Build Real Estate Wealth with Smart Strategies

The Real Estate Investing Club

Join an active community of RE investors here: https://linktr.ee/gabepetersen  0:00 Introduction & Guest Overview 1:10 Fuquan’s Real Estate Origin Story 4:30 Fix & Flip Beginnings and Early Mistakes 7:00 The Power of Cash Flow vs Quick Profits 10:20 Discovering Note Investing Opportunities 14:00 Building a Fund & Raising Capital 17:30 Transition to Multifamily & Luxury Homes 21:00 Property Management Lessons Learned 24:30 Scaling with Systems, KPIs & EOS 28:00 Best Deal, Worst Deal & Key Lessons  REAL ESTATE INVESTING JOURNEY 🚀 In this episode of The Real Estate Investing Club, I sit down with Fuquan Bilal from NNG Capital Fund to break down what it really takes to build long-term wealth through real estate investing. Fuquan shares his 25+ year journey from corporate sales into real estate, revealing how he transitioned from fix-and-flip investing to mastering multifamily real estate, note investing, and luxury single-family development. If you're looking to scale your real estate portfolio, increase cash flow, and achieve financial freedom, this episode is packed with proven strategies and real-world lessons.  FROM FIX & FLIP TO CASH FLOW 💰 We dive deep into one of the biggest mindset shifts in real estate investing: moving from chasing quick profits through house flipping to building sustainable passive income through rental properties and multifamily investing. Fuquan explains how early success in flipping houses can distract investors from the true goal—consistent monthly cash flow—and how the 2008 financial crisis reshaped his entire investment strategy. This is essential knowledge for anyone serious about building long-term wealth in real estate.  NOTE INVESTING & CREATIVE STRATEGIES 📈 One of the most valuable insights in this episode is Fuquan’s experience with note investing. He shares how buying mortgage notes at a discount allowed him to create win-win solutions for homeowners while generating strong returns. We also discuss how regulatory changes like Dodd-Frank impacted the industry and why adaptability is key in real estate investing. If you’re looking for creative real estate strategies beyond traditional rentals, this section is a must-watch. #RealEstateInvesting #PassiveIncome #MultifamilyInvesting #FinancialFreedom #RealEstateTips  Want to learn more about our guest? Connect here: https://nngcapitalfund.com/  Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com or click here: https://linktr.ee/gabepetersen

Transcript

00:05all right we are back with another episode of the real estate investing club i hope you guys are

00:11having a great week great day wherever you are and whatever day it is for you it is friday on

00:17the podcast we're bringing that good friday energy to you unfortunately it is nice and cloudy here in

00:21seattle so we don't have that sun but it's okay because uh we'll bring the sun ourselves it's

00:26going to be a good day because we have fuquan bilal with us on the podcast from nng capital fund

00:32fuquan does multi-family and luxury single family so if that is the asset class you guys are

00:37interested in this is the episode to listen to he has over 25 years of experience turning distressed

00:43multi-family and i'm sure not distressed luxury single family but distressed assets into into cash

00:50so it should be a good episode fuquan thanks for hopping on thanks for having me on gabe i really

00:55appreciate it um it's uh it's an honor to be on your platform and appreciate it absolutely um i

01:02told you before we got on here we always like to start with stories we like to hear how people

01:06got

01:06to where they are so why don't you take us to the beginning of your story in real estate and

01:10just tell

01:11us how you got here well as les brown say i jumped out the window and grew wings falling down

01:18well yeah i i was in corporate uh in sales and then transition to real estate in 99 so it's

01:25been a

01:2527 going on 28 year journey for me um in this space and i i wouldn't change anything all the

01:31mistakes that i made and it's just been a great journey some painful times some exciting times

01:37and you know i went through the global financial crisis which was really a learning experience for

01:41me had to put my big boy pants up and you know and i got black eyes both eyes were

01:47black and had to

01:48start lower again but i the reason i got into real estate was my older brother actually did mortgages he

01:55was a loan officer and he tried to convince me to leave my nine to five where i was getting

01:59a

01:59bi-weekly paycheck to come and work as a loan officer and wait to get 30 days to get paid

02:04or

02:05not if the deal don't close and i was like i'm good but he did give me some good books

02:09to read and

02:10and through that on my you know lunch breaks or whatever i took the time to understand how mortgages

02:16worked um the points that the brokers make on the back end when they don't get the par rate they

02:21add

02:21points on so that was exciting for me to learn how it worked behind the scenes and then with the

02:26retail um homeowner gets from the broker right um and how you make additional points so i was

02:32intrigued by that and what happened was uh i was working for a company and it's making a lot of

02:38commission i landed a very big account and the ceo set me down and took me out for lunch and

02:42they

02:42reduced my salary and that didn't sit well with me so when they went on a trip to europe to

02:47try to

02:47generate some business i put my two-week notice in and i was already shadowing a family member of

02:52mine because he was into real estate and lo and behold i was able to make half my salary

02:57within a couple of months of being involved and i never looked back never thought twice so

03:01that's how i got my start and cut my teeth in the business nice man i love that i always

03:06like to hear

03:07when people um when they get into real estate through kind of uh ancillary industries like being a

03:14mortgage broker being an agent anything like that because then you learn real estate before you get

03:19into actually spending a bunch of capital on deals um so i'd love to hear that in mortgages i feel

03:24like

03:24that's a really good background to understand how the financing works behind it yeah so once you did

03:30decide to get into real estate itself how how did that play out where did you start in single families

03:34did you start in multifamily what was the first family we didn't dive into the multifamily

03:40portfolio until about 2000 it's only barely been six years for us in that space uh most of our

03:47journey started with the fix and flip so i grew up in new jersey which is a low-income area

03:52so as i

03:53always say that gave me my fillet of importance to go back to those communities revitalize revitalize

03:58those properties and put them back on a tax roll it's like i don't know if you ever saw the

04:03bronx in

04:03the 60s and 70s all the dilapidated properties and about burnouts i grew up in areas like that so

04:09being able to go back to the hood and put those projects together kind of made me feel good i

04:15was

04:15able to give employment to the local guys who had criminal records who couldn't get a job and

04:20everything else um so it was a really good feeling and basically started flipping houses in those areas

04:26all the way up into the gfc so um i i really didn't understand that cash flow was king you

04:34know back

04:34then uh what was sexy to me was flipping the house and making 20 000 40 000 60 000 instead

04:40of

04:41rings in the house making 200 a month and saying i need to get 50 properties and appreciation

04:47i didn't understand that part of it it was because of how i grew up and didn't have certain things

04:53when i started to make large sums of money you know i got addicted to that and stayed on that

04:59course

04:59and it wasn't until the gfc came where i understood that those monthly payments actually do count

05:06right for something so i had to make a pivot after that time and i got into the note business

05:11accidentally um and got a mentor and started to learn that space and that's kind of real where my

05:18real investment real estate investment journey began when i started investing and buying mortgage notes

05:25oh interesting that i didn't realize that was part of your story so um notes happened after the

05:31financial crisis for you why why notes how did the how did you kind of come upon that well at

05:36that time

05:36if you can remember a lot of banks uh had stopped foreclosure right the big the too big to fail

05:42thing

05:43and they actually came up with the programs um through uh more modifications obama had rolled this

05:50whole thing out and basically a lot of banks stopped foreclosing and they started to modify

05:55loans and or sell off the paper that they would book charge off and i found out that that paper

06:02was

06:02available for the regular person right there was no regulation at the time from diet frank that was

06:07stopping regular person to go buy that debt call a homeowner negotiate terms with them to get them

06:13back on track so um i actually ran across that by accident because i was doing short sales that was

06:18prominent during that time when the market crashed everyone was doing short sales that was the game

06:23back then in loan mods so during that time i was actually on a phone with a negotiator from a

06:28bank

06:29and he just asked me why don't you just buy the loan and i said what is how does that

06:32work so he started

06:33to explain the process to me and i started to do some research and found a fund that was local

06:39to me

06:39well two and a half hours away um that was actually doing that took a meeting with them understood the

06:45process went through their mentorship and then i began to start to buy notes with my own capital

06:51created a few case studies and then i had to go find investors that would partner with me on those

06:56assets and that was really hard because it was a big education process to explain to people how it

07:02worked because a lot of people don't know what happened behind the scenes but when you buy notes

07:06you're actually on the top of the pyramid like you get the deal first right before the reo

07:10and that was great uh another great point about that was i was able to create more um good feeling

07:19for me by giving homeowners a reprieve like i would buy a note for at a face value of 100

07:24000 i may

07:25have paid 30 000 for it right the homeowner still owed 100 so i was able to reduce their payments

07:31based

07:32off my purchase price right they could have been paying 700 bucks a month because we had the 80 20

07:36loans

07:37the the 20 second mortgage was like 15 to 12 so i was able to reduce the interest rate put

07:44them on

07:44a 30 year m and cut their payment in half which was still a great return on me because i

07:49bought it at a

07:49discount and then after that note was seasoned i would be able to sell that note to someone else who

07:55wanted cash flow right so i played that space for a very long time and then i started doing education

08:00locally where i was i would go to local meetups and talk notes and nobody knew what the hell i

08:04was talking

08:05about so it took a long time to build that business because it was a lot of education

08:10and um you know it was great because i learned a lot helped a lot of homeowners stay in their

08:14house

08:15had to foreclose on a couple of them and take them back and do that i developed a lot of

08:19relationships

08:20with banks and hedge funds and i did that all the way up until 2017 that's actually how i started

08:26my

08:26first investment fund because i had to raise a lot of capital and uh going back to the short sale

08:32my son my oldest son told me why don't you create your own bank because he heard me arguing with

08:38the banks did the banks don't want to do the deal blah blah he said why don't you create your

08:41own bank

08:42and i was like that's how am i going to do that that's impossible you said nothing was impossible

08:46you know spitting back at you come on man me consulted with an sec attorney and they gave me the

08:55inner

08:55workings of how a fund works and i set one up and you know that was 2013 many years ago

09:01and you know

09:02here we are today nice man i i love that story and there's something i want to highlight about it

09:07is you you heard about an opportunity you could buy notes you didn't realize it was it was a thing

09:12you

09:12didn't realize it was an opportunity but through your network you heard about it and before going

09:17out and taking action you went and you found somebody you said you found um somebody in your

09:21local area who is doing that you've got a meeting with them and you learned from somebody who had the

09:25experience who had already done it you learned how the process worked and i feel like that's such a

09:30a wise way to go about it um you know partnering or learning or doing something somehow getting in

09:37the orbit of somebody who's who's uh already done what you're trying to do and then using that

09:42knowledge to replicate it on your own is uh is the path that i wish i had taken when i

09:46got started um

09:47you know in investing and it's the path that i always suggest people take uh when you know they want

09:53to get into any route any any asset class any um you know niche within real estate so i love

09:58that

09:59that you did that um that brings us up to today you're doing multi-family and luxury single family

10:05in uh in you know today's market why luxury single family that's actually something that a lot of

10:10people stay away from because there is a lot of volatility in it um and it's it's most i mean

10:15it's

10:15not all speculation but uh you never truly know what the luxury price is because it's really just based

10:21on what somebody feels about your property so what um tell us why why you decided to go that route

10:27that's actually the best part of business because there's less people in the space

10:31you know which mean more deals for us uh so fast forward uh 2017 the market shifted uh from 2017

10:38to

10:382019 and it was hard to find really really good deals i mean note deals so what we started to

10:44do

10:44was blend our note portfolio with rentals leveraging the relationships that i made with the banks now

10:50getting the reos um or notes and and convert them into reos to foreclosure and then uh the regulation

10:58came out from diet frank which shifted uh the way we played in the note space and it wasn't profitable

11:03at the time and then and go go into that briefly how that changed um investing in the note space

11:09yeah so a lot of things changed on that time uh diet frank came out with some regulations uh you

11:14licenses you had to have to collect debt from homeowners because it basically was a debt

11:19collected negotiating and uh you had to be licensed in any state that you were it was very expensive

11:24to get licensed in certain states and we were buying notes nationwide um so we had to really figure out

11:29where our footprint was at the most and get licenses in those states it was very expensive a lot of

11:33regulation then uh a legal bill started to creep up right so it really at that point wasn't profitable

11:40a lot more people were in the space by 2019 remember i started 2010 2011 and pricing began to increase

11:47it really wasn't profitable so we started to add rentals into our portfolio and started shifting

11:52the mechanics of our fund and raising capital for a more diversified approach for notes and rentals

11:57then we added flips because we had the relationships with the banks um and we did that all the way

12:02up

12:02until covid and when covid came of course you can't foreclose on nobody right because they had all this

12:07stuff and you're the bad guy so we decided to stop buying notes and laser focus on things that we

12:13can

12:13control which was the rentals and the flips and then you know during covid we kind of got through that

12:19made out okay but then we decided because we were doing everything in new jersey as far as the rent

12:24was and flips and jersey is a blue state been here all my life love it but when it comes

12:29to people

12:29saying i can't pay rent covid and they have all these protections right we decided to divest that

12:34portfolio take advantage of the 30 percent over list price that was happening because we had a huge

12:40migration of new york is coming in that it was too hard to compete with retail buyers for low prices

12:45that were like buying properties for 180 it was just too much so we decided to uh divest the rental

12:51portfolio take the war chest to the southeast and started to buy multi-families and then we still

12:57wanted to do flips in our area because we had the resources we had the contractors i've been doing it

13:01since 99 new people in the city seen a lot of changes so we decided to step up in the

13:07more high-end

13:08areas where costs are more predictable if you're tearing a house down you know your price per foot

13:14to build you have a process from foundation to framing to everything else you don't have any

13:19surprises when you open the wall foundation issues and you go above your contingency amount you had in

13:24your budget you don't make profit when you do like this quick flips so we started to play around in

13:29that

13:29space and close a few deals that were insanely profitable like six figure or more profit per deal

13:36and we were just like wow this is amazing let's do more of these and then we just tightened up

13:40our

13:41sops and started to do more of that and there was less competition in that space where we were buying

13:46any area in north jersey about 30 minutes away from the city so we just said you know we're just

13:51going

13:51to focus on two verticals the luxury spec homes in new jersey where we have our relationships and

13:57resources with contractors and the multi-family in the southeast where we can continue to do our

14:02impact project by providing housing for low-income people battered women and children seniors who

14:07can't afford a bump so we did we discovered two areas alabama and georgia where we laser focused on

14:14specifically birmingham and lake in georgia which are tertiary markets and basically started to build

14:19out a portfolio there in red states where if they don't pay rent then you know they have to

14:25move somewhere else quickly um and that's kind of what we've been focusing on since since then and

14:31you know just trying to build mastery and i the multi-family is very challenging it's different

14:35from a three family four family five family rental or even the 10 unit rental when you have 120 unit

14:41140 unit or 300 unit building the dynamics are completely different so we had to do a lot of learning

14:48in

14:48that space rebuild processes found out that it's better to be self-managed instead of hiring a property

14:54manager that gives accrual accounting and charges for things that they didn't collect money for

14:59so went through all of that and it's been a great learning experience in a journey

15:03and took some lumps on the way and and uh rebuilt the processes and that's kind of where we are

15:10today

15:10just focusing on those two verticals one is local that we have control over which is fun exciting and

15:15very profitable and the other one which is in the southeast that allows us to continue our impact

15:20project nice well i want to talk a little more about the luxury spec homes but you mentioned um

15:26property management and that's something i just want to touch on before we go to that that subject

15:30because i've found that a good property manager makes or breaks a deal um and so you you've kind

15:37of it sounds like you've run into issues with third party um what was that i said for sure yeah

15:44so what is um what what are the issues that you ran into with third party and why did you

15:50decide to

15:51make that switch to vertically integrate and manage your own your own properties well they're just

15:56going to check the box right they're not going to look at cash flow and say okay you know the

16:02bills

16:03get majority of the bills get paid when we have most of the collections right when does most of the

16:08collections come in from the first to the fifth from the first to the fifth the fifth and 10 the

16:1110

16:12to the 15 who are the slow payers what plan are we going to put to attack to get those

16:16slow payers to

16:16pay right why don't we just go all everybody make payments on a portal instead of giving us checks

16:21that we now have to deposit and they bounce like a whole bunch of little things that they wasn't

16:26paying attention so just checking the box paying the bills and not really doing cash flow management

16:31also the biggest pet peeve was accrual accounting right so you're billing me for things and taking a

16:37six percent management fee over something i did not collect right move out fee early move out fee you're

16:44billing the residence that's not going to pay you and you're looking like this is income on the books

16:49because it's accrual accounting and you're taking your six percent management fee off of that and

16:55that's not money that was realized so i'm losing oh well at the end of the year we do a

17:02reconciliation

17:02and they don't pay it we give it back to you no no no we need to do cash accounting

17:06like you need to

17:07get paid your six percent off which you actually collect it you know so going through that phase and then

17:12phasing them out because they didn't want to do it um and self-managing hiring your own team

17:18training them making them a part of your company uh core values everything being directly connected

17:23to the people that manage your property makes a difference so we've learned uh you get a higher

17:27that you're able to cut expenses quickly and move faster basically so go go into that a little bit

17:33deeper like what were the lessons you learned bringing it all in-house like if you could

17:37if you could go back to yourself you know the version of yourself who just made that decision

17:41i'm no longer using third party i'm going to do it myself um what advice would you give him

17:46to build out this team and start managing doing self-management really it's really creating a

17:52when you're bringing your team on creating a job scorecard right so what i've learned is there's four

17:58parts of the business people strategy execution and cash and having rocks if you run your company

18:04off eos rocks or goals right related around those four parts every quarter right what are you doing

18:09to approve the strategy execution cash or things for people whether it's bonuses whether it's reviews

18:15whatever it is right to bring your people up um whether it's a goal to read a book this quarter

18:21that's going to help them implement certain things or tighten up their processes and systems

18:25um really dialing into that and creating a job scorecard not a not a uh an ad right um it's

18:33almost

18:33like a dog whistle to the person you want to hire and then giving that person when they start

18:38money in the bank hey you get this extra bonus but here are the things you need to do and

18:42here are

18:42the kprs we're going to measure you by to make sure that you are doing what we hired you for

18:47not just

18:47what's on your resume so those are things that you know i would tell myself to make sure that those

18:52things are in place when you start onboarding people um and just you know having weekly meetings

18:57making sure that you know you set those goals whether they're quarterly you're going over

19:02every week which you need to get through to attack the 13 week march in the quarter so those are

19:08some

19:08of the stuff that things that i've learned to really help dial in and manage and then the kpis

19:13right you can't do anything without kpis you can't manage what you can't measure and just making

19:18sure that the property managers the system property managers the leasing agent everyone understands

19:23what the quarterly goal is and creating a map right what is it what are the deliverables the who

19:28what and when what resources you need and when is it due by and every week going over that to

19:33make

19:33sure that management accountability plan the map is executed uh you know officially nice yeah and i've

19:41it is so important to incentivize outcomes to incentivize performance um and you mentioned kpis

19:48and incentivize specific outcomes um i've i've realized that i mean just recently how important it is

19:53uh for the your property management team for the people on your team um so that they they have the

19:59right incentives they're doing the right tasks and uh it's not just something that like you said they

20:04need to check off um if you can put numbers behind that put goals um and put an incentive for

20:09them

20:09cash incentive at the end uh you're going to get so much you know so much more from your team

20:14that way

20:15um you're actually the second person just this week that's uh mentioned the eos uh it's called

20:19entrepreneurial what is it operating system operating system by gino wickman he actually

20:25wrote two books he wrote one called traction and one called uh eos eos is the one that you read

20:31where your team traction is really for you know the owner of the company and then from there actually

20:36i had a coach a ceo coach a few years ago took me through scaling up is a rockefella habits

20:422.0

20:42it's called scaling up and that's where i learned the full parts of the business people's strategy

20:47execution of cash and management accountability plan the 15-5 where you have all your team take

20:5215 minutes at the end of the week all five minutes at the end of the week and answer 15

20:56questions

20:57related to their weekly goals like and it kind of forces your team to plan at the end of the

21:03week

21:03review that plan where they left off at what percentage of what they said they was going to

21:07accomplish that week is complete why they didn't complete it what was done specifically what went wrong

21:13like all that stuff helps you manage your team better um and and have you know your ear to the

21:18ground so to speak so what was that what was that called again you said uh five okay is it

21:25nice

21:25five yeah it takes five minutes to answer 15 questions very cool um all right well hey it looks like

21:33we

21:33have run down the clock unfortunately so i'm not going to be able to get into the luxury

21:36so much more yeah yeah maybe for the next podcast uh yeah so i will have to push us into

21:43the quick

21:44question randy you ready absolutely what you got all right starts with education you've already given

21:49us a few recommendations but i'm gonna ask it anyways um education is a crucial part of anybody's

21:55investing strategy so i need two recommendations one for general life wisdom and one for real estate

22:00and this could be a book you've read a movie you've seen a conference you've been to

22:03mentorship program you've been a part of anything like that

22:06general wisdom uh maxwell malts is a book called psycho cybernetics a really good really good book

22:13about winning your self-image i would definitely highly recommend that for for personal um for

22:19business uh eos is a really good starter it really would get your team dialed in everybody

22:25running the same direction that's really a foundational piece um yeah before you read a book on real

22:30estate or raising capital the running the business is the foundation yeah i'm gonna have to

22:36pick that one up you've multiple people have recommended that to me um so yeah i can't can't put it

22:42off

22:42anymore i'm gonna have to buy that one all right next question is for your younger self let's go back

22:47to the fuquan who was just starting out i think you said back in 99 go back to him look

22:51him in the eye

22:52give him one piece of advice moving forward cash flow is king that's good good advice absolutely

23:00um all right next is about the u.s it's a big place there is a lot of opportunity out

23:05there give

23:05me the single metro you're most excited about investing in today uh the southeast is a lot of

23:11room for growth um that's kind of what we planned our flag and we're going to build that out the

23:15next

23:1615 years is there a specific um city msa that you're that you're excited about more in georgia uh

23:23middle middle georgia is pretty good warner robbins making georgia that that whole area

23:28around there we like nice all right moving on next question is about finding deals it all starts

23:35with getting in contact with the seller and pending that purchase agreement so what is your favorite way

23:39to generate leads and find new deals uh mailers really and sending checks out the check mailers

23:46for for multifamily too huh yeah sending out a check a copy of a check that looks like a real

23:53check

23:53this is our offer we want to buy it now that gets the phone ringing nice i like that i

23:59i've heard of

24:00somebody doing that before um i haven't done it myself but it sounds uh i mean if i got a

24:05check in

24:05the mail and i'd be like okay yeah that number sounds good is there uh is there a specific like

24:11um uh you

24:13know yellow letter marketing um what's the other one big one is the check are you talking about is there

24:20a specific company that that does those type of you know this rei print there's a bunch of them

24:24we use rei print nice yeah i'm gonna have to try that specific type of mailer i've always done the

24:30postcards just because they're i mean they're the cheapest but um the mail is pretty the check is

24:35pretty expensive yeah yeah but if you get a return if you get one single deal from a mailer bit

24:41batch

24:41then it's worth it so all right next question is about lessons learned not every deal we get into goes

24:47the way we expect it in fact pretty much every single time something's gonna go wrong and that's

24:52when we get to learn a lesson so what was the deal that went a little bit sideways for you

24:55and what

24:56was the lesson you pulled from it well environmental didn't do the due diligence on a deal i was actually

25:02talking to someone about this yesterday a friend of mine reached out to me hey i got this great deal

25:05the guy is going out of town he's selling his property i was managing it for him it's 25 000

25:11as a

25:11single family he gives me the address i look it up i'm like this property is 180 000 something has

25:15to be

25:15wrong no everything is good we have to close in two weeks i go check out the property i look

25:20at

25:20it structurally is good i'm like hmm you know and i've been in the business for a long time at

25:24this

25:24time all right good let's do the deal this i'm buying it way below market value so there's enough

25:29room for errors i bought a property uh quickly didn't do my environmental due diligence where we

25:36scan for actually uh i did scan for all your tank but it was no tank um and basically i

25:41did not go

25:42and check the oprah the open records report to see if there was any open permits that's the step

25:47that we take so we close on it real quick and then basically when i went to go file permits

25:52they told

25:53me there was an open permit for oil intake removal that was contaminated and there was not no no for

25:58the action letter submitted um for the remediation called my company that does the the remediation found

26:04out they were the one who actually went and and uh was involved with the remediation the person who

26:10was doing it was 180 000 remediation by the way something like that oof it's crazy so geez yeah

26:18and that i mean we hear that same kind of story so many times and it's happened to me where

26:22you don't

26:23follow your checklist step by step um you get a deal it seems really good and you're like all right

26:28let's

26:28just let's do it let's close you gotta you gotta do the do you gotta do it but we made

26:35out okay on

26:35that we sat on it for a few years covid came saved us we was able to find another company

26:40to do it for

26:40the half of the price we remodeled the house and we still make profit but we sat on it for

26:44a long

26:44time yeah and you're probably not going to make that mistake again in the future which is one of

26:49the good things about mistakes is they uh they stick with you if somebody gives me a certificate that

26:54said there's no tank i'm still doing a tank still checking it that's right uh so on the other side

27:00of

27:00that sometimes things go right and those deals stick out in our mind as our favorites so what is that

27:05deal for you i got a few of those i when you anticipate a certain value when you buy a

27:11property

27:11and you go to sell it and it's appreciated like crazy that's amazing right in one property in mine

27:17i i the value is 1.4 million on my arv sell i wound up selling a property for 2

27:22.2 million

27:23geez that's all appreciation that's crazy no it wasn't really it was really the realtor

27:30price per square foot in that area for new construction um was a few houses sold by the

27:37time i finished the project it took me two years to finish the project it was a almost a 7

27:41500 square

27:42foot home big foundation walkout basement by the time we got the variances permits and everything else

27:46it was two years later and a few homes sold uh that was the same footprint that yield that much

27:53per square foot so i was able to take advantage of that um you know all the challenges that i

27:58went

27:58through i was able to get the reward for it at the end so that was a blessing yeah yeah

28:03that is one

28:03of the best i don't do single family um i did way back in the day but that is definitely

28:06one of the

28:07advantages of single family over commercial is single family is not tied to noi and it's just

28:13tied to what things are sold around in the area and so if you get some good sales in your

28:17in your

28:17neighborhood that is uh that is a boon for you um so awesome that is uh i love that that

28:22happened

28:23that leads us to the second last question this one is a new question we've been asking

28:27it's about ai i'm a huge proponent of it um so what is a way that you have implemented ai

28:33in

28:33your business that you can suggest people do for themselves awesome as a few i'll just talk about

28:38one that comes to mind and chat gpt it allows you to create projects and you can get the projects

28:44instructions so anything you post in there will follow those instructions i mean you can use it for

28:50like quick back of the napkin due diligence you can use it pretty much for anything you can use it

28:54for

28:54meetings so i i put a prompt in there that says the who what when after each meeting give me

28:59the who

28:59what when in the summary of the meeting so we can execute it gives me that post it to the

29:03team the

29:04next meeting we go over the action items first then we get to the agenda so that helps everybody

29:08remember when we leave the meeting because people want to retain 20 of what they hear we were talking

29:12about that before the call start the who when it gets executed from each meeting using ai so it's

29:17really good yeah those projects that is something um i've been using a lot and i feel like it's very

29:23underutilized for people that even even use ai is just put you know putting those projects together

29:28so it has context about what you're putting into that specific conversation um yeah it's a really

29:33good hack that leads us to the very last question this is for the listeners you've given us a lot

29:39to

29:39think about i'm sure people want to reach out get in contact with you is a two-parter where can

29:43they

29:43find you and then what can they expect when they reach out um anywhere on social media uh linkedin

29:48facebook instagram at fuquan below and you if you you know when i have a call it's you can go

29:54to my

29:54website and ngcapitalfund.com and schedule a discovery call perfect i'll put those links in

30:01the show notes so if y'all want to reach out all you got to do is click the little

30:04more in the

30:04description it'll pull down that full description and in there you can find fuquan's links all right

30:10man that wraps it up thank you very much for hopping on the show it's been a palm pleasing pleasure

30:17and we're gonna have to have you back on to talk about uh the luxury spec homes because we didn't

30:20get to that but for everybody who's with us today thank you guys for showing up you are the reason

30:25we do this so if you guys have any questions reach out to me gabe the real estate investing

30:29club.com if you guys want to support the show um leave us a review comment anything like that

30:34other than that i hope you guys have a great week keep rocking real estate and i look forward to

30:39seeing you on the next episode

30:41you

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