Investor Strategy Call – August 29, 2023

Hi, Natu. How are you doing? I was on mute. Good afternoon, doing well. How’s it going with you? Good good. Thanks. Yep. No, awesome. I’m always happy to work with you. I’m happy. I’m having fun. I have no complaints here. Yeah, me too. Me too. Thank you. Good stuff. Hi, Kumar. Hey, Joshua. […]

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Hi, Natu. How are you doing? I was on mute. Good afternoon, doing well. How’s it going with you? Good good. Thanks. Yep. No, awesome. I’m always happy to work with you. I’m happy. I’m having fun. I have no complaints here. Yeah, me too. Me too. Thank you. Good stuff. Hi, Kumar. Hey, Joshua.

How are you doing? Okay. All right. Really? I’m the only person here. It looks like you are. And so make the most out of it. That’s true. Yes. Yeah. So I send the mail. So I got a rip. Oh, let me share my screen. Yeah, let me allow the screen to be shared on. Yeah, you’re good. Okay, cool.

Marketing campaigns.

Did the load more statistics? Not bad, right? So the open 67 people open thing is pretty good in my mind. It’s very but yeah, so 11 percent hard bounce back, but it’s not bad. Comparably, it could be better though, but yeah, so we deliver 40. So I was thinking maybe I should increase maybe.

Yeah, let’s increase it. And then and we’ll do, we’ll add just one follow up one follow up. Yeah. Let’s add one follow up and so then, but then no responses though yet. And then you sent this one. I started a 3 day 3 days ago. Okay. Okay. I’m sorry. Let me check the something. Let me go to send the schedule.

So we did except Sunday. We did Saturday. Then we did a little bit today. Okay. Okay. Fair enough. Yeah. I almost regrets. The sun Saturday because maybe because we sent it on Saturday and then they weren’t there. Yeah, that’s right. Yeah. That may be the main reason. Yeah. Yeah. Yeah. Agree. Agree. Do you want me to increase the volume?

Maybe batch quantity 30? How many? Potentially. How often have you sensed over, like, how long have you been running these your info at BraveLineM& A? How long have you owned that email? And have you, how long have you been using it? Beginning of this year. Yeah, you can do it. You can go a bit crazy. The only reason why I said at first I was skeptical is because if it’s a new, if it’s a new email, then you get blocks, but because it’s not that new, you can go, you can get go crazy.

So let’s go a bit more aggressive. We can double the output at least. Okay. All right. But if we’re doing batch, so we want to lower the batch quantity, I think, because we want to have it because if we’re saying we have 400 and then we’re dividing it by 30, then it’s going to be, less emails, right?

Okay. So we want to make it smaller. I believe that we have to make it smaller, right? Okay, like this was before previously 50. So I was thinking 20 winning. I’m just thinking loud but again because the higher it is the more because then we’re doing more We’re just dividing the recipients by the batch quantity.

So that means that we’re going to send less emails in more chunks But do you want to send? You’re saying on the other way Like that. Yeah. Yeah. Because if we want to send more emails in the quicker amount of time, we want to have a small batch. Got it. Got it. Got it. I got it. Yeah. All right. Okay. What’s 15 now?

10? Maybe we can go 8, 9. Let’s see how much it goes on. Yes. Yeah,

that should be good. Okay, because if you have the batch quantities, then yeah, you have more sends out more emails will be sent out later. So that’s good. Okay. I can save it. You said how do I add another follow up email? Yeah, it’s a bit annoying with it. So then to send a follow up email. The only way is to go to that place where you saw the emails that are sent out.

So then if we go back to that 1st list. This one. Yeah. You know when you said 11% hard advanced and, oh 7%.

We go back marketing emails. Oh yeah. Campaigns. I’m sorry. My bad. No, it’s all good then here, like this. Yeah. So what you can do so then click on load more

and you can export. And when you export you can, we can just manually resend it. So that’s one way of doing it. Yeah. What is other ways, any way that we can create like a, some sort of like the

automation. So it won’t be a marketing email, be an automation. Not able to do it. Say again. Are you not able to do it or I’m able to do it? You can do it. You can do it. Just like the only thing is that you have to change how we’re doing it. So instead of what’s just sending the email via the marketing button, you will have to use the automation and then we have to add the tag.

And then send another email, so it’s a bit of a pain. Oh, okay. So what we can do, we can just, I think, manually send it would be better. Okay, we export that. Okay. What we can do, we can have a tag so that if anybody was emailed by you, we just send another email. That’s one automation we can have.

Okay.

We’ll put what we do right now. So we, I export that and add another outreach. Is that what’s going to happen? Create a campaign. Yes.

Reply one. So we can do that or another way of doing it and continue what you’re doing or we can just go to conversations and then, I remember that conversations menu. Remember how you go to conversations on the left, this one on even more left. Left of the screen left of the more left.

Yeah. So conversations. Okay. Yeah. Yeah. Because you can actually choose to let’s see. Recents. Let’s go to recents.

You said, what is it? Recents. Okay.

Okay. Okay. I’m just seeing calls. I’m trying to find an email that was sent. Yeah, because

what’s supposed to what we’re supposed to see is if we can see the emails that are sent, then we will just be able to reply.

Manual elections. That’s good work reasons with those latest manual,

that’s loud. Let me just cut that out. No.

Yeah. Anyway, so it’s not showing up in conversation. Yeah, we can just send another campaign and then just say, oh, hey okay. When we’re so it’s in another, a nice follow up message. Let me look at my templates. Okay. But a nice follow up message to get them to take action.

Communicating with investors.

So you’re pretty much saying, Hey once you had done that thing, export that part and send the message like a regular PSA. So that it’s just a follow up message. Yeah, exactly. And I’m just digging up the template. Yeah. So something to say, just something real simple. I just had some. Because I can’t, I can have, we have follow ups for LinkedIn, but not many for email. So 1 thing we can say is 1, just making sure that’s, you can just say the typical, just making sure you saw it, but that one’s not that good when you use it. You can also say, I’m just following up on the research that we did about your firm to see if.

Something like this is something that your firm is interested in, or I’m just following up to learn more about your firm. So just make it always about them. And then that’s the only way that they’re going to take action. So I’m just following up because we did research about your firm. Just as long as we mentioned research about your firm.

Then that’s because they’re just self obsessed. Okay, I’m just following up on the research we did about your firm, or we just following up because we went through your firm’s website, or we went through your firm online again, and I just had some questions. Would next week be okay? Or would this week be okay to see if we can find something that is what you’re looking for?

Can we see if we can help what your firm help find a type of deal that your firm is looking for? And so let me just type it out. Okay. All right.

Yes, it is something like,

okay. Okay. All right. Real simple. Yeah, just something like this and we can use that. Yeah. And let’s not over. Yeah. And let’s not overcomplicate. So we can just do maybe every every twice a week or once a week, we can get. Then we can get somebody sending this message to everybody who only got one message from you.

So then that’s the real. So then you can just say as we go along, we can do this. We can just say every Monday and Wednesday, send this message to everyone who got.

So then let me just share the sheet. Oh, good.

Brave

line m a dot com. Yes, that’s right. Yep. Okay. So we send this over. Thanks. I appreciate it. No worries. And any more questions before I do have a question regarding to a numbers. So I was going back and forth with this company the the senior care facility. I think there’s a chance they’re coming out of 4.

8 to 3. 8 million range. Okay I, it was just, I want to see the if we come on 3. 8, what would be the cap rate and how much I can produce based on that. So that’s what I want to know. Let me see. So tell you this, we restructured a few things. Yeah, we have, dr. Gogo on the call, and he’s a brilliant with the numbers.

And then, but if you want to go like deep into it and back and forth. You can actually just book matter directly, so we have a way where you can put, the way you can book me can also book matter directly as anyway, you just choosing to drop down to him, but then but doctor can go in into it right now because he’s the one who’s trained on a CFA and you can ask questions.

Okay. Yeah, let me see if I can get a financial analysis a little bit higher on the up and running. So give me one second, unless other people have questions. So that one is the obvious, the expenses piece. I have the income piece, and I’m trying to get the expenses side. And so while that’s loaded up Edmund, you have any questions and how’s everything going? You’re here. Yeah, I do have a question relating to legal and compliance. So up until this point, I am. Partnered with family office investing into development, real estate and developments project.

So we so I have a simple coal advisory agreement. It’s essentially what we charged. What the family office end up charging the developer. I’m taking a split off that. I have a new I’m working on a new projects and this 1 is not with the family office. I’ve connected them to a investment bank.

This particular investment bank however, does not do any fee splitting agreement with a consultant like me. And. The developer still agrees to, he want he wants to make sure that I am paid to do all the work. But so right now we’re just thinking, okay, can we have a consulting agreement with the developer rather than the investor side?

And I remember something about I, if. As a consultant, I cannot take any performance base commission, or that might be illegal. I don’t know if it’s compliant if I end up having a agreement with the developer, rather than the investment bank. Yeah, good question. I’ll do my best to answer it. And the disclaimer is that I’m not the registered attorney or anything, but it’s practical.

A few ideas. If are they doing it as a fund with a GP LP already doing something else? The developer, yeah, yes they have they’re raising some of their own money as a LP money to bring in. And they are also raising money through the investment bank for the large amount. Thank you. Okay, so my understanding and what we usually do is like we get people like you to be co GP, where you are able to so if you were to negotiate something where you will be a general partner or a business partner or somebody with.

Interest into the general partnership then that could, you could fit underneath that exemption potentially, because then that means that you’re you’re part of the project. It’s let’s say me and Joshua Gogo had a software business, and then I’m trying to grow my software business, and we raise money for a software business.

If Josh was a 50 percent equity partner in a software business, then. It’s not, he’s not just a capital raiser. He’s part of the business. So I think similarly, a lot of ways that people go around it is that they just try to negotiate or be like a co GP. And then that’s the only deal that they’re focused on.

And then whatever compensation scheme they have is really in between the. GP, and then the other GPS, but then it takes, they have to write it in the LPA and in the operating agreements and any, but if I do become a co GP, then I’m also I’ll be liable for, whatever that take on. Okay, but potentially maybe not.

It depends on what lenders you have, but you would have unlimited. Usually you would have unlimited liability. So that’s the downside. Okay. Okay, I’m just, thinking out loud because I rather just be a third party consultant, with a deal and okay. All right. Got it. Okay.

Yeah. Something to think about. Thank you so much. No worries. And a few more ideas. Some people, what they do, they end up just being a consultant, but it’s a bit more dangerous. They’ll pay themselves pro rata. Where they would make it seem as if they’re not getting paid the cash up front, but they’ll make it seem as if they’re getting paid the cash over a longer period of time, but it’s more risky because you’re not getting the cash up front and plus.

Yes, you can actually still come after that. So there’s a risk, but yeah, some people do that. I don’t really recommend it. Those are some other ways. The last way is you can partner with. You can just partner with another exempt market dealer or sorry broker dealer or dealer.

Okay. Yeah. Or anything and then you can just take money out of closing of escrow with that broker dealer. And then if you find a broker dealer that agrees with you on doing that, then you can collect your fees that way. So those are some ideas. Okay. Gotcha. Great. Thank you so much. That’s very helpful.

No worries. Cheers. All right. Shamar, did you manage to find your information? You’re on mute though. I see you’re speaking. Yes. Give me 1 second. Yeah, I’m still trying to find this. Okay. I think I got it. Okay. All right. All right. Let me share my screen. So Mr. Google can help me out here. Can you see my screen?

Yes, I can see it. Can you make, is it possible to make it a bit bigger? Yes. Okay, thank you. How about now? Yeah, that’s fine. Yeah. Okay what’s happening is this is a senior capacity. They were able to raise the rent and they’re coming around 943 per year range. Now. I turn it down. They ask 4.

8. I thought it was not worth it. Then then they came up with all these things, numbers. Now, so this is the 2023 numbers. Medicare, withholding, something’s not ending up, accounts payable,

yeah, long term liabilities. This is what they have yeah, payroll liabilities 4, 000. So

what was the question? Question I have is I want to see whether it’s worth is that 3. 8 million deal is actually a worth on the numbers wise. So this is the their payroll. For this year, 943 931 somewhere on that range. I’m trying to figure it out there. Where’s my give me 1 second. I’m still looking at to find that

expenses piece.

Your question is whether these expenses too high or on it. I don’t. Could you please clarify the question? Yeah. Let me show you, he did an investment analysis and this is where I want to get the answer out of this. So this is their payroll for last 24 months, not last 12 months, I’m sorry my bad, 24 months.

So the, so depreciation expenses, interest expenses, is those are adbacks? Actual end bags.

Is that a question? Yes. Why are those, again, I guess what I’m trying to get at is who, what, whose expense is this? Is it the, this is a seller’s expenses, right? So this is the profit and loss statement for March 31st to March 31st on 2023. Okay. March 2022 to 2023.

And the entire property is what, 38 million, you said? No. Entire property. They were asking. So they asked 4. 8 million. Then I said, no, you’re not going to sell it 4. 8 million. So they came back and said, okay, we will consider the number. And the number they consider was 3. 8 million. Or at least they’re considering 3.

8 million right now. I’m still bargaining. I think we can go for 3. 2 or 3. 1. Okay. So that is the asset price. That’s the business plus the asset. Yeah. Both of them. Business is the senior care facility and the the asset, the real estate. So the real estate plus the business that, and then they, all the expenses, the To run the expenses are both for the business and for the real estate.

Is it? That’s right. Yeah. Okay. The expenses are coming to 900 and something, which is like 24 percent of 24 point something percent of 3. 8 really million. And you’re asking whether it is. Appropriate. Yeah. My question is if I put a 3. 8 offer, if I go and raise the money from outside, I should be able to at least give five to 6%, if I raise money, they need a return back. So I want to give enough return back. So Yeah. Yeah. Yeah. Make sense in the logical wise, if you give me 50k, I want to make sure he can get at least every quarter, some sort of percentage, right? 6%, 7%, something like that. I’m just thinking loud.

Yeah. So basically, currently the interest expense is 53%. 53 say 54, 000. Yeah. This is the interest payment, but what are they paying this interest on? Is it on the entire long term liability or short term like current liability or all put together total liability or am I making sense?

Yeah, I think it’s a total on the real estate. I think they were paying on the real estate. That’s what it is. Okay. So basically, this is interest on the real estate and I see the depreciated the accumulated depreciation. Yeah, basically what I will advise is that generally is very for an investment oriented person like you you want to separate the base, even if you’re going to buy all of it together.

The financials you want to request should separate the real estate part from the business part. Okay. So you’re separating the assets from the use of the assets. Which is right. Yeah. You want to know whether it is appropriate, the interest they are paying or not, comes down to the question of one.

What range, are they. To pay the appropriate market rent. Yeah. For a real estate of that type. So if they were to lease this real estate from, say, a third party, how much would they pay in that market as rent? So you want to in the core analysis of what the value for the business and the asset are, you want to make sure that.

They are getting enough, they are paying enough rent for the real estate. If they are, then the real estate should be able to deal with the mortgage and interest from that rent, because that’s what you’re going to get from the market, right? So if the business fails. The question is, can you, can the real estate rent pay for the mortgage left?

That’s one question. Second, then you want to look at the business part and ask the question, given that the business is required to pay this type of market rent, if they were to lease this real estate from a third party. Can the business pay this rent and still be profitable? Second, are they paying less or more currently?

So is the business, so this is a conceptual question of, is the business subsidizing the real estate or is the real estate subsidizing the business? in the way that the transfer, what we call the transfer price of the occupancy of the real estate is, or will the owner of a real estate like that prefer renting it to someone outside and shut down the business because the business is not profitable and you can get that money.

So if you valued the business, and the real estate separately. It comes down to free cash flow. We like free cash flow, right? The business can deal with you can arrive at free cash flow on the business side through the EBITDA. So your questions of whether depreciation, the depreciation, yeah, depreciation is not a cash depreciation.

Expense is not a cash expense, right? It’s non cash element, but in free cash flow, you will have to think about replacing the. equipment and assets. So if it’s a non cash element, if you do not actually make provision for fixed capital investment, it means that you are running your assets to the ground.

And once they are obsolete, you will not be able to replace them. And then if the business is dependent on them, it’s don’t think about it. like a car. So you even this this business. So think about it as a taxi business, right? So if you bought a car, yes, you’re doing depreciation on the vehicle, but if it’s not cash, but if you don’t actually set aside the depreciation amount as fixed capital investment minimum, that can plus the depreciation and inflation and interest rate, you can replace the capital.

The vehicle, when it breaks down or when it’s out of life, maybe five years, then it doesn’t matter what one day you’re going to wake up your vehicle is broken down and you don’t have another vehicle. Now you’re financing again to, to continue in the business. You understand? So this is why we don’t.

We just start off at the EBITDA and then we begin to move from EBITDA to free cash flow to see And between EBITDA and free cash flow what we’re doing is fixed capital investment allowance working capital investment allowance and see what What is left, right? Yeah That is one on the real estate side.

Of course, we think about net operating income, right? The rent you’re going to have after the required expenses and bring it, making sure the business, the real estate is top shape for the use is put into best and highest use. And then what is left after you’ve dealt with it, that is what comes to.

The owner. Then from there, we’ll now look at a cap rate on the basis of the cap rate in that market and the net operating income to see whether the value for the real estate is appropriate. So for the real estate, we are looking at net operating income and cap rate to get to arrive at the value on the business side, we are looking at the free cash flow to arrive at value for equity.

So we are generating branching off from evident. So the second thing you want to also look at when you look at this gap, you see the net operating income is here. So what you want to look at on the business side. And on the on the expense that the expense side for both the business and the real estate is to see whether there are things that are there as expenses that are eating values, whether they are not efficient and you can make them efficient or more efficient which is what we call walking of the EBIT margin.

The average margin is how it is where you create value. Is it gone off? Yeah, you got disconnected. Okay, man. And that was just getting to the best part. But hold that thought. No, but what you’re saying is brilliant because no, cause we know a lot about the the business side, but then I like the way that you come up to evaluation for both.

So he’s just joining back. Sorry about that guys. Oh, yeah. Yeah. Yeah. So when you’re looking at the business side, and this is developing what I said last week, right? There are five drivers of return on equity. That is to determine whether your money in the business is worth it. But when you see expense list and expense sheet, you’re questioning what we call the EBIT margin, right?

The operating efficiency of the business. So the way to. identify and realize hidden value, right? That will flow to equities to see are there anything they are currently carrying that you can do with less or for less eliminate totally? Or improve upon, right? And make that a big margin go up, right?

If you can do that, then your investment value is not what they are seeing, right? Your investment value also includes, so they are selling it. They are operating expenses are currently say 900, 000. You know that you can reduce it by 100, 000. So in your mind, that 100, 000 It’s in your pocket.

You can realize that immediately. Although it doesn’t, you don’t tell them, Oh, I can give you this. No you take it and then you realize you make that change. And then you are that 100, 000 immediately flows to your evidence, right? So your investment value at that point becomes higher than the market price.

This is how you create value in the operating expense. So it’s not what it is, but it’s what it is given the way they are managing it. So what should it be? What will it be? Given that you are going to be the person to manage it. Remember if you’re less efficient, it will be higher than what if you’re more efficient, it might be lower. And then it will be value realized. Yeah. Okay. The way I look at is more, I look at the numbers let me see if I can get the investor analysis. They’re preaching. Oh, so this is the detailed analysis of what that should be. That is now I’ve got generalize.

This is how you should look at it. So to actually look at it that way and come up with the values that you as an investor we see. This is where you need a deeper analysis of what they have done. You may not be able to use their own to, to make that determination. You have to break the numbers down for yourself.

And then you see one thing, so there are three situations, you see the same thing, then you have a conversion on negotiating point on the basis of what they’ve sent you, or you see better than they’ve seen, right? Yeah. Which means. You don’t show it, but you want the negotiating process to quickly run to an end, right?

So you can move in and realize that value for yourself or you see what’s done, what they see, then you try to negotiate back to where you think it is. So I look back and I thought about that part and that’s where I was asking the questions. Yeah, so what I’m trying to say is difficult to just see the, the the numbers as you are presenting them on the screen to make that determination whether it’s better or less.

What I’m trying to say is that the way they’ve structured it, like you’ve shown the net operating income, right? What remains is due diligence. Do you accept that net operating income on the basis of the expenses? If you accept it, then you just look at comparable real estate in that market to look at cap rate.

And then you do your own, if your copyright you have in mind is the same as the copyright they have in mind, then you’re going to come to the same value for the relationship, right? So you accept it. Yes, computer because I noticed that his face was frozen. Okay. And it’s always when you get to the best parts, because you’re here.

Yeah. Camara, I don’t know what you mean. I’m sorry. My bad. Yeah. What I’m trying to say is. On the real estate side, you look at the net operating income they’ve given. Okay. You look at the cap rate they’ve given to arrive at the value. Yeah. To ask yourself the question, do you accept the net operating income?

Okay. Yeah. Yes. No. Yes. Then you move to the cap rate. Do you accept the cap rate they’ve given? Yes. No. Yes. Then you have your value, right? Oh man, is it gone off again? Are you there? No, he’s there. I’m just writing down what you’re saying. Okay. So if the cap rate and if you agree with them on the cap rate and the net operating income, you’re going to arrive at the same value.

Because the value is pretty much the net operating income divided by the cap rate, right? Then you can now say, okay it means that they’ve tried to clean up everything on the table, right? If the cap rate and the net operating income, you see that way. And it means that the pricing is efficient. It means that they are not leaving anything on the table.

So all you’re doing is, Hey, leave something for me. That’s your negotiation, right? If the net, the operating that you agree with the net operating income, but you disagree on the on the cap rate if your own determination of the cap rate is higher than their own there you see higher value lower value than they are seeing.

Okay, if your cap rate is lower than their cap rate, then you see higher value in the in the in the In the in the real estate that they are seeing then you quickly. Yeah. Yeah. It’s like buying stock in the market, right? If you accept the current price, then you see higher value than the seller.

And so you buy, if you see lower value, you bid lower. That’s what it is. That’s the real estate. Now you look at the net operating income. If you disagree with the net operating income, the question is why? Do you think they are inefficient? Or they are not credible in the, so do you think that the actual operating net operating income is lower than what they are saying on the basis of your test of the expenses?

If it’s lower than you tell them To make you ask the credibility question, the due diligence questions to get more information. But if you think that you can make the net operating income higher than they have reported, because you see that the operating expenses, you got to make them lower.

Then it means that your investment value is higher, which means you just buy it and move on. Because again, that’s what I said, you realize the value from the from the operating income, you get a higher net value, net operating income, and at the same cap rate. You have higher value, right?

Okay. So that’s on the real estate. And on the business side, it’s the same thing. Is there a big margin on the basis of what the market is for that kind of so on the basis of the turnover you’re seeing, are they giving the asset, giving the market where it is? Is the

revenue appropriate, right? How are the revenues generated? Is it because they know somebody or this is what the market will give? Do you think you can increase the revenue through sales and marketing effort? So you can increase, improve the asset turnover, which is one of the key elements of the return on equity.

Then you look at the EBIT EBIT margin. Can you do better in terms of operating efficiency? If it’s yes, then you can also realize some value, right? You look at what they are paying as interest expense. And then you measure that against the the total liability. In this case, either the long term liability, it’s okay.

Are they paying too low or too high? So it’s your credit credit warden is. Your credit rating, the business that will buy it higher than the credit rating, and as a signal by the interest they’re paying, will you be able to negotiate a lower interest rate? Yes. Do you have access to financing at the lower interest rate?

If the answer is yes, then potentially you will pay lower debt service charge than what they’re currently doing, which means. You get some money in your pocket again. So this is how you go, right? Then you look at what they pay for taxes Yeah. You go to the tax level, say what are they paying and what is the net profit compared to the tax they are paying, which is the tax body.

You ask a question. Can you, is your structure more tax efficient? Are they just throwing out money? Can you engineer this in a way that you pay lower taxes or you make the tax more efficient? So each of these questions will lead to either higher value Okay. Are they, then the leverage question is what is the leverage ratio?

Can you attract the same debt with lower equity, right? So because if you take out that equity is in your pocket, right? Can you leverage higher to ramp up the other elements? So this is how you go about. Asking the question, is this the right investment and how much should I pay for it?

Okay. One question I’m having is these deals comes on. I know we have a model that we can plug and play if I have a model. Oh, the screen froze. So while his screen froze, just for context, cause we have other workers that that sometimes what they do, they make a quick model for him and then he plugs in late.

So that’s just the background story. And that was before you joined us. Yeah, but I don’t know the way you understood the question. Is it whether we have a model you can plug and play? Maybe he was still talking and I think it could cut off. So I don’t even know what. Okay. When he comes back, yeah, so let’s see.

The Is he still there? Okay, he’ll be back.

Peter, I guess while he’s Oh wait, Peter, how’s it going? Thank you, how you doing Adam? How’s everybody doing? I’m stuck. It’s been three months and my conversion couldn’t go through. Hopefully the Delaware thing, right? Yes. I’m stuck. So I reached out to the agent. So they said that I should reach out to the state office that might be able to retract it.

Then they’ll be able to process it because the agent process, it is very fast. They can process it real quickly. But if you directly do it yourself, it takes forever. It’s been three months, over three months. Yeah, so pretty much my outreach has been impossible without that. So any, is there any other thing that we can get going before the because I’ll definitely call them tomorrow and see if they can retract my filing.

If they can retract it, then I’ll let the agent do it. But prior to that, is there any other thing that we can do to get my outreach ready? I think and real quick, but what we can do is, I think we can

we should look at all the things that the email outreach tools, because I know that you didn’t want to go into the crazy website. In the complicated website, in other words, so we can just get your, the outreach tool ready. It’s yeah. So we need to get you on Google. Are you using Google for your emails or outlook?

I use Google and boats, but I think I should use outlook. Okay, let’s stick on what’s it called? Yeah, let’s stick on google We need you to install a tool called gmask for the outreach and you need to download our entire list of investors So the next step is really going through those lists of investors.

We need to send out Between we start with just 20 a day for the first week We’ll go up to 100 a day. We just want to build relationships. We’re not hard selling That’s the next step and then ideally, they’re going to the website You’re viewing it. And then we’re having initial conversations and then because the offer isn’t ready, if they want to ask for more, then we just delay that.

We just say, okay so what I’ll do, I’ll prepare the offering for you. And then I’ll show you the next steps. And then that’s all we’re doing. I believe the offering is ready. We have an offering that was prepared, but just need to file. If the conversion is completed, because I need to file the blue sky filing for the States.

And yes, that was completed. I believe it was completed and reviewed. It’s just a conversion. I need to happen for us to be able to initiate the outreach. Okay. Okay. So then, okay. Then the type of outreach I’m talking about is more just. Seeing what the people are interested in and getting the people to opt in to communication rather than hard selling.

So we can start that right away. We can start that now without actually sell hard selling the offer. Okay, yeah, and then when we do it, that’s. Say, what’s that? Oh, no, it’s just the Internet. Yeah. So the way we do it, we just need to download that entire investor list and we need to find people in the area 1st in the same city, or I believe you’re in Maryland, right?

Yes. All right. Yeah, we need to do the outreach to people in Maryland. See what the feedback is, but then we just want to do it. To get them on a call, we’re not pushing the deal that hard. We’re just saying, oh, I did some research about your company and I wanted to understand a few questions that I couldn’t quite clear out when I was reviewing your information online.

I may have some projects that suit you. Would it be okay to discuss more so I can understand more of the questions I have, or, it’s just something that just to get them on a call. And then even best case, even getting in person meetings would be great, but we’ll start on the emails and then we want to get them to tell us what they want.

We only have at least 5 mandates. And we want to start getting software. So that’s literally it. Just so I guess step 1, we download the entire list. Step 2 we find people only in Maryland. Step 3, we use G mass to send out 20 emails per day for the 1st week to get a call of them without selling them a deal just to explore and see what they’re looking for.

So that’s what we can do your links into, and we can build out the LinkedIn outreach as well. But let’s just start there. And then we can get that going by. I think we can start this week. There’s nothing Slowing us down and we can get that started. So you’re deliverable. Yeah, exactly. You’re deliverable.

Just be to log in, download the investor list. Actually, you know what, we’ll just send you the list ourselves and highlight Maryland and the area. We’ll give that part of the list to you. And then from there, it will be up for you to just, install G mass. And if you can’t install it, then we can help you do it.

But yeah, just wait for us to send you the Maryland list, download your Google workspace and then start the outreach message based on the template that we sent. I think that’ll be the next step for us and we can start that as soon as tomorrow. I’m leaning towards using outlook. Okay. Outlook, I’ll use my Outlook email better so I’m leaning towards Outlook.

Is it possible to use Outlook email and link that with Gmail? But where’s the, towards using Outlook? There’s something professional about using Outlook when you’re sending emails out to them. People find as well compared using Gmail. That’s my opinion. But here’s the thing. The Gmail, so it’s not like Peter, it’s not Peter Sheeta at gmail.

com. It’s like Peter at whatever your domain is. com. So they don’t know if it’s out there. The thing is like on the back end. It’s Google on the, like, when you log in on the back end from Google software, but then they don’t even know you’re right. Oh, really? Okay. So because the problem with the outlook stuff is like you’re not able to use all your automations because they Microsoft doesn’t use it.

They don’t like automations. So that’s the only problem. Yeah so when I said Gmail, more, do you have a website or sorry, an email that it’s like, Peter at Golda. Amidstcapital. com where it’s like Google. I have yeah, I have something like that set up.

That’s connected to G of Gmail, but what I didn’t include my my finance email. So what I’ll do is I think I’m out to set that up. I’ll look it up. I’ll look up my emails and see what I’ve got. So that yeah. Okay. That makes perfect. Beautiful. Yeah, let’s get Google workspace into the Peter at gold amid capital dot com.

And then we use that. And then, just wait for us by tomorrow. We’ll send you the Maryland. Sub list of the investors or an area, and then we do the outreach 20 a day. Using our scripts, just so we can get initial calls with the, the next step is so let me put that in my click up tasks I have to do and then get that going.

But good. I think these are anything else before we jump back to tomorrow. My last comment is that I’m leaning towards of increasing my offering a that’s my last comment. I’m leaning towards increasing my offering, in case I don’t get to what I wanted. But at least I have the room to.

I’m proud to make acquisition, not to show to build in something. So that’s the reason why I’m leaning towards. If you want us to talk about that more in private, but if you think it’s something we don’t need to talk about in private, but I’m learning about increasing my offering.

And I’m not worried about that. It’s more of just like the strategy, because if the average is big, or if the raise is big. We can go to the, we can go to the big docs, like the private equity people, right? But then it’s like a different strategy because, if we’re raising 25 million, we can’t really go to the mom and pop guys anymore because it would be too inefficient because we can’t do the.

Pretty inefficient, I think, so it would have to be a change in strategy. So I think that the thing that I think we or you have to really come up with is do we want to talk to small mom and pop investors, or do you run a focus on those private equity firms and family offices? Because I know that in your deck before I edited it, you said that you wanted to reach out to family offices.

Yeah, that was my agenda because I felt with the deal so that I have in mind, there’ll be a better chance to attract more people. And that was the reason why I was leaning towards that. And that’s the reason it’s I think that if I increase my offering, then I’d give me a better chance of making an acquisition.

Because building takes time to build things and moms and pop will go with building. And, but with the other hand, if you increase the offering, you’re building. And at the same time you’re doing acquisition, you’re doing both combined. And that way, so you’re able to get to all. You know to an agenda goal at a faster pace So that’s the reason why i’m thinking I should increase my offering so that would attract More institution investors now that private equity ramps so people will be able interested the stake is I didn’t plan to get more attention with the stake.

So yeah Okay, and the main the only thing is as long as you’re not doing a bunch of different deals at the same time, if you do it at a time, I think that you’ll find success. I get really if you do a bunch of deals if you do like a fund for institutions, then I’d really be scared.

But if you’re doing time, then I think you’d be, you would be able to have, it’s possible to reverse engineer the success. Whether it’s big or small, that’s 1 thing, but then as long as you’re not doing a fund to acquire 5 things at once. And then 20 percent is in stocks and 20 percent is in this one and that one, then just going to be real estate, just going to be all the things that are at least a multifamily of hospitality, but just going to be that space is not going to quiet that space.

Yeah, so if you’re doing real estate. Opportunity is in different assets. So that’s the reason why I’m leaning towards acquisition because I’ve seen cases where the acquisition happened when you do acquisition, like what the gentleman was talking about. You’ve the value is there and the return is there for you to have a good return for investors.

I think that acquisition might also be a good thing in addition, as long as you’re in the real estate space. So that’s the reason why I’m leaning towards that. So not only waiting to say, look, I’m going to take five years to build, but in addition to me thinking about building something in five years, but I swear I could do acquisition as well, too, which makes it faster.

Yeah, good. And he’s he’s a tax expert and he has a PhD in economics. So he, yeah he definitely Is it worth his time in gold? No, I really agree. But listen, so we’ll move it forward. Next step is just look out. We’ll get you the Maryland investors and family office.

In fact, we’ll start the outreach for them and on your side, take the lead with the GMS. So that’ll be productive. Okay. Thank you so much. No worries. Alrighty. Let’s try to, let’s try to close the books on tomorrow. Cause we didn’t finish. Cause I think we had a disconnection. Yes, I’m sorry. My bad. My internet is really bad.

I won’t restart, but I just keep restarting by itself. So sorry about that. Oh, it goes to the machine. I thought that we had socialist internet. The machine is tired. Yeah, it’s 5 o’clock. So that’s probably reason. But so you were going to ask a question about model. You didn’t finish. Yeah.

Yeah. So my thought process behind is there any that way? I know, maybe make some model, but also he made like a comment on that part. Once you plug that number, then it will calculate LPGP. And also, once the the interest and the what do we call it? Okay. The debt service, at least in the high level, you should be able to get that value, break it down.

So that way, every year, how much you can give for someone is giving. Now not, it’s not exact number, but at least high level. So that way, Yeah we can do that. We do that in fact. So basically we, we look at what they’ve given to you. Yeah. As you put it, I love, which means. We have not tested it with your own capacity to deliver it, right?

Yeah. Remember that when you offer something to investors more than you have capacity to deliver, right? Yeah. Then you’re going to make a promise you may not be able to keep. That’s right. You want to avoid that. For instance, coming back to what they have on people. We have the net operating income.

We have the free cash flow. We can now go to, okay, what is an investor an investor’s required in return. We’ll look at it. And then we’ll not come up with with a value. And then you can say, okay, how do I want to distribute this between LPs and gp, M E r carried interest and LP share.

We’ll plug those numbers and then you have something to sell per unit of the lp. And what the implied rate of return over the exit period, right? The investment decision period, right? We can do that. If you’re planning for five years or if you’re planning oh man.

Oh my goodness. Yeah. Yeah. No, his incident is ridiculous.

Anyway, I’ll give it a few minutes and I think we’ll be up. No worries. No worries at all.

Yeah. So the straight answer is yes. Yes. But wait, but that is a paper, right? We give you plug the plug in the numbers and you sell it. Yeah. That is the easy part. Yeah. The question is, can you deliver what you sold? Yeah. Yeah. That’s right. That’s right. And that’s why we look at. The elements of value talking with you will come down to, okay, this thing you’ve sold, this is what it means in terms of tax.

This is what you, what it means in terms of interest bonding. This is what it means in terms of asset turnover. This is what it means in, in, in terms of leverage. This is what it means in terms of a bit of money, right? Can you deliver this? Yeah. This property, why I’m interested in this problem, this is a hundred percent occupancy with a waiting list.

So it did not impact much on COVID time. So for me, that’s more appetizing. That means I’m not saying the economy can go down south within tomorrow morning or next week or next year. That demand will be there in my mind on that area because the senior facility when the economy get tighter, people go to work more than less in my mind.

And also it can go vice versa. But at least that’s what I’m seeing. At least that’s what they mentioned to me. We’re saying that’s really great. So I agree with you 1. Everything is fine too. You can deliver it. So three, yes, we can give you a piece of an Excel model. You plug in and plug. In fact, walk with you to plug in the numbers and then you will see what, yeah, that is, yeah.

If we can get that part, then I will plug along and I can show it to you guys. Then you can come back and ask me or the poke the hole on the model or what my assumptions or hypothesis I’m making. To come to a conclusion on that part, because that will allow me to, when I talk to the investors, I can say, Hey, I have a deal.

I need money. That’s what it is. So I can, yeah exactly a tiny bit harder than that but yeah, no, that’s the point. No, but good. And, you know how to get that started, but I think that’s been productive. And I want to just remember that everyone that Dr. Google’s time is, pretty, pretty viable. Any last things before we hop off or no, thank you very much Gogo, I appreciate, thank you. Yeah. Make sure you get his co contact information as well. He’s in the the groups as well, in, Oh, okay. Okay. I bother you through that . Yeah. Yeah. And he has this tax practice and business advisory practice that he runs as well.

Oh yeah, he could actually advise on tax. So that’s something that is outside of the raises.com scope. So if ever you want to do more tax things as well. He’s there and he’s pretty good at that and we’ve referred a few people for their funds after they find the investments. It’s or even during it’s like, Hey, how do I how do I get more tax efficient?

And that’s out of my purview. But listen, gentlemen, it’s been really good. This has been the end of the high notes and then we’ll, you know how to reach us. We’ll see everyone on the next one. All right. Yes. I will get a, like an Excel document or the, like a template sheet. Thank you. We’ll set that, that’s not, it will, I think it will get to you on how this works.

Yeah. Okay. Yeah, exactly. Same as always. You okay? Alright. Okay. Thank you very much. Thank you. Thank you Joshua. Appreciate thank you so much. Cheers. Thanks. Thank.

 

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