All right. Getting the call started and Naty. How’s it, how’s it going there? Can you hear me? Yes, sir. Yeah, man. Um, yo, just glad to be here and, um, you know, glad we can, I’m back. Yeah, no worries. So, um, yeah, today looks like off to a slow start with the, uh, people joining, uh, the call. So it may be more intimate today, I don’t know.

But, uh, yeah, rest assured, uh, people are working on the, um, on the file. We had a big backlog of support, and then, uh, now this week everyone’s gonna get to the, uh, you know, to all the people from last week. So, uh, we’re moving along and yeah, and I’m, and I’m, um, I’m very, uh, what’s the word, I guess, Involved man.

Um, it’s just, I, I, I kind of already told you I’m involved in this. We doing a small little real estate project right now and um, that’s kind of just was taking a lot of my time. But I was thinking too, they supposedly they can build this house man in six weeks. That’s the power of, you know, they doing these tiny homes now.

But, um, basically in six weeks, you know, my attention to be fully on this and I think it’s great because I can use this as I’ve been in real estate for years but not from ground up. Cuz you know, the project that we building is, um, from ground up and um, I think it’d be great because we can just be like, look, look what we just did it.

It is not on a scale of what we’re raising, but at least we can say, look, we did this from ground up. This is what we built in this amount of time. So we can essentially take this same strategy and essentially build X amount of this and this amount of time. So, Yeah, I mean the more syndications help. Yeah, because I, I keep on getting, people keep on asking me on just on the other side, on the marketing side about uh, about how much experience do they have to have with a sponsor before they raise, you know, significant amount of money, um, without having to get a co G in that has more experience than them.

So, you know, it’s better to s swallow the bullet now and uh, cuz like when you do the second fund then yeah we look to the track record of the first one. Uh, so I’m all for it. So the co G p n I guess that’s a good way to start the meeting. If anybody, unless anybody else wanna jump in, how can we go about, cause I’m gonna be honest man, I reached out not on this project cuz I’m kind of doing multiple things cuz if you remember when I first contacted you, um, we had the land and we decided that, and this is why we are here to, to talk stuff out with people more experienced.

We got, we got a good amount of land and we decided that it would be a better play for the land. Cause I was confusing the things cuz. I’m learning everything in real time. The land will be a better thing to use as a D S T, which I kind of mentioned before, Delaware statutory trust, where with the land, it’s, it’s basically, it’s a way to save taxes.

It’s, it’s, it’s an incredible tax thing. Only accredited investors invest in it. If you do the research, anybody that’s listening to this in the future, Delaware statutory trust, and you’ll realize why. It’s, it’s, it’s ranked over a 10 31 exchange. But anyway, we realize that it’ll be a better play with the land to just subdivide the land and just sell that.

And just to give somebody else a play. Let’s just say you buy three acres of land, you can subdivide that land into 10 plots and literally you bought the land, we’ll just say 50 grand. You can literally subdivide those 10 plots and sell them each for like 20, 20 grand a piece. So literally you just spent 50 grand.

You flip that to in an even better play is I, I mentioned it before, called mortgage notes to where you don’t even have to, cuz that’s why a lot of people don’t end up selling in real estate. They don’t want to finance it for some weird reason. But when you, when you actually decide that you want to finance your real estate, man, that’s, that’s just money.

It’s not a lump sum of money. But you can literally, this, this is what a mortgage note is. You can literally sell that mortgage to somebody else for a liquid amount of money. I’m literally doing it right now with my property that I have. So just giving some people some game that’s, that’s gonna listen to this.

So anyway, we thought, we was like, well maybe it’ll be better to create some small construction projects and then move into the bigger one. And, um, that’s why we’re here. That’s why when you originally heard me talk about the land stuff mm-hmm. Throwing that away, we’re using that for something different.

But, um, this one man, we, we, we plan on actually building houses, um, from scratch using advanced construction technology. Okay. Got it. Let me get it straight through. So then, okay. So then what you’re saying is, you know, you’re building, you, you’re building the housing pro, you’re building the housing deals with using this, uh, you know, this quick kind of, you know, those quick modular builders or those people Yes.

Putting up the deals. Correct. So you’re doing that. And then the second thing is you’re also saying that you are on this project. We don’t own the land. That’s the issue with this one. Okay. Okay. We, we, we gonna have to get spots for the land, but the only reason we think that’s a better play is because the other, the other land that we have now, that’s, that’s just a different play, man.

It’s just a different play because it’s, I don’t like it. It’ll be, I, I personally think. It’ll be harder to get people to invest in this particular location where it is. I think we would need a little bit more time to kind of develop it a little bit more. And I think it’d just be easier to sell that to individual investors who just wanna own land.

Especially in America, housing prices is going crazy cause we already own the land. We really don’t have to go to nobody else. We can just take the land that we got, divide it up into 50 plus lots. Let’s give people an example. Once again, I just joined. Let’s say you buy land for 50 K. Let’s say you buy five acres for 50 K.

You take those five acres, you can divide those five acres up into 20 plots. Really more than that. But I’m just throwing an example. 20, 30 plots, and you can literally sell those 30 plots at 10 grand a piece. And literally you spend 50 K for the land and you can flip that to 300,000. This is how a lot of, um, individuals are just getting rich man and they getting rich pretty quickly.

So just throwing that out there. Got it. Okay. So what exactly, and that makes sense, but what exactly are you doing with that piece of land that you own? Uh, that do we Well, that’s, well, yeah. Well that’s, that’s kind of what I was just discussing. We want to, we, we decided that we’re, we, we already filed for the change of address, right.

Because the, the ad, cuz when, when you Google the property, it shows up how much we paid for it and all that. So me and my business partner, who’s actually here, Elijah, we came up with an idea. We was like, well how about if we just change the name of the address That way you can’t Google it. If you Google it, it’s only going to be goo googleable.

That’s an invented word to what we reference it to, if that makes sense. Like the new name, whenever you Google it is only gonna show up. So you’re not gonna be able to see the old prices that we paid for it. So when we sell the plots of like when we sell the individual plots of land, Which is a D Like that’s, that’s a, like I said, that we don’t even plan on raising money for that.

Cause I actually called a D S T, um, and I don’t know, it could have been trying to discourage me a little bit, but I actually called a consultant. I had a meeting with them. That’s why, you know, I’ve been telling people, man, if you really wanna make deals in this space, what I’m learning, I’m sure you can say this, anybody else, you gotta get on the phone, man.

Yeah. The emailing stuff, you just can’t do it in this, like maybe you can raise some other money, but to raise millions, man, you gotta get on the phone, man. Agree. That is just nowhere around it. And I got on the phone, got some consultants and they pretty much told me people tend to invest in DSTs only when it’s making money.

So we was like, okay, cool. We can start selling some of the plots to individual investors. And then, you know, once we start getting, um, let’s say 10 people, let’s say we sell 10 plots. Once we get 10 people, that’s investing money, Stuff like that. Now we got 10 streams of income and it’ll be easier to go to investors and then say, look, we already got 10 streams of income.

We want to build out this land. We want to build infrastructure, we want to build roles. We want to, because we got a good amount of land, not a ton of land, but we got a good amount of land to where we can actually fit over 150 plots on the land that we have. So just throwing. Okay. So, so, so is it, I’m guessing, is it DST specifically that he’s saying that it’s easier to raise money if it’s already making money?

Or is that just anything in general? Yes, that’s what he was telling me, yes. Okay. No, but is that anything in general? Because I mean, anything that’s making money, people would invested over something that’s not making money, right? Yeah, but he was, he was pretty much saying that with DST specifically, because they’re only foreign credited investors, it’d be easier to raise money.

But when it’s already making money and a fund, which is what we doing now, it’s basically easier for us to raise money from scratch. And I’ve, I’ve already targeted. Specific places that we want to put the um, the land at. Cuz the thing when you, when you build these, whatever you wanna call ’em, modular homes, cuz for some reason they’ve made tiny homes like a bad word.

They literally banned tiny homes in a lot of states in the United States. So you just gotta create new, they did the same thing with cryptos. Sad man. It’s like whatever lane I get into, they just make it difficult. But anyway, whatever name you want to call it, you can use these plots of land man. And you don’t have to build million dollar homes, man.

You can literally build like a four unit modular home where it’s four units or you can call ’em just a four unit apartment, whatever you wanna call ’em. Instead of thinking you have to get all of this land, you can literally just build four units. So instead of building one home, you can literally build four units and with it and with advanced construction technology these days, you can literally just do that in a small amount of time and I’m talking about months.

Nice. So then, okay, so then, um, so basically the next step you’re looking at is, you know, you’re looking at building and selling these. Quote unquote tiny homes, for lack of a better word, but not really tiny. So the Pacific name is called, um, build to Rent Homes for anybody else, you know, build to Rent, which is basically we’re building homes to literally just make them like, for lack of better word, Airbnb, tribal homes.

Um, we wanna do a 12 year fund and then at the end of the fund, that’s when we want to liquidate the properties, cuz they’ll still maintain their value over 10 to 12 years. And then at the end of the fund, that’s when we’re, look, we want to, cause we just crunch the numbers and we crunch the numbers with the IRR and c c and everything.

It just makes more money being a rental property. It just makes, even if you mortgage it, it’s, it’s just not gonna make as much money compared to if, that’s why our Pacific locations have to be strategic locations for people to travel and stuff like that. So. Yeah. Yeah. And what’s interesting is that we’re getting a lot of them.

Um, I think there was Matt Johnson bill to rents. Actually, sorry. No, not built to rents. Uh, Josh Schwa Williams is built to rents. Uh, he has like, he’s pretty established in that space already, and then he’s doing more multi shifting now into multi-family, but he has a lot of built to rents, construction deals.

He did. Uh, it may be productive having a chat with him and then so you can Yeah. Can we set that up some type of way? That’s why we here, man. Yeah, no, exactly. And I was talking to him today, but, um, I, he, he’s on the group and we can, he control via email may be more productive over email. So there’s also, um, Matt Johnson, because he’s more buy-in and existing, uh, single family portfolio rents out.

But the point is like, yeah, everyone is saying that because Blackstone, you know, they’re doing this huge single family buyout Mm. Of the, you know, single family. Everyone’s more shifted into single family because obviously the division of wealth is growing. So, no, you, you’re on a, you to a trend and, um, and I think it’s, I think it’s a good direction.

I, I just like, I just like, just from our side, I just like to focus on, uh, know what we’re doing. So now I know that this is the focus. And then, uh, going forward we’re going to uh, you know, more pressing this whole, uh, build to rent deal as opposed to the, uh, because it looks like the land deal is more of just something on the shelf for now you have the idea for it, but it’s really just this whole build to rent deal is what you’re focus on.

Correct. Yeah. Cause we, we already, we already kind of own it and I kind of want to. Okay. Cause I mean, if we can make money off of it without having to raise millions, I mean that’s really the, the goal. Got it. Sometimes people raise money and they don’t even need it. Cuz the good thing about our land, and this is another thing for people that’s this, is if they, this is their first fund.

I’ve been in real estate for years. If this is their first fund, one thing you really need to take, you really need to look at is the zoning. The good thing about our land, which I didn’t even know until after I purchased it, It literally has no zoning rules. It’s like, so all of the zoning that we have to do is through the state and literally with the state.

It’s just a, a paper that you file. It’s called a, in the state of New York. It’s called a subdivided land statement. So I’ve already reached out to the local town just in case they try to invent rules cuz you know, I’m, you know, I’m a black man. You know, they try to invent rules sometimes, um, especially in our town cuz the, there’s a lot of noise outside, but especially in the town that we got our land in.

Cuz it’s, it’s, it’s the population of people that look like me is very small. But anyway, I got a copy of the email from their town assessor saying we don’t have no rules basically. So I got a copy of that email. If we try to make up rule, invent, you know, they do that in America. Let try to invent rules later.

We already got you on email. Saying that there are no rules, you need to go to the county level. So now we’re dealing with the county and once we change the address with the county, um, that’s when we’ll go to the state and file the subdivision land statement. Then we, we good. And once we get, and I may even circle back with it, and once we get about maybe five or 10 people rent, like buying, like paying on the mortgage cuz that’s what we gonna be doing, like leasing the paying for the mortgage notes.

Then maybe this, we might come back and say, well you know what, maybe it is a good idea for us to build these, um, these homes on this land cuz we got, we already come, but for now, unfortunately, we’re going to have to source the land again. But the good news is, um, we already have a company that all we gotta do is put a down payment down a, a construction company.

And um, you know, we, we dealing with a, we dealing with advanced construction, so we got all type of, I ain’t gonna give it away here, but we got all type of like, Oh man. Creative ways to build homes in like, no time that, you know, I’m a data scientist so I’ll just leave it there. That, you know, I’ve been in machine learning for the last five years, so we, man, we, we, we very excited about it.

The only thing we probably would need help is, um, is honestly, you know, same with everybody is getting the structure right. And this is something that I wanted to ask you too, before you move to the next person. I’m start, as I read more and more books on venture capital, what’s the minimum for a limited part for a general partner to invest?

Cause I’ve been seeing that a lot. I’ve been seeing different numbers. I’ve been seeing a hundred thousand. I’ve been seeing 1%. I’ve been seeing, I I actually seen one that said 1000. So what do you see in your deals when it comes to general partners putting in investments? Sure. No, and, and I guess I’ll rephrase the question with, with, um, I mean, we’re not in, we’re not in venture capital.

Uh, I’d like to probably shift away from that because the venture capital mindset’s a bit different. But, uh, okay. Well, I mean, you look at AD A and you look at. Uh, a few deals that closed Henry and some of their transactions, they just did the minimum investments amounts, uh, that they said is their fund.

They invested their minimum investment amount. So like for example, this, um, there’s this doctor who’s raising 18 million and his minimum investment amount is a hundred thousand, or, sorry, no, it’s 50,000 is a minimum investment amount. He, he bought two of his own units, so he is investing two of his own units.

Mm. Um, a day. I believe he did one of his own units and I think it’s a hundred thousand. Don’t quote me on this, I’m just guessing based on, uh, my memory of the subscription agreement. So yeah, you sometimes they do it a minimum investment amount. Um, So these are people that already got bread. That’s, man, that’s a whole different game.

These are people, if you got a hundred thousand dollars to invest, man, that’s, that’s amazing in itself. So I gotta give kudos to that. So that’s something we definitely gonna have to work around. Well, there, there are different, I got this question twice in one day because, and I’ll go through it there, there are literally people asking me today, um, about if you don’t have anything or you have 1%.

So I guess there are five things. I mean, one is that we look at the, the five year salary or the life of the fund, the salary that somebody in your position would have. And then we try to say, um, I guess, let me just paste out just a second. Lemme just paste out, uh, like this is two in one day, so it’s really fresh.

So yeah, first we would paste out or we would say, can you make that bigger a little bit? Sure. Are you able to see it now? Perfect now. Oh, it’s perfect now. Yeah. Okay. So your fund is 12 years. We would just say, oh, what is your 12? What is the average salary of somebody who’s doing the things that you’re doing and this type of fund?

And then we would, in the financial model, try to say that this is, uh, sweat equity and reduce that salary, uh, for your actual fund and then negotiate that on why you have more sweat equity. So that’s something we saw some people do. It’s not really that popular, but you know’s just one tactic. Another one is just like looking at any assets or businesses that are around.

Obviously I know AADE has been doing that with, um, his car wash deal in Edmonton. So are you saying we can use the asset now? Now assets. I’m asset rich. So, so you, so assets we can actually use that as, is that called an equity swap? Yeah, so this one I started researching equity swap last night. Is that what an equity swap, or is it equity swap if anybody can answer this?

Or is equity swap just with like futures and, um, derivatives and stuff like that? Well, so go ahead somebody, go ahead. I think Joseph wanted to jump in too. Oh, please, yeah, if you have anything to show. Oh, no, I’m good. I didn’t have anything, just listening. Okay. Okay. Well, I don’t know if matter has anything but, uh, I, I personally haven’t heard of that.

I, I’ve just heard of people, um, either having the second lien or third lien or on liquidation. They would just give, uh, I mean, they’ll give access to assets on liquidation. I mean, this is, if, if everything goes, if everything fails, then you have these assets, uh, you know, to the people who invested. Uh, so you’re, you’re putting up your assets like in case, in case there’s a disaster obviously.

So there’s that. Um, mad you have to share as well. I see you on means. Um, I’m sorry, I missed the question. Could you please repeat that? Sure. No. Is this, basically, if somebody has assets to pledge, uh, and they don’t, they’re not able to invest into their own fund, uh, what is that called? And what is a structure, if any, that you’ve seen for something like that?

Like, like, let’s say I have a house I own outright. I wanna put a hundred thousand into a fund. I don’t have a hundred thousand cash, but I have like two houses or we, or we or we own a business that’s worth x and we can like a convertible note type thing. Cause we, we actually got a valuation on our business, which is a asset.

So I, I, I’m, I’m hopefully maybe we can use that. Um, but I, I can put up cash, but I’m just saying man, I mean, obviously for, oh yeah, for those that don’t know, Disease X is next. So Google that, that’s the next covid, just to let people know. So no, seriously, like they already talking about it, so they saying it’s gonna be bigger than the other one.

So something big about to happen. So I want to keep my cash. So, um, if it’s possible for us to, I guess, leverage our assets, please man. Somebody just let me know if they’ve heard of some type of deal that a limited partner would agree to and something like that.

No, um, sorry, I’m, I’m not really familiar with, uh, okay. This, this kind of Yeah, do, yeah, no worries. So I just say, and nowadays probably just putting something in a term sheet where you’re adding more assets for liquidation and we may have to look into other examples. Okay. Uh, but the ones I’m more familiar with is more just negotiating with the sellers as well and just saying, Hey, um, You know, going directly to the people that are selling the asset.

And so a backend payment now that works. So a backend payment. Yeah. So doing that’s, this one is obviously now, now, does the backend payment allow with about shares too, or no? Uh, potentially, uh, I wouldn’t really get to like adventurous. I would just say that, Hey, the, like, it’s worth me. Well, I mean, I’d say it’s, it’s worth me saying that I’m part of this deal because, um, because the seller, so the enterprise value of the company is this.

I’ve told the seller that I’m gonna add value to your business by doing this. Uh, and that’s why I have this many units in the general, that’s why I have the general partnership. And that’s why I have this many units, you know, just something to say that you have skin in the game because you, you have free equity that you got from a business.

Right. And what’s this call? This is what I want to use what you’re talking about. Cause I noticed you already already mentioned that. What’s this call so I can specifically write that down so I can, when we have a private beating I can bring that up to remind you cuz I know you got a million people you working with.

I’m not exactly sure of the name. Uh, the name is Escap Me but, or a reference for me. And you. Just a reference for us or for the, the customer service people. Sure. So then, um, so just say consulting the seller, consultants consulting the seller for equity. That’s really all it is.

Cause it’s going to a seller. It’s going to a seller, and then offering a service in exchange for equity. Yeah, I like that. Okay. Service and exchange for equity. All right. Yeah. All right. All right. I’m shutting up now. Even though you did come to me and you know how I am, it’s your fault, but I just try to get a lot of information out.

Hopefully it can help other people. Exactly. And just, just last things is some people that will just get a co GP instead of a limited partner. So instead of finding passive investors, you can just bring in, um, you know, somebody who wants to be, who wants to take some of that risk because there’s Fabian in Toronto, he brought in an investor with over eight figure net worth to just, uh, guaranteed a loan to get a bigger loan for, I think, uh, like near 40 million.

I can’t remember the exact amounts. Instead of, see, I want that too. I want a service and exchange for equity and co gb. Yeah, that just makes sense. Yeah. Yeah. So the same way that you’re reaching out to investors, you don’t change anything. The only thing is that you just biden’s somebody who wants to do personal guarantee and then, um, And that’s the only difference.

And then you’re giving them whatever they agree on. That makes sense for the models. Some people, like, he, like Fabian gave this investor 15%, uh, for just doing a personal guarantee. So that’s a bit aggressive, but you know, whatever works for you. So that’s, I mean, when it’s your first fund, I mean cuz so for our fund, we not charging an annual fee.

Um, and, and yeah, so I think for the first fund, whatever you do for the first time, you gonna pay the, this, this we call me and my business partner, like in here now we call it the pain, whatever you do for the first time. So pain gonna come with it, whether it is time or money. So sometimes it’s both, but you know, you take it as a learning lesson and go from there.

Yeah, no e exactly. And then the last one is just having a better offer. So just reducing risk, charging less fees in general, as you said, as you alluded to, uh, you know, making the catch up more gentle, increasingly prep so that investors are more protected. Doing a European style so that the investors get the cash first if he wants, doing monthly reporting and instead quarterly reporting like everyone does.

So those are just some ideas, and then if you do all that, then you can kind of justify having quote unquote nothing in, if that makes sense. Yeah, that makes, that makes a lot of sense. Yeah. Cause one, one thing I, I actually read this last night in the book I’m reading it was talking about how actual a lot of, well, this is vc, but it, it’s, it’s, it’s really all the same.

It’s just the, the, the language is different. It’s just, I guess, quote unquote, VCs actually buy businesses. But I mean, it’s, it’s, it’s the same stuff. But one thing they were saying is how a lot of limited partners actually don’t want you to. Go for immediate income. Like they actually look for ways for tax savings and they look for long-term investments, cuz you would think they want their money back immediately.

But you was like, you know, basically just reading and stuff like that from VCs that’s raised billions. Basically saying that a lot of the, the, the limited partners, they actually prefer you to, um, set the company up for long term gains instead of like, short term, um, gains. So that’s, that’s definitely something that, uh, I I’m interested in.

And, uh, when we talk again, um, I, that’s definitely some things that we can kind of focus on. We can kind of get into the, the meat of exactly what we doing and hopefully we can raise our fund no later in August, but we’re shooting for July, but hopefully no later in August. Yep. Then we have to, we have to move then.

So, um, you know, so we just have to finish them. That packaging. I wouldn’t really get too caught up on the, on the, um, minute details, uh, until, until you get to the point where, You know, you’re starting to get some traffic, and then before the investor is serious, then that’s when I’ll start focusing on the minute details.

Uh, if, if I, you, so, all right, I’m shutting up now. Cool. So, okay. Um, no, but it’s good discussing. And then let’s see who’s next here. So after that day, we had Joe, then we had Elijah, then Greg and imo. So anyone in that order. So guess Joe.

And it’s okay if you, there’s nothing to share, so I’m guessing there’s nothing. Joe, Joseph Thompson. All right, no worries. And then after we have Elijah, Elijah, you’re the business partner of an, any questions or things to share as well?

No, I don’t have anything. Yeah, no, no worries. And Greg, how’s it going? Uh, it’s going good. Uh, no, I’m not. I’m just, uh, looking at a few things here. Uh, just trying to get some info and some stuff, so it’s more of just, uh, kinda listen in, see what everyone else is doing, you know, so I’m, I’m pretty much good.

Good stuff. Good stuff. Okay. Sounds good. And o how’s it going, imo?

Yeah, sorry. Um, so I’ve got a couple of questions. That’s why I joined. Um, so the first thing is, I know you did send me the, uh, I think you did not send me the Reductor version. Um, a mistake. Okay, got it. Okay. So then the redacted version. So, so here’s where I was a bit confused because, um, the one from Civil that we put her name on instead, Uh, is that not the one, that’s not the one you’re looking for?

Don’t forget the one on civil For me, I need to have an llc. Um, and that is my, that’s gonna be my second question. Um, so until that LLC is set up, I can’t civil will not proceed with my application. Um, that’s my understanding. Yeah. So what we can do, you can use the limited partnership for the fund, uh, if you’d like.

And I think that’s a good idea. And then try, try seeing the limited, cuz we, you need the limited partnership for the fund anyway, so you can try using that one for civil. Yeah. But um, okay, so that leads me back to the next question. Um, so I tried the link you sent to me, um, and I, they kind of needed a US address.

Um, so I dunno, um, probably I need a link where to buy, um, my post, post books address or office address. Oh sure. Yeah, that one’s easy. Um, And that is probably has a lot. I see you unmuted. I knew you had unmuted. Yeah. Yeah. You know, I, every time somebody ask, I’ll help him with this. So, yeah. By the way, he’s in, he’s in, uh, UK just for contact.

He’s in uk. Okay. Um, so there’s more than one way you can do this? Yeah. Personally I use register agents, but I know some people use offices. Now, register agents is the most cost-efficient way. What state are you going to incorporate your company in? Delo, Delaware. Okay. So you can just Google Delaware Register agents now, and maybe you can answer this now.

Did, does how now? Different registered agents, they scan your mail, but if you get physical stuff, you may have to get a secondary address that ships it to the uk. Okay. Yeah, if it’s physical stuff, but if it’s just letters, the register agent literally takes your letters, they scan it and stuff like that.

And we going through a situation now with a bank where they’re not even letting us use the register address. So most places I’ve use, let me use it, but specific places like I B K R, for some weird reason, they’re not letting me use it. They require a physical address. Okay. And the virtual address is what you can use for that.

And that’s what he’s showing you now. Okay. So just, yep, go. Yeah. Just to get on, um, just find Delaware registered agent. I will bring up a list of agents. I just pick up one and, and, uh, go through the process. Yeah. And then he’s showing you a secondary one. Now this one right here is what, $20 a month? Yeah.

Yeah. Right. This is the one that Tim Ferris, uh, recommended back in, uh, four hour work week. Oh, okay. Do you believe that? Do you believe it for our work week, by the way? No. Cause nobody, I know that’s really millionaires work only four hours. But anyway.

Yeah. But, but so the thing is that, just for context, Natalie, we, we already, so we sent, uh, imo, the Delaware, we sent him Delaware inc.com, which is the one that we usually use. So then the thing is that, um, yeah, you could, you could either use the, uh, registered agents as an Natalie said, or you can just use physical address.

Uh, and then they can, cuz they scan the mail and then they forward it and can, can, uh, destroy it if you want and everything. Okay. Well do, so that’ll help me progress then. Um, yeah, but let’s focus back to, I didn’t answer the question on proof of funds. So then Yeah, I’m just a little bit, uh, I was just a little bit confused as to this because we sent out.

I think we sent out 14 in the last week. So has this been a lot? Uh, okay. So would you be able to, uh, just send the one that you want us to update and then I can just Yeah. Sign my name on it and just change the date and I’ll just sign my name on it again and then, uh, perfect. Go do that. I’ll do that after the call.

And then my last question is about, I ran into a group of folks that need, um, funding for climate change products, uh, country climate change products. So I just wanna find out whether you got any list of, um, funders for climate change products. Yeah, I have a few, but then more productive than the list would probably be, uh, Kevin, Kevin was demanding this, uh, Kevin on Yinka.

Uh, he was demanding this a few months ago. So I would go to Kevin on Yinka and, um, or better yet, we just do an introduction to Kevin on Yinka again, but best probably just to connect with him on WhatsApp. Yes and no. Have I spoken to him before? Yes. So you would’ve already Yeah. That’s the guy from Singapore.

Yeah. Oh, no. Oh no, that’s, that’s, uh, that’s another Kevin, I think, uh, this, this is Kevin. He’s actually based in the uk like you. Okay. Yeah. Alright, cool. So that’s, that’s all my questions, uh, today. Um, nothing more on my list. Good. Yeah. So just to reiterate, next step, uh, physical address or registered agent.

Probably registered agents for the, for the mail. And then just so, uh, yeah, cause we couldn’t get, which, which one you, you, you like. So then send us the one that you want us to update. We’ll update the date manually. Uh, I’ll name and then, and then those are the things. Yeah. Uh, and then just one more. A, so when I clicked on that link that’s, um, incorporated, um, i, I c uh, what package did you go?

Uh, should I go for? Is it the basic one or the, I think there are three. Um, yeah, let me check again. A Delaware. I think

so it was the limited partnership. So which one was it again? So then, matter of fact, it looked like that same website offer registered agents right there. Oh, there we go. So the one you sent to me was the Harvard one. Sorry, not this one. The Harvard one. Uh, I’m just gonna check the support emails. Just one second.

Yeah. Okay. Let’s see. Delaware, Inc.

Okay.

This one looks little, looks cheaper than the Harvard one. Okay. Yeah, cuz I don’t remember seeing, uh, Harvard. Let me, uh, here’s the email, so I’ll share the screen. Uh, all righty.

Right, so see this? So in this one, okay. And then that’s where it says Harvard. I get it. I mean, same, same website. It just that instead of going to the main website, we’re just going to the, uh, order url. So we’re skipping all that rubbish. So when you go to the main website, then you see all this, um, marketing, this loud marketing.

But we’re just going to the, we sent you the order page directly. I think that’s why, um, it looks cleaner. Okay. Well it’s more expensive. This one, eh? Yeah. And the one you just saw just now. Hmm. Interesting. It’s the same, same website. I think it’s because we’re just choosing. We’re just choosing this. And then sometimes I think they’re adding on a bunch of these guys are like, they’re probably just adding on a bunch of other features on top of the company corporation.

Cause I mean, if we’re just clicking on Form Corporation and what are the price, what’s, what’s the price that you got? I got, so when I did mine, I go up to about $600. Oh, for this? Yeah. Okay. And you chose limited partnership? Yeah, limited partnership, but it comes with the, um, uh, what’s it called again? The, um, the seal.

Um, so I pick, I pick that option as well. Then the more you pick stuff, the more it add up kinda thing. Yeah. That’s how they get people. Right. Uh, so what, what, so my question was, what, what’s your advice? Should I just go for the very basic package? As far as I’m concerned, I believe so, because like if there’s any problem or any amendment that you need, you can always go to the Secretary of States, from what I understand, uh, you know, to, to amend it.

You don’t have to go to like an intermediary to amend stuff. Um, I just like keeping it simple. I just like going to the, like if you really wanted to be really close to the medal, you would just go to the Secretary of State directly, um, you know, and do it raw. But this just makes it a little bit easier because at least you know, they already have all the things that they fill in, in the form.

I’ll get the bare bones, and then if you need to amend something, the Secretary of State is usually either really cheap or almost free. So that’s why, that’s why I So you, you, so you need to amend something or you need to create it. I wanna create. Okay, so what, what’s your question really? What’s the best package to go for?

The basic, the gold, the platinum, whatever. So he, so he mentioned something to you, right? So he mentioned something to you about going directly to the website. Now you can still use the company to help you, but, um, cause I know a lot of people on here when I be speaking on here from different countries, man, I, I’ve been running business in the United States, man, pretty much the last 15 years of my life.

So I, I’ve dealt with so many different states and when it comes to, uh, incorporating Delaware, um, the good thing I, now, the good thing I do like about Delaware, they’re slow. But the good thing I like about Delaware, they have a really strong customer service. Um, literally they have, you can call and they got a live chat, right?

So it is, and if you go to the website, I’m actually going to Google it here for you and put it in the site. And then, I mean, you can still use the file and service, but I’m just saying you can just kind of just see. And I’m, I’m gonna add in the chat right now, not just for you, but for anybody. Um, all right.

Is there, um, so yeah, and somebody just added some reviews about physical address.com. I don’t, I never used that. Uh, oh, I see the prices now. So at least you can compare the, the real prices on the website. So if you go to, uh, I guess the site that I sent, the link that I sent here, you go to form fees that say get corporate forms.

You can kind of just, um, go through that. But let me find you the exact, are you trying to create a limited liability partnership? Yeah. Uh, so a limited partnership on an llc. So two, two companies. So you need to create two. Yeah. So is the LLC gonna be the general partner for the limited partnership?

Correct. All right. Cuz we kind of got the same setup. So I guess the first thing will be the llc. So if you go and let me, this is the direct page. I kind of sent you another page, but I just sent you the direct page in the chat. It’s in the chat, the direct page. You and guess we can kind of look through that right now.

So can you blur it up a little bit?

What was that? Can you blow the screen just a little bit so we can kind of see a little bit better? Sure. I’m on, I’m on my desktop, man. Terrible screen. I need to get a real hd. Um, so let me see. Formation. I think that’s the one.

All right. So yeah, I mean, I think that’s it right there. So here we go. See this? Yeah, it’s 90 bucks. So they up, they doubling you, homie.

They doubling you,

but you save time. That’s the, I guess that’s the point. Save time. Get it done. You ain’t gotta worry about it.

Yep. So then this one, this one, I don’t know if they have, uh, an online, uh, Like an online submission, cuz this looks like it’s a last They do. They do. So what happens is with Delaware is they have a, a site where you, you go there and you um, you, you put it in and well go, go back to formation. It’s just on the last, the last form.

Yeah. With the last, the third form. Yeah. The other forms are just giving you the information, just telling you how to do it, stuff like that. But the third page three. Page three. Okay. Yeah, so that’s it. You pretty much, cuz Delaware is an anonymous state. So you just put the name of the llc, the register agent, you, it is literally asking you to register officer.

So you going to have to get a registered agent. Um, which is basically just the address. And um, basically it looks like that’s it. Cause I didn’t, I didn’t create my LLC in Delaware. I created mine in South Dakota. But basically that’s it. Cause I like South Dakota cause they do same day LLCs. But Delaware people love Delaware, like investors limited partners.

So our actual limited partnership is in Delaware. Cuz in America for some reason, that’s just. It’s just a good old boy system where they just invest in Delaware stuff, but so, so, so, so maybe, maybe I should go for the same day LLC as well. No, no, no, no. Don’t follow. I’m just, no, don’t, don’t listen. Let me, let me take that back.

Because limited partnerships is Oh, you talking about with Delaware? Yeah, yeah, yeah. They, they charge for the same day LLC with Delaware, but it’s like a thousand bucks. It’s something ridiculous, man. You can wait. It, it might take a week, but I think the same day LLC in Delaware, man is like a thousand bucks, man.

It’s, it’s a ridiculous, but if you wait, let me find a site that you actually fill it out and do the submission so you can do that. And then, um, here it is. It’s called doc document, upload service. Check in the chat and that’s it. You fill that out, you, then you upload it there and that’s it. 90 bucks, man.

Done. Cool. It’s, you see it right there? The submit a business, internet filing, click here. Done. Then, um, the good thing is they have customer, really high quality customer service. They’re a little slow, but you can contact them. You can get some where it say document upload right there, top left. Once you fill it out, um, you good money man.

And that’s pretty much it. 90 bucks or you, but you could still pay the other company to do that for you there. That’s it right there. You could pay the other company to do it for you. So just cause at least that way, you know it’s done correctly. So just on submit a business and, uh, sorry, um, just go to click here and select the document upload, correct.

That’s it. You, you, but you gotta fill out the other paper first of, of course. And you can, um, just add it on there and you just literally fill that out. Just that sheet out the other sheets is just telling you what it is and then explaining to you how to do it. And then you upload the, the third sheet to the document upload service.

And that’s it. And if you do something wrong and you don’t have an account number, because you didn’t, you only get an account number after you, um, submit it. So you just fill out your information. The, the submitter name I use is the, um, is the, uh, the registered agent information and, um, pretty much all of your documents will go to the registered agent.

Okay. And that’s it. Cool. Yeah. Cool. And all that stuff you’re talking about buying. Now, if somebody, if a company requires that, you can just get that If you wanna save money right now in the front and you can always just go back to the site and just buy that certain, I, I do it all the time when I need it.

If I need a certificate of standin or whatever it is, um, you could just go back and kind of buy that from, uh, the website. So, okay. Cool. Thank you.

Yeah. Alright. No, that was, that was pretty productive. A anything else amo. Yeah, that’s it. That’s it for me. Thank you. Thank you very much everyone. Cool. Yeah. So, so next step, just to reiterate, next step is just the notify me for the p o f and then, uh, yeah, you’ll get the links as well for this. And you already have them here, but we’ll remind you about this, uh, to submit it directly here.

And then the third thing is, uh, yeah, no, I think that’s about it. Good. Yeah. Alright. Cool. Thank you. Need copy this stuff and then I’m off outta here. Thanks. Thanks everyone. Good.

So afterwards we had, looks like Tanya.

Hey. Hey Tanya. It’s going well. How’s it going? Good, good. How you doing? Just another Monday. I can’t complain. Yeah, I know. I just kind of saw when you guys were talking about that physical address, um, com and looked up, uh, Better Business Bureau. The reviews aren’t as great, but, um, I, I don’t know. In terms of, uh, is that with, um, just setting up, uh, L L C in New York state?

Hm. I mean, I, I use them for a brief amount of time. Um, I mean, honestly for some, the, the, the, the, the address has to be in Delaware, if you create a Delaware company, that’s a part of it. Yeah, that’s a, that’s a good point. So that’s why, that’s why for them you can choose Wall Street, but then you wouldn’t even be able to use it for this.

So you have to get them for Delaware. Um, and there are tons of these services and, and as we said, there’s also, um, the registered agents, which is, uh, it’s more close to the middle and more direct. So Yeah. And then also if you’re gonna do, you know, like most of them are, you’re gonna use a virtual office.

But do they do all those services so you don’t have to go to another place to use the virtual office address forward? And like, do they do it all at some, some of these, uh, ll c uh, register, like the Delaware Inc. The one you recommend. Oh, you’re asking if the registered agents do any of the additional services of forwarding?

I don’t think so. From, from that good discussion. Like it seems like they, they really don’t. Mm-hmm. Just based on all Well, it, it depends. It depends. Cuz I got different ones. So it depends. You kind of got a contact cuz the, my South Dakota d uh, registered agent, they, they don’t even really accept mail, but in Delaware.

Oh yeah. But the one I got in Delaware, they do it all. I mean, they, they scan it, they send it, they do all of that. If you get physical packages, they send it to you. Um, the one I got in Florida, they actually send it to you internationally. Um, oh, that’s, I didn’t think about that because I, it just depends on which one you choose.

So you gonna have to do some due diligence to kind of go through, which is good. You know, kind of go through, talk to them, find out do y’all deliver to, cuz if you don’t need anything physical, they will scan it for you. Now some stuff, like some stuff I have gotten like cards cause I get cards from my business to my registered agent.

They forward it to my secondary address, um, cuz my secondary address forwards it internationally cuz a registered agent I have now, they do forward it internationally, but they charge a ridiculous price. So you kind of just gotta look and do your own due diligence to find out like what, what’s best fit for you.

That’s why I’m not gonna personally, um, recommend any of them cuz I don’t want this to happen. You look it up and then it’s bad reviews and you looking at me, so, so I’ll just say, just, I’m sorry. You the one that’s, I just came in when you guys are talking, so I didn’t know who said it. I just saw the name.

I just looked the name and I just Googled and I just said, oh, I’m like, ohoh, maybe you guys catch that. Yeah. Okay. But in Florida I need, who do you use and do they forward the mail to, uh, Canada? Yeah, but see you still can’t use them because yo, if you get in a Delaware company, that’s, that’s the point of, of the, the Delaware specifically, you have to have a Delaware registered agent, which is basically a, a, a real address.

That you can use. That’s why with registered agents, they only charge you a one day. It’s a one year fee. That’s why I like registered agents. It’s a one year fee. Now the virtual offices is monthly. It’s like five, like he showed it was $20 a month. That’s $250 a year. Registered agent is like 50 to a hundred bucks, depending on which one you got.

So like my one in, um, South Dakota was, no, my one in Florida was, I think it’s 40. So, you know what I mean? It just depends. But if you create a company in Florida, you gotta understand a lot of people don’t like investing in Florida because Florida is not an anonymous state. Florida, it has benefited me in certain instances because I got foreign people in some of my companies.

And that benefits me because with Florida, it literally, it’s, it’s, it’s public. So you get to see the members of the company, stuff like that. A lot of limited partners, especially it’s public in Florida. I didn’t know that. Public. Yeah, it’s public. So that’s, that’s why. That’s why across, that’s why Raises and everybody else is pretty much telling you Delaware, Delaware, Delaware.

Because like I said earlier, it’s just universally understood that Delaware is the place for business. Basically. Wyoming is catching up, Wyoming is catching up. I don’t like Wyoming’s customer service. I like South Dakota personally, but I only use, I use South Dakota for a, for a different type of business.

But for my limit, for my investment fund, I am using Delaware. You’re using Delaware, okay. Interesting. So if you are doing investments in Florida, uh, if you have it registered in Delaware, it protects the investors and like your LPs and even the gp, like myself, my personal information would be protected.

But if I Where’s your gp? Wait, where’s your gp? That’s the question. That’s the thing. I wanna, I wanna invest in Florida, but I was considering setting up a corporation in Florida. But if everything’s public, it’s not, uh, private. It will, it will be public. So that, that, but that means that if somebody, like people can look up your business in Florida.

So if, whatever your business is Read llc, I can go to Florida website, it’s called Sunbiz and you can just look, I can look you up, I can look up everything is public information, which can benefit you in certain things cuz I, I had a situation where I had some real estate and people was trying to, they, they didn’t wanna go through with the deal.

We ended up closing the deal cause they didn’t, you know, we dealing with a whole nother beast in the United States, but they ain’t believe I owned the property and all of that. So I had to show, I had to literally go to the website, show them, like print it out and show them like, look, this is the reference number.

You can see my name right there. Cause the people I was doing business with, they wasn’t used to doing real estate business with a business. They was just used to like dealing with individuals. Oh, sophisticated business People know that you put real estate in a land trust or you put it in a L L C.

That’s just people sophisticated, but people that, that, that sometime that got money, but they might not be sophisticated investors. They was looking for it to be in my real name. So we just had to figure all of that out. So that’s how that benefited me. Were they an accredited investor? No, they weren’t. Oh, okay.

Let’s

thanks for stepping up by the way, but, but, uh, So, so Tanya, any, any other, um, question. I think the next step for you may be the introductions with the new email. So I think that was the next step, but any other questions or, yeah, yeah, that was the next step, but I still, like, I’m in the process of setting up everything of the I L C I or the corporation.

I haven’t done it yet and I was thinking if I need to get all of that stuff sorted out too. And then I actually wanted to do, like, I, how I told you I have that L L C in, in Michigan I want, and I haven’t done anything with that, but, um, I wanted to uh, set up another one, but now I don’t know if I should want to do it in Florida cuz where I’m interested in for my own personal real estate, not not related to my fund.

I wanted to invest, uh, in the property in Florida. So, That’s where I’m, uh, wondering if I should just use the Detroit LLC that I already have for, for a deal that I do personally in Florida. Okay. Um, so just to make sure I understand the, like what what you’re saying. So, so you’re asking if you should assume the two messages.

So you’re asking if you should do the deal in Florida, or sorry, you should create the, you should use your Michigan L l c uh, yeah, in your name. So you do the deal in Florida as opposed to what? As opposed to like opening up another, uh, L L C like in Delaware. The Delaware one that I wanted to open up would’ve been for the fund.

Yeah. Well, well because, well, most of the discussion we’re having, cuz we’re just about raising money for your fund, you know, like that’s usually that that’s my or or our function. So, I could talk to you all day about the fund. And that one is Delaware. That one is, is go, go, go. The personal one, I’m not too sure, uh, because we usually don’t, like, I, I just don’t advise people on, on what they do personally.

But, uh, for the fund it’s, it’s Delaware and it’s, we go all day in, in Delaware. So, um, that being said, I mean, yeah, maybe I can refer you to somebody that knows what’s due for the personal one and what your goals are for the, like, personally, but, but yeah, I, I’d really just, uh, my goal is really just to focus you on raising money for the fund.

Yes. But is, is she saying that her personal one is the GP or no? Is it No. No. Oh, okay. You were Okay. Okay. I see what you’re saying too. I see. Okay. Yeah. So I’ll try to direct you to, I don’t know if I connect you with Joshua Gogo, you know the tax expert by that? I talked to him. Yeah, I did. Talked to Joshua.

Was it productive or how did that go? Yeah, yeah. It was very productive. I I, I’m gonna follow up with him. Oh, excellent. Cause he was talking just in terms of being a Canadian and investing in, uh, with the fund in the US and things that I need to be aware of and whatnot. Yeah, no, I referred him a lot of people.

So, so, so listen, so the personal one, I just focus on, on that with him. I’m just about to fund and then for the, uh, for the actual real estate deals with uttering people’s money, uh, right. Mm-hmm. And what if the investor, they’re accredited, but they’re not in the US or ated an overseas or person in the Caribbean or something.

I heard about something called a theater fund that could, um, allow overseas investors to still go in the fund. It’s, you set up, uh, um, You set it up, uh, in like the Cayman Islands, for example? Yep. Yep. Like it, it depends on, on how it works. But some people they would say that, okay, so you have the fund in America and they have steps limited partners in America.

And then some people for tax purposes, like, let’s, let’s say like Devon, there’s somebody called Devon who we’re working with, uh, he’s raising $8 million with doctors. He got his doctors to create the he for the doctors. He created their own companies, their own personal LLCs for each doctor, investor, uh, to reduce the tax based on their salary.

You know, I don’t really know the tax details cause I’m not really a tax person. But similarly, like instead of it saying, for example, Tanya Reed is an investor in raises.com fund one, uh, some, some people do. Uh, some people may do in the Caribbean, they may just create like special purpose companies for the investors, uh, to invest in, in, uh, in the fund in America.

So maybe something like that. Uh, I would really be like as concerned, I would just start with the basic boiler plate PPM to start the conversation and then just add risk disclaimers for the different countries and so on. And if it’s a commonwealth country, it means a lot of it is really similar. So, um, okay.

Start with the boilerplate and reverse engineer the tax later on. Like, I don’t know if you notice a pattern, but usually when I answer a lot of your questions, usually I’m just, I, let’s just get the actual, uh, like the, the actual things to do, done more in terms of talking to people. And then I backload a lot of the, the, the fine details up until they’re abouts to actually seriously move forward because a lot of people just stuck on this stuff.

So then I’ll just really, uh, backload some of that stuff until somebody’s serious, uh, to actually invest. And then when they are, before they actually invest, Or you have any serious conversation in writing, then I’ll just finish everything. That’s just what I’ll do. Okay. So in terms of the investor in that topic, I wanted to, um, get an idea of, um, what I need to prepare for before speaking to them.

Yes. And, uh, yeah. Mm-hmm. Get into that. Like, that’s probably more what I would, uh, wanna focus on. Yeah. That’s why I think Yeah. Because we want to get moving forward. Right. So, uh, just, just as we discussed last time, same thing we’re just saying, uh, what is we’re asking them, what they’re interested in doing, and, um, What their criteria is.

If they ask us preemptively what we do, we just talk vaguely about our buy box. So the types of commercial deals that you’re looking to say, oh yeah, no, we have a few commercial real estate deals that, you know, are, are really, uh, that are yielding. Uh, you don’t say any terms. You’re saying maybe they’re, they’re yielding anywhere.

They, they could be yielding into the high teens. You know, we’re just doing some due diligence and some deals and we’re really open to that. So you’re just keeping it vague. And then, and then if and when they tell you what they’re investing in, then you just keep them on standby for when you get the, uh, deal in the contract.

That’s all we’re doing. It is just really casual for that first conversation. Cuz usually not first conversation. We’re not selling, it’s a second conversation we’re selling. Okay. Yeah. Okay. On, uh, raises on the website, is this like a script or something that I could be using for that one? Just obviously it’ll be just me talking, but it might be some points I, I need to remember to say.

Yeah, no, absolutely. Uh, I have a script. It’s actually even a recording. It, it was a few, it was a few years ago from, even though I had, I had less confidence then, and the call still went well. And, uh, you can, you can take a look. And so, uh, where is it, uh, communicating? All right, so this is the link. It’s gonna ask you to log in, but basically it is, let’s see.

Yeah, you can try this. It’s a 10 minute call, initial 10 minute calls. Um, just pretend that you’re, you don’t have a team yet that are doing this. You’re the one doing it. And it’s just me talking to a New York investor. They do secondaries, so they buy off, uh, general partner stakes on secondary market. And I had no idea what that was at the time.

So I just, I was just open to, Hey, what do you basically, what do you do? Um, so. You know, it is really, really easy stuff. Just understanding what they do, trying to understand it, and then seeing if the deal that you have in the future would make sense for them. And like, it is really simple stuff here, so.

Okay. I didn’t even know that deep you can sell on secondary markets. Yeah, it’s a whole thing. It’s like this huge industry for, uh, for funds and, uh, I think Joshua is having somebody buy off, um, buy off one of their, um, their equity stake in one of their funds. So, yeah, no, it’s the whole world in, uh, especially in New York, they’re just obsessed with that in New York for some reason.

Oh, they are? Okay. Yeah, there’s so many of them. You just, you just just type in, uh, in LinkedIn or in Google. Secondaries. Secondaries, and then you just start seeing a bunch of, they call themselves secondaries. Oh, okay. Yeah, they try Google Invest. So is it more cost effective to buy another GP that’s already been structured than to form their own?

I don’t know if it’s more cost effective. Uh, it’s just, it’s a very, like, it is a very, like, they only do deals that are stabilized usually. So if somebody’s, if it’s not stabilized, stabilized asset, then you wouldn’t really find that many people that do it. Um, yeah, but who knows, who knows why they do it.

Uh, I usually focus in primaries. This is just like a side example and I, I won’t really get too concerned with these details. I, I just look at the call script and, uh, and just use the structure to, uh, call these people for the first time, uh, when we introduce you. Okay. All Alright. I’ll take a look at that.

Um, so I wanted to know another day that you’re available. Yeah, absolutely. So we can, uh, book away. Uh, we’ll start the introductions with you, uh, tomorrow. So we have it lined up for tomorrow. We’re just waiting for some people to, um, To clear themselves out because we had to do a lot. And then sometimes the investors get overwhelmed.

But Yeah, no, it’s to book the call. Yeah, just heads head over to, um, book help call and then scroll down. Then it’s a one-on-one or we can just choose the time right now, you know? And then whenever, let’s see if there’s anything open right now before we hop off. Um, ninth. Wanna do Friday? Okay. Friday four.

Uh, yeah, that’s fine. Okay.

We’re using this one, right? The Tanya at Larger Capital? Oh yeah. Six. Six. Yeah. And what email do we have or what phone number do we have for you? My same cell number, 4 1 6 5 2 0 1 8 7 3 4 1 8. 5 20 18. 73. Okay. Five 20. Mm-hmm. 8 1 73. All right. 1873. 1 8 73. Okay. Got it. Mm-hmm. Cool. Yeah, so we have that one as well.

So cool. Thanks. Yeah, no, no worries there. Good, good. Getting an update. Okay, Tamara, how’s it going? Pretty good. Uh, na. Um, I got a couple of, uh, senior housing deals. I thought it was promising on the numbers. Um, I sent it to underwriting for you guys. Uh, I was waiting the number. I know I sent it like last Thursday I got, so, yeah.

Could be. It could be, it could be done by now. Let me check. Uh, maybe it’s done. Uh, go on, sir. Yeah, I was thinking like, if I see the numbers pretty good, uh, I would like to see if there’s any option on raising money and all those things on that deal. Yeah, yeah, absolutely. Let, let me take a look to see where he is at with it.

And as I’m pulling it up, I, I had a really interesting conversation with, uh, somebody that, he does a, a strange thing. So he, he has senior living facilities, right beside churches and Yeah. And he was actually telling me, he was saying that, oh, that’s, this is my strategy to, um, to develop churches because he has the, he attaches the, the same land next to, uh, senior home living facility, uh, because it, you know, that’s how he makes the deal profitable enough to fund churches that are not profit, not-for-profit.

So, uh, it was an interesting call. Yeah. I didn’t, yeah, I didn’t, yeah, I thought about that.

Yeah. Really strange. But, uh, for him it works good. Okay, so I’m just pulling this up in another window.

Uh, it work. I try to get more details. This is what I got from the brokers and there’s operator already there. Yeah. On this business, I don’t how to do that much. Um, and um, yeah. Okay. Got it. No worries. Um, okay. Communication, new acquisitions. Okay. Here it is.

Oh no, sorry. Wrong one. Yeah, we have a tris.

I guess in the meanwhile, while we’re still here, we have matter who’s a c registered CFA here. So, uh, yeah, perhaps if you have any highlights of the deal, maybe any financial, like just highlights, simple highlights, maybe you can share up the matter and then he can also share his opinion as well. Yeah. Uh, so, um, so the first deal is uh, uh, it’s in north of, uh, Georgia and it’s have 27 beds each making average around, uh, let me see, uh, deals there.

Um, uh,

I’m putting up Excel file.

Yep, no worries.

So each making, uh, 3000. So the, um, the rooms so average, yeah, there, there’s a studios there. Then the rooms there, right? Rooms making average 3,500 studios are making 2,900. So monthly rent around like 76,000. Um, and annually is like 921. Now, catch there is, this is a senior living facility. Um, that means there’s expenses there, uh, um, substantial amount.

Um, now, uh, probably is adjusted around like a 467 maybe. Like, let’s put 500 k, uh, so, and total around maybe like 900. So probably making like a 4 94, 400 k. So cap rate, they’re looking at around like 10% cap rate, uh, numbers wise. Um, then, um, I never underwrite, I never done any of these deals. Uh, I’m going to talk to the owner, uh, tomorrow.

So that’s, I get more details on this thing. Um, and, uh, owner is pulling a reasonable income too, 150 K. Um, so, um, when you remove owner’s, discretionary, add backs and all those things, it’s reasonably good money in my mind. I’m not saying great, but you guys, you guys can push me back. What should I focus on?

Probably you guys have more experience than me. I’m, I’m like, yeah, go ahead. And how much, how much is, is selling it for? He’s selling for, gimme one second. Uh,

One second. I’ll tell you this one.

Georgia. Georgia.

So is it 24 units?

He’s asking prices. 4.9 million. 4.9 million. Yeah. And, and no, I is somewhere around 4.90. Um, I think it’s a little bit over that, but that’s what it’s, no, but you said the revenue is about a million dollars a year. Yeah. Because of these are, these are not regular. Right? So this is, uh, 24 units. Uh,

So, yeah, so, so, so basically like the valuation for this one is five times revenue. Five times revenue. Is that too much? Right. Yeah. So that’s like some billion of revenue and 5 million and, uh, and yeah, like, and for, for, from a business perspective, it’s a lot. I don’t know if that includes the land and Yes.

Yes. There’s a real estate deal. Yeah. Oh, yeah. Yeah. But so I, I like, I feel it’s, it’s high. It’s high. Okay. It should not be this high, like five times revenue. And what, what, what growth rate are you expecting? Maybe a nominal growth rate. It would have an extraordinary growth rate. Right. So, uh, I cannot speak behalf of that because I have, I don’t have much experience on this industry.

Yeah. Yeah. So I like if we think about just a, like, so you have to separate out the, the business. That’s the living facility, that’s the just revenue generating from the land and the property. So you can maybe, so I don’t know how much the land would go, uh, in, in that geography or in that location. So, so you would have to factor that in, maybe look into the, um, you know, the.

Area that it has and the building costs around that. So that’s separate. But from a business perspective, I don’t think this is a high growth industry or, or, um, no. No, I don’t think there’s like a big opportunity for growth. So from that perspective, I would think about like maybe five, six times a bit down maximum.

Okay. In this market, probably lower. Okay. Yeah. So maybe let’s say 500 K for the business and, and so they’re probably saying 4.5 million for the, for the real estate and the building. Yeah. So I can’t really comment on that. I have no idea about the specific geography. But from a business perspective, I think, um, yeah, it’s, it’s too high.

Okay. Did, did you underwrite the, that, uh, res deal? Right? How did you guys underwrite the Hins deal? He bought something, right? Correct me if I’m wrong. Oh, which one was this? He, Henry bought a senior living facility, right? Correct me if I’m wrong. Oh, Henry. Yeah, Henry. Henry. Um, no, Henry, we just advised him on the, the pitch cause everyone’s like a little bit different, so, so Henry we just advised on the pitch deck and a limited partnership and then how to sell it, and then he just brought in the investment to his existing deal.

Uh, I don’t think that’s, um, we, we spent a lot of time on the underwriting for that. Um Oh, okay. We just helped him sell something that he, he already had and he didn’t really need underwrite from that, my memory. So, um, uh, I’d be, I’d be interested in, in re-underwriting that again just for fun. But, but I checked, I checked David.

David, David looks like he was out of, uh, office. Usually he would do it on a weekend, but, um, he was with his in-laws, but we, we sent him over matter’s opinion is just as good as his anyway, because Okay. Um. I mean, they’re both, they both are cfa, so matter, matter here knows what he means. I don’t know if matters left or right or down.

I don’t know where he is in the Zoom call, but, uh, yeah. So Matt, what are you, what, what are you saying is pretty much, uh, numbers wise? What, what does the, uh, he’s saying capitalization is 10% on the Yeah, so that, so that’s, that basically means he’s making a hundred thousand a year. Yes. Yeah. Yes. So from that perspective, just on the, on a business valuation, I would say 500, 600 k maximum.

Mm-hmm. But I think the remaining value is the property value. So the real estate and the building, and that I, I would, I would say you would have to look at the comparables and, uh, yeah. What, what, uh, other real estate properties were sold in, in that location and in that area. Okay. And, and you might have to, uh, come, but yeah, from a business perspective, just if I’m just looking at like 1 million of revenue and 5 million of, um, uh, valuation, I think from that perspective, it is definitely high.

Okay. Okay. Okay. Yeah. All right. No, this is good opinion because I was thinking it’s a good deal, but I can see where are you coming from? So you’re pretty much saying is the, um, the make sure the business is separately earning, then the, uh, the real estate is separately earning, right? Yeah. Yeah. Okay. Yeah.

So like, you would have, I mean, it is kind of reoccurring revenue, so that is a good thing in this business. Yeah. But even, even a, a SaaS company that is growing at a, a good pace, like 20, 25, 30% per year. Uh, and, and that has a rule of 40 for a bid and, and revenue growth had combined. Those kind of companies are going at seven x revenue, eight x revenue in this market.

Mm. Okay. And this is a low growth company. Uh, so yeah, from that perspective, it doesn’t make sense, but I think the majority of the valuation is coming from the real estate aspect of it. Yeah. Yeah. So you might want to look into, uh, the, the valuation and the previous deals that are happening, uh, in that area.

Okay. Well, here, here’s the point. What about an appraisal on a real estate? Like, uh, I need to ask that question from him. Yeah, yeah, yeah, yeah, yeah. Because I’m assuming that like, and you’re, you’re more in real estate as well for your background, but I’m assuming that the, the value, the appraisals almost everything here.

No. Yeah. Yeah. Appraisal’s really important for this. If it’s mostly real estate, I can see that. Yeah. Yeah, definitely. Yeah. Uh, so let me see if I can show you, uh, yeah, let me allow, yeah, you can share now. Yeah. Okay. Alright,

good.

Alright. Let me see.

Can you guys see it? Yes. Yeah. So, um, so rent roll is like this.

So each room, uh, like not a studio, actual room one is 3,800 or 3,600. So, um, I think there’s a gap you can improve. If you sign the lease, you can’t, but you need to wait, right? There’s something, some sort of documented, I think that’s why this is 2,700. You can move it, but you can get to three, 3,800. Um, there’s a 3,200 this fund, 2,800.

So there’s a place to improve in my mind, but not saying a lot, but maybe another, you can cross like 84 right now, 84, 85 in my mind, easily. If we come to the full number, um, then this is the annual rent or income wise? Yes. Major income. And, uh, que question on here before I go to the expenses piece.

Uh, no. So, um, this is the, um, Income. Income. So they’ve made, I think, last 7 56, now they increase up to, uh, 9 21. That’s what he was saying number wise. Then the, these are the, all the expenses. The biggest one is the payroll expenses by this four 15, and this is credit card expenses. Then there are depreciation expenses there.

So you can deduct that part in my mind, like it is just accountant. Then, um, yeah, so I think it’s like a seven 17. I just, what he’s saying is like all the add backs, right, like interest 53, uh, 160 to 2 49, uh, depreciation is 33. So all those things, so in my mind, Um, so net income is like, you’re at 76,000,

so, uh,

yeah, no, I think it stays the same with a hundred k about approximately a hundred K and income. Yeah. Yes. That will make it 10%, but this is a little lower, so eight, 9% maybe. Yeah. Uh, yeah, I think the, my comments remain the same. I, I think it’s, it’s more about the land value and the building value and less about the business value.

Okay. Okay. Yeah. So is this kind of a thing, mother, you are underwriting is like pretty much, hey, separate the business, what’s exactly value then you add the land, uh, per Brazil based on that, right? Yeah, yeah. That’s what, how, how I would think about this. Correct? Yep. Okay. Okay. Oh, good. And, and while, while, while we’re on the topic, um, because one question actually for you, matter from my end because, um, what was the command?

So I guess the, the question we asked, um, one of the other CFAs was, um, to send over the Yeah, just to make sure, like what’s the valuation of the, like what’s the fair valuation of the company and then just the typical, what’s the r o e, the c o c, the, um, i r r, if any? Uh, would that be, so, so basically what you’re saying is ask that same question, but for the real estate separately and for the business separately, or what do you think?

No, I mean, I mean, so you can combine it too. It’s not that you cannot combine it. So if you are analyzing the business, and so how we do a, a regular valuation is we take look at the free cash flow and the EBITDA numbers for year one, year two, year, three, year four, year five. And then we take a present value of that.

So that is the business valuation. But if you add the, uh, the valuation of the, of this property and land that you might be able to sell it for, uh, in year six. So you, let’s say you bought it for 5 million today and you know you’ll be able to sell it for 6 million. Mm-hmm. So that would be your year. So, so your year five, uh, free cashflow would be the a hundred K that you’re making from the business, plus 6 million that you’ll make after selling the property, selling the bus, selling the whole thing.

So you would add that and you would take the net present value of these five, uh, year, uh, these five cash flows from year one till five. And he would come to a conclusion like, what kind of, uh, returns is, is this business, uh, expected to make? Oh, no. Nice. Okay. Okay. Yeah. So I’m just like from a, I was saying it separately before because that’s how I would think about this, like if we were breaking it down.

But from a valuation perspective, we can just add that final, because real estate and, and the building value is just a number, right? You just have to add that, that you will be able to sell it at the end of year five. That that’s the only thing.

So I was just breaking it down for context. Yeah. You know, it helps out a lot. Yeah. Yes. Okay. So David’s doing, still doing the same thing, so, so the only reason why you’re, so, the reason why you’re pretending that you’re selling to real estate is just to show people the value of the real estate, basically.

Yeah. Yeah. Exactly right. That’s a good point. And yeah, it’s, it’s important for the, the person who is buying to understand what are you really paying for. Yeah, yeah, yeah. And, and this is the way you can understand the whole value of the deal. So for example, if, uh, a similar property in that area is selling for 3 million, including the building and fixtures and everything.

Yeah. And so that means you can actually say, okay, no, this valuation should be about 3.5 million because the business value is about 500 k and the real estate value from other properties is 3 million that I know I’ve seen in the market. And so that’s why you’re asking me, uh, that’s why this is the 3.5 is the fair valuation and not 5 million.

So that’s how you can argue with, with the, uh, with the seller. Okay. But we’ll also press them on the real, because I know you, you said, you mentioned you talking tomorrow. I would press him on the, so David, hopefully we’ve finished by today, but I would really more press him on, uh, the real estate side of it and ask for justifications, appraisals on that.

Cause the business is just not, uh, doesn’t make sense based on these numbers. Ok. Yeah. And he might also have. Component of goodwill and this, so maybe the business is 500 K by our valuation, and maybe he is also charging a hundred K in, in Goodwill, or 200 K in goodwill on top of everything. So that, that might also come into, uh, a play here because since it is a, a running business and it is generating cash, so, um, usually a seller might want to charge a little bit of a premium for that, for a going concerned business that is, that, that is generating good money.

But yeah, so that’s why it’s, it’s good to break these things down and get a good understanding of what you’re paying for. Mm-hmm. And how did the, the, the seller arise to this valuation? Okay, so let me ask you a question. So the, I should ask the real estate, do they have real estate appraisal? If it is how much?

Right? Uh, then, uh, second, uh, third question is what I should ask on that. Uh,

Well, the, the, so, so the idea, so I like thinking more big picture. So like the, cuz the idea would be to see if what he’s selling the business for, cuz the whole goal of all this underwriting is see if the goal of whatever he’s selling the business for Yeah. Is consistent with good industry practice. Um, so you see the appraisal, what they sell lot for in that final year in year six.

Yeah. Year five. Uh, we just want to estimate what that would be based on the appraisal and the numbers, which we’ll get. Mm-hmm. Number one and then number two, uh, the, the value of the business and the next for free cash flow in the next five years as matter said. And if that number is way less than what he’s selling it for, why is that?

So basically help me understand. So it’s like, help me understand why, why is it that you’re selling the business For this one, the valuation looks like this. For the business and like this for the real estate. Help me understand. And then that’s pretty much it. And then he’s objection handling you on why is it whether that’s the case.

That’s his flavor, that’s my overall idea. And obviously because you already spoke to him, you obviously have your own, you can add your own flavor to it. Yeah. That’s basically the idea. Yeah, definitely. Yeah. I’m trying to get the, um, I’m trying to get more information because I know for a fact, um, on a Covid time, these companies did do really well.

Yeah, these guys got one of these companies. So I’m, I’m trying to get more information. So I know they just, they gave me like 2022. So I asked them like, can I get 2021 and 20 22, 20 20? So that way I can have three years to make a good decision. Um, now probably they have, I’m not saying they don’t, they, if they have a really bad reputation, they cannot fill it up because if you go to, uh, like a lot of, uh, The senior housing facilities still, they can fill up a hundred percent.

Yeah. This is not big. This is only 24 units, but they are waiting list. That’s a good thing. Right. So that means they have good reputation. They did a good job somewhere, right along the line. Um, now you go, yeah, go ahead, mark. Yeah. You, you may also wanna look at the numbers before Covid as well. Before the Covid.

Okay. Yeah, because, uh, especially in healthcare, there are so many, uh, you know, unforeseen things happened and like since 2020 and for 2021, even the valuation, even the money flow, all those things impacted healthcare businesses a lot. Yes. So you may want to have a neutral understanding of what, how the business was doing before, uh, like, you know, the, the covid, uh, scenarios before the covid.

Okay. All right. Okay. Okey dokey. So that’s a good thing. Um, yeah, and also, I don’t know if you will be asking for it, but I would also ask for the latest numbers. So last quarter, uh, even if they’re unaudited, I would ask for the last quarter numbers. The last, yeah. Yeah. You already have, uh, I think it’s until March 23, so that’s March 31st, March, April, may.

So yeah, pretty much. Yeah. Yeah. So you have, yeah. Yeah. Even if you can get a quarterly breakdown of this, it’s, it’s usually helpful for, for the last year, a quarterly breakdown. Um, then you can see the trend, how, how it was going. Okay. Yeah. So, um, um, yeah. So do you think mother is a bad deal from outset? I’m turning down, but I just, no, actually no.

I cannot really say that because. Like it, it might be a good deal depending on the, the real, the value of the real estate that we’re talking about in the building. And if a hundred k, 10% return is, uh, is actually not bad. But, um, but you should be able to sell this business, um, for, uh, some profit, uh, after five years to make a money to make some money.

Okay. Let me just try to put these numbers in, in a model and see. Okay. Hey guys, how’s everybody doing tonight? Yeah. Oh, Peter, how’s it going? Oh, fine. Thank you. Um, Samara, how you doing? Yeah, and uh, pretty good man. What’s happening? Fine. How you doing? That’s everybody doing. Yeah. Um, I look, I work in healthcare for 22 years, so, oh, is this a nursing home or what kind of healthcare business is this?

Yeah, senior city housing facility. Okay. Did, what’s the occupancy rate? What’s how many? Hundred percent. Hundred percent. Percent. And what is the marketing strategy in terms of how do they get people to come in? Do they tell you about the Yeah, so what they told me is like, uh, they were able to fill it up very quickly after Covid happened.

That’s what they told me. They tell you how to do it. They tell you how to do it. Yeah. So they go through, um, okay. Because sometimes, uh, I tell you exactly, uh, I write down these things. So they go to a place, your mom website or a, uh, then they get through the referrals or they help social workers. So they don’t do a lot of advertising per se, but it’s just more like a word of mouth.

Okay. Okay. And, um, in terms of, um, you know, the healthcare professionals that work there, they have, uh, more working LPNs or CNAs that tell you, um, so, um, staff they’ve got working to provide care. Yes. So they have 11 people working. Um, and everyone is working around $15 to $12 per one. Le one person $18 per, I don’t think there’s unn, so I’m just thinking based on the numbers.

I’m saying maybe not. I’m, I’m wrong. I don’t know. I’m just saying, um, yeah. The reason why I’m asking is because what really normally take most of the bulk of the expenses is the healthcare professional, because if they have more nurses, working nurses, the average, um, rate for a nursing by $25, I mean, that’s for the state of Maryland.

I can’t talk for all the state, but, um, if you have more c working, the minimum for CNA is about $18. So all those things, you have to look into those factors as well too, in terms of how many number of staff, what is the pay rate, and at the end of the month, If you sum up the total number of staff to pay rate, that should give you an exemption of what a total cost that’s gonna be every month.

And also bulk of the money. That also expenses is also gonna be cured, will have to do with food. And how do they feed them the medical supplies? Cause medical supplies are quiet, expensive. So you wanna ask those questions. How do they get those things? So you wanna be sure that you know how to get their medical supplies.

Um, you always want to know, you know, how they pay them. So those factors are very important. That would determine whether the revenue looks like and how do they maintain their revenue. You know, you can have 100% aqua rate, but mm-hmm. If you don’t have adequate staff working and even if you have adequate staff, what is the pay rate?

I they pay them. Yeah. Cuz most of your expenses is go to paying the staff. Yeah. I.

And another thing you want to look at is, uh, if they have any lawsuits or anything like that going on, especially in the healthcare, healthcare side of business, like if they have any bad reputation with lawsuits or any lawsuits, that that might be a big liability. So that’s, you may want to look into that.

Okay. Lawsuits. Okay. Lawsuits. Yeah. And so I, I also did a quick analysis, um, you wanna share screen? I can stop my sharing. Gimme one second. Go ahead. Yeah.

Good job matter by the way. Yeah. Thank you. I appreciate it. Yeah, so I just used an already existing template that I have, so I only as assumed a hundred K in ebitda, uh, sorry. EBT earnings before taxes, assuming a 20 20% tax rate. So this is going to be your, uh, free cash flow and, and $10,000 of let’s say, uh, CapEx capital expenditures.

So it could be anything we can assume. We can not assume. Yeah. And if we are selling this, uh, for 7 million at the end of, uh, five years, then it is breaking even. So you’re buying it for 5 million, you’re generating 70,000 in cashflow every year, uh, and you’re selling this for 5 million at the end of five years, or 7 million.

Sorry. And then it is breaking even. So you, you will need to sell this for more than 7 million to, uh, make this a profitable endeavor. Yeah. So if you sell it for 8 million, then you are making 11% I r. Can you go up and change the number to maybe 4 million? How much would be the purchase price? Purchase price?

Yeah.

And how much would you, do you want me to consider selling this for if I can get seven or maybe even eight, right? I, I don’t know, hypothetically, so if I’m taking 7 million, then yeah, 13% is the IRR and net present value of a million dollars. So be probably breaking even at 6 million. And anything over seven is a profit.

Yeah. Okay. Yeah. With six, a little lower, little less than 6 million is the break selling price for you. So what, what would be the price I think you think we should give them? Like offer wise? If we give, offer it, it, it all depends on what, because say, if you look at this, right? So why I was separate separating, uh, the, the real estate from the business is because the majority of the return is coming from this, that, that you are, uh, the final year selling price.

So that is your crucial assumption. Yeah. That okay. Like I will be able to sell this business for 7 million, 8 million, 6 million, 5 million and you would come to a price based off of that. Yeah. So lemme, so let’s say if you’re, yeah. If you have an assumption of let’s say, you might be able to sell this for Yeah.

I, I might actually, I would go. Reverse on this. So what is the minimum return that you want from this business? Uh, like lower than that, you would not even consider this. So let’s, let’s talk about that first. Okay. Uh, um, so cap, I, I would like to have a li cap rate is a little bit over 10. Um, 10% no cap rate.

I don’t think cap rate for this specific business is that important? Okay. Because if you think about it, cap rate is only giving you like, so right now it’s 70,000. We are assuming after tax, tax and CapEx, even if you have a cap rate of let’s say 12%, it will only increase it by what, 84,000? So like 14,000 more per year.

So that’s not really making a big impact. The big impact is the final. Sale price. So let’s say you, you do, you, so for example, let me, um, tell you how I would think about this business if I have plan, license, this and, and, and so I would say, okay, I need a minimum of 15%, um, return annual compounded return to even consider this business.

Okay? Minimum 15%, right? Mm-hmm. So if you want to make 15%, that means you would buy this for 4 million at a hundred k of, uh, net, net profit, uh, not net profit, but, uh, e EBT per year. Um, and then you’re selling it for, let’s say 7.2, no, 7.5.

Yeah. So you are basically, Return, uh, getting a 15% compounded growth rate, uh, com compounded return. If you are buying this for 4,070,000 of yearly cash flows and you’re selling it for, for 7.5 million at the end of five years, yeah. Okay. Yeah. And, but if, let’s say you want a lower return, so let’s say you’re okay with a 12% return.

Mm-hmm. Right? Then it might be, let’s see. Yeah. So if you sell it for 7 million, you make about 13% return and not 12% return. Okay. Yeah. Okay. Okay. Return. Okay. Yeah. So this is the discount rate. So if I 13%, it’ll just come, come, uh, zero, zero. This is probably 13 point. A small number on top of that.

So to make money, at least I need to hit at least over 6 million. Right? That’s what you’re saying. Uh, on there. I’m sorry. At least you need to put that 6 million. Right. At least what I have to make, uh, to sell the property to make a profit. Uh, above the break even point, at least you had to make 6 million.

Right? But the break even also depends on what is the minimum return you want. So for example, the investors that you get, if they want, if, if you promise them a preferred return of 15%, so that means your break even go higher. But if you promise them a preferred return of 10%, and that’s your own personal requirement as well, like that, you at least need to make 10%.

So yeah, it might be lower. So it depends on the numbers and, and, and the discount. It depends on the risk factor. So if you think this is a short, short return for me, so the risk is lower. Okay. You might be able to, uh, sell it for lower and that’s fine. But if you think, no, the 7 million, I’m not really sure if I’ll be able to sell it for 7 million.

It might be 6.5, it might be six. I might even lose money. So that means higher. So you want higher discount rate? Yeah. Okay. Yeah. No, this is good stuff. I, I’m, I’m, I’m very happy about that thing because I was looking at numbers and thinking, is this worth doing this part? But I’m realizing like the numbers wise, yes.

I need to figure it out whether, how much I can make it right. So, uh, yeah, that’s what I was thinking. Yeah. Uh, five year period of time. Yeah.

Thank you Madhu. I really appreciate. Yeah. Oh, I don’t wanna take time. Uh, I, I just appreciate Very good. I was just talking on, on mute, but, uh, you know, I was just saying thank you mad and then, uh, and then just wrap, wrap that part up, you know, just, we’re just saying, uh, and by the way, is that model, um, would we, because I mean, David got started on one, but, uh, Matt, is that in a state where it’s ready to be sent over to Chamar?

We can send that over to Chamar to play with or, um, or any, are there any other things you wanna work on? What do you think? No. So I just, this is, uh, Matt’s model from the other day. So I just, I just replaced the, the bottom line numbers. I did not change anything from above. I just, uh, changed the cashflow numbers at the end of the period to get a, a quick analysis, um, if we want to play around with specific expenses, specific revenue line items, and all of those things, uh, we do need to make a few changes, uh, to this version.

Oh, okay. Yeah, no worries. So then, yeah, we’ll just use the existing one. We’re gonna get, and then, and then if and when this is something he pursues, then, then we’ll then we’ll get you on it and then go deeper. But let’s just see, uh, what’s good, but, but good. And then let’s go to that seller, ask him to strengthen his position, everything, and then away we go.

Yeah, definitely. I, I like the information. Yes, definitely. Yeah. Thanks. I really appreciate it. Thanks. Feedback. Yeah, definitely Pete. Appreciate Madhu need too. I appreciate it. Yeah, and, and again, Matt already purchased the business in, uh, Vancouver, so he actually knows, he, he did it himself. So it’s more than just like him teaching it.

He actually did it, so. Yeah. Yeah. No, definitely. I really appreciate my, yeah, yeah, no worries. Peter, how’s it going? Fine, thank you. Fine, thank you. Um, I sent over, um, offer that was sent to me about, um, trip net, that’s having, um, chick-fil-A as as a tenant. Did you see, did you get to go through that? Yeah. Oh, okay.

That was, yeah, that was same, but it’s not something I think I want to purchase. But the reason is because if you not.

In cash. It’s really, and even, um, the best,

is it just me or to do it like I, like I, yeah. Okay. So I just had str like the, the internet was choppy. So let’s go through that again. Chick-fil-A and then talk to you about this. In the past, your beautiful scratch, we met, um, a chip net retail straight that was built by the state of Maryland. And when it was built, they didn’t actually see the cost of building.

But based on my knowledge in terms of construction, I think the cost of building that assets should be crabby, probably, I’ll say probably quarter of a million dollars. Immediately, you put in a, in, you know, an ankle tenant like Chick-fil-a, McDonald’s, the price is gonna quadruple. So the price now is about, Sell it for $3.6 million.

So it was built in December and Chick-fil-A moved into it in January, 2023. So they wanna sell it now for about $3.6 million. And for that sent to me they and net operating income annually, like under one 30,000. And with that, if you have to pay the principal, pay the interest, pay the tax, it’s not adequate enough for buy for three, $6 million cause you not gonna be able to pay, you know, pay the lender, you’re not gonna be able to pay your tax.

So I kind of figured that it’s better if you have to get a loan to buy that. Asset. Cause you have to pay the principal, you have to pay the tax and all those other things that come with, it’s not gonna be a good investment to, to get into. Yeah. Fair enough. And then the only, the only thing is that after deconstruct, after deconstruct a few things because, um, there are times when you were talking when it went choppy, but basically if I have it straight, you’re saying that, okay, there was a, you know, this, this, this deal that we already discussed.

You’re saying that the Chick-fil-A moved in, they want to increase Yes. Moved in in January, 2023. Yeah. Oh, okay. They just moved in. Yeah. Nice. And so they’re increasing the amount that they want to sell. And so I guess the, the statements or the question is that is something, and then that’s when it cut off.

It’s something about it doesn’t make sense to something with a loan, but on the internet was a bit choppy. Uh, I think everyone else. Okay. Everyone else can, uh, can hear it. I think it may be just on your side. I’ll turn off my video because, uh, maybe you increase the bandwidth,

but Yeah, if, if you can help me repeat that last part cuz the incident was a bit, uh, droppy. Okay. So what the point that I was trying to make is that if you’re buying that, if you’re buying with a cash out of your own pocket, then you don’t have to deal with, um, you know, the loan, you gotta pay the lender.

But if you have to pay the lender, you have to pay the, pretty much

Wow. It cut, it cut off again at the good part.

Hmm.

So I can’t hear you if you’re speaking. Uh, no, I can’t hear either. Okay. So maybe on, on Peter’s side.

Okay. It looks like he’s gonna join back again, so No, no worries. I’ll just hang in here, uh, for a few moments, so no worries.

So matter, quick question as Peters again, it sorted out, uh, anything new with the, in in the markets? Nothing too crazy. Um, I’m just seeing, uh, more talk about politics, but nothing huge with respect to fiscal policy. Would’ve you noticed? Yeah. Yeah, nothing, nothing extraordinary. The debt ceiling, um, uh, seems to be about to be passed, so I think that was kind of expected.

Um, another interesting story from yesterday was the job market report. Um, so there are two different surveys that the federal government does, um, for job markets. So one is from the employers and one is from the households. And the, the employer survey said that there was an increase in non-farm payrolls, so there was an increase in the number of jobs, uh, people who were basically the salary that went out and, but the household service said that the, the unemployment rate increased.

So it was completely different stories. So we don’t really know. I don’t really know what that means for real. Like, it, it looks like the data might not be accurate, but yeah. Uh, so that was an interesting day. I, I’m looking more into that and I might have something for you, maybe for the next week call about this, but, but yeah, that was an interesting, uh, you know, discrepancy that, that we got to see yesterday.

So I cannot really trust governance data is, is all I would say. Yeah. But probably more than just their data. And so, so where, uh, what, what are the sources? Uh, again, on, on these two pieces of data is the government, so it, it’s released by the government. Oh, fair enough. Oh, fair enough. Yeah. Yeah. Both are from the government, just how they captured the data at different mechanics.

So that’s why we, we see a variance in both these. Ah, yeah. Yeah. I, I’d be cur I’ll, I’ll take a look at myself and we’ll talk about more next week. Uh, so, so, yeah. So Peter, so it cut off at the good part you were talking about? Oh, yes. Yeah. Let me see if I can find the offer that was sent to me so we can take a look at it.

Yeah, please. And feel free if you, if you feel comfortable, feel free to share the screen and everything. Sure.

Please. You can keep talking while I look for it. Yeah. Oh, okay. Sure. So, um, I mean that was mostly it. I was just asking matter about, um, macroeconomics, but, um, so basically conflicting data with jobs. Um, and then that, that’s pretty much, that’s pretty much it. You think a matter or, or anything else? What do you think?

Yeah, yeah. Nothing, um, nothing really has changed since last week. Uh, yeah, it’s, it’s the same. Yeah. My, now say my uh, thought process isn’t the same as before. Yeah, fair enough. Fair enough. And until least find that I can throw in some too. That benefited me. Um, right now, if you got real estate, now’s the time to sell cuz literally what you just mentioned.

So I was trying to, I was working on a real estate deal for months, um, something I’m actually trying to sell. And dude, they was trying to like, literally three, four months ago, they was trying to literally, Giving me nothing for it. And now man, the offers and something told me, let me just reach back to this company.

And I started reaching out to other companies, man, and I’m getting very good offers close to what I originally wanted, but literally three months ago, companies was offering me like, cause like half. And I, I guess it got something to do with the debt ceiling, but I’m seeing it personally. I’m like, wow.

Cause literally I’m talking about like, I’m just throwing numbers out here. But let’s say they give you the offer for like, something’s like 30 K in in, in January. Now they saying 38 K. 37 k. And it’s like, okay. And I actually got a better offer on one and then the other company hit me back and it was an even higher offer.

Now this is the same company that I was talking to before, and I’m like, okay. So I started doing research on this debt selling thing and they was like pretty much just gonna be buyer season. I mean selling season until the beginning of 2025, kind of what, what you was talking about with the deaths. I don’t really understand that part of the game, but I just personally see how it affected me with, as far as, um, like banks giving, oh, and my credit went up so that let me know that, bro, I’m like, that got something to do with this that lets me know that banks are lending money.

They’re, they’re hitting our credit. Like I think now is the time to go get loans and, and stuff like that. If that got any type of connection. It seems like it do, cuz things are starting to kind of go up as far as the money that they paying and as far as credit and loan offers, it’s, it’s starting to get crazy.

So if you got good credit now may be the time to kind of see if you can use it.

I mean, it seems to make, like, I guess in general, I’m not really more into macroeconomics, but, uh, I mean it seems to make some sense because if. I mean, if there’s a new, there’s a new debt ceiling deal. The debts, the United States debts is, you know, is not going to get, I guess, ranked lower because they’re not gonna default.

So, you know, perhaps like internationally, anything, any debt with respect to the US uh, is seen as more seen, more favorably. Uh, I mean, it’s such a general and big and trite thing that I don’t really get too involved in it. But I guess in general, the overall outlook may be okay. Uh, as opposed to it getting dinged, uh, in people like country, different countries who borrow us, um, you know, US bonds.

Maybe it affects it, maybe it doesn’t. So, um, you know,

so Peter, uh, did you manage to pull up the information.

I don’t know if Peter, Peter, you still with us or,

yeah, he bounced man. I think his signal just, he was probably like, forget it. His signal is tore up, man. Yeah, so well tell you this. I’ll, I’ll just give it, I’ll give it two more minutes and see and, and if not the same process, I would just send a ticket the second once out anyway. But, but I guess, I guess we’re beyond the, the two hour time limit.

We go beyond two hours sometimes, but, uh, it looks like it’s gonna be a bit of a bit taxing. So I’ll tell you if, tell you what, it’s been nice being on the meeting. Uh, the next one is Monday at, well, I mean Wednesday at 11, at 11:00 AM Eastern. And after that then we’re back at 6:00 PM Eastern on Monday.

Awesome. All right, y’all, peace out. Thank you. Cheers. Talk soon. Thank you everyone. Thank you. Bye.

 

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