How To Minimize Risk With Real Estate Joint Ventures
But, we're gonna be talking about something quite exciting today that helps a lot of investors. And, you know, depending on your lender, certain structures can be a challenge. And obviously, if you're working with the the wrong legal representation, right, you're not gonna set yourself up for success. So
Milena Cardinal:Same with brokers.
Scott Dillingham:Exactly. So this is why I think this is so important that we discuss this and, you know, show everybody, like, what what the options are. So we're talking about navigating GPLP structures in real estate. So now, before we get started, I want you guys to know that there are so many lenders out there that do not support, certain entities. So what we've done in the past is we'll suggest the client, and you know what?
Scott Dillingham:I'll I'll I'll mention what it is, and then I'll have you ex explain it, Milena. But what we'll do is we'll have the client set up sort of a bare trust agreement. So then from the lender standpoint, they're able to close on the in the personal name, but it it does get pushed. And I'll let you explain that, but it allows the clients to have multiple lenders that they can tap into to access the best pricing. So
Milena Cardinal:why don't you absolutely.
Scott Dillingham:Yeah. Why don't you explain what the bear trust is and then we can talk about protecting the investor in just a different thing. So, yeah, let's let's start there. So what what's what's a bear trust?
Milena Cardinal:So really interesting question. So, so there are trust relationship in all kinds of structures that are used by real estate investors. So for example, in a joint venture agreement, if only one person is on title, to a property, the joint venture agreement will set out the trust relationship to say, this person is on title holding the property in trust for the joint venture. So sometimes even it's not even one of the joint venture partner. For example, I have deals where, even we've entered into a joint venture agreement between our corporation and a partner's corporation, and then one of us will hold the property hurt in our personal name in trust for the joint venture.
Milena Cardinal:So we use these trust relationships all the time. In fact, in in GPLPs, which is sort of like what we're gonna talk about a little bit, like, right after this is, oftentimes we'll talk about a nominee corporation to pull the asset. That's when the asset for the property is not held in the name of the GP, and it's it's it's held in the name of a trust corporation in trust for the g for the GPLP, for the for the limited partnership. And so what a bare trust is is a a a contract in which there's nothing else to the contract except for the trust relationship. Most of the time, we'll use a bare trust, meaning this poor trust agreement.
Milena Cardinal:It's very short document. In the case of someone holding a property in trust for their corporation or for another person. So usually a family member. So we'll use a a bare trust agreement for example in the case of, you know, common law partnership or or or brother and sister who are in it together and they decide they don't need their relationship documented, although I don't recommend that. But most of the time a bare trust will be used for the purpose of, of, severing the registered ownership and the and the beneficial ownership so such that the person that holds the property on title is not owner in the back.
Scott Dillingham:Yep.
Milena Cardinal:Yes.
Scott Dillingham:No. And that and that makes sense. And I think, like, some people, you know, hearing and tuning in, they might say, what the heck is GP and LP? So why don't we also start there and explain that, and then we can dive into really how this can help the investor out. So Absolutely.
Scott Dillingham:What did you see on Lendly LP?
Milena Cardinal:I've done presentations on, BearTrust and GPLPs in Lendcity. So if anybody wants to go a little bit deeper into the basics of how these things what what, you know, what the words mean and how these things are set up and what what it actually represents, in the day to day of how that setup together with the with sort of like, added like a slideshow presentation for these things. So please go and view these videos and come back to this one. But, yes, the gist of it is, at the core of it is that there is an when we talk about a GPLP, we're talking about a limited partnership. So why is the word limited?
Milena Cardinal:Because at its core, it's a partnership. It's a it's people coming together to do a thing. Right? So it and it's it is a form, recognized by law as having certain criteria and certain, benefits and, and responsibilities. So a limited partnership, the word limited refers to the level of liability of the partners.
Milena Cardinal:So a limited partnership limits the liability of the partners except for the general partner. And if we enter into say, Scott, you and I enter into a partnership or say, the 2 of us are gonna you know, we're gonna start a business together and we're gonna do it through a partnership. We're gonna be both just as equal be liable for the business. Right? In a in a limited partnership, the partners are don't have liability except for the general partner.
Milena Cardinal:So if you and I enter into a limited partnership and you bring cash and I do the work, I'm gonna be the general partner. I'm gonna shoulder all of the liability for the project, and you're just gonna bring the money, get some benefits from that money, have nothing to do with the management, and, you know, reap the rewards without any of the liability on your shoulders. But the flip side is you won't have much of a say. That's really the gist of a GPLP. The main benefit, and we talk often about a GPLP, colloquially, but really at its core, it's a it's a limited partnership.
Milena Cardinal:That's the important piece.
Scott Dillingham:Yeah. So if I'm hearing you right, the GPLPs is is absolutely designed to protect the investors in certain cases. Is that right?
Milena Cardinal:Absolutely. It's it's basically saying, if you, investor, don't have much to say in the day to day of the project, we're gonna strip all the liability off of you, completely shield you from the liability, and put it all on to the, managing partner, the general partner.
Scott Dillingham:Okay. Okay. So that's great. So I'm gonna I'm gonna ask you the question, but from the opposite end. So then, what what do you see as the biggest risks for investors that are wanting to partner together.
Scott Dillingham:Right? So then, we can visualize and we'll be able to see how these types of structures will help.
Milena Cardinal:Absolutely. The biggest risk, well, is to not have the documents drafted properly. For example, there are situations where, the general partner also owns units as an LP, while those units are therefore not protected, the general partner, because it is the general partner and has a managerial role, will not be protected from liability. Also, the there there are certain, aspects of of risk for the limited partner because the limited partner doesn't get much of a say which which at its core is is typically a good thing because then, the the the limited partner is protected from liability and also doesn't have to do the work. On the flip side, the limited partner therefore has a limited involvement in the decision making and so it's putting a lot of power on the general partner.
Milena Cardinal:So I would say one of the risks is not vetting the general partner properly, and, not, you know, the a joint or GPLP set up with a with a general partner that is, not knowledgeable enough and and, not able to take the project to its conclusion is is risky. I oftentimes, when I have clients who want to buy units in in GPLPs or LP. I recommend that the people behind the project.
Scott Dillingham:Yeah.
Milena Cardinal:And, yeah. Those are some of some a few of the items that I can think of offhand. The and then there are also, like, the mortgage implications, which we'll talk more about.
Scott Dillingham:Yeah. No. Absolutely. And then so just to, like, really showcase your value, really, I mean, what are some some additional risks? If say somebody doesn't go to somebody like you that has experience in this, they're like, oh, we just wanna join venture.
Scott Dillingham:Like, what have you seen or what are some horror stories that maybe you could share, right, to really outline why somebody who's listening who wants to protect themselves and partner in real estate, why, like, your services would be so valuable?
Milena Cardinal:Well, thank you for asking me that. I'd say there I'd say if a lawyer takes on the responsibility of creating a GPLP for a client, typically, they have the know how to create the GPLP, but not all of them are gonna be real estate investor focused. One of the things that I've seen is, having an an overly complicated LP agreement, which an LP agreement, it's kind of like a will. You know? It's it's one of those documents that will be heavily legal easy, really hard to get around that.
Milena Cardinal:Oftentimes, investors will be turned off if they're new investors in real estate. I I mean, investors that have been, passive investors, will be turned off by the complexity of the documents. So there are things that we can put in place to really help, to help provide that comfort to investors, make sure that they are completely protected from a legal standpoint and not, turned off by the documents. So one way that we do it, is that what we recommend doing is having especially with people who raise capital with a lot of investors is having the LP agreement vetted by another lawyer paid by the the the people who set up the project. They re they then retain the services of the other lawyer to work only and completely independently for their investors.
Milena Cardinal:And, and then because the agreement is pre vetted before the LP is even registered, then there's not the issue of having all of the passive investors, each having different lawyers wanting all of these different changes and then sort of, like, getting lost in the negotiations, and then having to reregister the LVP with the changes after the fact. Yeah. So it's bridging the gap between the legal lease protection. We wanna make sure that the agreement is properly drafted, of course, that everything is is copacetic on that front. But on the on the other hand, there's a side of it that's we need to make the deal work.
Milena Cardinal:We need to make things to make things easier for the people involved and and, provide comfort to the investors in a way that's not, that's not, I know the right word is here, but that's not, like, debilitating for the project, if that makes sense.
Scott Dillingham:Yeah. No, absolutely. And I'm curious too, because I always hear different things. Right? But what would you say?
Scott Dillingham:Maybe there's not a magic number. But is there a magic number of properties that somebody should own before you you think they should set up the GPLP structure? Or would you say, look, this is your very first partnership deal, like, do it then? Like, what are your?
Milena Cardinal:I think it's project based. It depends on a lot of things. And it's for the main reason people will do a GPLP because it is a much more expensive setup than, say, a JV. Not as expensive as an MST or REIT or something like that, but it is an an a more expensive setup than, than a j a joint venture agreement or a simple corporations with the share with the investors owning shares. Right?
Milena Cardinal:That's also a very simple setup. Because of the because of the cost, the project has to support it. So if someone is buying a duplex for, you know, a $1,000,000 and is raising $300,000, maybe $400,000, it's probably not worth it. But where we hit a wall a lot of the times is, when it comes to the source of the down payment and, wanting to protect our investors from the responsibility of the mortgage because a lot of the time from what I understand is that the lenders will require, if the proof of down payment is from an investor, then they have to sort of, like, vet this investor and bring them in as a party to the mortgage. So I wouldn't say, it's a matter of number of deals or number of properties.
Milena Cardinal:It's more a matter of the type of project. I've certainly seen, you know, new investors who've never done real estate before jump in feet first into a large development project. And you know what? Sometimes it works. Right?
Milena Cardinal:Sometimes these are people who have, put in blood, sweat, and tears for years to learn the craft and to get extremely well knowledgeable. They're properly coached. They really know what they're doing. So, yeah, their first project may very well be a GDL team. In other cases, people jump in without the the the know how and the wherewithal, and then what ends up happening is that the project tends to not go through.
Milena Cardinal:And, raising capital, it makes it very difficult to raise capital. So I've I've seen both, really.
Scott Dillingham:Okay. Nice. And I I know you talked about financing there for a minute, so I do wanna touch on that a little bit. So you're you're absolutely right. If if we're presenting to a lender or a bank, a down payment from somebody who is not on a residential application, so I'm going to highlight and quote air quotes, residential.
Scott Dillingham:They need to be added to the deal for the down payment to work. With the exclusion, we do have one bank. And and you know what? May maybe there's more. It's just one bank because we we've called them all and one is confirmed that they don't actually need the JV partner to go on as long as the money that they're using for the down payment was transferred from an entity to the entity that's closing the property.
Scott Dillingham:So that's pretty cool. And then also and this is the residential side. So the beauty of the residential side is, you know, best rates, no fees, that type of thing, unless you're you're dealing with a b lender or a private lender, of course. But then on the flip side, and a lot of people don't know this, is you can get a commercial mortgage on even a single family home. And going with the commercial side of things.
Scott Dillingham:They welcome this, they understand the partnerships, they understand all of this, and it's not a problem. So we often will use the commercial style mortgage in that case. Now the downside is, of course, with commercial, there is gonna be fees. Rates are still pretty competitive. But then you could set up
Milena Cardinal:1 1a half percent more typically, something like that?
Scott Dillingham:Well, like, okay. I'm not I won't say the lender on here just just because, but the residential rate was 4.89 and the commercial rate was 5.29. So it it wasn't that much.
Milena Cardinal:Yeah. Not not that much of a difference. Yeah.
Scott Dillingham:But the
Milena Cardinal:rent And
Scott Dillingham:you got the fee. Right? You got the broker fee because even though this lender is a lender that we use on residential side, when you use them on the commercial side, they don't pay you. So they'll pay us on the residential side, but not on the commercial side. So then we have to take yeah.
Milena Cardinal:We we gotta put this issue to bed because this this residential versus commercial, every it feels like every layer has a different definition. So as lawyers, for me, commercial versus residential is purely use of the building. So a 27 units that are all residential is a pure residential building. But then when I have, say, a 27 unit where there's 5 units commercial and 22 residential, that's a commercial building because there's commercial use in the building. Technically multiuse, so in my work, I will treat it like a commercial building.
Milena Cardinal:But my understanding is based on look at it like that. Right? When you say commercial, the most of the time we're talking about 5 plus units even if they're all residential.
Scott Dillingham:Yeah. Nor normally, yeah. So, like, it it is different in the lending world because as an investor, you're right. If I'm looking at a single family house, that's residential. Right?
Scott Dillingham:If I'm looking at our an apartment building, that's commercial. And and that's what how a lot of people think. But what's changing, and it's really unique, but what changes is the underwriting policies. So from a bank, if we're going commercial, and most of the banks have it, I don't like necessarily going to the banks on the commercial side because they have higher debt coverage ratios they're looking for. But if we're approving a deal on the commercial side, they're looking it shifts.
Scott Dillingham:So let me take a step back. On residential, it's, I'm gonna say probably 90% the borrower and 10% the property. But if they're using the commercial underwriting guidelines, they're making sure the property covers itself. And so that's more, I'm going to say probably 80% all about the property. And then it's only 20% for the borrower.
Scott Dillingham:So we have literally got people that do not have a job and I'm not joking. No job. We get them commercial financing on small properties But they couldn't do on the The property shares itself? Yeah. Because it carries itself.
Scott Dillingham:Exactly.
Milena Cardinal:Got it.
Scott Dillingham:Exactly. So Oh,
Milena Cardinal:it's really cool.
Scott Dillingham:So but most people don't understand that or or know that brokers, lenders, that type of thing. So they don't suggest that as an option to their client. But, but yeah. So that's exactly. So if we're doing the commercial underwriting, then we can tap into partners and all of these things.
Scott Dillingham:And the GPLP structure is welcome everywhere. But you throw that into a residential deal and they're like, what the heck is this? Right? It's it's Yes. Just different.
Milena Cardinal:We should we should have another one of these to talk about the different ways of qualifying because I'm starting to get into the world of, qualifying based on net worth. Right? Because real estate investors, most of the time don't have 9 to 5 when they've reached a certain level. And I've been self employed for now a decade and a half and it's it, it's always been a challenge to qualify for mortgages and self employed and I've had to keep my income really high right on paper to continue to qualify because I'm a real estate investment. So the flip side of this, the taxes are through the roof.
Milena Cardinal:So, I don't wanna derail our the topic of our time today, but I'd really love to have a deeper conversation about the different ways of qualifying and help guide people to make decisions related to their 9 to 5 jobs, how to transition from that. And, and once you do transition to a full time real estate investor, how much do you, you know, have to declare as income? Do you need to declare anything as income?
Scott Dillingham:No. I I agree. So, yeah, we can absolutely speak about that. I I think it is important, and a lot of people don't know. And when we start talking to people about that, they get very excited.
Scott Dillingham:So just to wrap up this thought, again, remember that it's based on the property. So if somebody does wanna buy a single family house and run it through commercial, right? If it's a $200,000 house in Thunder Bay, right? That might just work. If it's a 1,000,000 and a half home in Toronto downtown, probably not gonna work.
Scott Dillingham:Do you know what I mean? So it's it's at 1 and a half 1000000 purchase price. It's not gonna cover with single family rents. So a lot of the investors, they don't understand that that, you know, the lenders, the down payment. Yeah.
Scott Dillingham:They might have a 20% down minimum. But they might come and say we need 46 and a half percent down because that's when this property covers itself. You know what I mean? So that's the only thing Mhmm. Yeah.
Milena Cardinal:Makes sense. So when we use GPLPs that I've typically, what I've seen is GPLPs are gonna be used for either development projects or for large multifamily. That's that's where I've used it the most. Or, commercial settings like hotels or that sort of setup. And so what are your thoughts on, on when it makes sense sort of like as a threshold to use a GVLP?
Scott Dillingham:Yeah. So I mean, I I think you nailed it kind of already when you said it it does depend on the project. Because, like, we'll go back to the single family house. Why would you set up that type of a process and that thorough of an investment vehicle, on a single family house? Right?
Scott Dillingham:I don't know if that makes sense there. But I I do agree, like, on the on the larger projects, absolutely. You wanna, protect yourself and again, limit your liability. And it's especially true because look at a development property. Right?
Scott Dillingham:You're giving the money to the developer in hopes that they can complete the project. But what if it stalls? What if the cost overruns they didn't analyze properly and they have all these expenses. Right? And they run out of money and they can't complete it.
Scott Dillingham:The lender comes after them. Right? So you you wanna separate from that especially if somebody needs to be, in my opinion, heavily heavily involved because the success of the project depends on that GP. And you've already stated that people should investigate who their general partner is, and the strength of them, right, just to make sure the project can come to completion. So in those cases, absolutely, I I I like the structure, but if it's a smaller house, like, you see people now that they can't afford a house.
Scott Dillingham:It's it's so much money. So you're seeing people, there's even local mortgage companies to us that are, like, setting up kinda like these virtual not virtual, but, like, date nights where buyers just come in and they meet each other and they don't even know each other and they buy houses together so they can combine their incomes. You know what I mean?
Milena Cardinal:Yeah.
Scott Dillingham:Yeah. So it's different, but you wouldn't set up a GPLP in this case. You know what I mean? So I I do think it depends for sure on the project.
Milena Cardinal:And most of the time, the question I get from clients is, hey, I'm buying this project. I found this great deal. Should I set it up as a GP? Sorry. As a as an LPGPLP structure, as a joint venture, or as a corporation with the investors being shareholders.
Milena Cardinal:Right? That's the question I get most of the time. And by the way, this really typically only comes into play when people are raising equity. Because if they're buying the project themselves, they don't need LPs. They don't need, you know, passive shareholders, and they don't need a joint venture agreement.
Milena Cardinal:So but what what what to piggyback on what you were saying about risks of the project is it really derisks the project when your investors have equity. And oftentimes for the private investors too, for the the passive investors, it's a they get a better deal. They get a be a bigger bang for their buck in the long run. But oftentimes, they don't get the same level of cash flow. So kind of, it's kind of a a process up and it really depends on each individual investor's, comfort level with different structures.
Milena Cardinal:But yeah. So the question that I get most often is how do I structure this deal? Do I structure it as a core, as a JV, or as a GPLP? And the majority of the time, the deciding factor is their ability to finance the project. And if the project is of a certain size that we might recommend the GPLP, Usually, it's because of, the recognition by the by lenders, especially CMHC lenders of GPLPs with without having to have the, individual LPs qualify.
Milena Cardinal:The LP itself qualifies. Like, the partnership itself, will will guarantee the mortgage, but not the individual investors and the background. That's my understanding anyway.
Scott Dillingham:Yeah. No. I I agree fully. It's it's just yeah. It's a really interesting topic because every structure is different.
Scott Dillingham:Now, would you advise for those, you know, listening, say, say, I invest in project day, and it's going well. And then the same GP as project B, and I want to invest in that, would we alter the original GPLP to include that like a blanket one or would you recommend setting up another entity for a second project?
Milena Cardinal:Interesting I think it would be a case by case basis. Usually the LP agreement, at least the way that I draft them, have flexibility in them and might say the purpose of this project is to do x y z with this property. But usually, there's any other you know, we add something like, any other project that the GP teams fit can be in this LP. So in a scenario, I'm trying to think of a scenario, in which, you know, a a GPLP gets set up for project a, project a comes to completion or is sort of like midway. And now the question becomes, you know, we have project b.
Milena Cardinal:Do we create a whole new structure? Or do we repurpose structure, that we use for project a? Every single LP, you know, and I'm not necessarily talking about from a legal standpoint. From a nonlegal standpoint, yes, the GP could make the choice based on their, their based on what's in the contract. But typically, the GP would have the authority to do that.
Milena Cardinal:The the, the risk is frustration by the investors. Right? You don't wanna have a wave of investors getting frustrated and pulling their money. But the other thing is you're basically gifting a piece of the pie to the existing investors. If, but, it doesn't mean you know, what I how I would probably approach it if there was an option to do that, especially if there was a very similar project, would be to have a meeting with my investors and say, hey.
Milena Cardinal:Like, we have 2 options. We found this gorgeous project. Sorry about that. We found this gorgeous project. We can either, a, create a whole different structure and raise capital in that structure, or we can raise the capital inside the LP that we currently have, bring in, say, another half a $1,000,000 and then everybody, all of the LPs or the whole LP owned sole project.
Milena Cardinal:So you would get a piece of pie in both. So absolutely doable. Very rarely will I see that though, especially, since the lender in project a would probably have to approve of that. And the lender in project b would then have to vet both project a and project b. It's kind of like if you have multiple properties in a corporation and you wanna refinance one of the properties, the lender's gonna wanna know all the details for all your properties.
Scott Dillingham:Yeah.
Milena Cardinal:That's been my experience anyway. Yep. So yeah.
Scott Dillingham:So Okay.
Milena Cardinal:Both time not advisable, but certainly doable from time to time. Yeah.
Scott Dillingham:Okay. Yeah. And I'm just trying to come up with questions that I can think people having and, one, like, I had an example of this. So I have another question for you. But like, this past week alone, we had a client that, did a purchase, but it's closing in an entity that's not set up.
Scott Dillingham:Now the lender, wants to see that entity set up now. They don't want the client to remove financing condition, and then it doesn't get set up and it just screws things up. So the lender's like, we want this now. So the client spoke to their lawyer, and it was gonna be a 2 week turnaround time to set this up. So Really?
Scott Dillingham:Yeah. So then the client ended up saying, like, that's way too long and they call another lawyer and they got it done, like, right away. But how What
Milena Cardinal:kind of entity? Like, just the new corporation?
Scott Dillingham:Yeah. Just a holding company. Yeah. I couldn't believe it myself. So I
Milena Cardinal:mean, I don't I don't know. It depends on that, you know, what that Laura's bandwidth is at that particular time. Maybe they're working on an unusually complicated matter and just didn't have the bandwidth to do it. I mean, there's still work involved in doing that. But Typically, we turn around operations in a couple days.
Scott Dillingham:So GPLP, let's say, you know, we we have a project, we gotta set this up. How long would you think that that would take on average? We won't hold you. But
Milena Cardinal:Spirit of full disclosure, I'm actually working on one right now that I was really hoping would get done in a week. It probably will take 2 and a half when it's all said and done, because, there quite a few moving pieces. We have to draft the LP agreement, which is, like, 80% of the work, but then we also have to draft subscription agreement. There's all these forms that need to fill out for all the individual investors, then we have to collect the funds from all the individual investors. There's all kinds of stuff that the individual investors have to sign and that have to be drafted for them.
Milena Cardinal:Also, we have to actually create the GP corporation. And most of the time, then we start talking about, is there gonna be a nominee corporation or trust corporation for the purpose of holding the property? And then, we also have to discuss how the GP is held. Right? So if you have 2 partners and a GP, now we're talking a shareholder agreement to decide between those 2, business partners how they're they're how that's going to look between them for the ownership of the GP.
Milena Cardinal:Are they gonna hold it through holding companies? Okay. Well, maybe the holding companies need to be created. So there's a lot of layers involved. It's typically not like like, oh, we need a new car.
Milena Cardinal:Are we even even a JV? A JV is pretty simple in comparison. So, even two and a half weeks, I think, will will be a record for me. But, but, yeah, it it certainly takes a little bit longer. The trick is to get the name of the LP because, because, then the real estate closing documents can be prepared.
Milena Cardinal:Yeah. But a lot of the times, if they're getting a lender to purchase the property, that can also delay things because if in in the same example you just gave, that happens a lot, that the lender is going to want to have the the entire structure set up, before they approve the mortgage, before they even send a commitment. So that's what I've seen. So even after that two and a half weeks is complete, call it 3 weeks. Give me a couple more days.
Milena Cardinal:I'd say 3 weeks is probably a good timeline to have the, LP set up and all of the ancillary contracts set up. But even after all of that is done, then the it has to all be approved by the lender and to go through the financing process. So then it's probably and and given the size of the project that we use GPLPs for, probably looking at another month before we're ready to close.
Scott Dillingham:No. Absolutely. And I think the hard part, and I just wanna put this out there for those that are setting up these these partnerships, because I've seen it so many times where, you know, say there's 3 or 4 people involved. You know, you might have one that responds really quickly, but then you have others, you know, they're on vacation or they're here, they're they're there, and it's it's so hard to get them together to sign the the paperwork. Even though we're sending it to them electronically in some cases
Milena Cardinal:Yeah. It's still That's also why having the mindset of how do we make this work always is good because what I do in a situation like that is I'd have, like, okay, give me, like, one phone call where everybody shows up, and then let's talk about this because we don't have to name everybody on everything. There are ways for people to sign a resolution that says, I'm authorizing the president to sign all the documents that are needed for this. And then the president is the only person that needs to show up to meetings, the only person that needs to sign documents, and and then the president of can then report to their team about the status of the project without the lawyers and the brokers and and and others being sort of bogged down and preventing the project from moving forward. Absolutely.
Milena Cardinal:So talk about, like, mindset of, like, how do we make this work?
Scott Dillingham:That's it. I love it. I love it. So awesome. So we're we're gonna get wrapping wrapping up because I know we kinda set a a timeline here at the beginning, but I think, this is very important.
Scott Dillingham:And and I know because we always track, like, the replays and stuff. So I know there's gonna be lots of people, watching this. And I think that this is a very important topic, right, to minimize risk and make sure you know, you're protected. But I wanna really outline that, like, Milena said, working with someone who works and specializes with working with investors, who also sets us up like Milena, I think is super, super important. You wouldn't go to, you know, you wouldn't go to a doctor for a problem with your with your knee when you need a physiotherapist.
Scott Dillingham:You might need to get the referral, but, like, they're not the ones that do it. Right? So you same thing here. You wanna go to the expert. Giving you guys that referral.
Scott Dillingham:Do you wanna reach out to Melena?
Milena Cardinal:And did it for mortgage brokers. Right? And and it's the specializing, and then it's the the the, willingness to be to be collaborative. The humility to be collaborative. Right?
Milena Cardinal:My my understanding of mortgages is limited. My understanding of taxes is limited. So if I refuse to work with your accountant or your accountant refuses to work with me, it is such a disservice. And at one point, it will bite you in the butt. So it is the same thing with mortgage brokers.
Milena Cardinal:Your your power team should be willing to work together and and not make you the middle man all the time. Right? So that's really powerful thing for me. That's why it's actually one of our core values is collaborativeness because, because of how detrimental it is when that doesn't happen.
Scott Dillingham:Absolutely. Well, that's awesome, Lana. I I really appreciate you for coming on here today. I think this was this was great. And, yeah, looking forward to the next one.
Milena Cardinal:Thank you. I agree. Me too.
Scott Dillingham:Take care.
Milena Cardinal:You too.