April 18, 2024 • 40 mins
In this inspiring episode of Paradyme Shift, host Ryan Garland sits down with Eric Adelia, who transformed a $20,000 initial investment into a robust $200 million annual real estate sales. From his challenging early life in Los Angeles to becoming a real estate powerhouse, Eric’s journey is a testament to the power of perseverance and strategic investment. The conversation covers his pioneering approaches to property development, including his latest ventures in Lake Havasu City, which are redefining luxury living and attracting significant attention from high-net-worth individuals and media alike.
Ryan and Eric provide detailed insight into their distinctive real estate projects, such as upscale RV hookups and groundbreaking drive-thru units. These ventures are more than structures; they are community-centric experiences that blend top-notch amenities with practical living solutions, setting new benchmarks in the real estate industry. They are a testament to the team’s ingenuity and ability to cater to the evolving needs of today's investors and residents.
The episode wraps up with a forward-looking discussion on the 2024 real estate landscape, where industry leaders unpack the complexities and opportunities in the market. They offer insights into sustainable investing, the impact of technology on real estate, and strategies to navigate the current economic climate. This is a must-listen for anyone interested in understanding the future of real estate investment and getting ahead with actionable, strategic knowledge.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hey everybody, ryan Garland here, founder and
chairman of Paradigm.
Thank you very much forwatching.
We are on the Paradigm Shiftpodcast.
I am honored today to introduceyou to Eric.
He is one of my best friends.
He's also my broker and aninvestor who's parked $3 million
with us in our Paradigm storageand even more into maybe some
more projects.
So the idea behind this todayis really just to kind of
understand who he is and kind ofhis level of success and how we
(00:23):
are just leveling up ourbusiness by making sure we're
surrounding ourselves with topproducers and players, and I
think a lot of people are justworried about the market.
So I want you to understandkind of how we're navigating
these waters, if you will, andironically we're in Lake Havasus
around the lake, so that'salways fun.
But, eric, thank you forjoining us.
Man, please share a little bitwith the audience about your
background and just go for it,buddy yeah, ryan, thanks for
(00:46):
having me on the don't be toohumble.
I need you to be tell the worldwho you really are right on.
Speaker 2 (00:51):
Yeah, no, thanks for having me on the podcast, man,
I've been seeing it and, uh,some, you've got some cool
people on, so I'm honored to uhto be on the show and you know,
like Ryan said, um, you know Ihave an interesting background.
I actually came from a reallytough situation as a kid, you
know, as a five-year-old,six-year-old, at one point, not
even knowing where the next mealwas going to come from, came
(01:17):
from LA yeah, southern Caldivorce, and I got to make a
choice, you know come to come tolike Havasu city with mom, you
know, a destination that haspredominantly senior citizens at
the time a retirement community, you know or stay with my dad,
who was a little bit more of apassive man, you know pretty
much, was a caretaker for hismom.
You know his entire life.
Mom was foreign, hardly spokeany English, you know, but she
(01:41):
was a little bit of a strongerpresence.
So I decided, you know, let'smove with mom.
I think she'll be a betterparent for me.
Good call.
And you know, unfortunately,though, three years later she
decides she's going to moveagain.
Bad call, bad call.
So here I am, 16 years old, inlike Havasu City, arizona, again
predominantly a retirement townand I got to, you know, at this
(02:05):
point, make a decision for meto have that peace that I never
had, you know, 16 years of mylife.
So I find a job Barley BrothersBrewery busing tables while I'm
still in high school and I wasprobably working 60 hours a week
, 70 hours a week as a16-year-old.
Yeah, and you know, it wasinteresting because there was
(02:28):
this strip of businesses thatwas in this area where the
restaurant was.
And his name is Steve, he was areal estate agent and he sees
me working all the time and hecomes over and he's like dude,
like what are you doing with allthe money that you're making?
He's asking a 16, 17 year oldkid that.
And I'm like dude, I actuallylive on my own.
Everything I'm making I'mputting in a savings account to
(02:50):
pay the bills.
I was renting a duplex withlike five pieces of furniture in
it.
I was on conservation mode save, save, save, survive.
And then he's like well, haveyou ever thought about investing
in real estate?
And I'm like real estate, noone in my family has ever even
owned a home, let alone investin real estate.
And he's like man, you reallyought to think about doing that
(03:12):
because I see you working hereLike you've got to be saving
money.
I want to help you learn tomake that money work for you.
And I'm like man that soundskind of scary, like is the
investment guaranteed?
And he's like no, of course not.
He's like but I have a feelingthis is going to be good for you
.
You just need to try it.
I said, okay, well, I've gottwenty thousand dollars to my
(03:33):
name.
I've saved up twenty thousandgood for you know, 17, maybe 18
now at this point and I said I'mall in, let's do it.
Twenty thousand dollarsinvested.
Six months later that $20,000turned into $22,000.
And then from there I wasabsolutely hooked.
I ended up doing six more spechomes with them over the course
of the next couple of years,meanwhile still working at the
(03:55):
restaurant, hosting, being aserver, being a bartender, and I
was just infatuated with theidea of investing in real estate
.
So, of course, a couple yearslater I decided to get licensed,
explore the sales part of realestate and you know, from then
it just kind of triggered like,oh my god, this is an industry
(04:16):
where I can literally berewarded based on my actual
performance.
There's no ceiling.
First year in real estate.
I was the rookie of the yearfor the entire southwestern
region of the United States.
Two years later started a teamYear number three, number one
real estate group in Lake HavasuCity and haven't really looked
(04:36):
back since Now investing in landdevelopments, spec homes and,
of course, paradigm storage.
Speaker 1 (04:42):
Yeah, so tell us a little bit about your.
So of all, as my best friend, Idid not know that whole story.
I knew about your mom and yourdad and when you came, but I did
not know you started investingthat early, yeah, so cheers to
your success so that leads intothis next part for sure how big
is your team now and what's yourvolume for the last couple of
years and what track are you onas of today?
Speaker 2 (05:02):
Yeah, good question.
We're actually only a team of14 agents operating in three
cities and this year we'llprobably close around 250
million in sales.
The past three years we'veclosed at least 200 million in
sales.
Currently, we're the number onereal estate group in Lake
Havasu City.
We're the number one realestate group in Mojave County.
(05:23):
We're the number two realestate group in Mojave County.
We're the number two realestate group in the state of
Arizona and we're currentlyranked 14th in the country for
overall sales Got to give youthat one for sure.
Speaker 1 (05:34):
That's awesome.
So to kind of go into theparadigm side, obviously you
have a track record.
You're working with otherinvestors, you're dealing with
land development.
You're seeing a lot of otherpeople out there that are making
it happen as well, that have alonger track record than me 30
years, 40 years of experience.
What is it that makes Paradigmdifferent?
Speaker 2 (05:52):
Well, it's such a question.
It's a question that, for me,is so incredibly easy to answer,
because being around likeHavasu for so long, seeing
development before development,was actually a thing.
Out here, seeing builders anddevelopers do the absolute bare
minimum to make the most amountpossible, you're the complete
(06:18):
opposite.
So, for example, paradigmstorage to include amenities
like full insulation, climatecontrol in every unit when I may
be fighting you on certainthings to help you maximize your
profit, you're like Eric.
No, we're going to includeeverything RV hookups, extra
facades to take the aestheticsof the overall building to the
next level, oversized concretedrives, when you can actually
take the drives between thebuildings and make them bigger
(06:40):
to make more money.
You're choosing the consumerover your dollars.
Speaker 1 (06:46):
You know that's, and that means a lot to me, because
even today, when we're on site,you know the idea is to make
sure that you're delivering aproduct that people can not only
buy.
Speaker 2 (06:53):
Yeah.
Speaker 1 (06:54):
They're looking for appreciation, they're looking
for tax strategy, they'rewanting to park really expensive
toys in this stuff, but they'realso looking at I'm also
looking at from a resale side,from a true real estate
investment, not only for myself,but obviously for whoever buys
these units for sure so I reallythat means a lot and I mean,
look at how much we've been ableto accomplish in such a short
period of time.
But we're definitely, my opinion, we're setting the tone for,
(07:15):
kind of the way to do it.
Nobody else was providing airconditioning units like we are
in every one of their units.
Speaker 2 (07:20):
That's huge and think about it.
This, when all Havasu is everknown is your typical steel box.
When we're talking aboutcorrugated metal on each side,
they have to get out in 110degree temperature when they're
out here and manually crank up adoor and there's not even the
slightest possibility to addclimate control, and you're
completely disrupting theindustry and adding all of these
(07:40):
things in the units they'repractically selling themselves.
Speaker 1 (07:43):
Yeah, and on top of it, this is one of the largest
projects in the city as far asjust paradigm storage alone, not
including all of our portfolio.
Speaker 2 (07:50):
We were out there today, you and I and the team,
building C, building D, 66,000square feet.
Now you're a typical developerin Lake Havasu and I've been a
part of a lot of developments.
Sell out phase one.
Start part of a lot ofdevelopments.
Sell out phase one.
Start thinking about maybestarting phase two, starting to
build up phase two.
Then maybe in a couple yearswe'll get to phase three.
(08:12):
You are full bore, full tilt,like hey, ryan, maybe you want
to slow down.
Let me catch up on sales.
No, we're charging.
You're building 66,000 squarefeet at a time which is allowing
us to give all of our buyersmore options, and you're
continuing to add more and moreamenities.
I didn't even know you wereadding RV hookups in these units
.
Speaker 1 (08:31):
Yeah, you called me.
Are you really putting RV?
Yes, we are.
Speaker 2 (08:35):
I'm walking clients through the development and
they're like, are RV hookupsincluded?
I said, well, you actually geta full electrical panel that's
here and you could eventuallytee off and add the RV hookups.
And the client's like, well, Isee an RV hookup back there.
I'm like, what?
Like it was just so mindblowing to me that literally
these units are beyond fullyloaded, to the point where
(08:57):
they're not even as upgradedgarages that people have in
their own homes.
You know, so it's prettyspecial.
Speaker 1 (09:02):
You know, what's cool is that I think I kind of made
the decision on the fly, if Irecall.
But building c, charlie, youknow we have 14 by 50s and they
back up to each other as far asthe units right for both
driveways.
When I was looking at buildingd, all of those are drive-thru
set up right now and I rememberlooking at all the guys going.
You know we have what you'reselling units, typically kind of
two at a time yeah.
Very rarely you're doing one ata time.
Speaker 2 (09:23):
We took a call before we got on the podcast and
they're looking for two.
Speaker 1 (09:26):
So at the end of the day, I'm like well, why don't we
just provide drive-thrus?
Because at the end of the day,I think that people would want
that more and you were tellingme originally, before we even
started this, that those werethe fastest selling product as
far as in the storage space,anything.
So when we're looking at thebuilding, as far as building D
Delta, we're going, hey, whydon't we just leave?
All of these are drive-thrus,and if we do have buyers that
(09:47):
just want a 14 by 50, then we'lljust put that center piece up
and let them.
You know, two people will buy.
But the best part is is by sixbolts you can pull it right back
off.
So let's say somebody were tobuy a 14 by 50 and then the
other one behind comes up forsale or works a deal, they can
get a drive-thru later and justunbolt that by six bolts.
So I think that's pretty cool,but the drive-thrus, at the end
(10:10):
of the day, what we're doing iswe're providing diversification
For sure.
Do you want a 14 by 50?
Do you want a drive-thru?
You kind of have a different.
You have the ability to chooseand what I'm trying to do is
that's ready to go when you cansay hey, within this month or
next month we have more unitsavailable for you.
So when people are looking fora unit, you can say hey, within
the next 30, 60, we have a unitfor you and check it out.
Speaker 2 (10:35):
These are also the people that are in that product
too.
The project was thought out sowell that we're attracting
national attention.
I mean, we literally havebuyers coming from Indiana on a
1031 exchange.
We had an acquisition of sevenunits in one purchase contract.
This is exactly what I'mlooking for.
I want to get out of theresidential rental game and I
want to get into mailbox money.
Speaker 1 (10:54):
So let's go into that , because that's actually a big
part of where I wanted to takeit is the amount of people that
are selling the residentialhomes.
When the pandemic hit, theyweren't collecting rent as a
landlord.
So a lot of people especiallyif you're a boomer and you're
looking to retire you want cashflow and you like the rental
income and owning real estate.
What I'm seeing here, even frompeople selling Airbnbs, what
(11:15):
I'm seeing is people are sellingand 1031, exchanging out of
their rental homes and justbuying these Less maintenance,
less headache, better qualitytenant opens up the doors for
more tenants and you haveconsistent cash flow with no
maintenance.
Speaker 2 (11:30):
I mean coming from the biggest broker in Arizona as
far as real estate, residentialsales.
A lot of my clients who havebeen investors in residential
homes they call at 9.30 becausetheir toilet doesn't flush or
there was a bad windstorm inHavasu and seven shingles got
blown off.
We're talking about theultimate desire for an investor
(11:50):
mailbox money that comes everysingle month and it's we're
signing a lease today.
I'll talk to you in 12 monthswhen your lease is over.
Speaker 1 (11:57):
It really doesn't get better than that, yeah, and if
and if, if you decide not totake it again, you have another
you know tenant right behind it.
I mean one of the not to takeit again.
You have another tenant rightbehind it.
I mean one of the who was it?
One of the other, and I don'twant to list them, but they're
talking about anywhere between atwo to a four-year waiting list
at some of these locationsAbsolutely.
I mean that shares.
That's why we're looking atthat data as forward demand.
Speaker 2 (12:16):
There's such a need for end user storage in Lake
Havasu that, for example, inphase one we had a small group
of 1031 exchange investorsbecause there were so many end
users that wanted to buy too.
But for those 1031, and Ireally like that because it
provides an opportunity it's nota storage development where
just investors are purchasingand it's completely flooding the
(12:38):
rental market.
It's a good balance.
So those handful of investorbuyers in phase one, they put
their units up for rent and theyliterally got rented the next
day.
I mean, we're talking aboutLake H, Los Angeles, two of the
biggest metropolitan cities inthe country.
(13:06):
Our lake is only allowed tofluctuate plus or minus five
feet a year.
Now that makes us one of thebiggest destinations for water
recreation in the country.
So what that means forinvestors is when you have a
lake that's as secure as LakeHavasu, people are going to come
(13:28):
and rent those units becausethere's nowhere else to go.
So, long story short, thosepeople that put their units up
for rent, they got occupied thenext day.
Speaker 1 (13:33):
Well, we had a guy that bought in phase one and
turned around and sold it rightaway and made like $15,000, I
think it was.
Speaker 2 (13:38):
Yep, we had one of those, for sure.
Speaker 1 (13:40):
I actually looked at it and said you know what?
I think we're going to changeour HOAs where if you buy and
you turn around to flip one ofour units, we have the right to
buy it back first.
Speaker 2 (13:48):
Don't worry, though, we're getting top dollar Ryan.
Speaker 1 (13:51):
Yeah, I know the other side of it too, and this
is the one part where I thinkfor our audience sometimes I
hate to brag and I don't want tobe unhumble, but I do want to
talk about this becauseultimately, Lake Havasu is kind
of like who's got the biggerboat?
Because it's all SouthernCalifornia money.
Speaker 2 (14:08):
For sure.
Speaker 1 (14:08):
It's just that second home destination and everybody
comes out here because themajority of the people would
come out for the recreationalside but grew up coming out here
.
And those people come out andthey love the desert lifestyle.
They love all the things youcould do during the winter,
during the summer it'syear-round activities here, but
it's also very family-oriented.
So one of the things that I'vereally realized recently is the
(14:28):
nature of the buyers that are inour project compared to anybody
else's project, meaning whosome of these people are the
business owners out of LA, thebusiness owners here in town.
You know my opinion, these areall the guys that are
multimillionaires.
Even we have a billionaire nowin one of our phases.
So for me to kind of to look atwho's in our phase, it's the
who's who, but it's also becauseour product is superior
(14:51):
compared to our I would saycompetitors.
If we really have them out here,I don't think.
I think we're kind of on adifferent level, which is kind
of sometimes some people willlook at them like well, you're
building something so uniqueit's, you're at a much higher
level, so you're kind of settinga new record or it's more risky
.
I don't see it that way.
I think what happened is is webuilt something on the side of
(15:15):
city where all the development'sgoing to have to go, so I think
we were very forward thinkingon that.
725,000 square feet of retail,you know, you got super Walmart
or Walmart super center thereand then they're just announcing
all that development that'sgoing over there by medical
medical Was it 50,000 squarefoot.
I think it announcing all thatdevelopment that's going over
there by the law.
Medical, medical, what is it?
50,000 square foot?
I think it's urgent care that'sgoing in.
They just we got some intelthat there may be an 80 foot.
(15:37):
Of course, we're always withthe barn caves, which we'll talk
about in a second.
You know we have a heightrestriction on that one, so they
were just talking about howthey have an 80 foot tall.
I think it's a five-storyproduct of a hotel that is
looking to be built over there.
You have North Point.
Speaker 2 (15:56):
Let's talk a little bit about that north side so I
can kind of circle up on thenature of this location.
This project, again thought outso perfectly to the point where
it had been over a decadebefore anything storage-related
made the front page of thenewsreel.
We were just on the front pageof the newspaper literally last
week.
It got an ungodly amount ofattention online.
I mean, this literally is inthe eyes of our city council,
(16:19):
our vice mayor.
It's in such a positive lightbecause we're not the slumlords
of development for storage Againyou've talked about it which is
why you've attracted theclientele that we have and I
think that, to allude to whatyou were saying about some of
our customers, you couldliterally park some lawn chairs
in Paradigm Storage and probablywitness $500 million in boats
(16:40):
drive by, going in and out oftheir units.
Speaker 1 (16:43):
Yeah, we're only halfway built.
Speaker 2 (16:44):
But in regards to the strategy of picking this
location, which Ryan and histeam did such a good job at,
it's located on the lake side ofthe highway, so literally from
Paradigm Storage, you're maybeseven minutes away from the
launch ramp, so to be able tocome into Lake Havasu, hook up
to your storage unit and beseven minutes to the water.
(17:05):
People are really mesmerized bythe location too and, like you
said, retail, you know, walmart,medical, all right there.
Speaker 1 (17:13):
Airport five minutes away yeah, I mean, the airport
is, you know, on the barn cavesproject.
I'm literally having to go tothe FAA to see if we can do
solar because we're so close tothe airport, right, you know.
So that's they'll give you anidea of our location in my
opinion is absolutely key, infact.
In my opinion is absolutely key.
In fact, my videographer, whichis here now, was telling me
about a conversation that he hadwith a guy who was building out
(17:34):
here that asked how the heckdid you guys get that land?
Cause, in essence, we don'tpretty much own that half that
street.
So, with with our 14 acres plusthat 18 acres, I mean we own
more acreage, I think, on thaton that street than anybody else
.
Speaker 2 (17:45):
We'll talk about that 18 acres maybe in a second.
But I mean, I was begging Ryanto take these 18 acres down
because I'm telling you land inLake Havasu City is in the
fourth quarter.
We maybe have fourth quarterseven minutes to go as far as
the land clock for Lake Havasu.
There's so much land that hasbecome acquired from developers
(18:06):
now over the last decade as LakeHavasu has exploded, to take
that land down was one of yourbest moves that I think you know
.
That's five to six years ofdevelopment.
When if you were to say, hey,eric, like let's go get another
10 acre parcel, I can't provideit because it's gone, it doesn't
exist.
So for people that are buyinginto a project like this buying
a unit, buying two, buying seventhink about the land
(18:31):
availability and lack thereof inLake Havasu, because we're
hardly going to see anythingelse get built out for the
entirety of Lake Havasu unlessyou're purchasing, attempting to
purchase, state land, and foranyone who's a developer that's
listening, you know how longthat takes.
Speaker 1 (18:43):
But I know Bureau of Land Management is talking about
selling some more land to thecity of Lake Havasu as well.
Speaker 2 (18:48):
We need it.
Speaker 1 (18:49):
I know Absolutely.
The good thing is water's there, everything seems to fit in.
I think I was telling you ADOT,which is the state funded for
streets and so forth, out herein Arizona.
They just asked us to do atraffic study right there, which
we're not even close to thecorner, but right there on the
corner of the 95 and retailcenter which obviously we share
(19:12):
a property line with Home Depot.
They've already done all thoseimprovements.
So we're going oh shoot, arethey asking us to do
improvements?
That could cost us a lot ofmoney?
But what's happening is.
To me, the takeaway is which,by the way, we don't have to
worry about it.
They're already signed off onit.
But my concern was originallyis do I have to do street
improvements?
Come to find out we don't.
But what that tells me is theamount of traffic that's coming
(19:33):
in here.
They're saying, hey, there's somuch demand and there's so much
growth there.
We need to do an updatedtraffic study because we need to
see how many people are comingthrough the 95.
Speaker 2 (19:43):
Absolutely.
You touched on it too.
North Point, viewpoint, theRefuge these are three big
residential developments withinclose proximity to Paradigm
Storage.
So again, another good reasonwhy we developed here as much as
you would think.
A 2,500 square foot house witha 25 by 80 RV garage is enough
for your Havasu homebuyer.
They want more so to be able tohave your home and have your
(20:06):
storage units seven minutes away.
You know, talking about thatexpansion, these developments, I
mean you can drive by if you'reever in, like Havasu, north
side of town, viewpoint, northPoint they're building like
crazy and people just can't getenough garage and was there
1,800 lots.
Speaker 1 (20:22):
Is it North Point?
That's it.
Which one is it?
Speaker 2 (20:24):
Viewpoint Viewpoint.
But North Point has beenexpanding since, I think, 2012.
Speaker 1 (20:29):
Well, you just drove me down.
I couldn't believe the brandnew homes.
Yeah, they're stunning too.
It makes me feel like home incalifornia, so I think I could
see how they're catering to thattoo.
Speaker 2 (20:37):
we literally this project is so fascinating to
your typical buyer that we areto anyone that's calling in or
anyone that sees us.
They call us and they're likeso what, what is this?
How does this work?
Do you buy these?
Do you rent these?
And I'm like actually, you getdated property.
You can buy, sell leasewhenever you want.
It's an actual real estatecondo.
(20:58):
I mean, we just got on a call,literally before we started the
podcast, from people that wantto buy too, and they said they
literally don't even know whatthey're buying them for, because
we're creating the hype.
Yeah.
Speaker 1 (21:09):
All right.
So for those of you that arestill watching, this is where
it's going to get good.
So let's talk about the barncaves yeah, because that's kind
of our baby right now.
So again, 225,000 square feetis the paradigm storage we've
been talking about.
Right next to that is 18 acresthat we purchased.
That 18 acres we're trying tosliver out 150 units to 160
units of basically the paradigmproduct layout in regards to the
(21:33):
storage.
But we're going to buildresidential above it and the
idea is to do, you know, maybe abedroom bathroom downstairs,
more like a 30 by 60 or 30 by 70, with a bedroom bathroom
downstairs.
We want to do another bedroombathroom upstairs with another
powder room.
Second floor.
Second floor would have akitchen and then the third floor
would be an entire master suite, so it'd be a three bedroom,
(21:54):
three and a half bath.
That's the largest unit.
We're going to have threedifferent floor plans.
It can be one, one and a half,two, two and a half as well, but
the idea is the largest floorplan under 700 000 right is
going to be a three, a tallskinny with an elevator, by the
way, with a man cave down uh,you know, on your garage so and
it'll be a drive-through.
You and I were talking aboutthat and not only that, which I
(22:15):
think a lot of people are reallyexcited to hear that we're
taking the community center thatyou would build, like any other
apartment project orresidential build, to rent
community, and we're going tobuild a 20,000 square foot
public gym that everybody elsecan have access to as far as our
owners for free, because nowyou own in there and now they
(22:35):
have access to a customized gym,and I've been coming out here
for 35 years.
Not trying to say anything badhere, but I don't think the gyms
, I think the gyms are reallyfar.
Speaker 2 (22:46):
The gyms are terrible .
Speaker 1 (22:48):
I was not going to say it that way.
But yes, the gyms aredefinitely terrible.
I mean I, it's hard for me toeven get a good workout in, you
know.
Speaker 2 (22:53):
I come out here and I get.
Speaker 1 (22:54):
I'm looking forward to going home just so I can kind
of get back into my own routine.
Yeah, if you could build, youknow, and I know, be able to
provide a community center thathas, you know, like a uh, a
little area for like a smallrestaurant and like a smoothie
bar and you can pop up yourlaptop and we're very much like
(23:16):
a lifetime fitness field, butnot as big and then obviously
provide a much better productfor people to go and kind of
hang out and uh, and much largerand more usable, newer
equipment, just something moremodern.
Speaker 2 (23:36):
Cause it's just not out here.
No, and this was exactly theproject that caught the news,
the News Herald.
So for anyone that's listening,please go check out the story
News Herald.
Town Home, barn Caves.
They did a full write-up onthis project.
I'm telling you I have nevergotten so many calls on one
specific thing since I've beenselling real estate for the last
nine years in Lake Havasu, andwe talked a little bit about
what was the drawn paradigm.
There wasn't anything that youleft behind.
(23:57):
As far as upgrades, listen toeverything.
We're talking about Elevators,storage, gyms, amenities, new
construction, perfectly laid outfloor plans.
And I'm telling you, All thatretail.
Speaker 1 (24:10):
You got the airport again across the street, right,
and you know, here's what I wantto share before I forget.
So because of that, I wasreached out to by a private
equity.
Actually, it was a solarcompany out of Phoenix, but they
were purchased by a privateequity firm out of New York and
they reached out to me and saidhey, Ryan, we basically get
nothing but larger contractslike solar field size level
(24:31):
contracts.
He goes what's the squarefootage that you guys are
building?
I said about 500,000 squarefeet between residential and
storage, Cause right nowparadigm storage is 225, right,
we're going to basically withresidential, definitely more so
he goes, well look we.
Basically the way we work is wecome in and we actually strike a
deal with the local powercompany where we provide power.
We basically sell power and wesell it at a certain price.
(24:53):
So what we do is we come in and, depending on what type of
contractor is, a lot of timeswe'll come in and do all of your
solar, your roof and lowvoltage lighting electrical for
free.
Wow, so that would shave downmy budget, but then I would have
solar that I'm able to providepower to my unit owners, along
with the gym, and then we'd havea soul, basically be the first
solar field in lake.
(25:14):
So it's very, very forwardthinking, very innovative, which
is where the city's reallylooking for.
With all the meetings I've beenin with the city council, and I
think that's where we're gettinga lot more push to just all of
that support.
All the way down to you know,some of your subs have been
calling you going hey, can I bidthat project?
Can I bid that project?
(25:34):
Which for me makes me feel good.
Again, I think everyone'sworried about material costs,
inflation, what's going on withthe elections we can talk about
here on this too, because thatdoes have a direct effect on
migration, affordability and soforth.
But at the end of the day, whenyou're able to have so many
people that want to be a part ofthat project, for them it's a
four-year project.
You see something that big inthe city.
That's security for people.
(25:55):
Most laborers are looking forsecurity in anybody that's in
the construction realm.
But then now I also have theability to bid out each other.
Who's going to do the best workfor the fastest, best quality,
right and stay on time andbudget.
Speaker 2 (26:08):
So I think we should touch on that really quick
because for those of you thatare listening that have already
invested in Paradigm Storage orBarn Caves or you're considering
about doing so, it's importantto know that.
It's well known that LakeHavasu has been well known for
its reliability lack ofreliability due to poor
subcontractors and Ryan wasfortunate enough to get plugged
(26:32):
in with the best team fromgeneral contractor all the way
down.
So if you guys have arefollowing paradigm storage,
you'll see that we literallystarted building c three and a
half months ago and building dis already 50 complete.
So, just so, just think aboutthat same execution on barn
caves.
Literally, you'll be done withparadigm storage in a year.
(26:54):
So for everyone who's inquiringabout barn caves how can I buy
one?
How can I invest as asubcontractor?
How can I be a part of it?
I mean, this feels to me likeit'll probably be the most
successful project in LakeHavasu ever.
Speaker 1 (27:10):
Well, we have more buyers, I think in mind.
You said that day when wereleased it on Newtowl how many
buyers you had in mind,including my friends, including
my employees.
People are going I want thatproduct.
I mean, it's just a differentvibe, but it's also designed as
a barn dominium.
It's very trendy, but I'm ableto build it in a way that makes
it more affordable and I thinkthat's a really one of the
(27:32):
biggest things that we had tofocus on.
Keeping our HOAs down by puttingthat gym in there and bringing
in a big operator to pay for theamenity package is really what
I'm doing.
I'm saying, hey, instead of mehaving my unit owners pay a high
HOA to cover that pool and theamenities and people cleaning it
or what have you, how about Isliver that away?
Give all my owners theopportunity to go, experience
(27:53):
and enjoy that much larger too,and then have it already paid
for by the community.
So now my unit owner's costscome down.
So trying to be able to justlisten to the market overall and
make good decisions is reallythe key here.
Speaker 2 (28:07):
I think people just want to see this product come to
market as soon as possible,because, again, people are
literally going out of their wayjust to say how cool of a
project this is.
This is a nice refreshment tothe typical storage development
that you're seeing.
People are like oh wow, nowthere's a living component
attached to it and now I canprobably actually finance it, so
(28:28):
it brings more buyers into playtoo.
Again, just the whole packageis a true level, and that's the
idea is to design this in a waywhere you can get conventional
mortgage.
Speaker 1 (28:36):
It's a home, it's a town home, so it's an SFR single
family resident you can getnormal conventional mortgage.
That's huge too.
So you're really opening updoors for more buyers.
I think you're going to see,and I can I have tons of stories
of how many people aredownsizing or love the kind of
lock and key aspect of it.
Where they buy, they just comeand they don't have to deal with
maintenance, they just come andenjoy, you know a handful of
(28:57):
times a year and then they leavedown to people that are living,
working here, that want to beable to afford to buy a home for
the first time, so first timehome buyer.
So I'm trying to basically castthe net as far as I can be, as
as effective as I can, as far asyou know.
Uh, bringing in the rightamenities and bringing in, you
know, more forward thinking onwhat, what's trending Well and
(29:17):
you cost yeah, and you capturedthat.
Speaker 2 (29:19):
on paradigm storage, yes, there's the MTIs, the
skaters, the big DCVs, thePrevost RVs, but it's.
But it's, of course, you know,maybe someone who has a smaller
boat or a medium boat.
We made the price points therecompletely attractive so that it
accommodated all parties.
And I think I love what youjust said about the barn caves.
(29:44):
You know this gives first timebuyers an opportunity.
This makes a second home moreattainable because it has the RV
garage.
So, like you know, againperfectly said Paradigm Storage,
Barn Caves, the options thatare available, you know, for
medium earners, high incomeearners, you set the stage to
make it attainable.
Speaker 1 (30:01):
One of the big things that we track is generational
spending right, each generation,and what their spending habits
are.
Baby boomers are the largestgeneration, number one, that
have the majority of the money,even though you're seeing that
transfer happen towards themillennials and to some of the
Gen X side, but it's more goingtowards millennials.
But even if you look at RVs, rvsales are projected to just
(30:22):
almost double in the next fiveto 10 years.
The idea is, as most of us usedto look at baby boomers as
being the ones that owned RVs.
Now it's multi-generationalthat own RVs.
Same thing with boats.
On top of that, baby boomersalso are looking to invest in
the communities that they knowis high in retirement.
This is a retirement community.
(30:43):
They know what retired peopleare looking for.
They understand what lifestylethey're looking for healthcare,
all of those amenities that arereal close like the mall.
Gas is going up.
Everyone's like well, if Idon't have to travel too much
and everything's right there,great, seven, eight minutes and
you're dropping your boat on thewater, but then you have
everything that you need.
That right.
(31:03):
There is what we're trying tocontinue to track and marry up.
There's a lot of moving pieces,but the majority of my
investors are boomers, yeah, andthen they're also going, okay.
Well, we also know theretirement.
This is the number one desire,desire to retirement committee
on the West coast, I mean.
I mean I, we could go on and onfrom everyone who comes here.
Speaker 2 (31:22):
Oh I mean to the point where and again, I'm not a
I'm not a CPA or a taxprofessional, but there's people
that come to me because theyknow that I have the best people
around me that help me with taxstrategy and to lessen my tax
liability, because I'm a veryhigh income earner you can
(31:45):
figure out a way to use thestorage unit in some way, shape
or form for your work or for abusiness.
You can actually write off amajority of that purchase in one
year.
So, to put it in layman's terms, if you're making $150,000 a
year and you purchase a unit inBuilding Charlie for $126,500,
(32:05):
you can almost write off all ofyour taxable income by
purchasing one storage unit.
So for those baby boomers thatyou know are trying to get with
the times and figure out how to,you know, exercise top tier tax
strategy, you know, maybeconsider investing in a storage
unit to lessen your taxliability.
You can only do it one time andyou certainly can't abuse it.
And again, I'm not a taxprofessional, but this is
(32:27):
something that I've done everysingle year.
Speaker 1 (32:29):
And that's I mean first of all.
Real estate is kind of whereyou want to.
You know it's where there'smost tax benefits as well, but
that's kind of goes hand in handwith the majority of the
conversations that you have.
We just had that conversationwith your buyers.
It's really kind of maneuveringaround taxes and what they have
as far as taxable income.
So when you look at even fromthe barn cave side, I think
people are going to look at barncaves as an asset that you're
(32:51):
going to hang on to Like.
The rule of thumb is, you know,so, let's say, for a first time
home buyer, you can buysomething that's a little bit
lower cost in the city, but youtry to keep that asset for the
rest of your life as a rental.
So when you move and, let's say, you step up, you can at least
keep that asset and cash flow it.
Well then think about a resaleside.
All of this area is booming andall that growth.
You're creating demand due tothat, and then obviously you
(33:15):
have the ability to resell itand get appreciation and then
you have more people that youcan cash your net to to bring to
buy that on the exit.
So again it's the same conceptthat we're trying to marry up
with paradigm storage to theBarn Cave product.
Speaker 2 (33:27):
Here's just some secret sauce.
Call it a value nugget,whatever I mean.
At the end of the day, this ishuge.
Just remember that commercialreal estate is the best hedge
against inflation and, witheverything that's going on in
the world right now, don't keepyour money in a bank account or
a Roth IRA or stocks.
Put it in something that youcan control and when you put it
(33:51):
in an asset class that is asrecession resistant as storage,
there's really no better play inreal estate, in my opinion.
Speaker 1 (33:58):
Well, let's kind of talk about the elephant in the
room right.
Iran just shot off I don't knowhow many drones and missiles
and this is now getting kind ofbad.
I think a lot of people.
It was already bad, but it'sgetting worse and I think it
could get worse before it getsbetter.
And what I've seen is, sincethis has happened this was only
a handful of days ago, right,because what's the date today?
The 16th?
You know, the idea is that theamount of phone calls I'm
(34:20):
getting from my investors wehave 400 investors on our
platform and a lot of friendswith in some of the case, so I
feel like they're family butthese conversations are going.
Hey, ryan, obviously stocks aregoing to drop.
One tweet from Elon Musk couldcrash some stocks.
So I think what's happening isthe anxiety level that people
have.
If they're really heavy instock, you're seeing their
(34:40):
diversification go more towardsreal estate or real assets or
these type of packages.
Speaker 2 (34:48):
Absolutely.
Speaker 1 (34:49):
And what I'm realizing is the amount of
people that are just overallconcerned.
I'm concerned, I mean that'swhy I bought out here, not
trying to say anything aboutCalifornia politics, but I'm
just seeing that not get better.
I'm seeing it's been gettingworse for 40 years.
Speaker 2 (35:02):
Right.
Speaker 1 (35:03):
So it'd be naive of me to think that things are
going to get better.
So I'm just looking at it goingokay.
I have three kids.
I want to leave something forthem.
I want to be around betterpeople in my opinion.
So I'm moving everything in mylife to do that.
And that's what you're seeing,too, is people are going okay.
I think if things get worsewhich it will and I think it can
and it will I think what you'regoing to see is more people are
(35:24):
going to have to migrate foraffordability too, especially
when boomers the majority ofboomers are W2X employees.
They're going to have tomigrate for healthcare,
affordability and lifestyle wayof life.
Speaker 2 (35:37):
You can't control stocks.
You can't control thevolatility of stocks.
You can't control your Roth IRAor your CD.
The biggest thing that I've doneis I've always invested in
something that I can control,and when I weighed the decision
to invest $3 million in Paradigm, it was not based on.
(35:58):
It was almost like a stock in asense, because I didn't really
consider myself investing inParadigm Storage.
I invested in Ryan, his visionand the Paradigm brand, but this
was a huge investment that Imade and I decided to put it in
something that I'm literally onthe front lines of.
I'm the one that is selling theunits and reporting to Ryan.
(36:18):
I would be a fool not to investin a project that is as rock
solid as Paradigm Storage, inone of the strongest lay
communities in the country, oneof the most recession-resistant
asset classes and probably theonly CEO, founder, chairman all
of the above that is as involvedas Ryan I've never seen.
(36:46):
Think about it.
Just don't even think about it.
Just jump in when you have thisopportunity that I don't know
if you'll ever see again in LakeHavasu or anywhere else in the
country.
Speaker 1 (36:56):
This is a perfect segue into closing this out here
.
But even to talk on it, youdidn't make a $3 million
investment right out the gate.
You kind of trickled it in andobviously you're on the front
lines because you're sellingthese units, so you're seeing
the demand you're feeling andtasting it?
Yeah, but you're feelingsmelling and tasting it.
(37:16):
We try to provide that level ofupdates, too to our investors.
We also invite all of ourinvestors to come on site.
I meet them a handful of timesa month but at the same time,
you know you're seeing thedecisions that are being made,
you're watching the demand andyou're going hey, ryan, I have
more money, let me keep givingyou some more cash and look how
fast we're now building becauseof that.
So you know, at the same time,that's very common too for
investors.
They'll come in and say let medip the toe in the water and
build a relationship with you.
(37:36):
See you perform and we'll do itagain.
Speaker 2 (37:38):
Don't give that money to a stockbroker.
Put it in real estate.
It is go back a.
This is truly again I've saidit a couple of times but the
biggest hedge against inflation.
The volatility is low and whenyou look at cash on cash, I
don't know of anyone else thatoffers better returns than you
do.
Speaker 1 (37:57):
This product and asset class definitely provides
the best.
But what helps is the fact thatthe margins are so big From our
acquisition, design and thenbuilding, then an exit and
timeline.
Look how fast we're buildingthe gym.
Speaker 2 (38:10):
And that's important for you guys.
Ryan is headstrong andaggressive and I so admire that.
We've also said no to a lot ofprojects and I think that's
important.
There's strategy.
You've been methodical whenI've said, hey, let's look at
this, let's look at this.
These projects like Paradigmand Barn Caves again, for an
(38:31):
investor that's thinking aboutit, I couldn't think of anything
more safe.
Speaker 1 (38:34):
Well, man, I really appreciate it.
Thank you very much, man.
It's an honor to have you on mypodcast.
You're one of my closestfriends.
You got my back, buddy, and Ireally appreciate it.
How long did we go back?
Speaker 2 (38:51):
nine years.
Speaker 1 (38:51):
We started off by looking at a new construction RV
garage home that were at thetime like $380,000.
I'm so mad that I sold thatasset.
Everyone goes, ryan.
Have you made bad investments?
Well, I've sold assets.
I probably should now.
Speaker 2 (38:58):
Yeah, and it was something where we kept in touch
and Ryan's always spoke veryhighly of me and me of him, and
we kept in touch.
And Paradigm came across yourdesk and that's how it started.
Speaker 1 (39:12):
What would that house sell for now?
Just curious.
Speaker 2 (39:15):
I probably shouldn't tell you.
Speaker 1 (39:16):
Tell me, anyway, let me wear it.
Speaker 2 (39:18):
Probably $700,000.
Speaker 1 (39:20):
See, that was the same thing that what I just
mentioned, right, $700,000.
It's like when you buy yourfirst pad, whether it's in here
or your first home, what haveyou?
Keep it?
Rent it out, cash flow it.
I mean, what could I get forrent on that?
Speaker 2 (39:39):
Well that's, I can't afford to sell anything because
the taxes are so extreme.
So when you think again to beable to buy, you know, the
investment property that youjust bought, the tax incentive
that you're going to get forthat is insane.
That you just bought the taxincentive that you're going to
get for that is insane.
The storage units you know,ultimately to invest in a town
that number one is increasing invalue, increasing in population
, water supply, completely incheck.
(40:00):
I mean, things are only goingto continue going.
Speaker 1 (40:02):
I agree, I really agree.
So right on brother, Iappreciate you coming Thank you
very much.
Speaker 2 (40:06):
Thanks guys All right .
Speaker 1 (40:07):
So, eric, where can you know my followers, my
listeners?
You know, find you out.
Speaker 2 (40:11):
Yeah, Uh, at Eric Adelia is the handle for
Instagram.
Uh, our team is at the Havasulife.
Um, our expansion cities are atthe river life.
Speaker 1 (40:19):
So and if you're watching my social media, I.
Hey everybody, ryan Garland here, founder and
chairman of Paradigm.
Thank you very much forwatching.
We are on the Paradigm Shiftpodcast.
I am honored today to introduceyou to Eric.
He is one of my best friends.
He's also my broker and aninvestor who's parked $3 million
with us in our Paradigm storageand even more into maybe some
more projects.
So the idea behind this todayis really just to kind of
understand who he is and kind ofhis level of success and how we
(00:23):
are just leveling up ourbusiness by making sure we're
surrounding ourselves with topproducers and players, and I
think a lot of people are justworried about the market.
So I want you to understandkind of how we're navigating
these waters, if you will, andironically we're in Lake Havasus
around the lake, so that'salways fun.
But, eric, thank you forjoining us.
Man, please share a little bitwith the audience about your
background and just go for it,buddy yeah, ryan, thanks for
(00:46):
having me on the don't be toohumble.
I need you to be tell the worldwho you really are right on.
Speaker 2 (00:51):
Yeah, no, thanks for having me on the podcast, man,
I've been seeing it and, uh,some, you've got some cool
people on, so I'm honored to uhto be on the show and you know,
like Ryan said, um, you know Ihave an interesting background.
I actually came from a reallytough situation as a kid, you
know, as a five-year-old,six-year-old, at one point, not
even knowing where the next mealwas going to come from, came
(01:17):
from LA yeah, southern Caldivorce, and I got to make a
choice, you know come to come tolike Havasu city with mom, you
know, a destination that haspredominantly senior citizens at
the time a retirement community, you know or stay with my dad,
who was a little bit more of apassive man, you know pretty
much, was a caretaker for hismom.
You know his entire life.
Mom was foreign, hardly spokeany English, you know, but she
(01:41):
was a little bit of a strongerpresence.
So I decided, you know, let'smove with mom.
I think she'll be a betterparent for me.
Good call.
And you know, unfortunately,though, three years later she
decides she's going to moveagain.
Bad call, bad call.
So here I am, 16 years old, inlike Havasu City, arizona, again
predominantly a retirement townand I got to, you know, at this
(02:05):
point, make a decision for meto have that peace that I never
had, you know, 16 years of mylife.
So I find a job Barley BrothersBrewery busing tables while I'm
still in high school and I wasprobably working 60 hours a week
, 70 hours a week as a16-year-old.
Yeah, and you know, it wasinteresting because there was
(02:28):
this strip of businesses thatwas in this area where the
restaurant was.
And his name is Steve, he was areal estate agent and he sees
me working all the time and hecomes over and he's like dude,
like what are you doing with allthe money that you're making?
He's asking a 16, 17 year oldkid that.
And I'm like dude, I actuallylive on my own.
Everything I'm making I'mputting in a savings account to
(02:50):
pay the bills.
I was renting a duplex withlike five pieces of furniture in
it.
I was on conservation mode save, save, save, survive.
And then he's like well, haveyou ever thought about investing
in real estate?
And I'm like real estate, noone in my family has ever even
owned a home, let alone investin real estate.
And he's like man, you reallyought to think about doing that
(03:12):
because I see you working hereLike you've got to be saving
money.
I want to help you learn tomake that money work for you.
And I'm like man that soundskind of scary, like is the
investment guaranteed?
And he's like no, of course not.
He's like but I have a feelingthis is going to be good for you
.
You just need to try it.
I said, okay, well, I've gottwenty thousand dollars to my
(03:33):
name.
I've saved up twenty thousandgood for you know, 17, maybe 18
now at this point and I said I'mall in, let's do it.
Twenty thousand dollarsinvested.
Six months later that $20,000turned into $22,000.
And then from there I wasabsolutely hooked.
I ended up doing six more spechomes with them over the course
of the next couple of years,meanwhile still working at the
(03:55):
restaurant, hosting, being aserver, being a bartender, and I
was just infatuated with theidea of investing in real estate
.
So, of course, a couple yearslater I decided to get licensed,
explore the sales part of realestate and you know, from then
it just kind of triggered like,oh my god, this is an industry
(04:16):
where I can literally berewarded based on my actual
performance.
There's no ceiling.
First year in real estate.
I was the rookie of the yearfor the entire southwestern
region of the United States.
Two years later started a teamYear number three, number one
real estate group in Lake HavasuCity and haven't really looked
(04:36):
back since Now investing in landdevelopments, spec homes and,
of course, paradigm storage.
Speaker 1 (04:42):
Yeah, so tell us a little bit about your.
So of all, as my best friend, Idid not know that whole story.
I knew about your mom and yourdad and when you came, but I did
not know you started investingthat early, yeah, so cheers to
your success so that leads intothis next part for sure how big
is your team now and what's yourvolume for the last couple of
years and what track are you onas of today?
Speaker 2 (05:02):
Yeah, good question.
We're actually only a team of14 agents operating in three
cities and this year we'llprobably close around 250
million in sales.
The past three years we'veclosed at least 200 million in
sales.
Currently, we're the number onereal estate group in Lake
Havasu City.
We're the number one realestate group in Mojave County.
(05:23):
We're the number two realestate group in Mojave County.
We're the number two realestate group in the state of
Arizona and we're currentlyranked 14th in the country for
overall sales Got to give youthat one for sure.
Speaker 1 (05:34):
That's awesome.
So to kind of go into theparadigm side, obviously you
have a track record.
You're working with otherinvestors, you're dealing with
land development.
You're seeing a lot of otherpeople out there that are making
it happen as well, that have alonger track record than me 30
years, 40 years of experience.
What is it that makes Paradigmdifferent?
Speaker 2 (05:52):
Well, it's such a question.
It's a question that, for me,is so incredibly easy to answer,
because being around likeHavasu for so long, seeing
development before development,was actually a thing.
Out here, seeing builders anddevelopers do the absolute bare
minimum to make the most amountpossible, you're the complete
(06:18):
opposite.
So, for example, paradigmstorage to include amenities
like full insulation, climatecontrol in every unit when I may
be fighting you on certainthings to help you maximize your
profit, you're like Eric.
No, we're going to includeeverything RV hookups, extra
facades to take the aestheticsof the overall building to the
next level, oversized concretedrives, when you can actually
take the drives between thebuildings and make them bigger
(06:40):
to make more money.
You're choosing the consumerover your dollars.
Speaker 1 (06:46):
You know that's, and that means a lot to me, because
even today, when we're on site,you know the idea is to make
sure that you're delivering aproduct that people can not only
buy.
Speaker 2 (06:53):
Yeah.
Speaker 1 (06:54):
They're looking for appreciation, they're looking
for tax strategy, they'rewanting to park really expensive
toys in this stuff, but they'realso looking at I'm also
looking at from a resale side,from a true real estate
investment, not only for myself,but obviously for whoever buys
these units for sure so I reallythat means a lot and I mean,
look at how much we've been ableto accomplish in such a short
period of time.
But we're definitely, my opinion, we're setting the tone for,
(07:15):
kind of the way to do it.
Nobody else was providing airconditioning units like we are
in every one of their units.
Speaker 2 (07:20):
That's huge and think about it.
This, when all Havasu is everknown is your typical steel box.
When we're talking aboutcorrugated metal on each side,
they have to get out in 110degree temperature when they're
out here and manually crank up adoor and there's not even the
slightest possibility to addclimate control, and you're
completely disrupting theindustry and adding all of these
(07:40):
things in the units they'repractically selling themselves.
Speaker 1 (07:43):
Yeah, and on top of it, this is one of the largest
projects in the city as far asjust paradigm storage alone, not
including all of our portfolio.
Speaker 2 (07:50):
We were out there today, you and I and the team,
building C, building D, 66,000square feet.
Now you're a typical developerin Lake Havasu and I've been a
part of a lot of developments.
Sell out phase one.
Start part of a lot ofdevelopments.
Sell out phase one.
Start thinking about maybestarting phase two, starting to
build up phase two.
Then maybe in a couple yearswe'll get to phase three.
(08:12):
You are full bore, full tilt,like hey, ryan, maybe you want
to slow down.
Let me catch up on sales.
No, we're charging.
You're building 66,000 squarefeet at a time which is allowing
us to give all of our buyersmore options, and you're
continuing to add more and moreamenities.
I didn't even know you wereadding RV hookups in these units
.
Speaker 1 (08:31):
Yeah, you called me.
Are you really putting RV?
Yes, we are.
Speaker 2 (08:35):
I'm walking clients through the development and
they're like, are RV hookupsincluded?
I said, well, you actually geta full electrical panel that's
here and you could eventuallytee off and add the RV hookups.
And the client's like, well, Isee an RV hookup back there.
I'm like, what?
Like it was just so mindblowing to me that literally
these units are beyond fullyloaded, to the point where
(08:57):
they're not even as upgradedgarages that people have in
their own homes.
You know, so it's prettyspecial.
Speaker 1 (09:02):
You know, what's cool is that I think I kind of made
the decision on the fly, if Irecall.
But building c, charlie, youknow we have 14 by 50s and they
back up to each other as far asthe units right for both
driveways.
When I was looking at buildingd, all of those are drive-thru
set up right now and I rememberlooking at all the guys going.
You know we have what you'reselling units, typically kind of
two at a time yeah.
Very rarely you're doing one ata time.
Speaker 2 (09:23):
We took a call before we got on the podcast and
they're looking for two.
Speaker 1 (09:26):
So at the end of the day, I'm like well, why don't we
just provide drive-thrus?
Because at the end of the day,I think that people would want
that more and you were tellingme originally, before we even
started this, that those werethe fastest selling product as
far as in the storage space,anything.
So when we're looking at thebuilding, as far as building D
Delta, we're going, hey, whydon't we just leave?
All of these are drive-thrus,and if we do have buyers that
(09:47):
just want a 14 by 50, then we'lljust put that center piece up
and let them.
You know, two people will buy.
But the best part is is by sixbolts you can pull it right back
off.
So let's say somebody were tobuy a 14 by 50 and then the
other one behind comes up forsale or works a deal, they can
get a drive-thru later and justunbolt that by six bolts.
So I think that's pretty cool,but the drive-thrus, at the end
(10:10):
of the day, what we're doing iswe're providing diversification
For sure.
Do you want a 14 by 50?
Do you want a drive-thru?
You kind of have a different.
You have the ability to chooseand what I'm trying to do is
that's ready to go when you cansay hey, within this month or
next month we have more unitsavailable for you.
So when people are looking fora unit, you can say hey, within
the next 30, 60, we have a unitfor you and check it out.
Speaker 2 (10:35):
These are also the people that are in that product
too.
The project was thought out sowell that we're attracting
national attention.
I mean, we literally havebuyers coming from Indiana on a
1031 exchange.
We had an acquisition of sevenunits in one purchase contract.
This is exactly what I'mlooking for.
I want to get out of theresidential rental game and I
want to get into mailbox money.
Speaker 1 (10:54):
So let's go into that , because that's actually a big
part of where I wanted to takeit is the amount of people that
are selling the residentialhomes.
When the pandemic hit, theyweren't collecting rent as a
landlord.
So a lot of people especiallyif you're a boomer and you're
looking to retire you want cashflow and you like the rental
income and owning real estate.
What I'm seeing here, even frompeople selling Airbnbs, what
(11:15):
I'm seeing is people are sellingand 1031, exchanging out of
their rental homes and justbuying these Less maintenance,
less headache, better qualitytenant opens up the doors for
more tenants and you haveconsistent cash flow with no
maintenance.
Speaker 2 (11:30):
I mean coming from the biggest broker in Arizona as
far as real estate, residentialsales.
A lot of my clients who havebeen investors in residential
homes they call at 9.30 becausetheir toilet doesn't flush or
there was a bad windstorm inHavasu and seven shingles got
blown off.
We're talking about theultimate desire for an investor
(11:50):
mailbox money that comes everysingle month and it's we're
signing a lease today.
I'll talk to you in 12 monthswhen your lease is over.
Speaker 1 (11:57):
It really doesn't get better than that, yeah, and if
and if, if you decide not totake it again, you have another
you know tenant right behind it.
I mean one of the not to takeit again.
You have another tenant rightbehind it.
I mean one of the who was it?
One of the other, and I don'twant to list them, but they're
talking about anywhere between atwo to a four-year waiting list
at some of these locationsAbsolutely.
I mean that shares.
That's why we're looking atthat data as forward demand.
Speaker 2 (12:16):
There's such a need for end user storage in Lake
Havasu that, for example, inphase one we had a small group
of 1031 exchange investorsbecause there were so many end
users that wanted to buy too.
But for those 1031, and Ireally like that because it
provides an opportunity it's nota storage development where
just investors are purchasingand it's completely flooding the
(12:38):
rental market.
It's a good balance.
So those handful of investorbuyers in phase one, they put
their units up for rent and theyliterally got rented the next
day.
I mean, we're talking aboutLake H, Los Angeles, two of the
biggest metropolitan cities inthe country.
(13:06):
Our lake is only allowed tofluctuate plus or minus five
feet a year.
Now that makes us one of thebiggest destinations for water
recreation in the country.
So what that means forinvestors is when you have a
lake that's as secure as LakeHavasu, people are going to come
(13:28):
and rent those units becausethere's nowhere else to go.
So, long story short, thosepeople that put their units up
for rent, they got occupied thenext day.
Speaker 1 (13:33):
Well, we had a guy that bought in phase one and
turned around and sold it rightaway and made like $15,000, I
think it was.
Speaker 2 (13:38):
Yep, we had one of those, for sure.
Speaker 1 (13:40):
I actually looked at it and said you know what?
I think we're going to changeour HOAs where if you buy and
you turn around to flip one ofour units, we have the right to
buy it back first.
Speaker 2 (13:48):
Don't worry, though, we're getting top dollar Ryan.
Speaker 1 (13:51):
Yeah, I know the other side of it too, and this
is the one part where I thinkfor our audience sometimes I
hate to brag and I don't want tobe unhumble, but I do want to
talk about this becauseultimately, Lake Havasu is kind
of like who's got the biggerboat?
Because it's all SouthernCalifornia money.
Speaker 2 (14:08):
For sure.
Speaker 1 (14:08):
It's just that second home destination and everybody
comes out here because themajority of the people would
come out for the recreationalside but grew up coming out here
.
And those people come out andthey love the desert lifestyle.
They love all the things youcould do during the winter,
during the summer it'syear-round activities here, but
it's also very family-oriented.
So one of the things that I'vereally realized recently is the
(14:28):
nature of the buyers that are inour project compared to anybody
else's project, meaning whosome of these people are the
business owners out of LA, thebusiness owners here in town.
You know my opinion, these areall the guys that are
multimillionaires.
Even we have a billionaire nowin one of our phases.
So for me to kind of to look atwho's in our phase, it's the
who's who, but it's also becauseour product is superior
(14:51):
compared to our I would saycompetitors.
If we really have them out here,I don't think.
I think we're kind of on adifferent level, which is kind
of sometimes some people willlook at them like well, you're
building something so uniqueit's, you're at a much higher
level, so you're kind of settinga new record or it's more risky
.
I don't see it that way.
I think what happened is is webuilt something on the side of
(15:15):
city where all the development'sgoing to have to go, so I think
we were very forward thinkingon that.
725,000 square feet of retail,you know, you got super Walmart
or Walmart super center thereand then they're just announcing
all that development that'sgoing over there by medical
medical Was it 50,000 squarefoot.
I think it announcing all thatdevelopment that's going over
there by the law.
Medical, medical, what is it?
50,000 square foot?
I think it's urgent care that'sgoing in.
They just we got some intelthat there may be an 80 foot.
(15:37):
Of course, we're always withthe barn caves, which we'll talk
about in a second.
You know we have a heightrestriction on that one, so they
were just talking about howthey have an 80 foot tall.
I think it's a five-storyproduct of a hotel that is
looking to be built over there.
You have North Point.
Speaker 2 (15:56):
Let's talk a little bit about that north side so I
can kind of circle up on thenature of this location.
This project, again thought outso perfectly to the point where
it had been over a decadebefore anything storage-related
made the front page of thenewsreel.
We were just on the front pageof the newspaper literally last
week.
It got an ungodly amount ofattention online.
I mean, this literally is inthe eyes of our city council,
(16:19):
our vice mayor.
It's in such a positive lightbecause we're not the slumlords
of development for storage Againyou've talked about it which is
why you've attracted theclientele that we have and I
think that, to allude to whatyou were saying about some of
our customers, you couldliterally park some lawn chairs
in Paradigm Storage and probablywitness $500 million in boats
(16:40):
drive by, going in and out oftheir units.
Speaker 1 (16:43):
Yeah, we're only halfway built.
Speaker 2 (16:44):
But in regards to the strategy of picking this
location, which Ryan and histeam did such a good job at,
it's located on the lake side ofthe highway, so literally from
Paradigm Storage, you're maybeseven minutes away from the
launch ramp, so to be able tocome into Lake Havasu, hook up
to your storage unit and beseven minutes to the water.
(17:05):
People are really mesmerized bythe location too and, like you
said, retail, you know, walmart,medical, all right there.
Speaker 1 (17:13):
Airport five minutes away yeah, I mean, the airport
is, you know, on the barn cavesproject.
I'm literally having to go tothe FAA to see if we can do
solar because we're so close tothe airport, right, you know.
So that's they'll give you anidea of our location in my
opinion is absolutely key, infact.
In my opinion is absolutely key.
In fact, my videographer, whichis here now, was telling me
about a conversation that he hadwith a guy who was building out
(17:34):
here that asked how the heckdid you guys get that land?
Cause, in essence, we don'tpretty much own that half that
street.
So, with with our 14 acres plusthat 18 acres, I mean we own
more acreage, I think, on thaton that street than anybody else
.
Speaker 2 (17:45):
We'll talk about that 18 acres maybe in a second.
But I mean, I was begging Ryanto take these 18 acres down
because I'm telling you land inLake Havasu City is in the
fourth quarter.
We maybe have fourth quarterseven minutes to go as far as
the land clock for Lake Havasu.
There's so much land that hasbecome acquired from developers
(18:06):
now over the last decade as LakeHavasu has exploded, to take
that land down was one of yourbest moves that I think you know
.
That's five to six years ofdevelopment.
When if you were to say, hey,eric, like let's go get another
10 acre parcel, I can't provideit because it's gone, it doesn't
exist.
So for people that are buyinginto a project like this buying
a unit, buying two, buying seventhink about the land
(18:31):
availability and lack thereof inLake Havasu, because we're
hardly going to see anythingelse get built out for the
entirety of Lake Havasu unlessyou're purchasing, attempting to
purchase, state land, and foranyone who's a developer that's
listening, you know how longthat takes.
Speaker 1 (18:43):
But I know Bureau of Land Management is talking about
selling some more land to thecity of Lake Havasu as well.
Speaker 2 (18:48):
We need it.
Speaker 1 (18:49):
I know Absolutely.
The good thing is water's there, everything seems to fit in.
I think I was telling you ADOT,which is the state funded for
streets and so forth, out herein Arizona.
They just asked us to do atraffic study right there, which
we're not even close to thecorner, but right there on the
corner of the 95 and retailcenter which obviously we share
(19:12):
a property line with Home Depot.
They've already done all thoseimprovements.
So we're going oh shoot, arethey asking us to do
improvements?
That could cost us a lot ofmoney?
But what's happening is.
To me, the takeaway is which,by the way, we don't have to
worry about it.
They're already signed off onit.
But my concern was originallyis do I have to do street
improvements?
Come to find out we don't.
But what that tells me is theamount of traffic that's coming
(19:33):
in here.
They're saying, hey, there's somuch demand and there's so much
growth there.
We need to do an updatedtraffic study because we need to
see how many people are comingthrough the 95.
Speaker 2 (19:43):
Absolutely.
You touched on it too.
North Point, viewpoint, theRefuge these are three big
residential developments withinclose proximity to Paradigm
Storage.
So again, another good reasonwhy we developed here as much as
you would think.
A 2,500 square foot house witha 25 by 80 RV garage is enough
for your Havasu homebuyer.
They want more so to be able tohave your home and have your
(20:06):
storage units seven minutes away.
You know, talking about thatexpansion, these developments, I
mean you can drive by if you'reever in, like Havasu, north
side of town, viewpoint, northPoint they're building like
crazy and people just can't getenough garage and was there
1,800 lots.
Speaker 1 (20:22):
Is it North Point?
That's it.
Which one is it?
Speaker 2 (20:24):
Viewpoint Viewpoint.
But North Point has beenexpanding since, I think, 2012.
Speaker 1 (20:29):
Well, you just drove me down.
I couldn't believe the brandnew homes.
Yeah, they're stunning too.
It makes me feel like home incalifornia, so I think I could
see how they're catering to thattoo.
Speaker 2 (20:37):
we literally this project is so fascinating to
your typical buyer that we areto anyone that's calling in or
anyone that sees us.
They call us and they're likeso what, what is this?
How does this work?
Do you buy these?
Do you rent these?
And I'm like actually, you getdated property.
You can buy, sell leasewhenever you want.
It's an actual real estatecondo.
(20:58):
I mean, we just got on a call,literally before we started the
podcast, from people that wantto buy too, and they said they
literally don't even know whatthey're buying them for, because
we're creating the hype.
Yeah.
Speaker 1 (21:09):
All right.
So for those of you that arestill watching, this is where
it's going to get good.
So let's talk about the barncaves yeah, because that's kind
of our baby right now.
So again, 225,000 square feetis the paradigm storage we've
been talking about.
Right next to that is 18 acresthat we purchased.
That 18 acres we're trying tosliver out 150 units to 160
units of basically the paradigmproduct layout in regards to the
(21:33):
storage.
But we're going to buildresidential above it and the
idea is to do, you know, maybe abedroom bathroom downstairs,
more like a 30 by 60 or 30 by 70, with a bedroom bathroom
downstairs.
We want to do another bedroombathroom upstairs with another
powder room.
Second floor.
Second floor would have akitchen and then the third floor
would be an entire master suite, so it'd be a three bedroom,
(21:54):
three and a half bath.
That's the largest unit.
We're going to have threedifferent floor plans.
It can be one, one and a half,two, two and a half as well, but
the idea is the largest floorplan under 700 000 right is
going to be a three, a tallskinny with an elevator, by the
way, with a man cave down uh,you know, on your garage so and
it'll be a drive-through.
You and I were talking aboutthat and not only that, which I
(22:15):
think a lot of people are reallyexcited to hear that we're
taking the community center thatyou would build, like any other
apartment project orresidential build, to rent
community, and we're going tobuild a 20,000 square foot
public gym that everybody elsecan have access to as far as our
owners for free, because nowyou own in there and now they
(22:35):
have access to a customized gym,and I've been coming out here
for 35 years.
Not trying to say anything badhere, but I don't think the gyms
, I think the gyms are reallyfar.
Speaker 2 (22:46):
The gyms are terrible .
Speaker 1 (22:48):
I was not going to say it that way.
But yes, the gyms aredefinitely terrible.
I mean I, it's hard for me toeven get a good workout in, you
know.
Speaker 2 (22:53):
I come out here and I get.
Speaker 1 (22:54):
I'm looking forward to going home just so I can kind
of get back into my own routine.
Yeah, if you could build, youknow, and I know, be able to
provide a community center thathas, you know, like a uh, a
little area for like a smallrestaurant and like a smoothie
bar and you can pop up yourlaptop and we're very much like
(23:16):
a lifetime fitness field, butnot as big and then obviously
provide a much better productfor people to go and kind of
hang out and uh, and much largerand more usable, newer
equipment, just something moremodern.
Speaker 2 (23:36):
Cause it's just not out here.
No, and this was exactly theproject that caught the news,
the News Herald.
So for anyone that's listening,please go check out the story
News Herald.
Town Home, barn Caves.
They did a full write-up onthis project.
I'm telling you I have nevergotten so many calls on one
specific thing since I've beenselling real estate for the last
nine years in Lake Havasu, andwe talked a little bit about
what was the drawn paradigm.
There wasn't anything that youleft behind.
(23:57):
As far as upgrades, listen toeverything.
We're talking about Elevators,storage, gyms, amenities, new
construction, perfectly laid outfloor plans.
And I'm telling you, All thatretail.
Speaker 1 (24:10):
You got the airport again across the street, right,
and you know, here's what I wantto share before I forget.
So because of that, I wasreached out to by a private
equity.
Actually, it was a solarcompany out of Phoenix, but they
were purchased by a privateequity firm out of New York and
they reached out to me and saidhey, Ryan, we basically get
nothing but larger contractslike solar field size level
(24:31):
contracts.
He goes what's the squarefootage that you guys are
building?
I said about 500,000 squarefeet between residential and
storage, Cause right nowparadigm storage is 225, right,
we're going to basically withresidential, definitely more so
he goes, well look we.
Basically the way we work is wecome in and we actually strike a
deal with the local powercompany where we provide power.
We basically sell power and wesell it at a certain price.
(24:53):
So what we do is we come in and, depending on what type of
contractor is, a lot of timeswe'll come in and do all of your
solar, your roof and lowvoltage lighting electrical for
free.
Wow, so that would shave downmy budget, but then I would have
solar that I'm able to providepower to my unit owners, along
with the gym, and then we'd havea soul, basically be the first
solar field in lake.
(25:14):
So it's very, very forwardthinking, very innovative, which
is where the city's reallylooking for.
With all the meetings I've beenin with the city council, and I
think that's where we're gettinga lot more push to just all of
that support.
All the way down to you know,some of your subs have been
calling you going hey, can I bidthat project?
Can I bid that project?
(25:34):
Which for me makes me feel good.
Again, I think everyone'sworried about material costs,
inflation, what's going on withthe elections we can talk about
here on this too, because thatdoes have a direct effect on
migration, affordability and soforth.
But at the end of the day, whenyou're able to have so many
people that want to be a part ofthat project, for them it's a
four-year project.
You see something that big inthe city.
That's security for people.
(25:55):
Most laborers are looking forsecurity in anybody that's in
the construction realm.
But then now I also have theability to bid out each other.
Who's going to do the best workfor the fastest, best quality,
right and stay on time andbudget.
Speaker 2 (26:08):
So I think we should touch on that really quick
because for those of you thatare listening that have already
invested in Paradigm Storage orBarn Caves or you're considering
about doing so, it's importantto know that.
It's well known that LakeHavasu has been well known for
its reliability lack ofreliability due to poor
subcontractors and Ryan wasfortunate enough to get plugged
(26:32):
in with the best team fromgeneral contractor all the way
down.
So if you guys have arefollowing paradigm storage,
you'll see that we literallystarted building c three and a
half months ago and building dis already 50 complete.
So, just so, just think aboutthat same execution on barn
caves.
Literally, you'll be done withparadigm storage in a year.
(26:54):
So for everyone who's inquiringabout barn caves how can I buy
one?
How can I invest as asubcontractor?
How can I be a part of it?
I mean, this feels to me likeit'll probably be the most
successful project in LakeHavasu ever.
Speaker 1 (27:10):
Well, we have more buyers, I think in mind.
You said that day when wereleased it on Newtowl how many
buyers you had in mind,including my friends, including
my employees.
People are going I want thatproduct.
I mean, it's just a differentvibe, but it's also designed as
a barn dominium.
It's very trendy, but I'm ableto build it in a way that makes
it more affordable and I thinkthat's a really one of the
(27:32):
biggest things that we had tofocus on.
Keeping our HOAs down by puttingthat gym in there and bringing
in a big operator to pay for theamenity package is really what
I'm doing.
I'm saying, hey, instead of mehaving my unit owners pay a high
HOA to cover that pool and theamenities and people cleaning it
or what have you, how about Isliver that away?
Give all my owners theopportunity to go, experience
(27:53):
and enjoy that much larger too,and then have it already paid
for by the community.
So now my unit owner's costscome down.
So trying to be able to justlisten to the market overall and
make good decisions is reallythe key here.
Speaker 2 (28:07):
I think people just want to see this product come to
market as soon as possible,because, again, people are
literally going out of their wayjust to say how cool of a
project this is.
This is a nice refreshment tothe typical storage development
that you're seeing.
People are like oh wow, nowthere's a living component
attached to it and now I canprobably actually finance it, so
(28:28):
it brings more buyers into playtoo.
Again, just the whole packageis a true level, and that's the
idea is to design this in a waywhere you can get conventional
mortgage.
Speaker 1 (28:36):
It's a home, it's a town home, so it's an SFR single
family resident you can getnormal conventional mortgage.
That's huge too.
So you're really opening updoors for more buyers.
I think you're going to see,and I can I have tons of stories
of how many people aredownsizing or love the kind of
lock and key aspect of it.
Where they buy, they just comeand they don't have to deal with
maintenance, they just come andenjoy, you know a handful of
(28:57):
times a year and then they leavedown to people that are living,
working here, that want to beable to afford to buy a home for
the first time, so first timehome buyer.
So I'm trying to basically castthe net as far as I can be, as
as effective as I can, as far asyou know.
Uh, bringing in the rightamenities and bringing in, you
know, more forward thinking onwhat, what's trending Well and
(29:17):
you cost yeah, and you capturedthat.
Speaker 2 (29:19):
on paradigm storage, yes, there's the MTIs, the
skaters, the big DCVs, thePrevost RVs, but it's.
But it's, of course, you know,maybe someone who has a smaller
boat or a medium boat.
We made the price points therecompletely attractive so that it
accommodated all parties.
And I think I love what youjust said about the barn caves.
(29:44):
You know this gives first timebuyers an opportunity.
This makes a second home moreattainable because it has the RV
garage.
So, like you know, againperfectly said Paradigm Storage,
Barn Caves, the options thatare available, you know, for
medium earners, high incomeearners, you set the stage to
make it attainable.
Speaker 1 (30:01):
One of the big things that we track is generational
spending right, each generation,and what their spending habits
are.
Baby boomers are the largestgeneration, number one, that
have the majority of the money,even though you're seeing that
transfer happen towards themillennials and to some of the
Gen X side, but it's more goingtowards millennials.
But even if you look at RVs, rvsales are projected to just
(30:22):
almost double in the next fiveto 10 years.
The idea is, as most of us usedto look at baby boomers as
being the ones that owned RVs.
Now it's multi-generationalthat own RVs.
Same thing with boats.
On top of that, baby boomersalso are looking to invest in
the communities that they knowis high in retirement.
This is a retirement community.
(30:43):
They know what retired peopleare looking for.
They understand what lifestylethey're looking for healthcare,
all of those amenities that arereal close like the mall.
Gas is going up.
Everyone's like well, if Idon't have to travel too much
and everything's right there,great, seven, eight minutes and
you're dropping your boat on thewater, but then you have
everything that you need.
That right.
(31:03):
There is what we're trying tocontinue to track and marry up.
There's a lot of moving pieces,but the majority of my
investors are boomers, yeah, andthen they're also going, okay.
Well, we also know theretirement.
This is the number one desire,desire to retirement committee
on the West coast, I mean.
I mean I, we could go on and onfrom everyone who comes here.
Speaker 2 (31:22):
Oh I mean to the point where and again, I'm not a
I'm not a CPA or a taxprofessional, but there's people
that come to me because theyknow that I have the best people
around me that help me with taxstrategy and to lessen my tax
liability, because I'm a veryhigh income earner you can
(31:45):
figure out a way to use thestorage unit in some way, shape
or form for your work or for abusiness.
You can actually write off amajority of that purchase in one
year.
So, to put it in layman's terms, if you're making $150,000 a
year and you purchase a unit inBuilding Charlie for $126,500,
(32:05):
you can almost write off all ofyour taxable income by
purchasing one storage unit.
So for those baby boomers thatyou know are trying to get with
the times and figure out how to,you know, exercise top tier tax
strategy, you know, maybeconsider investing in a storage
unit to lessen your taxliability.
You can only do it one time andyou certainly can't abuse it.
And again, I'm not a taxprofessional, but this is
(32:27):
something that I've done everysingle year.
Speaker 1 (32:29):
And that's I mean first of all.
Real estate is kind of whereyou want to.
You know it's where there'smost tax benefits as well, but
that's kind of goes hand in handwith the majority of the
conversations that you have.
We just had that conversationwith your buyers.
It's really kind of maneuveringaround taxes and what they have
as far as taxable income.
So when you look at even fromthe barn cave side, I think
people are going to look at barncaves as an asset that you're
(32:51):
going to hang on to Like.
The rule of thumb is, you know,so, let's say, for a first time
home buyer, you can buysomething that's a little bit
lower cost in the city, but youtry to keep that asset for the
rest of your life as a rental.
So when you move and, let's say, you step up, you can at least
keep that asset and cash flow it.
Well then think about a resaleside.
All of this area is booming andall that growth.
You're creating demand due tothat, and then obviously you
(33:15):
have the ability to resell itand get appreciation and then
you have more people that youcan cash your net to to bring to
buy that on the exit.
So again it's the same conceptthat we're trying to marry up
with paradigm storage to theBarn Cave product.
Speaker 2 (33:27):
Here's just some secret sauce.
Call it a value nugget,whatever I mean.
At the end of the day, this ishuge.
Just remember that commercialreal estate is the best hedge
against inflation and, witheverything that's going on in
the world right now, don't keepyour money in a bank account or
a Roth IRA or stocks.
Put it in something that youcan control and when you put it
(33:51):
in an asset class that is asrecession resistant as storage,
there's really no better play inreal estate, in my opinion.
Speaker 1 (33:58):
Well, let's kind of talk about the elephant in the
room right.
Iran just shot off I don't knowhow many drones and missiles
and this is now getting kind ofbad.
I think a lot of people.
It was already bad, but it'sgetting worse and I think it
could get worse before it getsbetter.
And what I've seen is, sincethis has happened this was only
a handful of days ago, right,because what's the date today?
The 16th?
You know, the idea is that theamount of phone calls I'm
(34:20):
getting from my investors wehave 400 investors on our
platform and a lot of friendswith in some of the case, so I
feel like they're family butthese conversations are going.
Hey, ryan, obviously stocks aregoing to drop.
One tweet from Elon Musk couldcrash some stocks.
So I think what's happening isthe anxiety level that people
have.
If they're really heavy instock, you're seeing their
(34:40):
diversification go more towardsreal estate or real assets or
these type of packages.
Speaker 2 (34:48):
Absolutely.
Speaker 1 (34:49):
And what I'm realizing is the amount of
people that are just overallconcerned.
I'm concerned, I mean that'swhy I bought out here, not
trying to say anything aboutCalifornia politics, but I'm
just seeing that not get better.
I'm seeing it's been gettingworse for 40 years.
Speaker 2 (35:02):
Right.
Speaker 1 (35:03):
So it'd be naive of me to think that things are
going to get better.
So I'm just looking at it goingokay.
I have three kids.
I want to leave something forthem.
I want to be around betterpeople in my opinion.
So I'm moving everything in mylife to do that.
And that's what you're seeing,too, is people are going okay.
I think if things get worsewhich it will and I think it can
and it will I think what you'regoing to see is more people are
(35:24):
going to have to migrate foraffordability too, especially
when boomers the majority ofboomers are W2X employees.
They're going to have tomigrate for healthcare,
affordability and lifestyle wayof life.
Speaker 2 (35:37):
You can't control stocks.
You can't control thevolatility of stocks.
You can't control your Roth IRAor your CD.
The biggest thing that I've doneis I've always invested in
something that I can control,and when I weighed the decision
to invest $3 million in Paradigm, it was not based on.
(35:58):
It was almost like a stock in asense, because I didn't really
consider myself investing inParadigm Storage.
I invested in Ryan, his visionand the Paradigm brand, but this
was a huge investment that Imade and I decided to put it in
something that I'm literally onthe front lines of.
I'm the one that is selling theunits and reporting to Ryan.
(36:18):
I would be a fool not to investin a project that is as rock
solid as Paradigm Storage, inone of the strongest lay
communities in the country, oneof the most recession-resistant
asset classes and probably theonly CEO, founder, chairman all
of the above that is as involvedas Ryan I've never seen.
(36:46):
Think about it.
Just don't even think about it.
Just jump in when you have thisopportunity that I don't know
if you'll ever see again in LakeHavasu or anywhere else in the
country.
Speaker 1 (36:56):
This is a perfect segue into closing this out here
.
But even to talk on it, youdidn't make a $3 million
investment right out the gate.
You kind of trickled it in andobviously you're on the front
lines because you're sellingthese units, so you're seeing
the demand you're feeling andtasting it?
Yeah, but you're feelingsmelling and tasting it.
(37:16):
We try to provide that level ofupdates, too to our investors.
We also invite all of ourinvestors to come on site.
I meet them a handful of timesa month but at the same time,
you know you're seeing thedecisions that are being made,
you're watching the demand andyou're going hey, ryan, I have
more money, let me keep givingyou some more cash and look how
fast we're now building becauseof that.
So you know, at the same time,that's very common too for
investors.
They'll come in and say let medip the toe in the water and
build a relationship with you.
(37:36):
See you perform and we'll do itagain.
Speaker 2 (37:38):
Don't give that money to a stockbroker.
Put it in real estate.
It is go back a.
This is truly again I've saidit a couple of times but the
biggest hedge against inflation.
The volatility is low and whenyou look at cash on cash, I
don't know of anyone else thatoffers better returns than you
do.
Speaker 1 (37:57):
This product and asset class definitely provides
the best.
But what helps is the fact thatthe margins are so big From our
acquisition, design and thenbuilding, then an exit and
timeline.
Look how fast we're buildingthe gym.
Speaker 2 (38:10):
And that's important for you guys.
Ryan is headstrong andaggressive and I so admire that.
We've also said no to a lot ofprojects and I think that's
important.
There's strategy.
You've been methodical whenI've said, hey, let's look at
this, let's look at this.
These projects like Paradigmand Barn Caves again, for an
(38:31):
investor that's thinking aboutit, I couldn't think of anything
more safe.
Speaker 1 (38:34):
Well, man, I really appreciate it.
Thank you very much, man.
It's an honor to have you on mypodcast.
You're one of my closestfriends.
You got my back, buddy, and Ireally appreciate it.
How long did we go back?
Speaker 2 (38:51):
nine years.
Speaker 1 (38:51):
We started off by looking at a new construction RV
garage home that were at thetime like $380,000.
I'm so mad that I sold thatasset.
Everyone goes, ryan.
Have you made bad investments?
Well, I've sold assets.
I probably should now.
Speaker 2 (38:58):
Yeah, and it was something where we kept in touch
and Ryan's always spoke veryhighly of me and me of him, and
we kept in touch.
And Paradigm came across yourdesk and that's how it started.
Speaker 1 (39:12):
What would that house sell for now?
Just curious.
Speaker 2 (39:15):
I probably shouldn't tell you.
Speaker 1 (39:16):
Tell me, anyway, let me wear it.
Speaker 2 (39:18):
Probably $700,000.
Speaker 1 (39:20):
See, that was the same thing that what I just
mentioned, right, $700,000.
It's like when you buy yourfirst pad, whether it's in here
or your first home, what haveyou?
Keep it?
Rent it out, cash flow it.
I mean, what could I get forrent on that?
Speaker 2 (39:39):
Well that's, I can't afford to sell anything because
the taxes are so extreme.
So when you think again to beable to buy, you know, the
investment property that youjust bought, the tax incentive
that you're going to get forthat is insane.
That you just bought the taxincentive that you're going to
get for that is insane.
The storage units you know,ultimately to invest in a town
that number one is increasing invalue, increasing in population
, water supply, completely incheck.
(40:00):
I mean, things are only goingto continue going.
Speaker 1 (40:02):
I agree, I really agree.
So right on brother, Iappreciate you coming Thank you
very much.
Speaker 2 (40:06):
Thanks guys All right .
Speaker 1 (40:07):
So, eric, where can you know my followers, my
listeners?
You know, find you out.
Speaker 2 (40:11):
Yeah, Uh, at Eric Adelia is the handle for
Instagram.
Uh, our team is at the Havasulife.
Um, our expansion cities are atthe river life.
Speaker 1 (40:19):
So and if you're watching my social media, I.
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