Radio Boomers Live on eZWay Radio
Real Estate Investment Conversation & Celebrity Make Up Artist Dr. Glam on Carmelita’s Corner
Guest 1: Adrian Katke Key Featured Guest
I have kind of a cool story in that I moved out of my parents house when I was 13 and have been on my own since. I had a tumultuous youth growing up in and out of Juvenile Hall, getting my GED there and eventually turning 18 in CYA (California Youth Authority) or as it was referred to back then “Gladiator School” when I got out of Juvenile Hall at 18 i went and got a job in the mail room of large fast growing company. Fortunately I excelled at everything I did so I was quickly promoted to customer service, accounts receivable, accounts payable, sales, sales management and eventually became a brand manager for a retail vitamin line which I got into Whole Foods, Wild Oats, Savon, GNC and Vitamin Shoppe. The business had a 6 year trend of negative (18%) annual growth. In my first year as brand manager I reversed that annual sales decline and brought it back to a positive 3% growth. A 21% swing in one year with no marketing dollars. I rebranded the entire line all labels and products, I changed the labels and bottles sizes to be more visible on the shelf and I put a gold seal in the top corner of each label that was EN seal of approval. I rewrote and updated all of the technical literature and then I went on the road and did trainings in all the major stores teaching the sales clerks about nutrition and the Ethical Nutrients retail vitamin line. I focused on 2 products and 3 SKU’s of each product and carved out my space on the shelves. After that I worked for a startup owned by Charles Barkley and Shawn Elliot and again being the youngest person in the company at 23 I again closed Whole Foods, Wild Oats, GNC, Savon, Albertsons and Vitamin Shoppe flying around the country riding in limousines and hanging with professional athletes at tradeshows in Vegas. I even played a hand of blackjack with Charles Barkley and Michael Jordan. During that time I got a DUI and checked myself into rehab to avoid Jail. I got DUI’s when I was 14 I drove a car through a house, then again at 18, 23 years old. After that I got into real estate and set up an investment real estate brokerage with the Broker and Mastermind Bryan Reed that operated in CA, AZ, NM, TX, and NC. This was from early 2000 – 2005. We were taking California sellers and 1031 exchanging them from investment properties in CA leveraging them at 10-20% into appreciating markets. Mainly 2-4 units and brand new homes built in Houston, Austin, Dallas, San Antonio and Charlotte NC. We had the property management and everything set up for our investors including an in house lender so that the investor could invest across the country and have only 1 point of contact. I was doing 30-40 real estate transactions a month. That was a lot back then. It still is but it is more common now. At the pinnacle of the investment real estate just before the subprime market collapse I got another DUI and spent a year in jail. When I got a job working in the telecommunications industry doing lease negotiations for ATT which is where I met my wife and had an ah ha moment. My uncle took me to one of his executive retreats April 1st of 2008 and because of a probation violation I had to go back to jail but I got a work release program where I took 2 buses and a train to work every morning and my future wife would drop mea back off at jail at the end of the day. While I was in Jail I got the idea to start a debt settlement company and took that idea to the owner of the company I was working for because the infrastructure they had to do lease negotiations for ATT was perfect for debt settlement. The company CEO and founder Marc Anthony took a liking to me and said he would help me write the business plan and either we would do it or he would help me find someone to finance it. I found out in December of 2008 at the Christmas party that he had gone behind my back and bought a loan modification business which I could have told him was going to fail and tried to get the loan mod clients into debt settlement programs. I had also torn my ACL that year and was scheduled for surgery in January of 2009. After having surgery while on disability I opened my business entity in February, found a partner in March and gave notice to the company. In June of 2009 my partner lent me $77,000 and I turned it into a $5MM business in 18 months. I personally netted $2.5MM and paid him back $500K closed the business and invested in surgery centers opening 2 locations so that the company now has 4 locations and has gone from $1.5MM annually when I originally invested to doing $20MM with the same four stores 6 years later. I also started flipping houses in 2011. By 2012 I was married and had opened another debt settlement business that was also successful until 2015 when I closed it down in July, my dad passed in August and my wife left me 5 days later. I was trying to figure out what life was going to be like next and I ended up working for my uncles $20MM multi-tenant commercial, real estate fund in October of that year. By May of 2016 I had started my own $20MM real estate fund focusing on buying raw land rezoning and developing it to add value and get returns my uncles fund couldn’t dream of. In a area of real estate that didn’t directly compete with him either. Now we have 2 x $13MM projects building 31 x 2-4 bed, 2.5 bath, 1600 sq ft. townhomes in the Salt Lake City, UT. Area. I partnered up with a securities law firm out of SLC and a developer also out of SLC with great reputations and amazing contacts. Our first 2 projects will be completed in 18 months we are 6 months ahead of schedule and during this time property values have gone from $289K per unit to $450 per unit so our investors are making 125% on one investment and 182% on the other. And needless to say they are very happy. We pay our investors 8% preferred return on their investment during the time of rezoning and development our law firm and developer do all the work at our cost to produce the highest returns then we split the net profits 50/50 with our investors and that is working great for us. We have another 71 unit project we just locked up for our 1031 exchange clients and a $57MM, 350 unit project that we are working on in conjunction with the city to rejuvenate and old dilapidated part of Salt Lake City that’s a few blocks away from million dollar homes. The City Loves us because our law firm gets everything done quickly and has all the details in order they actually have given us complements which is rare for a city planner to do. And our investors love us also. Now I have gained a reputation for raising money and putting together great deals where people are making money so I started getting approached by all sorts of companies that are looking for funding. Some good some bad but I took almost 2 years of looking at deal after deal to find 4 deals that I can really stand behind and that all offer securitization of the investors’ money is collateralized in the event something were to go south but all the businesses have been in business for 2 or more years and are just looking for money to grow faster because they have big exit strategies and timing is everything otherwise these businesses would all be self-funding. Attached are the 4 deals.
Guest 2: Robert Moran Doctor of Glam Featured on Carmelita’s Corner
Dr Glam is the special guest on Carmelita’s Corner Monday Dec. 18. Robert Moran Doctor of Glam is depicted in this photo in the middle of Jo Hilton on the left and the legendary Margaret O’ Brien on the right. Dr. Glam has provided top of the line make-up , hair care to some of the entertainment industry’s biggest stars such as Mariah Carey. Tune in by calling 1-914-338-1303 by 10:20 a.m. Carmelita’s Corner is a segment of Radio Boomers Live which airs at 10:00 a.m. hosted by Jim Zuley and Reatha Grey of Betty White’s Off Your Rocker. on eZWay Broadcasting network