Get it going. Dean, Ernest, Greg Jamara.

All right, everybody. Just getting the call started here. And thanks for the patience, everyone. We’re just talking, uh, offline, getting ready. So, so welcome to the, to the meeting. I just put in the chat the, uh, order of w by which everyone joined, and I’ll just go through the, uh, the queue. Uh, and for those who haven’t been here in a while, this is just the q and a call here where we just answer, uh, any questions on how to use our service, how to raise money and, and setting up the deal.

Uh, things along those lines. So, Dean, how’s it going? I see you’re the first one here. I’m good, I’m good. I’m, uh, mostly just here to listen into what everybody else has going on. Um, I’ve been a little distracted recently just working on a small purchase. I’m kind of funding myself, but, uh, trying to jump back in and, and, uh, get the other side of things rolling again here and wanted to make sure you got my submission the other day as well.

Yeah, no, I, I did and, and that’s good cause uh, it, it’s interesting and, and we’re gonna talk offline because, um, we would have this whole broker dealer situation in, in, uh, Ontario, so it could be really, there, there could be something there with that as well. But, uh, yeah, no, we’re still, um, I haven’t actually gone into it yet, but it, it’s something that I want to, uh, we’ll talk offline with, uh, the next Yeah.

So it’s good. Yeah, absolutely. Sounds good. Thanks. Very good. All right. Uh, Ernest, how’s it going?

Can you hear me? Um, yes sir. Yeah, yeah, I’m ahead to listen, um, if I have anything, I’ll just wait till the end. Cool. Sounds good. And then, uh, Greg, uh, same thing as well, more or less. I’m just kinda listening in. I’m just waiting to hear back from a few people on a few different things here. So I, yeah, that’s, so it’s just more of a listening in for this meet from me today.

No. Excellent. Excellent. And, and everyone, since everyone’s here, uh, we, we actually have, um, a tax expert coming in on Wednesday at 11:00 AM Uh, you know, he’s a expert on more cross-border tax tax for front structuring and all that because we get a lot of questions about that and he’s actually, uh, licensed to be able to discuss those matters.

So just to let everyone know, uh, Jamara. Hey Nadu, how are you Doing Good. Another Monday and still. Okay. I have multiple questions, so can I share my screen? Absolutely. Uh, you, you should be able to now. Okay.

Let me know. Uh, you can see my screen? Yes. Okay. I know Madhu sent this, uh, this, uh, um, summary. So, um, here’s the part I don’t understand. Uh, what is the discount rate and where the number where, where the number he found it. That’s what I’m trying to figure it out. Well, there’s a couple of other questions there.

It matter. So discount. Yeah, so discount rate, basically the, the cost of capital that you are assuming for this. So for example, if you think this is the 12% is the min is what? The cost of capital, and this is the minimum percentage that I would accept, um, as a return. So that’s, that’s the discount. Okay.

12%. Gimme, can you gimme example please? I’m trying to figure, yeah, so basically what what we are doing is, so if you look at, uh, the EBIT number for 2024 is $535,600, right? Okay. Yeah. So you are discounting this by 12% per year to get to the net present value. Oh, okay. So, for example, $535,600 is not going.

It is actually not this much amount. So you have to discount that number by a percentage to get to the present value of that number because of inflation. So this is basically in a way adjusting for inflation cost of capital. You can consider whatever you want, but yeah, that’s the idea behind it, that the 535,000 next year that you are going to make is actually not that amount.

It is lower than that, and this is the percentage that we are discounting it for. Okay. Okay. So this is the E B T is earning before taxes, right? This is the actual cashflow? Yes. Cashflow. Is that right? Yes. Yeah. Okay. So the year one, uh, before the tax cashflow, the taxes, you pay 5 25 35 like that, right?

That’s the number, right? Yeah, that’s the, this line 52. Okay. Then, um, you see line 40 is the, this is more like a CapEx, is that right? Cap? Not a CapEx, my bad. Uh, the cap rate, right? That’s eight, is that right? Yes, yes. Yeah, yeah. Similar to that, yeah. Okay. Cap rate is directly the value and this is the enterprise value.

Yeah, you can say it, it’s very similar to that. Correct. Okay. So, um, okay, so this one, uh, perpetual growth. So, um, how, how do I, how do I read this thing? So you read this, so for example, uh, the first chart is for perpetual growth rate and exit multiple. Okay. So we assume the standard 3% perpetual growth rate for, so if you see the numbers above you on row 68, 67, if you go a little bit.

Okay. So all these numbers from 65 to 70, all these numbers are calculated based on the above,

uh, 12% discount rate and eight x ev EBITDA multiple. So it’s either it is 60 things. So now if you do, uh, if you want to do a sensitivity analysis, and this is what’s performed here, for example, if, let’s say the perpetual growth growth rate was 4% instead of 3%, what would be the return? Uh, so that is, so that would change your return from 12%, uh, to 39%.

Okay. And similarly for the exit multiple, you have eight x nine x, 10 x. So if you have a 3% perpetual growth rate, but a nine x ev, ev EBITDA multiple, then your would be 28% instead of the 12% Yeah. That you see over there. Mm. That is a similar idea behind discount rate. So 13%, 14%, 15, 16, 17. Okay. Okay. All right.

That makes sense. That makes sense. Okay. So this one is what discount rate is. So this is similarly. So, uh, in the above chart we are doing, uh, performing a sensitivity analysis for perpetual growth rate and exit multiple. The below one is the discount rate and exit multiple. Okay. Okay. Okay. Yeah. All right.

So changing one one of the variables, so above, yeah. So if you look, if you go up and you switch those numbers yourself, so for example, you switch it to 13% or 14% for discount rate. Yeah. Or growth rate of 4%. Yeah. You see a similar return as below showing up on rose 63 to 69. I was playing around on here cause I

Sorry about that. Yeah. This is, this, this also plays an impact. Yeah. Yeah. So has that changed anything? Uh, that would probably, yeah, that would change because the, uh, the outflow in, in year one is lower now. So it’s 4.8 million and 960 K, and there are another two. Uh, another thing that I did for you was mm-hmm.

So if you look at row 61 and row 62, so you have three cash flow to equity and free cash flow to firm. Yeah. What that basically means is, so if you, um, if you’re using 20% down payment and that is the equity amount that you are raising, then your return is going to be, uh, you can look at the rate of return over there, uh, on Rose 64 at the site.

Yeah. Uh, on the right side. Yeah. So these ones, so R I R R for equal investors. So that is the 75% return rate, but if you use that 4.8 million. And raise that 4.8 million, all of that as equity, then your I up is only 12%. Okay. So this is a pretty good deal. Well, I’m not saying good deal, but it’s a good enough deal, right?

At least on this market. Well, these are all assumptions, right? So that’s what, that’s right. You have to challenge here. So you have to look at, like, I, I obviously am not an expert on these things, so that’s okay because it’s your business and you would know more the specific details of it. But yeah, this is the idea to figure it out if, and play around with the assumptions.

Okay. So what makes sense, what a is actually, uh, the growth rate, the discount rate and, and things like that. So I mean, if you increase the discount rate to 15%, so this would come down immediately if you change that. Oh, discount rate. Okay. Using this one? Yeah. I’d also consider, um, you know, I don’t know if you connected with the other senior home, uh, living facility folks, but, uh, there, there’s Devon and there’s Henry.

I would, I would ask them to, uh, kinda just as a friendly audits to look at the, uh, assumptions because that’s the more industry spec specific side of it. Uh, okay. Well, so if you were to just, uh, I have a conversation with him. This is what I’m looking at, or at least this, I don’t know how far we can go.

Let’s say it’s 500, right? So if we go that, but all these numbers that you see over here. Yeah. Uh, yeah. As long as you are comfortable with the assumptions that we have taken in this model should be working perfect for you and, and give you a good understanding of what your returns are going to be. But if you are not really sure about the assumptions, you might, may wanna do a little bit more research and play around with the assumptions, play around with, uh, the model and, and then you might be able to get a better idea.

Yeah. Yeah. So the growth rate I think can go a little bit higher. That’s what I seen it, at least in the marketplace. Yeah. Um, and uh, you can go even 10%, uh, because of the inflation. Some places they’re doing that part, but I’m, I’m let, let’s say 4%. Right? That’s reasonable in my mind, right? Anyone can afford it or it’s in there, doesn’t make a difference that much.

And if that’s the case numbers and if I can get for this price, I think, uh, it’s not a bad deal at all in my mind. Well, this is what I’m thinking. I would like someone else to critique me on uh, um, um, usually. The, the perpetual growth rate, right? Yeah. So there are two, two aspects of growth rate. So one is the growth rate from year one from today, yeah.

Till 2027. So that’s one growth rate, and then there is a perpetual growth rate. Even if you think the next five years you might be able to get a 5% growth rate for revenue or 6% or whatever that might be. Yeah. The perpetual growth rate assumption should usually be, uh, the, uh, similar to the G D P growth rate because if, unless you, you have specific reasons to, to be able to justify a higher growth rate.

Usually we use G D P growth rate as a perpetual growth rate for most moderns. Okay. Okay. Well, unless it’s a technology company or things like that. That’s right. Definitely higher, but yeah, that’s especially for, uh, uh, real estate or, or a similar kind of, uh, project. I think the, the G D P growth rate is, is a good, uh, number to use.

Okay. All right. Um, so an outset from the basic understanding, MA and nato, do you guys think it’s a good deal for an investor point of view? Because you guys raised more money than me, so that’s fine.

So I’m just trying to find the, uh oh, you got it. Go on person. Yeah, I mean, from, from these numbers, if you think, uh, these numbers are justified, I, I think it is a good one, but I’m not really sure about the 12% growth rate. So that’s, uh, a big assumption that you might need to consider. This is one, right?

Yeah. Yeah. This, it might be 13, it might be 14. And, and that depends on the risk profile of this specific business. Okay. Cause if you think, how do, how do I define this thing? Because if I go and ask from someone, how do I claim I, how do I articulate someone on a plain English, uh, discount rate is pretty common, uh, terminology that’s used and, and any finance person should be able to, uh, you know, understand that.

Um, but yeah, it’s, it’s basically you can say, uh, uh, A number that we are using to calculate the present, uh, the present value.

Sure. So, so as Tamara types that, so, so Matt, can, can you point me to the, uh, because I’m used to, I’ve been reading a lot of David’s models recently. So then in, in this one, what is the, uh, what is the enterprise value picking asset or what’s the, what’s the actual value of the asset versus what’s the asset price that the, that the seller acts?

Uh, if you go down a bit, yeah. So the enterprise value is this one, uh, 5.6 million, that’s the ev. And then you reduce the, uh, the debt. So 3.7 and then your equity value is 1.8 million. And then he’s, he’s asking, and Thank you. Thank you madam. And so Chamar, he’s asking for, uh, how much for this? He’s asking 5.2.

It’s not bad. I mean, it’s not like, it doesn’t look like it’s, it’s a home run, but it doesn’t look like you’re being scammed either just at a, at a base, like high level, unless I’m missing something. Yeah. So this is the price, uh, asking price 5.2. And, uh, I talked to a, a lending side, uh, with my, one of the existing relationships.

He said 25 75. It’s, that’s what it’s, and I’m like, okay, so 25 75. So if we do it, um, yeah. And, and Shamara, just to confirm, uh, yes, sorry. Mm-hmm. Just to confirm, the $520,000 is after the interest payment, right on the loan.

So this is the as price. No, uh, not 5.2 million. I’m talking about the EBIT number that you gave me, uh, on, on, on your email. So you sent 480,000 and 520,000, and that’s on row D 52. This number, gimme one second. Let, let me double check that part. Uh, that’s a pretty big assumption because this one is assuming that this number is after the interest payment on the loan.

One second. Uh,

Can you see it? Yeah. Yes. So

purchase price is 4.8. So he was playing around numbers. Yeah. The five 20 K is uh, actually before interest payment. So if you look at the annual debt service first lie Yes. 360. Yeah. So if, if you have the 7% interest rate, Yes. Yeah. So let’s, let’s just do, do, we can do the calculation over there very easily.

Okay. So seven, let’s assume a 7% interest rate. Uh, you might want to, so if you wanna put a formula in on row, uh,

53 D. 53. 53. Yeah. D 53. Yeah. Here. Yeah. So formula is, uh, that, that amount. So go down. So it’s like a 7%, right? Yeah. So this is equal to, so yeah. Is equal to go down. Go down. Yeah.

I thought I need to put the, okay, my bad. I need to put a number there now. Yeah. Yeah. So you, so that’s what the number you’re gonna take it from there. So it’s a 7%, right? Or you want equal equal two. So let’s do equal two. Go down. Go down means what? So just, uh, you have to select, I think, uh, cell B 66 or something.

Cell B B. Let’s just do this. Um, do select C 50, C 43. That’s what I was thinking. Okay. Multiplied by, uh, C 45. Multiplied by C 45. Yeah. Okay. Multiply by 7%.

Yeah. So this is, we might need to change this a bit running.

So you.

Oh, okay. That makes sense to me. You might need to select that.

Uh, it’s actually, it’s gonna be much easier for us to do it the other way around. Uh, maybe just, uh, cut this, uh, D 53 and basic on, yeah, just cut this. Cut. Okay. Based on every block? No, uh, no, no. And paste on D 55. Amanda, would you be able to cut this? Would you be able to control his screen? Cuz I know that host can, can just control his screen on Zoom, eh?

Oh yeah. Uh, let me see. Uh, okay. Do you want control the screen? Uh, let me check. How do I do that? Yeah, let me question. Yeah, no, I got it. Okay. Approve. Okay, bye. Go ahead.

So what do, so the, uh, that’s the interest right on the mail. Yeah. And yeah, we, we might need to change it, so I can’t really copy paste this. So all you need to do now is just copy paste, um, from the 55 and for the future years. Can you do that jamara like this, right? Pretty much, yeah. Yeah. Like that? Yeah.

Yeah, yeah, yeah. All right, so done. So this is done and now that might change your returns. So you might want to look at, look at the numbers now. Yeah, that’s bad, but it’s still, it’s 37% per equity investor, right? I r r assuming and the i r r for company. That number is incorrect. Okay. Uh, yeah, yeah. You, you might have to ignore that number because we, we can’t really use the interest payment for, to calculate that number.

Okay. So you might need to, yeah. But, but the above one is fine. Um, 37% that, that looks reasonable. Yeah. Okay. So I’m thinking, so if I come back, I’m, I’m playing around the numbers, and if I come back and they’re asking 5.2, I ask 5.4 0.8. Uh, so this is the cashflow, right? Yeah. Okay. And, uh, so it’s.

So I seems like something wrong with that number. Let me just, which one are you thinking it’s wrong? Uh, Martin, the IRR for equity investor. Okay. You don’t think it’s 42%? No, because the number over there, uh, that you look at the equity value that is negative 14,000.

Where you looking at the number? Oh, okay. Equity value, right? Yeah. So this is negative 14,000. So if this is negative, the i r for equity investors should be negative too. Oh, the percentage, that’s what you’re saying? Yeah. Yeah.

So, I mean, this is at least, and I know we’re going bit into the weeds here, but Yeah, yeah, yeah. I, I guess where, where to from here? Um, this is like a, putting aside the, the ev or sorry, when I say ev, I don’t mean enterprise, but I mean equity value. Like, um, I always come back to the, the, the valuation that the model generates versus what the guy is selling this one, right?

Well, no, the enterprise value, and Matt, tell me if I’m wrong, but, uh, cuz like after, after everything. So then the goal I think is just to look at the enterprise value versus the price that he’s selling the deal at to, to shaara and then just say, Hey, is this a ripoff or no? Or what, why, why would, why would there be a discrepancy?

And just to get to the roots of any discrepancy.

I mean, that’s just my 2 cents, but, um, yeah. Yeah. Is this worth? Pursuing. That’s what I want to get it out. It seems to be so based on, uh, like, I mean there was also a very, so ba basically in the last five minutes, it was just the changing, like after and before interest payments. And so if there’s no huge material difference to the enterprise value and the enterprise value is almost the same, then it doesn’t look that bad.

I, I, I’m not seeing any, any big red flags. I think it’s just more based on, um, the usual, just making sure that there are no non-consent liability, just a normal due diligence. There’s no non-consent liabilities or pending lawsuits or, um, you know, in, in a financials that would lower the enterprise value.

But, uh, this looks, this doesn’t look that bad. Looks way better than some of the other ones that we saw. That’s right. Yeah, that’s right. I wanna get it out from the conversation. Yeah. Yeah. So that’s the enterprise, because the goal is like enterprise value versus the um, The price that he’s trying to sell it to you at.

And then if there’s a big discrepancy, then there’s a problem. If there’s not, then there’s no problem. That’s just my heuristic and then the IRR and all that stuff. That’s for if you want to find in invest, like we can make a waterfall for investors if they want to, if you want to get a syndicate together.

But that’s more for getting a syndicate together after you make the offer anyway, so I just focus on the, uh, intrinsic value, enterprise value and get him to, uh, press him on, uh, any discrepancies if there’s a big one. But there doesn’t seem to be, to be a big one. Uh, so the only thing, yeah, sorry, I, I figured out what the reason is.

Um, so the only thing we might, we need to do is, so the final cash flow, right? For I column I 61? I 61. I 61. I 61, okay. I 61. I, yep. So if. That column. Yeah. And you want to subtract the loan value. So that is on C 67 minus C 67. C 67. C 67. I’m believing I’m blindly going. Yeah, yeah. This one,

C 67. Okay, so now you should look at the number. Okay. So within five years we sell this thing. We’re not making that much money. That’s pretty, pretty much you’re saying. Right? So now your, uh, equity, uh, i r r for equity investor would be low, would be negative, most likely. Oh, or 11%. Yeah, 11% Makes sense because the NPV that we are calculating is using a 12% discount rate.

Yeah. So we have a lower return than, uh, than that. So this kind of makes sense. Is this a bad deal? Na, when, when you see the real estate stuff? No. Right. So I’m not, I’m not entirely sure myself why the i r is is, is negative to be in with matter. Can you explain why the i r is is for a company is negative versus positive?

Uh, so the, there are two things that you can look at. So i r r is basically what the return is. So based on the cash flows, What return are you getting? Whereas the net present value is assuming a certain discount rate. Yeah. What is the net present value of the deal? So those two are different things. So if we assume, uh, a same, let’s say 12% discount rate and we want a 12% i r r, it would completely match you would completely, the phone cut off.

It would completely match it. It would completely match. Okay. What would match with what? Uh, so the, and the value from the n PV and the value from the i r Oh, discount rate is different now. It, the numbers are different. Oh. So basically, okay. What, what, uh, I’ll give you the conclusion. So based on the numbers that we see right now, yeah.

Your I R R is 11%. Yeah. So you are making a return of 11%. If you do this investment, okay, that’s not bad on the marketplace that that’s compounded. Uh, yeah, that’s 11%. That’s it. So, so, so yeah. Okay. And then just more, more accounting refresher is like, because the net present value, that’s like a theoretical value.

That’s, so tell me if I’m wrong. So, but that’s a value in the future. That’s, um, it is basically when I recoup my investments is that’s, so the IRR is part of the formula it gets when NPV is zero, right? Is that what it is? That what, yes. So then, yes. So then this is just how fast I get to N NPV being zero.

Yeah, yeah, exactly. You got it exactly right. Yeah, sure. So then the bigger it is, the quicker I recoup my investment, the quicker NPV goes to zero. So then, I mean, this looks okay, like, you know, cuz the real estate deals Yeah. Like, I mean I’m seeing 15 for a lot of real estate deals. This doesn’t look that bad.

Uh, for the IRR side, um, you know, because I, I know Addie’s deal that close. He was, he was targeting, he was around 15, 14%, which a lot of people consider conservative. It’s a, it is a boring, safe, uh, play based on Yeah. What, what I’m hearing. Yeah. So I was thinking like, um, the way I look at it is like, if we can lower this number right, more right.

That will allow me to play around, I, I don’t know whether they will lower that much, but at least that’s a reasonable uhhuh. But can, can you go to the left a bit? Yeah. That looks, that looks, that looks way better. What I did is like, I changed the value to 4.6. Yeah. It was 4.5 0.2. That means I’m asking like a half a million dollar discount.

Well, not a discount, but asking the numbers. Yeah. So, uh oh. Sorry.

You wanna add anything? No, no, no. This is good. No, no, I get it. Yeah, it makes sense. Yeah. Yeah. So I think at the end of the day, like, uh, I, I think 15, anything in and around 15 is something where we saw, we saw some other transactions, both in real estate and m and a be convincing for an equity investor.

Yeah. So I always like to think that you won’t be an equity investor in the best case scenario because maybe we just magically find a lender. We magically find seller carry. But I, I’d like to just create a good situation for that equity investor at anything above 15% i r r. Yeah. So, um, so if he were to negotiate above 15% i r r, and then I think that’s the, that’s the play.

Um, you know, and then you get him to try to justify why the price is difference and then be on the side of, um, proving his assumptions to see why is it below a price that would bring it below 15%. Okay. And, and one more way to look at this is, uh, if you look at cell C 65, so that is your, uh, if you go down

cell 65,

okay? That’s why. Yeah. So if you look at the enterprise value here, right? Mm-hmm. Um, yeah. Okay. Yeah. So, uh, 1.478 is your, the value that you’re generating by investing the number in row or incel, C 61. So 1 1 5 0, 1 0.15 million is what you’re investing. And what you’re getting out of this investment is 1.478, and that is your upside.

That is your return. Okay. So the equal device, that’s what you’re saying, right? Yeah, yeah. So pretty much if you invest this amount of money, you will get this plus this. Yeah. Okay. I got what you mean. It’s not bad. I’m not saying it’s a grade, but it’s a comparably not bad, right? Yeah, it looks like a boring, safe, you know, nothing crazy.

Just like a, you know, a boring, safe, stable type of type of deal. Uh, I would just try to entice the investors with, uh, an offer that’ll get you over that 15%, uh, hump. Okay. So, so, so, so, so one thing, I mean, even matter even yourself because you, you, you own a business in Vancouver. So what, what are your thoughts as well, uh, in, in general, without speaking to the specifics of the, uh, of the sector?

Yeah, in general, yeah, I think it’s 11, 11 to 12%, uh, is not really bad for a real estate investment, I think. Yeah, I think it’s, it’s, it’s decent, but yeah, as you said, it’s nothing extraordinary, but, uh, a regular return. Yeah. Yeah, exactly. And then, uh, just to hop on, make sure everyone else, uh, is not waiting for too long, but, but any other things that you wanna, uh, wanna cover for this?

Uh, no, no. I, I have a hundred questions, but I’ll, I’ll, I’ll ask rest of the people, ask the questions. Yeah, no worries. That’s, that’s why we’re here. Sounds good. Yeah. Thanks guys. Appreciate it. Thanks for the patience rest of the course. Stay. Thank you. Yeah, no worries. And then, um, so Dean was asking, does that factor in equity as the debt, as the debt is paid down, So does that factor in, and feel free to unmute, but does that factor any equity as the debt is paid on?

So I’m not entirely sure. Uh, what do we, what do you mean matter? Maybe you can help me out. Um, does,

could you, uh, repeat your question, Dean? Yeah, sorry. Um, is that just factoring in the increase in the value of the property or is that factoring in, um, you know, you’re, you’re increasing your, your equity portion as you pay down the debt, right? So is that, is that additional equity factored into, to your equation here, or does it make a difference?

Uh, so how this is being calculated, so this factors in all the cash flows that we are projecting from this business. So it factors in the yearly cash flows, it factors in the ending value, uh, that we are going, we are planning to sell this for.

Right. Okay. Yeah. So it factors in both those things. Yes. And that gives us a present value of those few, all the future cash flows. Um, and, and it gives us a present value and, and we can compare that present value to what we are paying for it and if it is a profitable business or not.

Perfect. Thanks. So, quick question. So the, so the, you said the multiple is 80%, right? Is like a cap rate? Yeah. Cap rate. Yeah. Cap rate. So if I make the cap rate 10%, is it gonna change the rest of the numbers? Yeah, it’ll, it’ll go down. And, uh, another thing you wanna do, this is like one more thing. Uh, you wanna zero out the go down?

Okay. Sure. Uh, row C 67. C 67 column. Yeah, C 67. Okay. Just that out. The 3 4 50 just yeah, delete it.

Oh, that’s changed drastic. This is, uh, accurate. Oh, but that is cause you changed it to 10 x that, that, that’s a big difference. Mm-hmm. Yeah. Ok. So Cause that’s changing your ending multiple from Atex to 10 x. So if our ending free cash flow is 300,000, so that is making a difference of 600,000 at the end of the period.

So, and that is your additional return. Okay. So let me get this straight when I’m reading this thing, assumption you’re making, is this multiple that you’re seeing on 8% is current multiples current cap rate. No, no, this is the future cap rate, what we are gonna sell this property for. Okay. Uh, okay. Okay.

This is future cap rate. And, and the number, if you wanna look at the number, uh, that’s written over there in column J. Column J, yeah. So these are the numbers. So based on the perpetual growth, so we are using two different methods to calculate the selling price. One is the multiple, so that is the EV ebitda, and that gives you a value of 4.3 million.

The second is the perpetual growth rate, uh, method. And that gives you a value of 3.6. And you are taking an average of, uh, average of both these numbers, uh, to give us an accurate understanding, uh, of the, uh, final sale price. Okay. I don’t take whole meeting, but I, I have a lot of questions, so I, I, I’ll let other people ask the questions and I, I’ll come back.

Good. Well, well, hey, hopefully, hopefully we’re, uh, reducing the amount of questions or I don’t know if we’re creating more, but, uh, but what happy, uh, it, it reduce a lot, uh, but then there are more questions after that because I’m thinking more and thinking like, can I go to the investor and ask money? And if they see that thing and they can see, Hey, does this make sense to invest?

Right. And that’s why, and then I should be able to articulate, right, this is what it is for them. Yeah, no, exactly. And it, it could be tricky. The, the thing, because I, I’m, you can see me, I’m just trying to see things from a high level top down, uh, because there’s obviously too much for me to consume as a, as a person, right.

In, in all the things that we’re doing. So something I try to do is just to look at the, I’m looking more from the investor’s point of view. Of they want, they wanna make sure they see their i r r, their, you know, those four numbers, their I r R, the cash and cash, the, uh, return on equity, the term, you know, the preference return.

I just focus on those numbers that the model spits out. And then there’s obviously on the negotiation side, you have the e you have the enterprise value, and then there’re these two main formulas everybody cares about is the D C F formula. And then there’s the n PV formula, right? And then I just try to DV the debt two debt, two income.

Is that what you, the, the debt two cashflow, is that what it is? Dcf No, no, no, no. Discounted cashflow formula. Discounted cashflow. Okay. Okay. Yeah. And then I, I try to view it like that. And then it’s just all these other, all these other, all these other numbers are just variables that plug into those two formulas that create this, that help create this model based on the assumptions that, that’s the way I view it.

And then really, I, I think it’s just a game of trying to like, uh, grill the founder. On the assumptions to see how true they are because Yeah, the problem is that if the assumptions are not true or then the whole thing goes down as the whole thing doesn’t happen. That’s right. So that’s right. Yeah. You’re just looking at, that’s just how I try to, uh, you know, move through this space, uh, yeah.

To some extent. So, you know, if that just helps and we’re happy to circle back, uh, uh, as well. Yeah. Yeah. So. Alright, good. Thank you. Thanks, thanks. No, appreciate. Yeah. Good work Matter. Good. Yeah. Okay. Um, so then next we had Elijah. So Elijah, then Peter, then uh, Elijah, Peter, sir. Derek and then Tanya, then an Nadi.

Yeah. Um, this Elijah here. Nothing, nothing. Um, for me right now, I’m just, um, actually taking notes is some good things I’m being able to soak up. So no, no, nothing on my end. No worries. Good stuff. Good stuff. And then, uh, Peter, how’s it going? Oh fine. Thank you. How’s everybody doing? Yeah, doing good. Nothing for me right now.

I’m just still working on the things that I need to work on. So once everything is um, all squared out, I’m gonna reach out to you so we can have it one-on-one. Um, but um, I don’t have any questions at the moment, Jeff. Perfect. Yeah. And then, uh, yeah, I remember giving feedback on the, uh, information. Yeah, we’re, we’re ready.

Uh, yeah, cuz next step for you, just from, um, looking at the crm, we just have to, um, whenever the time is right, we prep everything whenever Thingss prepped and then we just focus on that outreach. Uh, okay. Yeah. You look like you’re in a, you’re in a decent shape actually. It’s not really that complex actually.

So I think we, we don’t have that much longer to go. Okay. Thank you. I appreciate that. Yeah, no, no worries there. And, and, uh, are you in senior, wait, are you in the senior home living facility space by the way? Or was that, or was it more, it was more hotels you were in Actually, yes. Okay. Okay. I was going to tell you about tomorrow I work, I, I work in that industry even though I don’t know, um, too much about the finance, you know, area, but in terms of the management, staffing support, you know, I know a lot about that.

Uh, but, um, in terms of the finance area of thought, that industry, I don’t know too much about it, but at least add the knowledge to know what’s gonna work or what’s not gonna work. Yeah. So, but, um, I’m really, I’m, I’m learning a lot with what, um, gentlemen was talking about in terms of the finance, um, uh, structure in terms of you wanna buy those assets if you wanna sell them.

Yeah. It’s, it’s really a, a good lesson to, to hear what they’re talking about. Yeah. Yeah. No, e e exactly. And then, uh, he can make a model for any, any one of us. Like, he’s really good. So that’s good to see. Uh, so, so that’s good. I, I was just asking because, um, you know, If you’re in the same sector, maybe there could be some synergy, but if not, no worries.

Because I know that there are a lot of people that came into the senior home living care facility space recently. Uh, like, and he, Henry did his deal, um, in that space. And then there’s a lot of money flowing there, really profitable, but yeah. Okay. Okay. All right. So good, good stuff. And, uh, so Derek, how’s it going?

Good. How’s it going? Sorry, I’m, uh, ordering food, so, uh, it might be a little loud. Yeah, no, no worries. No worries. And then how’s everything going? Because I, I know where everything is at on your side. Yeah, no, everything’s good. I had a conversation with, uh, not a broker, but he’s like, it’s a law firm. Um, so there’s two banks for sale.

They’re not on the market yet. Um, so we conversation. So if I wanted to pursue that, I needed to get. Um, a letter or proof of funds, stuff like that. I, I sent you email. Well, I sent support email,

proof letter, everything. So if saw it, um, okay, so yeah, so, so, so that’s the development. Okay. So, you know, I, you know, I think, I think it’d be pretty interesting to take a look at it. One of the, one of the banks off is currently operating, um, it’s operating that law also. That’s the only thing. Um, but I mean, if we were to acquire, we can do some carve outs and, uh, it would be just basically, essentially, um, cause carve out the loan portfolio.

We can keep the deposits if we want to, but it’s not that much. Um, so we can either kick out, kick out, stuff like that. Um, and, uh, the systems, the core system and everything. Um, so it would be scratch. Uh, so that price is a lot more negotiated than the other one, which is for the license basically, you know, for a, you know, uh, approved bank, um, that a lender has, but they just don’t really use it.

They just hold cash, um, and everything. So essentially we buy for license. Um, so, uh, I’m gonna talk to the guy a little bit more, but I did want to talk to you all about Hey,

and then kinda like moving forward with those steps. Oh, okay. Got it. So, um, yeah. But I do have a 1 0 1 already set up for Wednesday. Um, And everything. So, uh, I would guess, you know, we would talk a little bit more.

Okay, good. Yeah, we’re, we’re gonna move forward a lot of background noise, but, but on the letter of commitments, yeah, like we, we had to go to our legal counsel, uh, because yeah, we’re gonna make one more firm for you, but we had to go to our legal counsel because, um, you know, there’s still lot of liability on sometimes those letters, but yeah, we’ll be able to make one that’s a bit more, uh, aggressive because ours is very hands-off saying, oh, we would potentially consider if it fit in or cri, like, we’re really just hands off.

But yeah, like we just had to just, there’s a bit of a time delay because, uh, we have to just get approval before we start, uh, you know, because those le we, we sent like tons of those letters, so we have to just get approval, but we’ll, we’ll send one that’s a bit more firm, so that’s no worries. Oh yeah. No, no.

You know, like I said, that’s why in the, the email I was just saying, you know, I know, you know, I, I I, I know there’s ways you guys can, of course, if you can say whatever you want, get outta it and all that. We just need to kinda get past the hurdle, but, okay. Yeah. I mean, other than that, that’s it. I mean, I had that other deal, but I saw your email sent me about the, uh, the one in Colorado.

So we’ll talk additionally in that one-on-one with, we’ll also talk about that. Um, but you said for, you were saying something about, for deals that are over 25, you said that go to the back office. Where do I go for that? Or is that something else, or is that, um, three 10? Oh, yeah. No, we have tons. Yeah, I mean, there’s, there’s, so basically, yeah, we were just saying that like the investor intro button here, uh, or you can just make the request, but it’s better for the button.

Just so we know when you’re ready. And then we introduced to, for over 25, there’s Cambridge Wilkinson, there’s Sean Chan, there’s, uh, there are a few family offices that are looking. That they won’t look at anything below 25 million. So is this another, it’s another way of doing it. It’s just that they’re slower, but they’re more, uh, the conviction is higher, but it’s just less and more high quality people, uh, that are slower.

So it, it, we have some people that are looking for above 25 million. It’s just that it’s like a different, uh, don’t put you in a different, quote unquote lane, uh, so to speak, to get you, uh, moving for the bigger deals. Oh, okay. Okay. Yeah, I just wasn’t sure. I just wanted to, you know, to make sure, and, and lenders in the space, like I, I had, like I said, the client, they have a lender already, but you know, if they’re, you know, if we could come with another option, I mean, that, that would be great, but if not, you know, we’ll just stick with that and just raise and just raise the equity side of it.

And like I said, that could be, uh, and that could be anywhere between, you know, 2025 to 35, something like that, million. Got it. If the numbers make sense. So that’s why I always like to add as a caveat, because sometimes the numbers could make sense when, when the is there. Mm-hmm. If the numbers are, are appealing, then yeah, totally.

Okay. Alright, perfect. Well, I’ll talk to you on a, on our 1 0 1 for that. Cool. Sounds good. All right. All right. Well, yeah. Good, good stuff then. So, uh, so, so next they see, uh, Tanya, how’s it going?

Not too, hi. Hello? Yep. Hey, sorry, I’m not feeling, but I just wanted to go over, um, the email, um, that, uh, so I got a reply from White and said, um, email.

Basically to contact him. He said, uh, was it done? He said, hi. Tyler will consider the following commercial asset types, condos, multifamily, retail mix, manufactured housing. So can can you, can you just, um, maybe bring the, the mouth closer to the mic? Struggling to hear you. Oh, sorry. Hold on. Lemme get a bit closer.

Can you hear me? Yes. Okay. So the response from bike who said, hi Tanya. We will consider the following commercial asset types, condos, multifamily, retail, mixed use, manufactured housing office, senior housing, self storage, hospitality, industrial trucks. And that is a typical loan sizes are three to 30, uh, million with uptown.

80% ltv. This was his email he sent, he CC’d also, uh, raises on this on June the ninth. And he said, happy to get on a call, review your next deal. So in terms of this guy, uh, he will lend money or he could be a, uh, limited partner with a deal. So, so who’s the, I didn’t get catch the name that you said. This is Patrick.

No. Vital, fragile. Oh, oh no, he, yeah, he’s more the lender. Uh, so then he’s the debt side and so then now we have to get the, the lp. Okay. Okay. Yeah, so that’s the easy part. Uh, just so you know what he does on the lending side. So we have to get the LP to fill in the equity gap if we need that. Okay. Okay. So should I just reply to him to that I will get back to him about this Cause I.

I don’t really wanna, I don’t need to talk more to him. I wanna talk more to people that want to, but Okay. Yeah. Yeah. Just keep him on the back burner. Like there are many guys like that. So then the, the real people are, there’s Mark, uh, the Mark introduction should be coming out soon, and then he’s a limited partner with a limited.

Okay. And then those are the ones that I move forward with is because the, the lenders, they, they, they, they reply it quicker because it’s more of a dime a dozen and it’s more the, uh, the equity investors. So, uh, but then just keep ’em in mind. Maybe you can get better rates with them, uh, as well, so, okay.

Okay. Yeah. Mark, mark is the next one that’s coming after he’s done with the, the current group of, um, raises.com members at, because he’s swarmed, uh, as a Oh, okay. No worries. That’s fine. Yeah. Um, the other thing was the email response about UMT n Yeah. Um, um, uh, Yes. So, so I have to call that number. Um, yeah, yeah, exactly.

We, we actually have, so Wednesday will be a good call because, um, Joshua, he’s a cross border tax person, so he’s gonna be on, on Wednesday to talk. But yeah, that article, and just for context, for anyone listening, basically it’s just to, in setting up a, uh, a US corp, but then to set up a US corp, you need an e I n or an ITIN as a foreign national, cuz you’re a Canadian, uh, like me, you’re Canada.

So then, yeah. Yeah. But then one thing that I’m seeing and, and then that seems to be, I don’t know if he’s here or not, but one thing that I noticed is you may want to, um, it looks like the, the e i n is not always, doesn’t always have to be connected with somebody’s s s n, which is like that number, it’s like our version of send numbers.

So, yes. Yeah. So all they were saying is, To try considering giving the IRS a call to see what is the process in setting up, uh, the e i n for the business, right? And then these, because if, because that article was saying, Hey, you can set up the e n for the business, uh, directly without, um, without it having to be connected with, uh, a sim number.

So, so that’s all I was saying is just we can just give them a call and then ask them for the forms. Like if you can just set up the company without connecting it to the SS n. Right. So yeah, that’s what I, um, heard as well. Like I, I just Googled it and this company, e n express.com, they, I talked to them by phone, but what they’re doing is like, they’re charging a fee to do the I T I N saying, oh, if we do it for you, then you don’t have to give physically your passport to the US government when you’re applying for I T I N.

And I said, well, how long do they hold your passport? They said, they said for a month. But their processing time is no different than me applying myself. So it doesn’t make sense to work to do it with them. I’m considering perhaps even just getting, maybe we should just getting the it, maybe this is better to get the it process started now.

Cuz honestly by the time it’s done then probably the, the warm commitments from the investors are ready to be ready anyway. They’re saying. Yeah. Yeah. Cause, cause cuz then we can, cuz they’re saying a few weeks cuz by then you start the outreach in the soft way without giving the terms to the deal. You probably already have investors warmed up.

Uh, so I think maybe just getting the ITIN over with, uh, well I did email or send a request to Delaware, Delaware inc.com. Yeah. And to check if I can use, uh, much capital and they said it was available. So I think I just go ahead to. Apply through them for, um, for the corporation and, uh, go from there. Yeah.

Except not available as in the, the number, the company name wasn’t available. It was already taken. Oh, it wa No, it was available. They emailed me back. Mm-hmm. Saying that it, that it is available. Okay, good. No, good. So then, uh, yeah, next step I think is just hitting up this, um, doing, I sent, so Adi just, sorry, Naday just sends over something in the chat.

Oh. Which I’m opening. Let’s see. Application. Yeah. This is exactly the same thing of, uh, so this is, this is what the article was saying. Okay. Was that you could apply with the IRS for, uh, an e I n number. Mm-hmm. Yeah. But, um, you know, but, but, but the I 10. Like, whichever, whichever one doesn’t force you to get the s s N because as long as you can do it without seed, it’s telling you, um, you need the seeds telling you you need, uh, what’s it saying here?

So type clearly they want, yeah, they all want an s s n number, but they said the way around it is to apply for the I T I N regardless. I need to get the corporation set up first before I even apply. Right? Yeah. See, see that’s the thing. Cause don’t, don’t you have one though? I have one. Don’t you have one?

I have one in Detroit, but that’s not the one I’m gonna use. Cause that one was my name. So that one is like trying to read llc. I’m not gonna use that one. I’ll still might be used that for personal deals, but not my, for the company. I’m. Go ahead, go ahead. Oh, um, I’m just saying like, but who’s, but maybe the information wounds flow through to the company.

Maybe it’s just to app apply for it, and then nobody knows that you use your personal company to, uh, you know, for the, uh, registration process. That’s all I’m saying. Say that again? Yeah, so, so because like, not written in stone, but your personal company, if you use your personal company’s e i n to apply for a new company, does that mean that that personal company would be up on display somewhere for everybody to see it?

Probably not. I’m not sure. So, uh, I, I don’t know if you, I I think you may be, you may still have a chance of it, of nobody knowing your personal company or, I don’t even know if that’ll be a problem if you as a personal company because it already has a Well, does what does Michigan LLCs are those ones public?

Cause it’s a, the one I have, it’s a Michigan llc. Yeah, well yeah, we went over that last time, so, yeah. But y’all just made me realize something this’s something that I need to use. So when you do EINs online, I just realized something, cause y’all having this conversation, that’s how I find this is my first time ever seeing a SSS four.

I mean a SS four. I always get ’em online because it’s immediate and I’m a US citizen. But I just realized this might be the way to get an e i N in the name of a business. That’s what he’s trying to explain to you and, and I’m thinking about that too. Cause when you try to do it online, it forces you to have an individual kind of like attached to it.

But I’m realizing the way this form is set up, this is the manual form. It literally says, name a responsible party and you can put a e i n, which means what he’s saying is, which means now you can do this. I’m not giving advice, but you could possibly create a whole nother L L C in a anonymous state. That LLC will strictly be the trustee or whatever you wanna call it, the administrator for the E I n.

So for example, let’s say you create, read llc, Michigan, excuse me, went over that last time. Michigan is not an anonymous state. We already went over that last time. So yeah, we, we remember, we actually looked it up on here. So remember we already went over that. So you want to go to it, not advice, but if I was to do it, I would create a LLC and an anonymous state, get an E I N, then fill this out and make the e i n, I mean make that L L C, the responsible party.

So that way I don’t need a social security number or I 10, I can use the e I n, right? Yeah. It’s the same with these funds. Brilliant. With the funds, you have the general partner as the person taking the um, I guess the, what’s the word I’m, I’m, I’m having a brain fart right now. But basically the onus, basically the responsibility for the fund.

But you don’t use a personal, yeah, you don’t use an individual person. You can, but it’s smarter and protects your assets even more to create A L L C to be the general partner of a limited partnership. And that’s what he’s explaining to you now. So you can use the LLC U already, that’s why I said I would just try this and see what the, and see what the IRS respond and make sure you got your address and stuff set up.

Cause they are gonna mail you back. They are gonna see you mail if you’re doing it this way cuz you can fax it to them so you can get it to them immediately too. Cause I’m, I’m assuming it’s a fax number somewhere on here. But like I said, this is my first time looking at this and I’m actually gonna use this moving forward.

Cause if you try to do it online, it’s immediate but it forces you to use it. Ss n and I don’t like that cuz that’s, that defeats the whole purpose of creating businesses. To protect your assets and et cetera. E exactly. Very well said. Because as Canadians, we don’t have this whole global taxation thing going on in the States.

So, um, and, and there are a lot of companies like, uh, there are even stories of, uh, funny enough, one, one company that made a, a video, uh, like it was a deep fake AI video of Joe Rogan. Um, they tried to catch the company doing it, but they had so many of these, uh, with EINs pointing to EINs, pointing to EINs and anonymous states that they couldn’t even find, find the owners.

Um, so, so it’s, it is a way of kind of, um, making it so that you don’t connect your N S Ss N or its in to the company. So, so I think next step is like, yeah, let’s just, um, see if we can try that Michigan company in this form, uh, you know, to, uh, to launch it and see what, see what the response is, uh, from the, oh, so I should use the Michigan one, but what about the Delaware one that I’m, I need to do still register.

Well, I’m, I’m saying that to register that Delaware Company one needs an e i n, so to get an e i n you can use this form and then you, cause the form is asking for an e i n to create an e i n. So you can use the I n I believe one though, when I did it, I didn’t, when I did it for Michigan. No, you, you get the ein after you, you create the business first.

Did after, yeah, the e that’s, so I think I should still do the Delaware Corporation for Merger Capital. And then I could do that also for the Michigan L L C. I could, I could try this form for that, for the other, the other one. Okay. And what was the, but what was the original, uh, the original problem was that, wasn’t it asking you for, uh, a SIM number or SSN number?

Yes, it wanted an SSN for the Michigan L L C when I go online. So when you do it online, it asks for an SS n or I t I N. Yes. So that’s why I was trying to say, okay, let me see if I can get an I T I N or I’m gonna have to drive four hours to Detroit and try to get all the paperwork and do it in person.

Because that’s the way out of doing it. Online you can do it, you can apply and get the e i N without an Ss n if you do it by mail or in per something like that, in person or by mail something, there’s a way around it. But if you do it online, it does require it. Mm. So, okay, so then, so then basically the, the, so lemme just make sure I understand.

So basically the goal is just to use the form because it doesn’t force you to put in the ssn. So that’s basically Yeah. Yeah. Like if you do it online, it does ask and then I’m like, okay, am I gonna just like, okay. Just a tip for you guys. If you’re Canadian, when you’re opening a US bank account, they ask you for social security number.

I didn’t put one cuz I don’t have one, but I have a Canadian social insurance number, so I was able to open up like I have like two, two US bank accounts and it wa they, they were able to open it with my Canadian sin that they put in. So Wow. Trying to, um, do it where at least I get this for the business.

I, I don’t wanna, you know, put my creative one and then I could get a problem. Yeah. Yeah. I’d rather keep it on the business side as well. Uh, you know, if you don’t need to, if you don’t plan to getting a, getting a working visa than, yeah. I wouldn’t really entangle myself too deeply there. So, uh, yeah. And then they were like, okay, well we need your e i n if you wanna, you know, open up, uh, uh, up a, a business bank account.

I need the e i n. So they were able to get around it with just saying, you know, I’m Canadian and I have us address that. I. I told you, my mentor in Detroit, I I, I was able to use this information to apply for credit cards and for my bank accounts, but I need the business one. That’s the main one that I need.

And to get this, uh, the US uh, corporation set up exactly. So then, so ba basically, um, so we, we solved the problem. Correct. So then basically it’s yeah, using the form. And then it’s an interesting process because a lot of people have business partners, so then that’s why, that’s why this doesn’t pop up a lot.

But, but thanks for just, uh, bringing this to the light here so that we can, uh, no problem. Get around this. So, so get, and then you have to have a US bank account, which, you know what I did? Uh, not too. I have a Canadian R B C. Yeah. And then the virtual one, like Tangerine Bank, they have a virtual US R B C account.

So you need to have a u US bank account to open like another physical. So I was able to use. The virtual RBC u s A to open US bank accounts. So when you say US bank account, do you mean a bank account that can, you don’t, you’re not just talking about bank account that subs US dollars. You’re talking about one that is actually in the us.

In the us yeah. Yeah. And I have, yeah, yeah. Okay, got it. Yeah, I have two of them and a US American Express partner, but I was able to do the American Express with my Canadian one cause I have the same thing with Canadian Platinum. And then they said, well we could use their Canadian Information U to open the us but in terms of bank accounts, they needed my R B C U S A to open up, uh, and switch the address to the one I have in Detroit to open up, uh, the um, bank account there.

Okay. And then you wouldn’t even need to, so that’s Bri because we have, we have a few bank accounts here, and we have one in, in, uh, this is, this is public information, so it’s not No problem. But, but this is, let me just see here. So we have an intermediary bank in between it, but then you’re saying that instead of it being an intermediary bank with the Canadian address, you just have one.

You, you just talked to the bank and then they just allowed you to use a peer US address without any intermediary bank going to the community. I use my friend, my mentor’s business address, office address in Detroit. Yes. So I switched, I still have my Canadian address with R B C U S A, but they also have the US address that’s on my like statement.

So they needed that information for me to open, like, like the, uh, chase Bank. Nice. And then I opened up, Bank of America too. So Nice. Yeah. Yeah. Well done. It saves a lot of money. And then, uh, well not a huge amount of money it saves, but it saves a lot of time. And you just use it through that one Canadian portal.

Yeah, yeah. Like I go to the US office, so I needed to open US Bank account and then also cuz I needed the, the main thing was to establish my credit, right. So my mentors were like, you need to get a credit card here so it will build up your credit too. So that was a part of why I did that. And then, you know, it will help me when I’m, um, doing the US Business Bank account and stuff, you know?

Yeah, no, it’s amazing how much is possible without even having an s s N in the us so it’s, I know. Yeah, exactly. Yeah. So that was my way around it. But you know, like you, I, I am paying for like mailing, like I, you know, I, I send him money out for to get mail going there. What? You know, it’s, I just was able to get that connection.

That was my own thing. But if you have somebody’s address, that’s the way to do it. It’s easier. And I have a, I have family, they were like, oh, use my, you know, yeah. Use my address. But I would, I said, no, no, I it there in trip because if I need to get anything, I can drive the four hours or fly to Detroit if I need to.

But I don’t wanna have to like, have my cousin ship it from la, like California or something. I, I or Florida. Cuz I have family in, I have family all over the US so I could have done that, but it’s just easier with something near to Toronto. Yeah, no, exactly. I’m a fan of the virtual things because I just like being able to, uh, you know, see the mail, get it, get it, uh, get it shredded.

If I want to get it forwarded, see the scan, uh, that’s just me. But, you know, good. You found your own system. Yeah. Thank you. Nice. So let’s see. Any, anything else before, um, oh Greg, did you fill out a w h form? I filled it out once when I set up the US Bank account. So that’s, I think that’s addressed to you.

Oh yeah. Oh me. Yeah, Tanya. Cause I have a US bank account in, in Canada here as well. Okay. And that’s all. And I’ve also set up a US bank account in the States before and all they did is they sent me the paperwork, I had to sign up, uh, fill out a W eight form I think it was, or some kinda tax form from being in Canada.

There’s no problems after that. I don’t know. I filled out some forms but I don’t know if there was a W eight form. Yeah, so check just them know that you’re in Canada and they’ll send you whatever form they required it. I filled out one here cause I Canadian and US Bank account, Alberta Treasury. So, Okay.

Yeah, I think because if they did send me anything, it’s gonna go to my Detroit address, um, my mentors company. But I get that mail, it’s like a virtual office, so I get it forward to me. So if I guess I get that out, I’ll fill it up. But I never had to do anything like that, to be honest. They did, like I said, they just wanted to know you had a US Bank account to open it and I used the R B C virtual, the rbc.

Yeah. It worked too. Yeah. Uh, but now I can use the Chase Bank or my Bank of America if I wanna open more. They just wanna show you that you have, uh, some history of some banking there. Yeah. Mm-hmm. But thank you guys. Yeah, no, a lot, lot to learn. So, so anything else, Tanya? No, that’s everything. I, I, I’ll just.

I’m gonna try to get this stuff because I, I could have gotten that e i n a long time ago if I did it, like right when I got, but then I, I just was like, oh, I don’t know if I should just, you know, still use that one. I’ll open another one. And, um, he encouraged me, my mentor encouraged me to do, uh, with, do it with my name because of checks.

Like if you, if I have some, uh, if I have, uh, real estate investments and they could just put the check in my name. Oh, so that’s why they took it to you. But now I don’t even want that. Right. So I, I, I, I’ll still use it, but, uh, and try to get the m set up for that and for the, the new, uh, Delaware Corporation I’m gonna set up.

Oh, fantastic. And, uh, and yeah, your, your mentor, uh, interesting fellow and we can talk more offline, but, but, uh, yeah. But hey, I’m happy that it’s at least you. Um, You know, it is bigger than just your name. It’s you’re creating the fund here. So then that’s really the impression that you want to sell.

Exactly, exactly. Thank you. So good stuff. Okay. And, uh, an nadi, how’s it going? I don’t know if you’re still here. Pretty good, man. We, man, I had a excellent meeting yesterday. Um, I, I don’t wanna mispronounce his name, so I’m gonna avoid saying it. Yeah. Um, but we had a great meeting. Yes. Matter of fact, what’s your name?

Mad?

I’m talking. Yeah. Okay. Mad, right? Mad. That’s all right. Yeah, we had an ex, we had an excellent meeting yesterday. Um, yeah, it was, it was just an excellent meeting. We got a lot of things ironed out. I really appreciate it. Cause it was a lot of like blind spots that I had. And, um, I actually got one question actually today, so, How is the frequency of capital calls and after capital call commitment?

Is it after the fund closes or is it like a Pacific date, for example? Um, for example, if, like, if, if somebody makes a capital call, is there a deadline? Cuz I, I’m reading a book and it’s saying capital called like from seven to 10 days. But it, it doesn’t tell me is that from the date of the capital commitment or is, is that from the date the fund close when the LP actually invests?

Uh, so like, what do you mean by when you say commitment? People define commitment differently. Some people that will just say vocal, like a voice, like a. Somebody just saying yes on the phone is, is a commitment. Some people would say sign in the subscription agreements is a, is a commitment. Yeah, that’s what I mean.

I mean that part, like, I mean the real part cause Okay, so basically based on my research, I’m finding out that it’s two ways funds can be ran. They can be ran, the, basically the asset management fees or commissions, they can be ran based off of the capital commitment or the investment of capital. Does that make, like, like for example, they saying that if somebody commits a million dollars, that’s what I would get.

That’s how I would charge for my fees. Right? Wherever they invest the full million dollars or not, I can hold them like liable depending on the LP and stuff. Like, does that make sense? Oh yeah, no, I get it. So, so, so, so, so you’re saying, so some people, and basically the, the, the real answer, I mean, it’s all based on the.

The ppm, that’s what the PPM is there to, to delineate and say in detail. But I’m not, I don’t really believe anything until, until people actually invest. I get very skeptical of the yeses and all that, uh, until people actually invest. So, so to answer your question, um, after somebody signs a subscription agreement, they write down 1 million, and then they say that the capital call would usually be after the, you know, usually after the closing of whatever, however amount of investors you want.

Uh, and then you start calling the capital based on whatever you define in the ppms or whatever landmarks you need to raise money for. Uh, so somebody would have a landmark. That’s one way of doing it. And there may be other ways that are escaping me, but, you know, you raise a capital based on, uh, you get everyone to sign a subscription agreement and then, you know, you, you close the es, you close escrow after everybody.

Sends in the money that they agreed to send, uh, based on the ppm. It could either be the entire amount, it could be part, like, part amounts, and then the, that’s what the PPM is there for. Like the one that’s, I think the draft that you have there is just there to say, oh, after, uh, this amount, we’ll do this many either capital calls or subsequent raises or what have you.

Uh, and then, so it’s kind of, so I, my quick answer is, is basically we write it down in the PPM to say what capital calls are we doing? Is it a deposit or is it actually an investment? And what are, how long does the investment last? And are the fees based on the, uh, investments or is it based on what you committed?

Yeah, that’s, man, you gave an excellent answer cause so let’s go a little bit deep, uh, deeper on that, right? So that, that makes a lot of sense. So basically you’re saying, The investment, the real investment process starts after the subscription agreement is signed. Now, is that after the title? So for example, let’s, I’m raising 3 million, but my first round I’m raising 2 million.

Mm-hmm. Is it, is when they sign a subscription agreement? Um, is that when I start, like, I guess doing the capital calls now, is it at the end of the capital commitments or is it at the end of like, or is it per person? For example, if one like limited partner signs a subscription agreement, then do they have seven to 10 days to invest in the fund, or is it they sign a subscription agreement three months later when I’m ready to sign, when I’m ready to close the fund, then they pay.

How does that work? So I, it, it’s all based on what we write in the ppm. Like, I don’t know if we have ears here, but, uh, maybe there’s, there are a few I can pop open. Oh, what’s that? Oh, I thought matter was saying something. So let, let me also write down this case. So you’re saying case one? So your question is, is the case one, um, when, when, when, when do, when do we get, when do we actually start taking investments?

Is it after the subscription agreement or is it after the fund closes? That’s the matter of fact. That’s, that’s the simpler way now that I was able to talk it out. That’s the simpler way. Do we, do we do the capital call after the subscription agreement is signed per limited partner or is it, so, so I guess my question too is like, is it, so let’s say I got 10 capital commitments.

Do I wait until I get the two main, whatever I’m raising. Capital commitments or as soon as they sign a subscription agreement, am I getting those investments individually? Well, u usually we like using an escrow. So the quick a answer after subscription agreement, because that’s what, like legally I is, is what’s supposed to happen.

But as you know, if somebody signs something, it doesn’t mean that they’re going to wire it. So like we, we’ve had situations where people will signed a subscription agreement and then they didn’t take the action to why are the, the investment. So that’s one. Number two, like a lot of the time it seems to be good practice to organize everything via escrow by having the investors invest in one escrow and then have like a certain dates where whatever inve, whatever money that is in the escrow accounts, close one at a time.

Uh, you can, people can do it one at a time, but most of them have just done it via legal escrow or an escrow service. Some people do it directly. Like there were some deals I paper up in Toronto where they did it directly and it went directly to the bank accounts. But, uh, like honestly the, the escrow is, you can see everyone’s name there and is this more organized?

So it’s, it’s really your call whether you wanna do it individually or in a group by having an escrow service. Uh, where you take it all in, like there’s North Capital that we use a ton and um, they have it in escrow, but basically the quick answer is they sign a subscription agreement and then whatever terms that are in the PPM or term sheet or whatever, or even subscription, you define that.

So it’s not as if like we’re just saying what are best practices? Like, it’s not as if like there’s some something out there that defines what it’s done. You’re the, that’s what you’re doing and that’s what we’re doing together is saying, Hey, after, so then we can say, cuz we had one hotel deal, um, Tempus 22, uh, last year they said, uh, There, they have a deposit that the investors would pay after they signed a subscription agreement, and then they made it.

So that was non-refundable for the investors. That was something that they chose to, to write in their subscription agreement. So, but then other people may say, oh, like, like I think aade, he said that his are refundable because he wanted to, he was more new and he wants to get that good relationship with the investors.

So, the quick answer, I don’t know if that addresses the question, but, uh, but, but yeah, but basically it’s just they sign a subscription agreement. They do what? The subscription agreement and what the PPM says on whatever timeframe that you define. Okay. All right. It’s, it’s like you answered 90% of it. As I get closer to that, we can, we can circle back around cuz um, we we’re finally at the point of finalizing our financials.

Good. And, um, after the meeting yesterday, man, you know, I was told that, yo man, once you done with this man, you look like you pretty much, um, Good. But let me ask you this last thing before I get outta here. My first round, let’s say my first round is 2 million, right? Or, or, or it might have to be a little higher.

Well, let me just ask you. Mm-hmm. So we, we, based on our numbers and based on what we want to do, we had to change our raise to 20 million. Mm-hmm. So in your, and your, and I only want to do a max of three raises cause I wanna raise this over the next year and year to two year. I don’t wanna do a million raises, right?

Mm-hmm. And I, and I already know once we get the initial raise, I already know we can do so much with the initial raise that it’s going to pretty much have other investors want to bite because they seen what we did with the, with the percentage of the fund that we raised. So my question to you, and this is something I’ve been struggling with, we talked about this before, the investor tranche, right?

Mm-hmm. At first I had minimum of 50,000. Middle is 75,000. And the preferred, the preferred interests. Is a hundred thousand where they get a 6% preferred return. Mm-hmm. The middle one is like a junior. They get junior, they get senior, and then the, the, um, the smallest one is junior where they pretty much get paid after the first two tranches get paid.

Now my question is for a 2 million raise, and let’s just say we changed that to six, right? For a 10. 10. Hold on. Wait. 2016. Two, four. Uh, well, yeah, let’s just say we raising 4 million for a 4 million raise. Well, what’s a good minimum investment? A 4 million raise. So then the, the que so let’s just relate to the different, uh, classes of, of membership interest that you’re selling or is this a different Not yet.

Yes. Because I wanna make the minimum investment the lowest tranche because at first I was like, I don’t, I I was thinking like, especially cuz I’m thinking that I actually might put up money myself Yeah. Into the fund. But I don’t like, we’ll discuss that later. But I guess I just wanna know, based on the deals that you’ve seen around a two to 4, 8, 2 to $4 million raise, what are some of the minimum investments that you’ve seen are more successful than others?

Like is it a hundred k, is it 10 Ks? Even though I know the lower it is, obviously the more people, the more work. But I’m just saying based on your experience, what’s a good minimum investment you see for funds around the, the, the initial funding round for two to 4 million, like I see usually a hundred K.

Like, uh, that’s what, that’s what I think. Like a lot of people, Henry aade and all these folks that actually, you know, they close your deal and everything. I see a hundred K, but some people are doing, uh, 50 K, like I know Barn is doing 50 K, he managed a hundred million reads, and then he’s just raising 10 million, uh, he’s doing 50 K.

So we don’t really have anything that’s like smaller than 50 K. Um, You could make it smaller in 50 K, but then one thing that you can consider, anything that you could consider investing for one unit if you wanted to, uh, if you wanted to invest in your own fund, which is your own money by the way. So it’s not as if it’s, is this in a different bank account is what I usually tell people.

But, uh, whatever amount that, if there’s an amount that you can put in that you feel comfortable yourself, cuz sometimes the minimum investment amounts could be like a good minimum investment that the GP can make to show that there’s quote unquote some, some tiny skin in the game for the other LPs. Uh, that could be a good start.

So, uh, so I’d consider those three things. Basically, basically what I’m saying is 50 K or a hundred k or, or if if there’s an amount that you can do yourself, uh, then whatever that amount is, uh, you know, that’s what I, I’d save today. I mean, I think, I think, I think that’s, I think that’s, that’s, that’s great.

Um, and we, I we’re gonna figure out the minimum cause you are right, it is still, it is still technically. You know, your money cuz you invest in your business. But then it’s like the lockup period. That’s, that’s kind of the issue. Yeah. For me. Cause let’s say I put in, let’s say I can come up with 25 K, how long is that gonna be locked up?

You know what I’m saying? But, but anyway, um, that’s, that’s basically all my questions. Go ahead. Yeah, you, you define that. But I, but I, I do, I I think I’m a, I I was changing my tranches and I guess I, I want to meet with somebody Wednesday and maybe if, if I don’t get to meet with them cause they didn’t respond back to me yet.

If I don’t meet with them Wednesday, I, we can kind of go through it here. We kind of go through the tranches cuz man, we, we almost done man. Like, even the guy yesterday said, my, my door, my my door said, yo, man, you, you, you basically ready to start reaching out to investors, man. He was like, but make sure you talking the two first.

You know what, I’m upset. And I was like, cool, cool. But um, but yeah, that’s, that’s basically all I got. But I think 50 is good Right now is 50. I ended up changing it 25 cause I can put up the 25. But I mean, if I change it to 25, that’s going to bring in like, I don’t know, man, what do you think about 25? And I know it’s on me, but like, is that just too low, man?

Because I know that’s going to take, that’s like what? It’s gonna take me 80 people to get the 2 million. Well, I mean, that’s, if everybody invests in minimum amount, which there’ll be, it’s like, it’s really long tail, you know, you’re gonna probably see one or two people that would do most of it. And then, then the rest would probably be on the small side.

I, I haven’t seen it where it’s been like even for every, like a hundred percent even, uh, well, have you seen 25 though? That’s the real que. If not, then we’ll just, I’ll just figure it out with the 50. I, I’ve heard of it once, but I haven’t really, uh, seen a lot of it. You could still do it. That’s it. I mean, you can.

That’s it. Then you, yeah, you right. I’m al you, man. You already seen kind of my fun, man. I’m already all over the place with doing this different, doing that different. I don’t want to just come out just like, yo, just, you know what I’m saying? But, uh, I, I’m, I’m cool with the 50, I think 50 is good one.

Tranche tranche, C 50 tranche, B 75, tranche a 100, and I actually watched the YouTube video of a real estate guy, I can’t think of his name, man, but he raised like a hundred million fund. That’s where I got an idea of the tranches from, and he was like, that’s his best advice for anybody. Then I started doing more research into like senior debt, junior debt.

Then I started seeing just how it works in real estate, and I’m like, yo, this is brilliant. Like for the people that don’t know what I’m talking about, you can literally take one stream of income or one asset and literally lend it out the three people or even more by using tranches. And what you do is you give them access to the stream of income or the asset based on like liquidation level, right?

Like what, for example, a company has stock, they have two tranches. They have preferred tranch and common tranche, right? But it’s really the same company. That’s my point. It’s just, it’s just, it’s the same company. They’re just changing how the stocks are structured. You can do the same with real estate.

Like if you got one house, let’s say you got a mortgage, right? Cause I’m actually doing it now. You got a mortgage, you getting income every month from your tenant, you can literally sell that income to three other people, man. And basically they’re, they’re, you’re getting, you can get three different loans on one asset using investment tranches.

I’m not gonna get too deep into it cause I took up enough time, but definitely check out what I’m talking about for those of y’all that are into like, real estate funds. So, yeah, no, it’s a good idea because there’s Joshua Williams, he’s doing, he’s doing I think three. Uh, but then for him, he’s doing it based on, uh, he’s trying to incentivize basically the bigger checks because he has a different minimum investment amounts, uh, for one type of investor.

And, and I can go through his, um, Be curious on his entire system, cuz I have to go through it again. But it’s a good idea depending on what you’re trying to incentivize. Like some people try to incentivize speed as well and then you do it based on the timeframe to say that, uh, you know, the first or the first units are sold at, at this price, which could be a lower price.

Then the next people that come in, that’s another way. But then Josh, Joshua is doing it based on minimum investment amounts cuz he’s trying to incentivize the bigger checks and say that the bigger check investors would have, uh, a different, I think different preferred, uh, return, meaning that they have less risk.

Uh, so it’s kind of interesting how he did it. Uh, you know, so I would consider what they do. I also wouldn’t try to make it too complex or as, as well, because I don’t know if you’re looking at a REITs fund because it depends on the fund. I don’t know if you’re looking at a res fund because Yeah. My, my screen, my bad, my screen froze up.

No worries. Yeah, no worries. I,

what’s that?

Man, I don’t know what’s going on, man. My internet is acting real janky. It’s pissing me off. Yeah, it’s, it’s all good. I think we’re, we’re live. It’s all good. So then, uh, yeah, I’m just saying that like, uh, it, it may depend.

Okay. I, I missed you there. So you’re sharing your screen, right?

Hmm. I hear, uh, okay. Can you hear me? Yes. I see

stupid. Yeah. This is basically how mine look right now. Um,

Come on, man.

Yeah, I can see it. Oh, okay. Yeah, ma’am. I, it is, it’s not even letting me scroll down. So, yeah, so this is basically what I got right now for my tranches, and I just changed this yesterday, but I think I’m gonna change it back to 50. What do you think, man? Your, your final opinion, what do you think? 50, 75. A hundred or 25?

50. A hundred. I mean, you could, you could consider the 25, cuz honestly, like as long as you’re, the thing is that if you’re doing Reg D, they’re credit investors anyway. So

the only thing I’m thinking is, well, I mean, they’re just two remarks based on what you showed me. One is at the, the things at the top. I mean, they look pretty big. Like, I mean, you’re saying, uh, Five times. All right. That’s good. But you’re probably talking about a 20 year term, because I think your deal is 20 years, so you may want to No, it’s 12.

Oh, 12, okay. Yeah, you may want to see. Okay, good, good. Okay. It’s good that you have that there. I missed that. Um, yeah, no, it’s fine. IRR seems really high. What, what’s that about, man? I, yo me and my business partner, he’s on here now. Actually, we talked about this yesterday, but that’s really what it is. It is.

I think it’s, it’s slightly changed now cause we made some, um, some adjustments, but that’s really, it is really highlight that. Let me see what the latest is. I got it right up here in front of me, so I take a second. The only thing slowing me down is my computer is just locking up on me. Um, matter of fact, I think it’s Google man.

I.

Complaining.

Y’all can just bear with me, man. It’s doing my best here.

Come on man. Really?

All

so, yeah. So the I R R is,

uh,

yeah. That that is correct. That is correct. That is correct. It’s how I like that. Okay, so, uh, yeah, I mean, we, we don’t wanna scare, we don’t wanna scare people away or anything. Uh, so I don’t know, I, I’d really just, uh, take some time to just look at that again. And, uh, so yeah, when we, I maybe we need to have a, another private meeting, but like, when you see everything, this is gonna make a lot more sense cuz it was higher than this.

But we had to, me and my business partner really talked about this and we decided to bring the numbers down, but, um, but that’s, that’s what it’s really looking like. But, um, unless it’s something we missing out on, that’s why the, the question, and it might not be that high, because the question that we asked asked yesterday was, is the management commissions included?

Is the asset management commissions included in the i r and the C O c? These numbers, they are not included. So when I add those, they’re probably, they’re gonna go down. I don’t know how much, but they’re gonna go down. Yeah, because are they included? That’s a good question. So are they included? Well, he said Yeah.

Yeah. Then I’ll defer, I’ll defer to him then. Yeah, because I mean, cuz we’re looking at, I mean, we’re looking at just like 20%, like, you know, five to five to like 15% or 20% or something for cash and cash. Like, so, so there’s, there’s something that we have to diagnose with that. And that’s fine. I know, you know, it’s okay.

We’ll, we’ll, we’ll be able to go through it, but, but yeah, I just look it up. The other thing is, uh, the, it’s fine what you did and then what you, what we’ll do is in the PPM there’s the waterfall, or sorry, there’s the, um, like there’s a quick part in the PPM that talks about this person gets this first, this person gets this after.

So that’s really easy to do. That’s easy. And then I just try to keep it simple and not really go too, uh, go too crazy here. I just really keep it simple and, and clean and just say, this is where we’re invested in. This is, these are the, these are the different units. This is how people get their money.

Like really just clean. And then, uh, but I think next steps for you, we’ll just go over that, those, those numbers again. Like, I’m, I’m curious how th this was, uh, finalized in that last meeting, even though it went well, but we just have to check that. Yeah, it is, and, and I know it, yeah, so it looks crazy, but I, I think me and you really should meet, and we can go through it and let me know what I need to, but we’ve really done the real, like, you know, I’m a data guy, man.

That’s, that’s what I like. We’ve really done the real hard numbers. We’ve already reached out to companies and everything, and as crazy as it looks, that’s literally like we had to bring the numbers down because it just looked too crazy. But I

sensible to them. But that’s really how they investment. Uh, We projected the pan out and, and it looks crazy, but it actually was very, very highly researched. And we’ve been working on this for like six months. Oh, okay. May, maybe then, maybe it’s the term, maybe cuz like for the, cuz you’re doing construction and a lot of these construction deals, that’s how they are.

So maybe because the term is so long that you just have all these things projected out over that term when you’re constructing all these, these new assets and everything for something that is like, uh, quasi modular. So maybe I, what I’d look at, maybe I’d like try to have a shorter term to say phase one, you know, or in this amount of time.

I’m not sure how many investors would stay in for 12 years. I don’t know if it’s all or most, but I’d really look at the term. Uh, Matt, do you have any remarks? Because, uh, I, I know that you were discussing, uh, like the other day, um, yeah, I mean, The numbers are high, but I believe that there’s a big component of technology and how, uh, an RA is using, uh, planning to use the technology to generate these returns.

But, but as I uh, mentioned to an RA yesterday, like he needs to be sure about all the assumption that he is putting in. Oh. And, and when, when investors are, uh, you, you know, they’re going to question him and, and he should be able to answer those. And yesterday we had a really productive conversation and, and the ideas and, and all those things seem really promising and good.

Uh, but at the same time, I haven’t looked into it in the details. I also can’t really comment on, on, on the specifics. Oh, okay. No worries. So yeah, what, what I do, I just look at the, the, the term and then the phases of everything because it’s like a big construction thing because some people, they, they have like, take it like this.

There’s 1, 1, 1 fell a few years ago. He was like, he was telling me, oh, I’m, I’m doing a giant film project. It’s 400 million. This is before, this is like what? Like this is like six years ago, five years ago. Before I really knew more about some of the basics of the, of, of how people sold their deals in, in early construction.

And so, uh, it is phases because there was nothing, he didn’t even own the land or anything. Like just, let’s just think from the basic level. He didn’t own anything. It’s just somebody saying that they’re going to, that they’re raising 400 million. But when you look at it, he has to buy the land. He has to, um, you know, rezone it.

He has to get the license, the permit team and all that. He has to, after he requires the land, he has to start construction. Uh, you know, so, so, you know, and then let’s say he wants to make a smart city like film studio or something. And it’s always, it’s always film that you hear these things. So, yeah. So, you know, he would have to, um, have existing there.

There’s so many assumptions. So it’s fine. Yeah, no, it’s fine. I mean, we, we can bring it down, but lemme just give you kinda an idea. Think about it like this and you can, whoever googling this, you can do this yourself. Let’s say I can build, cuz we, we we’re doing a project now and internationally, we literally got our first booking yesterday, right?

So let’s say I can build a home, a super duper futuristic home using the technology that exists for like 30 grand. I can literally add certain things to that home in implementing technology and all this and literally throw it on Airbnb for a hundred dollars a night. Literally. So that one construction was 30,000.

And I can literally make, I can literally make 30, I can literally make 30. What’s 30 time? A hundred what? 30 time? A hundred. What is, what is that? 3000?

So I got a 10 year fund. I literally have made 10 times my investment. And like I said, we already doing this on a smaller level, so that’s why I look so crazy. But man, it’s, it’s real though. It’s, it’s, it’s, it’s what’s happening, like right now, you got people building these tiny homes, man, for like 20 k and literally listening for a hundred K and getting it, people are buying it.

Like, why? I don’t know. But that’s, that’s just what’s going on, man. So, like I said, and, and you know, that’s the part I can give away, but we doing so much more than just that. You know what I’m saying? I ain’t gonna give everything away and I don’t hear, but like, it is, the numbers look crazy, but it’s, it’s, it’s what’s happening already.

Like, you can, you can build a home for 20 K and throw it on Airbnb a hundred dollars a night and make and, and make that back within six months. And everything else is house money. Uh, well, well listen, it’s, it is good. It’s good that if you have the, uh, justification, uh, all you want to do, you just want to, um, You just want to, you just want to give like, uh, it’s like getting somebody in who invests and then you’re setting their expectations, right?

So you just have to remember you’re setting their expectations. So as long as, so really we should make it low. That that’s why, that’s why we, we actually have to price. We have to, okay. What we gonna do is I’m gonna, I’m gonna talk to my business partner who’s here, who’s here actually. And you know, we, we gonna meet and we gonna, we gonna kind of discuss it.

We might cut the numbers down, make it real simple for them, and then when the fund actually is happening, that’s why we don’t wanna do the annual stuff. We, we wanna make our money, we wanna actually get a percentage of the revenues, right? So I’ll take the, and that’s kind of what we was talking about yesterday.

I would take the loss on a little asset management fee. Y’all could have that, but we want percentage of the revenue. Cause we, cause like I said, we’re already doing it on a much, much smaller level already. So we just know if, if we get the capital to scale this, We gonna make a lot of people a lot of money.

Right. Um, sure, sure, sure. But that’s, that’s just kind of where we are. Yeah. Yeah. There, there are two things too. Like, because like, cuz again, if I think if you phase it out, then, then that’ll be good. And another thing is like there, what do you mean you phase it out? What do you what? Because you said that three times.

What do you mean by that? I don’t wanna pretend like, I don’t Sure. I’m saying it because it’s important because I don’t know how long it takes for you to, uh, you know, to, I I think the construction’s fast for you to implement the, the tech in, in the deal and then to make revenue from that. Or how many houses that you’re looking to build over what timeframe.

But some people, for like a lot of the construction, they just say, Hey, from phase one, um, you can do your capital calls the same way. Basically we’re just saying we’re buying, like, look at the film analogy. We’re buying, let’s say we’re buying, I’m not saying you’re doing this, but we’re buying a piece of land.

We’re rezoning it. We’re, and then that’s it. That’s phase one, phase two. It’s like, okay we are, uh, building the, the facility. And that’s phase two. Phase three is, okay, we’re adding like some smart city stuff like in the facility, uh, or in, we’re adding some technology at technology layer and a technology service in the facility, phase three.

Um, you know, that’s one idea. And then you, you could align your capital calls or your raises based on that. Uh, does, does that answer the question? Yeah. That, but Well, you already answered, we just, I’m just babbling now. But that’s, that’s why we only raising 2 million at first. Okay. That’s why we wanna raise 2 million and I, and we we’re gonna take that 2 million and show that why I said I only wanna do three capital raises.

Max three, maybe even one, I mean, maybe even two. We wanna do one. Cause like I said, we’ve, we are, we’re already doing this on a smaller level. We’re already doing it right, but it is just with way less money. That’s kind of why I was discussing with you about my capital being locked up. So we are like, okay, we can scale this by X million.

I mean, and you know, things can happen. Of course, we already know that. But I’m just saying if we can scale this to this, Then we’re, we can charge this in relation to what we built for construction. And we already have the know-how. Cause like I, I said, I’m an actual data scientist. My business partner man, he, you know, he’s a banker.

He been working in banking for over 15 years. Like we, we, you know, we got a brilliant team, man. So we really excited about it. But that’s, that’s kind of the thing. Like we want to take the, the, the 10%, which is 2 million, take that money, start building, buy the land and stuff like that. And kind of show them like, yo, this is what, cuz like I said, we already own land in another deal.

We could just build like a, um, we could show ’em how fast too with the technology, how fast houses can be built. Right. And when they see a house can be built in like a week, wait a minute, a week, then it’s, it’s, it’s just a whole nother ballgame when the average house takes three to six months. But the technology, we usually can be built in a week.

So we just changing the game, man. So yeah. If we can, I would love to meet with you this week and we can kind of iron this out and see what we need to change and we can just go from there. No, e, e, exactly. And then, uh, And then I think we may have the time, but you’re getting, it’s getting pretty full, but, uh, we, we will, and the the last thing I’ll say is the, uh, you can, you can just say if IRR is above like whatever percent, then you get a bigger splits and you can just keep on doing Okay.

Until, until that’s how people do it. You know, if your IRR is, what do, can you, can you type that in the chat so I can write What do you mean specifically by, because that’s, that’s what I think that’ll be good incentive. And we’ll bring down that I rrr we’ll bring that down. We’ll bring that down. Yeah. No, I’m problem.

Well, maybe keep, maybe like it’s just, you’re just setting expectations. Like really it is what it, whatever the project does, we’ll still do whatever the project does. This, this is just for the marketing of what you’re telling people will happen. So, so what some people do, they, I I had the same thing you said.

It’s, I don’t wanna scare people away cuz they gonna see that, they gonna be like, nah, that’s, it’s like telling somebody about the internet. Like, yo, I’m telling you man, the internet is gonna be, or crypto it’s going to be. And then people, it, it scares people off. Yeah. Well, exactly. And then, uh, you know, few benefit, but most are scared off.

So here’s just an example. Okay. You can just say if the ir like, here’s just an example. It’s like if the IR is like below like 15%, like I’m not saying it’ll be below 15%, but we just still handle the case. If it’s below 15%, you can do 20% to your, uh, to yourself and then you can I do that? Can I do that since I’m not doing the carry interest?

Can I do that with property management also? So, so what do you mean with property management? So like we’re not doing the carry interest or a performance fee. We’re okay. I I want my, like, I want my money off top cause I know this gonna make money. So I, I want to get my money off. Well my, the company’s money off property management and, you know, property management is charged from the revenue.

I want to get paid off of revenue cuz the investors gonna make, they gonna make, I mean we dealing in real estate, man. So, Even if you get a hotel, you gonna de your money. You know, as long as you getting a good deal. Like, so they gonna be making money handle with it’s, anyway. But I wanna make sure we walking away with, with some money too.

You know, we ain’t just trying to get everybody rich and then we walking away, still living in the one bedroom. So, can I do the property management? And I guess that’s a, that’s an example of a waterfall, like how you have that mm-hmm. Instead of doing that as a carry interest, can I do that as a property manager?

So right now our property management is 7%. So could we do, like, if the fund gets to a certain irr, our property management goes up to this or goes down. Matter of fact, I guess it’ll go down. Cause I guess the more money you make, how does that work? Is it, the more money you make, the more profit we the, the higher the percentage?

Or is it the higher the revenue is cuz it’s more money, the percentage goes down. Does that make sense? Well, well I’m just saying that the, so when you, when you say carried interest, so I think let’s, we can talk, go through the basic with the stuff cuz maybe our definitions are different. Wh when you see carried interest, I’m just talking performance.

Yeah. So I’m just talking about the split between the general partner and then the, the limited partner, the profits for lack of better words and, and perhaps matter can Yeah, same thing. Same thing carried into performance fee. Yeah. Okay. So I’m, I’m just saying because I mean, it’s kind of what some people say, oh, if you know the project, we will have, have a 200% ai.

Right. Then why not just take, uh, cause, cause like, what can happen is like, when you say, okay, 150, then you’ll be taking like 90, you’ll be taking like, you know, something crazy like that. So would that not be better than even taking revenues? I, I’m not sure about the revenue, uh, taking revenues, but if you take that in properties, like, wouldn’t that, would that not be good?

Like if you do it like that? So the property, so the, the reason I like the property management mm-hmm. Is because with property management is taken out revenue. Like I know I can kind of plan. My business flows more cuz the money, we know the money’s gonna be there. Yeah. But if it is profit, anything can happen with profit.

But it’s, if it is revenue, you know what I’m saying? I’m getting paid regardless. Cause we know revenue is different from profit. Yeah. I haven’t heard, I haven’t heard of many, many matter. Have you heard of a lot of deals that, you know, they, they’ll take revenue, uh, as opposed to the profits or, uh, not really.

No. Rev I think it should be profit. Uh, it, it should not be revenue.

I mean, we’re, we’re saying we haven’t seen it at aade, so, um, okay. That’s just, so right now our, our management fee is 7%, but All right. All right. All right. I don’t wanna take too much more time, man. It’s, uh, we done went too far. Like, I, I keep saying I, if we can figure out how to meet, like, Whether it is me or you or me and somebody else.

So they can kind of go through the fun a little bit to see, maybe it’s a blind spot I’m missing. They like, well, when you change that, your IRR goes down to this. I’m very interested in that cause I don’t want to come out looking too crazy. And you know, they looking at me like, this dude is a, even though we are rookies with this, like, oh, he’s a rookie and they know we are.

It’s a difference when they know you, a rookie and you acting like a rookie. So I don’t want to come out like that either. But this exactly, it’s literally a profitable project just based off the hard numbers of it. You know, one plus one equal, equal two. So it is what it is. But anyway, man, this was a great meeting.

I’m gonna shut up now as always, and uh, you know, I guess I see y’all on Wednesday. Yeah, no, no worries. And, and closing remarks is just that, uh, uh, yeah, we’ll get you another model maybe. And, uh, we won’t waste a lot of time. But, you know, I think just doing everything from the ground up, just keeping it simple and, you know, finishing it, finishing the ppm and then, uh, you know, This is what a lot of people do.

I, I’m not sure about the revenue part of it. And, and so I think, um, we’ll just keep it simple and, and to the point and in, uh, going forward. All right. Okay. Cool. All right. Uh, Aaron, how’s it going? I’m doing good. Good. Yeah, just, uh, got back to my computer. I’ve seen the memo. I imagine you guys are wrapping it up.

You’ve been going for a couple hours here. Yeah. For two hours. Yeah. So, so welcome to the other side. And then, uh, and then I know that we have our onboarding call and everything, but, but yeah, u usually we just have these whole, um, uh, group meetings, um, because, you know, like doing financial models or, uh, talking about investor feedback.

So, I mean, you’re, you’re welcome to these calls as well. And it’s just to, um, I share what everyone’s doing. I think the Canadians have left the call. The Canadians still here, so there are a few Canadians here. Um, oh, no, it looks like most of them left. There’s Dean Fuller, but, uh, yeah, feel free. Uh, we have a little group as well on WhatsApp and, uh, we have an iOS app, an Android app, and then they’re, some of them are large net worth and alar, lot of investor connections, so, uh, you’re welcome to connect with them as well.

Okay. No, sounds good. Get familiar with everything, uh, awesome. On the site. Awesome. And, uh, so any que I know that we have our onboarding call, but any, any questions initially, um, as I have here? Uh, no. I guess just, uh, yeah, I’ll just, I’ll just try and get connected on as many of these channels as I can and, uh, yeah, get, uh, our, uh, our package, uh, ready and out there.

Good stuff. Yeah, we have a lot of work to do and I look forward to it. So. Good stuff. Alright, so. Great. So I think that that may be it. And then, uh, Chaparro, did you have any last questions to circle back to, now that we’ve gone through everyone here,

I think, I don’t know if you’re still here, but, uh, that may be it. So last thing I’ll say is, is matter. Do you have any updates with respect to the, uh, the rise in interest rate in, uh, in Canada? I think it r it rose to four, 4.75, or even to the Americans. Just any advice about the macroeconomics in general?

Uh, no. Nothing much has changed. I mean, it’s a small increase, uh, 25 basis points and, and that is going to further impact the real estate market and the cash position of people. So I guess it just, uh, similar advice. Hold tight on cash for now. Uh, and, and. Just be, be ready for the tough times ahead because uh, we do see a downfall in the real estate market and other markets as well going forward, in my opinion.

Got it. Gotta be careful. So, alright. No, I think this has been productive. I think we, we went really long, so, uh, so everyone, we’ll see you on the next one. The next group call is on, uh, Wednesday at 11:00 AM Eastern. We’ll have a PhD, uh, c FFA there as well, who can answer tax, uh, global tax questions and financial questions.

Uh, I may not be able to show up on the, that group call, but, uh, the one-on-one calls are still available as well. And then, uh, and thank you for your time, everybody. We’ll see you in the next one. Cheers. Thank you. Thank you.

Content Restricted! You are not logged in.

• If you are a member, check your email
  • Then login at Raises.com/login
• Non-members: book us below

What are these calls about?

At Raises.com, we work with thinker-doers who are setting up new funds or acquisitions.

We work together to solve their problems in closing their transactions.

This is for you if:

1. You need:

• To urgently want to set up a fund, or commence a larger acquisition
• Help finishing the legals/financials/securities to prepare a fund or acquisition and also as well as raising capital for one
• Have already invested in and/or syndicated minor real estate transactions but have not done a $10m+ transaction

2. Struggle with:

• Minor profit margins on small deals or syndications and want to work on larger transactions (funds or acquisitions)
• The unknowns, and lack of visibility from the complex world of high-finance to set up and close your transaction
• Allocating time and resources while preparing and executing a sophisticated, large capital raises
• Building relationships with investors with the mandate to finance your fund or acquisition

3. This is not for those who

• Work on pre-revenue prototypes or no-asset deals
• Have all the legals/financials/securities prepared
• Are not principally in US, Canada, UK, or Australia

If Accepted, You Will

1. Join masterminds

• Prior to joining Raises.com, many of our future members have never raised, more than $1m-$2m,
  • nor do they have trusted institutional relationships on the debt or equity buy-side for eight-figure transactions.
  • So, the same day that somebody joins Raises.com, we integrate members with Raises.com’s JV partners
    • who are either investment banks or family offices, who can directly prepare and complete your raise.
• The result: you have a network of eight-figure plus capital raisers with whom you can build lifetime relationships and raise your standards

2. Ready Your Raises

• Prior to onboarding, many of our future members have may not have their information ready for an institutional capital raise ($10m+).
• For instance, many haven’t done a Reg D in the US, or complaint exempt offering in Canada, Australia, or other prominent commonwealth nations.
• Our consultants and chartered financial analysts can assist you in all the financial, compliance and legal paperwork
  • to get members 95% through to completion so that you have the compliant offering,
  • you have a personal CFA, (Charter Financial Analysts), to assist you with the financials,
  • and testing all assumptions therein if needed on a 1-on-1 basis.
• The result: you have a clear pathway to having everything compliant and so you have as many routes to go as possible, even possibly going public with support along the way.

3. Start Raising

• Prior to onboarding, many of our future members have may not the contact information on investors with
  • the same mandate, a team to delegate the capital raising to, and a system
  • to predictably and quantifiable measure performance to get closed term sheets more systematically for an institutional capital raise ($1m-$100m).
• Many CEO’s do not have the time to be able to go out and do consistent outreaches and measure all of the metrics and do all proper reporting,
• so Raises.com has consortiums of trained appointment setters that are trained to assist you in hitting the markets
  • by contacting the tens of thousands of investors from the offices, private debt providers, and so on,
  • on our proprietary portal, underneath your company through the compliant structure securities council have created.
• The result: The capital raising process in your organization is systemized and delegated

4. Systematize, Delegate and Repeat

• With an extra set proprietary tools that can be delegated for somebody else to do, or you can do directly, for you to get, investors that even in our network.
• Leverage Raises.com’s online reputation into your capital raise for added traction.
• The result: countless avenues to continue to generated conversations.

5. Get added to the numbers

Raises.com has assisted firms in creating fund and acquisition vehicles for hundreds of people and raising

and closing an excess of $152m in under two years through direct, compliant channels. You will be added to the head count of raises closed.

Raises.com offers licenses for a select group of people to access a membership for a year.

We begin by mapping out a customized process for your raises from set up through to completion.

If someone qualifies for a membership, it will include:

• Raises.com branded creation of packages for all points in the transaction process
  • (to convince sellers to be originated, to convince buy-side firms to take part)
• Trained remote staff and teams to work under your company during your raise
• Tens of thousands of compliant vetted investor contacts and data (equity or debt) updated weekly
• Software to autonomously build relationships with investors
• Resources, training and recorded conversations from mastermind members
• Private mastermind communities of principals raising $1m to $100m and beyond
• Capital raising-trained Chartered Financial analysts to finish your documents in as little two weeks
• Warm relationships to FINRA registered broker dealers, council, private equity firms and family offices

The price for annual membership is currently in the upper 4-figure range for those that qualify.