Welcome And Why This Matters

SPEAKER_00 0:00

Hey everybody, Ryan Garland here, founder and chairman of Paradigm. Thank you very much for joining us today. I uh I'm excited. I think we've uh for some of you, it looks like we have some familiar faces, and some of you uh are uh new faces, so thank you guys for the support. Uh we had uh something like this, I think a little over a year ago, actually. This entire team, we've been together kind of chipping away at this and pulling teeth to get these things and these projects off the ground and moving. And it's been uh it's been a hell of a journey. But I figured what we do is just kind of highlight what's happening. And um, you know, one of the things we'll kind of start on just kind of giving the pedigree of everybody here. We're all pretty old, so I think there's a little over a hundred years of experience, but you know, we've all been through a couple cycle downturns and the volatility in the market's pretty scary. We're having a lot of conversations with clients and wealth managers, RIA, some institutional players, you know, kind of where everyone's kind of moving their money and what's happening in the world, you know, a lot of fear. And I think at the end of the day, what we want to do is to show kind of through data that um, you know, there's some there's some directive of what's happening in in our space. And at the end of the day, that's what we want. We want to make sure that we're making, you know, good, smart decisions. You know, we we we none of us want to lose money. No, nobody wants to lose their career. And everybody here that's in this room, that's uh that's that's uh our guest today are have been in the space for a very long time. And so I feel honored to have all these guys by my side, as you can imagine. Ultimately, we're here for you, and uh we're here to serve you. And without you guys, we wouldn't be able to get these projects off the ground. So sincerely, uh, from our uh company to yours and our families as well, we appreciate all the support and we hope that you guys see the value in what it is we've created. We feel uh excited, as you can imagine. So we feel pretty blessed. So, with that said, we uh let's get over to the team. So, as you guys know, I'm the founder and chairman of Paradigm, but in the space 22 years. Uh managed multiple funds. I think I've I think it's been about nine or ten funds now, one public fund, and uh and kind of dealt with that headache. And we decided to go ahead and stay private, just a little bit more uh sophisticated players that can get more involved and a little bit more room to uh to to improve and grow. And then with that said, we got Dennis Roberts has overseen all of our construction for our project. So he's kind of uh, you know, in essence, kind of at a global level now. So he's at 30,000 feet, kind of drilling down into the weeds if needed. But he's really kind of helping spearhead the communication between planning, uh, engineering, architectural design entitlements, down to getting contracts in place, getting construction moving, and just kind of offloading that to the right players and uh just oversee all the all the fun stuff that goes along with it. Because that's when the the work really starts. And then we got uh Steven Beagle, which is an amazing human being, guys. This guy has uh an unbelievable track record. I mean, with the with you

Meet The Paradigm Leadership Team

SPEAKER_00 2:40

know, he how many uh what's the high-rise Tierra that you have going on there?

SPEAKER_04 2:44

And uh, yeah, the Tierra is a condo project in Galveston, the first one in nearly 20 years on the island. It's 10 stories, 63 units, and they're not cheap. These are expensive units. It's a post-tension all concrete building. I think they start at about a million and a half, but yeah, that's the fun one. But my true claim to fame, as you know, Ryan, is the Pentagon innovation. So I handled that all right up until 9-11.

SPEAKER_00 3:10

Yep. And so we'll go we'll go back into some of your background, let everybody share their stories, and then uh so thanks for that. And then we got Eric. As everybody knows, Eric and I are just at this point kind of best friends. If you guys haven't watched my social media and haven't seen him, shame on you. This guy is pretty much, I would almost think that him and I think some people think you and I are married and ran off into the sunset together at this point, man. But uh, I am his uh his uh his grandfather, or what do you want to call it? To your son, not only the coolest uncle, but I think I'm like if if something happens to you, I'm taking your son. That's how this works. That's right, the godfather. That's right. So, so Eric and I are very close, but uh, I like to brag about him a little bit more than he will brag about himself. Um, number one in the state, number one team here in Lake Avasu, and I think you are number one as far as team in the country for EXP, I believe. So that's uh that's a heck of an accomplishment. You know, $300 million in volume, a very small team. I'm used to Southern California teams where you have 40, 50, 60, 80, 100 uh people on a team, larger dollar amount trades, and for him to be able to do the volume count as far as unit count is actually what's impressive because that's a lot of bodies, a lot of communication, a lot of escrows, just a lot of hand holding, a lot of bodies you gotta deal with. So very impressed by Eric. And as you guys know, he's also one of our investors. So he gets involved in every project that we we uh we we do. And then he's also focusing on the exit. So I like to think he's uh he's one of those guys who's pregnant with us, right? He gets involved and now he's selling. So he's intimately involved and uh emotionally involved. So he uh he he has a huge interest of making sure we sell because we don't make money until we sell, right? So it's always important. And then Rob. Rob has actually turned out to be one of my closest friends. I talked to Rob probably seven times a day. I'm waiting for him to send me his Verizon cell phone bill because I'd call on him more than anybody else, I think, on this team so far. Rob has been our our uh our backbone. This guy has been an absolute stud. He's traveled with me into Park City, and we're looking at all kinds of different architects and builders throughout the the country. And we've uh we've tailored some built some projects to around what we think is is the next movement and uh being a little more aggressive and forward-thinking into the future. And Rob's just pedigree is amazing. He's just been a rock. Um, he's very tied in here in the city of Lake Havasu, uh, kind of knows you know where all the bodies are buried, if you will. So that's always important to have the right team. So you guys kind of know that. With that said, I'll uh, you know, you guys also obviously know Dennis, but I'm gonna let everybody kind of share a little bit about their background and we'll go right into the barn caves. But Dennis, if you don't mind, just share a little history about yourself um with Western tech and kind of who you are now, and we'll just kind of go down the line real quick.

SPEAKER_01 5:39

Yeah, sure. I was uh raised in a concrete family. So structural concrete and civil concrete is my background. Uh got into um testing inspections, engineering, geotechnical materials testing uh back in 1989, and been working in the construction space ever since, either in the inspection and consulting category or as a general contractor. Uh Ryan and I met several years ago, kind of fell in love, and here we are working together today. Eric was uh the impetus of that meeting, and I think it's worked out really, really well. So we met on the golf course. We met on the golf course, yeah. We discussed family and life, and and we'd realized we had a lot in common. So, yeah, the uh the the projects that the paradigms working right now with right now are some of the largest in Lake Havasu. So it requires a lot of uh moving parts and and organization and coordination, but we're putting together systems and getting the right team involved that is pulling all that together every day.

SPEAKER_00 6:38

Yep. I appreciate it. Couldn't say it better, Dennis. I appreciate that. Stephen, obviously we know you're Mr. Pentagon, but share a little bit more about your background, please. Oh, thank you.

SPEAKER_04 6:46

And it's really a joy to be with this team. You know, I've enjoyed it, I think, for three years now, maybe three and a half. But um, you know, 46 years as an architect. I have projects all over the world, but most of them are in this country, and most of them are along the Gulf Coast of Texas, what's now called the Gulf of America. But uh, we've had some great ideas that came through this team, and when we get to the barn caves, we'll talk a little bit about those challenges from a codes and standards point of view, and we'll talk about the systemization of the barn caves from uh from a goal perspective. But yeah, I've enjoyed I've enjoyed a great career, lots of uh notoriety. I've written books on architecture, and I've taught architecture at the University of Virginia and at uh and at um American University downtown in DC. So yeah, my history is is broad and deep at the same time.

SPEAKER_00 7:44

Thank you, Stephen. Appreciate it. Eric, I already brag about you, but if you want to kind of fill some voids, please do.

SPEAKER_06 7:49

Yeah, guys, and uh for everyone on the webinar, thank you so much for your support as far as my involvement within the paradigm family. A lot of people make uh make a lot of comments uh from the marketing that's out there. People can see you know our integration with the paradigm team, a lot of accolades out there. So thank you guys for all the support uh going on. Uh I think now with paradigm storage, we are completely sold out building C through phases one five. So we're very anxious to start on building as a storage, also known as phase six. Um it's been another to be a part of a lot of the field decisions and some decisions that Ryan has made absolutely success of this project. We're very excited about again for building because Ryan mentioned uh we're a team of twenty. We operate as one of the top teams of all road bridges nationally, which is pretty amazing, amazing given the size of the hobby company. Um we're in touch with Ryan and his team almost daily uh strategically figuring out what we can do to generate pre-interest. Uh we're now working on the boathouse we have our first closing uh project. But overall, everything is going incredibly well, and I would not really be investing in this project and future projects if I didn't have a level of certainty that I was very comfortable with. So, with that being said, um I'm very happy to be here.

SPEAKER_00 9:29

Thank you, Eric. I appreciate it. Mr. Rob, rock and roll.

SPEAKER_03 9:33

All right, thanks uh for including me in uh today's festivities. I do appreciate that as well. Um I've been with Salberg Associates for almost 30 years now, and it's amazing uh when you look back at your life and see all the opportunities and the friendships you've made and relationships that you've uh had the opportunity to work with. And uh again, this team is no different. There's a lot of talent on this team. I am humbled every time we have one of these, it's uh the resumes that get belted out at the beginning of this thing. It's certainly fun to be a part of this team, and it's fun to be a part of the vision that you see uh taking place right before your eyes. Get a lot of updates for you guys today, and when we jump into it, we'll uh we'll share them for you. I think there's some exciting things, and uh you know, the city of Lake Havasu is very um much in favor of what Paradigm is doing, and they see uh Ryan as a visionary, and I think uh all of you do as well. That's why you're here today. So that's it for me.

SPEAKER_00 10:24

Thank you, Mr. Rob. All right, guys, let's get to the meat of potatoes. Here we go, barn caves. I'm not sure how many of you guys are able to see what's on the screen, but I'll just kind of read through it. Uh, we are kind of on the tail end of getting this permit for uh phase one, which is nice because at the same time we're still um you know grinding on phase two, and we're gonna talk about that, give you guys some detail. But I think what it's what's important is you understand that the size of this project has really been

Barn Caves Status And Big Picture

SPEAKER_00 10:47

an uh experience to work with the city. They have and will admit that their experience as well with this is uh they haven't had it. Uh the we we are bringing kind of a different uh caliber of product uh to the town. And uh a lot of times they're they're learning how to uh approve these uh buildings uh through this process. Obviously, you guys see I brought Stephen Beagle on, which is just a world-renowned architect. And you know, obviously, you know, Rob kind of paralleling him on the barn caves. What's what's really happening is we just built these buildings that are just so impressive and there's so many moving pieces. Not only from our client and investor perspective, that's why they love it, and people just can see the value once it's built, but really the the getting into the weeds of how it's built, the cities just really kind of scratch their head to try to pull it together. So, what I'm gonna do is I'm gonna kind of lean it over to uh to Rob and Steven and Dennis here in a second to kind of talk about some of the hurdles, but just to kind of give you guys a quick snapshot on it. We are about to pull the permit. We're on our last, we're waiting for one more last response from a third party on fire, which they outsourced the fire uh um uh protection out to. I think it's a company out of Phoenix, if I recall. So we're just waiting for that last comment. Other than that, we're ready to go. We're gonna go ahead and start grading. So that's cool because that's just kind of getting the clock started, anyways. So we uh I think we're already staked and ready to go. So I wouldn't be surprised if we start moving dirt next week. And um, and uh, you know, right after that will be, you know, a uh an approval for the residential, and uh, and we're good to go. So, real quick snapshot again on the project 93 units of single family. This is a mixed-use project. We do have a 44,000 square foot gym, which does have a pool, does have an amenity package, which includes uh as uh a um uh pickleball court. And what we did is we were working with, and we're gonna announce this here pretty soon. So for some of you that are following us a little bit more often on social media and watching our updates, uh, we do have a doctor that we have uh uh in essence came up with an agreement with and partnered with that's gonna come in and provide true healthcare services as well to our members. So ultimately we'll have a healthcare tenant in our buildings, which ultimately, from an investor's perspective, that increases the value of our building and uh having a healthcare tenant's a big deal. So uh that's that and being in Lake Abbaso, it's more relevant. So we'll be on kind of the um holistic health, you know, dealing with a lot of pain management, um, and just focusing on uh, you know, real doctor healthcare services. So it's kind of nice to be able to have all that in one. Uh 550,000 total square feet. We're at six phases. Five free phase one will be the gym. Uh, and then the last five phases will be the residential. Uh approximate start date for the residential grading will be December 7th. I'm gonna let the boys kind of talk a little bit on that. Uh Barn Caves plot map is uh is uh the preliminary map has been recorded. We're trying to get the final recorded, and I'm gonna let the boys kind of talk on that. Uh, we have some tax advantages, advantages, investment strategies associated to this. We're actively raising money and we're 60 months, 60 days out or so. We think we're gonna close it out because once we uh once we really start breaking ground, yeah. A lot of our investors and clients have been watching us or signed up to see us get that permit, have made commitments and ready to pull the trigger to start putting stuff on deposits. So we're getting real close here, guys, to finishing this out, which is exciting for us to not only break ground, but also finish the race so we can uh be full steam ahead. Uh with that said, uh Steven, why don't you share a little bit about the hurdles that you have dealt with with the city? Um I think this is important because it'll kind of pollinate into some of the other uh projects that we have in Lake Havasu, but just kind of how how how just really receptive the city has been too to work with us, which has always been great. But just share a little bit about your you know, coming from you, and then we'll kind of go off of Rob and then Dennis with the kind of the conversation we had about the easement this morning.

SPEAKER_04 14:32

Sure, fair enough. And thank you again, Ryan. You know, what is I'm gonna go macro to micro for just a minute. You know, the challenge that we all faced, everybody on this team with barn caves is that it's a new paradigm. We were looking at how to combine uses. You're combining a storage use,

Solving Codes For Mixed Use

SPEAKER_04 14:52

a garage use, a shop use, a gym use with a residential use, and you're putting it all in one shell building. And that's a challenge from a life safety and a codes and standards point of view. But uh the real the real joy in this is reinterpreting the codes and allowing flexibility or at least imagining flexibility under the codes. Sure, we have to provide health, safety, and welfare protection, but to put all of those uses and your lifestyle into one box was a huge challenge. And that's where the new paradigm idea comes in. And to take that, you know, a step broader. We've got our prototypes designed, we've got the steel designed, we're ready to rock and roll with construction. But the real challenge has been trying to find that least common denominator for what we have to do nationwide to meet minimum health, safety, and welfare standards for this product. So our idea was we have to systematize it. We have to come up with a with a new paradigm that works in terms of a design concept and it needs to work everywhere. Sure, every jurisdiction including Lake Havasoo City, they're gonna interpret the code their way. But we have to make sure that they're interpreting it at least the way we are, from sort of a minimum broad scope perspective. That has been a challenge in Lake Avazu City, but they have been, you know, all the staff have been very cooperative, and um I think they're learning at the same time that we are challenging them with code interpretations, and and we're there. I mean, we're ready for permit. But the goal overall, and I think Ryan, you the whole concept here is really Ryan's and Rob's, so credit where credit is due. You know, Paradigm is offering a new way to consolidate these uses into single structures that people can invest in and use. Uh, and then we're gonna package this. The idea is to systematize it into something of a kit of parts so that we can produce them in a larger scale and ship them all over the country. So the test case is right here in Lake Avace City, and we're uh we're really close. Rob, you want to pick it up from there?

SPEAKER_03 17:22

Yeah, I mean, everything that you said is is um it's kind of where we started this project. It started with a vision that started with with how do you take a product that is really, you know, it was it was kind of an evolution. We've got a storage project that everyone said, can I put a uh I just want to put like a one-bedroom, one bath type unit in here. I want it to be my place. I'm already paying for this storage unit, let me do it. And that was a code issue that we weren't able to uh circumvent without getting into some firewalls and and reclassifying portions of the building. And uh Ryan came up with an idea and said, Well, look, I've got this extra property beside me. Maybe we can, you know, you know, let's let's what can we do on this one? We started kind of laying out ideas and what we could do to satisfy that need. So every time we've found a need uh in the market, we've tried to find a way to address that need and come up with something that that uh is an evolution of that design. So this design and coming up with the barn capes, putting the you know the plan together was well, what are these actually gonna get used for? Big garages. You know, that was something that you know the realty team really, you know, Eric's team really came forward and said, Look, uh, you're not going to build these. I'm not gonna let you spend your money on these things unless you do the following. And it gives kind of a box of uh or a checklist that we went through box by box and said, okay, we have the large garage, we have the masculine field, we have the uh natural light, we have all of these elements that you know are good design practice, but also are things that like house who are essential. So that was one of the things. As far as the city goes, I feel like the city's been very uh easy to work with where we get into issues, is is there's parts of the project that have been encumbered by flood zones that we've been working through, and and the government shutting down didn't help uh FEMA to get us uh through that process. The good news is we're we're moving forward on that one. The gym itself, though, is the the shining jewel right now. This is almost at the uh we're at the precipice of having a building permit. We're waiting on one department to finalize their their uh approval. And uh our contractors look at moving forward as early as next week. So this is all good news coming forward.

SPEAKER_00 19:23

Yeah, thank you, Rob. Um what I want to do is Dennis, give me a second, then I'll let Eric kind of spill into it. But just to kind of share you guys, share with you a little bit what what transpired with us to kind of um push forward on this type of product. You know, I had Paradigm Storage, which is 225,000 square feet of essence man caves or boat and RV storage, fee simple luxury product right next door to this. What had happened was is in my phase one, when we delivered that phase, a lot of buyers

The Steel Construction Case

SPEAKER_00 19:49

were asking if they can stay in this in their units during the weekend when they come into town because they don't want to spend money on an Airbnb. But the the space was designed so well with you know insulation and just nice and cold in there because you obviously have a temperature control during the summer that you could literally live there. And obviously, you know, with codes and legally they can't. And so, of course, I had to say no, but that was something that sparked my interest. And given kind of where we were in the design uh timelines, being in the last administration and cost of living and inflation and what have you, we wanted to also focus on something that was attainable that we can build quicker. And then because we're already building steel buildings, I love the fact that we can do all of our horizontal improvements and we can have our a lot of our steel uh uh components being manufactured off-site. And then as soon as the foundation is poured, we're dropping steel and going up, right? Try to focus on speed and speed is is money. So that was kind of that part. The other bigger part was, and this is really important. I hope you guys can you really hear where this comes from. This is, I think, where the real stake and in the heart was for me. I currently manage a $100 million debt fund. When the pandemic hit, I moved my headquarters to Nashville. I wanted to get out of California for many reasons. What I saw was at the time, a lot of note buyers, the second, so the secondary market for note buyers faded away because interest rates spiked in June of 22. So when that interest rates had spiked, we knew that we couldn't fund loans and sell notes. It was gonna be a little bit different of a pattern and path moving forward on how we're funding loans, right? Because remind, mind you, these are short-term bridge loans, you know, ground-up construction financing, secured by a first trustee, low leverage loans. That's my background, that's my pedigree. So obviously I'm an underwriter at heart. With that said, when I what I saw was if you were gonna stay in California, I had to have lower interest rates to be able to get the money to put out because it was just the competition was so fierce. I started watching the interest rates that were being charged for these funds to the borrowers for ground up construction, and obviously the amount of migration and growth in the in the southwest or sorry, southeast was impressive, right? So we were like, look, we can go that direction, but one of the things that That was very forward thinking on the Southeast was barn dominiums. And so I started looking at the technology between how these steel buildings are being designed and built, and really started seeing how quick and well and the cost to build these because I was getting the loan request just as a private lender for ground up construction finance. So I'm looking at budgets, contractors, you know, where the material is coming from, manufacturers, engineers, architects. I'm watching everything because before I fund the loan, I need all that information. So I'm dissecting this as I would on a standard underwriting practice. But I'm watching how these things are put together and the speed and the timelines. And I had to challenge my clients and sit on the phone with contractors and say, Are you sure you can build on this time? Show me proof of concept. And there was already out there. So, you know, uh where it really started catching my attention even further was as most of you know, if I fund a loan, I needed like I need an insurance policy. That policy needs to be binded and fully, fully uh lit before I can actually fund that loan, right? So and paid for during during closing. When I when I was looking at the the insurance policies, what I was doing is I was taking a stick-built, lumber-built home. Let's just call it a three-bedroom, two-bath home. Okay, something simple. And I was comparing notes between steel built with structural steel and interior steel walls, you know, non-structural, down to lumber built. And it was already a big movement in pricing for the end user and for the builder's risk policy going with steel. So that really caught my attention even further because obviously, if we're worried about affordability down the road, we need to think about the end user and what it's going to cost to maintain HOA costs, insurance, taxes, and what the exit price is going to be. Those are all just standard components. So as I was drilling down into the insurance policies, I started seeing that there's even more carriers that would open up their doors to cover these types of uh buildings. So it really started, you know, catching root. And then obviously, all those fires that kicked off in California a year and a half ago, or whatever it was, changed the landscape for insurance. So builders' risk down to end user insurance is so much cheaper. It's about 60% cheaper. And when you're looking at numbers like we are or exit prices, that is something that is undeniable. We cannot just close our eyes to. We had to continue to move forward with those practices because I do believe that's the wave of the future. And then ironically, which is kind of funny, I sit next to a guy on a flight on Delta that was the CEO of a huge steel plant that was down, he was buying a lot of steel from Mexico. And this is when the tariffs got real bad, and it was just perfect timing. And I was able to really learn what's really happening, not just what's on news, what's really going on in that industry and what the prices were and what's happening. I said, okay, we're gonna come together and I'll continue to use him as a resource to pick his brain. But here's where we are, and this is where I think we need to hover. So that kind of pushed us into the overall design. I know some of you that know have invested that's on this, uh already know that story. But for those of you that don't, I think that's really important because this is, in my opinion, the wave of the future. You know, steel building methods is where it's at. You guys can log online, go on social media, you'll see barn dominiums are a big deal. People are you could buy a building for 60 grand and pop it up somewhere on a property, right? It's just becoming bigger and bigger, and we wanted to kind of stay on that on that movement. So um, okay, with that said, Dennis, do you want to talk a little bit about our conversation about the final plat for um the residential and then going into grading on that? So we can kind of talk about timelines.

SPEAKER_01 25:26

Yeah, we're moving closer and closer to that. As uh Rob had mentioned, we really got held up with the FEMA process. The Clomar is this uh study that basically says that you can go to construction. That got held up because of homeland security not being funded, uh, cost us dearly time, but we're back on track

FEMA Floodwork And Site Timelines

SPEAKER_01 25:46

with them, and we're hoping to be able to have an at-risk grading plan in the next couple months, which doesn't remove too many parts right away, but it gives us the opportunity to start looking at sources for our imports and uh making sure that we're getting prepared for underground. The underground is the biggest part of the horizontals. Horizontals are a massive uh part of this project. We have two percent grade from one side of this property to the other, so the flow is very minimal, and uh stormwater still has to be moved from one side of the property to the other. It's it's a massive undertaking just getting all that done. In the meantime, we are still coordinating and communicating with some of the utility providers, uh, giving us a few headaches on uh some of the property that they would like to have for easements, but we're at the very end of that. And um, I just had a communication this morning, I'm sorry, yesterday, uh, on um some of the last little uh requests that they're asking for, seeing if we can't negotiate something with them, stay out of all the horizontal way, and give them a little bit of land that they're asking for to uh get their uh electrical in. So we're right there. Once we have that, the final plat is produced, we get that to the city for final approval. That triggers all the other permits. So we're right there. Um it's gonna take some time to get all the grading uh process in progress, but um it's right there.

SPEAKER_00 27:11

Yeah, it's 42,000 cubic yards of dirt we're importing. Yeah, once we still it's really not gonna blow too much timelines about getting it going and letting that that start while the other approvals are are are in process so we can at least get that that ball moving.

SPEAKER_01 27:25

Well, that's along with the 1700 linear feet retaining wall. So there's a few moving parts there.

SPEAKER_00 27:32

A little bit. Okay, so on to the next. So the the big the big thing, Eric, let's talk about the market. I'm gonna give you the mic for a minute. Um, and I want you to kind of talk about uh what you're seeing, even feedback you're already getting over all the time that we've been you know marketing this, your own team as well, uh, about the Barn Cave sales prices and kind of your overall thoughts.

SPEAKER_06 27:50

Oh, yeah, we've been ready uh for this project, uh

Buyer Demand And Local Market Data

SPEAKER_06 27:54

anxiously awaiting. And you know, when we look at the have a suit market conditions, since uh, as Ryan mentioned, it is a simple property, you begin to introduce financing, which is not a luxury that we've had at Paradise Storage. Uh, we've been focused on cash buyers there. So the ability to finance this product is something that we project will really help us with sales along. Southern California continues to be very strong and predominant fire pool, or like have a city through high interest rates. We really haven't seen that demand altered too much. I mean, my gosh, we've sold a hundred and you know, I'm not even talking about uh buildings A and B, but our most recent phases during a tough residential market. We've continued to sell these storage units to cash buyers now to have the financing ability from the Southern California exodus. Um, we're very optimistic about that outlook. Uh, specifically in Habitat right now, inventory is actually down slightly. We've been hovering around 450 to 400 active residential homes. And as of this morning, we're at 480. So slightly down on active inventory, which uh you know, we're very excited for that, uh, given that we're on the brink of beginning phase one here for the barn case. But as Rob mentioned in the beginning, our team was instrumental in really sizing out these garages because if we have an oversized RV garage, you know, and we're we're mitigating the stairs and the objections that that brings with our elderly demographic, having the elevator in place, having the really large garage, we're finding the toy accumulation doesn't stop. It's not one boat anymore. One simple motorhome takes up your entire RV garage. We need more space, and that's what our clientele is really demanding. So having the uh genetical makeup here of these of these properties we were involved in and feel very comfortable about how they'll move in the market. Um, and uh that's pretty much all I've got.

SPEAKER_00 30:07

And then, real quick, so this is why I'm just gonna write into everybody who wants to go back to their questions and answers. Leah, I just responded to you. Um, what I wanted to do is just kind of give you guys a little more um, I would say a little bit more color on on what we're seeing as far as movement. Now, the volatility is huge, and this is important because I think we really are a good data source to give you guys some feedback. We are actively looking to raise capital. As you guys know, our marketing is just incredible. So we have a lot of inquiries and we're talking to people all over the country. We're listening to the fears, where the money is stored, 401ks, IRAs, retirement, 1031 exchange, tax strategies, tax advantages, what have you. What we're seeing is as the as there is more uncertainty in the market, people are just becoming a little more conservative and they're looking to diversify more of their wealth and alternatives and really going into more real estate. That's always kind of been a safe haven through any type of inflationary period. Um, but you kind of can't deny that there's just not a lot of land left in Lake Abbas, and the demand continues to go up. And with it being so heavily migration and baby boomers and retirement, you know, it's it's just where it's going. The wealth is in the baby boomers' uh pockets, and they're coming here, they're putting more money, money on deposit with the local banks. So, again, if they're moving here and retiring here, they're also moving their money here and they're putting their money on, you know, uh, again, with some of these smaller regional banks. We've seen several regional banks open up recently. This is important because then typically they go turn around and start providing SBA loans for small businesses and become a little of their own economy. So we're tracking a lot of that, which is important. Um, but like this is something that's real relevant. So if you guys remember, you guys are probably all gonna shake your heads, that big freeze that came through uh through through Stephen's backyard, through Texas, and up through Nashville and came into the Northeast just a few months back. I was back east actually taking care of my mother because she really, if something got real real bad there, she it would get gotten kind of tough. But the feedback I was getting is the amount of people that kind of took, you know, jumped in their RVs and got away from the freeze and came out here and parked their trailers. There wasn't an RV park that had one slot left. There was people parked on the street. And I believe, correct me if I'm wrong, Eric. I think there was like 550 listings on the market, and two weeks later it went down to 440 listings. It was like 110 homes went into escrow in like a week or two weeks. You know, so that that that's that's people going, you know, I'm tired of being you know cold, and it's time to get out of the cold and you know, a snowbird level thing and kind of give them come out here and stay warm, right? It's just people are making moves into the space because they just don't like the volatility, right? Kind of thing. So that and many other reasons when it comes to cost of living, taxes, health care. We can go on that, you know, maybe another way, but that is what's happening, and that's why you're seeing such a big movement and push into Lake Havasu. So again, as the as there becomes more volatility, you're seeing, you know, um more movement here in Lake Havasu. So, okay, so uh I think that's kind of it. Eric, thank you. Is there anything else anybody wants to touch on before I move to the next slide? Nope, we're good. All right, guys, I'll uh I'll make this quick for those of you that have already you know are logged in. You guys already know the investments uh strategy through three 31.5% IRR. It's an eight pref four years, 20 million we're looking to raise. We've already raised 12 or 13, and maybe a little bit more by now. And then we have 93 million or 93 units as well, and then our profit split is a is a 70-30. It's a very institutionalized standard structure. We just figured we'd

Deal Structure And Investor Terms

SPEAKER_00 33:28

kind of go right down the middle of the fairway, kind of show that we just have kind of more of a conservative outlook and we just want to, you know, kind of give people more of a banking feel. And so that's really the structure of this this project. So I'll make that make that quick and move on. Um, this is just a little quick uh design. I thought this was kind of neat because you can kind of see a little bit of a three-story design. Um, you know, Steven, you want to kind of talk on that? I'm not sure if you can see that on the screen, but you can kind of see that side that side pro.

SPEAKER_04 33:55

Yeah, I'm looking at it through older eyes than yours, but I can still see it. It it works. And uh what it what it represents

Elevators Fire Ratings And Unit Options

SPEAKER_04 34:02

is the the combination of uses that we've talked about earlier. You know, the garage and the storage use on the lower floor, and then the residential uses above. We have to uh provide a one-hour fire rating between the vehicles, whatever they are boats, motorcycles, cars, whatever is in that lower space. And those vehicles have fuel in them, uh, and we expect that. So we have to provide the fire rating between floors with the residential uses. And then back to Eric's point, you know, these uh bases are tall. You know, we're 19 feet tall with an 18-foot tall door uh going into these units. And when you look at what that means, you know, the stair that goes up on the opposite side of what you're looking at here, the stair that goes up has to have an intermediate landing. And you're looking at something like 27 or 28 risers to get up to the living route. Well, the elevator sort of begins that. You don't have to climb all those stairs, you don't need to be a billy goat to live in one of these houses. You can take the elevator, and the elevators we're using are pneumatic elevators, they're very cost effective. They do operate on a vacuum pump. We don't need an elevator pit, we don't need hydraulics, we don't need traction. It's basically a big vacuum cannon that sets you up in a tube to the upper levels, and these things are becoming more and more popular, particularly when you get to the residential level, you can have the glass enclosure uh visible. I mean just watching yourself ride up and down through your own through your own two-story residential space. Uh, there is an opportunity in these units to have an intermediate apartment sort of in the back within that 19-foot you know garage space. We can actually get sort of a just an apartment or a carriage house, so to speak, with a rear entrance, if we want to do that. So there are options here. And then back to my earlier point about systemization. Once the kit of parts is is oh, did we lose him?

SPEAKER_00 36:14

I think we lost him. It's okay. I know he was kind of out of bad. Rob, you want to kind of fill finish the sentence, maybe?

SPEAKER_03 36:21

Yeah, once all the parts are put together, this is this was designed with uh systematic design where you could come make components and and issue them as a building package that could ship anywhere in the country. And uh, you know, why stop there? Uh paradigm's always been a visionary. So the intention was always to uh, you know, once building codes are realized in the United States and the minimum standards are are met, we would look at going abroad. But that's that's kind of a future growth plan. But this design was designed to be something where you could interchange different finishes, you could uh, you know, different uh different panels depending on what the market uh would bear. Uh and also like when you buy a luxury car, they'll give you the option to have this, but if you want to pay this much extra, you can do this. It was kind of set up, so there was an opportunity for uh capitalization of the idea as well.

SPEAKER_00 37:11

Perfect. Yeah, and I agree. Okay, so a couple things for you guys to know, too. The reason why we really wanted to kind of offer this webinar was just going to give you guys a little bit of a background, but this is important as well. Right now we have, I believe, 47 units out of uh out of 93 already picked and chosen from investors on their lots. And those investors will get the preferred pricing once the capital is raised. And there's and all and anybody who's interested, we can get on a call and kind of talk about the strategy. There's some tax advantages, there's a rollover to ownership and so forth. We'll we'll we'll share with you on the on the call. But what's happening is a lot of a lot of investors see the value in this because they like that and they want to get in early on the pricing because I'm gonna go ahead and increase my prices uh when we go into the you know future phases. So it's nice because as you think, as you can think about it, you know, it's just kind of dumb it down. Let's say I'm a builder that's building a retail center and I have an Albertsons LOI and I have uh Best Buy is not a probably a bad example nowadays, but let's say you had a Best Buy, some big box stores, and you had some other larger institutional tenants. If I wanted to build a $50, $60 million building and I already have larger institutional class A, you know, triple A tenants, I can go to almost any bank and get financing, right? So it can show that, okay, here's the financial strength of Albertsons, here's the financial strength of this. Once I build it, here's an LOI commitment in the contract. So the bank's the likelihood of getting financing goes up, right? It opens up the doors too. Can you allow you to get competitive pricing? That's really what we want to do. Again, in more of an institutional structure, open up the door, give people tax advantages, understanding where the market's going, get some of these units already locked up. So now we have several, in essence, two phases already pre-sold. So now the idea is to go ahead and build and sell those phases, and that capital just rose over into the future phases. But whatever investors do not pick any more lots, which we're hoping that investors don't pick anymore, to be candid with you, and I'm gonna bring Eric in on this conversation in a second. But what we believe, and he already told you the cost per square foot on exit, we were lower on our pro forma. So we already know, given, you know, we started this a couple of years ago on our numbers, and there's already been a continued increase in appreciation in the area, along with a lot of growth potential, along with Apex buying, you know, 600 acres just uh northeast of us, you know, that's uh you know, slotted for like 1200 homes or what have you, you know, that would so this whole area is just uh is where the growth uh uh plate is. And you're seeing for you to get there, you have to go right past our our project right off the 95, is we're the main vein off the 95 to get to those projects in the back. So at the end of the day, I think we are seeing there's not a lot of land left in the city, and for the developments to really start kicking off like larger dollar number uh unit counts, it's all going to go this direction. So uh with that said, the reason why you know having an increasing the price in future phases means that, okay, we're providing a projected return to our investors. And let's say, and I want to disclose this, assuming everything goes as planned, which is not always the case, but let's just assume everything goes as planned. If we're able to go, okay, look, we hit our numbers on construction, and here's our projected returns for our clients. You know, if we increase the sales prices, those return profile may go up. And now our investors that originally bought in early, not only are going to take over their unit with the time comes with a fixed price, we're rolling over the equity for the gift. And then now they also have an appreciation component. So what's the real return on the investment? We don't really know, but it could be north of that 31 that we projected. So this is actually very sexy, and we're gonna bring Eric in on this conversation. But that's why we're trying to not raise any more money and give access for investors. Now we will, you can, because that we always give first writer refusal. But the ones that were early in kind of grabbed, kind of grab the bull by its horns and get that that uh um that benefit. But with that said, Eric, talk about you know where we started on on paradigm storage at phase one and where we're ending up now, because we talked about it today when I saw you at the gym about putting another deal in escrow um at seven o'clock in the morning. But just to give real quick, I when I did my pro forma on paradigm storage, we thought we were gonna exit those at 145 a foot. Where'd it go from there?

SPEAKER_06 41:20

I actually think it might have been 135 a foot, Ryan. Um, but uh essentially, yes, we you know, and and this is goes, I mean, all credit to Ryan on on a few changes he's made to how we've delivered these units, but we've been selling all day long at 175, you know, 180 a foot, you know, most recently, but for our final phase, we plan to increase that almost 10%, and we're very optimistic about achieving $200 a square foot over on paradigm storage. I think, like Ryan said, not only is there a lack of uh land that you can develop storage units. I mean, that's truly remarkable in its own space. I mean, the clients call us to want to try to secure a lot of uh uh larger parcels to develop storage, and unfortunately, it's just it's not even worth the conversation because it's not possible in like Amazon. And even more so on storage units, everyone thinks that there are a ton of storage units available and that it's way oversaturated. It's actually a huge misconception. I have so many agents that reach out to our group asking what we have coming online because if you are currently looking to purchase a unit that has insulation and climate control, the only place that you can buy right now is paradigm storage. And that's why I'm always bugging Ryan and Dennis at a construction for more units to come online. I actually told Ryan, I said, I wish we literally had another paradigm storage in like happy because the demand is so fierce, and it's even surprising for us to just get those phone calls even now in 2026 when there are storage units all over the place. But the fact of the matter is a lot of those units are sometimes there for laser, maybe you can get an occasional rescale unit, but that's a steel box with no insulation that turns into 180-degree oven in the summertime. So we really have the market right now for paradise storage now for marketing is you know, when you add the idea of a living component on top of the storage unit, that's the one thing that paradise storage doesn't have is that living. So the fact that as we talked about not having the uh you know the only access to the living stairs would be a elevator and then having the very elaborate community center of the and the pool that takes care of the injection for those that want to have backyards and pool areas. Um you know, we pretty much hit the mark when it comes to marketing, but you know, again. Financing is a huge deal, so to make a bad delta footage obviously more than when you have that financing ability, um, we expect to be a pretty hard price for um you know once we get to that stage we can't go pricing just yet because this is a residential subdivision, and once we have our subdivision report, and we can get specifically pricing as minute proof of concept. We're about 35% over the original projection for our sales.

SPEAKER_00 44:36

Yeah, and I'll give you guys kind of an idea. Thank you, Eric, because that's important. The um the guy right next to one of my units that I'm in now, he just bought one of our largest units, 565,000 square foot or $565,000 uh man cave, drive-thru 80-foot garage, 40-foot wide, and he bought a two and a half million dollar MTI center console, brand new, had it delivered, has a gooseneck trailer, sports chassis, and a couple other things. He's got probably three million dollars worth of toys in that garage, and he needed it right away. I mean, he was one of the guys going, hey, and then he brought his truck and trailer over there and made sure he can get it into the driveway and can get it and out of that that that that uh building. And you know, everything obviously worked out because we designed it for that, knowing these boats, trailers, and RVs are getting bigger. So, you know, this is the type of people that are in, you know, this this project. These are what people want. It's not only just investors that are looking into, you know, investing into the upside. The people that are actually buying these are amazing. Example, you know, my investors that have all committed to to buy these units, if you were in my shoes, I know every single one of them now. So I can tell you where all my friends are all buying lots and units inside the barn caves. And it's so cool because I can tell people, hey, I want to buy this unit. Is the neighbor cool? And I'm like, he's really cool. I know him really well. You know, it's just a it's just a it's what people are looking for. They're spending their money. They just the life has been kicked them in the teeth over all the years, and they just want peace. You know, we're not gonna allow Airbnb, Airbnbs. We're looking at putting pavers in this thing. It's you know, gated in private. There's just, you know, we're keeping our HOAs low. You know, you have the gym and the amenity package with your doctor there. You got pickleball courts, you got, you know, it's just a culture and atmosphere that people are really wanting, and we're just trying to deliver and hit that mark. So, okay, so real quick, um, I don't know, Steven's maybe up there. Rob, let's talk about real quick square footage, smallest and largest unit. So sorry, but we can close the gap on that. We'll move on.

SPEAKER_03 46:27

Yeah, absolutely. So on the uh the barn caves, we've got uh 2,900 square feet of uh living space that's includes the uh potential fourth bedroom. Uh square foot of garage on building A is going to be uh just over 1,500 square feet, and then patio wise, there's about uh 275. Uh building B is the smaller unit, there's 27 of those units of the 93. It's uh 1,590 square feet of living, uh, 1,300 square feet of garage, and uh 275 square feet of uh patio as well.

SPEAKER_00 47:01

Perfect. Thank you. And by the way, everybody, I make fun of him for the way he says garage too. So if you guys want to write him a message and say, you say garage weird, it's okay. We all we all make fun of, he's but it hasn't changed for 30 years. So okay, well I've heard that.

SPEAKER_06 47:14

I literally just thought of Rob and how he says garage and how that's the most interesting enunciation of the English that I've never heard.

SPEAKER_00 47:24

It's all right. You know, he builds garages for a living. I love you, brother. We're gonna talk about the other ones you're designing for me right now. Okay, guys. This is uh so that's onto the the bar off the barn caves and onto the flats. This is uh this one's got a little special place in my heart, too. Obviously, we pour a lot of our energy into these things, and you gotta fall in love with it to really get it to turn over because it's gotta be a passion because you got to fight tooth and nail all the way through every type of project. This one's really neat. Um,

Paradigm Flats Downtown Vision

SPEAKER_00 47:55

we've had a lot of investors, I would say, diversify now and start parking some capital into here, especially the newer investors that are being introduced to our project or our platform overall. Uh, the reason they like this, it's a little bit shorter term. It is right in the heart of the city. This is a four-acre lot. Uh, and in fact, you know, I think Joe, our videographer is on here, we're gonna be uh extracting the recording from the city on the approval that we had on it last week and kind of clipping it out, but to kind of give you guys a little idea of what some of these council members have said. These are people that have been agents for years and they have seen, you know, builder and developer trying to figure out what to do with this lot, and they've no one has been able to figure it out. And we came in, and with Rob's help and you know, our team all kind of coming together and figuring out what we can do here to make it work financially, timelines, all the fun stuff. And it looks like we came up with something that's uh that's gonna work. So very excited about this. Um, we're calling it Paradigm Flats. It's a little bit of a hybrid between barn caves and uh and uh paradigm storage. So instead of three stories like the barn caves, and it's a detached, you know, single family unit. This is they are uh townhomes, but they are attached walls. They are still fee simple, so they are you know for sale, regular residential trade. You know, we are staying away from condos for many, many reasons. But these are uh you know shared walls, fee simple uh townhomes. So the pricing is gonna be a little cheaper as far as exit price. So you have your big garage down on the bottom, like you we do on the barn caves, and then you have your living space on the second floor, which you can kind of customize uh the way you want it, whether it's a big studio, man cave feel, you know, one bedroom, two bedroom, what have you. And then you got some cool stairs, uh, which I plan on doing some floating steel stairs to get up to the third floor. You have a little balcony on the second, and as you go up to the third floor, uh you have a rooftop deck. And depending on which unit uh you're in, the views of the lake are stunning. As an example, this is on Swanson and Smoke Tree. This is downtown right off of McCulloch. So, for those of you that know Lake Avisu, it's right behind Albertson's and Goodwill. This is the big parking lot that everyone knows it's a parking lot for the big events that are downtown. So uh I think we have some people that are gonna be mad at us because they don't have free parking anymore once we start building this thing. But other than that, uh, you know, we we love everybody. If any of you are mad at me for you know taking your parking away, but uh we got to do something with it. So uh we like this one because it's it's really kind of neat. We wanted to bring a different spin. Uh a lot of the finish work we're gonna allow pollinate uh between barn caves and the flats. But this is where, you know, I think um we spent a lot of time on the design, again, because we had to compress costs and really make sure we're doing the right thing here. But I uh I'm I'm a big advocate of uh Park City. I love being up in Park City. As some of you guys know, I've been working with developers and builders that have built multi-million dollar homes throughout the country, a lot in LA, Beverly Hills, Bel Air, Malibu, what have you. And I wanted to kind of bring a different polish to Lake Havasu, not only just the barn caves, but the finish work and the design. And so I ended up calling Rob and said, Rob, it's not ski season, but come on up, hang out with me for a little bit. I want to show you some properties that are being built out here in Heber and some of the other places in Park City. So we spent a week together going out, looking at all these builders, looking at pricing, kind of getting an idea of material. And we really came up with something that I think is absolutely stunning. And so for the price points that we're gonna sell these at, I mean, our list of buyers is incredible already for this thing. I do not believe we're gonna have a problem moving these at all either. Um, so definitely excited about that. Um, this is where um uh just gonna talk, talk bullet points to 68 units again, fee simple. Uh all the the living spaces, second floor, third space is the uh rooftop deck. Um, you know, it's uh it's more on the attainable, affordable housing. I never want to say affordable housing because some people think it's low income. That is not the case. This is what I call attainable. This is more in lines with, you know, sometimes people have first home buyers or people that want to do lock and key, you know, no big overhead, but they want to get access to you know a smaller unit. They just want to, you know, not spend a million bucks on a house. This is it right here. Um, and then you're in the heart of town. And when I say the heart of town, it's two left-handed rock throws away of old town downtown, and I'm right-handed. So, you know, you you can get there with a a couple uh a couple lunges and your set. So you're downtown. Um, phase one plans. I think we I said we submitted it. I I apologize. We haven't submitted it. We are in the middle of getting to submit it. Um, we're still actively raising capital. We're about 50% in commitments. What we did is we went out and raised the capital. We don't need it on deposit yet, but we do have our commitments and uh and the location obviously is key. So I'll go ahead and hand it over a little bit to Rob. Rob, if you don't mind, just kind of talk a little bit about the key features of the of the project.

SPEAKER_03 52:34

Yeah, so this project was a lot of fun. Uh this one that Ryan said we were gonna do uh do this one and go fast. And we did get a couple of uh ripples from the city, but we are uh at the last phase right now, getting the preliminary plat completed with the surveyor. Uh we'll be making this submittal within the next two weeks, I believe, to the city. And uh each building is pretty well similar with the finishes. Uh the one thing that Ryan didn't do me very good justice on is the exterior from uh McCulloch and Smoke Tree and and um you know at Swanson is is really it's really a good mix of materials and roof lines. I mean, what you've seen was an interior view, but what we actually have on the outside is uh you know a mixture of materials, similar to what you'd see in the ski chalets and in uh park city. And a lot of time was spent kind of analyzing some details and and looking at how they chose to resolve some design challenges. We kind of tried to apply some similar logic, but on a replicatable and cost-effective uh means. Uh, these things were designed as as wood as opposed to the uh metal of the steel. The reason being is we wanted to be able to get them up uh quickly, and we felt like we had more uh opportunity with workforce to get the wood designed. Interior features, uh, you know, European style cabinets, uh, steam showers are an option, uh rooftop decks that are panoramic. I mean the interior design, some of the buildings have elevators depending on the size. They range in size from uh you know 1900 square feet of living to 850 square feet of living. There's this is something for everyone in this development. If you're here just uh as a desert dweller that wants to run around in this can't a m and and do some exploring, we've got the unit for you. If you'd want uh your MTI, we've got the unit for you. This is these are the things that uh really was important, but to make this project work, we looked at seven different opportunities, seven different uh layouts for floor plan sizes. We looked at replicating something from Denver that uh Ryan had done, and one from uh San Antonio area that Ryan had done, and had kind of settled on this because when we said all of this stuff was gonna happen, Eric Adalia came in and just blew the whole thing up. And he said, No way. This used to be down Denver. And uh yeah, we kept pushing and he kept pushing back, and his arms are huge now, and uh we're all scared of them. So that's what we did. We just made it happen.

SPEAKER_00 54:58

Yeah, we so one of the things I try to do somewhat well is uh we are you know big kids, you know, that it's like Legos, but there is a difference between you know building something and then selling something. So what we did, and I thought was really smart was we brought Eric on and his team and some of the biggest um um unit uh players in his team, and they sat down and said, Hey, this is where we need to be, and this is uh the key features that you absolutely have to have. And to be candid with you, at some point we didn't think we were gonna be able to do it, huh, Rob? I think that's where it really came down to.

SPEAKER_03 55:32

There's a lot of infrastructure that has to go into this. And if anyone uh wonders what kind of task that is, I'm not sure Ryan wants me to share all the numbers, but I'll tell you what, uh, you could buy a small community for what we have to do for infrastructure on this project, including the traffic signal that the city is seemingly opposed to, uh depending on which council member you talk to and what election year you're in.

SPEAKER_00 55:53

This would be something that I would, and correct me if I'm wrong, I don't think I've ever even said it to you guys. So I'm just saying it here, but I would say this is kind of like a huge footprint of downtown, like nothing else has been built like this downtown. Would you say to Dennis?

SPEAKER_01 56:08

Absolutely. Yeah, this represents a keystone project for Lake Havse.

SPEAKER_00 56:12

Yeah. So, Dennis, you want to talk a little bit about this this site for me, please?

SPEAKER_01 56:17

Um, this site and me, just like you, it goes back. I'm I'm kind of uh very connected to it. Started working with it in 2018 and uh looking for a way to find somebody that could develop it, brought it to you um after we twisted and we came to terms with it. Uh the problem this project has always had is its encumberment with a gob of utility easements that nobody can really figure out why they are where where they're at, but it had kept the property from being developed for years and years. Um, my best play, Eric and I talked about this a couple years ago, was about 260 apartments on podium-style parking. Uh, it was outrageously expensive, and the ROI was just not there. Uh, so what Rob has conceived here um working with the utility providers, getting their buy-in and getting them to move everything out of the way is hugely costly, but it provides us a blank slate, a piece of property that we can actually build something special on and uh obviously get the returns that we need to, means that this is a property that's design restricted to uh density requirements that we couldn't do anything less than 68 units. So very, very interesting project. Um, a lot of moving parts again. I keep saying that, but uh the city has thrown us many curve balls. We have been able to get through them all. Uh the last meeting with city council gave us the go-ahead and we're ready to roll. Again, another couple of weeks, we'll have that uh preliminary plat. Everything is kind of coming together all at once with all these projects.

SPEAKER_03 57:54

And one thing just to add in before you go on, Ryan, I think it's really important, and if anyone wants to go see this documented, the uh city council meeting, they did put us last on the agenda, but they had some of the nicest things you'll hear about a developer. And I'm not trying to pump Ryan's tires, but I mean the honest truth is they love what Paradigm's doing. They're very much in support of what Paradigm is doing. The city of Lake Havisu feels that Paradigm does put together a very quality project uh project and has offered assistance in any way that they can to help us move forward on getting these projects done. And that includes working with the fire department representatives to get the last comments resolved on the gym and getting through the uh you know the FEMA shutdown, but they were uh you know integral in helping us to navigate some of that stuff as well. So the city definitely, yeah, if you have the opportunity and you want to go look at a uh city council meeting because you have nothing better to do, you'll see some really nice things coming into that.

SPEAKER_00 58:46

Yeah, thank you, Rob. I appreciate it. By the way, Steven, I know we lost you and you came back. We're gonna go back to the barn caves here in a little bit because I want to talk a little bit about the steel structure because that was some important stuff. But we lost you. So we'll go back to that in a bit. So, Rob, thank you for that, my friend. All right, so let's just kind of keep pumping forward here. So, guys, as always, I just gonna make this quick. If you want to get involved and invest, 24% uh is our projected return. That's a two and a half year investment, 68 units, $50,000 minimum, must be accredited, by the way. For the full disclosure, every investor must be accredited. We do verification, we're very compliant. And uh we'll uh if you are interested, we'll get

Flats Returns And City Support

SPEAKER_00 59:22

Matt on the phone and chat with you. But I think that one uh as well as a 70-30 split, if I recall. Um, and uh so again, very institutionally structured. Okay, let's move over to uh the the last and final one, and then we'll touch base real quick back on the Barn Cave steel structure because I want uh Steven to talk about that. That was actually one of the reasons for the podcast so or the webinar. So I want to make sure we touch on that. Um, okay, guys, so this is the latest and greatest. So I want to tell you a little backstory on this. Um, my background, as you guys know, on the debt piece, debt side, uh in 2008 I lost everything. I started kind of at least cutting my teeth and was able to put food on the table by doing distressed asset workout turnarounds. Uh, as you guys know, I and I mentioned earlier, I manage a hundred million dollar debt fund. Again, it's a hard money lending uh platform.

Tennessee Expansion From A Foreclosure

SPEAKER_00 1:00:06

We lend money to developers and builders throughout the country. We typically operate in about 14 states, which most of the migration is going to, and uh people are just running to, if you will. Again, low taxes. There are many different little bullet points why we we focus on lending in those plat and to those areas. However, this is just uh if you guys can see some of the pictures. I don't know if all of you are actually able to see the slide, but in the very background, that is Nashville. So this is uh about 22 minutes north, if you're on the highway, uh, from Nashville. You have Old Hickory about six miles away from there. Um, as you guys would expect, I'm gonna be looking at migration and spending habits along with people that are looking to park their boats, RVs, and uh and uh you know, capitalize on that market. My feasibility study, which I'll touch on here in a little bit, was unbelievably incredible. Um, I don't want you just to take my word for it. I'll send you a full write-up on it. Uh, all the way down to the mixed-use health and wellness center that we are gonna have in it, along with the 80 units of boat and RV storage. It's going to be a Paradigm 2.0 product. Obviously, we know it well. And given the demand and deficiencies of this product in the area, we think we're gonna hit it out of the park, maybe even better than Paradigm Storage. So uh the data is there to support it. Uh so what happened is I lent money to a builder, a developer who wanted to develop storage. And obviously, I know what that is like. And so we lent him money, uh, 50% on the value of the land. There was a home on there, and the idea was to tear that house down. So when we got the appraisal, I also wanted land value without the house. So we only lent money against the value of the land, not with the house, knowing that he will be tearing it down. So after he went through planning entitlements, um we you know he wasn't uh he was unable to make his payments because it took him too long. And really what he tried where his mistake was is that he was trying to roll up the property next to it to try to get about 15 acres in total uh to develop. And so he really slow played this, and that's where his mistake was. Um, he kind of ran out of payments. We tried to give him extensions, list kind of goes on. I have a fiduciary duty, we foreclosed, pulled it, uh, took back the property, and now we're repurposing the asset. So ultimately, this is a distressed asset play that we already own the property. And uh, and in essence, pointed off that uh the debt piece was about a million bucks. The value came in at 2.6, so we're walking in with equity. I can turn around and sell it and walk with one six if I wanted to right now. But given the migration and the data, we wanted to kind of continue to expand and make a little bit more money and uh and kind of create some more wealth opportunities for not only our families, but for yours. So with that said, we are uh we sat with Rob and said, Rob, you are the king of uh storage units for us. Let's see what you got for me. So looking at this, it's I think I believe it's 4.95 acres. And what we did is we went ahead and uh carved out about an acre and a half or so for the front piece. There's 15,000 cars a day that go down this road. So it's a main vein, actually, in and out of Nashville. So it's very, very dense and growing. Uh, when we're looking at the feasibility studies, you have 244,000 registered water vessels a year in this area. It's absolutely incredible. The lake is much larger than Lake Havasu, if any of you know old old hickory, much more dense. You have homes on the water. There's no dry storage, a lot of marinas. Uh, even the feasibility studies talked about uh the Corps of Engineers approving more marinas are going in, more restaurants are going in. Very forward, uh, advanced thinking cities. They move a whole lot quicker, which I love. Um, but uh, you know, this is this in our our in our opinion is a rather decent opportunity. Um Rob, do you want to go ahead and talk just about the just the project itself? And then I'll kind of fill some gaps. But um, again, it's 80 units of uh boat and RV storage, and then we have a 10,000 square foot facility on the on the very front of the property. That will be a health and care, uh health and wellness center as well with a medical tenant. We're actually mimicking the model that we're doing at the Barn Caves, the data supporting it. And I'm actually sitting in our headquarters that's now a fitness center as well, uh, that I can show real active data, which we're gonna have our last slide too. But Rob, talk a little bit about it, please.

SPEAKER_03 1:04:08

Yeah, so we were uh tasked with coming up with a with a site plan that would meet all of the criteria for the Goodlitzville, Tennessee uh planning and zoning um ordinance. Went through a couple of different iterations. There are some setbacks, uh some green zones, and a few um just to keep in mind as far as the exterior of the building. Um they've had they've been actually very interactive with us. They've um conducted a couple of meetings, one in person with Ryan, and a couple over the telephone with us, and have given us the ability to uh meet them for their planning and zoning meeting this coming uh July 6th, where we'll sit down. We're at the end of the uh end of the uh agenda, they have kind of a discussion topic of things that are coming uh in the future, and we're gonna go through the project in in great detail, kind of talking through why we think it's a winner, why we think it's gonna be successful, and how we're gonna comply with the codes. There's a few uh nuances. One thing that they are, you know, we're we're by right approved zone, but there is um one of the nuances the codes they do require us to go through some certain entitlements, so we are we can talk to them about that. The following day, they put us on their uh BZA meeting, which is like their board of zoning appeals, and we'll you know present our case in more formal detail and see if we are uh you know a good fit for what they're looking for. We're pretty confident based on what we've talked to the uh planning and zoning director about, um, that this is something that they would be in favor of. And as long as we meet their uh aesthetics on the building, which is a certain amount of uh stone or or stucco or siding other than metal, um, and we're pretty confident this is gonna move forward. So we're excited to see what next week's meetings bring.

SPEAKER_00 1:05:44

Yeah. Dennis, you want to talk a little bit on that too? Some of your conversations you had?

SPEAKER_01 1:05:48

Yeah, when you brought this to me, I got on the phone with the good list girl right away. Um, really great people. Uh interestingly, nothing like this seems to have hit that area. So So uh the interest was fairly high, and they had a lot of questions about what kind of uh product this would really look like. These renderings are fantastic, um, representation of I think where we'll end up. And uh, we got the density again on the uh storage that that helped make all of this work. Um, that meeting that you've got coming up uh will be a big uh one of the few obstacles, probably one of the big obstacles that that is going to really solidify them and their understanding of the project. So for them and the understanding of the project. So this is uh a big um step into continuing our move into Tennessee.

SPEAKER_03 1:06:41

Yeah, one thing to sorry, Ryan, one thing I think we'd all agree too is this is a pretty conservative play for Paradigm, being the fact that these are sized at a 20 by 50, as opposed to swinging for the fences like our Paradigm storage product has here in Lake Capestry, where we've got units as big as 2,900 square feet. So this is really just a good uh middle of the road kind of let's make sure it works kind of deal.

SPEAKER_00 1:07:05

Yeah, no, I totally agree. And that's that's one of the important components. We we aren't worried about the data, but you know, really have to kind of be careful over the size of the lot we had. So there's a lot of consideration on how we had to make it work, but it's true. We wanted to be kind of a into something that's a little bit smaller, you know, 20-foot-wide units instead of 28, which is very common to paradigm storage, 50 foot deep, which most common is 60, you know, and then we have some really large ones, like Rob said. So these are all gonna be very consistent. And what that really does is just opens up, you know, the pool for larger buyers. Paradigm storage, I think, you know, Eric correct me if I'm wrong. We had one buyer buy 18 units on the 1031 exchange. So we've had a lot of tens and nines and eights and so forth. So, you know, that's gonna be probably a decent size of our buyer pool. Um, and if you guys want to take a wild guess, who's gonna sell these things? So take a little wild guess. I think Eric's gonna be the one moving all these things. But the point is that um, you know, this is a little more of a conservative project, and the land was kind of given to us. So it makes it easy to kind of go in and figure out what we need to do and and uh pop it up. So and the medical tenants are important. Uh a lot of these other car caves, and this is something that I really wanted to consider. So you have a company called Rally Point. If you guys want to get a take, uh look at it, Google it. They're in Hendersonville. Really cool product. They only have two units left. They're selling these things for $326 a foot, I think, is on average. They were tracking anywhere between $285 and I think now at $326. I could be wrong, they may have sold the other two by now. Uh, but they only had two

Why Add A Health Tenant

SPEAKER_00 1:08:29

units left when I looked it up about a month ago. Um, they uh I I've walked that project well a long time ago. I've seen it now completed. I've seen it now go all the way through the construction process. And uh it was very, very uh impressive. Now, I personally think, of course, I'm biased, so bear with me, that we have a superior product. Our driveways are larger, our units are larger, our design is nicer. Uh, we have a lot larger unit count, it's a bigger community. And the one thing that I've seen about a lot of these car condos is that they have a common area that no one ever uses. Now, mind you, and I want to I want to just this is our experience. I have 208 units. Rally Point has 36 units. This ours have 80. I have 208, and there's nobody really there, right? So it's not like people go there and actually really hang out. You'll have two, three, maybe tenants that are there consistently, but it's not like you think it would. So having a big common area that's be not being used at just more cost of an HOA, right? I can go into the same practices of the barn caves, but it's the same, it's the same concept, you know. So we wanted to kind of get rid of that, you know, uh common area that no one's gonna use, it's just gonna cost money. So what we did was, and again, the city though also required some sort of retail against the street because it they don't want, you know, and I don't blame them, you know, storage units against the street. They wanted something uh with a little more curb appeal. So retail, because of this whole entire corridor has that already, we had to kind of think this through. And since we're already building a health and wellness center, we might as well just populate that. And we've already done it. So now it's like we can do this on a 10,000 square foot space, no problem. So that's really been kind of the the common theme. The feasibility studies where we're hanging our hat, it's important for you guys to know, like who are, you know, from from running a business, having a healthcare facility, we there is tax advantages on this. We are doing a cost segregation study on the building. We are passing those credits over, you know. So all of those little tax advantages are inside of the investment, which we can talk about if any of you guys are interested. Um, well, uh, Rob, I think you and I are meeting uh Monday morning. Well, I'm gonna meet you Sunday, but we are meeting Monday morning. And uh next Monday we're gonna be at the city of Goodlitzville. So yeah, that's exciting. So um, and we've gotten good feedback from pretty much everybody. You know, we wouldn't go into this if we didn't have some behind-the-scenes conversations with uh with people that are in the area or in the city. So just to let you guys know we feel very comfortable. Um, real investment structure. This one's kind of neat, just kind of given uh the design and the layout and phasing. Uh, we are going to be at a 30% return, very similar to the barn caves. This is going to be a three-year investment. Our performer is showing 28 months, but let's just say three years. Um, we are uh total project cost is 18 million. Uh we are raising, I think we're raising, I don't think we have it on there properly, but it's we have a 12% preferred return. So in essence, it's a 12% cash flow. It starts at year one. Two sets of dividends uh out the year. So every six months you get a dividend, a 12% for the year. So two dividends a year. So you get a cash flow component of 12% on your money, and then you have a big kicker on the back end, so you'll have uh a 30% return uh on the on the back end. Uh the total capital raise is four million. Total net profit to our investors is 4.8 million, and it's a 1.62 multiple. So uh moving on to that, I'm gonna kind of jump back over to the barn cave. So, Stevie, can you hear us?

SPEAKER_02 1:11:45

Yes, can you hear me?

SPEAKER_00 1:11:46

Okay, yeah, we got you. Okay, I want to talk real quick. Let's kind of bounce back and forth. So forgive us, uh, you know, to our audience. We wanted to, we just launched it earlier. So I want to talk about the steel structure and some of the moving pieces with inside, not only the barn caves, but the gym. So let's talk about the design, the structural steel of the

Systemizing A Kit For Nationwide Builds

SPEAKER_00 1:12:02

of the gym, uh, wrapping up the gym, and then also the structural component for barn caves.

SPEAKER_04 1:12:08

Yeah, I'll be really crisp with this, and I apologize. I'm joining the call by phone, and every time somebody calls me, it knocks me out of the call. So I apologize for that. So what happens here is is strange. So I hope it doesn't happen again in the next five minutes. So, with the concept of the barn case from a structural steel point of view, uh, Ryan is correct. Steel is sold by weight, and we end up trying to minimize the cost of the steel by minimizing the weight. So part of the plan here was to bear the structure outside wall to outside wall. We want to free span over the garage level. We want to free span that 19-foot vertical space from 28 to 28. We want to go out exterior wall to exterior wall, full span of 28 feet without any interior columns. That reduces steel, it increases the vertical, the dimension of choice, but we're still looking at efficiency of cost, and then the speed at which these things can be built. So now coming back to the upper levels, once we've spanned outside wall to outside wall on the lower level, you have a little more flexibility. So conceptually, and this is something I think Eric can appreciate, we're building a free span box three levels high. The customization comes on the interior layout. You know, we have our prototypes which show where the kitchen's gonna be, which show where the units are gonna go, and the heating units and the bathrooms. We show all of that in our prototype plans, but we're not locked into that because we're free, we're free-spanning outside wall to outside wall. So an investor or a buyer or a user is gonna come in and have at least the flexibility to modify that internal floor plan. Still using steel studs for the for the upper levels, interior steel studs, 18 gauge metal probably. Um, but we're 19 feet floor to floor in the garage level, we're 12 feet floor to floor, and the upper two levels, so that's 24 plus 19. We're at 43 feet of uh free span, 43 feet of living space vertically. So you've got lots of drama in space, lots of verticality. That allows us to go the 28 feet outside wall to outside wall and work all the ducts and all the equipment into the barge. And then we uh we went one step further with our systemization. We're looking at okay, can we panelize this thing? And what does panelization look like? Can we ship it on a truck, you know, one house at a time? Can we ship it on a flatbed or two flatbeds, deliver it to the site, and put it up like a house of cards, you just lift it up with a crane and stack it in place and bolt it down. So we've played with several different concepts, including something as simple as an umbrella, you know, or or one of those beach tents that you see where they're telescoping. You hit a button, you pull up the structure, it telescopes back into itself and you take it down. But at least in terms of the convenience of construction, you want to deliver it on a truck, put it telescoped into place, or keep the uh erection time to a minimum. We're trying to stay away from conventional bar joists, we're trying to stay away from conventional concrete floors. Our planking system is uh prototype where we're basically delivering floor plants that are 12 feet by six feet, and you're dropping them into the floor so that everything you know fits together like uh like tinker toys or Legos. So that was the uh that was the cost the cost implications of that are tremendous if we're able to systemize it the way we have imagined it. And this is what's fun for an architect is you take a conventional box and then you try to get everything you can inside the box, but you have to think outside the box in order to make that work. Even the condensing units that service the uh heating and ventilating, you know, we're looking at two five-ton units to keep these things cool. You know, one unit services basically the garage level, and the other unit surfaces the upper two. So you get two five-ton units, all those condensing units are sandwiched in within the footprint. They're an outdoor alcove that can be serviced from the outside. So lots of great ideas, and I think when we got cut off, when I got cut off, we were talking about the elevators. We're looking at pneumatic elevators. We don't want to dig elevator pits, we don't want to put plungers in the ground or have you know hydraulic hoses everywhere. We don't want we don't want hoists with a lift bar overhead to lift the uh elevator cab into place. We're trying to use pneumatics, which is still an electric system, but the electric pump that pumps the air uh is is a minimally invasive cost factor in the overall budget. Other than that, construction in my world and along the Texas coast, because of the highly corrosive environment, you know, we look at panelizing things all the time, the stereo studs and even uh plate steel on the outside of the studs so that we can deliver it uh on a truck without racking and just lift the put the panels in place. So there's lots of ways to minimize the time and cost on the front end, but it does still allow for flexibility on the interior layout if somebody wants to modify it in some way.

SPEAKER_00 1:17:49

Yeah, perfect. Yeah, that was perfect, Stephen. Hopefully, most of you guys were able to kind of catch that. I was a little broken up, but I was gonna let you keep going because I was still listening, I got it. But really to kind of sum it up to it a little further, is the idea was when we were going into the design of this, was the amount of phone calls we were, you know, getting from builders. And and you if you kind of recall recap the conversation I had, or what I was saying mentioned earlier about the barn dominiums and all these groups that are on the southeast that were building these things and the technology with steel, what was happening is as we were marketing this building, this product, we were getting phone calls from other builders throughout the country. Hey, Steven, go ahead and uh mute your side there, pal. I don't know if I can do it on yourself. Um, but uh what we were what we're uh what we wanted to do was ultimately come up with a a system that we can white label it to other builders. I had a group that was out of uh Boulder, Colorado, as for those of you that may know, um the uh the Sundance Festival went from Park City, I think this this year was the last year and moved to Boulder. I did not know that until literally like last year. And uh a builder, mine friend of mine, called me and said, Hey, I got a I have a thousand acres. I'm doing a master plan community, two million square feet of retail acreed by a grocery store. And then I want to go ahead and and buy 720 of your buildings. And that really caught my attention because this again, this is the next movement. You're talking about, you know, certain areas where you do have snow loads, you do have certain things, and steel buildings is kind of where it's at in those types of atmospheres. So I wanted to get to a point where we brought on the right architects and engineers to set up a way where we can manufacture these buildings and then white label them from other builders and develop buildings too. So that's like a whole nother, you know, business that we are still going down. We just want to build the first few, kind of get the kinks out, if you will, and then go down that road. But that's the reason why we wanted to bring on the pedigree of uh architects and engineers because that's our long-term goal is to be able to pump these things out. Even if we were our own builder and we want to keep the the technology close to the vest, we could at least go and start buying sites throughout the country and pop these up and kind of you know have a little bit of a run. So that was really kind of the the the forward thinking plan. If you guys haven't noticed yet, I'm a big thinker. I start trying to think uh 10 years out and you know, kind of where we where we're gonna go and where the world's gonna go. So, okay. With that said, Steven, is there anything else you want to add? Or Rob, do you want to add anything to that? Because I know it's a little clear on your end.

SPEAKER_03 1:20:13

No, I mean that's what the vision sorry, go ahead, Steve. Go ahead. Go ahead. I was gonna say that they uh that's what the vision started out as something we could replicate, something that we could um build everywhere. We pitched this in the original meeting we had with the city when we were talking about a uh rezone that was required. We pitched this as something that wasn't just um a one-off building, but this was something that Lake Abbasid was going to be ground zero for um you know a major manufacturing uh effort that we'd like to keep here and uh be able to match produce and sand over um throughout the country. And and to do that, you really do have to factor in a number of different codes just because of the different conditions we face in such a great country like the United States. We've got uh tornadoes on one side and and extreme heat here and excessive cold up north. And to manage to satisfy all the the codes, it does take some time, but to get a couple of these built and uh make sure that you know the the program works and Dennis and his team finding the efficiencies in construction, um, you know, each one of these will evolve and and I'm sure it won't look a whole lot like it does at this time. That's the way construction works, but um the idea is to create something that that uh will be a paradigm brand and could be another revenue storage, another avenue that uh Ryan and his team can go down.

SPEAKER_04 1:21:31

Yep, thank you, Rob and Rob, you did a great job. You summarized almost exactly the points I was going to summarize. And and just for the audience here, when you're designing for a for a systemized package that's going to be delivered anywhere in the country and can be built, you you design for the worst case scenario. It's unfortunate that we have to do that, but Rob is right. We have to design for the highest potential wind load, sometimes we have to design for earthquake and lateral movement of the foundation. Uh, sometimes we have to design for the extreme heat and cold shifts that occur during the winter months. So if you look at the list of codes that are involved that we must comply with, we do the conservative thing, we comply with all of them in our prototype, but when they're actually shipped and built, there are certain uh mitigating factors. And we can reduce uh the insulation in the walls and the ceilings, we can reduce the uh the scrapping in the walls that are wind resistant when they're not building in the wind zone. So all of those things have to be factored in for for now. The prototype uh intends to meet all conditions in the worst case scenario.

SPEAKER_00 1:22:43

Yep, perfect. Thank you, Stephen. Okay, guys, you know what? I think that's gonna be we've kind of got a little bit longer. I want to stay under an hour and a half. We're getting close to that. Rob, Stephen, Dennis, anything else you guys want to add? We good to any project you've set. Okay, perfect. Okay, guys, for any of you that are interested, uh, there'll be uh two people that may be reaching out. I have uh Matt, which is up on our on our um our uh screen now. Matt's our uh leads our investor relations department. He's got more energy than me. So forgive me if forgive him if he's calling you and talking fast. And then you have Amy as well. Amy will uh parallel him

How To Follow Up And Closing

SPEAKER_00 1:23:19

on follow-ups and phone calls, and she's an amazing person. You guys will love her. She's from Lake Kavasu, very knowledgeable, and uh, we have kind of a very similar parallel path. Her father raised her and my father raised me. So it's really kind of cool that we've kind of crossed paths. So she's a great human, anyways, guys. Thank you so very much. Uh, there was a little bit more detail I wanted to go into. We have a proven concept for the gym. I was gonna go over some financials, a little bit more projections of the health and wellness side. I got a lot of data on that growth and where that's going, but I figured we can save that for a phone call just because it's uh just for time uh for today. But you for to for all of our guests, um, you know, thank you guys all for taking the time, carving out Rob, Steve, and Dennis as always. Much love. And uh for everyone who has stayed on and uh got a chance to kind of dig into this. I really appreciate your time. And uh uh if you guys are considering to invest, we'd love to have you and welcome you to the family. Uh, we do have uh we use Juniper Square, which is an online platform for compliance, but uh reporting and tracking. And then we do put a camera up on every one of our sites to allow our investors to watch live in real time. So if we provide you an update, um, you'll have the ability to uh log on and watch the project, making sure that what we said we're doing is actually happening. And then we also do investor appreciation events. So we're actually uh gonna be announcing where we're gonna do that at the end of this year. Um, we're actually thinking about doing it here at the headquarters building just because I think a lot of people would love to see the pedigree of this project. It's one of the only Class A plus buildings ever built in Lake Havasu. Uh the mayor is gonna be here today. I have uh Joe's on the road as we speak, and he's logged on listening. But we are doing a uh kind of the we're kind of doing a Joe Rogan play. We're bringing on Trump, right, on the podcast, and we're gonna let him kind of you know share his story, and then we're trying to get, in essence, the other Kamala Harris on the on the podcast and have a non-biased approach, but just kind of ask questions of where the city's going, what's going on with water and going up, and we'll kind of produce all of that to our clients as well. So that way you guys can see what we're seeing um from an from a uh a political state, what's really happening out here, you know, uh balancing the budget, um, you know, where the where the where the world's going. So, as you guys can imagine, it's nice for us because a lot of my decision making and and building uh these projects to awareness for investors is because these are things that I already know. But I it's I can't sit on the phone and share all of this stuff with you. I think it's important that we do the recordings and hear it from the horse's mouth and go from there. So hope you guys see value in our platform and who we are as an operator. I do appreciate all of you current investors that are on here as well. I appreciate your trust. I love talking to you guys that uh once a year when we jump on a call and talk about where the world's going and when we think it's all gonna end. But uh I appreciate you guys once again. Have a good one and uh have a great fourth. Hope everyone's safe and uh reach out to me if anybody needs anything. Talk to you soon.