300 Cold Calls Later, He Saved His Hotel Deal with Jeremy Yost

The Real Estate Investing Club

Join an active community of RE investors here: https://linktr.ee/gabepetersen 🏘️  In this episode of The Real Estate Investing Club, I sit down with Jeremy Yost, US Navy veteran, CEO of Ironhold Asset Management, and managing partner of Innovative Development Partners. Jeremy has 17 years of real estate investing experience and oversees more than 2,000 units across 56 properties spanning multifamily, assisted living, and hospitality real estate. If you want to learn real estate development, workforce housing, and property management strategies, this episode delivers real estate investing tips you can use today. 🎙️  WHO IS JEREMY YOST 🧭 Jeremy grew up watching his father work in affordable housing development, and that early exposure planted the seed for his own real estate investing journey. After leaving the US Navy, Jeremy took over management of his father's 100 unit senior housing community, which grew into Ironhold Asset Management, the property management platform he runs today with partners Amber Hendrickson and Rain Becker.  WHY PROPERTY MANAGEMENT BUILDS BETTER INVESTORS 🔑 Jeremy explains why starting his career in property management gave him a massive competitive edge as a developer and investor. Understanding tenant relations and day to day operations helps investors underwrite smarter multifamily investing deals and avoid costly mistakes many new developers make.  GROUND UP DEVELOPMENT AND MARKET ANALYSIS 📊 We dig into how Jeremy underwrites ground up development deals, including the market analysis metrics he studies before breaking ground. Jeremy shares how he evaluates new supply and rent projections to avoid an overbuilt market, a critical skill for real estate development and multifamily investing.  WORKFORCE HOUSING AS A RECESSION RESISTANT ASSET 🏢 Jeremy breaks down why workforce multifamily housing remains his top real estate investment strategy, plus how buying Low Income Housing Tax Credit properties after compliance periods expire can create long term value for affordable housing investors.  #RealEstateInvesting #MultifamilyInvesting #RealEstateDevelopment #WorkforceHousing #PassiveIncome  Want to learn more about our guest? Connect here: https://www.instagram.com/jeremyryost/  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. Welcome back to another episode of the Real Estate Investing Club. I hope

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

00:16you. As always, it is Friday on the podcast. We're bringing that good Friday energy to

00:21you guys. And man, it is getting nice and sunny here in Seattle. I love it this whole

00:27week. It's been between 70 and 80 degrees. This really is like if you guys have ever

00:31wanted to come to Seattle between June and September, those are the months to come. Every

00:37other month, it's going to be cloudy, rainy. You're not going to like it. But come now.

00:41It is beautiful. Plus, the World Cup is here. I did not get tickets, unfortunately, but it

00:46is here and it does look like a lot of fun. But it's a good day for a second reason

00:51because

00:51we have Jeremy Yost with us on the show from Innovative Development Partners. Jeremy is

00:56a U.S. Navy veteran and a multifamily developer and manager. He has 17 years of experience,

01:04over 2,000 units across 56 properties. This guy has the experience. So if you guys are

01:09interested in development, if you're interested in multifamily, this is the episode to listen

01:13to. Jeremy, thanks for hopping on.

01:16Good morning, Gabe. Thank you so much for having me. As Gabe mentioned, my name is Jeremy Yost.

01:21I'm the CEO of Ironhold Asset Management and the Managing Partner for Innovative Development Partners.

01:28At Ironhold, we focus on acquiring and operating essential housing, both in the multifamily space

01:36and the hospitality space. And then through Innovative Development Partners, that's our

01:42development side. And that's where we hold our real estate holdings. And as you mentioned,

01:49got a couple thousand units across several different asset classes between assisted living,

01:56hospitality, multifamily, primarily throughout the Illinois, Indiana, Midwest region, and now

02:03recently into Texas. So 17 years has gone fast. And year 18 has been just as fun as the others

02:10and looking forward to continued growth.

02:14Nice, man. Well, I love having people on like yourself with such a variety of experience,

02:19variety of experience with different asset classes, with different approaches to real estate.

02:23You've done development, you manage. So there's a lot to go into. Before we get into the meat and

02:29potatoes of what you do today, we always like to start with stories. So why don't you take us back

02:34to the beginning of your story in real estate and just tell us how you got here?

02:39Absolutely. It's a pretty cool story. So I'm second generation in terms of being in the real

02:46estate grind. My dad did low-income housing tax credit development. And so he was a developer

02:54from the affordable housing side of things. And he did it later on in life. He was retired from

03:00Department of Corrections, got into the bar industry. So I grew up as a young man in the

03:07bar business, watching my dad as this entrepreneur that worked these crazy hours and thought that

03:13was normal, that that's what everybody did. So when I saw my dad get into real estate, I was like,

03:18oh man, he's got so much extra time on his hands. But a new revenue stream that was creating him

03:24something to where he had time back to make my sporting events or, you know, he, for a hobby,

03:30he liked to play pool and go golf. So he gained time back. And I saw that as a young

03:36man,

03:37as a very good opportunity that, hey, someday if I have kids, and if I'm in real estate,

03:43maybe I can make my own schedule. So I had these visions. And when I got out of the U

03:49.S. Navy,

03:50I started working in one of my dad's buildings that he had. It was a 100 unit, 55 and older

03:57community.

03:59And learned the ropes and realized that my dad was paying another company 6% and, you know,

04:07to kind of handle the monthly financials, the bill pays, all of that stuff. And I was going, man,

04:13I had like a billion some dollar budget I was working with on the finance side of things when

04:17I was in the Navy. I could start my own company. So that kind of triggered it, starting out as

04:24a

04:24property manager, being in a building, working with tenants, seeing that side of being an operator

04:31and working with your tenants. I knew I was like, man, this is what I want to do. And that

04:37ignited my

04:38fire. Nice. So you started out managing your dad's units, your dad's portfolio?

04:45Yeah. As soon as I got out, I took over a hundred unit complex. And within two years,

04:52that was, I started, it was then it was Yoast Management Services, Inc., which is now Ironhold

04:58Asset Management. And started that out thinking it was just going to be properties that I owned and

05:06developed and that it wouldn't be a real company that rolled into something. And sure enough, once I

05:17had seven of my own deals, there hit a point where there was a change that started to occur of

05:24starting to work with other operators that needed a little extra help or that they didn't want to deal

05:31with the management side of things. So ended up kickstarting it into something and got an amazing

05:40partner. And Amber Hendrickson, she's our president of the management company. She's an amazing partner and

05:46operator. And Rain Becker's our other partner who's in charge of operations and growth.

05:53And she's kind of spearheading our Texas division. So we've got amazing partners in place and we're

06:01just trying to streamline our efficiency to continue growing.

06:05Nice, man. Yeah. I'm always a little jealous of people who started out in property management

06:11because that is the piece that really defines your returns. If you have a good property manager,

06:20it is night and day. Good property manager versus bad. We've had it with our mobile home parks. We've

06:25had property managers that sucked and it was a nightmare. In fact, we almost sold assets because

06:31of management. And we were to the end of our rope and we were just like, we can't do this.

06:36This is

06:37just driving us crazy. But then we ended up finding a really good property manager. And literally it was

06:42night and day. The difference between owning that asset and owning the one with the bad property

06:47management was crazy. So understanding how to manage a property is crucial, not only in the management of

06:58itself, but also in asset management, understanding what a good property manager looks like.

07:04How did that inform your investing once you started buying your own assets after you started managing

07:11your dad's 100 unit apartment complex?

07:14You know, I'd started with a single goal of I'm going to do this. I don't exactly know how I'm

07:22going

07:22to do this, but I was willing to go in and spearhead and figure it out. So the starting as

07:30an operator,

07:31when you know how to actually interact with tenants or how a property actually operates,

07:36it gives you such a different competitive edge as opposed to a developer that may just like to build

07:44and get something opened up. And then they kind of exit the deal and somebody else operates.

07:51You understand the true nuts and bolts when you get to start from that perspective. So

07:58I knew how to work with tenants. I understood the day-to-day interactions. So at Ironhold,

08:07we focus on those essential housing with that background in multifamily workforce. We focus on

08:14that because at our core, Amber and I both started in properties on that level of working in and

08:24learning how to execute throughout all those different types of opportunities through management

08:29platforms and guiding successful properties. And that comes from starting at the bottom of

08:38operating a property. And it gives you such a different outlook on things because you understand,

08:43especially the tenant relations and how important it is to have a strong backbone in management because

08:50managers make or break deals just like maintenance can.

08:54Yeah, absolutely. At what point did you break out into development? And when you say development,

09:00do you mean ground up or are you talking about?

09:02Ground up. Yeah. So 2008 was the first project I kind of worked on, which was an assisted living.

09:12And we got that built. And I was more or less a consultant on that deal. And we were able

09:23to see it

09:23through construction and get it open. And I'm part owner on the building now and then saw my second one

09:32ground up in 2010. So it took a couple, only took a couple of years to get some things going.

09:39Um, but then once, once those were successful, I kind of knew it was like, I could do this as

09:46a

09:46developer myself. Uh, if I can oversee this and, and work through, uh, construction management with

09:53the general contractors and, um, you know, kind of help us get to a point where we can actually

10:00proudly say, Hey, we're vertically integrated. We know how to do this. Uh, this is, this is within

10:06our wheelhouse and it gives us that much more of a competitive edge because again, not a lot of

10:13people can understand that construction side. It's one thing having your GC, but being on the sites

10:18and understanding the construction process of, Hey, this has to be built this way because of A, B,

10:25and C, and you start to understand things a little better. And again, it's gives you that much more

10:30confidence in what you're doing and it weaponizes you as you do more projects because of what you know

10:37and what you've been through. Yeah. So, I mean, you guys also do repositioning. You buy, um, buy

10:44existing assets and, uh, and put them into your portfolio and manage them, turn them around.

10:48Of the two experiences, if you could choose one, which one do you feel it's you best and, and is

10:54a

10:54better experience as an investor? So, uh, that's an incredibly tough question because, um, every

11:04deal has its own thrill and, you know, we just closed, uh, last month on an acquisition of a 52

11:12unit

11:12multifamily in Houston, Texas. So, you know, that was extremely exciting. That was our first deal that

11:19we closed in Houston and, uh, hoping to close a handful more this year still. And, uh, that was

11:27really fun. And that, that process is great. I think for me, um, my sheer most excitement is new

11:34construction because it's my vision of a project and Hey, here's this parcel land I've got. And I want to

11:43put this together, work with my architects, explain the breakdown of how I want the duplexes laid out.

11:49And I want to have a walking path or a community garden, um, playground needs to go here, picnic

11:55tables and grills over here, trash receptacles, you know, that whole design process through and

12:02through. I really love because on that development standpoint, we prefer to build essentially

12:09residential neighborhoods that blends in with your surroundings. So, uh, our typical, uh, cookie

12:16cutter project is going to be slab on grade duplexes broken down into one, two and three bedrooms. So it

12:22blends in, uh, with your community and sometimes is a, uh, like an eyesore, like high rise apartments

12:28can be. So it gives it more of a, a community feel. Yeah. Yeah. The, the thing I've been approached,

12:36um, by some people with, you know, development projects and I've always,

12:39uh, been a little, not afraid, but just, uh, um, I've turned away from them because I,

12:45the under, I can underwrite a, an existing asset because they have cashflow that things are coming

12:51in. I can look at the P and L and it makes sense to me. But when I look at

12:54a development project,

12:55it's all speculative. I mean, it's, it's based by market numbers, but it is essentially speculative

13:01and it makes me just nervous. Um, how do you underwrite these development deals? What, what,

13:06uh, what steps do you take to get your assurances? The biggest thing is your market analysis.

13:13I mean, no, and if, or buts about it. You want to have a detailed report that, you know,

13:19is going to cover your bottom line of the projections that you're putting into place.

13:24So if a market study for me is questionable, I'm out. Um, I go, go one layer deeper into that.

13:37Like what, what specifically are you looking for? If you, you know, if somebody gave you a market study

13:41right now, what, um, what numbers I, you know, I don't know, uh, the population, uh, um, sure. So I

13:49want, I want cushion that there's enough for, uh, you know, 500 or more units to be coming into,

13:58uh, a market. If that's okay, who's under construction. I want to know how many numbers.

14:05Okay. So if this report saying this number is good, what, what's the new supply that's going

14:10to be coming in? How many units is out there? Am I going to have a potential from the timeframe

14:15that I actually have a shovel in the ground to where they open? Now, are we getting in time to

14:22where I'm going to be coming into an overbuilt market? Am I going to have to drop my rents for

14:26my initial projection? So those are the things that I really look at, um, because I want to be as

14:34conservative and safe as I can. I want to go into a market that has wiggle room to where my

14:42project

14:42coming in, is it going to create chaos in the market? Yeah. So when you say market for in

14:51thinking of multifamily, um, so for like self-storage, your market is really like a three

14:56to five mile radius around where you're building. Cause that is people like for self-storage,

15:01they just drive. It has to be within three to five miles or else it's kind of outside of,

15:05of, uh, viability, um, really tight, tight area. When you look at the market for multifamily,

15:11are you looking for all of Houston or like what, how, how big of a radius do you throw?

15:16So like in, in Illinois, we cover the entire state bottom, bottom half all the way through

15:22top. I guess my point is everywhere. Yeah. How do you know if a market's been overbuilt

15:27for multifamily? Uh, again, it goes back to doing a market analysis. You look at the number of units

15:34that's in the area. So like Houston, it's a growing community. Um, their numbers are going up

15:41each and every single year, uh, different, uh, neighborhoods around Houston are getting

15:47gentrified. So there's a lot of, there's a lot of opportunity. And so for that specific market,

15:53when we did our research and CMAs, um, we've looked at positive performing assets that were

16:01like class C range and saw that the, the demands were there for those. So our goal in Texas is

16:10more

16:11on the acquisition side. Got it. We'll look at new construction down the road in the next few

16:17years. But right now our, our sole mission is just acquisitions in and around the Houston area right

16:23now. Yeah. And you also mentioned a number of different types of asset classes. I mean,

16:28you mentioned multifamily obviously, but you've said assisted living and there were a couple more

16:31in there. Um, why, why do you do all these different types? And is there one that you feel

16:38has a, a better opportunity currently? I mean, I think your, your workforce multifamily housing is

16:45number one. Um, it's a class that's always going to be high in demand. So, you know, you can have

16:52luck in picking up, uh, light tech low income housing tax credit deals after their, uh, 15 year

16:58compliance periods expired. Uh, you can usually get a good buy on those and slowly as the regulatory

17:06land use agreement expires, convert those into market rate units. Um, but that, that workforce

17:13housing is going to be your greatest, uh, asset right there. That's not going to fail because

17:18that class is always going to need stable, affordable housing. And so that's like our,

17:24that's our, our main niche because it's a safe asset class to go after. Uh, hospitality is different.

17:32Um, it's fun. Um, it was something that I more or less had a goal of doing and wanting to

17:40get into

17:40that field. So we built a Hilton garden in with a convention center and we just sold it a couple

17:46months

17:46ago actually. Uh, but we were still kept on for management. So, um, and we're looking to continue,

17:54continually grow on the hospitality side. And, uh, we've done very well with that and open to new

18:01hospitality ventures. So you're, you're managing, um, a hotel as well as your multifamily.

18:08Yes. Interesting. How, how is that different? I, uh, like way back when I used to, um, bartend at a,

18:15you know, a hotel chain. Um, and, uh, it was just like the management of that was chaos.

18:22And so I'm just watching the manager get it done. Uh, I have a great, I have a great director

18:28of

18:28hospitality, uh, in-house, uh, Lucas Combs. He does a phenomenal job. Um, it makes our, our job a lot,

18:36a lot easier. And he's the direct, uh, bridge to our ownership group that we work with. Uh, I think,

18:43you know, communication is key in that you've got, you know, a hundred and, 102 key, uh, hotel,

18:49hotel and, um, an 8,500 square foot convention center. And, you know, you're running between,

18:56you know, 35 and 50 employees in a full service hotel with a restaurant and bar and convention center.

19:02Um, you know, over, over five years, you get it down pat.

19:06Yeah. I can imagine food and beverage sides crazy. That's, you know, people don't want to work.

19:13Uh, and it's, it's tough, but, uh, bartenders can make some good money in a full service. Uh,

19:21when you've got transient travelers that are, that are business people though. So bartenders,

19:25uh, they, they usually fare out really well in those hotel bars.

19:29Yeah. Yeah, absolutely. Awesome, man. Well, it looks like we have run the clock down. It is time

19:35to jump into the quick question round. Are you ready? Absolutely. All right. It starts with

19:40education. It could be any form. It could be a book you've read, movie you've seen, mentorship program

19:45you've been a part of, anything like that. I just need two recommendations, one for general life

19:50wisdom and then one for real estate. Okay. General life wisdom. Oh man.

19:58Man. You know, for that. Oh man. What's the name of this book here? I've got here on my notes.

20:09Let

20:09me pull this up. It is, uh, I'll tell you the real estate one, real estate one, rich dad, poor

20:18dad.

20:19And I say that because Robert Kiyosaki is just legendary to the real estate game. But I read that book

20:27when I got out of high school and it essentially changed my life of understanding of how things

20:37work and the tax code and the benefits of real estate and knew just by reading that it, it changed

20:48my whole perspective. So yeah, that's definitely the real estate one. But also I think I'd have to tie

20:52that in with just the life changing in itself because I genuinely became obsessed with real

21:00estate at that point from reading that book. And I knew that that was what was my whole life was

21:07going to be. So I think I'm just going to have to tie it into both because I wouldn't, I

21:13wouldn't be

21:13where I'm at today if I would have never read that book. Yeah. Yeah. That was the one that got

21:20me

21:20started as well. It's crazy. It's such a small book and it really doesn't tell you anything about

21:25how to do real estate at all. It just tells you why, why real estate matters, why you should do

21:30it.

21:31Um, and it, yeah, it lit the fire under me and got me going. Um, so, and there's been so

21:36many people

21:36on this podcast who did that same thing too. So it's, it's great to see. Um, well, it's just crazy.

21:42That's one book had such an impact on, on so many people. Yeah. And like you said, it's a,

21:47it's simple. Yeah. Very easy to understand. I think I did. I read the whole thing and like,

21:53it was, I think it must've been one or two sessions. It was crazy. Um, yeah, yeah. Same for me.

21:59Yep. Moves us to the next question. This is for your younger self. Let's go back to the Jeremy who

22:04was just getting out of the Navy. I don't remember the year you told me, I think you said 2008

22:09or

22:10something like that. Go back to that, Jeremy, give him one piece of advice moving forward.

22:17Build bridges. Don't burn them. Interesting. Okay. Go, go one more layer deeper into that.

22:25Throughout life. You really don't know who you're going to meet or who you're going to see.

22:30So any business interaction that you have, there's a good chance because as big as the world is,

22:38there's a good chance you're going to see them again, or your paths are going to connect.

22:42So I would go back and I'm all about positive energy and putting just good energy out to the

22:49world. I would go back to myself and tell, tell myself build bridges. Don't burn them at that age.

22:57You know, I've, I've done a pretty good job over that, uh, throughout my entire career because I'd

23:02rather work with people than be against them. But you know, we were all young and dumb once

23:09and didn't make the best of choices at certain times. And it's because we're human, we make

23:16mistakes. Um, and that would be one of the things that I would go back to and ingrain that in

23:22my head,

23:22because I think it would have given me a couple of extra steps forward, um, than where I'm at right

23:29now. Yeah. Yeah. It's really good advice. Um, and especially, you know, if you have a bit of a hot

23:35head, um, it's easy to, if something goes wrong to just kind of go off. Um, but having that

23:42restraint and then recognizing that, you know, every person you talk with could be a long-term

23:46relationship. It could be something that builds into the future. And so I feel like that's really

23:50good advice, especially for, uh, your younger self. Um, especially for your younger male self,

23:55I feel like is build bridges. Don't burn them. Um, absolutely goes on to the next question. This is

24:02about the U S I think I know how you're going to answer this one, but I'm going to ask

24:04it anyways.

24:05United States is a big place. There's a lot of opportunity out there. Give me the single Metro

24:10you're most excited about investing in today. Oh gosh. I mean, Houston. I mean, um, that's,

24:19that's going to be the new bread and butter. Uh, we've done exceptionally well throughout the Midwest.

24:24Uh, that's been home base, uh, but it's time for growth and new markets and, uh,

24:31uh, Texas is booming. Houston's booming. It's the fourth largest, uh, city in the United States

24:36of America. And they, they just have something going on that almost nowhere else has and getting

24:45in there now, I think is going to be a game changer over the next few years. And obviously lead

24:51to us

24:52getting into other, other States as well. I mean, we'd like to go nationwide as much as we can.

24:58So nice. Yeah. I, uh, I own in Dallas and, um, and San Antonio and I, I have been looking

25:06at

25:06Houston. It's such a huge Metro, just massive. It's crazy that it's still growing because it's

25:12like so big. The reach is so big. I mean, and San Antonio and Dallas, we're looking at a couple

25:19things there too. Um, those are great areas to get into. Um, I would love to, to get into those

25:26markets as well. I mean, just Texas in general is incredible. Yeah. Speaking of getting into

25:32markets, um, next question is about finding deals. It all starts with getting in contact

25:37with the seller and pen in that purchase agreement. So what is your favorite way to generate leads

25:42and find new deals? A lot of times just cold calling, uh, find apartment complexes. Uh,

25:49obviously I've got some strong relationships with some brokers across the country that, uh, send

25:54me deals. So I'll look at those quite a bit. Um, you know, I think for me, what I'd look

26:00at

26:01is I just have a specific cash on cash return for me, pretty simple of what I, what I look

26:06for to, to get. And unlike, I think most developers, I'm more of a networker. I don't have to have

26:17it all take a chunk here and there to, to build something up and how I can build a network

26:23of,

26:24you know, split a deal up with five or six different partners. And maybe that allows us

26:29to do three to five deals instead of doing one and, and spread it out that way. And so I'm,

26:34I'm more

26:36about the cash on cash returns and working with like-minded individuals that want to growth.

26:43They want the growth. It's not about, I need, I expect this much cash out of this deal. I want

26:48the growth. So what, what do you have like a specific number when you get a deal? What is the

26:54cash on cash you're looking for? I, I, I like between 10 and 12. That's a solid, safe, solid,

27:00safe number. Um, and it allows us to say no more than it does. Yes. Uh, and it's good to

27:07be picky

27:07because there's always going to be another deal no matter what. Yep. The right one is going to be

27:13the one that you land and close on. And if you don't close on it, obviously it wasn't the right

27:18one. Yep. Yeah. And it's so hard, um, to keep that in mind. Uh, well, I guess I'm speaking for

27:25myself here is, especially when I haven't closed a deal in a bit. Um, I, I get antsy and it's

27:30so

27:30hard to remember, like, there's going to be more just say no. If it doesn't meet the criteria,

27:35say no. Uh, that is right. Always be a no. You should say more, no way more than you say

27:40yes.

27:41Um, and it's so difficult to, or it's so, um, hard to keep yourself from, from changing any,

27:48any element of your criteria if you haven't closed a deal in a while, at least for me. Um, and

27:53it's

27:54definitely something that, that I'm working on myself. You gotta, you gotta hold yourself, uh,

28:00on that fine line of reminding, Hey, this is why I'm doing this. I gotta keep my bearing and

28:07really make sure it's the one I want. Yeah, absolutely. Leads us to the next question. This

28:14is about lessons learned. Not every deal we get into goes the way we expect it. In fact, pretty

28:18much every time something's going to go wrong and that's when we get to learn a lesson. So what was

28:23a deal that went a little bit sideways for you? And then what was the lesson you pulled from it?

28:28Uh, uh, my building, my Hilton garden in, um, uh, we lost our financing after we started

28:35construction. Uh, banks pulled a loan and, uh, it was during COVID. Uh, so our ownership

28:44group ended up funding the first $6 million to keep the project alive. Uh, closest I have

28:51ever been to going bankrupt. I mean, basically emptied everything I had slapped.

28:57Double, triple mortgages on where I could put things in, uh, to, to keep things going. Cause

29:03I was all in and bleed in the project. And, um, you know, over a course of 18 months, I

29:10was

29:10on the phone every single day. Uh, I called over 300 lenders worldwide. And, uh, finally

29:16on that 303rd phone call, I got a yes and, uh, we got it done. And as I mentioned earlier,

29:22we obviously we've since sold it and we still operate it. So, uh, uh, you know, coming to a,

29:28uh, a realization of I've been there, emptied my bank account, completely emptied my bank account

29:35for, uh, a project that we believed in and that, uh, we wanted to see it through cause we knew

29:42how

29:42good it was going to be. And so I can say, um, through the 18, now this is year 18

29:49through that,

29:50you know, no, never had a failure. And in none of our apartment complexes, we've ever had to make

29:56a capital call, but we've been through the worst part of it, of, you know, I've been there at zero

30:03having nothing worrying about how my team's going to provide for their families. If something happens,

30:09um, because of a potential disaster. Um, but I knew that if I just didn't quit working,

30:16that I wasn't going to fail that eventually a no would go to a yes. And I just had the

30:23grit and

30:23kept the grind and just was on the phone five days a week until I got my yes. And, um,

30:30no matter what,

30:30just don't give up. And that, uh, so many things to comment on there for one. Uh, I mean, you

30:37just

30:38described in my mind, what you, what I look for in partnerships is tenacity and, you know, things are

30:43going to go wrong. It's not, will they go wrong? It's what will go wrong. And so you just need

30:48to

30:48be able to push through every, you need to make sure that everybody on your team, uh, is, is willing

30:54to roll up their sleeves and make sure that the deal works out. Um, because things are going to go

31:00wrong all the time. And it's, it's, it's, uh, it's usually not most of the time. It's not something

31:05that could have been predicted. It's something that's just completely random, but random things happen

31:10all the time. What is it? Murphy's law. Um, if it can't, it's law. Yeah. Yeah. It will go long.

31:14Uh, so I, you know, I love that you did that, but I'm surprised your financing was pulled

31:21while you guys, like while you were in the, they used, they used the equity first that we had put

31:26in. And so the bank had never drawn on their money, which gave them an out. Interesting. Wow.

31:32That's, that would be stressful. But, and one other thing I wanted to highlight for everybody

31:36listening, uh, he said 303rd call is when he actually got the lender to the second lender

31:44to step in 318 months. So many times I talked to the, you know, people I coach people that

31:50are in the school community. Um, and they say, you know, I made, I made 10 calls. I made 20

31:55calls and I, and I didn't get a deal. I, I always look at them. I'm like that. You don't

31:59understand

31:59the volume you need. It's not 10. It's not 20. It's 300. It's a thousand. You need to keep,

32:04keep doing calls, keep making calls, keep reaching out. Um, and eventually you'll get

32:09something because, uh, it really is volume in real estate. You have to just keep going

32:13until, uh, until you get something. So really good story. I'm glad you guys came out on the

32:17other side and I'm sure that was extremely stressful, but, um, it, you know, it put a

32:22scar on your face and, uh, and you can tell that story later in life.

32:25It just makes you that, that much tougher of a person and more resilient to what, what you

32:31can say you've been through and you come out better on the other end.

32:35Yeah. More confident too. You, if you come through something like that, you're like,

32:39I made it through. All right. I'm on made it through, but I don't want to feel that again.

32:42Yeah. All right. Uh, takes us to the next question. That was lessons learned. The other

32:49side of that is the highlight reel. Sometimes we get into a deal and things just seem to go

32:54right. Those are the deals that kind of sit in our mind as our favorite. So what is your

32:58favorite deal? I'd say, uh, most recent, uh, favorite deal would be the last one that I,

33:05uh, built. We, a couple of years ago did a 25 one bedroom apartment complex and, um, did it under

33:15the permanent supportive housing program. So as for individuals, uh, that were on the brink of

33:20homelessness, uh, developmentally disabled, um, had a bunch of, uh, partnerships set up in place with,

33:27uh, you know, community care organizations, uh, set up counseling services for the tenants.

33:32Uh, it was a passion project of mine that took seven years, uh, to, to get it a shovel in

33:40the

33:40ground. Uh, just given the nature of, uh, the type of housing, it was a lot of people, uh, firmly

33:46believe in, in helping homelessness or they, they, they preach about it. But when it comes time to

33:52building a development, it's the nimbyism hits and it's not in my backyard or not here, not there.

33:58So, um, you know, I finally found a piece of, piece of ground that was zoned accordingly and I

34:03bought it and, uh, found my way in and built a code and was able to, to get it. Um,

34:10but we just,

34:11you know, fortunately with weather and different things like that, uh, from ground up construction,

34:15it took us 89 days to build and we pre-leased a hundred percent, 89 days. That's it. 89 days,

34:2289 working days. That's crazy. So, uh, yeah, we've got a great building model, uh, or duplexes.

34:31If we build a 56 unit, we knocked that out, ground up five, six months. Uh, very quick,

34:37very efficient. Uh, but that was my favorite project because at the end of the day, you're

34:42helping people that hadn't had homes and, uh, affordable housing has been my, my background.

34:48I grew up around it my whole entire life. And, uh, for those that are less fortunate about the

34:54situations of, of having things wrong, uh, and not being able to have the right support groups, I,

35:00I firmly believe that everybody deserves a nice place to live. Yeah. Yeah. And it is housing is not a,

35:06not a, not just, uh, uh, a public policy, but it's a basic human right. Everybody deserves a roof over

35:14their head. Yes, absolutely. Um, with the caveat that, uh, nobody should have to lose,

35:19buy something that loses money. Um, I see so many conversations, especially when people talk about

35:24New York, uh, they, they're angry at landlords. Um, but the, the, the economics just don't make sense

35:31with all of the things that a landlord has to pay for in cities like that. Um, and so, yeah,

35:38it's,

35:38it's awesome that you were able to do it and have it still pencil, have it still make sense. Um,

35:43and

35:44that, that is the kind of, uh, workforce housing that I, I love to see, um, I love to see

35:48happen.

35:49So that, yeah, I'm sure that was a very, very good experience there. It was leads us to the,

35:56actually, this is the second to last question. Um, this is a new one we've been asking because

36:00AI is new, but it is here to stay and it's making huge impacts in everybody's business that implements

36:06it. Um, so are you using AI in your business and how are you doing so? Absolutely using AI in

36:12almost

36:13every aspect of our business without it getting in the way of losing the personal touch.

36:20So I say that in it's helping with operations, uh, certain tasks that are monotonous or repeatable

36:27that, you know, AI could step in and we can build, um, through vibe coding, whether it's utilizing,

36:35you know, cloud services or, um, you know, Zapier or any of the other notions and you, you plug all

36:43these programs together. And so we can do monotonous tasks with reconciliations, um, day-to-day occupancy

36:51reports for certain portfolios. You can run all these different API keys that, you know, individually,

36:56if you're looking at, you know, for me, if I'm pulling and looking at my 16 different companies,

37:01it takes me a couple hours to put all those reports together if I'm manually downloading them.

37:07So, uh, I took the time and built a dashboard that runs these. So every day that I click refresh,

37:14I've got a dashboard that I can look at. That's just my portfolio that I takes me 10 seconds to

37:20click.

37:21It makes my life a little bit easier. And what did this, what does that do? Well, that adds a

37:26couple

37:26hours to my day each day that I've just gained back. So it's essentially a great tool for time

37:35management. Yeah. Yeah. And to divide and conquer a lot more. And it can just, uh, crunch data better

37:43than any team of analysts out there. I'm telling you, I, I, we said that without a doubt before on

37:49the

37:49show, like what, um, what I've been implementing is, uh, for each property, we have a project in

37:54Claude and we get just every piece of data we can get from call rail, you know, call, call numbers,

37:59all that stuff to the financial side of things, to even transcripts of conversations, you know,

38:05meetings that have happened about the property. And it all goes into one repository and then

38:08Claude just crunches it and pushes out a report that I can read. Um, and it is, it's amazing to

38:16have,

38:16to be able to have all of those different types of data fed into one system and then analyzed and

38:22pushed back out into something that's, that's digestible. Um, it gives me, you know, you as

38:26the owner, such a, um, a better can not control, but a better, uh, kind of pulse on how your,

38:34your company are, your properties are doing and what, uh, you know, if there is something that you

38:38need to step in to address, um, you can see it a lot, a lot sooner than you would otherwise

38:43be

38:44able to, or it would have other, you know, might've made a mistake later on, but, um,

38:47you'll be able to know that. It gives you that little direct connection. Yeah, absolutely.

38:53Um, awesome. Well, that leads us to the very last question. This is for the listeners. You've given

38:57us a lot to think about. I'm sure people want to reach out, get in contact with you. Is it

39:02two parter?

39:02Where can they find you? And then what can they expect when they reach out? Absolutely. Uh, it can

39:07be found on LinkedIn or, uh, through, uh, Instagram at Jeremy R. Yost. Uh, best place to reach out,

39:15I guess, business contacts wise would be, uh, LinkedIn, um, open to discussions of networking,

39:21potential deals, how we can work together. Or if you're looking for, uh, management, uh, check us

39:27out at, uh, ironholdam.com. It's ironhold asset management. You can also message our page,

39:33uh, that we have on LinkedIn or Instagram, Facebook on any of those. If you need management

39:38services, we can go nationwide. Uh, we typically look at 50 units and above.

39:44Perfect. I'll put those links in the show notes. So if y'all want to reach out,

39:48all you got to do is click the little more in the description. It'll pull down that full

39:51description and in there, you can find Jeremy's links. All right. That wraps it up. Jeremy,

39:58thank you very much for hopping on the show.

40:01Gabe. It was a pleasure. Thank you so much. Have a wonderful day.

40:04Absolutely. For everybody who's with us today, thank you guys for showing up. You are the reason

40:08we do this. So if you guys have any questions, reach out to me, Gabe at the real estate investing

40:12club.com. If you guys want to support the show, just leave us a comment, review, anything like that.

40:17Other than that, I hope you guys have a great week. Keep rocking real estate. And I look forward

40:22to seeing you on the next episode.

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