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Hello, doctor. Hey. How you doing, Natu? Yes sir. I’m doing well here. How’s it going? Good. Good. You received the money? We haven’t checked. Yeah, like I have to get after to actually check by the end of the day, but we haven’t actually checked yet. But if we have a problem if we don’t get, we’ll let you know, but we’ll confirm when we get it, okay. That’s good because it took us a long time to send that from going through that intermediary bank process Yeah. To getting over to you. Yeah, we’re Canadian. That’s, I know, that took almost almost two hours to do. Really? Cause people didn’t know. They took a while to process that. Yeah, they said only two times.

One lady been there for 30 years and she only did something like that twice in her entire career. I’m like, wait. Whoa. But yeah, but we’re very excited on this end to work with you. They, I didn’t understand the Bloomberg bonus. But. When I looked and I typed onto one of your other clients who had it, I saw it was like a writeup on Bloomberg, something like that.

Yeah. It’s a press release that we get because we have this nice partnership where we’re able to get discounted rates for, to get people on Bloomberg. Some people like it for the seo. It’s just like a little it’s not required. It’s like a little bonus, just when people, they look at the fund and they say, oh, okay, yeah, this is it’s like the Gwen Public or something.

It’s like a little bonus. Yeah, no, I like that idea. And here’s why I like it. I like it because it almost gives you the impression that Bloomberg acknowledged you. And I think that’s gonna sell well for the investors on our end, so we can explore that later on.

Yeah. It doesn’t have to be now, but how much something like that would cost me. It’s a thousand bucks to get on Bloomberg. Is it? Pretty cheap. Okay. All right. So I can always get that later. That’s fine. Yeah, like we’re doing it for it’s funny sometimes the communications though, somebody who did a cybersecurity acquisition back in February, I’m just hearing about now, but he we’re getting him on Bloomberg as well, just because he’s doing a new fund and then he wants to get the word out there from way Somalia eyes built.

It’s always there and there are tons of companies that do it, and it’s just another feature. Okay, that’s good because I just hung up from the guys in London that’s billing the funnel for me. So they’re gonna change my whole website. Oh. They’re gonna change everything about me and I’m all for it.

So they’re changing all the social medias. They’re ch they’re changing everything so that I could become an authoritative in the Space funnels.com guy, right? Shakir. The funnels is Shakir, let me see. He is actually the ClickFunnel champion for a couple of years straight with 30 million plus.

Nice. For a year. So he’s rolling all of his funnels out to me, so I’m getting a product call done for you, which means that they help me on the implementation side. Nice. So I should be going to the market within 90 days in terms of mass advertising and everything else like that.

The specialty that we’re offering is the ability to move your online business here with me as your partner. But the kicker is we can raise capital for that very same business here as well. So we’re gonna upsell, we’re gonna upsell that and create different funds for everybody who comes through our pipeline that would like to partnership with us.

Through this relationship of yours, it’ll now navigate us into the specialty of Reg A, B, C, and D that we can actually deliver for them. Obviously you are pushing the 5 0 6 and I will be pushing that too. So with that said one question that I had for you in that regards, I know we said that a lot of times you wanted to create those raises with an L C.

I’m thinking that because of the pass through entity and the taxes on our side, I wanted to do a C corp to keep the money within the C corporations. I didn’t want it to flow through me personally. Okay. Can we still do that with C Corporations versus the llc? So it can be done but just to clarify, we’re actually more on a fan of the limited partnership like that.

That was the one where we do not llc. We usually do the limited partnerships. We’ve done LLCs as well. But it doesn’t really matter. It’s more about yeah, the quick answer is yes because it’s more about us just saying what’s the valuation and then putting that into a share offering or a unit offering that doesn’t matter.

All right now the C corporation I think would help better protect. Me as an individual, even though the limited partnership is limited to the level of investments inside of it because the limited partnerships on this end actually flows through to your 10 40 from a tax standpoint, I didn’t want to cross re reference the two since I might be dealing with partners now that I have to answer to.

Yeah. And technically speaking, you’ll help me advise on this. What I then put all of the individuals who we raise capital to as a partner through, now I can put them as a partner on the LLC in the C corporation. I could do that. Clarify. So then you’re saying, okay, if you can just help me visualize it. So you’re, cause you’re saying two entities in one here.

So Yes, I am talking about two entities in one. Meaning I’ll set up the C corporation with myself or a corporate entity that owns it. And then when the 400 doctors come in, we could set up another corporation that they have control over within the C corp. I remember this. Yeah, because you discussed this.

That protects them because they’re set up with their job a bit in a unique way. So then they have their own thing and it’s through those companies. Is how they’re investing is what you said from that last conversation, correct. Correct. Correct. So that’s pretty much what we wanted to target.

And you’ll just tell me what I need to do in order to start so that we can get the ball rolling, but I’ll start next week sometime, I think you guys send me a link to a portal, I believe. Yeah, that’s just the the log on, the terms of service log on, and then to see all the investor lists and the communities, all that good stuff.

But yeah, really, yeah, really what I’m ready for. And we can do it now, we can do it next week, but yeah, we can get going right away because the idea is we’re asking around about 40 or 50 or so questions. We have it on this form because you’re mentioning that like leveraging the 5 0 6 C for potential clients in the future, because now is a really strange time with this whole AI thing because we automate a lot of the creation of the draft documents and then we get humans nice, myself and other people just to review it.

So the idea is we fill in the form automatically creates those drafts, and then after those drafts we created, then, we can start doing the outreach. So that’s in a nutshell the process. So just on this call is just me just going through the questions and then okay. The the offering.

Okay. Okay. Big stuff. All right. If you want me yeah. You want to go through some of the questions now, or you want me to do it later and then I get back to you later? Let’s just do it now because I think is this good? At least you can get some going to start the momentum. And then the the onboarding, the only thing is that the onboarding is pretty key as well because you’ll just see okay, so the support team will actually see that it you’re part of the actual on the inside because they, it’s not connected, but let me just share my screen here.

Okay. Cloud application. All right.

All right. I guess even one piece of clarity as I’m pulling this up here so you’re doing it as a C corp and then this may be something I have to bring to the cfa, so you’re doing it as a C corp. But we are, you are, this is a fund for, and you already have all the you already have all the, I remember we discussed the hurdle rates and all these different things in terms of the fees, so because it’s one company it may be structured a bit differently than we usually do it because we usually do it where it’s a limited partnership and then a general partner is getting the performance fees. Yeah. Because you’re saying like, you know what, let’s structure it how you like it.

I’ll go with the flow and I’ll deal with, I’ll deal with the tax stuff on the back app. That’s okay. Oh, okay. If that’s gonna cause a headache, I’ll do it the way how you do it, and then we’ll call it in day. Okay. And we’re happy to customize it, but let me just pull this up here.

Okay. Now it’s gonna, it’s gonna take me about four days to structure that company and get all the e i n numbers and everything else like that. Got it. So then, okay, so then that’s pretty l c, right? Yeah. Or is there C Corp rather? It’ll be the l c it’ll be the llc, which is a limited liability company on this end.

Okay. Got it. So then just to clarify one more time but did you not say you’re doing C Corp? Because I would much prefer to do a C corp. Yeah. Practically, because it, the C corp withholds everything in the company itself. That doesn’t impact any of the owners. So for example, let’s say that we get sued, right?

For whatever reason US is an extremely litigious society. The C corp keeps everything within the C Corp. The L C. Actually, you’re tying all of your LLCs together through a legal suit. So if I have an LLC outside of this llc, that could get wrapped up into the court proceedings as well too. Oh, I get it.

Because it flows through to your personal, it attaches all of the LLCs that you have underneath your personal name. Okay. So you’re more, you’re bringing a web of LLCs to any potential litigation and then that’s what we’re trying to keep separate. Yeah. Okay. So what I was saying with the C corp, I can have LLCs owning the C corp.

So for example we could still separate the general partner and the limited partners within their LLCs as owners of the C corp. Yeah. Because the C Corp is, prevents it from going into the LLC level and that you just wanna have that prevention. Ok, that makes sense. Correct. So just for liability sake, and I have a couple of, I’m a registered agent as well for companies and foreign partnership.

So like everything else, I didn’t want those to be hindered. Oops. You just muted yourself.

Yeah. Okay. You just muted that last sentence there. Oh yeah. I just wanted not to get those legal claims tied up underneath the LLC status. Okay. Makes sense. Yeah, cuz raising capital you never know, like five years later it’s a lot of, it’s a you never know who you’re gonna find.

So it is just best to just honestly prepare for the worst and hope for the best. And then yeah, sector. So in our sector because it took me a long time to get set up we now had to separate our personal wealth and trust and everything else so that, that could never be attached. So we’re it and you have to do those things primarily because anybody has a slip and fall on property or whatever, it drags all of the asset holders owners in court.

And this way it separates a lot of the litigation away from you because technically speaking, once it bypasses the insurance liability, there’s nothing to get. It’s crazy. So then so then I’m just seeing the raise, what is the term of this one? Because I’m trying to think about like how long the term is and then how to. How do that play out if after this one fund, are they looking to, are you looking to do a sec, like fund two? Yeah, we’re gonna do a couple of different funds.

So as I get the clients in, we’ll end up doing a couple of different funds. Yeah. Depending on what their requirements are. But this particular fund is for medical mergers and acquisition. Got it. Okay. So let’s, so we have nine minutes before my next one but before we, one, one thing before we start to is I can take some time out.

It’s every Friday, between two and three. Okay. I can just lock that down for the next four weeks here, just so we can get, okay. Rolling. And then we can be more flexible. But I’ll lock this time down and then and then let’s get the process rolling. So what would be the name of the, so if it were to be a limited partnership, what would be the name I haven’t decided yet.

So I have to check the the State of Florida registrar to see if the name is available. Got it. But we’d probably come up with something very simple. I’ll see if we can call it medical m and a. Okay. Medical M and A L C.

Yeah. Cuz it goes right to the purpose of what it’s for. And a byproduct of that. We can also say medical m and a mergers and acquisition, but the purpose can also be for real estate development as well. So after so after, so when would you consider that name change? Which no.

I’m saying the purpose of the fund Yeah. Can be for the medical m and a, but a lot of times sometimes the medical requires a real estate component as well too. Oh, fair enough to attach, yeah. So we probably just wanna mention those two things in the interim. But the overall strategy for what we’re dealing with is this money is not to be touched or depleted in any way.

This, the money that we are raising is so that we can actually go into partnership with a bigger private equity that’s coming with all of the money. E Exactly. Exactly. And what we intend to do with this money is even though, and you can help me, guide me with this, we probably wanted to contact an insurance company and place the money in the insurance company so that we can have great insurances on the money itself.

Nice. I have because we’re doing a broker dealer, like a Canadian version of a broker dealer. So there was this insurance I don’t know if the brokers are, would be useful, but I got some really good rates and then they deal with America a lot. But you are looking for direct relationships or would the insurance brokers be relevant for that?

I probably would need a direct relationship, but it can go through a broker, which means they get a commission cut for whatever they send up to the insurance company. Okay, got it. So I, so if you have a partner in that space and wanna share fees I’m down with that. Yep. I mean they I don’t have the insurance license.

I wouldn’t get anything out of it, but he gave me my insurance actually this is just what I know, so I’ll just make that introduction today, okay. Okay. Awesome. All last comments is some people they do, you don’t have to do this, but some people they say I was just looking at other other programs and funds.

Some people just happen to say benefit of the fund or asset class of the fund one. Like for example, you’re saying real estate and medical m and a fund one or something. Some people just add fund one at the end or fund at the end. Yeah, we can add fund one at that.

Yeah. Just giving you some ideas. And it’s, you say it’s based in Florida, correct? Yeah, these corporations would be based in Florida. Okay. Okay. Ooh, next person is trying to join. Okay, so then the amount of units, like some people, I think a good minimum investment amounts in your market may be a hundred thousand.

That’s just what I’m, because we’ve seen that to funds that we’ve closed either it’s between 50,000 to a hundred thousand. Okay. Sometimes we just priced, we, we have one unit equal a hundred thousand. So what are your thoughts on something like that? Okay. At one unit equals a hundred tar a hundred thousand.

You’re getting good results with that. Yeah. What, that’s what would close with. Yeah. Okay. I mean let’s start off with that and see where we go. But I think cuz I’m thinking if we can target 400 doctors at about 50 k a pop, that’ll still take us to 20 million. Yeah. And what it’ll be is we’ll constantly raise capital in that space for larger and larger ac acquisitions.

So the goal is as long as we get to, let’s say we get to 5 million, we still can leverage. The funds, even whilst they’re sitting in the insurance company in order to entice the other guys to bring the money. I think if we start out with maybe 50,000 a pop Yeah. Most doctors would be receptive to that.

And if they were to get two allotments, then that’s fine as well too. Exactly. So yeah, we can do, because we’ve seen, the smallest one we’ve seen, unless it’s been unless it’s a Reg A is 50,000, and obviously people can invest whatever they like. But let’s try 50,000 and they offered said 20 million, right?

Yeah. 20 million. We would like to start there. 400 doctors at 50 k a pop will get us there. Exactly. So then 50 K you can probably do mental math faster than I do times something equals 20 million. So just divide this out.

So 400 units. Yep.

Okay. And then there’s, in the ppm there’s this section for the dates for marketing purposes, we just see it’s honestly a month out and we see people move it around a lot. But just put it a month out. So then states of the general partner where is the, how can we, how can do this one?

The general partner would be in the state of Florida. Florida as well. Okay. Uhhuh. Alright, so this may be so I see that the next person is is call in. Yeah they’re in the wait radio room. But basically I think the next part for the next caller we can do we can start looking at the pre return on equity i r and all these numbers just as the targets.

And I remember that you’re really on the last call. You’re really prepared with that. Yeah. It’ll be pretty much a in terms of a return, we’re looking at anywhere from nine to 14% return. Okay. And then, then it’s the discussion of is that the return on equity?

Like how much Yeah, that’s the return on, that’s the return on equity. However, they will have a 30% stake in the business. Ah, yeah. Cuz sometimes they don’t, sometimes and sometimes they, they don’t even have any stake in the business. They’ll just have proper Yeah. No, yeah. Everything we do, they’re gonna be a part of and get additional advantages.

And one of those additional advantages is once we acquire the business as well as the practice, the real estate component, the depreciation. Yeah. We’re passing that down to our our investors. Okay. Got it. Yeah, and it’s almost for marketing purposes, it’s almost not even on the front end, we can do this and we can look at a change in again, because it almost is not even a limited partnership in a sense, because the main benefit, because I was wondering it earlier was I was like is that really generous to the investors?

But then it is because you are giving them a stake, whereas the limited partnerships, they don’t even get stake. So what they’re losing sometimes profit share or gaining and equity like in the actual ownership because just get profit share. So I think that’s important to highlight. Yeah. Yeah. So this is part of their legacy play too, because the money just keeps rolling in and we just constantly get bigger and bigger every year.

Yeah. And then la last question before this before I wrap up quickly, is if you could remind me again, cuz I had a ton of calls today, so forgive me from repeating myself, but what was the remind me again on the term of the deal, how long this this fund is the, this fund will be for we would like to have the fund for about 20 years.

20. Okay. So return 20 years. So this okay. No good. So that, that’ll factor into the to the calculations as well. So what I’ll do, I’ll just save this submission. Okay. Yeah. Then next week we can just finish off the rest, we can start doing the drafts. Okay. And then it takes us after this form is submitted, and usually we say that’s the two week period.

But really we’ll try to get it done in the shorter timeframe. And then and then the idea is, we’ll do some screen shares where, we do some screen shares. I, we move your mouth around, get you signed in with the after the introductions, get you signed in with the outreach.

Cause we usually do there’s a lot of LinkedIn that we do as well oh, beautiful. Oh yeah, no, it’s fun. And I like the way that you actually have this mindset with the funnels.com thing because it just makes everything faster. Cause I saw go high level installed on your website before before this call, so it’s on the record.

Yeah, no, that was that was it was an expensive check to send over, but it was a necessary check to send over primarily because I like the support that they help implement relatively right away. So in 90 days we should have those funnels ready, and all I need to do is generate marketing the marketing dollars in order to bring that, in order to close the deals.

What we’re p how we’re positioning ourselves is nobody’s doing what we’re doing. Meaning we’re bringing the businesses here, we’re representing the business as agent and we’re raising capital for them at the very same time. Nice. That’s beautiful. And go ahead. But that’s a very high ticket item.

So for that item, with everything that’s involved, there are a couple of moving parts, but for that item, I have to charge something like a hundred to 150 K something somewhere in that range. We haven’t really worked out the details yet. They’re gonna do a marketing pricing analysis on it for me and then get back to me.

But it should be, at minimum, it should be a hundred thousand dollars package. Yeah. It’s investment banking. You’re basically getting some form of investment banking. And then there are other investment banks that we can also discuss as well, there’s some that are fraudulent actually, that are actually properly registered and are fraudulent.

There’s some that aren’t, and then many of them charging in around that range. Totally. Okay, cool. So it’s a really fun it’s a weird world, but it’s a lot of interesting players in this game. But listen, nice, but nice to connect. Nice to meet you. I look forward to, I seriously look forward to working with you.

And then I’ll just hop on the next one. I’ve been talking all day, and then Friday we just, we’ll just slot in 2:00 PM on Friday. We’ll finish the, okay. Friday is good. E exactly. Finish the form, finish the drafts and then we’ll get this thing going in the right direction. All right. All right.

Sounds good. Me too. Cheers. All right, doctor. All right. Cheers. Have a good weekend. See ya. You too, man. You too. Cheers. Bye. Gimme one second. Lemme get my squared away here. All right. No worries. Matt, how’s it going? It’s going well. It’s going very well. Thank you. Can you Yes, I can. Yeah. Thanks for the the patience. We just got a white label private equity firm is selling to doctors. Doing white label was a bit of an interesting onboarding call.

But here I am ready to get this thing going. Fair enough to know. I kept you pretty late one time, the first time around, so I can, I, it’s only fair, no worries. So then, okay. So yeah, this call, yeah, what we try to do, I think I have an hour even. Yeah. We just try to, for this one, we’re just gonna try to see if we can finish the the draft documents for you.

So that, yeah. So that you’ll be able to accept in a credit investors. I think, and I think once we get that done then, or at least drafted, then then 90% of the work will be done. It may be some people that would need to redline it. Either from or something, but then you’ll be able to start doing the outreach and seriously he starts doing the selling.

But before I do it, how’s everything going? And cause I think you joined, I think it was a week and a half. So how’s everything going? So far, so good. We’ve had two preliminary calls already with some of the I guess the support email sent out. A couple emails and I got some stuff scheduled next week.

So far so good. I got a lot more clarity now on what I actually wanna do. I think as far more and more specifically but so far, so good. I’m still going through all the videos and really just taking the I’ll call it downtime before really getting after it to educate myself and get all my back office type stuff like my domains and everything situated to make sure everything’s not nice and shiny and looking good basically to really get after it.

Yeah, no, makes a lot of sense. So then the I think there was one comment I was gonna make. So then on the, just curious, on the domain side and on the online presence side how far have you, how far have you gone down that rabbit hole in terms of not far. Not far. I got my separate entity created or we’ll have separate, I have What I want to call my overall company now for the actual fund the freely capital group, which is just after a my grandfather was from Italy, so freely is where the area he came from.

So he is a driving force for a lot of kind of what I wanna do, or he passed away last year, unfortunately, but, oh, the driving force for a lot of why I wanna take this kind of, to the next level as far as my business in total. I guess that makes any sense. I got all that squared away, the website I’m just using Squarespace for now, just so I can customize things how I want to.

So li little by little, I’m chipping away at it. So not too deep into it, but I got some direction on where I’m going with it at least. Okay. Yeah. The reason I ask is cuz somebody just paid, I think we have different things that you can take or leave just different pieces because everybody’s different.

We had somebody who used resume share. We had somebody who used who paid there was funnels.com. He worked with them to use the same provider that we use, we used go high level. And that takes care of the calendar booking, the text automation, email automation, the landing page, the and what else here?

And then also the portal. Like an email communications for after the investors invest. So we like that one. That one is a hundred bucks a month for all that. And then we just have a template Oh, wow. That I would send. But even if you already have Squarespace set up different pieces can fit in different ways.

But before I get into that rabbit hole, just know that that there are a lot of people we work with that they wanna set up websites and then they haven’t done anything, just another tool or another referral that we have there. Cool. Cool. Just fyi. All right, so let’s see if we can go through the form.

So this is still the single family single family fund, right? Yeah. Yeah. I’m not opposed to I, I guess any sort of syndication right now either. It’s just, I think there’s more opportunity for more opportunity with the single family fund right now. Then trying to target multifamily.

Yeah, my, my focus right now is just the single family fund, which I know it’s a little bit more work maybe. And but I think that there’s more opportunity long term with that, if that makes any sense. It, it does. Yeah. The only folks who who I guess at the early stage seem to go into the funds are the people who either they’re doing fix and flip.

Or single family anyway. It’s only, I the, I guess the concern is more for people who, it’s mostly for people who want to go into multi-family funds or development funds. And then they have to find one syndication or one deal before they go into because it’s just more is this a lot to ask for?

But that’s good. Okay. So yeah, here are all the questions. Do you have the idea on a name that you’d like to call it? The, what I’ve settled now, I don’t have any entity created just yet. But the freely Capital group is what it’s what I have my Google domain and all that stuff, my website the domains that I have at least.

Now the DDA kind of thing I don’t have, freely Capital Group DBA is something, whatever sort of entity I can decide on, it’d probably be Delaware or Wyoming maybe. But Delaware makes most sense for two, it’s just closer to me. Yeah. You live in Delaware, right?

I, last time I checked for now, yeah. Yeah. So I’m actually, I’m in the process of having a personal residence in Pennsylvania right now, but still it’s gonna be very close to Delaware. Nice. And then, how do I spell it properly name? F R U I L I Capital Group. I’m sorry, wait, no, I’m sorry.

I spell that wrong. F R I U L i. Sorry. F R I U L I. I U F r I U L i. Okay. Correct. Got it. Yep. Okay. Ju just saying you’re probably not the best sign if you can’t spell the name of your company. Because we have to get the invest to spell it too yep. So some people they do fund one, but it’s completely optional, but it’s, some people say freely capital fund one you don’t have to, but is this another idea for okay.

Okay. And that’s just overall and I can change this, if I have to, okay. Yeah. So just for now, we’ll leave it. That’s just how I have it set up now. But and then I guess once, I’ll probably have different entities for different states and stuff like that as well. Yeah, once I get deep, deeper into that.

Cause I think that’s my structure. I’m just gonna go state by state. I’m probably thinking 50 or so doors in each state right now for my first round is what I’m thinking. Nice. Okay. So then what would, so then, based on that what would be like the offering amounts or the amount that you’d like to raise based on the I’m really shooting for the stars, but this is just based on my prior I guess experience with private equity.

So I’m starting initially I think at 20 million which I know is only the upper end, but basically that gets me to, to more or less 200 or so doors. Based on an all-in acquisition cost around 95,000. Which is still toward the upper end of where I want my acquisition cost to, to be.

Yeah. But that’s I’m overestimating. But I think 20 million is probably a good starting spot. And even if I end up lower, lower than that I can still do some damage with, five or 10 million even. But that’s what I’m shooting for. Let’s go for it. And then the last one was twenties.

Funny. The last one that I was on was 20 million as well. Ironic. It was, it is really interesting. We agreed for and by the way, dates is just an a, this is an arbitrary date that goes into ppm. And they can always be moved. So he, we agreed that, so I see people that had success. I see a hundred thousand dollars minimum investments amounts the smallest have seen as 50,000.

So he was planning to get 400 people into his fund with that like just 50 k per investment, which is really reasonable for his niche if you’re targeting he was targeting doctors who were already rich. So similar targeting, real estate investors are rich. 50,000 I think is a good number cuz then they can just buy one or two.

So I recommend that. But what are your thoughts on if we were doing 50,000. I’ve thought about that too. As far as what people I’d wanna be dealing with. So obviously my initial thoughts are less individuals with more money. Okay. However, on this same token, obviously this is my first fund, so it’s easier for me to deal with somebody who, isn’t a giant investment bank that would expect, a super tight ship, if that makes any sense.

Which is obviously my plan to run one. But at the same time it’s easier I think to, there’s more people with smaller amounts of money that wanna be passively investing. Then, somebody that’s gonna cut a check for 5 million or so, and that’s who I have to answer to. And if I I don’t wanna say this, that’s it’s six and one and a half dozen.

The other almost, I would rather work with fewer individuals, but also cause it’d be a little bit less work maybe. Yeah. But at the same time, in order to to get to that bigger number, I know I’m gonna have to sort through some more people. If that makes any sense. It’s an optimization problem that, that you’re solving.

Because cuz yeah, cuz I’ve seen it a lot where this one is for sure where if it’s too new or they’re not confident in you or something, somebody would just say, Hey, I don’t want to do your portfolio. Just tell me what deals they are. I’ll do to myself. And then that’s what we a lot, but at the same time, you don’t want to go too small. So I think a hundred thousand is reasonable because that’s what we saw. For example, AK and and a lot of these guys who are getting their deals done, that’s what they’re doing. And then sometimes they compromised by Yeah.

I think maybe the only way, maybe the only way you get less people in is if there’s a smaller raise, but then by shooting for a big raise the, like at worst case you don’t reach it, but you reach 10 million and then you have less people. That’s my line, I think, based on what you’re saying.

Okay. Yeah, that, that makes sense. I think a hundred thousand is probably fair. And there’s, if there’s anything I took from the last fund that I worked for was and some of it was gilded, but at the same time, the the guy who ran that fund said that he, his minimum investment was a million bucks.

His reasoning for that was, oh, interesting. People that have a million bucks that they just hand over. They’re not as concerned about it as somebody who’s, here’s a hundred grand, this is, 30% of my retirement or something like that. Yeah. So I see both sides of it, but I think initially starting off I wanna, can’t be choosers almost.

Even if I end up at 10 million, that’s still, between a hundred and between 90 and maybe 130 doors individually. So I still can’t be too up, too upset about that. Yeah. Yeah. Yeah. And what’s the term of this fund, by the way? Five years usual? Five, seven or 10. I think that I’m more comfortable around that, that seven year.

But I also think five years also is a good amount of time, I think as well. And I think once I get the the kinks worked out, I think and getting situated in each market five, I think is probably fair. Yeah. Got it. Cause a lot of it, a lot of what we focus on is really just getting the raise.

Just how do we send as much things out to investors as possible. That’s usually what I’m all I think about to be transparent here and Frank. But the the other thing that is really important is your ability to deliver omni investors after they invest and then to make them comfortable depending on how much demand they have.

So that’s like another. A whole nother world, but Right. And the way I thought about structuring payouts too is, and this is just ends up being a volume thing, is a a 60 40 split. Me taking 40 cash flow up until they’re paid back, which should be, I think around year three or four in a perfect world.

But and then exit through a refi but up until they’re paid back then it switches to a 50 50 split with cash flow only. So I’m taking, basically they’re, it’s not a hundred percent preferred return, obviously. So I need to pocket some cash flow, obviously. But the it’ll be 60 40 up until they’re paid back.

And this is on higher cash flow higher cash flow properties as well. Very middle market. So 60 40 up until they’re paid back, it switches to 50 50. And then I gotta play around with their whatever their interest on top of what their initial investment would be. Okay. Which I’m thinking I, if that, yeah. So not strictly cash flow. But split cash flow. And then a lender I spoke to earlier, the scale that I’m doing this on, I’m able to use commercial loan terms. The value of the portfolio is value, cuz it’s gonna be mostly section eight, so it’s gonna be 70 to 80% guaranteed rental income.

Nice. So there’s value in that. Very good. Well done. And that’s that very much depends on the tenant too. But again, that just comes down to tenant selection and fair housing laws and, there’s gotta be a mix but with 70% to 80% of guaranteed income from the federal government, there’s incredible value in that cuz it, in a way it’s, I hate to say recession proof or pandemic proof, but resistant.

So there’s, a lot of value in that. So it’d be valued almost in a multi-family scenario I guess in, in by commercial lending terms, if that makes any sense. That’s where that force sort of appreciation comes in. I’m just fake numbers here. If I’m, if my average acquisition costs is 75,000 my fake numbers again, say my average rent is 1100 a month.

From a multi-family perspective, that one unit could be worth, around a hundred grand or, one 10 or something like that. Just based on a1 per 10%. So that’s where that, that 25, 30% in increase in like appraise value comes from that with the multifamily type of valuation.

With the commercial loan terms with single family which is, and I intend on keeping a hundred percent of everything after refinance. So I wanna make that clear with everybody as well. Is I still wanna retain a hundred percent ownership after they get their money back or if I get some crazy sort of sale number or something like that.

But my, my intent would be to retain a hundred percent ownership Nice. After paying everybody back. Are those terms the best? I guess maybe there’s always something better, but are those terms the how are the terms though? Are they, are you confident that those terms are some of the best terms you can get, like on the commercial debt side?

I think that on this lar larger scale, I think I’d be able to use, not maliciously obviously, but. I can be able to use lenders against each other. Actually, I had a friend and the only reason I said, I had a friend of mine who had four or five banks that he worked with pretty religiously.

Nice. He put all of them on the same email and said, here’s my entire portfolio value of what I think it’s worth, P and l’s, everything. You guys give me the best terms. And that’s, he ended up with some, like ridiculous terms, like very cheap money. Like I think two and a half percent. Wow.

On a 30 year or something. Just absurd. But that’s what he did. He was like, there, there’s very, in the single family space you get, it’s a low hanging fruit and especially in a lot of these markets, you have anybody with a hundred, $200,000 they can get started. So the local community banks they’re used to the, some half a million, maybe million dollar loan amount.

So you have 30 houses and they’re worth, the portfolio value is, three, 4 million. That is when you can play the banks against each other with a refinance at least. So I’ve seen that done. I got three to three pretty good friends of mine, and that’s what they’ve done.

They just put banks against each other. When did they do this? What’s, cuz look at the market now. So when did he get those rates of 2%? Oh, that, that was two or three years ago. So that wouldn’t be the case now, obviously. Still, I think one, one lender I spoke to earlier today, even working through some rough numbers, they’d still probably be in the, mid sixes right now, which, yeah, still not bad.

That’s kinda what I would expect. But the there would be enough cash flow to even support that kind of rate and then still be able to service the debt as well. Got it. So that’s good. And then let me loop back to the 60 40 thing, because the only thing I don’t understand is the timeline of the 60 40 when it goes to the 50 50 based on what you said.

So when exactly is it 60 40 and when is it 50 50? So I, let’s just fake numbers. Got a 50,000 house rents for, call just a thousand bucks a month. And being technically buying these cash, right? So be without taxes and insurance, 50 months up until that $50,000 paid back at which point it would revert from the 60 40 to a 50 50 at that point.

So it’s technically the investor has their money paid back. I’ve done my due diligence to get them their initial principle back. And then so I’m taking a lesser cash flow obviously. And that’s, that would still be. And again, fake numbers so that just rough thousand dollars a month.

That’d be, 400 to me, 600 to them. So it would still be longer than that, but that’s just based on a thousand dollars rent. That’s why I was leaning a little more toward a seven year hold just to give myself more time. But then at the same time, five years is still a pretty long time.

And rents here I think are gonna continue to skyrocket just because home affordability is decreasing more and more. So there’s gonna be at least where I live locally, combined household income to get anything nice. Right now, it’s in a good area. It’s gotta be about a buck 20, buck 30.

That’s very hard for anybody to buy anything right now. The waiting list for a lot of housing authorities right now is between three and five years, depending on the county. So at that point, it’s just a simple supply and demand thing. At that point, the, there’s thousands of families that need this type of subsidized housing.

The housing authorities themselves, they can only build so many projects, if you wanna call ’em that. Yeah. But the I don’t know what the politically community they call ’em now. But the so there’s a need for private landlords to have that Create that, I wanna say better family life almost.

So rents are gonna con continue to increase. I think some of the, and I’ve been going crazy, like analyzing like county by county within fm r rents fair market rents right now off the HUD website. They’re up around 13% from last year to this year alone. Great. So I want to assume or hope that I’m on the cusp of what will be a very big the new investment class basically.

So I think between two, two, between two and two and a half percent of single family rentals in the states are owned by institutions. The other 98% are mom and pop type landlords. Comparison to multi-family, between 50 and 55% of those of any multi-family are owned by institutions. I can’t compete with a black stain right now.

No, obviously. Those are the guys that I’d be fighting for fighting with, which is why I’ve shot away from the idea of syndicating multifamily right now, because they’re okay with a seven or eight cap right now, which is still not bad. But, with some of the single family.

There’s, it’s nothing to see and you don’t really value single family through the cap rate, but just round numbers. It’s nothing to see, a 12, 13, 15 cap on a single family. So that’s really, you combine the higher return the lower acquisition costs with the high rental rate with guaranteed, I always hate to use that word, guaranteed.

But at the same time, it’s backed by the federal government card. That just is what that is. Uncle Sam, I don’t think is gonna cut section eight anytime soon. Cause you’re gonna have millions of homeless people right at that point. That’s why I’m I’m hell, Ben, on that strategy at least.

Especially I’m gonna be managing from a distance too. I wanna make sure that my money’s gonna hit that hit my bank account every month on the first. There’s my buddy who’s done this before, he so there’s three guarantees in life. You’re gonna die, you’re gonna pay taxes, and Section eight’s gonna pay you on the first of every month.

So

I like I like that. So that’s kind why I’ve I’ve formulated I say formulated. It’s not like I’m doing anything groundbreaking. It’s just this scale. Inter section eight, I think the average portfolio. Size for section eight landlords, like between five and eight units. So you can, a couple grand a month maybe for some, but the opportunity is there for 10, 20 million, initial raise there, there’s plenty of inventory out there.

It’s there to take basically. So I wanna go take it basically is what it, what it pulls down to. The biggest thing. No, thank you for sharing. That’s very what you’re saying is really important. Cause so obviously you’re doing your secondary market research because I think you’re from, to understand your perspective, you’re saying that the main opportunity is the fact that the institutions are slow to get into this sub-sector of real estate, right?

E exactly. Yeah, exactly. You can see it, right? Because when it comes to the, even from the discussion at the beginning, because the in institutions, when people start talking about multi-family, unless like about multi-family funds and certain types of funds, then people would start then the credibility has to be way up, right?

Esp, like if it was a multi-family fund, but then because it’s a single family fund that’s why it seems like it’s less of a big deal, quote unquote, because. You just have less people that are in your, that are in the neighborhood or in your sphere of influence when you, when we start doing the outreach that have seen deals that are also owned by institutions.

Hence why I’m saying that the competition may be less, and it may be easier for you to get away with things like this. And then all the people that are working with are doing fix and flip as well, kind. This is not fixed and flip, it’s still single family because it needs to be, because the institutions do less of that.

And it’s more, something where somebody who isn’t in 40 years Wall Street something where can get into it and Exactly. And it’s not as glorious as, two or 300 unit complex, either. There is a lot more legwork, it’s instead of one big transaction for two or 300 units, I gotta have two or 300 individual transactions or, smaller portfolio buys or something like that.

So it’s a lot more legwork. It’s not as glorious, but at the same time it’s a trade off almost. You’re on the multifamily side. It’s a lot more professional. The brokers are actually know what they’re doing versus just a regular real estate agent with a lot of them.

Let’s be honest, it’s a pretty low threshold for, to get a real estate license now. I have mine even, it’s not as professional. It’s a different clientele. But in a lot of these areas that I’m targeting they’re good investment areas.

The rental demand is high, and I’m not out in the sticks in the middle of nowhere. Within 25 miles of a couple major cities throughout the south and southeast and some Midwest as well. So it, it’s not as it’s not as sexy as a multifamily but there’s a lot more opportunity there.

I think for somebody like me, instead of going after the same, three, $4 million multi-family that other investors, that just seems to be the natural path of aggression is to get started in multi-family and move, or I’m sorry, get started in single family and move out of it.

That’s what I’ve done. I got a six unit in Harrisburg, Pennsylvania, and that’s what I did. I started, with the little, 10, 20, $30,000 wholesale deals or whatever in super bad areas. I was like, all right, obviously, I got a couple single family, the next natural path to progression.

Multi-family. At the time luckily I got good terms, the seller’s holding a note for me with this specific building, but at the same time I was competing with guys who just have just cold, hard cash that are also doing the same kind of thing. So it’s scaling back, but also scaling forward in a way is how I see it.

Yeah. And you just look at people, even on our side, because we’re marketing some people as well, right on, even on our stuff. So we always see, we see the same thing. It’s okay, they self invested in real, they self invests in single family, and then they jump from single family.

They don’t wanna do multi-family. They want to create an equity raise from multi-family. That’s usually, we see that progression a lot. And then there’s like a subset of them who, they go, they stay in single family to do fixed and flip or portfolio. So there was one that reached out on was it like, just yesterday that was asking, oh, do you do single family proposals?

I like, yes, we have somebody called Matt Johnson who’s trying to do that. Yeah. Yeah. So I I don’t know. I think it’s there, there’s an opportunity and I don’t, it’s, at least in the States, there’s I don’t know when it’s gonna be, but it’s, there’s the average, I use myself, for example, I’m, I just turned 30 years old.

The friends that I have that do very well for themselves, I’ve got friends of my lawyers, doctors, whatever that are making, 150, 200 grand a year, they’re making a good living. But even making what they make, it’s still very hard for them to compete with, the boomers, right?

Cause the boomers have. A couple hundred grand that they’re able to just go and, buy house cash or whatever. We have people just starting their life that need a house, but literally just can’t afford it. For whatever reason, whether stu, student loans or, hold a lot of people back too.

So the, I think there’s, over, over time it’s gonna become more and more of a renter’s nation. Statistically people are running longer. I think prior to mid two thousands. I think the average tendency for a family in their early thirties was after they got married and had a kid. I think the average tendency was 2.3 years.

Now it’s upwards in 9.6 years renting before buying a house. So I think it’s just gonna increase more and more. And at the same time people are making less and less money, cost of living skyrocketing. There’s already huge demand for subsidized housing. They’re all always has been.

But now that, that the lists are getting longer and longer. Adam my thinking basically is get to it before, Blackstone gets I think they did a crazy raise for single family. So obviously I can’t Oh, really? So I forget what the exact dollar amount was, but I think it, it was 9, 9, 9 figures maybe.

Just a very, for them small raise. A company like that, doing that, there’s a reason for it. So that’s long and short of it, that’s my, my why I’ve shied away, I think from the multifamily for now at least. And it’s easy to find single family deals in a lot of these markets right now.

It’s literally hopping on realtor.com and just making offers left and right. Especially, for realtors right now, businesses slow down and in, in a lot of these areas, being able to pull both sides of commission for some of these listing agents, it’s a notable amount of money for some of them.

It’s 6%, a $75,000 house. It’s the paycheck for probably two months for some of these people. Crazy. So they’re more, yeah. Yeah. Yeah. It is. It is. So the overarching kind of it’s, I think a perfect storm and I think it’s backed up by a lot of numbers and statistics now too.

So I don’t think it’s, I think it’s just a matter of finding investors that see that that, have some money to, to play with that don’t have the time. And this is eight years of trial and error figuring all this out. For me at least there’s, I know there’s people out there especially.

Don’t wanna get involved in real estate, but just don’t know how to, so now it’s a lot easier to be like you got a little bit of money, this is, or a lot of money, whatever it is. This is, this is the path to go down, basically. That’s the sell. It’s the, that’s why we do usually limit partnership.

Like you’re the classic it’s the classic sell, right? It’s you’re selling a dream to them. And LA last question before we move on. Just curious on this is, yeah. The reason why you decided to not do build to rent? Because build to rent seems to really popular. How come? Yeah. It’s, is it, because section eight already, you already have your you already have that the government’s saying that we’re gonna get the money, that’s why section eight is better.

So it’s a lot, I a lot of different answers to that, a material calls for construction or a chain change daily with, and generally section eight, we’ll pay you almost the same for a house that’s not brand new versus a house that is brand new. Cuz the rents are they’re set, on, they’re on the HUD website.

It’s almost, it’s like everything is there. You just gotta put it all together almost. And just in, in terms of, from a purely just. I say immediate return my, my estimating at least from the time I close on a house to the time I’m cash alone between 45 and 60 days, versus taking a year to a year and a half, probably on average to build something from the ground up.

So you get a much quicker return for a little bit smaller of a dollar amount probably. And bill to rent is, and let’s be honest too, it’s a lot more glorious to say, I’m building X, Y, and z, versus Yeah. I just bought, a $60,000 house in Muni, Indiana. Yeah.

That’s not big and sexy, but at the same time, like what’s gonna end up paying those bills a lot faster, the thing that you gotta wait a year and a half for, or the thing that I could buy, clothes on tomorrow and then next month have it be making money. Yeah. So that’s why and I initially thought about build around too, cause I get the contracting experience, but in, just in terms of a pure speed thing, it’s, it doesn’t make maybe at a later date in my life for something real big.

But just for where I’m at right now, I want that, that quicker, quicker money, it’s just a no-brainer to me. It makes sense. It’s a, it is no-brainer. This is a very, what you said is like one of the most I don’t want to, I don’t wanna praise it too much, but one of the more logical, what you said is really logical.

It’s not just, oh look at my opportunity. It’s a very logical Argument that you put forth. So I think when you’re talking, when we start talking to these investors, is very B2 p so I think that kinda logical first approach, secondary market research, first approach that’s gonna get them over the line.

It won’t really, sometimes it’s the emotions that get them over the line. They just have to see your face a lot sometimes. But but that will get them to start talking to you to begin that process. Cuz like we, we had a lot of calls with them that I sat on and then Yeah, no, a lot of ’em just need that.

Too many people talk about their opportunity. It’s about my opportunity, it’s our opportunity, but, and you’re just talking about the market and you’re talking about the logic behind it and what the economy’s doing, which I think is way better than just saying, oh, we’re we’re growing our company.

We’re doing this for our co you don’t believe how many people talking about what they’re doing for themselves anyway. Yeah. And that’s and it’s kinda, I’ve been thinking through, I think I’ve probably said last time we spoke, like I really have kind been obsessing about all this stuff because it just seems kinda like a logical opportunity basically.

Yeah. It’s and I it’s not like I’m doing anything groundbreaking, it’s, I’m taking something smaller that, a lot of, mom and pop investors are doing and just making it bigger or taking advantage of the opportunity that ex that exists for anybody really.

So it’s, not there’s some new crazy proprietary sort of knowledge that I’m put together or something like that. Taking very simple single family houses, renting them out and making, but that’s with, of course the numbers have to work, obviously, but it just comes down to, very simple numbers.

It’s not like you have this big multi-family complex that you need to analyze with onsite management and this and that. You gotta pay people salaries and have on staff or on staff maintenance and all this sort of stuff. My, my intent is to hire like my own property manager at some point, but for now, just using third party management, it’s 10, 10% is what it’s gonna be and then a certain amount of dollars for maintenance calls and stuff like that.

But that, taking that to third party management with, what’s in the scatter site portfolio again, it’s just, I’m not doing anything crazy. It’s there’s plenty of people to do it, but with the proper money behind it, obviously it it’s what might take some personal lifetime, Clint do it a couple years basically.

Yeah. So yeah. We’ll tell you this. It’s and I guess we have to get moving on this form but tell you this, another thing too that you mentioned is the So then the secondary market research, and then a lot of what we focus on is the primary market research of us just talking to what the people, I guess the only, I guess the only thing is cuz sometimes there’s a a time delay between the secondary market research and then what’s live like today and the, in like this day.

So then sometimes too, it’s we’re just gonna validate the hypothesis of the secondary market research to say, Hey this is the primary market research investor. This investor from the raises.com list said this or this one from LinkedIn said this. So then that’s a primary market research.

So I think once you get them to actually align then you can get this, then it’ll be it’ll start getting momentum exploding. But then it’s, I think it’s just a matter of making sure that the secondary market research that you research and then what the investors are saying like the same data that we’re talking to them on the phone, is it’s like completely aligned and then they believe it, then it’s okay, then you have like product market fit, yep. Yeah. I gotcha. Yep. Cool. So then, okay, so then we have $50,000 per, is it $50,000 or is it a hundred thousand dollars? We agreed to a hundred thousand dollars. So I a hundred? Yeah. I think, cause I somebody, yeah, I’m just thinking like the, I don’t know, it’s just stupid. I don’t know if you’ve ever seen like that meme that’s the $500 client.

Says gives you this, you know what I’m talking about? I live through it. I live through that, so I completely, and I’ve seen all those means yep. Yep. So that’s my thinking behind that. Yeah, no, I’ve definitely I definitely understand. Okay. Okay. A hundred thousand times something equals 20 million.

So then I just wanna get the amount of units, or 200

GP states not decided on Delaware versus Wyoming. It’ll probably end up in Delaware. Okay. Just cuz I, it’s just close to me. It’ll be, I’m here now, but it’ll end be close to me. Sure. So then there’s this whole preference thing would you have one? We recommend one, but usually it’s, yep.

That’s what I’m, so lemme see. Middle return need. Can you dive into a little bit more kind of what that would mean, I guess for both me and investors then at that point I know what a preferred return is, but it’s usually between 6% and 10%. So basically I guess this would go back to my 60 40 kind of idea, so what that says is, I think I would ideally with a preferred term, knock my portion down to 10, 10% then is my understanding that. The way I understand and there’s a cfa, so always, like the CFA is really the guy with books at the numbers. But the way I see it, it’s the GP wouldn’t have even gets, wouldn’t even gets his his pre his pro his profit share his performance fee until that threshold is hit.

So then that’s the way, like I was taught what it is, yeah, so I make sure we’re thinking the same thing. So and that’s 60 40. I’m not tied to it obviously, but I would, I think probably seven. I know 70 30 is usually common with the multi-family, so I would wanna start at 60 40 and then if I gotta knock down to 70 30, I think it probably at least to keep me I say above water in the meantime just so I can, fab my pockets as well at the same time.

Okay. And then you, so then I guess what’s because there are different ways of doing it we know that there was one. Let me pull up this one. This one closed. Whoops. Aggressive outreach spells aggressive of one G. That’s right. It’s Friday and almost four o’clock. I would probably do the same thing.

This is the person who oh, almost four. This is the person who, he closed it, but he just did it like this where he did this pre 8% per year. Okay. And then he structured the profit share like this, where he says that if the i r is less than 15, less than equal to 15 profit share, is this more than 15 than profit share?

We this. So then I was just wondering if you had any, kinda, any hurdles for like the better the performance? Cause I know you’re doing it based on after you’re able to give the back the principle, but I was wondering if you had something like this where it’s oh, after this I, oh, okay.

Yeah. I don’t know exactly what, and this is more of a there’s actually one thing I have on my list that I just didn’t get to as far as what that number would look like for an I R R. But I think that I think numerically, if I can, I’m over time just on a five year hold.

I don’t think that 15% i r would be out of the ordinary. I just, I would’ve to play around with the numbers a little bit more, but I think that something like that would probably be fair. I think especially if I wanna retain ownership too, that’s more long term for me.

Yeah. So I think, yeah I would probably mirror something like that for now. This is a very boring deal. Yeah. This is a very boring conserv. These investments are really boring. This is a very low risk type of deal. And honestly, that, that’s kind what, how I want to structure everything initially and the re I would much rather structure something boring and say, this is gonna be real safe.

Okay. And then just blow everybody’s socks off. And then at that point, I think everybody’s much more inclined to continue to reinvest then at that point. I agree. So then, let’s just say

greater than or equal to 15% i r than this finish. Yeah. What if it’s less? So then if it’s less, then do you want to have one for if it’s less than this? It should, yeah. Just in case. I don’t know exactly what that exact amount would be. Now I have a rough outline of. And I decided I didn’t have time to get too deep into it yet.

As far as what the I’ll have to follow up with that exactly. Just so I get a better grasp on what I think would actually be possible just based on the numbers. I got a rough idea of an average rent amount of around 1100 just cash flow wise. So if my average acquisition cost is between 75 and 80 a commercial loan terms at 1100 a month, that would basically bring the value of the property up to the portfolio from each individual asset from about 75,000, about a hundred thousand more or less.

That’s like a 25% increase in value there. I’m just spitballing here, but yeah, no worries. Good. Yeah. But yeah I’ll have to follow up with that and we’ll have to come up with, I think, something a little more clear when I have clearest thoughts with that. Yeah.

And you only need to rack your brain too hard because we have a few CFAs that they can do some so if you have an existing model, we have some people that can rework one or Oh, duh. Yeah. Okay. I, okay. Yeah. Duh. I forgot about that already. Okay. So I guess it’d probably be best to link with one of them first and then I guess see what based on my modeling.

To see what would be in the, within the realm of possibility then? Y Yeah because usually we go through this form and then these questions 90, like honestly, most of the time these are the questions that we really don’t know. Then we go back to the, to David.

We’re just assigning David to doit. He’s one of the, he’s in New Jersey actually. And then he would let’s make a model and then where you can tweak it and then recommend certain things, or you could, and then you can send him yours and then he can make it his feedback. He’s more of a, he’s a corporate guy, but then he did all of our he did all of our funds.

And then we have another one in Vancouver. He joins the Monday calls, and then he’s more of the business acquisition guy. He buy, he bought some businesses in Vancouver. So he has more of that business acquisition side of it. But he can talk to you or book a call to you to kinda go deeper into the numbers.

I’m just more like high level in compliance. Yeah. Gotcha. Gotcha. Cool. Alrighty. So then I’m gonna assume, so then this we’ll get this one. So this one’s tbd yeah, return tbd, return on equity. So I’m gonna assume all these are all these things. Tb d, return on equity, i r yeah. Yep. For now. Yep. Yep.

And that’s my I meant to get to that today or within the last couple days, but then I got sidetracked with everything else going on, my back office type stuff and identifying basically. Counties that have lowest acquisition costs with the highest rent rates, basically. No. Okay. Got it.

Okay. So then management fee, 2%. Is that, do you see 2% more commonly than 1%? Yeah. Way more. Yeah. 1% fine. There’s nothing wrong with 1% if you think that you need it, but then these either two or one? No, two, two normal. I’ll take 2%. Definitely. Good. All right. Annual return of units. So this one, and we’ll leave this one for above as well for the model.

Minimum purchase. Yeah. This is redundant. This is a hundred. Yep. Minimum unit amount obviously is one. Is it? Yeah. One unit is, yeah, of course. One unit for hundred. Yeah. Yeah. So I’m assuming you’re not finger registered, right? No. Okay. GP name, general partner name. So that would be, I guess whatever you mind.

I don’t wanna use my individual, I wouldn’t use my individual name and use whatever entity I end up creating then, right? Yeah. Yeah. Yeah, this is the other side of it, the LLC or C corp or whatever you want to use to get paid from your management fees. Okay, gotcha. I’ll u I just got one, my, my main holding company right now, it’s just M EJ Holdings and that, but that’s a Pennsylvania limited liability company.

But for now, that’s just, that’s what I have set up. Okay. L C? Yes. Okay, so then, this is just temporary, then you’re gonna switch into a Delaware one, or are you gonna use one for the actual gp? Lemme think, you know what, I’ll probably end up even I guess that’s gonna end up being an attorney question, I think with how I end up structuring it.

Yeah. And have an entity within an entity basically. Cause this particular company has some age to it, which is good. I’ve had this filed since 2016. But then at the same time it makes sense to start fresh. I’ll just end up creating a new entity. So I just gotta check. So whatever this state’s website has that I can just create a new one.

So that’ll be TBD two. Got it. Okay. Any other directors or are you the main principal in this? Nope, that’ll be the head honcho. It’s nice when you can get there is an advantage to having a hundred percents control, right? Oh. Yeah. Don’t deal with any politics. Okay. We have a section where we do pass deal number one, two, and three.

These are just examples of PA because we use like past eight, not in this case, there are no syndications in this case. But any past, investments you made or something where you can point back to, to say, to show investors, say, oh, here’s this I R from this building. Yeah I could use my six unit.

That one was for, let me see, I got my numbers actually with that one. So my initial purchase price was 342,000. And, hold on, I will find. All right, so 3 42 purchase 80 rehab stabilized value at an eight cap was eight 12 more or less. I doubled my money on that one almost. And now there’s a certain degree of luck with that.

But so my all-in cost was 3, 3 42 plus a, my all-in cost was 4 22 with my new value at eight 12 or eight twelve five. But what you call it eight 12. And you, that’s all you sold before, right? That I got an appraisal. I didn’t sell it. I still own a mountain. Okay last one just single family, boring, single family.

All in costs was 1 0 3. And there was a little bit of rehab with that one, and I just bought it super cheap. All in cost is 1 0 3. My appraisal value is 1 97.

Third one, and this I just bought in the right place. Purchase price, 75,000. This was in South Philadelphia held by this I bought back in 2016, but a recent appraisal for within the last year, actually, almost exactly a year ago to date. It was 2 45. 2 45. Yeah. Did you do any so for all three of these, you did rehab and Valley ad all three of these.

So the deal two and three. Yes. Actually not deal two. Yes. That ended up being a full gut, which I didn’t intend on doing, but I did. Deal three, I just bought in the right area and the area just exploded. Deal one, that one was a combination of some very light value add with just an increase in rents.

Okay. And that the rehab on that was literally just some paint and some floors in a couple units. But that one, the I bought that one then a negative D S C R. And Four, seven appreciation. Pretty high on that one. Yeah. And you know what, I’m just gonna say value add because I wouldn’t undersell what you did.

Like I know that you acknowledge your role of luck, but because we’re selling we want to really and honestly I say luck, I just try to, I try to stay humble with a lot of this stuff too. But I did analyze that deal left and right. I think before I wrote up an loi, I think I went back and forth for two weeks deciding on if I even wanted to write right up.

So there, there’s a significant amount due diligence too. It, but so when I say luck, it’s just I try to not puff my chest too much. But then that’s how it is. Ironically, that’s probably how the luck comes from your, from being careful because if you’re there are some people they speak to in their fifties, sixties, they say that they almost got wiped out from commodities.

And it’s just the it’s the arrogance that gets people sometimes. Yeah. Yeah. Alright, so I’m actually running up on time. So then where are we at? Let me just see where everything is at. Yeah, it looks like we’re, I do that every time. I don’t shut my mouth. I’m sorry. We can always go back on email for some of the things.

And then they’re also, we’re always we started doing, we started having it so that people can book 1 0 1 calls. We didn’t do that before. So then we can always do this or we can email what we got to just go back and forth to finish it. Either or. But as soon as it’s done, then we can finish all the, insert everything into the ppms, have people just review it, and then you’ll be ready.

Okay. Gotcha. Yeah so I’m thinking for next steps there are two things. One, for next steps I’ll assign David to David’s probably overwhelmed, but I’ll try get Matter to do his to get a model where you can adjust all these numbers based on, a simple 60 40 for an lp, G P so sign nets, and then via email, you’ll get an example model that you can adjust to your liking. So that’s the next step. And then after that, then I’ll also send an email on the remaining items so that we can reply back and finish them mainly. But mainly it’s track record, which is this is just more about you as an individual rather than the deal.

It’s Okay. Saying, okay. Yeah I I did due diligence. It’s like me saying like for me personally, for example, it’s oh I tracked investors for a syndication in Toronto that raised this much. And then for me, for the track record, I would say, oh, I ran a business to scaled it to seven figures.

Or, oh, I have four employees or something like that, that you can say, just for general to show them that you’re a general Competence and just in general. Yeah. Yeah. And cause some people are there, they put their logos of like different places that they work, companies they work for Barclays and all this.

And then, oh yeah, I can do that too. I can talk about myself. That’s one thing I can do. Yeah, no, good. And then last thing is we’ll just paste the rest of these here, and then if you have any questions, just reply via email or we can go on another call and finish this. And then after that, then I’ll send it over for them to to get it all drafted for the pitch deck and PPM and all that good stuff.

All that stuff. Okay, cool. Beautiful. That works, man. I appreciate it. Big time. Thank you. We’ll talk soon. Have a good weekend. All right. All right, you too now too. Thank you very much. Cheers. See you.

Hello, Sachin. Hi Natu. How are you? Good. How’s it going? Yes, everything is good. Good. Yeah I’m just on a marathon today. Today’s my support marathon. So this is oh, wow. I’ve been doing this all day. It’s fun. That’s I’m getting used to it. So first of all, yeah, I’d like to look at fix the Civil thing so that you’re able to get with them and move on with them.

But first of all, before continue, how is everything going and how are the introduction, how is everything going? Yes. Yes. That was very helpful. I reached out to CVO again and I have a meeting with your sales rep this Monday. Good. Fantastic. Yeah. Yeah. And then I just talked to the UK Fund today.

Yes. And UK Fund Vice. Yes. Was it was Fund, right? Yeah, they’re called fund. That’s Kevin Fund. I think it’s, yeah. Fundis. Kevin. I spoke to him and they can do 20 million debt on real estate, and he said, yeah, you have to put 25% down and then they can fund the 75% like a bank loan. Okay. But they do the volume.

So I said 20 million. I don’t have like deals worth 20 million right now. So he said, yeah, at least 10 million worth of deals you have to have for us to start. Okay. So I have to find deal worth 10 million interest rate. Makes sense. Seven to six to 7%, he said interest. 30 years amortization. So that makes sense.

That’s the regular, lending rate from the bank. Yeah. But yeah, but this is more like I don’t have to go to bank. I can manage 25% down. That’s not a big deal. So now I have to find a deal worth like. 12 to 13 million, so 3 million down and they can lend 10 million. So that’s what I need to do now, at least.

Yeah. Would they take a portfolio? They wouldn’t take a portfolio of deals? No. What do you mean? The portfolio deals? They wouldn’t just say like they wouldn’t just say 10 gas stations. They do that. That’s what he said. Why don’t you bring a portfolio? Ok. I don’t wanna do portfolio because my strategy is I don’t buy a buildup property.

I buy a rundown property. Oh, okay. So to find 10 rundown properties is hard to find. Yeah. Portfolio deals is normally for reeds or well-established people who just want the rental income. Everything is done. Yeah. It’s different strategies. So for me, portfolio deals are waste for me. So I need to run down deals.

I have some of my own property, so I ask them if I can use my own property, refinance them through you. So your goal is to deploy 10 million. So he say, yeah, you can bring your own property. So my properties are worth seven, 7 million. I just need to find another 7 million worth of properties because 14 million minus 4 million of 25% would, the match will work that.

So I have to find three more properties who want to sell. So I’ll start working on, Okay, perfect. I wish it was five. Yeah, I’m sorry. I wish it was like less than 10 million. That would’ve made it so easy for me to start. Yeah. But that’s fine. Yeah, that’s fine. I’m not complaining. Yeah.

We start somewhere. Okay. So then yeah, how about some of the other, so then the civil thing is in the work. How about the other things? Is there anything, any other lenders outside of Kevin that we guys so no. So you introduced me to the four. One was UK fund, one was Cyber one was Lending Capital.

I have to talk to them. Frank they don’t do, he said one of the lender is interested for business loans, so he asked me to just fill out the form. The Kevin the Frank from Lending Capital. Yeah. And that’s it. And the money, the Paul from Money Market I had the meeting scheduled 12 o’clock, then three o’clock, I think he’s too busy.

He went to New York, some family office. So I will reach out to him again to schedule another meeting. So these are the four companies introduce. So let us see. Okay. One UK Fund makes sense for real estate, like for portfolio deal. But still my goal of if I can land or I can get the money for buying businesses or land, that’s another thing.

These are parallel things, but I will still look for that. Yeah. Civil may be the, maybe civil is the best one, but it’s just that civil’s really short term. But they may be the, they may be really good for that and may be, maybe it’s them. I think there’s also, there’s a few, there’s several more.

There’s also I don’t, we didn’t even introduce you to Camilla and these guys, so we have about two more we can get you introduced to as well. Tony part, you emailed to deliver Toronto that what’s his name that Toronto? Oh yeah. He knows me. He’s in Atlanta. He knows me very well, oh, that was funny. Yeah, it was funny. Yeah, he just approached, I don’t even know how we yeah, he was working on a he wanted to do a hundred million. So we drafted the documents and then and then to go to the next step I think we just put it on a shelf and then he said, I just want to do it for my app instead of buying it through a fund.

So he’s doing a venture capital deal, and you probably know more than him, more than me, obviously, but no, he’s an interesting guy. And then he’s doing what a, a real estate or a business in venture capital. More like a business. It’s like an app, like a mobile app, because he wants to broker the gas stations and then he just wants to make an app for people to Post our gas stations on the iOS app.

So he wants to raise money for his for his Android app and iOS app. It’s a bit different, we help you. That’s totally different. To raise money for venture capitalist is totally different thing. You have to have a proof of concept. How would you scale it? It’s different though.

Completely different. We’ll just say that, hey, use the past revenues that you made as a broker and then say that as the app. But u usually, we can help ’em, but then yeah, usually we do more like real estate’s businesses, things like that. But then we’ll still help him because he wants to do that.

Yes. Venture capital is totally different. You guys are more like connecting to private equity guys or family offices are of fund Exactly. With existing cash flow or assets. Yes. Yeah. Yeah. Interesting. I was surprised the is here. Very funny. Yeah, very funny. Yeah. Okay, so the other question, so I understand the lending.

So then what about the the second thing you wanted to do, the fund for the, there was a lending fund for the businesses. Yeah. So then would you like Yes. So what we can do, we can make an equity fund for that as well, right? So Yes. Yeah. We can take the time right now and draft it up.

Yeah. The last time when you were making that for one of my property, you created a uk The market is uk. The market is us. So I was going through it again. Yeah. Oh, okay. Yeah, that’s a problem. Yeah, we need to fix it. Let me just open, see where everything was at first of all to see where

so CVO is not long term, it’s short term. What is it term like, is it one year alone, two years longer, or how does that work? Yeah they’re initially they’re this is just based on, so we have somebody in he’s an Atlanta as well. His name is Chamara. And so we sent him to cvo and then they said that for his deals they would do max, I think it was six months because of the economy.

Is it because of the economy? They can do longer than that, but then it’s because of the economy and then the, they’re saying the bank collapsed the economy. They want to just do it no more than six months or less. That was,

I see six months is too short. Yeah, unfortunately. But they give you like, they, they leverage your money. If you invest with them, then they leverage it, right? Oh yeah. If I put so, but for six months only, so that’s very short term loans. Yeah those are the loans. So then that is what they need you to do to, they need you to bring back the to lend out in six months.

So they say that you’re supposed to be the ones lending out in six months or less. So that, that’s their, that’s what they said. So if I lend to someone, I have to make sure that the money’s back in six months. It’s a short-term lending. I believe so, yes. That’s why I think they want, I would love to talk.

You never know you have to start somewhere. But are there other companies similar to cbo? I like their concept and this is what I want to be a lender too, but someone where I can give at least one to two year at least. Normally it’s private equity is also five years. They say five years balloon and then you refinance through someone else.

So that’s, five years is a very decent time to, finance and then get the money back. Yeah, five years is pretty, pretty recent. So then Camilla had somebody, so the next introduction is Camille. And we’ll ask her because really the idea was Frank was supposed to have one and Camille is supposed to have another one.

But sometimes Frank has like a lot of different people that he is using. He’s using I believe dozens of people. It depends on which one that Frank sends to you and Camille. But the quick answer is we’ll introduce Camille and then I’ll personally ask Camille to see if she knows any as well and ask Frank to I’ll re if lending can be done, I’ll really appreciate that will help me a lot.

I’m willing to put my own money too, like leverage. One is to, one to start, one is to five and eight over the time, it’s a process. I understand that. But that is where if you do it right, This is what private equity does. They lend money to businesses and take 10% equity stake and then add on the interest and they make their money.

This is on a smaller level, I want to do something similar in gas station, which I understand. Yeah, no, makes sense. That’s what we had a doctor that was on this call a few calls ago, and then that’s exactly what he’s doing. He’s raising money to get it leveraged. But let me get, so let me just look at your submission.

Sorry, bear with me George Form.

So did you fill it out yourself? No. Last time on Monday you were helping me. Oh, I remember. Yes. To create the real estate one for one property only, but that’s totally different. Let’s create a fund. Okay. Yeah. I would rather create a fund to leverage against you. That would make a lot of sense.

Okay. I’m just looking at the submission we made. Okay. I’m seeing it. Internal. I’ll share my screen shortly. Data room set up data room data. Seven submissions,

statute. Okay. Yeah. May 8th. Yeah, May 8th. We did this. Oh, I see. Yeah, there wasn’t that much. Yeah, let’s do it right now and get it going.

Members.

So internally use only.

Okay.

I already have a lot of your information. Yeah. That’s my email. Yeah.

Okay. So United States? Yes. Okay.

Okay. Alright. So name what would you like to call it? There is make it prime rental. Okay.

L p States, but I haven’t created any. This is just for now, right? Oh yeah. No, of course. Yeah. We can it’s everything except the actual entity. And then, And when it’s time to do it, we can just create the entity. Okay. And where would you like, like in the future, where would you like to incorporate it?

George Delaware. Oh, George. George. Yeah. You the right way is deliver. Of course. I understand. Yeah. I prefer Delaware. Yeah, that’s right. Way. Yeah. So then what’s the raise amounts? And this is fund for what? Like buying properties with a down payment? Yeah, because so usually people use the sorry, just excuse me.

My door of this office. Go open. This one second. Lemme go and close it.

All right. Yeah. The wind the wind opened my door. Yes. Yeah. To answer the question. Yeah. People like, let’s say you want to use the money to pay for the down payments of many gas stations. This is what this fund is for. But the challenge is if I, let’s say on a 10 million deal, yeah. I need $2 million down.

Yeah. If I use 2 million of people money and I give them the equity, I just make 20%. What is the point? You mean what, sorry? If we create a fund and I use 2 million of people’s money. Let’s say a simple deal of a million dollar I 20% down, I use $200,000. I raised $200,000 through this fund.

Once I raised $200,000 and 80, 80 800,000 is the money is coming from either a bank or fund. Yeah. So now how much equity I have to give to these people. That’s what, that was my question last time. And there was someone who proposed, I should give them like 80% equity or a hundred percent equity because the, it’s a loan.

So if I’m giving them 80% equity, then, bringing, putting 20%, 25% down is not a problem for me. I don’t want to give 80% equity because they’re million dollar property gonna be 2 million or that 10 million. What I’m borrowing, like the property is gonna be 20 million. So if I give hundred percent equity to the people to raise 2 million, I did not make any money.

What is the point of working? Yeah. So good question. There is one way where the last call is on Matt Johnson. He’s doing it from, by refining like, He’s refinancing the people outs. So he, he just says after the term, he pays the investors and then he gets control of the deals a hundred percent. That’s how he’s doing it.

He’s just saying after, can we just give fixed, can we give just fixed interest to the people? Okay, 12% or 14% interest or 15% interest, that’s it. And then put a lien for the second lien on the property rather than giving them equities stay well, and b, wait, before I answer that question, there was also something else.

This is a little bit different than the this is different than this, than the last call, because that one was for one deal at a time. Remember? It was for the business acquisition and it was for share. Oh, okay. Remember? Yeah. And remember. Yeah, because before I was saying that the limited partnership it’s they’re you’re giving up the profits, but then they’re not getting the assets.

So they’re not getting your assets. They’re just getting the profits that comes from the assets. So then that’s why I like limited partnership, because they’re not getting assets, especially for multiple deals. So I think you’re good. The only thing is that you have to give up some cash flow in the profit, some profit. Okay. Of that down payment. But my how cash flow, I’m gonna lease these businesses. So rather than doing the profit, doesn’t it, isn’t it better to give them fixed rate of return on the investment? Because to show them the profit, I have to do the books and sit with each, and then show all the books.

And it’s a lot of paperwork. When you’re giving them fixed interest, there is no headache. This is what take it. Because when you’re doing the profits, people say, oh, you are stealing money, you’re doing that. It’s a pain. It’s a pain. And no one will be never satisfied. People are, oh, this thing costs $5,000.

Why you spend $7,000? You say, no, the quality was good. I want the better cooler or better refrigerator. Or I spend money on lighting and doing the extra something and they say, oh, this is a waste. When you make partners, then they are so many questions. And to satisfy everyone, people with no experience will be challenging my things, and then it’s hard because what I’m doing out of experience, it’ll never work out. I think what you’re saying is really important, but I think it’s the something to be, to consider the, if they’re taking shares and then they’re a general partner, then it’s more a headache. It’s more risk one. Or if the investor has a big check or they’re, if they’re a private equity investor I don’t wanna distract the conversation, but like bond capital and all these companies Yeah.

That they invest 1 million and these ones are headaches because they want to control everything. Yes. But then if you’re targeting like doctors, or you’re targeting lawyers or people like that. Have extra money, and then they work a job, they have extra money, they work nine to five, or they’re, oh, yeah, you’re right.

Then they just show the books, whatever I show them, and then I got it. It’s easier. Okay. Because you always I got it. There’s somebody called Abdiel. He’s the smartest, he’s one of the smartest people in funds that I know. He’s a client. So he has two funds. He has a hundred million RegD and then 75 million Reg.

A very smart guy, very nice guy. And then we can also introduce you. He’ll be happy to talk to you as well. And then he said, what’s ragged? His name is Abdiel. Abdiel Lewis. Oh, you said hundred million Ragged. What is D? Oh, reg D. Well reg is actually what we’re gonna do for you, because that is the rule that lets you talk to a credit investors.

It’s in America with the s e c it’s the cheapest way to talk to a credit investors that I, that we know of is regularly should be five six. It allows you to raise the Oh, I see. I understand. Okay. Yeah. But yeah, to answer your question, when I was talking to Abdiel, who did his fund he said that it’s a lot of it, it’s about the, it’s about the internal rate return.

All the numbers will cover the I R, the rate of return the cash and cash return. The return on equity is about the return and less about the assets underneath. But it is important to disclose what you’re doing. Underneath. And if somebody comes to bother you, then they would potentially ask for it.

But then what I’m saying is that to reduce the chance of them doing that, let them be like a doctor or a lawyer or somebody that’s just a professional that’s busy, or maybe somebody like you who’s also doing stuff in a different sector and wants to invest. And then they just, they don’t really care about the details.

They don’t know about the details. And then they’re not a big investor that invests more than $200,000. That’s one way to avoid getting people that will be too busy body. And then you just tell ’em the returns and then that’s it. You just, and then they ask for more information. You just give the basic cash position.

Got it. And the basic, and then I understand now. Yeah. So how did he created a hundred million fund? Yeah, he, yeah, this was like two, this was like three years ago, like when we just launched. He was one of the first clients. And then we just helped him on his executive summary. And then we didn’t have the capabilities we have now.

We just helped him on his executive summary and then did some outreach for him. Did some outreach for him. We helped him. What is he doing? Is he in the real estate? Yeah. Yeah, he’s in I’ll show you his website. It’s arch Capital.

So what he do he manage funds or he do real estate. He real estate funds. Let me see here. So he has two. So one, so then this one is let me show you the actual, let me just show you the deal. But one is for, yeah, I’ll just show you commercial mixed use and multifamily. Okay. 18% target yield.

Yeah. What is the meaning of 18% per year? I think it’s, I think it’s internal rate of return. And then I just have to check this i r right. Formula. Yeah. That looks interest. Very rative if you can do 18%. But what does it mean? Yeah, I think it’s the, let me just see annual because I’m really, cuz that’s why I get the CFA on cuz sometimes I forget some of these things.

So lemme see. Is it yearly or is it annually? Annual. So I think it’s annual. I think it’s, so how he gives 18% return after the end of five years, he give them 18% or how does he give them 18% or after five years he refinanced and then he gives it the money back to this looks it’s every year you, it’s 18% internal rate of return.

But in targeted yields. See my problem, my only problem, I don’t like this word because I don’t know if this means that’s targeted. That’s targeted, that’s not the guaranteed return. Exactly. Yeah, exactly. But then people shouldn’t, in general, I think it’s risky for people to target something big and then to go under it.

So he has to be Yeah. He has to be, that has to be attainable. If not, people are gonna be disappointed with you and be, and start asking for like lawsuits and all this. But anyway, here’s his other one. This one is for smaller investors.

Okay. Multi and single family. Okay,

I see. Yeah. Okay. Now I understand. Yeah. So with this funds, he was able to raise a hundred million dollars. That’s a lot of money to raise. Oh, no, he, I don’t think he finished raising it. Like we just got, we I think he committed 12 million of it. He, I don’t think he raised the entire amount. Okay.

He just has like around 12 million committed, and he is still working on it. Wow. Okay. I see. Yeah he did it. He did 40. He and his business partner did 40 deals. They’re really good. Okay. So yeah, you need to know what you’re doing, right? Yeah. Understand. Exactly. But in for you, what will be a good amount to start with, to start raising here?

What does that mean? Good amount to buy. And this is a fund that I will use for down payment, or this is to buy the whole property For down payment. For down payment. Yeah. And then I will go to the, a bigger lender, like fund wise to refinance to, to buy. Get the 80% Exactly. And give them the return.

Yeah, I can do that. That makes sense. Understood. Yes. So what should be the amount? Like I wouldn’t go too crazy. I’ll just start, I’ll like, I’ll do maybe between five and 10. I don’t go too I just start small to see what’s working, and then once it’s working, then I’ll do another one later. That’s what I’ll do.

So we have to put like how much money we want to raise also here. Yeah. So once we raise this fund, I have to invest in real estate or I can use this fund to buy businesses as well. That’s my second question. Good question. You can use it to invest. I, the answer is you can really, we can do whatever we say we’re gonna do in whatever we want.

But what usually gets best results is if we focus on the thing that you want to focus on and then the thing that you know best, which is the businesses and the gas stations. Yes. So then we can just do this for the bus, for the gas station businesses, which is what I recommend. Yes. Cause I think that’s what you know the most when you talk to, you’ll be able to sell them because you know the most about it.

So in, in that’s what I’m coming in gas station. There are two things. One is just to buy business and one is. To buy properties. So we should put properties and business both, or we should just use one keyword, which is only business. Yeah. Good. Good question. That’s my question. It’s a, yeah, because I think then we have to find out if we want to keep the real estate attached or not.

I think we should keep the real estate attached and then just try to say, because it’ll be more expensive and then we can raise, we can say we want to raise more than we think we need to raise in business also, I think if I can raise in business, I would love to raise in business because it’s easy to buy business and then I can give them high return and then it’s oh, if I need to raise before, because when you buy business, let’s say a real estate property is 2 million.

Yeah. And I put 400,000 down, and then 1.6 million will be financed through a bank or through a bigger lender, like with a portfolio deal or whatever. But if I have to buy a business, I can buy the business for $500,000. Yeah. And then so would you be able to get returns are more in business, oh, sorry, don’t interrupt.

What’s that? So return cash flow is more in business, in real estate, cash flow is like 8%, eight cap, 10 cap, 12 cap. If it’s a very good deal. But business cash flow is more. Or shall we keep it open? I can use this fund either for a down payment for the property or for the business? What do you suggest?

Yeah. I think w I’m gonna address the first I’m gonna address the first comment because would you need, so what type of lender would you get if it was only businesses? If it is only businesses? Yeah. What type of lenders? What type of lenders? Lenders. Like I’m talking to Frank, I told him I want to buy businesses or this the WiiU what was the name?

Not WiiU sibo. I’m sorry. SIBO is the lender for the businesses. Oh, it’s true. And then you use that lender? Yeah. Okay. Yeah. That’s why I said five years to Amma amortize it and pay them off in five years. Yeah. Okay. Here’s what I suggest. So I think we, I think just for now like for to be practical, we can add in the real estate and the businesses.

Just for now because I’m just looking at the I’m just looking at the raise size. And then if, and if we make a decision later on, that’s the lenders that we’re getting for the businesses are better then. We remove the real estate and then we just do business later. So yeah, cuz I think we, we start with the real estate and the business attached.

And then if we get lenders that are better for the business alone, then we just remove the real estate and just do the, that’s just what I think for now, or just create for business and see, and then we can create a second one for you. Separate them out, I think then no one is confused.

Yeah, we can do that too. Business returns will be different than the real estate returns. And these are two different things. So let’s make two different one. Let’s do this one as a business only. Let’s do it, make it simple. Yeah, I agree. So whenever we’re confused, we just go make it more simple.

That’s whenever, that’s usually the, yeah. So yeah. Create a fund for buying businesses. So the dollar amount you are saying is like 10 to 20,000.

You have more experience, whatever you say, I’ll go with you. It depends on the on the, so let’s say, I think one thing we should start, let’s look at how many businesses we want to acquire. So then how many business wanna acquire minimum? I would, to start, I would need 2 million. Like even I have commit committed capital of $2 million for me to put an effort.

Okay. Because if it is, I’m able to raise two, three, $400,000, I can just buy one gas station. Yeah. So that’s then what would I do after using that money? So 2 million means at least I can buy four businesses. Four or five businesses and then return it and then create another fund of two or 3 million.

It’s smaller, but it’s just starting somewhere. I think this is very achievable. Very achievable. We can do this for sure. Let’s see, did they, that’s 20 million I guess. Whoops. See I’m so used to doing 20 million. I did 20,000,002 times in a row. Okay. So dates is arbitrary and we can change it, but I just set a date and then we can remove it later.

The minimum, what was, what did we say is the minimum? So we have to decide a minimum investments amounts. I think a hundred thousand is fine. Or a minimum investment amounts unit price. It’s 2 million. We are living, yeah, 2 million raises. So this is like the minimum somebody can invest. I do either, usually I do either or 50,000 or a hundred thousand.

It just depends on how many investors you want to have there. So yeah, I don’t hear good. My, my question is how long it takes to raise money like that? Yeah, it could take this one could take around in around six months. Oh, wow. So let’s say if I’m able to raise $500,000, Can I use that 500 or until I get 2 million, I cannot use start, start working on that capital.

You can’t. So you can’t. It’s based on whatever we write in the ppm. So I think it, it’s based on like l like let’s look at the goal of the fund. The goal of the fund is to buy the businesses and then to give them the money. So then it’s the mi So in this case, I think it’s the minimum amounts of money that you need to buy your first business.

So then what is that? Probably $500,000, right? Yes. So then I’d say that means that really the minimum is really $500,000. Cuz that’s a minimum. You need to start doing your business plan. That’s the minimum for you to if you don’t, then the fund will keep, then keep raising in the fund.

I see. That’s what I would do. Yeah. So let’s do five 50,000. So unit amounts. How many units is this? So 50,000 times something will give you 2,000,040 units. 14 investors. Yeah. States, Delaware. Oh yeah. General partner. So then we have to have a general partner. So then this is the money. This is the company that this is your company, right?

That you get the profits from the limited partnership. So then do you have an l C in Delaware or an LLC that’s you want to use for this? No, I don’t have anything right now. Okay. Because there are two companies we need to do for the fund, there’s a limited partner and then there’s a general partner, which is an L C or something.

So we just letting you know, it’s just a second company that needs to be created. Can I, so it’s the same person, can be LP and the gp, they’re two different, they’re two different people. They’re two different entities. The limited partnership is completely different in general partnership.

And then that’s the the general partner, you’re, that’s the thing that is going to go to buy the you’re taking the investors money and buying the thing, getting the loans. That’s the general partner. And then that’s what you’re doing with that. And then investors are just sending the money.

And then the limited partner is just for them to get the money from the from the investments that’s all that’s there for the general partner is doing all the work. So I can be the limited partner and the general partner. I can be both two different corporations. You could choose to invest.

Yeah. But then the LPs, just for the investments, you could choose to do that as well. Absolutely. So the investors will be general partners? No, limited partners. Yeah. They’ll be limited partners because they’re limited in the liability of the business. Which is why it’s something that you want, because you don’t want them to be to bother you too much.

It’s all the real estate deals that they say that I’m a passive investor, passive this passive investment. It’s because they’re limited partners. They’re, they have limited liability. So they’re just getting their income and then they don’t have anything to do via like the details and all that.

So I am the general partner and then I see. So what will be the return to these people, to general partners? Exactly what we’re gonna discuss here. I got it. I understand it now. Okay, let’s try it. So it’s, yeah. So there, there’re different ways of doing it, but and then this is when we will get the financial guide to to do it.

But you can split, we can split it. Some people they split it 70 30, like the last call was on they said that if the RRR

don’t be too overwhelmed or anything, but they said if the IRR is above 15%, then they’ll give the investor 60% profit and then they take 40% profit and they say, oh, if it’s less than 15% i r, then you know, you can change it. You can say that, that, oh, I’ll take lemme do a new example for you.

Sorry, just one second.

Okay. So then

So we can do something like this for you. This is very common. Some people, they say if the i r is this, then we do this split finish The general partner, I am general partner, I will take 70% and they will take 30. Oh, website. Yeah. No one will. Yeah. I mix this up there. Thank you. Yeah, 70, okay. So something like that.

Let me see. Yeah, I understand. Yeah. Yeah. 75, 30, right? Yeah. And then one more thing is that they said so then the preference,

I see some people they do between six and 10. So if you make above this percent then you get your, then you get your profit share. If you don’t make over this percent 10, you don’t. So it’s to, the purpose of it is to make investors feel comfortable. Minimum percent return. Sure. Because I will not make any money.

Yeah. Okay. So that’s the, it’s the same thing as the hurdle. Read. Same thing. Return on equity. So is this a five year? So usually we do five years, but would you like to do that for five years? Get them in there? Yes. Okay. Yes. How to pay them in five years? That’s the question. How to pay them.

Pay them back in five years. Grade A I didn’t hear it. How to pay them back in. Is it like amortized or It’s like after five year it’s a balloon payment that will be paid to the investors. Oh. Usually for usually it’s not I have to check on the, like I have to get ’em to make the model to confirm it, but but usually it’s accumulated.

It’s not like a balloon usually. It’s not a balloon. The only balloons if they happen is usually if they when you sell the business. Yeah, exactly. If there’s a disposition or sold so it gets sold or some sort of refi. I got it. And then otherwise I don’t think there is. Okay. Yeah. Target return on equity, usually it’s two per, like two times is usually what people say, but then we can always check, make a model for you and confirm it, but in just Yes, now we can.

Yeah. Target returns in five years. What is target return on, in what is and what timeframe the money gonna double. This is the target return. Yeah. The term, so then if the term is five years, then we’re saying that in five years we’re gonna double the money. You put $1 in, you get $2 out in five years.

Okay. Yeah, it is double easily. Yeah. Yeah. So internal rate of return. I, to be honest, I still struggle with this myself. It’s a financial analyst that are better than this, but usually I just hit 15 for this. And then they’ll make a model and explain it. But there’s this cash and cash return, so it’s like pre-tax returns annually.

The way I understand it, so usually this is like between five and 15, we can say eight and then we can check it later. And then we already set this 78, whoops. 70 30 management fee. Usually management fee is 2%. Okay. Okay. This is return on equity, so annual return on units. Okay, so two times. So it’s 200% divided by 200%, divided by by 40.

40%. 40 percents. So let me, lemme write 40% because it’s 200% over, over five years. So then every, you’ve divided by five, it’s 40. I’m gonna have to get them to check this to make sure, but I’ll put this here for now. Minimum purchase in dollar. Yeah. This is just 50,000. So annual return is 40. It cannot be 40.

How annual return is 40? Yeah. I’m probably doing this calculation like it been a bit of a long date. But basically I’m trying to say, okay, no problem. We’ll use the finance because if I, if if annual is 48, that means two and a half year they get the money back 40, 80, and in three years there’s 120%.

So it cannot be and return has to be below 20%. So five years they double the money. Oh, yeah. Cause well, so because we have to do something times, something, times like the 200 divided by I, I’m trying to divide like the 200 over five years. So then whatever the percent has to be over a five year period to get to that 200%.

So no. That’s the part where I was trying to yeah yeah. No, if they have invested a hundred thousand, they a hundred thousand is still in the business. In five years, they have to make another hundred thousand. So the money doubles because once we sell the business, we give them hundred thousand back.

Yeah. So in two years, It’s 20% return in the year. So in five years they double that. Yeah. So let’s cuz 20. Yeah, cuz Okay, so then lemme, that’s a very good return. If they can do 20. It is a good return. Cause let me walk through this 20 times. Times, okay. So times zero point. So 20% of plus.

Yes. Uhhuh. So then what happens if you multiply this by five? What do you get? This thing is not very good at. That’s fine. Yeah. Let’s go with that then we will talk to the finance team. Oh. Oh no you’re right. No you’re right. Yeah, because look, 20% times this, times five. Yeah. It does equal double the money yeah. 20% of the same money times five. But yeah, we still need to talk to him because yeah, we still need to talk to him just to make sure. So I don’t know if you’re including the five that’s included. Okay. So minimum unit amount is one. You’re not finger registered. This is the name of the general partner.

Initially up here, the name of the company. Okay. It’s on the previous page. You said prime render. Yes. Some people they call the general partnership Prime Rentals management. Yeah. Okay. Yeah. That’s what some people do. And then you can choose to call it something like, that’s an inception.

I’ll try. You’re the only director, correct? Yes. All right. Good. All right. Just like last time, there were three deals and I’ll try to look at I’ll take it from the previous submission. Yeah. Okay. Remember there are three deals that you said you did.

Yeah. For real estate, I need a lot of money. For business, I need less money. So start with business and as is a learning firm. Yeah. Yeah, exactly. All right. Yeah. I’m just on another screen now, getting it right now. Just one second.

So question, how did you get into the into the gas station business anyway? Oh, 2000, when I moved to us, one of my friend had a gas station, so I started working in the gas station, and that’s how I got into the business. Nice. But my core business is apart from gas station, I supply. It’s called amusement games in Georgia, but it’s very similar to slot machines.

Ah, okay. So I have a big in Atlanta of slot machines. Nice. Yeah, and that’s the main business where I raced, already raced from Goldman, 50 million to build a big route of slots for m and a. Yeah. Okay. So you’re already in the slot business before? Yes. Okay. It’s like casino.

So you own the property, you control the slot. Then there is a lot of money to be built because now you control the locations too. Yeah. So the business model, it is a lot of regulation around that. All that yeah. But it is in amusement. Illinois is big to Illinois is slot in Georgia, it’s called amusement.

Every state is different. Some states have, it’s legal in truck stops, but truck stop is 50 million. So you need a lot of cash to buy. I don’t want to go to bank because you go to bank, you waste six months for the paperwork, then you cannot scale. Yeah. Once I figure out a lender who backs me up, then I want to scale.

Like scale buy. Nice. Yeah. I’m just still getting this This is some bit buried and I’m still getting all the information. We sent this to myself. So you manage everything by yourself? Not too. That’s a lot. Oh, no. I don’t like I do a lot, but I just do the supports. This is me and three other people do the supports.

Oh, I see. Yeah. So I do what do I do here? We have two salespeople. We have three support people, including me. So then me and two other people. Okay. And then we have one operations person that’s really it. And we have two, two people that just are partners and then help us find investors.

And then that’s really it. Wow. Yeah. Yeah. We’re understaffed. Yeah. It’s a lot of work. You have to talk to everyone, every presentation, every meeting, it’s a lot. I need to do well at this point in my career, I need to do it because I just need to make sure I understand this business in and outs before we start delegating.

Like in the past. Yes. Yeah. Yes. Understand everyone’s requirement. It’s a unique thing. Everyone’s requirement is so different. E exactly. Cause in the past I delegated it too early and then and then I paid for it. So now next time I, yeah. Cuz next time I delegate I’m going to make sure that I understand everything that’s going on.

So that’s you just don’t lose all the control, right? Yes. No, so I learned a lot. It’s a really it really, we really once in a lifetime type of stuff here. Okay. So I finally got your I finally got your information, so let me get this over. Okay.

Okay. So we’ll increase rents, we’ll increase this. But how is this relevant to my, this business deal? Yeah. This is my experience, basically. Yeah. It is relevant. But now this fund is only for business, not for real estate, huh. Ah yeah, you’re right. But I improved the businesses for these properties as well, although they were my properties.

I improved the businesses. So it is, we need to tweak the wordings then. Yeah, we need to, in this fund, I will take out the real estate thing and just talk of the businesses. Yeah. For example, triple net lease a property triple net lease, like the business was $40,000. Right now the business is doing $80,000 a month.

There we go. Okay, good. So that can be the experience, double the size of the business basically in one and a half year. Okay, so then took, so okay. You acquired business. Yes. So let me just go back to before and then I’ll change the words. Okay. It doesn’t even say it anyway. How much, what’s a business do you acquire it for, and then how much do you turn into that was acquired the business for I would say a hundred thousand dollars uhhuh and double the size of the business. So at present, the Goodwill is and sold it for $300,000.

I would say sold it for, I would not say sold it because it’s my own property. I bumped up the lease, so I cannot prove if I sold it, but I can show on the lease my rental increased from 5,000 to 12,000. I can show that on paper. I cannot, I cannot say I sold, but I can say increase the business because I can show this my property, increase the business from

acquired a business doing 40,000 sales. The current sales are $80,000. So the value of the business has gone up. I can say it like that. Yeah. You increased the enterprise value. Yeah.

Acquired.

A property with business and increase the, and double the size of the business. That would make more sense. A profitable Okay, sure. A profitable Acquired, acquired no, I am saying acquired a property. Property, a business with yeah. A property and a business together and double the size of the business from 40,000 to 80,000.

Then double the size of the business. Revenues, size, revenue, say same thing. Yeah. The revenues, yeah. In two years. Nice. From 40, 40,000, two 80,000. Nice. Then sold it. Okay. No, I did not sold it. Cause at least let’s not talk off. I sold it. Okay. That’s it? Yeah. Good. Alright. So then the second one and third one.

So how about this one? How can we, yeah. This one was doing 30,000 and this is also doing 75,000 right now. Okay. 30,000 and 70,000, yeah. 30 70. 75,005. Okay. This is very, this sounds almost like a business convenience store. This is a gas station. These are just inside sales, gas sales are, and in this business, the gas you can add down the gas sales were 20,000 gallons a month.

And now they’re doing 50,000 gallons a month. 20,000 in, okay. 20,000 gallons. Gallons. So what does that turn into? That’s cool. But then what is that in money, right? 60,000. 60,000, okay. $3 a gallon. So gas is over $60,000. Okay. And now it’s $150,000 per month or a year? Per month, right?

Per month. Okay. Per month. Yeah. I need to put per month, by the way. Yes.

Raised two. And then what’s the amount again? $150,000. One 50 per month. Good. All right. Per month. Per month. Per month. Per month. Please don’t put 350,000 acquisition because Okay. Yeah, that will be wrong. Okay. Acquired.

Improved revenues. Two there. Credit, property and business. Okay, good. Now then, this is a trap record, so this is just, I already have this, actually this, just one second. Yep.

There we go.

Address to be determined. Bio. Do I have the bio? Yep.

Board of directors. What did we say to that?

Only me. Only you all no. Yeah. Okay. Okay. Do you want to do you wanna put, do you want to. Put money in a limited partnership. You don’t have to, but yes or no? To raise money if I need to, then I will say yes to build that trust. Okay. But if it is not important, then I will say no. Okay. Let’s say no because yeah, let’s say no because you already, you already, I think this will be a good deal.

You already you, you know a lot about the industry amounts of directors. One term, usually the term is the length of the fund, which is five years. Address. This is to be determined because we need to incorporate it.

You could tell me or I’ll try to dig it up. What was the phone number again? Four oh four four oh four six four one seven four zero six. Okay. And actually found it as well. Yeah, email. I already have your email.

I’m just, it’s.

Yeah. There, there’s no need to own units right now. Would you be open to, I don’t think this would make sense for this, but because usually these don’t go public, but I’ll still ask the question. Would you be willing to go public one day on O C or something? Not this is too small.

This is not a very scalable, this fund is not scalable. This is, I can raise maybe after 2 million, another two, three, 4 million, maybe up to 10 million. Yeah. The real estate one. Yes. That’s a big one. Okay. I agree. Yeah. Investment manager. This is not needed. This is just extra. Yeah. Closing dates. This can always change.

I just say let’s make it somewhere in summer slows down. We could just make it two or three months out to add urgency. It’s not available. United States five.

So then sale or refi. Yes. Quarterly. So then the reports to investors after they invest quarterly. Right? Quarterly is fine. Yeah. Okay. We’re almost done. So did you have a auditor and lawyer tax advisor? Not right now. Okay. Auditors are so expensive. I don’t want to use these big corporates, they charge so much money in these auditors. You don’t? Yeah. Yeah. I have an auditor that’s so they’re so overpriced. But there’s this you can use an accountant though because when they say auditor, you don’t have to put auditor.

You can just say it is just, it’s either accountants or yeah. Yeah. And then some people they just use an accountants and then they put pwc because maybe they’ll use PWC maybe once a year, once every two years or once every five years. And then they just put it there to make it like legitimate and everything.

But then they have like more of a part-time type of person than they’ll charge 50. PWC will charge $50,000, crazy. It makes no sense. $2 million. It’s not a very big project. This is more like just to start with some cashflow to see. Yeah. Yeah. Oops. Somebody was just calling. Let me what was this?

Okay. Sorry, just one second.

Somebody’s calling me

Dates. C V D. Supportive directors? No. Yeah, I’ll do this for you, don’t worry. Okay. So because it’s a fund do you, you only have one type of asset class. It’s only, so you have four gas stations. Are they all the same type of gas station? They’re all the same type of gas station, right? All gas stations are gas stations. Okay. Yeah, because so some people they do, oh, they’ll do, different ones, but then we’re just doing one okay.

Yeah. One is gas station, one is a plaza. So it’s a plaza with the pump. So it’s, it is a gas station still, but it’s the plaza. Oh, okay. So then gas, obviously gas stations and then obviously a hundred percent. So then this is just people, like people, personal network. That’s how you find these gas stations, right?

Personal network. Okay.

And then last question is LTV and lowest ltv, it’s 75%. What is loan to value your portfolio? It’s the average. This average. LTV of all the deals in the fund. So of all the four gas stations in the ltv, like roughly,

oh, this is for Oh, my portfolio loan to value? Yeah. Like of the four gas stations that we want to acquire like they’re all 75%, right? No, we want to acquire oh. Yeah. Good question. Okay. This is the business one. This is, I’m buying the, this is different. This is not a real estate. This is buying business.

You’re buying a business and then we’re doing it with no, no percent cash. Okay. No leverage. Okay. So not a, not applicable. Yeah, this is no leverage. Yeah, this is just with this cash, that 2 million or 3 million, we can use 3 million too. I will just buy it with cash. Done. Sweet. Okay. Not applicable. All right, cool.

So let me submit this and then same thing. We’ll get it by Monday. We’ll get it like prepared and ready, and then we can start doing the whenever the time is right, we can start doing the outreach for this one so we can, okay. So Monday is a group chat. You want me to come on the group chat to talk about this or one-on-one call?

Yeah. I’d like to have you on a group chat because then I’ll have matter who’s really good at this, and then he already knows about your situation. He can talk about the numbers because we need to get the numbers for you anyway. So that’ll be a perfect time to talk to him as well. I got Okay, then I will see you group tonight, then on Monday then.

Nice. Yeah, I’ll see you. I’ll see you Monday at six. And then I’ll be here. And then we’ll get the model we’ll work again tomorrow. Ready for you over the weekend as well. Da, David works in the weekend, so we get that started. Okay. I got, thank you. Thank you. No I like working with you and I look forward to getting this to the next step though way.

And also if you can connect me to the other guy you connected me with a Frank and you said there is one more guy you can connect me with e exactly. Money for lending. Yeah. Lenor bigger. This is just to test 2 million or maybe I can do 3 million Fundies just to test. Yeah. This will be gone in like couple of months.

This 2 million with three, four deals done. Yeah, that’s fast. So yeah, Camilla, we can get you introduced, Camilla, we can do that before the day ends so we can get that going as well. Okay. Sounds good. Cool. All, all right, sir. So on, on Monday we’ll talk again and then I look forward to working with you some more, right?

Yes. I look forward to talk to you too. Cheers. Have a good weekend. Take it easy. All.