Blake Templeton 0:00
We find the treasure, do the value add, sell it. Now we’ve got massive capital gains consequences for our investors. So the difference in a hedge fund for a so not a REIT, not nothing tied to the stock market, but a hedge fund with real property in it is that we have 10 to 15 properties that go into a fund. And then our structure is quite unique. We realized that instead of selling, we could actually start with a lower LTV lower loan to value. And then, after a specific amount of years have all the investors principal back in their pocket. They stay invested with a vested interest and then we refinance the property every three to five years. And those distributions are tax free.
Welcome to CRE PN Radio for influential commercial real estate professionals who work with investors buyers and sellers of commercial real estate coast to coast whether you’re an investor, broker, lender, property manager, attorney or accountant we are here to learn from the experts.
J Darrin Gross 1:15
Welcome to commercial real estate pro networks, CRE PN Radio. Thanks for joining us. My name is J Darrin Gross. This is the podcast focused on commercial real estate investment and risk management strategies. Weekly we have conversations with commercial real estate investors and professionals who provide their experience and insight to help you grow your real estate portfolio.
Today my guest is Blake Templeton. Blake is a seasoned real estate and cryptocurrency hedge fund manager who is passionate about helping investors invest confidently into alternative asset classes like blockchain technology, cryptocurrency and specific sectors of real estate. And in just a minute, we’re going to speak with Blake about wealth building through alternative assets.
But first, a quick reminder, if you like our show, CRE PN Radio, there are a couple things you can do to help us out. You can like share and subscribe. And as always, we encourage you to leave a comment we’d love to hear from our listeners. Also, if you’d like to see how handsome Our guests are, be sure to check out our YouTube channel. And you can find us on YouTube at commercial real estate pro network. And while you’re there, please subscribe. With that, I want to welcome my guest, Blake, welcome to CRE PN Radio.
Blake Templeton 2:37
Hey there, and I appreciate it. Look forward to chat.
J Darrin Gross 2:40
Yeah, before we get started, if you could take just a minute and share with listeners a little bit about your background.
Blake Templeton 2:48
Sure, absolutely. started back in oh six, without a dime to my name dropped out of college, no one to own my own business someway somehow, and then didn’t know you couldn’t defer student loans anymore. So had to humbly move back in with mommy and daddy. A parent’s got a letter in the mail to go to a real estate conference knew nothing about real estate flips, valuations or innovations. But I was numbers driven a clicked I could do formulas that was my gig. So ended up getting a mentor in single family. We did between single family and small multifamily did 300 Plus transactions from oh six to 2012 from wholesales to foreign innovations, and then 2012 into commercial real estate builds corporate housing development and apartment complexes did value add deals went into a position where this is where we sit now which is realization that to build accumulate massive wealth, it’s way easier to inside hedge funds. So we run hedge funds for self storage and mobile home park communities and then hedge fund for cryptocurrency.
J Darrin Gross 4:13
Interesting, the the hedge fund thing is something that I hear all the time about, but I don’t I don’t know that I fully understand exactly what differentiates a hedge fund from a from a another fund. Maybe a good place to start is just what is a hedge fund?
Blake Templeton 4:33
Yeah, a quick skinny is most people are used to doing like a syndication. So someone says, you know, I’m going to do a, you know, six or $7 million, say a $7 million apartment complex. And so we’ve got maybe 3 million of renovations we’re going to do and so they’re going to syndicates a pool of money from investors for a portion of that, which is the remainder Have what the mortgage company is not going to loan. So that loan to value ratio between investors and then the mortgage company. But the problem with the syndication what we found out we exit syndications quite well with strong greater return. But the problem with the syndication, so one single property in a one single, you know, LLC or you know, partnership structure or PPM structure private placement memorandum. But after we do the massive value add, we find the treasure, do the value add, sell it, now we’ve got massive capital gains consequences for our investors. So the difference in a hedge fund for a so not a REIT, not nothing tied to the stock market. But a hedge fund with real property in it is that we have 10 to 15 properties that go into a fund. And then our structure is quite unique, we realized that instead of selling, we could actually start with a lower LTV lower loan to value. And then out after a specific amount of years have all the investors principal back in their pocket, they stay invested with a vested interest, and then we refinance the property every three to five years. And those distributions are tax free. And so those distributions are paid out. And so instead of them having this massive capital gains hit, it’s as if we sell the properties, you know, every three to five years, and they actually get to keep the interest, keep the the asset, keep the net worth, but then have tax free distributions. So massive difference that allows them to have diversification amongst multiple different properties. So let’s say 10 properties, proportionally, their interest is in all 10 properties proportional to the opposite, you know, the value of the whole portfolio versus being in one single property. So as the main differences.
J Darrin Gross 7:16
Got it. And I guess, I like the concept and stuff, but I was kind of curious, what is the word hedge? differentiate itself from just a quote, fund. Is there, Is there a?
Same thing? Yep.
Same thing. Okay. Okay, because that’s, that was okay. But no, I like I like the strategy. I mean, I, I’ve always felt like if you’re, if you like the asset you’re in, you know, and it’s cash flowing positively. If you’re selling, you know, you’re just getting out, you know, you basically you’re flipping, you’ve got to find someplace to park that and hurry if you’re, you know, if you’re acting by yourself, it’s really hard to get everybody act together, if you’re, if you have multiple investors, uh, you have to, you know, coordinate there.
Blake Templeton 8:03
It’s a great point, it’s really like, you know, for the person who says, Well, I do 1031 exchanges. In the hedge fund model like this, when they invest, and every, every refinance as it’s as if they already found the property they want to invest into, they already reinvested the funds, and they didn’t have to do any paperwork. So it’s way more seamless. And we never sell inside the hedge fund. So it’s a where they get all their principal back, they get the reinvest that it’s creates massive asset accumulation, is say they invest 500, grand, you know, eight years later, somewhere in that ballpark, they get all their principal back, then reinvest that into another fun with, say, 10 properties. So now that same 500, now they’ve got investment in 20 different properties, and they’re eight years, they’ve got all their money back principal back, and they’ve made the 8% preferred return each each year. Now they invest that into another property. So this massive accumulation of wealth, you know, you want to stay on the cash flow side, and you want to stay on the exit side of the appreciation without paying taxes. That’s the goal. So, yeah, it’s a it’s a fantastic model. And it’s something that you can, you can do, it’s just realizing the difference in structure changing to millimeters changes everything.
J Darrin Gross 9:36
No, I like that. Hey, before we get too far down the real estate side of things I wanted to just ask maybe the or even kind of a better place to start is if we just frame the question, you know, alternative assets. What are alternative assets?
Blake Templeton 9:56
It’s a great question. So the standard position In in a asset or an investment would be maybe the main frame would be the stock market. And so how our whole system was set up would be when the 401 K’s started would be, you would create this entity that you would put money into. And then that 401 K goes into a, you know, mass bucket or a mutual fund goes into a mass bucket of different things and stock market alternative would be just something outside of that norm, we’d call that the public market. And then the investments that are alternative will be in the private market, the private markets were all wealth is made. So all all real tangible wealth, it’s accumulated that preserves, it’s easy to make money, but it’s hard to keep it all wealth truly made, is made in the private market, sustainable, it’s kept, it’s asymmetrical. So asymmetrical, would mean it’s the highest and best potential opportunities with the very lowest risk. And so self storage and mobile home park communities is in the cryptocurrency is where we would put our main focus on alternative investments.
J Darrin Gross 11:15
Got it? So now we’re we’re talking about the the investments and kind of go back to where we started with this with the fact that your hedge fund or, or your funds distinct in that one is a real estate fund and another is a crypto fund or is there an interplay between those two?
Blake Templeton 11:38
Yeah, great question. So they’re completely separate. One is B, specifically Self Storage complexes, and mobile home communities. So these are a large assets, you know, 10 to 10 to $40 million in asset. So massive assets versus like a mom and pop asset. And so then the crypto side is a portfolio of the proprietary system of how it’s actually strategically, a portion aligned with what cryptocurrencies. And when someone invests in they’re investing specifically into that portfolio of assets. And then as a portfolio manager, we manage that portfolio.
J Darrin Gross 12:31
Gotcha. In any. So, going back to kind of just the concept of the alternative assets. He mentioned kind of how they’re different from the stock market. The benefits, you mentioned that that’s where the wealth is really created, is that pretty much the bottom line benefit? Is that the opportunity to create significant more wealth, or are there other benefits that you recognize that the alternative assets provide, as opposed to the, you know, the the public market?
Blake Templeton 13:09
Yeah, so in the, in the private market, again, all investments are equal, right? So it’s the mindset of the strategic investments in the private market. And then the structure, all structures aren’t equal suck the syndication, you got into something but you sold and you’re still an alternative investment, but you got to pay capital gains on it. So the but the big portion are the focus of self storage, mobile home parks, is that they provide mat that provides strong way to returns, there is the recession resistant, their stable asset class, so even apartments takes a massive dip when when specific things of volatility happen in the market. But in self storage, and mobile home parks, these are two asset classes that are in abundance, everyone needs storage, and a down market, everyone downsizes and put stuff in storage. in a down market, the funnel of housing everyone downsizes and the bottom is the mobile home communities. And so they’re stable asset classes, they have low capex, low maintenance costs, and versus apartments, co you’re in a 15 year deal. You You better sell before then if that’s your model, because you’re gonna have to do a full renovation of all those units in that time period. Again, there’s low delinquencies and the structure again. So the main thing for us for self for alternative investments is that we can control more of the actual investment around the circumstances if you’re in The stock market, you know, good luck, you’re gonna have to ride the way and that’s why you’d have the mindset stay in for the long call, it’s always going to turn back around. But in cryptocurrency, for example, we have the ability to move, move funds out of Bitcoin, when it takes a downturn, and then put the funds back into Bitcoin and write it back up. So we kind of have an unfair advantage we get to see behind the scenes of what’s happening in cryptocurrency. And so we get to make chess moves, before something actually happens. So I’ll turn investments for us specifically, I can’t speak for anyone else, but just specifically, self storage, mobile home park communities. And cryptocurrency and the structure in which we manage the investments gives us much more ability to make a strong return.
J Darrin Gross 15:58
I want to ask you something you mentioned and with the cryptocurrency the ability to see kind of behind the scenes. What do you mean by that?
Blake Templeton 16:07
Yeah, that’s a great question. So everyone has a phone. And so we’re just gonna say the iPhone, when text messages came out, I was like, Man, why would anyone need text messages? You know, no one’s gonna do it, just pick up the phone, well, then, text messages became very convenient, or text messages as a software. So the iPhone has software’s on it. Then the the applications where you have an app, so if the App Store software, all the little apps on software, and even my grandma uses some apps, you know, on her phone, because it’s convenient. There’s all software, like Facebook, putting it on your phones application, one would have thought like just go to your desktop. Now you’re like, why would I ever go to my desktop? I’m just going to go to myself, my the application on my phone? Well, Bitcoin, for example, has different apps, different software. So Apple has a phone technology. And there’s a platform called an app store. Bitcoin is a technology. And it has a platform called blockchain. The iPhone has apps on the platform called the App Store. Bitcoin has apps on the blockchain. So these applications are businesses. And these businesses run lots of volume of money. And so there’s literally businesses living on the blockchain. And the more velocity the more money that’s it’s, it’s does that’s like, does business creates more value in Bitcoin. So when we’re looking behind the scenes, we can see all the things that are happening, we see the legitimacy of it, we see the practicals of it, we see the logistics of it, and we see the value of what it will do for an economy. On the front side, however, you might see drama, you might see certain news from the media, you might see turbulence and you know, emotional volatility, but we can see what’s happening behind the scenes. So even though the value might follow the false narrative of the drama, we would just pull our funds and park them safely in another cryptocurrency while that drama takes place, knowing that in the end, Bitcoin will naturally adopt a more truthful value. And then we obviously ride those funds and that’s with every cryptocurrency. So just quick skinning. There’s probably 16,000 cryptocurrencies. Most of them don’t have a blockchain, most of them don’t have a platform. Most of them don’t have other businesses living on it. So you could you and I right now, Darrin could create the Blake and Darrin cryptocurrency and they would just be as many people thought that you and I were going to be amazing and who would put put money into it? But there’s only a handful that have a blockchain that are really tangible utilized that utilize currencies, technologies, software’s so big picture, we can see behind the scenes because we’re looking at all the analytics we’re seeing the wisdom behind what’s happening, we’re not listening to all the noise.
J Darrin Gross 19:41
Gotcha. So let me ask you, just to the point that you brought up the the number of different cryptocurrencies I mean, it doesn’t take a lot to create cryptocurrency I mean, as far as a concept, I wouldn’t bring other but the technology behind it So is there a, I don’t know kind of mature ation? Where are we in the blockchain or not the blockchain with a cryptocurrency? As far as early adopters? Have we reached critical mass where we’re where are we at on the cycle?
Blake Templeton 20:18
Yeah, I think it’s really important to understand that and I appreciate you bringing up. We’re very, very early. And so I’ll tell you, as an investment firm boron capital as an investment firm, it wasn’t something that we when invested into until 2019 and 2019, it grew legs, specific cryptocurrencies, like Bitcoin grew legs, and they created a actual system of blockchain that actually had adopt adoptive businesses in it, and money flowing on it. So but until then, it was, it was still up in the air just as much as a new IPO in the stock market. You know, it’s like, I could do good, I could totally bottom out, like, it’s still over overvalued at the time, you know. So understanding that we’re very, very early. And what’s important to understand is the question why why would we even invest in cryptocurrency at all? What is it why, like, why go that direction, and you have to understand inflation, inflation is the largest risk to everyone. On the real estate side, you know, we just, you know, keep on plugging along and try to produce cash flow properties. But if you don’t understand inflation, the Federal Reserve has a chart of M one money supply. Essentially, that’s how much money they’re printing and what it looks like on a graph 2008 now looks like a blip on the radar, it literally now has gone catabolic, straight up like a jet going straight up in the air. And then inflation has has gone from what we might call two or three or 4% to 15%. So, the real inflation not CPI, where it can be in a manipulated, but the real inflation rate is 15%. So we have to ask ourselves, how might I produce or outpace how might I outpace the inflation rate. So if you understand inflation, guys is literally the US dollar becoming less valuable. So it becomes less valuable, meaning it takes more dollars to to buy the thing. Like for example, in renting cars and trucks, the price for renting cars and trucks, the price has gone up 87% Over the last year, fuel fuels going up 44.5% furniture and bedding gone up 8.6% Sporting Goods GM 7.5% My point is, if you understand the US dollar is going to continue to be the value that the inflation rate is going to continue to eat up your value, then you have to outpace it, you have to make more than 15% and so cryptocurrencies specifically, you know, a handful of cryptocurrencies that have a blockchain there have tangible business running on them. It’s, it’s a hedge to the US dollar, it’s a way to actually get outside of this system. It’s a way to literally quit, quit making your money in US dollars, and make your money is an actual different method. So bitcoins not just like digital gold, it’s digital gold. It’s a bank in cyberspace, it’s thermodynamic, there’s literally methods where you can make more money in cryptocurrency, then we can actually do in real estate and right now in our current season of volatility on both sides, so there they know that the reason is, because you’ve got to outpace the price of inflation, and that’s the most important thing right now.
J Darrin Gross 24:30
So I get inflation and I think that if we want to come back to just the you know, the US dollar I mean, I know that this a fiat currency and that we’re basically what you and I believe $1 is worth is what would the dollars worth and that’s where, you know is is there’s more dollars pumped into the system, the whatever the good, cost more dollars, because it’s still the same. It’s still the same asset but Just based on the the flood of money, it takes more of those dollars to to buy that, that asset. What’s to keep these blockchain cryptocurrencies from somebody, you know, having a split or something like that we’re also now you’ve created inflation, like, you know, and love the stocks, they’ll split. So they keep the price down. Is there anything built into the crypto that that prevents it?
Blake Templeton 25:28
Yeah, it’s a good question. Um, they have specific, specific growth has actual splits. And there’s the most important thing is, is cryptocurrencies that have a limited supply. So just like the stock market, a publicly traded company that’s drowning, matter of fact, right now, 21% of all, companies that are publicly traded, or called zombie companies to 21%, can’t even pay their debt service, they literally can’t pay the debt service. So what do they do? They they split their stock that’s worth less is worth less, is split that stock and they sell it again and sell it again. So what we don’t want is that if you invested into a cryptocurrency that does that, yeah, that’s completely the same world as the US dollar, the US dollars, doing the same thing. They’re quote, unquote, splitting it by just printing more of it, and making it worth less. So we invest in the cryptocurrencies that have a limited supply. So for instance, Bitcoin only has 21 billion coin. That’s it, it’s done. That’s it, that’s all you got. So when it when you have a limited supply, then then you’re not going to, you’re not going to be able to continue to make these splits. And when you can’t make these splits, then you have a rare a rare property that can that then the value of that item continues to go up, versus it continuing to be multiplied down. So I said 21 billion, it’s 21,000,020 1 million coins. And so what then happens is the FET, there’s 21 million coins, once fully mined, that becomes a stable base, those 21 million coins becomes a stable base, and it can’t continue to split. So it’s a great question. However, certain getting cryptocurrencies are not set up that way. And that deters one from realizing it to be a good investment, because you can’t outpace inflation, if they decide to continue making splits because it’s doing the exact same thing. So the number one thing for stewardship is you have to be able to accumulate wealth, you have to be able to accumulate wealth, you’ve got to be able to remove yourself from tax ramifications, as we talked about in self storage, mobile home parks, where you aren’t paying the capital gains, you’re refinancing versus selling. And then you’ve got to be able to have a stable way to actually increase your value of your assets like through cryptocurrency verse is the, you know, having your money in your cash flow in US dollars, and then your cash flows deteriorating, even though you’re making it. It’s deteriorating, because the US dollar is deteriorating as a whole.
J Darrin Gross 28:51
Right. So let me ask you this. So if there’s 21 million Bitcoin, and when they originally issued there was a price equivalent, however many dollars, right. So beyond that point, the value is based on a, a supply demand, because there’s only one you said, there’s 21 million and now it’s demand people are wanting this as currency, right? And I’m assuming that is directly tied to the value of the dollar, meaning as the dollar decreases in value than the inverse happens for the crypto because crypto has a limited supply, while the dollars have a an ever growing supply of dollars. Is that a lot of what drives it? Or is it or is it just the thirst for investors looking for some sort of an alternative that’s driving the demand? Or is it both?
Blake Templeton 29:42
Yeah, you ask really good questions. Darrin. So let me just kind of back out for a second and put that on a silver platter. So it’s a it’s a very good question. Because the thought line is is is what’s driving its value. Is it just supply and demand or is it as the US dollar goes down? It’s directly correlated. So it goes up and out of out of oil and commodities and US bonds and silver, out of anything. Anything else in the stock market? Bitcoin is one of the least correlated to anything else. And it’s not correlated to the US dollar. So the US dollar, if we had some mass of it, they decided to print, you know, God forbid, 100 billion, or excuse me up, you know, 100 trillion tomorrow, where we’ve just printed about 10 trillion over the last, you know, 18 months, two years, it wouldn’t be directly tied to that, because it’s its own system. Now, if you’re proportionally using it to the dollar, then obviously, in dollars, the price would go up.
J Darrin Gross 30:58
Right, but, you have to in order to Buy a Bitcoin, you have to use dollars to buy the Bitcoin, right?
Blake Templeton 31:03
J Darrin Gross 31:04
Okay. So some of there’s got to be there’s an exchange there between one for the other?
Blake Templeton 31:09
Sure. Sure. Yeah. from the, from the mindset of, you’re just trying to find a valuation of $1 to $1.
J Darrin Gross 31:18
Just kind of curious, what drives the the, you know, the valuation? Is it supply and demand? I mean, that’s the main the main
Blake Templeton 31:26
That’s really the question, so what actually drives the value, because you could compare it to anything. But if you compare what drives the real demand, not just so you’re seeing volatility at times, and that’s all that’s a false narrative, or it’s a big fish trying to get in the market. So they’re using persuasive techniques to, you know, push the market down. Or they’re having drama on the front side. So they’re having, you know, a lot of the small people who are in like your Robin Hood app, and so forth. They’re having them sell off. So it looks like it’s going down. But that’s a in a big way. It’s a way for them to get in. So what’s really driving it what’s going to drive it let’s look over the next decade, because we’re very, very early over the next decade. What will drive it it’ll, it’ll be the blockchain, the businesses on the blockchain and the amount of money, the velocity, how fast the money moves inside the actual blockchains of the cryptocurrency. So that’s the as, as the value grows here, the value of that coin grows.
J Darrin Gross 32:40
So let me ask you, is there I mean, the velocity because I, my sense of things, and again, I’m by far, the least knowledgeable about crypto, other than I know that some of the names, but if if people are investing in and they’re buying it, I’m assuming that most are buying it and hanging on to see it go up before they sell it? If they sell it, how, how much velocity of Bitcoin is there as a as a currency for goods and services?
Blake Templeton 33:15
Yeah, so here’s kind of where everything gets confusing for most people. If we remove the word currency from crypto, so 99% of crypto are not currency, there’s not a model for them to be utilized as currency. If we look at crypto as software, so just like we talked about Apple is software, Google software, Amazon, or the grocery store in cyberspace. Yeah, kind of their software, their software company that’s brokered relationships, it’s created a way to make money in a software. So you can go online and click buttons and then have stuff delivered to the software. Bitcoin is software. So we processes software, then you’re saying, Well, John has put his money in the software, and he’s waiting for to go up. Okay, so that’s on the front side. Behind the scenes. There’s businesses. So like, if I pulled out my if I pulled out my phone, and I showed you all the apps that I use, paid for memberships for iPhone is making apples making money on all those apps, that makes Apple more valuable because they have very low margin on the apps and they’re making 30% on everyone’s apps. So Bitcoin works the same. There’s business literal businesses that run the backend, and Bitcoin, specifically the blockchain will be used For more businesses that we would ever have time to talk about on this actual channel, but to give you a couple examples is Bitcoin will the blockchain for Bitcoin will be used in real estate transactions? So all deeds of trust all actual transactions in the actual
J Darrin Gross 35:25
Chain of title kind of thing I’ve heard it’s kind of that’s where the blockchain will actually
Blake Templeton 35:29
be on the blockchain. And
J Darrin Gross 35:33
but not to be confused with it won’t be the the Bitcoin it’d be it’s a just a blockchain just more of an open ledger. Right, where the you can see who has what if, and allows you to transfer fractional ownership, etc.
Blake Templeton 35:50
Yeah, correct. I mean, this is education from a digital content locker from digital rights to have holding escrow to, to record, you know, to a record keeping from voting, voting would be on the on the blockchain. So instead of it being where you mail out a ballot, it’s literally on the blockchain. And these are all businesses that will be set up on the blockchain. And so all the voting in the US could be done on the blockchain secure ledger, everyone can see everyone, you had to actually have a wallet to actually vote, you could have a KYC know your customer, which basically just simply means it’s a real human being to crowdfunding and equity and private markets. And there’s so much so the realizations is, is that’s what actually provides the value to it. And what we do at boron capital, to kind of like make it real simple, what we do is we hold a portfolio of specific cryptocurrencies, and we ride the narrative on them. And then we hold a portion of Bitcoin. So a goal is, as these are growing, and they’re going back and forth, we find out the best positions to be in. And in that portfolio for last two years, we’ve outpaced the price of Bitcoin, or the value of Bitcoin. And it gives people an ability, a, a, a backdoor entrance, or a way to get into what I’d call institutional size, you know, deals where you couldn’t be in something like this, unless you’re just going to do it yourself and knew all the ins and outs, and we’re doing all your analytical data yourself. Same thing for self storage, mobile, home parks, to grow assets, to be able to build massive wealth, you’ve got to get into something where there’s large deals, you got to get into, we can accumulate massive wealth for you and again, massive wealth on, you know, 10 to $40 million deals and get a small portion of a ton of them. And that’s how you can accumulate massive wealth. And that’s what we do at moron capital.
J Darrin Gross 38:10
Well, it’s fascinating, all of the the crypto currency and in blockchain, I do see the other blockchains kind of, you know, it becoming more and more integrated. Yeah. And just record keeping. I mean, I think it’s, it’s, it’s brilliant, especially for, you know, real estate, just transactions, like we’re talking chain of title and that certainly would have kept us from the 2008. fiasco.
Blake Templeton 38:37
It’s so true.
J Darrin Gross 38:41
Alright, so we talked about the the crypto and then as far as the the assets, or I mean, sorry, the the real estate, you guys your focus is the mobile home communities and then also self storage, correct. Correct. And your strategy there is you you buy, refinance, return the capital hold, and then refi periodically to create more return to your to your investors. Correct? Correct. Got it. Got it. How many of you got between what 10 or 15 assets right now on that port.
Blake Templeton 39:21
We’ve got a fun that just opened and we’ve got in this one boron fund. He currently owns an interest in three assets, manufacture housing community and to self storage communities totaling 1500 rental units. So from Alexandria, Virginia, which is right next to Washington DC, just down from just minutes from the Pentagon, and Amazon’s headquarters to 209 units in infection housing in Washington, DC Metro and then 600 units sell storage in Tomball, Texas. So in the growing suburbs of Houston. So we go into specific markets that have a sustainable foreseeable future who or where there’s a massive, calculate guru, people moving into where supply and demand is in our favor. And then obviously, in these two specific niches of real estate, what I’ve shared already is how they bring massive cash flow, low capex and so forth.
J Darrin Gross 40:36
Got it. And the ultimate plan is to not accept a property but more do the refinance. Are there any what ifs? Or would you potentially what what would cause you to exit a property? And I’m assuming then reinvest in another one?
Blake Templeton 40:54
Yeah, that’s a really good question. I mean, it would only have, it would only be where a large, massive Blackrock type firm wants to buy the entire portfolio, and then the amount of money that they would pay after it’s moved in 1031, or something, you could still make more money than what you’re going to make. So if we can do it tax free, you know, it makes it so even on the cash flow, even cash flow, you only do a, a advanced cost segregation. And so we’re able to shorten the time of the the depreciation, which allows the majority of the cash flow to even be tax free. So when we can provide that to our investors, it really makes it very hard to ever want to sell knowing that you have a golden egg that can continue to be able to produce long term. So big picture on on fund eight self storage and mobile home park communities. John, invest in, say, John invest 500,000, John’s making a preferred rate of return. And he ends up getting paid back his initial principal. And somewhere around your eight or so he’s, we, as we refinance, the first refinance, he receives back his principal and his 8% preferred return for as long as those years were. Now he has this preferred return. He’s got his principal all back in his pocket. And now he’s in the deal long term with no direct risk to the deal. And he’s able to read through rewards of the continual refinances and being able to stay positioned in accumulating wealth. Got it?
J Darrin Gross 42:49
Got it. People like it, we couldn’t like to shift gears here for a second. As we talked before, we started recording by day, I’m an insurance broker. And I work with my clients to assess risk and determine what to do with the risk. And there’s three strategies we typically look at, we first look to see if we can avoid the risk. If that’s not an option, we’ll see if we can minimize the risk. And when we cannot avoid or minimize a risk, then we look to see if we can transfer the risk. And that’s what an insurance policy is. And as such, I like to ask my guests, if they can look at their own situation. Could be their clients, investors the market, however you’d like to frame the question, but I like to ask my guests if they can identify what they consider to be the biggest risk. And again, for clarification, while I am an insurance broker, I’m not necessarily looking for an insurance related answer. And if you’re willing, I’d like to ask you, Blake Templeton, what is the BIGGEST RISK?
Blake Templeton 44:05
Yeah, the BIGGEST RISK hands down Most definitely. For every single investor across all industries, is the inflation. The inflation is the largest thing that’s eating away. Unbeknownst to you. It’s a largest tax known to or unknown to you. It’s the largest expense you had that you don’t calculate. So inflation now being 15% When it was supposedly 2%. A decade ago, you could probably do pretty well. It’s just kind of forgetting about it. But now 15% is the largest risk. Because if you’re not producing more than 15% Especially if on your cash flow. If you don’t have a good strategy and you’re still having to pay taxes on it. You’re not producing 15% on your money, then your company pletely losing in investments the whole time while you think you’re producing good results. So what we have to do as a good steward, we’ve got to realize that, you know, unconventional world events, beckoned us to be good stewards with unconventional strategies. And we have to back in and reverse engineer into what good strategies are in an unconventional time. And what we do at Warren capitals, we do that with self storage, and mobile home cart, and mobile home park communities and then cryptocurrency in two separate funds, limiting the downside and making sure we outpace inflation, and in the fund, self storage and mobile home park fund. Once all your money’s back in your pocket, then it’s an infinity return. So now your these funds get to go back and go back to work. So we beat that risk in that way. And then in cryptocurrency, our mission is to always outpace a Bitcoin. So that that allows us to, we take that cryptocurrency is like digital real estate. So if you think about it being digital real estate, then we’re able to go in and tray narratives or sell narratives back and forth and create a much much much higher return return, which allows us to always outpace, which allows us to outpace inflation. So that’s the largest risk that if we have a set it and forget it mindset, if we kind of have our head in the sand and don’t really know what I’ve got, I just know I have a lot of something that a lot of something can become nothing really quickly if you don’t have a good stewardship set in place.
J Darrin Gross 47:00
Hmm, very, very true inflation. big risk. Blake, where can listeners go if they’d like to learn more connect with you?
Blake Templeton 47:11
Yeah, if you have any, any interest at all into as an accredited investor and investing into self storage, mobile home park communities, or you have an interest into investing into cryptocurrency, or for those of you who are not even accredited, okay, I’m just trying to get started. I’m just trying to get my feet wet. I know I need to be in cryptocurrency. We also have a, a coaching program, inner circle that allows you to just get started even if you’re not accredited. So the best thing to do is pull out your cell phone. And I’m gonna have you send me a text message makes it so much simpler. And then we’ll build I’ll communicate with you directly support your cell phone, text, the number 877-771-0615 You’re going to text invest to invest to no space, just the word invest. And then number two, so 877-771-0615 And then in the message you’re gonna put invest to. I’ll know you came from Darrin, I’ll take great care of you.
J Darrin Gross 48:28
Awesome. Like I can’t say thanks enough for taking the time to talk today. I’ve enjoyed it. Learned a lot, and I look forward to doing it again soon.
Blake Templeton 48:39
Hey, Darrin, my pleasure, my man. Look forward to it. All right.
J Darrin Gross 48:43
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