Investor strategy call – December 20th 2021

Speaker1: [00:01:03] All right. Just getting set up for the call. Let’s see a Newt. All right. Hello, today, today. Yeah, not to here. The CFA will join us in a second. Yeah. Here are of the Q&A call. Yeah, the typical way to call works. Simply put, you know, just type in a question in the chats or notify us in the chat if you have a question or raise your hand and we’ll bring you up. One example could be I’m working on getting an equity investors based in Texas. What is your mandate? And then we just go through the details one at a time. I see the CFA have joined us right now. Ok. Yeah, look, it looks like Elaine is here first. Yeah. Welcome, Elaine. I’m going to I mean, wouldn’t allow you to talk since you’re just joining with us, if you have any questions, I want to welcome you here. So.

Speaker2: [00:02:33] Hello, Elin. Yes, yes. How are you doing?

Speaker1: [00:02:38] I’m doing, I’m doing well, sir. How’s it going with good?

Speaker2: [00:02:41] Good, good. I’m doing good. I’m doing good.

Speaker1: [00:02:44] Good, good. Yeah, we got some of the materials I sent over, we see that you just one of the new people that just jumped on. So hey, we’re here to make you win here.

Speaker2: [00:02:55] Ok. Ok, so I’m good. Basically, I don’t have any questions. I’m just here to learn.

Speaker1: [00:03:05] Fantastic. Yeah, we have a few people joining, so yeah, feel free to sit back. Ok, OK. Sit back, relax and then let’s see here. So next up, we have. Ok, it looks like Vestas joined as well. Welcome Vest. Yeah, if you have any questions, feel free to just ping us or raise your hand in the Zoom chats and we’ll attend to it. Ok. You. And if there are no questions, that’s OK as well. But we’re just we’re going to stick back in case that changes. Oh, hello, I see Roofing Dotcom CEO Hunter is here as well. Yeah. Hunter, if you have any any questions about what you’re working on, feel free to raise your hand and we’ll bring you up and chat if there’s any question about the item because I know we just got something going offline there. Yep, no worries, no worries.

Speaker3: [00:06:26] They need to.

Speaker1: [00:06:28] A vest? How’s it going today?

Speaker3: [00:06:30] It’s going good, man, just, you know, busy week of Christmas or a week before Christmas, if you will, and trying to get lots of stuff done before people start to take off, you know, and then I can’t find them. Here’s what’s going on. What were? Fund that we’re doing is what is well. One question is I have one land deal. And we were wondering if it just do it more like a syndication for that land deal or make it an open ended fund with with that particular deal being one of the potential deals in the fund. I think it just comes down to cost.

Speaker1: [00:07:26] Interesting, and when you say cost, are you talking about the cost to set it up, set it up. Ok. Ok. So is the goal here to. Because I’m curious, is it goal here to make sure that the deal gets done quickly or is it just to make sure that it gets done cheaply?

Speaker3: [00:07:48] Well, it is to get done primarily. So so what happened is. I mean. Our investment thesis would center around. It’s almost like. You know, to be honest. We can do multiple funds, right? Multiple opportunities will arise, but it’s just what the fund pays out. So for example, on this deal? If if we structure it more as a syndication where we’re looking for partners to phone from the apartment project 50 50 apartments, you know, total total raise. You know, probably in the $3 million range, I would think just cash equity. The overall. Project might be around 10 million. But that will be funded partially by some institutional debt and those type of things.

Speaker1: [00:09:02] Ok, so can you just walk through that one more time, I just like to take notes to make sure I’m OK.

Speaker3: [00:09:08] So option one is land syndication for. And the reason for that is. Let’s call. I think let me go a quick laugh at all. Yeah. Would be 10 million. So about two to three million trees. Is what we would do if it was a syndication.

Speaker1: [00:09:52] Got it. So. I mean, typically, I don’t know if you’re going to I don’t know if I’m interrupting, but like I saw a pause in the conversation, so go ahead. Yeah, so. I mean, if the if these are if these are small fries, because I mean, I mean, if you’re looking for one person to do the one check, we always see that there’s especially because like you have super funds, we only see that. I mean, generally, unlike unless there’s an exceptional reason to go towards the fund model because of some unique reason or the story for the quote unquote track record is extremely quote unquote sexy. The one off deal may seem to make a lot of sense here, because if this is for our land, is this for a land acquisition to acquire the land first or so?

Speaker3: [00:10:45] Yeah, we would do a little bit of land, not acquisition. And then some of the cash will fund the vertical. To some, purchase the land and then some to go vertical.

Speaker1: [00:10:58] Ok, yeah, I’m definitely I’m definitely more in the camp of of just doing one offs where possible to like as per Abdul and on a previous call, yeah, more to just phase it out and then do one thing at a time. Because just for the sake of simplicity and being able to track cause effect, the change here, because I mean, if we have only one type of deal for one purpose, then like, let’s say this one is like half of it is like the land acquisition and then the other half is like then vertical. Then maybe potentially for this, this is like a deal, right? And then the same types of people can be targeted.

Speaker3: [00:11:41] So, so let me tell you about an option to them. Yeah. Option two and a fun would be to target land development, generally speaking, as an investment vehicle. Which, frankly, I don’t think I’m set up to do because I’m a one person army. And right now, I don’t have I mean, I have friends and I have colleagues and everything that we can come together pretty quickly. But it’s not like I have a five person team ready to manage the acquisitions, development and construction of a 300 unit apartment project. You know? Which is like $50 million of investment, total. Yes. You know what I mean?

Speaker1: [00:12:44] So you’re so you’re saying, so I’m trying to understand the conclusion, so you’re saying that because you don’t have the the core competencies to do all of that extra work, that broad work. What you would rather do, the thing that you have the expertise in, which is more of the

Speaker3: [00:12:59] Well, it’s just structure. So for example, if I were to do a raise around a particular project, then we know what the project is. That partner comes into the equity and or that part those partners, they come into equity and then we go from there, you know, then. And so we do that project and the money is made and et cetera, et cetera, et cetera. Ok. Then there is a. Opportunity to do land, period. Um, and one of the opportunities is is the this particular project, this land project. So basically, the fund is open ended and one is kind of creating some maybe continuous relationships or it’s established with the understanding that there will be continuous deals that we’re looking to do. And there are some be some criteria with that. I don’t know. I don’t know how sophisticated the guys in your group are. I don’t mean that they’re not sophisticated, I should say. I don’t know how focused they are in specific strategies and how specific their criteria is. You know?

Speaker1: [00:14:28] Oh, I see what you’re saying. Yeah. Going back to that’s a good point, but going back to practicals, yeah, I would really I would really just lead with. I would really just lead in one with one broad because I mean, as real as we’re actually going out, yeah, one that’s we’re going out. I mean, it would literally just be trying to get them on a phone call ASAP, either through intro. They’re just trying to get them on the phone ASAP, right? So, you know, based on. Because usually it’s like, OK, what is your it’s like, OK, do you know, hey, I saw that you had something in common here? We didn’t make sense to have a quick chat about include what you want to have chat here. And then after the call, then it’s just like basically learning about the mandates. And I think like the fun thing, it seems to be more of a long term thing. That’s yeah, yeah, like a catcher. It’s like a catch all type of thing because, yeah, you know. I’m just going to say like because like it’s usually from what from what they said and what a lot of new fund managers said, it takes a lot of momentum to start a fund. So I think it’s a long thing, but for one deal at a time is just cleaner. And because of these checkboxes, many of these checkbox investors, it seems to be cleaner. And so the relationship may be a way to kind of cut around the the resistance, but then relationships happen over either through intros or through time. And. And since we’re here, I mean, from a financial point of view matter, do you have any any quick thoughts when it comes to the difference between setting up a fund, I guess from a financial point of view, setting up the fund versus just doing one acquisition at a time from a

Speaker3: [00:16:21] Yeah, basically a syndication, which is more like a closed fund. It’s closed. It’s set a certain investment vehicle. I’m more of an open ended fund, which may have multiple investment projects in there, if you will.

Speaker1: [00:16:36] Ok.

Speaker3: [00:16:37] Yeah, so I agree with

Speaker1: [00:16:41] What you just said. It just makes more sense it’s cleaner, like if we are just doing a one off deal instead of an open ended kind of thing because that’s more like a strategic based investment

Speaker3: [00:16:54] And not really, you know, like a deal based investment. So like, it would be harder to close it, it would require a lot of work and extra work. So. So considering all those factors, I believe like even from a financial point of view, it just makes more sense to do one off kind of deal that we just talked about. Got to big, yeah. So I’m so so it all depends not to on the the folks that basically I would get paired with investors because some investors are, you know, dependent on their appetite. Yes. You know, it really all depends on that because even a 50 unit apartment project is sometimes a little small for a fund. You know, I mean, for a for a fund to fund it, if you will, an investor to fund it. If the investor is some type of, you know, large private equity group, they may have a mandate that they are looking at projects 200 units are bought, you know, because I frequently run into this.

Speaker1: [00:18:06] Oh yeah. Yeah. Yeah, exactly, because I mean, generally, that’s that’s why what we see here is I hypothesis, right? And then then it becomes time to actually talk to the people who validated or invalidated because things can change, right? But just based on the last guys that wanted to set it up, Adi adds, he’s moving with his one off acquisition because, yeah, the mandates do swing around. And I think Camilla will be a good point of contact. Okay.

Speaker3: [00:18:41] But but anyway, for either it, we want a fun. I mean, that is a fun structure question. If it’s going to be a a syndication which has more of a joint venture type feel to it or a fund which is almost like a blind. It doesn’t have to be a blind fund, but I mean, it has essentially is give me your money, I’ll work it, I’ll work the deal, you know, whereas the syndication is, you know, we’ll give you a we’ll invest money, but we want to be part of the decision making, you know, so. Yeah, I’m thinking. I’m starting to. Yeah, so there is there is one project not to that. That that that same 50 unit project, and I was wondering if. If so, I mean, I could put together a pitch deck for it. I can put together some template subscription docs and so forth. And also the template. Would you say those are the three documents that I need? Of course I need all my LLC docs and whatnot. Yeah, and get that up into the portal and then kind of test the waters and then go from there. What do you say? That’s a good plan.

Speaker1: [00:20:11] Oh, yeah, that’s a nice, quick and dirty type of test.

Speaker3: [00:20:14] Yes, I like that word test

Speaker1: [00:20:17] It, really it really is, because because what people do like, I mean, the quote unquote silly way of doing it would be to just work on it for for weeks and months. And then and then time is going and then, you know, you’re not. And then, you know,

Speaker3: [00:20:31] The deal might be gone. I don’t I don’t have a deal on the contract, you know what I mean. So part of the reason is, you know, basically the. I mean, I probably could get it under contract with a proof of funds letter. Just put it on a contract. I might have 30 to 90 days to raise capital to. You know, so anyway. Ok. Interesting, yeah, interesting.

Speaker1: [00:20:57] So with respect to the documents to answer the question in the documents, the minimum, the minimum viable, I guess minimum viable legal documents is really at the end of the day. It seems to be the I mean, the company being, I guess, either the company that is being acquired or whatever company LP, whatever is existing and then the subscription that documents explaining what’s what units, what equities are being sold. I mean, the financials that say that, OK, these are the terms of the deal. Here’s where the money is going. And so it can really be combined in any way. But then the like, to be honest, and we’ve seen cases where, I mean, we’ve seen broker dealers handle transactions without complete PBMs. However, the PMS can help and add more legal protection. A lot of these kind of esoteric type of mining deals or crypto deals or pre IPOs or whatever, but there may be cases where. The case is in situations where the PM may be a bit overrated. And so I mean, we can come back with specific cases where it may be something that is overrated, but yeah, in general, I mean, the subscription agreement, the financials, the deck, if you would think everything barebones. And then you’ve done what’s what the SEC wants, if you do that and then if you file it out.

Speaker3: [00:22:26] And if I need some help, I mean, just kind of going through it a little bit. What’s the strategy within Reason.com to do so?

Speaker1: [00:22:35] Yes. Actually, get the funds. Yeah, I mean, a few ways, one is the. Quick introductions with this, it is a quick introduction. Just some quick intros with a few people. I go here, get some quick intros and because, you know, because these are just introductions. Uh huh.. I just talked I literally answered my email and talked to, I believe one of them is Camille. So Camille is really good. That’s the first one. So at least kind of see, OK, what’s happening and what’s going on? Just to get a taste of what what she wants. And then after a quick intro. And there’s also the WhatsApp groups are pretty, sometimes they’re pretty hectic, but they go deep down the rabbit hole just to kind of get like a vague understanding of saying of somebody saying, OK, this deal intrigues me because of X, Y and Z. But prior to going down a deep rabbit hole, it’s also important to consider the incentives that they may have. Maybe they’re just with an investment bank, or maybe they’re just with a funder and then they don’t know the criteria, like they don’t know how long it takes. They’re just excited that there’s a small chance that it’s going to go through. And so they’re going to get their commissions that are excited. So I mean, my point is like sometimes they’ll be excited and it’s for a good reason. Sometimes they’ll be excited and maybe they don’t know all the all the nuances or all the details until, you know, the entire situation. But anyway, that’s a good place of quick feedback. And then third is the actual context here. And so, yeah, we’re continuing to clean this up, but. You know, just honestly, just potentially 20, 20 people. You know, just from mandate, from mandate research.

Speaker3: [00:24:26] Hmm. Ok. So, so I’m an investor interest on mine. Yes. Right. This is something. What is the investor contact?

Speaker1: [00:24:41] Oh, this is so this is investor context, it’s it takes you to just the the investor information here, it takes you to this page. It’s a Google

Speaker3: [00:24:50] Drive. Okay, one second. Hold on. I’m I was looking at my screen, I need to plug in this thing. So where are you showing up again? Yup. So I’ll go. I move pretty quickly. Uh. Oh, yeah, okay. Investor contacts. Equipping.

Speaker1: [00:25:22] And in. Then they go to the new and this one is being populated

Speaker3: [00:25:29] With this one. This one.

Speaker1: [00:25:37] And I’d sorts by sort by the region and real estate’s. And so. Wicked cool. And just go from there.

Speaker3: [00:25:47] Yeah, yeah. Let me let me back up. Let me check that out.

Speaker1: [00:25:53] Yeah, absolutely, and I mean, we’re doing a bit of an extensive updates like we’re getting this on a we’re getting this on a new website actually in a few few days, but for now, this is the quickest way. Just talk to real people, see what they say.

Speaker3: [00:26:09] Ok, I’m going to check it out, I’ll just open it up right now, so Q4. As our current one. This is like a. Ok, yeah. And sorted by. So my key word would be I probably would want to start T-word, right?

Speaker1: [00:26:33] Yes. So mandate keywords. I’d look at either multi, so I’m not multi. You’re doing land, so.

Speaker3: [00:26:43] I would just I’m going to quote it shortly. On. Yeah. And I kind of pulled it down, so I’m just going to go is going to my reason.com the. He’s. All right. Who is going to save this is a seller or something so I can search it. Ok. Oh. I mean, if you. Ok, so what I might want to look is the mandate.

Speaker1: [00:27:45] Yes.

Speaker3: [00:27:46] Some don’t have mandates, by the way.

Speaker1: [00:27:50] Yeah, yeah, some of the some they just leave it, and it’s a lot of the either the pension funds or the some of the family offices or pension funds just leave it as blank.

Speaker3: [00:27:59] Yeah. All right. Most searched the word line. Ok, got landscape

Speaker1: [00:28:09] And there’ll be Oakland, so we can spread out the cute three one because like. The cute three one may be something worth looking at to because a cute three one has the individuals within the queue for one just has the the the companies because I’m seeing more real estate rather than let.

Speaker3: [00:28:29] Okay, remember to start real estate. You. So. Hmm. Church, you know. Thanks. Okay. Mm-hmm. Okay, but the point is, this is the part where this has some investor contacts, but being able to. So for. Been able to have the busiest search to this is helpful.

Speaker1: [00:30:20] Right? Yeah, well, there’s that. There’s also searching through it. But more importantly, there’s also the getting them to use the tool. I mean, we have this tool of this API and so on that what it does, it goes through an entire search engine and makes these lists based on the keywords you enter in. So, you know, that’s a that’s a bit of a repetitive tasks. You can get a lot of leads, obviously, but we get them to do that. And Coles has gotten a few. I think he’s got at least one mile away from that because that’s like another way to get, for example, in this case, that would enter into the tool and if you go back. Because you’re. So it’s the same name as the name of this virus, but we called it Omicron before the virus came out. So bottom right to and meat around here.

Speaker3: [00:31:11] I saw it. I was wondering about that.

Speaker1: [00:31:14] Yeah, now we probably have to change the name. So in this case, we’ll say these are third party. These are third party tools, right? Uses something called syrup API. So enter land developments.

Speaker3: [00:31:30] Oh, I see United States land development.

Speaker1: [00:31:37] You know what I’ll do, I’ll walk onto another camp to get the key, answer it in. And then I would suggest. So I would suggest the OK, so then the person type. The vertical type and the transaction that in a transaction type is private equity. The vertical type. So I mean, land developments and. Yeah, I think this this may be OK, I can see equity or investor here, so this can be a good start.

Speaker3: [00:32:09] Yeah. And on the keys, what would you put on the keys?

Speaker1: [00:32:15] Oh, this this is like a bunch of gibberish, it’s like a password that looks like this. It’s a bunch of gibberish that connects to something so creepy. And then what it does, it goes through Google here, but then you need to make an account with them. So.

Speaker3: [00:32:28] Okay, so this third party thing? Gotcha.

Speaker1: [00:32:35] Mm-hmm. These are trained in this because many people that we work with, they’re not comfortable doing this technical work, so the VA’s usually are the ones to do it.

Speaker3: [00:32:45] Yeah. Under investor interest, I just clicked on that one. So here I fill out some basic information.

Speaker1: [00:32:58] Yep. It should be name and. It should be name and first name, last name, email and then. We’ll send out an introduction.

Speaker3: [00:33:10] Okay. Just name and email. Yes. Okay. Oh, I see silver speed. I see. Ok, so these are like hard money lenders.

Speaker1: [00:33:30] Yep, the guys, the guys at the bottom, yes. Silver Spade is hard money Kennedy hard money lending capital is just for debts. They may do equity. Cambridge, Cambridge It’s fantastic, but they’re only above twenty five million dollar deals.

Speaker3: [00:33:47] So what do they do?

Speaker1: [00:33:48] Cambridge, Cambridge They’re an investment bank like pure success. The investment bank. The Charles Brown is their managing director. And then they take, I think, two to two to four percent on. And that’s and then they take, I think, as much as six percent on equity, they typically they don’t like funds, though they like only one off deals they can do like you have to. Basically, it’s all relational based. They can do funds if they’re really big, but usually it’s one off deals for them. And then, yeah, they’re pretty good. Is this that it’s because it’s it’s only successfully because they actually closed deals to qualify for them. It takes a lot of like like you have to be really. It’s a really good deal that they’ll say, OK, let’s raise for this.

Speaker3: [00:34:34] Yeah, yeah, yeah. Yeah. Ok. So I follow in Stock Loan Solutions Fund with Red Rock. Hmm. Apply for loans. Ok, so this is just some resources here that we are interested. Yep. After subscription in debt generalist. True. Red Rock Capital loan program. Let’s see what they got. So is this like hard money stuff? It’s all good stuff, nevertheless.

Speaker1: [00:35:26] Yeah, that one came from Richard, yeah, because after Richard did, he got his debt funded three million and I think some of the debts was what’s from them. So I think that’s why he was like, OK, I’ll use them.

Speaker3: [00:35:37] Yeah, yeah. I follow you. Ok. All right, so but this I put in. Just my name and information I get, I get some introductions, right? Invoice factoring. I don’t know what it is.

Speaker1: [00:35:58] Oh, invoice factory, yeah, it’s really it’s a debt product that is for companies that. So imagine imagine an MSI merchant cash advance, but without all of the ethical problems and for revenue generating companies that have a bit of cash that is stuck and they want to liquidate a bit faster. So let’s say there’s like a there’s like a shipping company. They have a purchase agreement with another company and then the purchase agreements is for 30 days and they need the money in, let’s say, 10 days because they want to do something with it or leverage it or whatever, then the invoice factory will help them liquidate it. So I’m really just, I guess I’m really just giving a simple explanation matter. Do you have a more direct explanation? It’s OK if you’re not familiar, but

Speaker2: [00:36:50] I can explain.

Speaker1: [00:36:52] Oh, yeah, sure.

Speaker2: [00:36:53] Ok. Basically, I see your business as a roofing business, right? What was your

Speaker1: [00:37:01] Name? That’s that’s a best. Oh, OK. Ok.

Speaker2: [00:37:05] Ok. We can take that example. If your business was a roofing business, let’s say you do some work for someone and you charge them like five hundred thousand. And before he pays that invoice, the bank can can. Be a portion of it, a good portion, like 90 percent of that of that invoice. They they pay you the 90 percent of that invoice and and the the your client paid directly to the bank.

Speaker3: [00:37:41] Right, right. I followed so far. Ok, OK. So where were we? Ok, thanks. Thanks. Appreciate that. Oh, no problem. So, so not to. So I have one real estate deal, if not many more. But let’s just focus on the first one. Yeah, my I will go to the. Put them together, some quick packages and some ducks and so forth. And then, OK, so say I. Let’s see. I get through. I prepared my data room and I’m ready to raise capital. So now I need to get some introductions and feelers, right? So, OK, that’s that part, follow you. That’s the part we were just discussing. And. And campaign Genesis begin the broad campaign. That’s probably where I need to be real quick. I’m kind of not rushing it because I know it’s Christmas and everything, and a lot of people are not really trying to make an investment decision this weekend. So third party workforce. Ok, so tell me about the what’s it called the campaign Genesis Begin. The broad campaign looks like there’s some if the third party workforce and is workforce one two three, so forth. Right?

Speaker1: [00:39:22] Yes. Yes. So these folks optional, so these folks are for parties, that’s because a lot of the clients we have the a lot of them, they don’t have the time to sit them, they’re running the business, they don’t have time to either do some of the do some of the calls and. But then the only way for us to scale is for us to delegate to a third party workforce. So generally, the way that we recommend doing is just sending a. You get people to send a quick email out to generate the calls and to set up the calls or to generate an enquiry for request for investor information. And then they just forwarded over to the principal. So and we recommend that the principal that being yourself like take the call with the investors. So the what else here? Suppose these investors, what else here? If people want to have a call, like if people want to set up, if they want people to do the calls for them, we can do that. That’s the the Canadian folks. So let’s say for American folks, because the rest of these folks are not in America, except for the people that are talking on the phone right now. Um, so let’s see. Oh, cool.

Speaker3: [00:40:35] So I just have different levels, I have basically level one two three. Or primary? You know, primary then level one, two three, what would you say is a difference from cost?

Speaker1: [00:40:52] Good question, because we used to only depend on one, but like all things, you can never depend on only one thing. So because one of them actually got coronavirus and we had to find another one, and so we just decided to use four.

Speaker3: [00:41:04] Okay. Okay, okay.

Speaker1: [00:41:06] Yeah, right. Because the only way to have 50 different people use this use, this whole thing is to have multiple people. So sure, these guys, they they’re pretty good. Actually, they’re in the Philippines. They’re the cheapest. They’re the most trained on what we do. But I mean, they had crew and their team had coronavirus and actually there was actually a death in their agency. So they went off line for a bit. But now they’re back for these guys. I recommend the most because they know it’s the most referred to by a lot of Americans. These guys are good to, they’re being trained up. They’re pretty good suit. So far, no complaints, these folks. Yeah, these folks are good. They they’re the least trained up because they’re the second newest. Oh, hold

Speaker3: [00:41:48] On. Hold on. Let me see what you’re pointing at. Ok, so OK. The the the primary. Is 250 set up? Then 19 months, so it looks like all 250 set up, and then it varies at 1990 40. Ah, and then it goes from five hours a week to 10 hours a week, so what is the difference between, say, the $19 per month and $400 per month, which is like work? Workforce two and three, I believe.

Speaker1: [00:42:23] Yeah. Good question. So the way the funny story, the way that this one happened, this one was the first agency that we got with. And then these guys, these guys price match this one to us because that’s because I just told them about these rates. And so these guys are based in America. It’s like an American lead in them in Chicago. His name is Alan. And you know, he’s he just went down to this price because these guys are just in the Philippines alone, some primary or in the Philippines alone. But then these guys workforce. One is an American managing the Philippine guys in the Philippines. So I mean, you’re going to get slightly better service if, in my opinion, because Americans know how Americans think and then the workforce to these ones. Same thing. It’s like an American managing the people in the Philippines. And the only thing is that he I think he takes more margin. We don’t make any money on this, but he takes a bit more margin. That’s why it’s a bit better. And also because his minimum is 10 hours a week. But the other guy is minimum only five hours a week. And then the final folks, these guys can actually take calls. So because people actually want people to take calls for them, this is just an option we have here as well.

Speaker3: [00:43:36] And is it take calls, so if they get a callback, they can take it.

Speaker1: [00:43:42] Yeah, I mean, it can be fully trained and scripted and everything to take calls, and somebody can add more context. Let’s see. Yeah, because what they do, they get they get the standard operating procedure, so these are all the instructions that they’re trained on right now. This loading. So they’re trained on all these instructions. Now, so basically, the people that only take the calls. And they only take the calls, but then people that say, oh, you know, work on a script if they work on a script. Long story short, here are the instructions for the company that leads the VAS and then hear the instructions for the VAS. And so it’s pretty extensive. But yeah, they train it. They watch the course and everything just so that they can know what’s going on.

Speaker3: [00:44:33] That’s really the point. Ok. Makes sense. All right, fair enough, then well, we will. You know, I would have to say these are kind of like a little breakdown. All right. So my critical path really is just to get the a little bit of an intro pm, some sub docs and stuff. And then out of nowhere can I add to the list that, oh no, but you guys have your specific list that you reach out to.

Speaker1: [00:45:02] Oh, you can you can add to them like we have the list, yeah, but then the thing is like because because we yeah, because we’re on the side of compliance here, we yeah, we keep it so that we try to get the company to make their own group of investors and relationships as well. Because I mean, yeah, through some of the introductions, yeah, we may benefit in terms of.

Speaker3: [00:45:29] But you have introductions and you’re basically acting as my introductory. So you’re in other words, I can’t pitch my funds directly, but because I may not know these people, like if it’s a five or six B, which would precludes general solicitation is the term that the IRS uses, for example. So what you’re saying here is because you guys are making the calls or views or making the calls, you know, even though it’s on my behalf. This is a list that you guys already have, right, or at least some familiarity with. I don’t know. Well, actually the right good question.

Speaker1: [00:46:07] Actually, a bit the contrary, because the way that we would make money is only through those few introductions because we’re not set up in the broker dealer setup. Yeah. Either. The way that we would make money would simply be through the introductions because the people on the buy side, like the investors or the investment banks or whatever, they already have their lawyers that we have the consulting agreements with. And then we would potentially get paid for them. But then the thousands of investors, we potentially won’t get anything out of that. The only way and just FYI, in the future, it sounds stupid, but I guess it may be something to add value to people. But in the future, what will it do is set up an escrow account on behalf of members in the future so that we may benefit from that as well. So that’s something that we’re actually working on in the background. But for now, really, it’s just a few introductions that we may benefit from. And then the list is all it’s all fair game. They’re all yours.

Speaker3: [00:47:00] Okay, cool. Cool beans. So I’m I’m scrolling through. So, all right. Well, you know, I’m a little bit way as a way to get that information out, but it’s worth worth looking into. How do you guys derive your list?

Speaker1: [00:47:18] Yeah, the way we derived it, we simply paid a few consultants some money to say, OK, listen, let us use this for a company and then remove some of the remove some of the fees for for like let us use this for a company in a similar quote unquote competitive service. And so that’s it. We just have to get some people to send us the information after they vetted it and to use press releases and so on. And then we had to pay for that class for them to let us use it for our own business. Kind of like a competitive thing. And then from there, what we do is every quarter we go through all the information and then we add more to it or we reevaluate the emails every quarter. So we’re actually doing it. We’re doing our quarterly validation beginning of what in the next year or so. So we try to get it done a bit earlier because of the update we have coming up soon.

Speaker3: [00:48:12] Got it. So I’m looking at I looked at the oops, this is the investor data engine. I’m going to look at the Q4 information. Oh man, there is. This is all segmented out into different things.

Speaker2: [00:48:29] Hmm. And I can I can I ask you a quick question, please? Yeah, sure. Ok. Thank you for the introduction. I received several of them. I wasn’t. I don’t think I’m ready yet because I haven’t insert in my my summary. You know, the strategy I want to I want to use to raise the funds I wanted, but several of them, I sent a draft of what I’m doing and I wanted to know if that’s OK and if I should CC support on that.

Speaker1: [00:49:10] Oh, no, so the draft is fine. So, yeah, first of all, the draft is fine because do the introductions because some people what they do, they they talk to them or they work with us before they even have a transaction, like, for example, goatee. So he was looking for an apartment deal, and so he needed to know what types of deals to even acquire to begin with. So he said, OK, what types of apartments are you investing in or is Stephen Miller the person who you’re triaging for? What is people are investing in? And so he got that conversation going for him to go back to the market. And the only thing is like the I mean, as long as as long as somebody actually goes back to them, because if they don’t, then then it just looks like the person is hanging. So I think that as long as it’s for for an intention, then it makes a lot of sense. So that’s the first one. The second one, yeah, the CCS, we appreciate it and it helps that. We do also have our we do have like a little contract with them on the other side, too. So I mean, oh, OK. Yeah, there are people would take care of us as well. But so we don’t really want to force ourselves all over the place.

Speaker2: [00:50:20] Oh, I mean, I owe that to you. So the the other question is, so when I take the list of of the investors I want, I think you was mentioning that you have a web. I mean, you have an email blast application and the system. Oh, yeah, exactly. Ok. Because I was going to ask you if you if you don’t have it, you can I use any, any other because I mean, this is your listing. I don’t want to take it out.

Speaker1: [00:51:01] Yeah, it’s a good question, because, yeah, what we do, we because we had 50 people go through this, it’s kind of tricky. So we had to make it so that we don’t get people to talk too much about racism or about Nazis or anything because of the list, because if not, then they will start to get burnt out. So we try to just keep it about the company, right? And the only way we would because we don’t we don’t care about circumvention here. We don’t we don’t follow the typical model, so we don’t care about circumvention. It’s all free for all. Everyone is all fair game. Now, the main way we make money is through. For example, if you know when we get to an escrow service and then you decide to use our service, if that’s something that happens in the future, then yeah, then we’ll make money that way. So it’s basically all free game. You don’t have to mention Reason.com or anything. And we actually. And before the email blasts, we actually just encouraged us a few quick, maybe 20 emails per day or 20 calls per day type of thing first. Yeah, because you know, it’s good to get the feedback because if we send it to everybody and then the feedback is really bad for everybody, then then we burnt the entire list, right? So, yeah, yeah, we go slow. And then over time, we increase the personalization so that it’s more personal to the investor, which increases the response rates. And we do it slowly and then build up from there, then that’s the best way.

Speaker2: [00:52:28] Okay. And if I have a potential investors investor out, should I should. Can I bring them in a system because I think the system is more structured, you know, to be more presentable to to investors than, you know, doing it individually? So do you think we, you know, if I have an outside investor, I should bring them in the system. Oh, you mean? Yeah. And, you know, I mean, because if, if, if it’s is, it’s not. I don’t know if you sign any deal with them. So they pay you when when they they close a deal like, you know, when I was doing financing, some of the investor will, do you know they will pay the broker, you know, some brokering fee. So, you know, I mean, I want to combine both both sides, you know, like use your system. And in the same time, you know, if I see any investor outside when I’m bringing them in the system. So I don’t know if that’s going to be a problem.

Speaker1: [00:53:46] No, that could potentially work. Yeah, that could potentially work. Yeah, all we do, it’s really simple. Like all we do, we are we have some people that go out and try to find new people to support, support or raises are confident it will happen. Is, I mean, all we do, we just go on the pacer database, just do a quick search on your background. And then, yeah, and then we just simply put, we can add them right away. Let’s see. Intro. Well, I think we can have them right away, real simple, introducing the person who comes on to them with yourself or whoever would like to be on that email, and that’s it. It just takes it takes like 20 minutes just to do a quick Google search to see who they are and then and then whatever process that they like. That’s so happy to do that.

Speaker2: [00:54:35] Yeah, that’s good. Thank you.

Speaker1: [00:54:44] You know, they’ll probably they’ll probably appear here because you’ll be like their name would be hidden and then it’s the same. That’s how we got Oh, so we got this person because this person is, you know, they work at a Canadian, a Canadian investment bank. And then we see the person, Josh, on the email and he benefits deals that closely. I know it makes a lot of sense.

Speaker2: [00:55:07] Ok, OK. So so you said the traffic is OK. If I if I send the draft, it’s still OK. Yep. Because, you know, I wanted to do a, you know, conventional more elaborate summary, but you said the drive is OK.

Speaker1: [00:55:27] Yeah, potentially, but I mean, we’re not really. And it always depends on what the goal is because I mean, if the goal is for you to quickly get feedback, then that could be. But if your goal is to make sure that you look as good as possible, then obviously you can have everything 100 percent done. Yeah, I mean, I encourage. I mean, we’re here. We’re here to take a look if you need, because we can get matter to take a look to make sure that it looks presentable even to the introductions. But the people who are being introduced, they trust us to some extent. Right. So, yeah, yeah, generally, the people we send to them, they already trust us anymore.

Speaker2: [00:56:03] Yeah. Because what I’m trying to what I’m trying to build is build a relationship, you know, have an investor backing up my my process, you know, and in a, you know, like to be more concise, get a get a line of credit and then go out and and put all my portfolio in. I don’t know if that’s that be. I mean, I don’t know what you think of that.

Speaker1: [00:56:36] Oh, you get a line of credit. So your goal is to get a line of credits in your portfolio. What do you mean when you say put your portfolio in a line of credit?

Speaker2: [00:56:44] Because I have a I have selected a bunch of properties, you know, and you know, I’m about to sign a contract, but I needed I needed a proof of proof of fund. So by having the line of credit, you know, having a backup investor, you know, can show his path, you know, saying that, OK, I have this amount of money you’re going to put in this portfolio so you can you can go ahead and show it, you know, and then so I can sign the contract because you cannot sign the contract until you can show know of proof of fund. So, you know, it’s kind of like tricky, you know, turning in a circle. So I don’t know what you think of that, that basically what I’m trying to do is is get a relationship with an investor. You can say, OK, I’m with you. You can go ahead and sign your contract. You know, we’ll revise them and see if, if any property feeling out in our process and our system. But if you don’t, we’re going to reject it. But if it does, we’re going to take it. You know, you have this much amount. You know, it was some few few lenders that would do that in the past, but they kind of get out here in the United States. They used to do it in like twenty eighteen. You know, they will set up a line of credit for their clients. And then you go out, you find the properties and they they review the property. If the property you feel is in line with their system, they they would approve it and you can go out and get more properties so you build your portfolio with the line of credit they give you.

Speaker1: [00:58:50] Oh, no, I get it. There are a few ways of playing this game because. Ok. Ok, sure. Yeah, because some people that come to us and then they ask us for these for some sort of they actually ask us for letters as raisins come so we can actually write one for you, actually. We can do it. Oh yeah, we can do that. The only thing is is because all we say, it’s we can do a non legally binding one. An indication of potential interest. We would then, you know, typically this thing that we do, we just put that in a letter. And it can be very convincing. Maybe that will be enough to we send you the whole process now to get that started. So that’s OK. But number two, I mean, it may be productive for either one. Some of the introductions may be able to do it. Unfortunately, like original Kent’s like, yeah, they they would give. The equity is already there. So this is already saying, are you just looking for people to do like seventy five percent LTV and then they would.

Speaker2: [00:59:58] Well, I mean, that’s the advantage of the line of credit. There is no LTV. It’s just that, you know, the property had to fit in there in their system. So basically, if they say we cannot, I mean, we found two hundred units, you know, or commercial office or medical office. And you come in with a warehouse that said, OK, no, we don’t take that, but if it’s a medical office, they’ll take it and let you. Let you show that you have money. Hello. Can you hear me? Yeah, I can hear you, OK. Yeah, you still you still have money. Is there is money available? You can go ahead and sign the contract.

Speaker1: [01:00:53] Got it, so OK, yeah, we got to introduce you to this company, too, I mean, there’s also, you know, they do deadlines as well. They’re very good.

Speaker2: [01:01:02] Yeah, that’s what I want. I want that I don’t want. I don’t want my company to be diluted, actually, so I want that.

Speaker1: [01:01:11] Ok, good. So I hear the terms we’re able to get. It’s a bit of a, you know, it’s like, I mean, it’s not as if I mean, we have to do a bit of work ourselves because what they’re doing, they’re saying up to five million is what they would give raises. But it’s like they do. You have to match it. See, that’s the thing. But you just emphasize the part that they would do. It’s basically basically they want, they want you to produce. I can even send you this as well. They want you to produce as much yield and do this much. And then based on based on the types of returns you get, essentially, they’re like a cog in the hard money point, because if you perform to this level, then they’ll be able to give you 10 times leverage because you need five, you need five hundred in the bank account and then you can leverage it up to five million. So that’s basically the terms that we were offered. And yeah, we can just put you in touch with their CEO or whatever and then for consideration. But we have our own special, so we have these guys, we have our own special letter that we can do. And maybe, yes, yes. But in most importantly, the number one thing is to get actual people that actually would invest, right? Because if if they believe, if they believe you even after the racist letter and then we work on a deal, we still need to find the money anyway. So. So so as long as we try to actually see if the deal is plausible, matter can help you underwrite. He’s a chartered financial analyst like we can underwrite it for you to see the probability of things happening. And then, yeah, we will hit the market from there.

Speaker2: [01:02:46] Yeah, because I mean, you can you cannot sign a contract. I mean, if you want a 20 million property, you know, they would not they would not look out of contract if you don’t, if you don’t show any proof of income or any proof of fund somewhere. So that’s why that’s why I’ve been turning in a loop all this time, you know? So if you can, if you can solve that problem, I think I think we almost. Almost there.

Speaker1: [01:03:17] Yeah, absolutely. And I think I think that we can because once we have to deal, then at least then you can. It’s kind of like it’s a chicken and egg thing, right? It’s like you can’t.

Speaker2: [01:03:27] Exactly. You know, I mean, you’re trying to get a property to get to get some money. The property has equity. It’s got plenty of equity. But nobody, no, you can’t sign a contract because you’re not showing any the money you want to put in the property and then the lender is not going to. It’s not going to show his money until, you know, you sign a contract here. So. You can’t you can’t advance, you can’t go anywhere.

Speaker1: [01:04:02] Yeah, it’s it’s like the it’s like the it’s like the PPE thing, right? It’s like I want to see and I want to see proof of the deal and then nothing happens. Yeah, yeah.

Speaker2: [01:04:13] Thank you. Thank you. So I send I send my my draft proposal, my draft kind of proposal to support, you know, so you know, I’m still working on it. But if you can review it and I mean, if you can have someone review it, did you send my do?

Speaker1: [01:04:36] Did I yeah, I can hear you. Can we have somebody review it and then you ask the question?

Speaker2: [01:04:41] Yeah, if we can have someone review it and let me know what they want to see in that proposal, or you know how they want that short summary to be presented, you know, so we can do properly.

Speaker1: [01:04:57] Yep, absolutely. Sometimes we even do that on calls like this, but send it over at your time and then we’ll take a look.

Speaker2: [01:05:03] We’ll get it. Yeah, I already I already sent it to support.

Speaker1: [01:05:06] Oh, just now. Ok.

Speaker2: [01:05:08] Yeah. Before, before the meeting.

Speaker1: [01:05:11] Ok, perfect. Would it be appropriate if we go through it now, or should we go through it at another time?

Speaker2: [01:05:16] Well, yeah. Yeah, we can.

Speaker1: [01:05:18] Ok, let me pull this up.

Speaker3: [01:05:32] And not to I hope you can hear me.

Speaker1: [01:05:34] Yep. Yes, a cancer.

Speaker3: [01:05:36] Oh, okay. So I was going to say to Ali, what what I’m doing on some of my projects is, you know, I just have some high net worth fast clients. Ok. You know, they they aren’t going to invest in the deal. They are. They are not investors, but they do have high, you know, high value banking relationships so they can produce, you know, 10, 20 million dollar proof of funds letter in exchange for that. If the deal goes on the contract and if we were to close and execute, they get paid. A small percentage could be like a half percent or one percent. So basically for a bank for having their bank print out a letter which is a phone call for them, they can do a half percent so far. You know, they seem pretty eager because, hey, they have no risk. The agreement that Damini will have is that they are not liable for the closing or whatever it is. So then, you know, so that’s one way. And then,

Speaker2: [01:06:50] Yeah, I mean, I’m down with it. I mean, if I do is OK with it, you know, I’m down with it because I don’t, you know, we are in this process. I don’t I don’t want to deviate, deviate.

Speaker3: [01:07:03] Yes, I’m

Speaker2: [01:07:04] Afraid to bring anything illegal in. But I mean, they have lawyers. If they can, they can look at it and say, Yeah, it’s good to go. We can do it.

Speaker3: [01:07:13] Well, you know, these guys wouldn’t do any and every deal. But what I’m saying is if you know people like that or to Matthew’s relationships, he knows people like that. First of all, you’re just trying to get it under contract. So you need a proof of funds just to put it under contract. And then from there you can. You may buy yourself, I don’t know, three months to raise the funds, but at least one of the things that if you send your deal out to an investor, would it not be in the contract? You never know. They may go directly to the source, right? I just do it on the contract for themselves.

Speaker2: [01:07:51] Yeah. Sorry. Yeah, Naidoo, it’s not. It’s not this for me. It’s I’ve just sent it to the to the email.

Speaker1: [01:07:59] Oh, OK. Yeah. Let me find.

Speaker3: [01:08:03] Yes, I got a jump off, but I’ll talk to you Wednesday. All right, if we’re doing a call Wednesday,

Speaker1: [01:08:10] Yup, Wednesday last one of the year. Take care. And if you want to work with if you want to work with L.A. and feel free, there’s no nothing’s preventing you from working together.

Speaker2: [01:08:19] No problem.

Speaker3: [01:08:19] Ok, sounds good, man.

Speaker2: [01:08:21] Sure. You have my contact.

Speaker3: [01:08:24] I think you’re probably in the WhatsApp, right?

Speaker2: [01:08:27] No, I’m not in the WhatsApp. I’m in in a signal.

Speaker3: [01:08:34] Signal. Yeah. I don’t I don’t I don’t know.

Speaker2: [01:08:37] Yeah, yeah. I don’t like to do business on WhatsApp. Have you just called my family with that?

Speaker3: [01:08:42] Okay. Okay. I don’t have signal, but.

Speaker2: [01:08:47] Well, it’s really easy to get in. It’s it’s more it’s more safer. It’s you know, there’s there’s signal and there is a there is a another one. Let me see here.

Speaker3: [01:09:04] Ok, what I’ll do, I’ll uh, I’ll just put my email address. I want to know how to get my email address to you.

Speaker2: [01:09:15] Or you can just read it in a comment in a Q&A.

Speaker1: [01:09:20] I can tell you what I mean, I can always connect you to.

Speaker3: [01:09:23] Oh, okay, yeah, it’s fine. Thanks.

Speaker1: [01:09:26] Yeah. Everyone on this entire thing. So I can just connect you.

Speaker3: [01:09:30] Yeah. Okay. Thanks, Natalie. You take care of how you do.

Speaker1: [01:09:34] See you. Bye bye.

Speaker2: [01:09:36] So if you can find it, is there any way I can? I can base it anywhere in the in the Q&A or something?

Speaker1: [01:09:45] Yep, you can paste in the chat. I’m just trying to dig out. We’re actually just switching support support software, so I try to dig it out right now.

Speaker2: [01:09:55] Ok, let me let me try. I don’t know if it’s going to. Well, that’s another. Look. Ok, so you got it.

Speaker1: [01:11:20] Oh, in a chat. Beautiful. Yeah. Okay, beautiful. Thank you. So. Ok. This document is for none. Let me just. Ok, so this document is for so matter, I don’t know if you can see this. We can go through together, if you like.

Speaker3: [01:11:39] So I cannot tell you right now.

Speaker1: [01:11:42] All right, no worries, let me just share this so I can make sure you see it.

Speaker3: [01:11:52] Did share screen.

Speaker1: [01:11:58] Okay, Maddie, you can see what I got to my screen right now, right? Yeah. The perfect. So, yeah, so this is just a quick summary that I put together for his deal, so let’s see here his proposal. So this document is for.

Speaker3: [01:12:16] A definition. Two hundred million. These. Ok. Positioned. This is.

Speaker1: [01:12:44] In fact, I think something got cut off. Ok. Ok, so I mean, overall. Mm hmm. Yeah, I mean, a few things, I mean, coming from the so I like the way it’s to the points and everything, so coming from the calls that we had with Kenneth, who is a JP Morgan guy, I talk a bit about about benefits, more so because you’re talking a lot about features, right? I’d emphasize the benefits. What is the benefits of them being backed up with the line of credit? And I’d put that right at the top. Yeah, because here are the. Ok, so we’re talking about you. Proceed as follows and just follows and you’re saying that, OK, you’re going to acquire it and develop it. And then so I’d say, OK, so for each, what’s the benefit, so benefit one. Because this is so this is a feature. Mm hmm. What’s the benefit? So I guess what are the what’s the benefit here?

Speaker2: [01:13:46] Yeah, I was going to put it in a development in the action at the bottom. But yeah, it’s good to put you a note on it.

Speaker1: [01:13:56] Ok. Good idea, because I even. We’d I’d even I’d even leave this with I put the benefits here benefit one benefit to benefit three benefits four. Yeah. And benefit five. And then so the features are here and then the benefits are here you get.

Speaker2: [01:14:15] Yeah, so I was going to I was going to take each each line number one acquisition basically and development of a property management. You know, I mean, so it’s going to reduce the payment on the property we’re going to have we’re going to control the management of those properties, which is since it’s an acquisition, you know. And so we look at we’re looking at a property management that’s already making some some some income. So that will start right from the get go to make the payment to back to the to the to the investor while we get the properties together. And then the second thing will be to get the product into the properties together, you know, sign the deals and we start making the payment back. And then when we’re done, we we on on the third step, we go to the core of our business because what we wanted to do is is buy some I.T. businesses and with with income, you know, and run it, run it, develop it and running. But you know, it’s better to have, you know, safe income producing, which is which is realistic. So we’re going to start with the real estate and then go to the it, develop some apps and do plenty, plenty technical things.

Speaker1: [01:16:00] And in just a second step to run for one minute, just a second. Ok. Sure. Yep. Sorry, apologies and back. Oh, no

Speaker2: [01:16:47] Problem, no problem. Actually, you know, we over the time, if you if you want, we can finish on Wednesday. But if you want, I have time. If you if you have time.

Speaker1: [01:16:58] Yeah, no, I have a lot of time. We usually run these calls up to two hours plus of need.

Speaker2: [01:17:04] Ok, perfect. So basically the the third part will be to build those, those I.T. businesses to build a IT business, basically, you know, to help small companies, you know, coming up, you know, by doing their, you know, I mean, basically get them ready to put them in the line of what you’re doing so they can get financed. And then, you know, we we can expand that going in. And you know. Creating some fine tech, you know, and and to make the property management applications. And then we also have e-commerce e commerce, where we have plenty of styles, we have electronic and plenty more stuff. So. So we need we need to boost that a little bit, too. So.

Speaker1: [01:18:17] Ok, got it. So, OK, so it seems like because with this like understandably, it’s it’s like a long road, right? Because you may you may you may benefit from from fees in the Saudi or attraction this out because sometimes, you know, a lot of people like they would have a deal, like there was one person that they had like a $400 million ask right for a deal. And then it was like, OK, so then OK, so then the deal it was it was like, they’re building a film company and everything. Yeah. And then I mean, the thing is, like, understandably, like they didn’t have the land yet. So it was like a completely different type of transaction. You know, throughout the entire process until the end. Yeah. Yeah. My point is, and based on even the last call, I mean, you may benefit from from looking at different ways of trying it out and phasing it out. Yes. The types of lenders that may I mean, maybe they can do the entire thing, but the types of lenders that would be interested in phase one would potentially be different from the types of lenders that will do. Phase two.

Speaker2: [01:19:24] Yes, that’s true.

Speaker1: [01:19:26] So I mean, I look at like for each of these phases, like what is the capital amount? Because that investor won’t be subject to the same, the same thing. I. And I would be curious on what the numbers are for each. Yeah. Yeah. Because it’s a very long I mean, this is a very long process. Mm hmm. Building the land, the land all the way to,

Speaker2: [01:19:49] You know, I mean, I’m going to develop it. But I was thinking, you know, someone might understand it, you know, understand the whole process and say, OK, well, we’re going with you. But you’re right. You’re right. And I can. I can. I can develop it. And so they can see the step. If they want to do step one, we go, we go, do the step one. But what I wanted to do is make sure I stuck with the step one because the step one we really don’t have to bring anything in the platform is is already made. Actually, we have several of them in in in file already. The platform is already made. They already have clientele. They they they already functioning. So, so so we get that acquisition and we get some income, we get goodwill property as well. So from there, it’s going to just get going and we have income every month to to make the repayment of the loan. While we get we get progressively, we get the properties and in place. So that’s the way I was thinking. But I think what you’re saying is right is right. We can we can still split it.

Speaker1: [01:21:22] Well, it’s good. Well, it’s good that I mean, these are acquisitions, right? Because you’re not building it from scratch, you know? No. For example, for somebody like civil, they’re underwriting quite like, for example, they’re underwriting criteria would be like, OK, what is the strategy of this debt line? What is the thing? And then they like, split it up based on one idea at a time. You may find other lenders that would do multiple strategies because, oh, you know somebody who’s doing an acquisition for property management companies? Because I understand property management companies and I’m a property management company lender, it’s all you may have somebody that would just do project finance, but then because I just one of the principles that raises a column is just always going towards simplicity. Whenever you can just reduce the variables and say, Oh, let’s just look for this type of deadline because we’re doing this type of deal so that if somebody says yes or no, we know we can track why, because somebody may see this and they may say no because of the e-commerce acquisition. Another person may say no because of the the property part, but it may say yes because of the the the app part. Basically, we just want we just want to reduce the chance of people saying no. Yeah, yeah,

Speaker2: [01:22:36] I think that’s good.

Speaker1: [01:22:38] Yeah. But then there are some people that like, for example, the financial one people they would they would do a deadline for anything. So it depends on the investor. But I just say overall, like if you were to look at the first thing that we need to get done and the first thing we need to get done is the property management company. Yeah, I just talked to property management lenders right away or lenders in general, and it’s focused on this. Okay. And then if you’re talking to somebody that’s, you know, they do e-commerce, then I wouldn’t even talk about anything else until until you just talk to them about e-commerce. Okay, that’s good. It’s probably the best way. And one more thing I would talk to is Steve. He runs a he’s a he’s a he’s a client and he runs end to end computing. He’s working on raising thirty something million for his. He has to come. He lost one of his deals. He was going to raise like 80 million, but he lost one of his deals in Mexico. But then he has one left, so he same process. Except for its acquisition, he works on acquiring getting an LOI for a cybersecurity firm. His company like, I think, a few hundred thousand a year. So they need a proof of funds because at least he was doing like, I think, one million or something. Or already the guy wasn’t fussy. So he got the proof of funds. And then he found an investment bank through through one of the people on the portal. And then he’s working on closing it, hopefully by January. But let’s see. But my point is like, you want to talk to him because you want to see, yes, please use because the he he’s already spoken to people and they think Bain Capital may be interested in the I.T. acquisition stuff.

Speaker2: [01:24:17] Oh, OK. Yeah. Can you can you send me the referral, please?

Speaker1: [01:24:22] Yeah, I was. I was sending to him directly. Okay.

Speaker2: [01:24:24] Sure. That’s good. That’s good. It’s good. So, so basically, you know, I mean, for the. So I mean, if we proceed that way, I’m probably not going to need a pass, then I’m not going to need a, you know, someone to show some ink or some some money because the acquisition. I don’t know if they will. The bank will will need some some meat to show some money before, because before I try, I try some it acquisition. And they they they were telling me, No, we’re not looking at the company you, you are acquiring. We’re looking at you. Your, you know, your team, your your income, your and all the stuff. And I got stocked. But good, you know, because I got stock, I discovered you. So good thing for me, you know, so the the property management we do, you have any any plan, we can work

Speaker1: [01:25:38] On it right away. Yeah. So property management, so a few things. One is, yeah, like I think the letter of commitment thing is overrated because I know somebody called Sebastian Ameba and he runs a he runs a group where the students in this group, they come to me for letters of commitments. Okay, which is the same thing so that there are deals with let them buy them. So I mean, this happens to me all the time. And so I think you may be able to get away with it. But in for property management, the first thing I talked to, I talked to Camille. Camille, I believe, is real estate generalist. Ok, what hurts firms are so that’s one. And the simply the so that’s one number two would potentially be the

Speaker2: [01:26:23] Yeah, I have the referral for Camille. You already you already did it for me.

Speaker1: [01:26:29] Ok, there you go. Good.

Speaker2: [01:26:30] Yeah, you did it this morning. For me, that’s thank you.

Speaker1: [01:26:34] Ok, no worries. I mean, it’s automatic. So because we have so many to do right?

Speaker2: [01:26:38] Oh, OK. So what would be the plan you think? I should? I should make a quick summary on just the the the property management. Yes. And then send it to her.

Speaker1: [01:26:54] Yes, it’s what I would do. I would look at, OK. Because you mentioned this briefly, I would look at the. And so the only thing I’d change, I’d say, so here’s probably the subjects I just talk about benefits more so it’s like, OK. Mm hmm. And so you probably would change this based on the value of the like. I don’t know if it’s going to be up to this much.

Speaker2: [01:27:15] But you just say no, it’s just five million,

Speaker1: [01:27:18] Ok, five million. And then I would say, like, Yeah. Line of credit or any notes. And then you would say the benefits in the in the terms you would potentially offer, because that’s so typically when people are selling equity, you can break securities law by telling the terms of somebody when they’re not supposed to. But because you’re already talking to people that are you’re talking about debts and debts is very easy. So you can just say, OK, the legalities are much more lax. I’m not a lawyer, but it’s more easy to say things in it. So I just see the terms of the deal, the amounts like the interest, the interest you would pay, like the benefits in terms of structure.

Speaker2: [01:28:02] Yeah, yeah. The company I’m looking at, they have a good cash flow. So I don’t I don’t mind, I don’t mind paying good interest because that’s not my final. In my final target in my target is is to get those properties and get them managed well.

Speaker1: [01:28:22] Yes. Makes sense, if there’s any story about the you can emphasize any any story about the the experience or the team or any reason why, like after your acquisition, you would be the person to make the deal better off than how it started in the first place. So if you were that case, then and that’s it, this doesn’t have to be any longer than like three and three or four sentences. Oh, they probably wouldn’t even read the sentence after the third sentence. And I guess the final thing is like, I would just say, Hi, my name. I saw. That’s your. This firm does X. And the reason why I say this, so I say I would say. It was the first one here, and. It was a first. Oh, yeah. Property management. Just. And the reason why is because it shows that this ad customization, right to make it look as if you actually care about the person that they’re that they’re not just the bank they have because it’s a human. So that’s just something quick like this? Ok. And then the call to action at the end.

Speaker2: [01:29:53] Oh, they recorded. Pardon me. Is the call recorded or are you sending these notes to me both?

Speaker1: [01:30:03] I can also say, Oh,

Speaker2: [01:30:04] Oh, perfect, that’s good. It’s good. I was going to take notes, but.

Speaker1: [01:30:10] Yep, exactly. That’s why. So yeah, this is the call to action because the call to action is like. Because if they read the nice deal, if you don’t know what to do, then maybe they don’t know. Maybe, maybe they won’t know what to do unless you tell them so. As long as you say OK, when it would be appropriate to discuss, let me know. Or if you have a link to a calendar, you can put a link to a calendar. And then that’s it. This is usually the formula we use. And then after this, I mean, either either though, either it’s an NDA and then they’ll start to see because typically it would be like, OK, yeah, let me see. The deal’s commercial mortgages commercial vehicle is also really good for this as well. We have some people who would eventually get these deals done, but the thing is like, they’re going to usually ask, OK, what are the deals? And then it’s like, OK, well, I have to find the deal. And then and then you may say, OK, I need the I need the I need the proof of fund. But but because like getting the money it’s been our experience of getting the money is harder than getting the deal because. Yeah. Right. So we suggest that the same people that are going to fund the deal. It may be best just to talk about them, about funding a deal rather than getting the funds, and then just to find some alternative people on backup to get the proof of funds like, for example, that is best may be really good if his people would do it or if if our letter is good enough for them, as long as you just leave you alone and then you don’t have to use the same funder as the funder on a proof of funds. As long as they’re happy. So yeah, so you know, then then that’s it. And then we just work on actually closing the deal and selling the deal and then seeing if it will be done in a few months. And that’s it or less. All right. All right. All right.

Speaker2: [01:32:07] Right. That’s a good plan. That’s a good plan. In one month, it’s going to be a good start. Good news start.

Speaker1: [01:32:18] Exactly. And I’d say and I’d say, I mean, let’s let’s just be let’s not be overoptimistic to. I mean, it may be hard, but it’s always hard. But I’d suggest one of the cafes matter here can underwrites to make sure that if there are any risks and deal anything like he can pick this up. And that’s pretty much it, then we just sell it and then try to get it done.

Speaker2: [01:32:42] Ok, OK. Yeah. Yeah. Hard, I hard, I mean, you know, I mean, I’m excited, but you know, it’s better than when I didn’t have anything in the horizon, so.

Speaker1: [01:32:58] Exactly, is this one step at a time, and is this until the money gets sent to the bank accounts? Just we just have to stay, you know, even even headed here because, you know, even when it gets to the closing, even even near the end, it can still sometimes not happen. So we just have to just keep on selling it until the money gets wired. And then that’s it, OK?

Speaker2: [01:33:21] And you know, I mean, I have shut down my my website. Do you think I should? I should get it ready now that we kind of introducing things in the system?

Speaker1: [01:33:34] Oh, you mean your websites for the just Invesco?

Speaker2: [01:33:39] It’s what?

Speaker1: [01:33:40] Just so people like, is it for for the investor to do? Yeah. Yeah. Good question, so I mean, a few things one is like because you’re only seeking debts and you’re not seeking equity investors. You know, the only time that we’ve seen the website’s really useful is if people are getting equity investors in and they want to check if they’re accredited. Ok, OK. So, you know, unless you’re trying to do that for finding accredited investors and you know, you can do that, but then it’s just to build more relationships with like a credit equity investors or maybe like a real estate deal or something like it could be beneficial to do that. But because of the deal and you’re looking for lenders, if the lender, if it’s easier for us to find equity investors and then we start to focus on equity investors, then making the website may make more sense later on as long as as long as, like the due diligence, check out they Google you. They don’t see anything come up and everything should be fine.

Speaker3: [01:34:43] Look.

Speaker1: [01:34:49] And when play, I mean, websites do help, because I mean, if you’re emailing and it comes from it comes from like, I think you already have your domain fly.

Speaker2: [01:34:56] Yeah, go to Mexico dot com.

Speaker1: [01:34:58] Yeah, then that should be fine. As long as it’s not Gmail, anything is better than Gmail, so it’s good.

Speaker2: [01:35:05] Well, my email is Gmail, it’s Glenn Vesco at gmail.com, but I have my private email as a line along be at Invesco dot com.

Speaker1: [01:35:18] Ok. Let me that may be slightly better yet, because some people, when they see Gmail, they they think, OK, is this a person? But when they see, you know, our website, then it’s like, OK, it’s probably a business. So.

Speaker2: [01:35:29] So I can I go and change it in the system or can you change it in the system? For me, yes, it’s my first name be.

Speaker1: [01:35:42] So first, so it’s Elaine that be

Speaker2: [01:35:45] At Invesco that come.

Speaker1: [01:35:49] Ok, got it. We’ll get the right. We’ll add it in the

Speaker3: [01:35:55] Ok, thanks thing.

Speaker1: [01:35:58] Be good. Yeah, because I mean, it looks more. It’s this optics just sails, right?

Speaker2: [01:36:03] Yeah, yeah. And it’s faster, but I didn’t want to, you know, it’s much better. It’s much better.

Speaker1: [01:36:13] Got it. I agree. Yeah. In a matter of, I guess, if you’re still around matters, so I mean, this is more high level stuff, but I mean, from a point of view, is there anything you would recommend for somebody looking for a deadline in this quick? Just in this quick.

Speaker3: [01:36:34] Proposal. Yeah, I mean. The thing that that you mentioned did does make a lot of sense, like breaking it down instead of having it all together, because this covers a lot of stuff. Mm hmm. And on the specifics like, I can’t really think of anything but, but you know, once like I have a draft and I go through it like, I’ll be able to

Speaker1: [01:37:00] Take more

Speaker3: [01:37:01] Stuff. But but I cannot really think of anything right now. Ok. Yeah. Okay.

Speaker2: [01:37:09] It’s really good, that’s really good. So I’ll get this note and do do another draft, you know, and split all the all the five items.

Speaker1: [01:37:25] Perfect. Right. Yeah, yeah, I think matter, I think he’s addressing you here.

Speaker3: [01:37:33] Yeah.

Speaker1: [01:37:33] So can you please repeat that?

Speaker2: [01:37:36] No. So if if I get this note from Netanyahu, I’m just going to I’m just going to spit all my five lines, you know, like the first one is acquisition and development of the property management company. You know, do one. One proposal for that, you know, showing the benefit. And I’m just trying to repeat so I can stick it in my mind, you know, showing the benefit and all all the all the questions that Naidoo mentioned here. And then take the second one, which is the the acquisition of the properties. Do a second one. Should I do it step by step or do I? Should I bring all of them in together? And I mean, not together, but like, you know, the proposal for the property management, the proposal for the for the properties acquisition and then and then the proposal for the eight businesses and then the proposal for the E! Commerce.

Speaker3: [01:38:50] Ok, so, so on that I would say that, you know, so you sense your plan is so for now, your plan is to start like get the line of credit to to, you know, just for the initial the first investment in the property management. So I would start with that because that’s the target. And then, you know, when you move ahead with their next plans. And so like, I think it would make more sense to approach it one by one, even even on a deal, because like all these like parts are like quite elaborate by themselves. So it would make a lot more sense to just tackle it one by one instead of, you know, compiling it all together. Ok.

Speaker2: [01:39:36] Yeah.

Speaker1: [01:39:38] Got it. Yeah, it looks like we’re singing from the same hymn sheet yet because mainly because the I mean, the thing seems to be contingent upon because it seems like you need the property things to happen before you get stuff to happen. And so because the contingencies, I mean, I still find a way to originate on, maybe get an assistance or some, just like on your spare time to originate some deals here. But because this is the this is the bottleneck. I was just focused on the ball because without the property, like, you know, the thing is not going to move forward, right? So yeah, exactly know.

Speaker2: [01:40:09] I mean, I have seen people when I was doing financing, you know, getting properties and then, you know, the business fall down because they couldn’t control the management of those properties.

Speaker3: [01:40:25] And and even if you, you know, think from a perspective of, you know, like just just putting quality material out and and even for yourself, like when you are preparing or even for myself, like when I’m reviewing it, it just it would give us like, you know, it would make us like, spend a little more time on each thing and focus on like one thing at a time instead of like having all combined together, then you would be thinking about, you know, if this is, this has happened and how would you approach the next thing? Yeah, it’s not like it is all contingent to the first part happening.

Speaker2: [01:40:58] Yes. Yes. Okay. So I’m good.

Speaker1: [01:41:06] It awesome. So we’ll make sure we get this these items to your email as well. Ok. Oh, we see Mark is on the call too. I don’t know. Mark could be just listening or you have any, any thing to jump in at or any questions. But yeah, we’re still here, Mark. If you have any questions or anything. And if you don’t see that market, that’s not a problem, you just want to stay back. Well, Mark, is there anything else, Alan, or why we’re here?

Speaker2: [01:41:42] Um. No, that’s that’s that’s all I have to do. I mean, so I was trying to go directly into the system, but it wouldn’t let me until I finish those those on boarding and all this items I have to go through, right?

Speaker1: [01:42:07] Yeah, yeah. Because I think it’s the on boarding form. So he was saying, Yeah, he wants you to do this. Yeah, yeah. When you have some seconds, if you do it, I just organize.

Speaker2: [01:42:18] Yeah. You know, I was going to finish it this weekend. But you know, I’m also doing an MBA and, you know, doing your insurance license. Oh, yeah. So that’s that’s why, but I’ll make sure I finish it before the next meeting. And that’s on Wednesday, right?

Speaker1: [01:42:43] Yup. It’s on Wednesday, and then I’ll be the one before we take the the whole holiday New Year Christmas off.

Speaker2: [01:42:51] Oh, OK.

Speaker4: [01:42:53] Okay. Yeah, this is Mark here. I just wanted to say that I agree with what you guys are saying. I like simplifying your offer for more clarification and clarity to the investor and doing like one at a time. Ok. It would be my. Advice as well.

Speaker2: [01:43:16] All right. All right. Thank you.

Speaker1: [01:43:20] You good, I mean, I mean, he’s setting up a fund, so I mean, it’s from that point of view as well. Okay.

Speaker2: [01:43:28] Oh, it’s is is a founder, is an investor.

Speaker1: [01:43:33] Well, I mean, a fund in the sense of like originating investors to originate in the same sort of the same thing as what you’re doing, but in a more like from like companies that are the concrete needs. Because I mean, a lot of people are working with their fund or new fund managers or emerging fund managers. And so I mean, yeah, I mean, they’re deploying capital into their deals, but the capital comes from investors that are not them usually.

Speaker2: [01:43:59] Oh, OK.

Speaker4: [01:44:01] Yeah. So I do like mostly real estate land development, stuff like that. My dad was a developer for 30 years and we developed we close the land deal and September 20, twenty two hundred seventeen acres and we were able to convert it into four hundred lots. We were able to do our first phase this year. Well, actually started in December of last year and we did 27 lots. We’re going there into our second phase. But I had the same questions as you when I was kind of getting started, it was like, OK, you want, I want, I want to do this. I want to do this. How do I explain it in clarity to everybody? And I just kind of like had like, you know? And you know, I haven’t started my fund yet, but you have to kind of look at it from the investor’s side. They’re going to want clarity. They’re not going to want, you know, you’re doing this, this and that. They’re just kind of want to hear one good thing that makes sense, you know? And then from there, they’ll trust you to do other things. This is what I’ve.

Speaker2: [01:45:07] Yeah. Yeah, yeah. Ok. So I’m really good.

Speaker1: [01:45:13] Yeah, especially, I mean, especially if they’re into debt, if it’s debts, especially because the debts are just so strict, the lenders are under parameters, right?

Speaker3: [01:45:22] Oh, really?

Speaker1: [01:45:24] Like as a generality, like if you compare it to the equity people, is the equity people, you know, especially the smaller equity investors, they’re more swayed on the types of transactions, but that’s a private money lender or a lender, so on. It seems to be more strict just as a generality. Yeah.

Speaker2: [01:45:46] Yeah, so so I mean, I’m glad you’re talking about that. Let’s bring another question what do you think you know from your experience? What do you think I should offer? Or should I look at the the the lenders I want to send to, I want to send the the the the application to and and just go with their rate or if I have to do a general proposal. Well, what rate do you do you have in mind and basically what term I should? I should, you know, put in my proposal because the first proposal I did, I put 10 percent for 10 years. You know, I don’t know what, what do you think? Not this one, but I did one before I didn’t send it.

Speaker1: [01:46:38] Ok, got it.

Speaker2: [01:46:39] Yeah, so I did I put in 10 percent for 10 years. Interest only, so I don’t know if if. What do you think from you guys experience?

Speaker1: [01:46:55] Yeah, so I mean, it depends on the deals originated. So but the first question whether you should do equity or debt, you always depends on what your goal is and what you want to optimize for. Because like, if the goal is speed and you want to get this done quickly, then debt as a generality that’s usually moves faster than equity. Ok. But people are more strict to make up for it. So, I mean, if you want to optimize for speed, then debt is good. Equity is. You know, you’re dealing with things are more customized and. You know, like basically, you know, things are more things are more fine tuned. Maybe you can create something that converts to something else. You know, basically things are more flexible as a generality with equity. So then the the way that you’re saying, OK, I want to know what rates to ask the market for. You know, that’s why you know, things can get either underwritten or there needs to be some sort of like to understand what what types of like, you know, free cash flow the company can produce and all that. And then that’s kind of company cover. Is there any seller is a seller of the company or the company has been acquired? Can they handle the loan that they’re going to get to acquire it? And if they can handle that, what else is left for the company to be profitable? So those are the types of questions.

Speaker1: [01:48:21] That’s and that’s why I mean, matter is fantastic at that in terms of just giving you like a reasonable expectation on how it would look like from a financial point of view, like what are the what terms would make sense for an investor after the loan is handled based on the the cash flows of the company? So that’s something that would matter would analyze potentially that you to bring it to him. He’s great at that. And then based on that, it then it becomes like, OK, how much do you want to make based on the analysis after that? And then that’s pretty much what I would look at. And then that can give you an understanding to see if if the deal that if the proposal that you put forth is fair because we like to act as a as an independent third party. So because that’s part of the reason why we don’t really position ourselves as a CEO or anything. We’re independent in that sense. So that’s if somebody asks you for, OK, what’s your valuation? Yeah, I mean, a charterholder gave you that valuation as a third party. So it’s just to kind of understand what you can potentially get out of something in the fair way.

Speaker2: [01:49:28] Yeah. Yes. Ok. Well, you know, I mean, I don’t know, but. You know, thank you guys very much, you know, my you know, you cleared the cloud that was in my mind, so I’m going to I’m going to do you know the different proposals and send them through, you know, for your review and then we go from there.

Speaker1: [01:50:00] Perfect, perfect. We have a lot of work to do and we’ll take it one step at a time to get this done.

Speaker2: [01:50:05] Thank you so much.

Speaker1: [01:50:07] All right. No problem. Have a good evening.

Speaker2: [01:50:09] Yeah, you too. Thanks a lot. Appreciate it.

Speaker1: [01:50:11] Thank you. All right. I’m I assume no more questions, OK, no more questions for him. All right, everyone. I think that’s it for now. Good night matter and Elaine and everyone. Thank you for that. Thank you.

Speaker3: [01:50:29] Thank you. Yeah.

 

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