Investor Strategy Call – December 9th
Speaker1: [00:00:53] Then I do for you.
Speaker2: [00:00:55] I’m doing really well. How are you doing this week?
Speaker1: [00:00:58] Good. Good. Just busy.
Speaker2: [00:01:01] Yeah, tell me about it. Me, too. So, yeah, we sent out the notification. Let’s just see who pops in and just for a few minutes, take it from there.
Speaker1: [00:01:12] Ok. And Natalie, if I can talk to you about that, so I’m sure you know a little bit about.
Speaker2: [00:01:30] I mean, obviously, if there are no questions, there’s no worries. I see Caleb is joined as well. Eclipse, so same process, you’re internal, but same process, if you have any questions about the own deals that you’re working on. We can go back and forth. All right. No questions, no worries. So I guess in the mean, OK, I would see Caleb allowed to talk. Yeah, hi, Nancy, how are you doing? Hey, doing well. How’s it going?
Speaker3: [00:02:22] Excellent. So Voss is ready to join, I’m actually going to send up the Zoom link
Speaker2: [00:02:25] To join this live call, so might be a bit of a one on one between you and him kind
Speaker3: [00:02:29] Of questions and learning about his project?
Speaker2: [00:02:32] Fantastic. I mean, we have it matter here as well. So I think that would be a good, you know, let’s just get the momentum going. So that’s that works. Raises dot com slash meets and then you pop right in.
Speaker3: [00:02:43] Ok. Excellent, I’m sending him that now. Cool. Excellent. Well, we’ll we’ll touch base and slack and have fun with us.
Speaker2: [00:02:56] Thanks for the logistics, as always. Take care. So tell you what’s so, so matter, so, you know, I guess we can we can go through. I mean, it is it is in the domain of it so we can go through courts requirements, I guess, just for information. Right. So we can discuss that here. And then if anyone comes with any more questions or will or anything, then we can just jump out. How does that sound matter?
Speaker1: [00:03:22] Yeah, that sounds good.
Speaker2: [00:03:24] Let’s just sort out this UFC deal here. This one second here. And courts did give the permission for us to do this, so let’s just see.
Speaker3: [00:03:34] Ok, stop, share. I’d share.
Speaker2: [00:03:46] All right, so what was the item here, so let’s go through this one more time here. One one. So what was the question that we had mattered so
Speaker1: [00:03:58] So basically what what he’s saying, so I’ll walk you through the whole thing. So he’s saying, like the private equity fund is with like 2.1 five billion on day one and twenty seven billion on on year five. And so basically, I think like he’s saying, like he’ll start with 2.1, five billion, then they’re going to be an incremental increase of two. Twenty seven billion every month, there’s going to be an increase. And these are the investment he’s written like just below day one investments and then he’s written like, you know, how much would be the total investment in that in the brackets if we look? And this is all good. Like, I understand everything here, but the only thing is like, I could not really understand, you know, the investment is four million and and that gives 20 percent and 20 percent of the.
Speaker2: [00:04:52] Oh, yeah.
Speaker1: [00:04:53] And how does that link to the above information? I don’t I don’t really get it.
Speaker2: [00:05:01] So because I mean, he was saying so few things, right? So he was saying that and obviously, obviously there has to be a lot of back and forth correspondence to break this down because he’s the one who’s given out this information. Right? So that’s the number one practical way to just understand what he meant because we were just assuming but. Basically, just for context, basically, he’s originating opportunities, is this a bunch of people in simple English, a bunch of people saying that we’re raising capital for these deals or raising capital for these deals, right? Yeah. You know, those are the deals in quote unquote, his pipeline. So that’s that’s one and then he’s going to say, oh, his plan was to say, OK when I went to actually fund one, actually get the deals funded, either through introducing to an investor or working to introduce them to a broker, dealer and investor or whatever, then I’m going to be able to. You know, then I’m going to be able to position myself to start a private equity fund. So that was this whole plan. So, yeah, I don’t understand why. I’m not really moving anywhere, either, because I don’t really understand why he talks about four million here, 20 percent equity, whereas he’s saying all these large numbers.
Speaker1: [00:06:28] Exactly, yeah. Exactly my point. And the two point one, five billion and twenty seven billion that he mentioned, that is all the investment, right? So basically he’s saying that we will start with 2.5 billion, that we would be increasing the lake. The private fund would be increasing the investment to twenty five billion on year five. It would be a gradual increase to twenty seven billion.
Speaker2: [00:07:03] These are just and these are just deals that originate. So like it’s basically matter like even you could like anyone can do. This is just somebody saying, OK, I have a bunch of people saying that I’m raising funds. So like one guy said that he’s raising eight hundred million. Another person said the reason two million and basically the aggregate is two point fifteen billion. So that’s that’s all that is.
Speaker1: [00:07:24] Yeah. Yeah, that is fine, but. So twenty seven billion. So he means twenty seven billion is also the investment rate and not really the return here. Correct.
Speaker2: [00:07:36] I think it’s the aggregate of the companies that are coming to him to raise finance as a consultant. I think that’s all that is because I don’t know if you remember much of the last call, but remember he was saying that this company, this plans is coming to me. So then I’ll raise this much. So that’s really all that is.
Speaker1: [00:07:54] Yeah. So that’s why I got the above, partly because he wasn’t mentioning all this. The bottom part is is something that I could not understand the full thing. How does that link to the above thing? I don’t think he mentioned anything. Anything with regards to that might have missed it, but but I believe he did not. And yeah, the above part I understood because like he mentioned that and it wasn’t. It is quite understandable here.
Speaker2: [00:08:24] I mean, it could it could. It could work because it’s like. It depends on the valuation, right, but then it’s like, OK, so I always think of the valuation because if you’re putting four million into it. You’re seeing that the valuation of all this stuff is only. It’s kind of silly, actually, because you’re saying that you see that the valuation of. I’ve it’s like a tiny valuation compared to. The deals are originated. So the question then becomes. And the question then becomes, why is the valuation so low for your management of of the returns? Right?
Speaker1: [00:09:07] Yeah. So what I feel is the four millionaires. So you know how he’d say like hundred million is the minimum size. So I am assuming like he like he’s he’s not owning the private equity fund, but he would be investing in the private equity fund. And and the four million is the investment from an investor. So that would like, you know, he would combine like all the investors and put in the one hundred million in this private equity fund because that’s the minimum tax. Maybe you trying to do that, but
Speaker3: [00:09:44] Oh,
Speaker2: [00:09:45] That makes sense, that makes sense, basically taking a chunk of the deals originated, offering that as a fund. And then just OK, so that makes sense.
Speaker1: [00:09:55] Yeah, but I just wanted to make sure, you
Speaker2: [00:09:58] Know, so that’s the context. Let’s decipher it from there and what do you want to do? And I see that is just joined us and welcome that we just walk through the the process. But yeah, we’re just trying to decode one of the inquiries. So, so yeah, let’s come. Let’s let’s try to understand this valuation method of the fund, how you’d like to build and because he already has a legal structure to build it. So let’s just understand what what specifically he’s going to do to build that. Yeah. All right, so then yeah, we can hop back here, and that’s welcome, just the difficult process. You know, some people they join, they ask questions about investor feedback or what investors are saying or how to set up their acquisition or fund. We have to see if they are on the line as well. So any questions, that’s why we’re here. Simply just your fingers or raise your hand, or you can sit back and relax if you like. And I suppose I mean, let me know if you also want an orientation because I know that’s, you know, you just got on board in just a few minutes ago as well. We can do that as well, if that’s appropriate. Hello, good morning.
Speaker3: [00:11:43] Hey, good morning.
Speaker2: [00:11:45] It how’s it going with you today?
Speaker3: [00:11:48] Oh, you can hear me,
Speaker2: [00:11:50] Yep, I can hear you.
Speaker3: [00:11:52] Oh, okay, okay. I was wondering that you had unmute me. Oh, is it, sir, is it that you had to meet me?
Speaker2: [00:12:02] Yeah, yeah, exactly. Yeah.
Speaker3: [00:12:04] Oh, okay, okay, cool. Sweet. That makes sense. Yeah, so well, literally. A couple of minutes ago, I I, I signed up. So it’s pretty cool what what you’re offering here. I think I have. I don’t have a lot of time like like time invested, like I don’t have a lot of experience in fundraising period, but I did do business course and still in it and learnt a lot of things kind of the lay of the land, right? But the issue, as I see it, is getting connected with investors for our type of funds. But I would I would love the overview of your portfolio or anything else you want to tell me. I’m I’m open book right now.
Speaker2: [00:12:59] Awesome. No, awesome. And I love Richard stuff. And and part of it is if I can just be brash, part of it was it would be nice if one day I’ll be like a sort of a black version of him. But anyway, yeah, I mean, I mean,
Speaker3: [00:13:16] I know what you mean. You know, I know what you mean.
Speaker2: [00:13:20] So, yeah, obviously, obviously, we’re unique in our own way. But yeah, we’ve gone through stuff, but all it is so. Yeah, OK. Fourth thing when you go in and we’ll add you to this, you just see this video of me doing and atomized here explaining this right now. You know, just to help people know what they’re getting into. Ok. So number one, we have a we have a bunch of we have a bunch of groups. We have the onboarding form that says, OK, welcome. What’s your what sector are you in? What’s your your address and all that information? So just to get somebody on board it, here’s what to expect and all that. This is an onboarding next. It’s so this is this information to say, OK, here’s how we can win. You know, here’s how to get success, and here’s how. Here’s how not to get success, and it’s just to set, you know, OK, here are what people are actually getting deals closed like uber states that got 30 million, here’s what they did and then the people that are taking longer to get things going. Here’s what they did so that we can emulate the people that are getting getting the funds quicker essentially right. This massive margin calls. So this is really. Yeah, this is this is just a quick place to get access to the groups and the calls. You don’t need to join all of them. You know, there are some that are about NAFTA and so on. But the point is really we have some capillaries and groups of the other, the other members, some of which are already raising capital. A good one is, for example, is Abigail, who he has circled a few million and he’s working on the the $100 million ready and he’s getting a lot of progress there. He knows a lot about fund structure. We have different people that are in different stages, so the point is to triangulate with them whenever it makes sense to because you may be able to learn about different things that they’re doing to get results.
Speaker3: [00:15:13] Okay.
Speaker2: [00:15:14] It’s just a book of call no magic. And so then that’s the first piece. The second piece is, you know, as you’re going out everything to prepare your data. So you mentioned Bridger, which is good. So now it’s like, OK, so then as it’s going to the investors, how should everything be, how should everything look like? And do we know what investors were ideally seeking? So I mean, because, you know, we want to we encourage people to write down what the investors are looking for. So we know like what what the heck we’re we’re we’re actually starting with. So simply put, it just a quick sheet with like, OK, what terms are we offering to investors? What type of investors do we believe will fund it, et cetera? And from here, we triangulate with one of the cafes. In this case, it may be matter to just help you build this out. And I know that we have this track down and what some types of investors that we want. What we also do is like we say, OK, what are we good at as a firm? It’s like, Are we good at accounting? Do we have an account since we are very good at negotiating, very good at digital marketing? Are we good at scraping and getting investor contacts? What are we good at? What are we not good at? So we know like where we stand and where to actually get people to help you if needed. And after that, then they announced it’s hitting the market, so there are a few things. It’s like so those who aren’t familiar with the compliance side of it, we just talk about compliance. And here is a few introductions to a few people who we have relationships with. And so the purpose is to send some feelers out to see what really is. What really are they saying? Right? So yeah, one of the one of our members got thirty two million from this introduction. You know, some of these were because they didn’t. So the point is to get introductions to these firms that directly invest.
Speaker3: [00:17:01] Um, right.
Speaker2: [00:17:03] That’s the broad campaign. And so people can choose to use virtual assistance to send a deal out in their name if they’d like. Or they can just contact the investors are all listed here. So simply, if you go here, I mean, the investors are literally all listed and we just give you everyone, everything right? Yeah, just have tons of these contacts here. And the point is like,
Speaker3: [00:17:30] Oh, I see,
Speaker2: [00:17:32] Yeah, the point is like, it’s kind of overwhelming, so you know, some people, they’re not comfortable, cold calling right away and so on. And so we work with you to send up set up the email scripts or set up the call scripts, either by working with the assistance or by doing it by oneself. And so here’s how it looks like if they want to use an assistance, which is optional. And so we’re talking like, you know, either could be somebody who’s like offshore to do the email part of it, or it could be somebody who is in Canada.
Speaker3: [00:18:01] What’s this on the screen? What’s this on the screen? I’m looking at now with the OK, this is basically your how much you want to spend? Right? Kind of thing. So you put your information here and they contact you, I suppose.
Speaker2: [00:18:15] Yes, this is the optional assistance. So if you want to gets people to do the calls for you, that the one like if somebody wants to use one that’s in that’s doing the talking to investors, then we recommend the Canadian guys or the American guys because everyone else is offshore. That’s how we’re managed to keep these prices like, like almost nothing. Of course. Yeah. Yeah, yeah. All right. And finally, it’s important is the the yeah, the operating procedure. So here are all the instructions right for actually doing the work. So it’s like, OK, you know, building a list, do any outreach, doing the reporting, you know, and it just takes it takes the assistance to different parts in the in the portal for them to do the work, you know, to start doing outreach to the investors. And so if you want to have a conversation about somebody doing this, the last person is Colts. Because Colts, yeah, they got an LOI from this because they sent out, you know, hundreds and for the UFC deal, they got an LOI. So they’re still pushing with that. Ok. And then ultimately, it’s like, what are they saying yesterday and what did he say no to it and it’s like, OK, based on what you’re saying yes to then we just work on improving hypothesis over and over again because, you know, colds when we’re reaching out to people. It was a lot of people in the UK, and a lot of only one person said yes out of a few hundred. And so it’s like, OK, well, let’s reach out to let’s just reach out to sports people and then we start getting we just sent out about like a few dozen and we got to we got an LOI right away. So it’s really it’s kind of an iterative process to make sure that
Speaker3: [00:19:57] You send out emails and stuff like that.
Speaker2: [00:20:00] Emails and cold calls in connection requests. Yes.
Speaker3: [00:20:04] Got it. Okay, cool. Yeah, so, so, yeah, well, look, I mean, I’ll be honest, songs sounds pretty, OK. For example, this is a system I probably would have had to build to. Raise capital. As an unknown entity, right, with no basically basically not much fundraising, track record, et cetera, et cetera. So what it seems like you hear you’ve created that portal or you’ve created a portal, but it’s it’s not just the education portal. It’s partially is, but it’s more executional. And so I think I think that makes this looks pretty good so far to me, to be honest with you. So I actually liked one of the things you said in one of your videos, which was the word mandate. Because like, I like Butcher, but it’s cool.
[00:21:09] But in. Hello.
Speaker2: [00:21:14] I’m just listening quietly. Yes.
Speaker3: [00:21:17] Okay. Yeah. One thing I like the word mandate because what I what I noted was in our in our structure and everything right now we are structuring what we think investors want to hear. And we probably doing an all right job at it. But I think one of your thoughts we’re here is determining the what is the mandate of the fund because ultimately this this money is not decisions on. There’s a layer of people that make the decisions before we actually get any money. It’s not one person is just simply going to see our pitch deck and say, Oh yeah, we’re going to fund these guys, it’s going to have to be the front, the funds that would be released. As you know, I presume that this is well, I don’t know for sure because I don’t know, but you probably know better. But it seems to me that those funds are governed, like you said, by criteria and and and that investment criteria is essentially the mandate. So that that was what was interesting that you said they. But but that’s tell me a little bit about you and stuff like that because I don’t know much about you. So.
Speaker2: [00:22:37] Oh, sure. Yeah. So all it is no magic. It’s like so based out of Canada here and then, but currently Ottawa, because I’m going back and forth between Ottawa and Toronto.
Speaker3: [00:22:50] But yeah,
Speaker2: [00:22:52] For context, I was. Uh, working at the boutique investment bank, it was called DIGIMAG and it was a market dealer, so in other words, it was like a broker dealer, so they sold deals to investors directly. And I met up with them and they signed up with them right when they had their license. They got their license. And so it was about kind of getting the first few deals done and so on. It was the subsidiary of a public company. And so, yeah, just I helped them set up their whole compliance thing because, you know, they’re just getting their first representatives and all that. So it’s like, OK, how do I paper up KYC? How do I make sure that this investor is legit and it’s not. And so some of the paperwork stuff. But then it was also some of the it was a good opportunity because it was it was a small firm that was growing fast. So I was able to learn about the paperwork back office stuff. And then it was also like, Oh, how do I sell this deal to an investor? And it’s like, OK.
Speaker2: [00:23:49] And also, how do I do a JV relationship to an investment bank in America that can actually sell the deal? And so we said some of that up and then raised 80 million bucks, and then I got some of the the license to set up another exempt market dealer. And so he said, Hey, you know, since since it’s really heavy on on the load and the margins going down because more people are joining. Let me just set up another one. And so that’s basically what the reasons are common is. But the way it got in touch with them in the first place was more from crypto. Because, you know, crypto, I’m saying people are raising money in crypto and compliantly, and it’s like, OK, well, how do people do it compliantly? And so there are a few companies that saw this gap. And so that’s that’s how I got into that. And then prior to that, I was technology. I used to be a coder, so that’s pretty much about me. Hoping to make you fall asleep.
Speaker3: [00:24:47] No, I’m listening, I’m listening, sir.
Speaker2: [00:24:51] Yeah, no worries. Yeah, I agree.
Speaker3: [00:24:56] Yeah. Ok. Yes. That’s interesting. So this just so, you know a little bit about what what I am and what I do is I’m originally from the Caribbean, moved here to Florida. Let’s see. 15 years ago, you know, funnily enough, coming to Florida, I had a plan that I would want to do some real estate because I thought rental properties was pretty cool. So my during the recession, when prices were low, I bought my first house and the plan was just to buy a house. Well, basically, I bought my first house and never looked back. So anyway, big into real estate, and right now I’m trying to scale my home building company. I also have land development deal in Florida. So my raises are centered around those two strategies land development, or sometimes they call it property development, and then I and then both have good numbers. There’s good opportunity, high growth state here, stuff like that. So this tells you it’s good to get to know a little bit of what you’ll be back on, though.
Speaker2: [00:26:03] It’s nice and based on, you know, I guess, all you’re doing with the land development and one more thing that’s pretty important. Are you familiar with all the, you know, the compliance side of it and so on because Caleb is more into Bridget and I went into? So are you familiar with that aspect as well?
Speaker3: [00:26:23] Um, uh, second.
Speaker2: [00:26:26] Yeah, sorry, my microphone is a bit off. Yeah. Are you familiar with the the SEC compliance and setting all that up as well? Um.
Speaker3: [00:26:39] Do I fully understand it? No. Am I familiar? Yes. But one of the things is already depends on my marketing, right? So if I was, say, marketing under 35 people, then you know, I don’t believe I have to be have a register, a serious six face to do that. I don’t believe that the five final six, I think, is B, you know, allows allows for that because with that, with that exemption. And so and then also, I feel like if real estate, while it is a little bit of a security, if if the offering includes ownership in that security, then it’s a little bit less of a security because it’s more like a syndication, you know? So I’m kind of familiar with some things, but I think that’s just the tip of the iceberg, really?
Speaker2: [00:27:36] Yeah, no. I mean, you have a really so your approach is really pragmatic in that real estate sense, OK? And there are a few ways of doing it. I mean, I guess the point I’m trying to make is like, if you were to. Um, I mean, we know the whole Edgar filing process like the back of her hand. So the point is like, you know, there are many lawyers here who are going to try to squeeze, squeeze a lot of squeeze a lot of cash out of somebody, right? So the point is like we we have a lot of we see a lot of these subscription agreements. We know this Edgar filing thing just for information. You know, if you ever come across a situation where it’s like, OK, I want to do a C or I want to do a, you know, I want to do. You know, I want to do a larger raise, and they want to do five or six instead. So just FOIA like we can always triangulate on. On how two different ways of actually filing the paperwork, if that makes sense. You just on mute, by the way, if you’re speaking.
Speaker3: [00:28:46] Sorry. Yeah. What I like is you have a way of connecting us myself with investors, which which which should be pretty, pretty cool, you know? Yeah, yeah, man. So what’s what do you? I’m going to start going through this pretty aggressively. I think just this. You know what, to get my feet wet a little bit. Yeah. I’m going to go to this data room here. You go from there.
Speaker2: [00:29:25] Awesome for
Speaker3: [00:29:26] Us. I’m reading the website. What’s on the screen? So steal your rear. Yeah, I like it, man, because I think I think that was what the weakness was on my end is that I. I mean, I’ll give you an example, I took it. I spoke to a friend of one of the guys in black card that had that had that had raised that had done a lot of real estate in 2021. And I was like, Man, that guy is incredible. I got to speak with him. And turns out he has, you know, he has a very rich uncle, literally. And you know what? I presume I’m not sure his circle of friends are pretty wealthy, right? So when he said he just, you know, marketed his network well, his network is strong, very, very strong. So he was able to do a raise which and he also seemed to have a high net worth. And so, as he said, he can guarantee a forty four units, the Lord for 44 units build himself. So that’s a pretty sizable project. But I don’t have those types of connections, period, right? I mean, literally, I’m trying to get a one lot project financed for a personal project like my dad and brother don’t want to do it. And it’s like 24 grams, you know, and I’ll get that. I’ll get that funded myself. But that’s just an example of the people around me. I mean, while they may have a little bit of cash, they’re not high net worth individuals. So how how am I going to feel my network current network to to raise money for 80 million dollar apartment projects? Probably there’s a gap there. So I think at least I know there’s no guarantees, but at least I see. At least I see a system here on the screen to bridge that gap. So that’s interesting.
Speaker2: [00:31:44] Yeah, just about. I mean, it’s always about violence, execution, because like a lot of the, you know, a lot of people kind of like the they contrast everything, either they focus on, Oh, I have to go.
Speaker3: [00:31:59] Let you go. Go ahead.
Speaker2: [00:32:00] Yeah, so because like a lot of people, the eaters say, Oh, I have to like, go up and then have to fly up to like Alaska and meet them and then eat dinner of them and then kiss them and shake their hand and kiss their feet. So some people are really biased on the one person at a time thing, which is good. And another people are just biased on the cold approach that everybody has to be cold. But I think it’s a healthy combination of both because, you know, the thing is like there’s a limit to how many relationships we can have. Right? So, you know, so the point is to get a lot of these cool to contacts and turn them into warm contacts, but at the same time, try to instantly get warm contacts quickly because the cold approach has to always be done. And then the warm approach has to always be done. There’s no and it’s just like a never ending thing, and I think that’s the best way to do it. Because one thing too is like one of the members they had a they had a situation where they were depending on one funder to fund a deal. Luckily, like they extended it into January, this is for its website acquisition.
Speaker3: [00:33:11] So the thing is like
Speaker2: [00:33:15] Until the until the the money gets into the bank accounts we can’t really over depend too much on too few people. So I think as long as like, there’s a consistent type of outreach and then there’s no exclusivity, then it puts somebody in a good position so that they’re not overdependence on one party that they think will be their messiah. And so I think that’s kind of it’s going to help people kind of get around being too stuck on one person. It’s like one night is for an investor.
Speaker3: [00:33:47] Right, right, right, I think I follow. Yeah, I like I was anyway. Well, sounds Caleb. I’ve learned two words. I don’t know if I are them, but two terms in business are acceleration and velocity. So. The only way to increase your velocity is to accelerate, you know, because actually in physics, you can’t go if you’re at a certain speed that is your speed, it doesn’t. It doesn’t move up or down. The only way to increase or or increase that speed is to accelerate. So I think what I’m seeing here allows me to accelerate because it’s not possible. Well, while while it is possible, but it’s harder, if you will, or there’s a lower probability of success if as while I might know a few things because I am alone with guys like and yourself and stuff like that, I still don’t have the years and depth of experience in the space of fundraising to really have made and made the connections right that I would have normally made. And I didn’t work at a private equity, but I actually know I work in a private equity firm, but they seem to be relying on me to help them raise money. Anyway, that’s a whole nother story. So anyways, yeah, I was good. So I guess I’m going to get on board an email or something and I can jump on this portal and just start going through it, right?
Speaker2: [00:35:25] Exactly. Yeah. And and just because we’re yet to delegate that part, I’m going to manually do that right now right after this call. And then I would.
Speaker3: [00:35:33] Oh, OK, OK, cool. Yeah, sounds good. That’s good. Awesome. I got my little book here, and yeah, awesome.
Speaker2: [00:35:45] Let’s make it happen.
Speaker3: [00:35:47] Yeah. So I mean. Do they? Is there an email that I have to get right now or anything like that?
Speaker2: [00:36:02] Yep. You’re going to get an email from support that raises our com and then that one will give you all the line items like, OK, boom, here’s how to build a data, and here’s how you build. Here’s how we get an assistant to build the financial projections. Boom, here’s how you do this. Here are the groups to join. So all all, that literature will be there in that package as well.
Speaker3: [00:36:24] Ok. Ok. All right. Perfect. So when I get that, I guess I’ll just start working through it. Yep. Yeah. Well, I think we’re we’re set not to I don’t know if I have any other questions right now. It looks relatively straightforward, but I just have to go through it and I’m sure I’m going to need your help in kind of setting up the different setting up of different things here and actually streamlining what it is that I have been doing to get the right reasons. I don’t feel that the raises are that we’re doing is anything to obscure. I feel like there are probably plenty of funds, so I probably just have to identify, you know, make sure that I present good executional ability because I think the thesis should be pretty, pretty straightforward. I mean, we build, we build homes and we sell them or we rent them, you know? So build for rent or build for sale, basically one type of fund. And then that’s the easiest thing. That’s the easiest one to raise funds for. And if I only raise funds for that pretty much set. Even without the land development.
Speaker2: [00:37:49] Oh, interesting. Good, because and yeah, I mean, this is the. And this is where the rubber hits the road, right? Because now we’re actually going to see what the investors actually say. Right. So and then we’re going to have to see, OK, what type of investor said this and why? Because now it’s like, this is the part where it’s like, we see what reality actually is and how they actually respond. Ok. Money and.
Speaker3: [00:38:11] Yeah, yeah. Rubber hits the road like that. All right, man. Well, sounds good. I will. I’m I’m signing. Signed up and I think this is something a lot of people actually need, right? But you know, I think a lot of guys coming through religious sports probably need this thing, frankly, because. And one of my. Well, we’re we’re we’re collaborating right now, we don’t know if we’re going to enter into an agreement, but we intend to. He is. I don’t know if you know who Hunter Thompson is. Uh. He does like email campaigns for funds. Oh, interesting. Yeah, so he’s had some success of sending emails to raise capital. He wrote a book about it and stuff, and he is. The issue is he is someone did his course and found it didn’t find it very, very helpful. So I think part of the reason is because he. Well. But again, all all of basically newbie fund managers, they don’t have any experience. So setting up a campaign is a lot of effort, and that effort is really doesn’t really translate into raising funds you may set up. The best email campaign doesn’t mean you raise the dollar yet. So there’s a next step of really implementing the email campaign or whatever happens. So I’m interested to see how you do it here. I think the difference between these two things, though, is that I think you provide some connections to to investors, right? Yeah. Hey, what if I wanted to use like a CRM like founder suite and stuff like that instead of a VA? You think you have any suggestions or thoughts or feedback on that?
Speaker2: [00:40:19] Yeah, good question. Because a lot of people that join up with us and yeah, there is a lot of cross-pollination in this type of business because we do have Moran was in one of our groups, actually, and we do have a lot of them. We have some British people, so it’s a lot of mixed. But the people we see, like we focus just on the bare bones because we talked to they’re not really used to using all these tools like Affinity and and Trello and Founders Suite. They’re not really useful technologies. So we just said, OK, let’s keep it on a simple, dirty spreadsheet and see if I can actually see.
Speaker3: [00:40:58] And I’m personally good with that. And my main thing is look for the raise that I’m doing. Let me let me say this if I was raising $10 a $10 million fund, I already have a debt investor that would do 80 percent if I brought 20 percent cash. They would do 80 percent of that raise. So in theory, even though it’s not all sexy, I’ve raised $8 million write in soft commitments already. For now, yes, it’s debt. And it’s not all fancy private equity, but guess what? That debt is much cheaper than private equity, so I’m okay with that right for our projects, for real estate. You could leverage a lot of debt anyway, right? So that means my goal and run this by you to see what you think. My goal is really to raise two million cash. So that two million in cash, I can probably get a nice, comfortable 20 percent average annual return to investors with eight percent. Press Camp Castro, right, paid for the roughly two percent a quarter, which is not terrible. And you know, I feel I can do that pretty comfortable. I’ll probably have a minimum of a two year old time investment in the fund before profit for the principal, but you may start receiving your quarterly distributions say bye to the from the beginning of the the first second quarter. That’s the same. So the point being is that I don’t think raising a $2 million raise for strategy that does a 300 x multiplier should be a difficult raise to me. So based upon what I just said, any feedback? Any thoughts?
Speaker2: [00:42:57] Hmm. The main thought I have is like the the what was his name, Eddie? So Eddie had had an interesting story with somebody who was working on a he comes to the Monday calls a lot. He was working on a fund of the same size. I think, OK, I’m really heavy on the investors and what they’ll say because like, I think when it’s two million and when it’s a fund and then when we’re we’re working on saving, you know, because yeah, you’ve done some deals in a smaller sense and you have experience there. I’d say that it may be this may work well with the more smaller cheque size investors and by small cheque size. I I definitely don’t mean like one person to put in one check. I think you’ll be like many people to put in small amounts because, yeah, because the big, the institutional people that put in large amounts. They seem to just wants to have all the terms like in their way and they’re like, Oh, give me the deals directly and let’s just do one offs. And we see that the people that are, you know, for like a fun size like that, it may be best for the for the what is for the smaller size investors to like 100k, you know, things like that. And even below. Yeah, a hundred
Speaker3: [00:44:07] Guys, you know, you know, 20 guys and a hundred k. Not that we want to have 20 guys, but where I was going to do it is essentially like a debt fund. This is how I was structuring it in my head, right? It’s almost like a debt fund. Because whereas the overall fund has equity in the projects that we’re building, which is single family homes and small some smaller projects, that’s fun one, right? Smaller homes and stuff like that. So. But. So and I think there are enough funds out there that, you know. Cater to that now in our fund to the second fund, we want to plan a graduate, some of the investors, if they’re if they want to go into that fund to where we start doing more subdivision sized projects. You know, so like 30 unit bills for things like that 40, 50 unit apartment buildings, those type of things, not 300 unit apartment buildings they may have here, you know, some a little bit smaller. And then we can graduate those investors further up or on board new investors, as the case may be. But our thought was because we don’t have, like a track record really that we would kind of start small. I don’t know what your thoughts were on that. It may be best for
Speaker2: [00:45:37] People that want to because people that want to start big on the first fund and, you know, they want to go to the institutional investors that can fill it up really quickly. They’ll just people would just be saying, do one, you know, give me the deal one by one, or they will just start destroying the terms and I think. This one allows for. I don’t want to say crowdfunding, I don’t want to say that term, but yeah. Rex’s work works really well for things like this.
Speaker3: [00:46:11] So what I mean, are you saying regular institutional investors would not want to do the T? As far as you’re aware, it would not may not want to do to 20 percent, or they may actually want part of the 300 300 percent spread in the overall correct. Equity over.
Speaker2: [00:46:34] Yeah, because. And this is my hypothesis, because it’s something that we have to test and see what what the reality is, but yeah, based on other members, yeah, it’s really it’s just like a real, you know, it’s a real, it’s like it’s like, it’s like pushing a rock uphill for like. The institutional investor to trust somebody else’s, to divert and trust somebody else’s strategy fully for them to for somebody to manage their money, if it’s like one million dollar, check 20 million and this is what’s Abdel at a low cost energy. So this is the pattern that we saw. And then when we saw when we saw.
Speaker3: [00:47:15] Are you saying that it’s the amount that’s too small or is just the basically, you know, they want to be in charge, so. So OK, that puts a little that’s that’s a thought right there. Hmm. So. Ok, let me tell you a little bit about our strategy, so I I think bill for rent, actually, if you look at the web website, grow capital grow.
Speaker2: [00:47:45] Look, happiness, I mean, right now.
Speaker3: [00:47:48] Yeah, you’re oh. Our drew a tight U.S.. Ok. So. That’s they do build foreign projects and basically they’re basically analyze their returns and then they return. So that’s kind of the model that we’re thinking of following. In short,
Speaker2: [00:48:21] Wow, a nice IRR.
Speaker3: [00:48:24] Yeah, it’s he he has done a great job, which is information that’s for sure.
Speaker2: [00:48:35] You sorry, I was looking at the website. Sure. Yeah. I think I think even even the what subgroups they have there, a lot of Texans in the WhatsApp groups, so there are people that are. They’re David, with private investors, but I think the number one way is this really to just talk to them because I think like. I think a lot of the people that are on there subscribe to different investor lists and the people that are looking to put in like 100k 80k things that I think that’s the low hanging fruit on this. It’s amazing how much they raised here.
Speaker3: [00:49:25] Like a lot like think like 50 million or something. I don’t know how much how big, but I am is pretty much up there. There is a lot of money. He’s done pretty well with what he’s doing. It’s kind of interesting. So, yeah, because the bill for rent model was pretty strong, we think. So that was kind of the whole kind of thing we were saying, well, we our construction can do about 300 percent cash in cash if we’re selling. And you know, it doesn’t make a lot of a whole lot, maybe a Fife cap on rents. But on our exit, say, in five years, we should do pretty well. So the annualized returns are fairly strong, definitely 20 percent. We are. Or could be higher. I wasn’t I didn’t know if I was going to do kind of like a split, you know, or any of those type of things, you know? Yeah.
Speaker2: [00:50:31] You know, speaking of exits would. I don’t know if this would be appropriate, but would a public offering be appropriate? And what what are your thoughts on that?
Speaker3: [00:50:43] A public offering of this on my my my I’m too small. I don’t know. I don’t believe crowdfunding. I think I’m too small. Well, look, I feel like if, OK, so one of the guys I’m working with on this, he he’s a doctor. He has a lot of doctor friends, you know? And so he wants to get his campaign going to kind of educate them a little bit about bill for rent, space and whatnot. And then there they do have cash, disposable cash, just like he does. And so he wants to put it into real estate investing. So one of the main things that benefits them is that is a tax. Tax benefits of those investments, you know? And yeah, so anyways. But like you said, it all depends on the type of funds and so on. Now that is my bill for rent strategy, but then there is a land development strategy which may be, you know, I think I have at least, you know, at least a $60 million subdivision project to build apartment since the three apartments I want to build. So raising the private equity for that property is that is that is an opportunity zone project. Right? And that’s so they have a lot of tax benefits for that.
Speaker2: [00:52:12] Yeah, I think they want to do really well.
Speaker3: [00:52:16] Ok, yeah, I think so. Let’s go, so I got to be a little careful because obviously I have the I don’t want to kind of dilute what I’m asking for. But the overall pitch was, look, we have two strategies here in Florida. If you’re interested, let us know. Let’s go from there.
Speaker2: [00:52:38] Yeah. Yeah, yeah, because yeah, because the thing is, like you, as you probably recognize from the bridge or stuff, it’s really about the focus right on one strategy at a time. So yeah, in the outreach, because we’re just so it raises up crime, we’re just really pragmatic. So it’s like the people that you reach out to. It’s like, it’s like saying, really, it’s like to understand what is the most highly likely chance of them getting in to call the right person. Would it be through the opportunities? Would it be through the, you know, the first angle? And then it’s like, OK, prioritizing that? It may be just keeping everything super vague and just for the purpose of getting on the call of the investor as soon as possible. And then after they reply in and after, they’re ready to get the call, then he’s just pitching that angle that they wants and then returning that data. Because like Cambridge, we kind of copy some of the things from Cambridge Wilkinson. They’re an investment bank that helps people raise, and they always see like the number one priority is just to get on the phone of the investor so that we can actually know what, what, the how they think, what they want. So it’s almost a scene. How can we get on the phone with the investor quick as quick as possible?
Speaker3: [00:53:57] Yes, yes, yes, it’s basically connected. In other words, it’s almost like putting up a billboard that says what you’re doing and have customers come to you? Well, you kind of alert fun of what you’re doing and then if they’re interested, they come to you as warmly, if not hotly. So because right now, I think I’m kind of spinning my wheels somewhat because I’m speaking to potential investors. But then I am making phone calls and I’m reading out this and that, and you know what I mean? It’s a lot of effort for me to try to weed out investors, right? It’s a lot of effort. There’s only so much lunches and whatnot I can do. You know what I mean? Yeah, I’d rather just have. You know, one high net worth individual that is comfortable with spending $2 million over the next year. Not all at once, necessarily. And period that with my debt financier. And let’s let’s go to Tom building some houses, you know? You know, the returns are roughly at least two and a half multiplier every six months, and that’s it, you know, I mean, not a bad gig.
Speaker2: [00:55:28] Exactly. And it’s a test that up and hit the markets with that the last thing too. Also looking at different angles as well. So besides, yeah, they’re just the human beings who invest, but then also hedge funds and things like that that are also looking for a difference, you know, different real estate plays as well, and they can work by drawdown schedules. But the point is really just ideally to get the individual directly and then, you know, to have different hedge plans and different backup plans so that the deal is always moving. So then maybe there are hedge funds, maybe there are. Maybe there are broker dealers that are direct to more private equity investors that are looking for this. So I mean, the point is like really just looking at which angle is the quickest one to get on calls. And then just pushing from there so that you have like the throughput. So.
Speaker3: [00:56:18] Mm hmm. Yeah, I think fundamentally it’s you know, the sad part is that. Yeah. You know, it’s just that those warm leads would be very critical. So by the way, your list that you have and I know I got to go myself the list, the list of investors that you have. I mean, how how how was that generally created? And, you know, if I wanted to add other people to that list, could I, I suppose I could be.
Speaker2: [00:57:01] Yes, exactly. So the way it is, is we have the what was his name? So we had an assistant help us is a combination of us paying a few firms, like a few thousand bucks for us to kind of say, OK, we can resell this data legally. And then after that, we had the assistance kind of go through every couple of weeks to say, OK, let’s make sure that it’s up to date. And then that’s pretty much it. And simply put, we got it from a combination of the press releases constantly going on the websites and validating information and using email validation tools as well.
Speaker3: [00:57:41] Ok. Ok. Yeah. Kind of curating that list, I’m sure for it. But let me say, you have an email. How do you know that email is going to the right person if you.
Speaker2: [00:57:52] Oh, yeah. A few ways, so there’s the there’s a way that they disclose because every email is from somebody that has disclosed it publicly. So that’s one two is two is because we saw this is to make sure that what is it called? We use different APIs to just check the mail server to make sure that it works with the mail server. And that’s pretty much we have all these because the the technical part of its part for skill erase it goes through all the different tools. I mean, there’s no virus hunter. And then we use all those tools and everything to look at the mail server to make sure that it’s returning positive.
Speaker3: [00:58:33] Ok. Ok. For Chancellor. Ok, man, well, sounds good, looking forward to accelerating a little bit with you and I have a ton of projects, so let’s see what happens here.
Speaker2: [00:58:47] You know, and hopefully you and hopefully use our guys because we benefit from those ones too. But if not, oh well, but one way or another. Let’s get this thing done.
Speaker3: [00:58:56] I’m happy to. I’ll be honest. I’m happy to use anyone because so long as I have a lot of unfunded deals, I mean, Florida is the most third most populous state. I was recently reminded and we have a ton of land. Therefore, there is a need to develop that land strategically as an engineer. I mean, look, I have patents on my home building company, right? I mean, we can build a house structure in, I want to say. Three days, OK? I’m not quite Boxall, I don’t know if you’re familiar with Boxall.
Speaker2: [00:59:39] I am indeed build shipping. Shipping containers into affordable houses or something, or is it another company?
Speaker3: [00:59:47] Well, their thing is they do. They unfold a house. Basically, they ship you a box and then the house unfolds. It comes in their trucks, or maybe some of someone’s truck, and it kind of unfolds, right? So in about a couple of hours, they have. They unfold this house for you, windows. And all right, you just plug in plug in water, plug in electrical and they they they’re supposed to be in the street disrupting, right? Because kind of like a factory made pre-assembled home that unfolds. So I am not that fast. Granted. I don’t want to fool the house, but put it this way. I use a very similar material that they have. And I don’t need a big old factory to use that material. So our patent is on the way we assemble homes. So I feel because my my target is green, affordable housing. And to be honest, President Biden has a big push for green, affordable housing. Actually, they have a big push for green everything and then a big push for affordable housing. I just had I was already working on some green, affordable housing before he even got elected, right? So from a national perspective, there is a there’s a obviously a in Washington has identified a need and we have the patents and all these type of things. So I think that, you know, not only are we in a build for rent and a good solar, just from a real estate perspective, we have a good strategy. We also have a good construction tech or some people call it build tech type company as well, you know, so there is with the right type of investment, we could theoretically scale our company a lot more than just my operation here in Central Florida. So there’s several areas. That’s why I’m like, I know what I have, you know? And so I’m not ruling out the possibility of right. I see it escalating more than I or accelerating, as I say, more than I would have normally expected. Right?
Speaker2: [01:02:17] Yeah. Until you what something of interest you may want to. So you may want to introduce you to Richard Richard. Alvin read, because he has a humanitarian company where he’s working on affordable housing as well. I mean, we helped him close to three million for his debt fund as well. But he was saying that, Oh OK, I’m looking for people that are working on affordable housing. Basically, my point is he would help you raise capital. Where is he based? He’s based in. Where is it again, isn’t it, Boston or something like, okay? But he’d happily help you raise capital like obviously no fees or something, just just he would just do it and then based on whatever comes in. But that may be something that he’d be interested in because he’s holding company either as somebody who acquires deals or somebody who brings in the capital, he’s looking for these types of transactions as well for when it comes to affordable green housing and things like that.
Speaker3: [01:03:22] Ok. Absolutely. All right, man. Well, you have a good one. Yeah, you too. I’ll let you go. We keep talking with you. Thank you so much. Thank you so much. Take care of my friend. Bye bye. That’s.