks and collect deposits and so forth. That'll be tied to the HOA as well, because they have to uh get approved to go through the gate anyway. So we're gonna kind of sniff a little bit of that out, maybe provide those services to the people who own them and want to rent them out. Um, Tammy, to answer your question too, uh, we're gonna be anywhere between 850 and 1.2. Uh the largest units gonna be 1.2, and the and the smallest units uh 850,000, 852,000 is what we have right now. Um, real quick story, and I'll I'll kind of start with one thing and then back into a story. Uh, we're even looking at so one of the things that we learned about paradigm storage is people want you know air conditioning units, they want all that stuff. So moving forward after our phase one, we started delivering our units completed, where we are will offer you know our unit owners if they want you know epoxy floors or certain things done inside their units. We're we're helping them with that. Um, and that's what people want. When you kind of get to know the culture of people out here or what the buyers like, they just want projects that are done, completed. They don't want to have to deal with the work. It's because they don't want to come out here, they just want to come out here and enjoy the time with their family or get away or what have you. They don't really want to work. Now, what we're doing, and I was actually uh trying to build an account in. Relationship with Ferguson for appliances, what we're going to do for every one of our unit owners or buyers, we're going to sit down and you're going to have a design center, and you can adjust whatever cabinets and looks and hardware and countertops and flooring and you could do all that. So we actually have a full-blown design center for our uh for our homeowners. And then ultimately, we're even going to allow appliance packages and what and we're trying to partner with two or three really well-known um uh furniture stores, and not only here local, but even other ones that they would ship. And we'll actually have our buyers choose the furniture that they want because obviously we'll have the dimensions, we'll have a couple units you can kind of walk into and feel. But then, you know, by the time they close escrow and they're ready to move in, we'll actually have the whole thing furnished and taken care of to what they wanted and what they paid for. So we're trying to go over and beyond any even builders out here, they don't do that, right? You sell down, you sell in the house, then you got to go get your appliances and your and your washer and dryers, and you got to do all that. Like we will have that all handled and picked right in escrow. And the people that you know buy these are just kind of getting a much more hands-on experience with a paradigm brand. That's what we want to provide. So if we're that right red carpet feel for our investors, we want to give that red carpet feel to the people who are buying them because that's where we're making our money at the end of the day. So hopefully that answers the question. And one last thing about a story, and it does it's it's been hard. Originally, when I started designing these, I was trying to design these in a way where I have a lot of really great friends. In fact, someone who's on my civil engineering side, her name is Jamie. She actually oversees all of our stuff and works for our uh our civil engineer. So very close with her. And she's a single mom. And, you know, being out here, the income levels out here, trying to make a living and and and get into homeownership has been very difficult. So we were trying to design these in a way where even, you know, kind of that, you know, single parent can afford, you know, or a single person can afford, you know, a home because, you know, let's let's be honest, divorce rates and singles, it's just it's it's something that has to be considered if you're a good developer. So we were trying to implement some of that. And I think some people will be able to hit that mark. But to be honest with you, one of the reasons why the numbers are as high as they are is because, and I know I'm gonna get my hand slapped for this, but a lot of the utility companies, they want bigger easements. So they've pretty much used a lot more of our land that we wanted to build more units, therefore the cost per unit would go down, but they want more easements, they want more easements in front of the units and then back of the units on the side of the units. They just they've been eating up all of our land. So it's hard to try to put cut our costs down. I think a lot of people think developers are just making tons of money, but it's not. There's with with with rules, regulations, and approvals, you have to you just kind of get it's just it's a it's a juggling thing that is really difficult for developers, but you know, we're we're still trying to compress those costs the best we can. But we I think we landed where where it's uh safe for everybody. Um, okay, let's see. You're welcome, you're welcome. Yes, it will. So the the the home itself will have solar. If you guys are looking at uh the the renderings on any of our websites or social media, what have you, uh you'll see when you scroll in, you'll see that there's panels on each unit. So uh the idea is to when we're we're gonna build these and deliver the house with solar, and you're in essence buying the house and the solar. So it's not like you have to lease the solar or any of that stuff. We're actually gonna inherit the cost and then hand over the keys with solar, so you have the ownership of that solar as well. To go further, uh, we just met with Unisource and uh Clean Energy department with them. We had a private meeting about it because we're gonna be the largest development out here not pulling from their grid uh because we're able to produce that power. The biggest issue that we have right now is storage. So a lot of the power that's gonna be generated during the day is gonna be inherited by the unit during the day, but we don't have the ability to create storage. Now, if you are a homeowner, you decide to create have your own battery backup, that's different. But we can't get that in the beginning in our approvals. Uh, so therefore, you you're still gonna have a little bit of a uh cost on your power, but during the day, when you're running your AC and you're pushing all that power through your unit, uh it'll be catered by solar. So, you know, again, that's just kind of part of the approval process. In fact, because of the nature of the solar, we actually separated the buildings to 10-foot setbacks. So there's a lot of moving pieces, but yeah, we're trying to deliver this and it will be delivered with solar. So we're we're past that part. Uh how much of the project is funded already? I'd say we're north of half of the project. We we've already the biggest problem has always been getting through the approvals. All of that's for the most part done. We've already started grading, uh, but we're already halfway through our raise. I'd say another half would be good, but we already have maybe six million or so already uh committed from paradigm storage, and that's not profit, that's just principle. So once the profit comes in, we're we know we're gonna oversubscribe. We're not necessarily gonna try to do that, we're gonna be looking at other projects anyway. So the current clients that have been rolling their money with us over time, going through IRAs, trying to focus on tax strategy, we're gonna continue to try to be on the forefront of giving them more options to get involved in things that we're doing, but keep it close, right? Continue to invest in areas that we know, keep all of our sub-base here. We know the relationships with you know our architects and energy, right? We're gonna kind of stay in that realm. So we're gonna be uh offering up more uh um opportunities for people as well. No, Corby, they won't. It and is a there's a lot more to it. In fact, you know, we were we just had a conversation about it this morning. I don't know if we should say this on web. So all you guys hope you love me. If I go disappear somewhere, um, just know it's because I get I went live with this pot this webinar. Um, so we learned that the power company is implementing AI now to start tracking how much power you're pulling, using, uh, which is not uncommon. You know, the marijuana industry created that problem a long time ago, starting in California. But they're utilizing AI on how they're identifying units that are implementing certain battery backups and and how much power you're pulling and so on and so forth. So there's there's there's more to that. Maybe you and I can jump on a call and I'll tell you maybe some more inner workings. There's only so much I'm willing to share here. But there's a lot of um there, they they don't want you, they will not buy basically it's a money game. They're in the business to make money. So they don't want to buy power from us. Um, if you think about how much power we can produce, and the reason I'm saying it this way is because the majority of our buyers aren't gonna live here full time, they're not gonna be pulling power. So we were looking at it as a developer going, hey, there's some additional sustainability and income that we may be able to produce by selling power, especially when these units aren't fully occupied, the whole all of them. So we're like, okay, how do we commit? I wonder if we can make some more money, not only maybe income for the company. Of course, that's how we're gonna look at it for sustainability, but maybe we could pass over that cash flow to our investors even after they made their money and get get out. Because again, what we did, just to let you know, is we opened up our own solar department. So we actually own the solar company that's gonna be produ uh producing this and bringing in our own legal to kind of do the negotiations for it. But yeah, they don't they don't want to buy power, therefore, hence the the backup batteries. Because if you have storage, then they can pull from that storage when they need, and then you're selling that power, right? So, right now that's that's one of the reasons why don't we they really don't want that backup so uh or that battery uh as well. So just to kind of keep you an idea that it's a it's a money game, man. These these these this is how this world works. We just got to kind of dance and you know, kind of play and maneuver around it, and we don't have a lot of control, but that's kind of one of it. So hope that answers that question. So, all right, guys. Well, thank you all very much. Mike, is there anything else you want to add?

unknown: 1:07:59

That's good.

SPEAKER_00: 1:07:59

Cool, guys. We're actually not only gonna let this go live for everybody that has registered and you can watch it in our in a data room, but we're actually gonna put this on our podcast platform as well. So if you guys want to share this to anybody, uh please do. As you guys can hopefully you guys can tell, we put a lot of energy and effort into the design of this product. Obviously, if we really want to take this serious and go across the country in different atmospheres, if you will, different jurisdictions, there's certain compliance and codes and building uh practices that need to be implemented to be able to take it nationwide. So a lot of that is right here. It's implemented. We've gotten a lot of good positive PR. And really, we couldn't do it without client without our clients and our investors. So, truly, from my family to yours, thank you guys for all your trust and love. We see a lot of our current investors in here. And I hope we can continue to to you know knock it out of the park for you guys. So until the next time, we really appreciate you guys. Uh, we feel that the world's okay. It's not burning like it was a few months ago. Um, and we're we we see that there's uh there's an uptick in activity. So again, thank thanks for joining us, guys. Appreciate it. Cool. All right, guys, have a good one. Bye bye.