The Real Estate Law Podcast

Accelerate Your Real Estate Wealth with Dealmaker Casey Brown from CashFlow Pro

August 16, 2022 Jason Muth + Rory Gill Season 1 Episode 63
The Real Estate Law Podcast
Accelerate Your Real Estate Wealth with Dealmaker Casey Brown from CashFlow Pro
Show Notes Transcript

In this episode, we're speaking with Casey Brown, host of CashFlow Pro and the CEO of 3000 Capital, a private equity firm that specializes in placement of individual investor funds into commercial real estate opportunities, acting as a "fund of funds."

Learn how  regular people (non-institutional investors) can capitalize on commercial real estate deals that have traditionally been reserved for institutional investors.

At 3000 Capital, Casey works with accredited investors and earns them preferred returns at smaller investment levels by being the one personally vetting investment projects, pooling funds in order to purchase Class A shares, and then managing the individual investors.

Since May of 2007, Casey has been involved in over 400 real estate transactions totaling close to $500,000,000 in sales. 
 
Casey is a bourbon lover - a man of our own heart - and we can't wait to take a trip south and join him along the Bourbon Trail to hear the stories behind the distilleries there!

Things we discussed in this episode:
- Why Casey moved back home from Colorado to Western Kentucky
- The value of local marketing and the value of being well-known within the community
 - Advice for agents who came of age in this industry when complacency was the norm
- The significance of setting proper expectations with clients
- How do you break out of your old habits, even the good ones that served you well in the past, and just be more agile investor?
- Accredited vs. Non-accredited investors.
- The types of investors who might be ready for an investment with 3000 Capital
- What being a fund of funds means
- The importance of teaching financial literacy in schools

Get in touch with Casey:
CashFlow Pro website - https://www.cashflow.pro
3000 Capital - https://www.3000capital.com/
Instagram - https://www.instagram.com/cash_flowpro/

Join Jason Muth and Attorney / Broker Rory Gill of NextHome Titletown and UrbanVillage Legal in Boston, Massachusetts for another episode of The Real Estate Law Podcast!

#realestatepodcast #nexthome #humansoverhouses #realestate #realestateinvesting #realestateinvestor #realestatelaw #realestateagent #financialindependence #financialfreedom #cashflow #investments #quityourjob #passiveincome #accreditedinvestor #fundoffunds #financialliteracy #cashflow

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The Real Estate Law Podcast is hosted by Jason Muth and Attorney / Broker Rory Gill.

This podcast and these show notes are not legal advice, but we hope you find both entertaining and informative.

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Casey Brown:

The complacent part of the business is really what causes a lot of agents to fail, even successful agents that enjoy success. And then all of a sudden, they're like, oh, so your ability to transition through market changes, is what's going to differentiate. Basically, the winners from the losers, the men from the boys, the whatever.

Announcer:

You found The Real Estate Law Podcast, because real estate is more than just pretty pictures. And law goes well beyond the paperwork and courtroom argument. If you're a real estate professional, or looking to build real estate expertise, then welcome to the conversation and Discover more at the realestatelawpodcast.com

Jason Muth:

Welcome to another episode of The Real Estate Law Podcast. Thank you so much for listening. Once again, we are here with attorney broker Rory Gill NextHome Titletown Real Estate and UrbanVillage Legal in Boston and we have another podcaster and an amazing guest that we have right here. I mean, I shouldn't just say your podcast or Casey because you've done transactions that are totaling over half a billion dollars, which we can't even say that we've done that. So you know, thrilled to have you on the podcast. This is Casey Brown, he is the CEO of 3000 Capital. And he is also the podcaster that you need to listen to the podcast and we're gonna get you synced up afterward as to how to get a hold of his podcast, but CashFlow Pro. If you have not checked this thing out, it is full of amazing information. Casey's a really cool host, he makes it very easy to get his guests to open up to him. And we're hoping to hear the same thing from Casey today. So Casey, welcome to The Real Estate Law Podcast.

Casey Brown:

Absolutely. Glad to be here. Thanks for having me.

Jason Muth:

Yes. Well, you know, we used to thank you for actually appearing on the podcast. I mean, like you have an amazing reach, and you've done all these great deals. And I really have to apologize for the backgrounds that you're staring at with Rory and myself. This is like legitimately, like the world's most boring podcast backgrounds that we're presenting to you today, especially versus yours, which I just have to admire. I love the shiplap.

Casey Brown:

Hey, well, I'll tell you what we're gonna do. We're gonna make up for the visual imperfections with content, we're gonna get people people will not worry about the backgrounds once you show them how they can make money with their money.

Jason Muth:

Alright, hey, I love that. And Rory, you know, you and I are going to have to, like just do a better job with these backgrounds. And we'll explain all that another point, but like, you know, we just happen to be kind of moving around a little bit these days. And that's why you're staring at blank walls, right?

Rory Gill:

With a podcast on the road at the moment, but we'll settle back into a new routine.

Jason Muth:

So Casey, like you were born in Western Kentucky, and then you found your way out to Pueblo, Colorado, which we've actually had a number of guests on this podcast in Colorado lately, and a number of episodes ago we were talking to some land purchasers, Brent Bowers and Dan Habercost who was actually in West Pueblo I think was the town that he was in.

Casey Brown:

I've talked to one of those two I think on my podcast they do Yeah, some land acquisition some lots and some things and it's called Pueblo West so yeah,

Jason Muth:

Yep Pueblo West is the same guy that did Lake Havasu is what Dan was telling us. Teally cool infill lot development he's done in Florida now but you know, he's really hustling and was a great guest. Brent and Dan were both great guests and interesting they found a way to your podcast as well. Maybe we're all finding the same great stories out there. But now you're - are you back in Kentucky now?

Casey Brown:

I'm in Kentucky now moved back here. I left Colorado in 2000. When I graduated high school grandmother was still living at the time she lived on the family farm here in in Western Kentucky. We're just about an hour northwest of Nashville, Tennessee. I don't throw in states there. But we're actually just across the state line and my grandmother was here. I really wanted to come back to the family farm just because it was such a it was such a rooted thing in my childhood in my life that I wanted to spend some time there after I graduated to kind of get some bearings on what I wanted to do with my life. That's really the main reason because everybody's like, why did you leave Colorado? Colorado is so pretty and this and that I was just like I just personal reasons. It wasn't anything against anybody there. I love my mother, my stepfather. I love my stepbrother. I love all them. But I just I had to I had to come back and make my way back to her to see what see what life was about.

Jason Muth:

Yeah. Everyone's got their own reasons as to why they move around. You know, people go to Colorado and they find themselves they see the mountains and they say I'm never leaving this place because they come from somewhere flat and somewhere a little bit, a little bit poorer. And some people have family reasons they want to go back home and I mean, can you show everyone that the Kentucky the Bourbon Barrel thing that you show if that? I love that thing. We got to get that on camera because we're also big bourbon drinkers. And yes, we're very jealous that you are in bourbon country in Kentucky.

Casey Brown:

Yes. And get a chance. We would love for you to come up here. And we'll go on the Bourbon Trail and go to the distilleries. And one of the lessons of my life was actually you know, taught to me through bourbon and the fact that you know, when you really think about bourbon and you line them all up, you know, they all have their own tastes. They all have their own intricate flavors. They all have their own differences, right. But the main thing that a lot that when you do these Bourbon Trail things that people focus on is the stories that come out of the distillery like like, for instance, if you just look at just go back and look years ago how NASCAR was born, and then he would start telling the story of NASCAR and those guys were running moonshine and run and whatever other types of spirits they were running up through those, he'll be just the stories that come out of that stuff is really what becomes and then the bourbon is kind of the bridge the connection between us and those, just those rebel type activities or whatever, you know. So it was it's, but yes, I would love for you all to come up here. And we will definitely go through that if you can make your way up because I'm a big bourbon lover as well.

Jason Muth:

All right, I think we're going to take Casey up on that. We certainly had a couple of bourbon stories last Thursday night, didn't we?

Rory Gill:

We sure did. It bring it brings people together.

Jason Muth:

It is funny how the bottles of rose actually turned into the bottle of bourbon as the evening went on. Let's unpack a lot of your story here. I mean, you've been doing this since 2007, you've done over 400 real estate transactions totaling close to a half a billion dollars.

Unknown:

Yeah. So basically, if everybody will remember back, oh, 06-07, early 07, like there was the market was just grabbing, it was just, it was rocket feel. You just, I always always liking this on my podcast, people say, well, there was never going to be another bad day, right? And then all of a sudden, we woke up I'll never forget, I was exercising at the YMCA here in town. And I remember seeing it on the screen. GMC goes bankrupt, or, you know, this was all about the same time, there's just this massive financial crash, like everything just blew up. And you know, and what was so intriguing about that is that the government supposedly had set all of these standards through the FDIC and had said all these lending standards and everything that they've been working on, basically, since the Great Depression. And basically, they were everybody was sitting there going ball, that stuff was supposed to work what's going on here. And, and again, we got into a position where a lot of the you know, the country got into a position where a lot of people get themselves into an over leverage, you know, they were just we were just we were borrowed out to the max, we were, you know, we didn't have our ceilings and all were kind of just maxed, you know, and we just didn't have anywhere to go but a crash. So instead of just easing things back down, and just of course, we all know we did. So when I started my career, that was the beginning, right? So 07, oh, I sold one or two houses. And I was like, man, this is all right, I can stand these little eight or $10,000 a month trying deals, I was like, man, this is this is gonna work, right? Then all of a sudden boom blew up. One thing I realized through the blow up is that my phone was also blowing up, because now all of a sudden people like basically, you could send a parrot out to the front yard, and he could sell your house for you at one point. And then after that, everybody's like, Oh, we need somebody that has marketing knowledge that has an understanding of the real estate market that can get this thing out there, beyond where I can get it out there, right. And so that really was the beginning of my bulk of my story and my rise in my local market, I guess, if you will. And so with that, I realized that you just had to get you had to get an audience. Okay. And so that's what led me to basically a career of just blowing through real estate transactions. And, and people would call me even if they didn't like me, because I'm in a local community where people either like you, or they hate you. There's really not a lot of people that don't know you, when you're in this type of space, where you're advertising all the time and, and you're getting an attention. There's not a lot of people that really don't know you, everybody has kind of heard of you or something like that. And so even people that hated me, and pastors of churches that had real estate agents, like four or five real estate agents that go to the church, were calling me and I and I've, like, I've never spent a day at their church, I've never put $1 in their offering plate. And so that was simply because a lot of agents had gotten complacent in the fact that they were just kind of churning their clients. And I was like, Hey, I'm gonna go out there, I'm gonna start snatching these clients that really don't have an agent, right. And so that's what led to the by kind of the beginning of my career was just getting myself out there and doing nothing more than getting myself out there and having an honest transaction. And again, it's tough in a small town because for lack of a better term, you kind of piss about half the people off in the very beginning. Because if they're not using you, they know of you or they know your grandmother, they know your aunt, they know your uncle, whatever and they expect, like special treatment or something like that. And when you don't give it to him because you're protecting your clients interest. People get upset. So it's very, very challenging. Nothing more or less challenging than bigger markets. There's just different challenges, right? Yeah.

Rory Gill:

I mean, you bring us something I think that's really important to know right now. I mean, we're not in 2008 You know, we can go into the details of why things are very different from 2008. But we are you know, big market transition just to kind of keep it open minded. where agents who have become complacent when the market was relatively easy, at least on the listing side, have to now do a little bit more work and you know, show their professionalism. Do you have any advice for those agents who maybe come of age in this industry when complacency was the norm, or it was just easy. And you know, we a lot of bad habits can be fostered?

Unknown:

Well, you have to reflect and you have to

Casey Brown:

You know, I want to pivot that a little similar constantly reflect and reflection is done through various other things outside of your daily norm, like one of the biggest, I guess, things for now, I want to make sure that we differentiate here we're talking about the agency side of things, topic over to the investor side of it. You've had, you know, a we'll get into the investment side later on, you know, I want to bring anybody that's a real estate agent, or anybody that potentially had this, I want to kind of bring them behind so they understand, because my goal at the end of the day is to find investors. But my goal is also to educate people in the real wealth of experience in different markets and different estate space because, honestly, a lot of real estate agents don't know about real estate investing. So just just to put that out there to beginning to so people kind of know where we're going. The complacent part of the business is really what segments of the market different investment strategies. And I'm causes a lot of agents to fail, even successful agents that enjoy success. And then all of a sudden, they're like, oh, so your ability to transition through market changes, is what's going to differentiate basically, the winners from the losers, the men from the boys, the whatever, right? And so my not going to just come right out and ask, you know, what's the tip would be to always be listening. Just listen, when people talk, just listen, listen to what they're saying, listen to what their needs are, listen to what their wants are, and then figure out a way to meet that need or that want. And again, as this market transitions, people are going to future? What's the best, you know, asset class for the next realize, hey, man, two weeks ago, I could have really sold my house on my own right, I could have put a sign out there been 50 offers in 24 hours. Now, you have to start saying you have to start adjusting to the idea. Had to talk with some clients the couple years? But you know, how do you stay agile in your other day, I said, they were like, well, we can't we just have an open house. And we'll just collect offers after that. And we'll just sell it. And I said, because then we don't have to fool with packing our dogs up. And we're not fool with showings all the time. And I said no - I want you to thinking in the investment space, because I can see understand that while that may work, right now, we're in a transition period where the market is shifting. And we may not have that luxury right now, we may not have that luxury of picking through the best of the picking up the best of 15 somebody's thinking, you know, there was a formula that worked offers, right? We could potentially only have one. And I said, I want to make sure that you understand that we don't set your expectations up here. And we only meet here, because I want you to know that there's a now again, I let them know that I'm transitioning, I'm in this transition market along with great in 2010, you could buy distressed properties you could them. Right, I'm unaware of what could potentially be the result on the other side of this, Hey, we're putting your house on the market now. And to be quite honest, we missed it by about a month. Truthfully, if if all things are equal, we missed it buy hold. And if you did that strategy for a number of years, by about a month. So now I'm transitioning with you. And I want you to know how it used to be versus how it was, and know that it might fall somewhere in the middle. So the complacency part can be met by just simply keeping an open mind listening to your clients don't be so stubborn as to and don't let you'd be doing great. That same strategy may not work today. So your clients be stubborn, because they think they know. And if they are let them know, but just tell them say, hey, just so you know, if that doesn't work, this could be the alternative. how do you break out of your old habits, even the good ones that served you well in the past and just be more agile investor?

Unknown:

The worst thing - let's even go a level above that - and let's say let's look at it from a life perspective. Right? Basically, your formulas like you said, the perfect formula in 2010 was to do this, this, and this. The perfect formula in 2020 to 2022 was to do this, this, and this, right. Basically everything in between all the time in between those two perfect formulas was spent trying to figure out what the perfect formula was, as we all move as the market moves and as you chase to try to get these things to line up, then they do, right? So the investment strategies are always changing. And with that being said, may be another six to eight years before things just perfectly line up where we really see a direct shoot up north move of say multifamily, right? We're going to spend the next eight to 10 years chasing "why is multifamily not lining up like it did in 2020 2021 2022"? Right. So with that being said, you have to, again, the complacent part, you have to be out looking for different ways to invest. And when you can get the syndication world has done a rip in the syndication world. Notice, I don't say this real estate syndication, but the syndication world and some of these funds that have have kind of been bred out of this world out of this segment of the market, have made it where individuals and people who typically wouldn't have an investment opportunity at a direct to consumer type of an investment are now getting an opportunity. And I say that, for instance, I'm going to say the car wash market. Okay, I've got some friends of mine. That's where I've been the last couple of days was at a conference with a bunch of friends of mine, and we were all talking and the company has a car wash fund, right? Now, how many other times in this in this world have you had the potential opportunity to go to invest directly in car wash where hey, that guy puts the quarters in those quarters are filtered through a couple of different people and then I get the return, right? Most of the times when you start looking at that you are either the car wash owner or you're the car wash user you're not necessarily both or the car wash owner was a fund, right? So I say all of this to bring us back to some of these higher cash flow markets and thinking outside of the box is going to be the best return. Another example, I have another friend of mine who's in Southern California, he runs an ATM fund, right? And this ATM fund may not be for everybody. It's high cash flow, very little appreciate. And well actually no appreciation because the machines obviously depreciate in value, but you're buying into the cashflow, right? And so looking at these alternative investment types, and a lot of people just don't understand that stuff. They don't understand that, you know, what are you what is your goal and much like building a business, you have to have a vote, you have to set a goal and you have to focus on it. You can't take your eye off of it if your goal is appreciation, and hey, real estate is your deal, right? And a lot of people like well, real estate is so high right now everything so high. Why should I invest in real estate? Well, I'm gonna tell you, I say this all the time on my podcast, I'm gonna give both the example right, let's go back to 2006. Okay, there's like I said, there's never going to be another bad day. The days are all my god, we're all sleeping so well. Everybody's happy that everything's just flowing perfectly. 2007 comes it's your we're starting to feel a little top heavy than 2008. Right? And the market boom, just gets a just becomes completely bipolar overnight. Then everybody's walking around scratching their head wondering how they're gonna put meat and potatoes on the table. Okay. Now fast forward a little bit. Now we've been through that, right? There's never gonna be another bad day. 06-07. Everybody's like, I don't know whether I should buy it or whether I should buy it or whether I should buy it because it's so high, so high, so high. Fast forward now or fast forward to 2019 or 2020. Tell me right now, either one of you. A single piece of property that you would not take right now almost virtually sight unseen if somebody called him said, hey, I'll sell it to you for what its value as in 06.

Jason Muth:

Yeah

Unknown:

The highest the market ever was.

Jason Muth:

Maybe swampland in Arizona, I don't know?

Casey Brown:

But that's what I'm saying. That's the only fact like assets that were never worth anything to begin with. They're still not worth anything. But I'm going to show me any piece of property that that somebody says I'll sell it to you for exactly what it appraised for in 06, you're gonna snap it up. The highest market ever was right? We're here right now. 2022 highest market ever was. Are you going to be regretful in 2032 that you didn't invest in 2022? I mean, look at the trend. And I don't tell people to look at the 10 day trend, the one year trend the six month trend. Look at the 10 year trend. Things are done in 10 years, the cycles come in real estate basically say every 10 years, but it's average of 10

Jason Muth:

Don't you think that a lot of people that are you years. could be sitting on the side with cash waiting, which is great if you have the cash to wait and say I'm going to make a good investment in a couple months. You know if find the right deal. I'll wait on that. But I found a lot of people that are waiting are the ones that can't get in and they're hoping that things go down and that's their way of justifying why they're waiting and then they're gonna look back in a couple of years and say, whoa, I should have bought in.

Casey Brown:

Six months they've lost 15% of their cash. Their cash can buy 15% and less today than it could six months ago. So what is that going to be a year and a half? Probably not going to be quite as dramatic or drastic. But I've got a friend right now looking for a house. Man. That's so high. That's just too high. I can't give that for that house. That's yeah. Okay. That's fine. Somebody else will. Yep. And you're gonna keep looking. That's no problem. And the problem with that mentality, again, is either get in or don't there's no focus there. There's a focus on Well, what if the market regresses Okay, oh, six market was high as it's ever been. And so my son is saying, Well, what if the market goes backwards? Well, here we are 16 years later? What are you gonna do? You know, sit on it, if you're buying something that you're not going to have to sell? Then what's the what's the issue? You know, right, it's gonna cycle back up.

Rory Gill:

I mean, as an investor, as a homeowner, you probably shouldn't be purchasing real estate if your time horizon is six months.

Casey Brown:

That's exactly right. Because and that's what I tell you, I had this talk so many times, we're really close to Fort Campbell Military Institute installation right here. And I had this talk with young soldiers all the time. We're gonna be here for definitely gonna be here for years. So we're we want to by all right, man, let's sit down here. And let's look at a few things. Let's talk about this. For years, you're basically exposed completely exposed to the market, if you have a four year timeline. Now, I'm not saying it's not going to pay out because if someone had bought in 18, and this 20, or somebody bought in 17, and sold and 21, obviously that this whole scenario right here is not going to fit that bill. It's tough to get people to understand that coming out of that cycle. Hey, listen, that was an outlier. That was something that was a market that yes, it comes around, it'll come back around, but you're probably looking at a 12 or 14 year return on something like that. So what do they do? They buy anyway, right. And then the market's down, they come to sell, they have a payoff, they haven't paid their funding fee back, their payoff is about what they paid for the house. And now it's worth 15-20% less? Well, I told you, so. And, again, it's our business to sell people real estate, but it's also our business, and our fiduciary duty to educate. And the education part of that is what I take so diligently. And having people come in and saying, Hey, guys, make sure that you understand that this, this is what's gonna happen or this could happen. Now, again, you sometimes you're proved wrong. But

Jason Muth:

That's also the 3000 Capital side of it. Because, you know, that's basically what you're looking to do is find individual investors, and you're raising money from them for I'm guessing mostly commercial real estate opportunities that you

Casey Brown:

Yeah, time, it's all about if you are going to have. need that $100,000 or anticipate that you possibly could need that $100,000 In the next three years than that, then our investments are not, that's not we're not for you. And I don't mean that we don't want you I don't mean that we don't want to talk and see if there's some other connection we have with somebody else who might be able to help. But as far as coming into a five year real estate fund, that's not that that's not the move for you. If you've got $10 million in the bank, and you want to invest 100,000 of it into here, and it's really not gonna make any difference whether you get it back in five years or 10 years, or you just get the return, then yes, that's not to say that our investors, I've have 10 million dollars in the bank, I'm just saying that a lot of times you just you have to think a lot further than tomorrow, next month, next year, you have to be thinking, hey, I would rather have this cash flow. Maybe if you have $100,000. It's suitable for you to go buy a smaller single family rental house and have the cash flow yourself something that then you could unload that house if you needed to.

Jason Muth:

Before we talk about I want to have the podcast also - I do want to ask him questions about 3000 Capital because I think people that listen to podcasts like mine like ours, like yours, they are trying to say can I invest in this? Like, am I do I have the funds to do it? Do I have the timeframe to do it? Am I the type of person that a fund like 3000 Capital is looking for? Could you maybe chat a little bit about like, not your ideal investor, but the types of investors that might be ready for an investment with a fund like 3000 Capital.

Casey Brown:

So the first the first part of this is is we are we're specifically set up for accredited investors. Okay, we're running under a 506 C which means we can advertise everywhere, anywhere everywhere we can put a billboard up downtown Las Vegas we want to whatever we want to do if you're non accredited investor I have some friends that run 506 B's as well but they have to have a previous relationship with you in order to take your money if you're non accredited. So the first thing being said is as we are for accredited investor funds, which an accredited investor, I suggest you Google it it's basically means you pretty much means if you give us $50,000 to go buy real estate with you and we lost every dime of it like you would all of a sudden be living under a bridge in a box, because we lost your 50 grand, which is not going to happen either way, but I'm just saying it's for a little bit more of an affluent investor. Okay, so with that being said, our investors are pretty familiar with real estate investments, they're familiar with the cash flow that comes from them. They're also familiar with the time the terms that come along with the investment as far as that's concerned. And as far as the business structures as well, like we set it up an LLC. And then basically, in the limited partnership world, it's called a GP and an LP LLC world, it's called member and managing member. Same difference. So again, typically, we like people that that have some at least reasonable idea of business in general. A lot of doctors who are very process oriented folks, and engineers who are very process oriented people really have an have a fairly easy time grasping these concepts, not that those are again, not that we don't want somebody else who's in a different field investing, I'm just saying that process driven folks typically have a very easier to get these some of these ideas across to and they're like, Oh, hey, yeah, cool. And they're, you know, here's 50,000, they get their two or 300 a month return, then, of course, return to capital after certain amount of time.

Jason Muth:

So if somebody's gonna invest 50k, you'd use that number, you know, maybe the expectation that you set up over the five year period is basically two or 300 bucks a month of drawing, and then you get your capital back at the very end, or something.

Casey Brown:

And so specifically, 3000 Capital is set up, now I'm going to kind of maybe dive in just a hair under the comfort zone here, just so that that I can get some of these ideas across. So we are what's called a fund of funds. Okay. And what that means is, is we specialize in the investor relations business, okay. We specialize in the idea that an investor brings us money, we turn around and invest it in other folks funds, right? And I'm gonna get to all the questions and other bats in the air. But why do you do what I want? I know that's going but I'm getting there. Okay. So that's the first thing a lot of people run into is is why? So we manage investors. And I don't know. So it's much like, I know, people think why just give me money. Why do you need to manage me? Well, there you go. That's why - you have questions, right? So so we we're in the investment management space, basically. So I have an agreement with some operators that I have personally vetted, that I have personally put through my process that says, hey, these guys have been in the business for a long time, they've had multiple fullcycle asset closes, they're basically they're brilliant in their space, they're focused in their space, they're focused in the space that they know better than anybody else. Okay. And that being said, our fund actually, so So with, with each operator being focused in their space, it allows us to diversify our investors funds across asset classes, across geography and across operators. Otherwise, they take $100,000 and go to a single operator, now they're invested in a single operator in a single asset in a single location. And you see where that goes. So all that being said, are fund of fun. So I've gone to these operators after I put them through a laundry list of vetting process. Now I've got three operators that I specifically raise capital for. Now, I went to the operator and I said, Listen, if you don't have to take care of the investor relations, side of things, you just have to take care of one investor, okay? Which is, which is 3000 Capital? What kind of preferential treatment can you give me if I can bring you a lump sum of capital for your deal, right. Now and keeping it simple, or the other option to that is, is if an operator has a Class A and Class B share, right? So class A share, the operator says, Hey, you bring me a million bucks, or you invest a million bucks, you get this return? You get this back end split, we have these terms, you get to come to my Malibu beach house and party with me, right? Whatever. That's a Class A share, right? It's a million dollar minimum investment. Class B shares. It's a 50,000 minimum investment, right? And the Class B share gets a lower return lower split doesn't get to go to the party doesn't get to do blah, blah, blah, right? So now what we do is if you got a million bucks and you got 50,000, what we do is we go get 20 investors that all have a minimum of 50,000. They don't have the million yet but they have 50,000 or 100,000, or 200,000 to invest, we bundled those folks as money up, and we send it to the operator and buy, buy in at class A preferential treatment. And then of course, we get a 3000 Capital gets a shaving of the return in the middle. But it the difference is an 8% Return versus a 10, or I'm sorry, an 8% preferred return versus a 10%, preferred return. And we just keep say, hey, half a percent, the investor is getting nine and a half percent back. And again, these are just examples. The investors getting nine and a half percent back versus 8%. Hey, it makes perfect sense for everybody. It's win win win win win, because the operator doesn't have to manage the relationships, the investor gets a higher return, we get to live, and we get to keep everybody happy.

Jason Muth:

And you're going to Malibu.

Casey Brown:

That's right, the Malibu party. Yeah, I have yet to have an operator off for me that by the way, but

Jason Muth:

They're out there. If you're listening.

Casey Brown:

Hopefully they're listening, and they're gonna they're gonna do it now.

Jason Muth:

Yeah, Casey, that was a extraordinary explanation as to how this works. And you know, I know a lot of people that listen to this podcast and other real estate podcasts like yours. And the other great ones that are out there probably scratch their heads and saying, how is this all functioning? How do people have this money to do it? How do I get involved? And I think you've just explained it, right?

Casey Brown:

There's so many people with that 50,000 investment, they hear this concept. And initially, from a high level, they hear this concept, and they're like, I'll just take my 50,000 go straight to them. Why do I need a middleman. And the unfortunate part for 3000 Capital myself is we come off as we come off as that middleman, which I guess, to a certain degree we are. But the thing is, is that that investor could take that $50,000 and you've got one of I'm gonna just say 20,000 potential operators that you can invest in, how do you know that guy's not going to take that and your 50,000 and go buy that Malibu beach house, right. So we've, again, we've been through all of those people, and said, Hey, these are, this is the cream that's rose to the top. As far as operators go, this is the safest place for your money. Again, the guy that wants to make a quick turn and wants to be in a high risk asset with a high risk, location or whatever, we're not for you. We have some one off syndication opportunities every once in a while. We're not, that's not our that's not where we're at, we're for the person that wants diversification, and wants some security, some safety, but yet still make an 8% Return preferred return on their money, plus the split.

Jason Muth:

Right? Again, a great explanation of of all of that, and how the system works with, you know, syndicated real estate investments and how you're a fund to funds managing others, and you act as that voice and pool the money. And, you know, it's worth taking a little cut of that, because that's the service that you provide. That's the value add, it's just like, you know, we're talking about land investment earlier. And some of the guests we've had on the same podcast as yours. They're adding value by you know, they're getting wells dug on their land, their getting them zoned correctly, they're worth a lot more money. It's not just a piece of land that has trees on it.

Casey Brown:

And while this syndication business, these podcasts and stuff can make us as syndicators feel like have the listeners and so on feel like they're we're all buddies, we're all friends. The thing is, is that a lot of times when you pick up the phone to call one of these operators, you know they've got a pretty distanced they've got a pretty distanced path between them and you. That makes sense. Yeah.

Jason Muth:

Let's talk about the podcast because Cashflow Pro is another excellent real estate podcast, you're doing it daily is what you told us earlier. I don't know how you do that. It's a lot. This is a lot like we put ours out weekly. And I really appreciate your being on it and all of our guests and we also work with producers just like you do, but it's a commitment, right? I mean, you guys committed to this thing. You're how many episodes deep are you?

Casey Brown:

Well, right now, we started out slow. But now we're we're like our 65th or 70th day in a row deep in our daily podcast. So we just went daily not too long ago because we were kind of hesitant. And I was hesitant about the commitment, but I thought you know, just no let's do it. Let's go let's let's get our voice out there. Let's be heard. Let's start to try to make a difference. One of the things which you've got three, basically middle aged white men setting here one of the things one of our passions, one of my passions, I shouldn't say ours, some people agree some people don't agree. But one of my passions is, is I've got two of my five kids are my daughters, and one of my passions is making business more receptive to to women, giving them the opportunity to build a business as well. So, so we do have some causes, we do have some things that were that we're after as well.

Jason Muth:

Yes, that's very near and dear to our hearts as well with our daughter. You know, and I think there's a lot of education that comes from podcasts like Cashflow Pro and ours that you don't learn in school, like even in high school and college, you know, we talk to a lot of young investors, and they came out with four year degrees, and then they find the real estate podcasting world and they are off to the races, you know, because of stories like the ones that you you and your guests tell and stories like this one, that their professors didn't tell them because either they didn't know, it wasn't part of the curriculum. But these are the real life stories that allow people to get wealthy relatively quickly.

Casey Brown:

And I'll tell you, financial literacy if I had a second cause financial literacy. And we were at a conference this past week where Shaquille O'Neal spoke, and actually, my son got a chance to meet him, and so on. And then he says, he basically preaches about financial literacy. And it's one of those deals where you have to educate these kids are being educated on concepts that the teachers understand and things that they feel like they need to be taught, but they're not being taught how to balance a damn checkbook.

Jason Muth:

Yeah. I saw photo on Instagram also was Shaq and your son on stage, right?

Casey Brown:

Yeah, yeah, Shaq actually interviewed my son did a couple interview questions about it with my son. It was unbelievable, really.

Jason Muth:

Did you proud as as did he do you proud.

Casey Brown:

He got up there and smiled and talk just like he was sitting on the couch with the house and I have just shot I was very, very tickled and, and you know, Shaq does so many things for so many people and so much stuff that that a lot of people just don't even realize.

Jason Muth:

A lot of those folks, a lot of the athletes, like they've done great with, you know, funding schools, whether they're here in the United States or outside of the US because they believe in those causes. Eventually, you have so much money that what are you going to do you have to give back, at least the good ones do. Really quickly about the podcast, if there's one thing that that you wanted to tell people to tune in which we will put the link in the show notes and make sure that everyone could find their way and we'll you know, make sure that we're sharing your episodes. What's one thing that people can get if they're gonna go over and subscribe to Cashflow Pro,

Casey Brown:

You're gonna get an education, okay, you're gonna get an education and not only are you going to get an education, you're gonna get an education from remember that those people the cream at the top, I told you, you're gonna get an education from them. And that's what matters. And when you go to cash flow Pro, it's www.cashflow.pro. You're gonna see all of these folks on here. I mean, much like like Rory and Jason here, I mean, these you're gonna meet the people who are in the business who know what they're talking about and know what they're doing.

Jason Muth:

Yeah. I don't know about you as a host. But you know, I'm always astounded at the amount of people who want to just they open up on podcasts like this, they'll open, they'll open their financial ledger, I don't think it's people bragging, I think it's people that because again, I've said this many times, this is not a zero sum game. Like, I don't have to lose for you to win. Yeah, everybody could win.

Casey Brown:

Everybody wins! That's what I said about our situation, Win Win, win, win win. It's not. That's the small mentality is is that just because you're letting somebody else win means you're losing. And these people are doing that while spending endless amounts of time on social media apps, like just scrolling. They're like I'm not giving that guy profit. I'm not doing it. You know, while while eating while giving your information and your time and everything else away.

Jason Muth:

Yeah, well, you know, it's a good service you're doing especially daily - my God, but all the power to you if you have the time for it. That's amazing.

Casey Brown:

We're definitely trying it is it's encumbering. But we do four episodes Tuesday, four episodes Thursday, because every once in a while like last week, I had to reschedule all my Thursdays we're rolling, man. It's great. We love it love meeting people of talking to people of hearing stories and getting basically down into the trenches with them and seeing what they're doing.

Jason Muth:

Yeah. And if you're still listening to this podcast, now you have two people you can call if you want to appear on both ours and on Casey's because we'll get well if you got a good story, we'll take you.

Casey Brown:

That's right. We'll see. We all gotta grow right.

Jason Muth:

Yeah. Rory, do you want to get into the final three questions? I know Casey, we actually didn't prep you with these. So we're gonna throw them throw them your way. We ask the same questions of every guest and they're really Easy. So, you know, just you could give us answers off the top.

Casey Brown:

It's good. I'm alright.

Rory Gill:

So here's your pop quiz. If you only if you had to give a presentation for 30 minutes on something with absolutely no preparation, what would the topic be?

Casey Brown:

Absolutely no preparation would be real estate marketing. I could give a presentation on real estate marketing and tell you how to gather your local audience, how to get involved in your community, how to lead with value so that those people could follow you now, that's the business side. The life side, you know, how to be successful in merging business and family together. That can all go together.

Rory Gill:

Those are two good answers to the surprise question.

Jason Muth:

So that second question is an amazing question. That's why a lot of people are doing they're doing now they're learning from podcasts are trying to figure out how to build financial wealth and stability and independence. So they can be better people for their families. Really, that's the other part of that sentence. So that's great.

Rory Gill:

Now, I think when you're doing more unconventional work, that's not just collecting a paycheck and a W two, you're doing it for a reason. You're doing it because you you see the bigger picture. Otherwise, I have no other explanation as to why you leave W-2 paying work and you know, take on these risks.

Casey Brown:

That's right.

Rory Gill:

The other question we have for you, is what's something that happened early on in your life that affects the way you live and do business today?

Casey Brown:

Failure, man, I used to get so so caught up in failure, like I would cast my line out in the pond. I wouldn't get any fish, right. And I just kept thinking man, and it just kept that resided coming back in my head. All right, well, if you're not out there fishing, you're definitely not gonna catch fish. If you're not reeling in and recasting and reeling in and recasting you're not going to catch fish. And when I started implementing that into my daily life of business, hey, if you're not up and you're not out there, and you're not at least doing something, you're definitely not going to get anywhere.

Jason Muth:

Yes, life lessons from a boat in a lake on a river in an ocean.

Casey Brown:

There you go. Yeah, love it.

Rory Gill:

I mean, does it to beat the analogy, because spend, you know, all your time, you know, perfecting and tweaking the fishing pole, and then just casting it out, you know, losing all that time just getting out there and just giving it a try. All right. And finally, just what's something that you're watching listening to or reading these days,

Casey Brown:

Man, I'll be real honest. So Bill O'Reilly just got done with another book in his Killing series. And that's probably more from an enjoyment perspective than a business perspective. But I live every I love to read. And so I just recently read that book. And I just feel like that kind of stuff. It exercises your mind. It may not be the greatest book or story or but just reading exercises your mind and it gets you in these ideas of how all of this stuff fits together in this world.

Jason Muth:

We can't all just read business books.

Casey Brown:

That's right. if you do, you'll just burn yourself out.

Jason Muth:

Casey, we really appreciate the time you spent with us. today. We're going to link everything up in the show notes here. So Cashflow Pro is the podcast that I encourage everyone to go listen to right now after you hit pause on this episode, and then 3000 Capital, we'll also link that up in the show notes. 3000capital.com is the fund of funds. But if people want to reach out to you, Casey, let's send them over to the podcast, right?

Casey Brown:

Yep. www.cashflow.pro no.com - dot-pro. All right flow dot Pro,

Jason Muth:

You'll get a couple links out of this podcast recording and then we'll have that appear in our podcast roll as well. So it'll be more and more links and we'll send it back to your site. So Casey, thank you so much for being on The Real Estate Law Podcast. This has been a super interesting conversation. I really appreciate you're going in depth as to how 3000 Capital works. I think that was just a fundamentally excellent discussion that people are gonna want to rewind and share with others. And just great insight to me, you've been in the biz for a long time and your fellow podcaster. So you know, we're really grateful that you spent some time with us today. Awesome. Rory, where can people find you?

Rory Gill:

You can come find me and my brokerage NextHome Titletown - nexthometitletown.com Or my law practice UrbanVillage Legal - urbanvillagelegal.com.

Jason Muth:

And you could reach out to me if you need to jason@nexthometitletown.com you can give us some tips as to how we could decorate this background. So it looks more like Casey's because you know we are a clean slate here. And if you'd like to review us or give us a comment, we read all the comments. We love reviews. We hope they're five stars and we really appreciate your listening to the episode so. On behalf of Casey and Rory, thank you so much for listening to The Real Estate Law Podcast. We will see you next time.

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