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All right, let’s getting the call started. Hello everyone, this is just Natu Myers here, and I’m with Madhur Manga part of the raises.com team, and this is the Monday q and a call. So let’s see who’s here today. So today we have Angelo DRA as well. And basically the purpose of this call is just to answer everyone’s questions with respect to raising money and structuring your fund.

And we can also talk about macroeconomics as well. So I see Angelo if you have something to sh share any question, feel free to to unmute. But if not let us know as well. Yep. Hi. Hi. I I was just joining on, I I’ll gather some questions. I just wanted to ask about the money raising process and like how the website works.

I’ve joined about a month and a half ago, but haven’t really had time to explore everything yet. But I don’t have any current questions right now, but I’ll think of them as we go along. Yeah no, wor no worries. And nice to have you because I remember, I, I definitely remember when you jumped on yeah, just at a high level.

Yeah, just the two ways is really, we do introductions, so the introductions directly with companies like like bond capital, private equity investors or ex except market dealers that would potentially help you raise the money or invest. So we do some introductions if somebody just lets us know via the support email, or they click on investor intros.

And then the second thing is we have the investor list. So then that’s the second thing. And the third thing is the appointment center. So this is a third party who we actually gets to do the outreach for somebody. So for example, we had somebody, Joshua from a development company in Ohio. We got him to get an outbound salesperson to reach out to people both on our list and on LinkedIn to generate sales appointments for people who wanna subscribe into this deal.

So that’s really it in the nutshell.

And then you also had a help us set up create our investor documents, like an investor relations type documents, et cetera. Exactly. And the way we do it, we, oh, go on. I don’t wanna interrupt. No. Go ahead. That was it. Yeah, exactly. So the way we do it we just have this little 40 question or so questionnaire and I believe we already did with Kayla, but it’s really a first draft and then when we go back and forth, then yeah, we do the pitch deck, the executive summary, the PPM draft.

But we’re in Canada, so ca for those in Canada, they don’t really need PPM most of the time. So that’s the legal paperwork to allow people to reach out to your credit investors. So we do the final draft for that before it goes to a law firm to redline. And then we do the subscription agreements.

That’s the thing that the people sign as well, the investors assign before they invest. And then financial models. So any financial models we can do as well matter here is a cfa. So he knows that morning I do. And then we just go back for via email after we finished the questionnaire to create those documents.

And then the raise will begin. Okay. Okay. Cool. Sorry sorry not to are you able to speak to some of those? And I see the names turned around. Sorry, the names thrown around I don’t know, it’s like n something document for Canadian compliance. Do you know what I’m referring to?

N something. So for Canada, I hear a few n few things with n something documents. I know natural registration database. N r d, there’s that one. Okay. There is n something. I may maybe, I’m, maybe I’m I’m misquoting. But in terms of compliance for, let’s say like a pooled fund, what are the kinds of documents that people need for that?

Sure. So the way we’re doing it, we usually tell people to do it as an issuer. Okay. Yeah. Because when you’re doing it as an issuer, it’s like somebody’s saying that I’m raising money for my tech company so that people invest in my tech company, as opposed to you saying that I want to be somebody who’s registered that needs to be registered with the Ontario Securities Commissioner, the BC Securities Commission to do it.

So the way it is we have these little rules that we scrape the rules from the Canadian whoopsy. We scrape the rules from the Canadian Register, Regis security administrators. Yeah, so the one that we do it, it’s called a credit investor exemption. This is Ontario, but it’s, it is 90, 90% the same in BC and in all the other provinces.

Yeah, this is the one that we use. And then basically we’re just saying that, Hey I want to raise money for my own deal as an issuer to a credit investors. And then you can just have a subscription agreements. The information about the deal and only sell to a credit investors, then you can structure it as a fund where you get your management fee and your performance fee.

That’s totally fine. And you just follow the rules here. And then, and I’ll send this to you in a Zoom chat. Okay. Yeah.

All right. But did I at least add some clarity or did I make it muddier? No, you definitely added clarity. I just have to sit down and look through all this stuff and actually go through the data room. I just haven’t had much time. That’s, yeah, no, no worries. So if, and when that happens, then we’re always here okay.

All cool. All right. So next, no worries. N next was di Yara,

and it’s okay if you have nothing to say either. That’s no worries. And then after we had Ernest.

Hey this is de this is Deri. Oh, okay. I yeah, I am looking for a partner. Actually, I’m not sure if you do this or if you can answer to this. I’m looking for a partner. We’re looking to raise a hundred million so we can buy businesses from people who are retiring and add technology to them and make them more comfortable.

Not sure if that’s something you can be able to help me with or not. O Okay. So if you can help me out here. What was the did we discuss this before or is this the first time we’re bringing this one to, to the table? Yeah, I’ve been in the community for a while, but I’ve just been.

Trying to figure out which angle to go with and I think this is the angle. Okay. Okay. You’re okay. So are you a legacy member in the WhatsApp groups, right? Yeah, correct. Okay, got it. By partner you mean you’re looking for an investor for the a hundred million?

No, not really. I’m looking for we call it board members, but not really board member, but like a partner who will actually help me put this thing together properly. You know what I mean? Y yeah. So like general partner? No, sure, sure. The quick way Yeah. We, what we tell people to just have a you’re just selling people on a dream.

So just have it so that you say that if you even on the little, that little WhatsApp group, you can just say in exchange for us, For you coming on a board to sit on one quarterly meeting we would give you the option to purchase the units of the fund, like the, to become an investor in the fund at a discount.

So then you’re just giving them like an option to purchase at a discount. That’s one idea. And then and then if they say no to that, then you’re just negotiating down. So then you can just say, oh, then, oh, you don’t want to, you don’t wanna have that. Oh, then we’ll give you a success fee, in exchange for coming on the board meeting and us letting us use you in the private place and memorandum in the documents in the pitch deck.

So that’s how I’d go about it. But if you’re talking about specific partners can you tell me more about the sector then I can try to see if I know anyone who’d be willing to partake. Yeah, so basically I’ve been doing the research and I’ve found out that there’s a lot of people who are retiring and who have old businesses and instead of passing them down to.

Their their offsprings or their kids they’re just basically shutting them down cuz they have no idea what to do. You know what I mean? So I’m coming in, I’m saying, Hey, why don’t we buy these things, buy these businesses, and then add technology to it, automate them somehow, and then make them more profitable.

Then we can go from there. You know what I mean? That’s basically the angle I’m going with for now. Sure. But yeah. To be honest, I haven’t done this before. I’m a marketing guy, so I’m looking more for a partner who’s really good at financials basically, and looking at deals.

So that, that would be the first step. Yeah. Yeah. Sure. What is your niche, Desiree? What are you looking at? What is the niche on the marketplace you’re looking at? Yeah, very good question. I’m more looking for manufacturing companies. Manufacturing anything. Yeah, anything manufacturing in are you in US or Canada?

I’m in Canada. Oh, okay. But I can relocate to us too. If come to that reach out to me. I’ll help you much as I can. I’m no expert on numbers. I can look at the numbers and I can say how read the p and l. I think the two and the guys are far more better than me, but I’ll help you on how to figure out certain things.

And that would be awesome. Click your email in chat. I reach out. Yeah, I can do that. Yeah. And I can provide analysis on the numbers if you’re looking for detailed analysis and Yeah, I can certainly help you with that.

Yeah, exactly. Like Matter, he purchased businesses in he purchased one business in Vancouver, so he’s actually done it albeit at a smaller scale, but he is done it he knows how it works. Exactly what I’m looking for, guys. Thank you so much. Cool. Alright I saw that Ernest you hopped on as well, right?

I think you had a question next. Yeah, just one question. I saw this one lead, they wanted proof of funds, but I didn’t think it was necessary, but I just wanted to go through the process and see what it was like. And, but I had no idea you had to do all these different reviews and then you had to upload a video.

Like what the video we supposed to upload. Oh yeah, the video. So then, because we had a ton of people from what’s his name from Sebastian, and from members, they want to prove of funds. So we do this, we do a favor in exchange because we’re saying is this a favor? Cause we’re saying, Hey, in exchange for us, saying that we will get to the, the capital and then put the exec market dealer there and all that.

Is this a quid quo? It’s something for something. So you don’t have to if you feel pressured, but it’s just a little favor for a favor. No, I just like the other reviews he had to put up and it was like we already had done something, but I haven’t done anything yet.

So like I had to say possible. Oh yeah. So what you wanna say is is just say thanks to oh, yeah, we’re working on some targets. There’s somebody called Cesar who we got a commitment for, and then he was, it was really risky. So then he just said Yeah, no thanks. Thanks to Raises the Economy.

Got a letter of commitment from people who would potentially give a proof of funds letter. That’s pretty much it. Oh, okay. Yeah. This, it was just, I don’t know why this, a guy, this guy wanted $75,000. You want a proof of funds? Just couldn’t believe it. But for 75 thousand dollars, yeah. I just I wasn’t serious but I just wanted to see how will you do it anyway?

Cause I wasn’t yeah, it’s a bit ridiculous. That’s a bit ridiculous. Yeah. Then you get, get somebody who just you just get somebody to just, to just actually do actually do I thought you meant like 40 million or something like that. No, I, it was, it’s, it was stupid though.

We can just give you a proof of funds for that and then, yeah, that’s not a problem. But the letter is more meant for people that have these 40, 50 million deals by proof of funds and needed for that. The people that I talk with, they want something for what small stuff, like 200,000 or 600,000, something like that.

Yeah, it’s been pretty much, yeah. So I just I, my apologies. I don’t really do it anyway, so yeah, 20 million, 40, maybe you can do that. Okay. Yeah. Yeah. But either way we’ll be able to, so we’ll do the typical p o f thing that from us, and then sometimes they just see the, our name and then they, that’s okay enough for some of them.

And then worst case we can get you like lit, like actual proof of funds. And then for the ones where we can’t, or we don’t have any investors, we can just use other investors or use Use the lending platforms like civil was a nice one just for the sake of getting the non-binding letter and then that’s enough.

And then if they want more than that, then I think it’s not worth it for most 90, 90% of the cases. Yes, to be honest. Yeah. Okay. That’s all the question questions. Cool. No worries. Alright, Jamara. Hey Au. How are you doing? Doing well. Couple of questions. I so the, I got the, your N P B explanation, I thought it was pretty good.

That makes sense On the numbers wise. I still working with the lady on on the Regarding to the the va? Yes. Trying to figure out that person. We, I interviewed one person. I’m going through the second and third person on next couple of days, so that way I know who’s going to be there.

One aspect I want to figure it out is should we it doesn’t have to be, since they’re in Philippines, do we need to worry about on the timing wise or do they know that too? They need to work on the US time zone? Oh no, they know that, like they, they can work, yeah, they can work all hours of the day.

That’s not a problem. Okay. Alright. Second question is regarding to the I dunno what’s happening in the marketplace is that a lot of deals right now happening on the asset base deals or there is any more opportunity for a businesses also they’re raising money wise. Yeah, so I guess a matter can probably speak to macro, but I was personally looking in I’m personally looking in Tampa for j just on the personal side for for single family.

And I noticed that there was we had a lot of people that inquired about about the build to rents. And so there’s one, there’s build to rents and then there’s just rental portfolios. Yeah. Because in general there seems to be like a big trend of more people renting because people just can’t a lot of people just not being able to afford houses.

So within the real estate, the rental needs seems to be like exploding. And then also there are a lot of like the big landlords, like BlackRock and all these, the institutions, they’re very deeply, they’re really deep into commercial real estate. But they haven’t really gone towards single family as much.

So that’s why, now they’re starting to, I think they announced recently a single family fund, so they seem to be starting to go into single family. So it looks like they’re, like single family, like institutional, single family is maybe a new trend. I’m not sure, but it just looks like there’s some people that are catching wind of that because everyone is rented and they’re a lot built around.

So maybe that’s another angle. But other than that I’ve seen a lot more m and a than real estate because people were just saying that, hey, the interest is high. So a lot of numbers that are making sense are not making sense. So a lot of markets that that made quote unquote made sense are not, so people who seem to be shifting more towards like in Canada, we have a lot of Edmonton within the states.

We have a lot of Indiana and Midwest. But those are just things I’ve seen, but matter. How about you in terms of if you notice anything in general or any fiscal policies that can affect it? Yeah, not really. I would say, The same thing that you just mentioned? Not that different in terms of, the commercial list.

We have already talked about a bunch of times that’s going bad. But the residential, I personally don’t have that much insights to, to talk about, but I do think, yeah, it is getting slower due to just the high interest rates, high inflation and low wage inflation. Yeah, that, that’s a, I would say a negative point and for the overall market, but yeah, but not many insights.

Okay. So let me ask a question. If I get a deal and there’s a seller financing part is available on that deal like assuming that maybe 20% is seller financing, that 80% is the money that I need to bring it to the table, but I can pay that thing on a certain timeframe, but if I get a little bit of more money in my hand, That will allow me to do the purchase very faster or quicker in my mind.

And how do you raise the money for that kind of a deal? Can I close the deal and raise the money later?

So what do you mean close the deal and how would you close the deal without raising the money? So there’s two ways, right? So the, it’s more like a seller financing deal, right? So the seller is the person who’s taking the note, right? Yeah. Like it’s a, like he’s keeping certain dollar figure or up to that and I can do the seller earn out a thing.

Every end of the year I can pay it off. Okay. So he’s financing the whole deal. Whole deal. Yes. Assuming it’s a hundred thousand, hundred thousand, I’ll say, I’ll keep you. I’ll still keep you 20% on the you will have it, I will have the 80% and I’ll pay 80% next five years on the lease. Right now, end of the year he will get the percentage off, I don’t know, out of eight, $800,000.

Maybe 150,000. Each year you get paid off. But I would like to raise based on that money hundred, I don’t need to have 150,000, but it’ll allow me to go for the next acquisition faster. Is there any done it or or played that game or someone asked this question? I don’t know. I’m asking.

So let me just I’ll try to understand the, yeah. Now if someone is speaking they can yeah, can you hear me? Yes. I, hello. Yeah, so I dunno how you pull that off. Raise. Except you’re not using bank financing except you’re using a private financing and they’re not going to have some kind of security on the funding.

They can do that, but they’re gonna have some kind of security on the funding. It might be tough because you’re trying to raise more or less trying to double deep. You’re trying to use the same asset to raise money. So you’re using one asset to raise money for two deals. That’s what you’re trying to do.

Am I correct? Yeah. So think about if it is you own 20%, I want 80%. I would gladly give someone for 50%. We’re not 50%, 30% of the company. I’ll own the majority of the ownership. That 30% I won’t raise it and I, the day one, I can pay the money for them or a date or certain percent I can pay for them.

I understand that, but you’re trying to raise 80%, but you’re going to give the. The seller 20%. You need to have an understanding with the seller though. And I’m not sure if you are able to get that with the bank because the charge the bank is gonna have on the asset. If you’re trying to use the same asset for another deal your next financier is gonna do a check on the asset and there’s a land on the asset already.

They’re not gonna fund it. So you have to be careful not to do that as if you have a private financier or lender that is gonna provide you that. So they might not do that kind of due diligence, but they have a good lawyer. They would definitely do that. But we are doing a transaction within France and they don’t need lawyers.

Yeah, you can pull that off. Okay. So you’re saying it’s a risk, is that what you’re saying? Yeah, that’s, yeah, that’s what I’m saying is there risk Is a risk. I’m not sure it’s gonna be easy for you to pull it off, except you’re not using institutional funds, but institutional funds, a bank, a corporate institutional kind of funding, if it’s just a private thing that you’re just doing within France, might be able to pull it off.

Yeah. Makes sense. Okay. Because I feel 30% of the operating company in my mind, yes, there’s a lien there on the company the the on the business. But it’s a safe bat. So let, lemme quickly chime. So if you’re lending, if you’re trying to raise money against what you have in the company, fine, but you’re trying to raise money against what you are hoping to have in the next five years.

That is a two different ballgame. You don’t have the asset right now. Of course you have it on paper. What if you default, right? What if you default you don’t. Probably the asset referred back to the owner. So you have hundred percent control over the asset. That’s, having 20% and you’re paying the owner over five years on the 80% doesn’t mean you have total control.

If you default, it goes back to the original owner of the asset, right? So just like you’re taking they the vendor is your bank in that case. And the vendor also might even want to have a a charge against the asset that is selling to you just in case you be default, it has something to fall back on.

So you have the bank the seller that is giving you, then you have the bank if you take money from the bank as well. So you may have to charge on the assets already, then you’re going to the third one. Does that make sense? So yeah I believe, what are they trying to say is correct me if I’m wrong there that effectively you need to have a positive equity value in that property, and that 30% that you’re talking about already has a liability against it.

So that’s not really your equity we use So effectively that’s, you are like is that what you’re trying to say? Yeah, that’s what I’m saying. Part of what I’m saying. But at the same time, even the balance the 70%. If you’re borrowing money first, they, the lender, sorry, they, the seller is a lender to you by giving you that 70% vtb.

It’s a loan and you want to have a charge on it has some kind of security just in case something happens. Okay. Then you want to take some money from the bank, so the seller might become second, but if they’re giving you hundred, they’re giving you 70%. So you don’t need any money from the bank.

So you need to come up with 30%, or you’re trying to do, use the entire hundred percent to raise additional money, give the seller some 30% and use the balance 70% to do other acquisitions. That’s what you’re trying to do. Correct? That’s right. That’s right. So it has to be a private transaction for that to really happen.

You, you’re not be able to, you not be able to pull it up with an institutional Seller of vendor. Okay, good. Interesting. Interesting. I didn’t know that part. Okay, so if I pay that 30% off for him, then I can sell that 30%. If you pay the 30% off, that’s equity, right? You it sold to who did you sell it to?

More or less. You’re selling your interest in the deal, the equity portion. Okay. I got what you mean. Okay. Another option is if, let’s say the property goes high in value, it increases and you have a net positive gain for that 80%, you might be able to do the, do that, but that’s like you have to do the whole process of refinancing, most likely.

Exactly. Get a new appraisal and all those things. Exactly. It’s like what you call what do you call it? Afs agreement for sale. Yeah. I’m coming to you, sir. I’m gonna buy your building, but I’m not gonna pay you anything. Or maybe I’ll just give you 5% now and I pay you the balance in the future.

But for that to happen, that mean for me, I need to add value to it. I need to improve the operations. I need to make sure that the no I goes off so that I can go maybe in two, three months, refinance it. So I agree with you. I’m gonna buy it for 5 million and I was able to improve the value to 6 million.

So in three years, let’s say I refinance it, that means I’m making 1 million. Then at that point you’re making money. But at this point, at the point of 0.0, you can’t do that because the seller wants to have a lean. Just in case you, you think that you’re gonna increase the value to 6 million. What if the value drops?

What if interest rate and everything, and now the value of the property is now, let’s say 4.5. You can’t refinance at that point because you’ve been losing money. Interesting. Interesting. Okay. No, there’s a good conversation. I’m learning something cuz I didn’t, I thought you can raise the money after that.

Okay, that makes sense. Okay. We, portfolio of assets can do that. If it’s just one asset might be difficult for you to pull off, but we have multiple assets I can bring together, I can have somebody that can help you with some kind of creative financing. Some guys will pull it off you, but not only single asset.

Makes sense. Makes sense. Alright, cool. Thank you. I appreciate it. Yeah, good learning. Yeah. Thanks guys. Okay, thanks. And just to close forgive me because cuz you folks were doing really well and you’re a bit ahead of me there. So just to make sure I understand the initial question was you’re, the question you were asking was it if you put 30% into the deal and then you want to raise the other 75, like the other 70 percents using what’s using debts.

You’re asking it. So yeah, if the, if I go to a seller and said, Hey I don’t think you’re doing really well, but if I take the company, I can make the company to a different level, but to show that interest. So you will have the 20% of the company, I will have 80% of the company. I’ll pay you that 80% next five year period of time.

It’s pretty much out of that. What I wanna do is I want to have the majority, the rest of the things, I want to make it as a option on a, like a, some kind of like a raise the money for that thing or someone to buy them out.

Oh, go ahead. I will have 55%, someone will have the, pretty much the seller have a 20% other, someone else have 25% that 25% can I go and raise the money? That’s what I was asking. Sorry, you actually lost me, so I think I need to I know you, you matter did well and Addie did well, but I just need to make sure I understand.

So lemme probably, I’ll write this down as well, but let’s explain it one more time to make sure I understand. So yeah let’s explain it. There’s a seller seller. There’s a seller, there’s a buyer. Yep. And seller is selling his company for hundred thousand a hundred thousand dollars just to hypothetically.

And as a buyer, I’m come back and saying, Hey, you selling 400,000? I don’t think it’s worth hundred thousand, but I can improve this company to $200,000. So because of the profit, you can, my suggestion is let’s do a seller financing and this a hundred thousand, you will own 20%. I’ll own 80%. Oh, now I see.

Okay. So you want, so you wanna do a raise based on what the company could be valued at rather than what it’s, what he wants to sell it at? Yes. So then I have the 80% of the company and I want to sell that other 25. Another 25%, and I want raise that 25% percent. I got you wrong then. So wrong.

I guess it’s important. It’s okay. It’s important for us to just some things I missed. Okay. But then how would you get that 80% of the company? Because you said I owned 80% of the company. So how would you get that 80%? So the way I got 80% is instead of I’m paying 80 K upfront, I will pay 80 k five year period of time.

Okay. It’s like a 15 K or something like that. Gave AK loan to yeah. Ah, tomorrow. Yeah. Yes. Okay. Now Chiara’s question is if he can sell, like he got eq, 80% equity, and now he wants to see if he can sell, let’s say 25 to 30% off his share to someone else to raise money for another property.

Because, and then buyer, so buyer wants to raise 20 k. Is it 20 K that the buyer wants to raise in this case, or is it Yeah, 20 K or 25 K? For me, it’s about keeping the the majority for me, but there’ll be, minority partners will be there because there’s already minority partners. A one seller, right?

He own 20%. I can add another minority partner for 25%. Okay. 25%. I don’t know what’s worth, that’s the one, first question. Second part is, in my mind, like the business we are looking at, definitely if I clean up the books, if I clean up the things, I can make it like literally 200 k profit. I can find that in there, in that company.

Okay. Company. You can do that. I can, so you can, I, so the way I understood what you’re saying before was that you’re gonna own 20% and the seller gonna onto 80%. No. It’s way, yeah. Okay. So in that case you can, if you have seller financing of, 80%, yeah. You are more or less in control, but at the same time, you, I dunno, depending on the structure, depending on the seller, you can sell more equity.

And use, dilute yourself in that, in that regard. And probably use some of that money to, to entice the seller as well so that it’s not say, okay give them something to make them, okay, yeah, we’ll get somebody else come on board. But you are letting them know that the money you are raising, extra money you’re raising is for it to improve the operations.

Even now if you are not using the entire money to improve the operations, but at least maybe give them like two K or 5k. You can use some part of that to do additional position and use some part of that to improve the operations. But I don’t think a seller would, they want to have some security, right?

And I don’t think that they wanted to raise 80 K or 70 K or whatever amount you want to raise and go use that for another acquisition. And you’re not the part to you increasing the value of that business. They don’t see it. But you have to show them what you’re doing, why you’re trying to raise that money.

Because they have to be carried along. Yeah. They still own they still own that business until you pay them off. True. Even though on the books it look like you have 80% or if you default, it goes back to them. That’s right. The key, the benefit is I’m trying to do a roll up. So Yeah. More and the companies more value goes up.

That 20% is more worth at the end, more than his 80% I’m having if I do it right. Yeah. Correct. So that’s the benefit for him. And yes. Can I default? Yes, it can happen. It’s like any other risk in my mind. I think company I think I was going through the book on one of the H V C companies, I could find 200 k easily in there, just cleaning up the books.

And I more, I talk to him, I can find 300 K because he’s paying his cousin, his mother. Nothing wrong with that. When you have a business, you can do whatever things, but when someone else wave the business, you’re gonna clean up those things. So I thought hundred K profit, I can make it 300 k just cleaning up the basic stuff.

So that’s why I was like, I think there’s equity there. It’s just he’s not willing to do it. So that’s why my question. Go ahead. Na. I don’t know, with the this, it’s a good question because I was thinking about this thing for some time because the reason I’m saying this way is especially the home services industry, people willing to sell it right out the gate.

And I don’t like to buy those things right outta the gate because I don’t have relationships on those places. I want the seller to be there for some time. That’s the catch. That catch is the 20%. So I lose, you, lose I win. You win. It’s just a same simple rule, and I think it’s a win-win situation. Because not long ago like before I joined Race, like literally last December, I talked to this guy, he’s willing to sell this H V A C company for 3 million and there’s a gap between Christmas and New Years.

First week he went out of business. I remember he making, yeah, you told me that. He told me about that. Remember that? Yeah. He was making 3 million in revenue for the last three years on the p and l. I don’t know, just the debt and everything he has, and he was, went out of business. So I was like, no, I’m conscious, right?

I take risks. I, now, that’s my nature, but I always think it should be mitigated on some way. So that’s why. Yeah, but this is good stuff. Yeah. Alright. Thank you. I appreciate it. Yeah, no, no worries. And then I think last thing just to because I think Greg and add here as well, but last thought I have in that is, instead of taking the 80 percents, the, like on day one and then paying the person in the next five years, I was thinking how, could somebody not alternatively take like chunks, like trashes of the shares instead instead of saying, okay, day one I take 80% and then I pay you in five years, could you not also just say oh, it’ll take 20 percents on On this day.

And that, and I think that’s obviously if they agree to it, I’ll take if they agree to give you their company for free, obviously I’ll take it. But I’m just saying that, maybe there’s a m ground of of okay, for this money I get this many shares, rather than it being all or nothing.

That’s right. That may be an option. Yeah. And what I can understand from this, like from the whole conversation, so so at this point in time you’re saying this company is worth hundred K and that’s how you’re dealing is, and now when you want to raise more capital for that company, it could be like selling your share or any other reason you’re saying it is worth a lot more.

And so were you able to add value in a month period? Like it is still, you can still justify this maybe in six months, maybe an year that you improved the profitability. You were able to do so many changes, or even like what Elon must did with Twitter, cut down 80% of the cost right away. And any of this, if you can justify to a new investor that, okay, this company was valued at hundred K two months back, and now I, after making all these changes, this company is valued at 50% more and you are trying to sell that.

Yeah. That means you are in profit. So effectively what you have to think is your assets, like the equity value or your personal equity value in that property has to be in, in that business, has to be more than the liabilities that you have. As long as you can justify that and how you’re able to do that.

I guess it is possible but that’s, I think the caveat and also to Natalie’s point, like if you can get, find a deal like that for sure. But a seller I’m not really sure if a seller would be okay with that. Yeah. So to you could get a deal done that you have, you can bring in a new partner, but I think the only challenge is you raising money right off the bat right now against that property or get the asset to go and do another acquisition.

It’s gonna be it’s gonna be tough for you to sell that to the, to, to the owner. We’re looking at a deal right now while we’re getting about 50% loan, Sell us note, but of course, we’re not gonna put in the balance, not gonna be entire equity. You’re gonna find somebody else that’s gonna come in with the equity, whether it’s gonna even be the bank, right?

The bank might be second on this deal because you’re getting almost 50 50%. So you might not even be able to get the bank. You might need to get a private lender or a preferred equity investor that comes in second after the bank. But everybody wants to, for that investor, your first investor that’s giving the seller seller note, want to protect his interest.

The second person, whether it’s preferred equity investor or whether it’s a bank, they want to protect their interest as well. And part of how they protect their interest is that they want to expect you to continue to have skin in the game. And that’s your equity. The moment you’re taking your equity out, they’re not even going to agree to that, that you take your equity out because that’s your skin in the game.

The moment you’re doing that. Assumed that would be the end of the transaction. That’s right. Yeah. No, I agree a hundred percent. Yeah. I thought about this part I never thought about as an angle, but the way I thought is like, it was not a bad deal. I think need to show that thing on the numbers, right?

On the, that deal, that deal only work if the seller is there. So that’s what I was thinking. Because he’s, I talked to him, he was like, I think my company was 2.5 million. I said, no, your company was like 500, 500,000. You’re way off the numbers. So when this conversation happened, then I explained to him like, there’s one way we can do this, sell financing.

You won’t sell the company. There’s a buyer there and let’s work it out. So that’s why I was thinking try to be creative as much as I can. So that’s, Thank you. Thank you ar Thank you Madoo and thank you. I appreciate it. Yeah, great. No, fantastic. And and add quick aside actually we just sent an introduction, just an off offline.

We’re talking about introductions for carwash. So that just got sent out now. We had to do it in a bit of a creative way, but just look out in your email and and I’ll address that up. Okay? Okay. Yeah, thanks. No, no worries. But let me jump to Greg cause I think Greg was here. Greg, how’s it going?

Good, good. I I got an email from David with raises. He asked me some information about some oil wells and stuff, so I sent him some stuff. He’s working on that model, so that’s good. Yeah. See how that pans out and a few other ideas. We’ll just work on that bit. But like I said, I think I’m gonna move that backer and focus on some real estate stuff.

Cause I have background sos around some ideas on that. So just do some due diligence. That’s about, it’s, I’m at nothing too much today. This afternoon. E Exactly. I got, yeah he messaged me, he was asking me whether he wanted an LP g P model. I said, yeah, sure. Just do that. And then he was asking me the same thing about the what was the thing again?

Yeah. About like, how does the sector look like his, he just needed some, like kinda guidance or something. Yeah, I think that was the email you’re referring to. And and yeah he’s plugging away. So he works at nights because he’s fractional. He works at nights, but he’s he’s one of the best corporate people I’ve seen in quite a while.

So he, he should be able to get you something really well and matter here can actually, but matter here can probably even answer some of the questions. Anyway he’s registered with the as a charter holder, but feel free to ask matter may maybe here you can answer it. I’m not sure. Yeah, no, it’s just more just, you wanted just some ideas on some numbers and stuff and it’s all kinda basic on how many wells and how many big project it is.

Like you can go small size up to multi to hundred million, which is way bigger than I ever be. But just the basics. Just start with the basics, start small and kinda go from there. So once I get it back, we’ll probably tweak it a bit and go from there. Sounds, sounds good. And then, okay. And then finally the, on the real estate did you find like your niche or your plan of your angle of attack or the real estates.

There’s two I’m tossing around here. One is look at becoming a private lender and just taking borrow some money at eight, 9%, turn around out at nine 10, take a percent or 2% spread. That was one side looks, cause it’d be an ongoing monthly positive cash flow capital for me to go into.

And the other side is building apartment buildings. Cause there’s a, through CM HC here there’s a, I select which you can get up to 90, 95% own value and 40 to 50 year ization. So it does work, especially in Emon. It does work cuz things are still affordable. So that’s one thing. And the other thing I thought of along that line is, rather than use a normal builder, is move to a modular builder where it’s built in a factory and shipped onto site and put together in pieces so it, it can shorten the timeframe about.

40% about 30% shorten timeframe. Nice. So it’s definitely an option. I think it would be a good option. Yeah. No, the C M H C, there was somebody his name was, I think he was Adrian be me somebody who he was working on that he was, the only thing is that he was, he had some contingency, he was saying that he wasn’t sure if he would get it.

Yeah. And then that affected the raise because if the raise was just like, if he got it, then the raise would’ve just been like underneath 1.5 million for his for his deal. Otherwise, yeah, it would’ve been it would go up to almost a three formulating plus phrase for the equity.

So yeah it’s almost make or break depending on on what you do. So it depends on like how certain you are. You’ll get it, cuz it can really dramatically change everything. Yeah. And C doesn’t move fast, they take forever. Yeah, it’s. It’s almost like you almost have to buy it, get the building, and either buy a building or get it built or in the process of getting it built, then apply for CMHC financing and then use that CMHC financing to refinance your original financing.

Because a lender’s not gonna, or a seller’s not gonna let you tie a property for six, eight months while you wait for cmc. No, exactly. But then for the lending side, that’s interesting. Sachin was a, he joined, he does, he buys gas stations in Atlanta. He wanted to have a hard money fund.

We sent him to civil and I think tramar here on the college are familiar with them. They’re more real, they’re really short term these days because of the whole bank collapse situation. So they got really scared and they’re very but what they do, they’re a wholesale lender. They lend and match your contribution or any equity contribution, 50 50.

If you bring 1 million, they bring in 1 million. If you bring in. 20,000, they bring in 20,000 and so on, and then they give up to eight times leverage in 300 days. If you stick to their underwriting criteria and also the loans you have to do have to be short term. So I think that could be a good just that could be some potential area.

If if you stay short term and if it’s what they’re looking for, maybe that’s another way to get access to more capital for a debt fund. Yeah, no, definitely. It just, some of the stuff I’ve seen is usually a year. So I don’t know, like depending on like the second mortgages and stuff, that’s the challenges.

But the timeline, if it’s 30 days, 60 days, but most people, when they get a second mortgage it’s usually at least six months to a year, if not longer sometimes. Yeah. Yeah. See that’s a problem. So then, so maybe it’s just a traditional you just raising money to buy like a loan from the to.

Lemme get this straight. So then this one you would raise money to get institutional loans and then you use that capital to lend it out to people on that year basis, and then you get the spread. Yeah, that’s the plan. Yeah. Yeah, it’s good. Phil, there’s Phil who has, Phil’s raising the hundred for this.

He’s in the group. He’s with a company called Maven Capital. And this is exactly what he is doing. So I would I would connect you with him just to see what he’s working on, but I like the simplicity of the debt fund. It looks really lean, keep it simple.

That’s my thinking. Keep it simple. The more complicated to get things, the more chances are it can screw up and things can go sideways if you keep it simple. And it’s, there’s always, it seems like there’s, with interest rates going up, now, people are getting squeezed, so there might be an opportunity, to make, to, mortgages are getting harder to finance, so they’ll still need mortgage financing.

So there could be an opportunity there. So what would your what would your pricing be like? What’s your interest rate? What was it gonna be like? Good question. I like to stay, eight to 12%. I don’t wanna get too higher than that, but if I can borrow money at, let’s say eight to 9%, then just add in one point for me.

I don’t want to go really too high. Cause then it gets too high risk. I’d still like to keep it reasonable. Cause then I don’t wanna hurt the borrower too much. I wanna make sure they can pay it back. Yes. I noticed a friend of mine, we just we just decided on this. So you could lend to equal one point or even two points, right?

But you could also factor in an equity kicker for yourself. So the structure is such that you lend at two point above whatever rates you got it from. Then you can say, okay you ing them more or less ing them out within a very short period of time, less, less than a year, but you get maybe 5% equity play in the deal.

So you are not just investing your time to get one point, right? You invested your time, you get that one point or at the same time, but an upside in the deal. You could get up the 5% equity play on the GP side, right? So if the GP is getting 30% of the deal, then you get 5% of the underrepresented of the gp.

I don’t know if that makes sense to you. I think so. So you’re, yes. So if the gps, let’s say at the end of it they made hundred K, you entitled to 5% of that apart from, you are number borrowing rent, 12% or 11%. You’ve got your money back, but you are in the play on the GP side for as long as that deal is still alive.

If it’s five years you are there, it’s, except you decide to sell your interest in the deal. And because, most of the private lenders, more or less they’ve done to loan sharks. This, you have people talking about 18%. Doesn’t make sense. Why are you charging people 18%? You don’t want them to.

But if you’re coming to the market and saying, okay guys if you had to go with this guy, they would’ve given you 18% or 15%. I’m saying, okay, I’m gonna lend to you at 11 or 12%. And that’s much, I’ve covered my cost, but I want to play the long game with you guys. I’m gonna get 10% on the G side or on the management side, whatever structure they’re putting together.

Alright? So that will entice most sponsors. They want to work with you because you’re not trying to cut up their head with interest rates, right? That you’re charging them and you want to play with them. You’re only charging one point or two point extra 5% equity play. I would do that every single day with any bull rider I find as they want to do this with me.

Gimme a short time for about six to 12 months and he wants. 5% of my gp and if they even 10% if they didn’t make sense, I’ll do that. And you find a lot of borrowers who gravitate towards you because they say that you’re not a shark, you’re trying to help them out. Okay. So question, you’re talking about the gp, LP structure for the gp, say I keep 5%, the other 95%, would that go to the investors or do I take 5% from the borrowers?

Let’s say they’re doing a house build or something like that. Or a house split. Okay. So the way LP GP structure works, you have a split of of the profit. It could be 80 20, it could be 70 30. Yeah. So of that deal, whatever profit is made from that deal, the GP does the, on the carry or the performance incentives, the GP is entitled to 30% or 20%, right?

Yeah. So let’s say at the end of the, at the end of the, old period of an investment, let’s say five years, and the asset is sold, the investors got all their money back, hundred percent. They did not have the profit, or let’s say million dollars. Now outta that million dollars in a PGP structure where you have 70 30 the LPs get 70% times they get on 700,000.

The GP gets 300,000. Yeah. Of that 300,000, if you participate on the GP side, you’ll get 5% of that 300,000.

Okay. Okay. So you are on the gp, you’re not, it’s not impacting the equity players, it’s not impacting the investors or, no, it’s on the gp, right? It’s on the gp. You are only partaking in their performance incentive, whatever they made at the end of the deals, whether it’s current interest, whether it’s performer, whatever I wanna call it, or they’re split profit split, that’s where you’re participating and you’re playing a long game with them.

Okay. I think I get it. And if I can jump in just to make sure I understand as well. So you’re saying, you basically, you’re saying tell me if I miss missed this, but you’re saying gets lenders as cogs basically, right?

Yeah. If you frame it that way, a lot of lenders are gonna run away. They don’t want the Yeah. If you frame it that way, a lot of lenders will don’t want that liability. And even when you put like a side agreement or a side letter or something like that where what, which says that, you only partake in the current interest, so you don’t have a shareholding in the gp.

So nobody can order you accountable for anything. There’s a loss or whatever. No, I only participate, I don’t participate in the loss. I only participate in the profit. So you are protected that way. So if anybody looks at their book, they don’t see you as a shareholder on the book, so nobody’s coming after you.

So you have a site agreement. You’re not a shareholder, but you particip in the profits. Okay. And so how does this because I remember you said that people, some people won’t make, won’t look at you as loan sharks. I guess the borrowers won’t look at you as loan sharks. How does this if the interest rate is not so crazy?

Okay, people are doing 18%, I think your loan shark, if you’re asking for 18%. Yeah. If Greg is saying a, I’m gonna lend to you at 11% and I know every other person’s learning at 15, 17, 18, so I’m even 25%. Definitely I want to work with Greg and I’m willing to give him even up to 10% of my gp, but I’m gonna protect him by giving a side letter, a side agreement that he is not a shareholder, but that participates in the upside in the current interest.

Whatever current interest got me from the deals. Yeah, it makes sense. It’s a very good idea and it’s very straightforward. It makes a lot of sense. I really agree. Because the GP even doesn’t even sound scary. You can just call your gp like maybe call it Greg debt funder or blue, whatever you want, like Blue Mountain Debt Fund or Blue Mountain Debt Management, something generic.

So that doesn’t scare the the the lenders. It makes a lot of sense. So I’m still trying to grasp the concept. So pretty much assuming someone making someone come back and said, I want to get a hundred K, and there’s a two guys doing and one 20% other one is, I don’t know, Greg is 10%, right?

I definitely go to Greg, right? I said, Greg, you’re gonna fund this thing, right? Yes, I’ll fund the a hundred K or 10% interest rate. Now how do I become the gp? That’s the part I don’t understand. Okay I’m giving you lower interest rates for me to participate in your upside. Does that make sense?

Okay. So instead of me giving you 15%, I’m giving you 12%. So I’m saving you upfront. I’m saving you 3%. Now, I’m saying on the back of that, I want 5% on your upside. I’m not saying 5% shareholding, I’m saying 5% of your upside. So if you sell the asset, you make 300,000. I want your let’s keep this very simple.

We made onk. You, I’m gonna be entitle to, not that you’re giving me, I’m entitled to the 5% because that’s the agreement. So when I was giving you the loan, I gave you seven, oh, sorry, 12%. You comfortable with? These are people at the same time, I get 5% in the offsite. So my risk, I’ve given you something upfront.

Not only risk, but it just compensate me for giving you that discount compared to what every other person is charging you in the market would’ve charged you in the market. I’m charging you 3% less and I’m be betting that on the fact that, okay, I believe in your project and I’m saying I’m gonna participate in five years.

Or whenever you have liquidity events that you understand you could have a liquidity event in two years that you sell the asset and you make money and I’m gonna be entitled to whatever profit I your profit split. I’m going to be entitled 5% of that. Ok. The borrower exact Exactly. The borrower, lender no.

The lender. No. Not. The lender is the borrower. The borrower is gp. The borrow is the gp. I’m the one coming to you. I’m the gp, I’m coming to you, I’m the gp, I’m the sponsor. I’m coming to you, Greg. I need a million dollars. And you gimme a million dollars. Instead of giving a 15%, you gimme a 12% and they’re saying, oh a, they, I’m gonna participate.

I like this deal. I want 5% of your GP carried interest or profit splits. Ok. Not 5% share. Cause that’s how you protect yourself. Okay? Yeah. As gp. As gp. You have on limited liabilities. Yeah. You don’t want to be part of that. No. That’s why you get protected by having interest only on the upside.

That’s only profit splits, higher interest performance and whatever you want, call it. Oh, okay. So you’re saying from the borrower’s perspective, they’re doing an apartment build or something. Let’s say they set up a gplp structure for their, I lend them a million dollars or half a million dollar million, let’s say, through this fund.

And then I also take 5% of their profits. Let’s say they make $2 million in profits. So I made an extra hundred grand off theirs 2 million profit, correct? That’s correct. Oh, okay. Okay. No, I see what you’re talking about now. Now makes some of the upside of the of your GP to reduce their percentage to perceived percentage.

Is that what it is? Add? Yes. More or less you’re reducing the upfront costs, correct. The percentage. So instead of me paying 15%, I’m paying just 12%. You helped me a lot with that deal. So I can easily go back and refinance and whenever there’s a liquidity event, It might be in five years, it might have been in three years.

Of course, Greg is comfortable with his 12%, but as an incentive to continue to support me through my deals, I’ve given him 5% of my upside. It’s it’s a win-win situation and you’re gonna get more clients with that. You find people that probably even give you 10 per up to 10% if you can help them through that jam.

You’re not charging them crazy and frustrated. You’re very reasonable. Everybody want to work with you and before you know you, you accumulate equity. Share in the upside of close to 20, 30%, even 50% depending on the number of clients. You might even have hundred or 200 in multiple deals depending on the number of deals that you finance.

I So if you do 10 deals, multiply the other 50 you percent potential interests, potential interest in the upside from 10 deals. Yeah. It’s 50% of a deal with, without doing any work. So God bless you. That’s it. We’re not doing any extra work. You’ve done all the work upfront, doing the due diligence, making sure that this guy have the capacity to pay you back and all that fine, you’re comfortable with them and it’s to get 5% of their upside, not 5% share with it part of their upside.

Okay. No, I thought that it’s definitely a very good idea. I like that idea. Yeah, it was good. It just takes, I think it just takes a little bit of like the types of financial models have to be built. There has to be a little bit of attention to detail. Nah. No, that’s there’s no, it’s just me, right?

It’s just saying, okay, AADE is getting aade and Greg is getting our much, say we’re getting hundred thousand, and then in five years and three years old, whenever we have a liquid event, out of that hundred thousand, we are gonna give, need to 5%. So even when you’re doing your waterfall, you, it doesn’t impact anything.

It’s whatever you make from that you’re gonna get. Oh. So if you want to do some kind of, okay, let’s see. As if you have a target for me on the GP side, my focus is not how much I make. My focus is have I achieved a target i r or a target multiple for my investors? Once I achieve that’s when I make money.

So once I do that, okay, fine. I have a target as to how much I r as a GP I want to make. I wouldn’t be doing that analysis, just analysis paralysis. You don’t need to get drugs. But that’s the whole point of the prep cuz because until the prep is hit and no one is getting, then the GPS not getting paid.

So you’re not getting paid. Yeah. Which means the borrower is not getting paid bonus, the discounts anyway. So bonus, yes. But the point is with the lender in this case has already covered cost upfront. Every other thing is just bonus. It’s just the bonus. This 5% is just bonus. Just bonus and value of money.

Cause they, so you, yeah, so you could get, you get five, that 5%. But if you look at time value of money, is it more or less equivalent what you have made or more If you have learned at 15%. But. Who cares. You made your money off, you’ve already made your money, covered everything already. You’re not making it, you’re not at the loss, you’re not doing anything.

You just say there’s an outside to participate in the outside. That’s it. Introduction. Introduction. Yeah. No it’s a nice it is a nice little bonus help there, Greg. On on different ideas for, yeah, so if you’re doing, if you’re doing that fund in you, you make extra money for yourself.

Okay.

Nice. All, all so then just to move the everything along ak I think you showed up it was a eight. And Tanya, ADI, do you have any things that we should address? I wanted to also tell you about the introduction back. Any other questions or things you wanted to. I don’t have any introduction, but I’m looking to, I’m looking for money.

I need extra one 50 K to close my deal next week.

That’s what I’m looking for right now. If you have magic, if you have any magic wand and just, happy with that. Yeah. Hey, we’ll keep on trying. So then I got around to I had some discussions. So the person we introduced, it’s called David. Okay. He’s a limited partner into a carwash.

He invests a car. That’s exactly what he does. He invests a car washes. The only thing is I mean he does America and I think he has a limiting belief that you can’t, you have to know people. The only, this is the only problem he believes. Yeah, you have to know people forever to raise the money, but he’s more on the investor side of it, and then he’s looking for more investors.

That’s the only thing. But then, He’s a limited partner that’s invested in his own deal, that’s getting more people into his own car washes. I don’t know. This was better than nothing. We can try to introduction and then I’ll wand as well, but he, no, he’s a really good connection.

He’s the only person I’ve seen that only invests in car washes. Something. He’s a good play. Yeah, I was a great player right now. Yeah. Yeah. Just, yeah, just try to, yeah, just try to you know what, so just try to take win from that angle, but then twist it in that, in, in your favor, because I don’t really care. I don’t really care. If he honestly joins raises, I promises more about try to get him to be on your list of investors, I think that’s, yeah, absolutely. Absolutely. We’re looking at some deals in the US so definitely I want to talk to him.

Good. Good. Yeah, I don’t really care if, to be honest, if you joins or not. Honestly, we have a lot of people joining, so it’s a bit it’s actually a bit overwhelming but it’s good. Okay, that’s good. So if it’s overwhelming, you can employ me. You’re really doing well in the q and a.

Maybe I should, you’re really doing well in the q and a, so I’m actually considering it. A if you’re doing the the car washes reach out to me in US side, at least on Atlanta side. I would like to have a chat with you. Oh, you’re an Atlanta, Georgia. Okay. That was fantastic. The deal we’re looking at is in Atlanta, Georgia, so definitely let’s talk, yeah.

Yes, I know the areas very well. I can give you 2 cents and also I would like to join with you on some deals if it is numbers make sense. I’m a numbers guy, so Yes. Okay. Wait, thanks. So Addie Sachin, he was on the last call. He’s an investor. He does gas stations. So unless the carwash is connected to a gas station, then he’d be interested.

He has money to invest, but he’s gas stations I don’t know. Connected to a gas station or it’s just a alone No, it’s a alone. I don’t wanna touch gas station. Ah, yes. Yeah. Now he was a gas driver, but the gas stations, the money’s in the inside. The, it’s not on the gas.

It’s in the inside. The the convenience store. Yeah, exactly. It’s and that’s exactly why I don’t wanna search it. Yeah. Yeah. Except if you can automate everything in the convenience store. Yes. But you can’t at this point. We can’t at this point. So

yeah, we have two people in Atlanta that are doing gas stations. It’s funny they’re both in Atlanta. They’re both doing gas stations, Dilip and Shamar, or sorry, Dilip and Sachin. So it is a bit of a coincidence. Yeah. Alright, so Tanya, how’s it going? Hi. I’m good. How are you? Doing well.

Things are moving. Yeah, that’s good. Yeah. I have a question about in terms of financing and funding if it’s on the business side of I’m just using this as an example because I’m interested in a condo in Miami. And it’s one of these building, it’s a new construction.

They built it last year and they’re advertising it to get five to 10,000 a month in rental income because they have a rental program or hotel, like some hotel program with Airbnb to have it set up for clients. And they told me I can use my l c, the one I have in Michigan, in Detroit, but I’d be considered a foreign buyer and be 30% instead of 20%.

I’m trying to avoid that if I was gonna do that deal, cuz I’d want it for. For 20% instead of the 30, but 20% of what? Of what? Exactly? 20%. Percent down 20. Down. Down. Okay. Yeah. But I know that I had some options through the mentor I mentioned to you that I have in Detroit that I can get some business finance.

I just, I didn’t even set up my e i n cuz I wanted to, I was considering changing it from an LLC to an lp. So I didn’t do the e I n and now I’m just like, you know what? I’ll just do the, keep it in L C and do the e i n and see what kind of financing they can give me because I told them cause they sent me to the mortgage guy.

I talked to him today. And he has options. And I said cause they’re like we’re gonna regardless, they’re gonna look at your income that you make in Canada. And I said that I also have options of financing here in I guess like with Canadian banks or even my, I have a big network of mortgage agents and I’m side, I’ve had a few companies, me to work with them, but I’m still trying to decide who I work with.

But that, that’s the thing. I’m trying to wave that around. Like in terms of buying in the us I don’t want them to wanna look at my Canadian income. I’d want them to just, but because I’m not a US citizen, so that’s why I was gonna ask about that. How do you get around that kind of stuff?

Okay, so it makes sense and thanks for the update. So yeah, I think the quick answer is it’s pretty pretty difficult unless there’s another person that has more than 10% of the business, like 10% of the if you have a, another code GP or something that you can put everything on, it’s still, people would still ask.

I don’t really think that there’s any quick way, but let me try to go through the question. Cause I was, a lot of things. So yeah, to avoid the 20% side yeah, I’m not too sure. And I think it depends on the buyer. I have several lenders and several people that work with people in Canada to help them acquire us real estates.

The terms are always worse all the time. But I can probably get you some terms that are competitive to the one that you got. So that’s one way. The second thing is, let me see. So the second thing you were asking was yeah, I don’t, this is probably a non-answer. I don’t think there’s like a solid way to not access a foreign buyer unless you do the thing where you unless you even attempt to try getting a visa and doing all that, which takes nine months and you have to put a hundred thousand dollars in your own company in America and all that.

Yeah I’m not really aware of any shortcuts or way around that unless, yeah, I know. There’s I know in, I got expect cause I went to their, one of their events before I got a message on WhatsApp of they do the e B five Green card. Yep. Yeah, they’re doing, it’s they’re having it at the rolly.

Royal York, the one downtown Toronto tomorrow. And I didn’t think I needed it. At the time I said, no, I don’t because my boyfriend’s American. But then he’s the one that passed away. No. Yeah, so I’m just, I then the whole double tax, wherever you are, if I do, if I became a US citizen that’s my only issue with it too.

I don’t know. It’s crazy. I don’t really, I don’t really want to be a American citizen if I have to file my income tax anywhere. I’m in the world. Yeah. And you still have to file if you’re also Canadian and making Canadian income. Yeah, but if you’re not in Canada, this is not tax device. But from my understanding, like we don’t have the global taxation thing the US does.

So some people No, we don’t. Yeah. So some people they just go to just us and then they’re just only paying the US tax. Or they move to, they do the Dubai thing and then they’re still just paying us. So those are some ways around that. And I’m not saying that you should go and be a US citizen or anything, but this what some people do to go around it.

Oh, okay. Yeah. Yeah. Cause I don’t like, I wanna have business in the us but as being a citizen I’m not really interested in that. Yeah, exactly. Yeah, I’m not super sure, but I know some people that, oh, you got it. What’s up buddy? You got it. Go for it. So I wanted to say, depending on the structure you’re using you don’t have to be citizen taxation.

You just need to work with a competent what is it called? Transaction advisor that includes your CPA that understands m and a transaction or real estate transactions. Want to work with the lawyer that understands cause border structure when you’re doing something in the US you probably won’t set up an llc, then you want to set up an LP structure here so it becomes like a pastor.

You don’t have to, fight tax in, in Canada and do the same thing in the us. There’s not a legal advice or tax advice or at the same time you can set up a structure where you just talk to a good financial planner and I’ve done cross border structure before might be slightly expensive.

I’ve not done it. But they’ll save you tons of money. The kind of structure they put together for you only pay tax, probably even pay less tax, right? Whether you’re in the us, whether you are in Canada, right? So it depend on the structure way of holding your assets. So we that’s the way should look at it right now, my cost to slightly more, but you have to look what’s the end game?

You want to pay as little tax as possible. So you’ve gotta try to set up a structure that protects you and your assets from paying as much tax as possible, right? At this point, you may need to you may need to find a good partner that you, okay? Okay. I’m gonna stop here. I don’t want to be quote I can find a good partner in the US and can put something together to, to protect and benefit both

that way. Okay, thank you. Yeah, no, it, to helpful answer. We introduced there’s somebody called Joshua he’s a PhD. He’s really into all this tax rule. He has so many destinations and cpa a CCPs, I think he’s a cpa, I think he’s a C F A as well. We can introduce it to him and maybe he can share some ideas on, on different, ideas to avoid the double tax problem.

Okay. That’s one thing. The second thing is that the foreign investor risk, or if you wanna buy a deal in Miami and then they’re saying that, oh, if you’re foreign, then you have to put more money down. I don’t think there’s any way like around that without getting another business partner or just, getting somebody to work for you as a financeer to help you close it.

That, that’s just, but those are just my thoughts at seven 30 on Monday. But you know what I can do, I can introduce you to Joshua, who knows more about Sachs and we sent all the the Canadians over there to discuss US tax problems. Okay. Yeah. Sounds good. Thank you. Yeah, no worries.

And then did we cover everything? That was like pretty much it I know of having a structure set up for this is just in terms of doing personal deals versus. Deals with partners, right? If they’re my own personal deals, would I have to be worrying about not being double taxed?

I wouldn’t wanna be double taxed with the deals that I have with the GP LP structure, but if it’s my own personal deals is that, would that also get the tax issue? As well as, I shouldn’t worry about that because some people told me they do. They still just put their deals in an llc even though LLCs aren’t recommended for Canadians.

I’ve read a lot about it and lawyers that have talked about it. And I’ve talked to lawyers in the past about it, so I’m aware of that, but it’s still I’m still wondering if it’s gonna even matter. In terms of what I’m trying to do, if it’s personal versus the business. I asked myself where the money is flowing.

When you say personal, if you mean Tanya as the human being. Tanya, the human being is a Canadian citizen that has to do the what, whatever the tax submissions are, these days. I have the accountant do that, so I don’t really go too deep in that. But the, the, if it’s Tanya Reid as quote unquote the legal entity, that’s not the Canadian human being then that’s probably a different discussion. And same disclaimer, not tax advice but yeah like for example, like on my side, I can just talk about what I know. So raises.com, like if the money stays in the business, then.

It, then it’s more about what’s the, what’s going on in that business. But then when, as soon as the money leaves that business, then you have this whole tax, like everyone has to worry about their own, the tax that comes to meet the individual and all the other people that work with us and everything.

So we just look at where, how is the money flowing? If you buy your own deal, is the money flowing to you as the individual who’s a Canadian citizen or is it just staying in a US entity somewhere and not touching Canada and is staying in the US bank account, the US company, and it’s not touching anything in Canada.

That those may be things to explore. Because the thing is that as soon as it comes to a Canadian bank account they can take, the CRA can take money out of your bank accounts if at any they can because the banks are ordered to obviously work with the CRA so they know everything that’s happening.

We need to talk to, at least I know two people that are fully investor, Canadian investor to invest in the US so you probably need to talk to them. A lot of individuals are investing in US deals, yeah. To set up vehicle here, Beku invest in the US that, so it’s that vehicle that pays them dividend.

They don’t need to do any double taxation. They don’t do either at all, even though is the corporate entity, whether it’s the GP or whatever. But it’s a very convoluted structure just to protect everybody, to protect investors. So you have three or four legal structure just to protect make sure that nobody’s double taxed.

So for your deal, for you to do that, your deal has to be very, I don’t know, sizable deal that, that kind of. Fees that you’re getting is sufficient and makes sense for you to invest in those kind of structure. And you’re not doing a one time, just one time deal. You are doing something that you feel like you, you continue to do.

Maybe you continue to do two deals or three deals each year, and that will reduce your cost over time because it’s spread any cost over several deals, right? But upfront is a lot of money. But if you have division now, okay, you want to get to, 50 million or 20 million, 50 million over the next five years, hundred million, something like that in that range.

I’m not saying you can’t do a 5 million deal of 5 million deal with that. You can start with that. But if it’s less than that, if it’s you’re doing like a million dollar deal, I’m not sure if it’s gonna be watered to set up all those kind of structures. So if. If you, and if you want to do your own deal, if you don’t want to do your own deal, but you just have the appetite to invest in US deals, then you can go and have substantial amount of money.

Can’t go to any of these guys. You can’t partner with them. If you’re bringing up a million dollars into a deal, you get on the GP easily and you can learn from them, that you can put on your own structure. You can leverage whatever it is that they’re currently doing right now to put in your own structure as well.

So that’s will save you some money. You do, you are not doing trial and error. They’ve done that for you. They’ve been doing that for years. So they’ve done that for years. So they’re very perfected. You know the structure. All you have to do is copy and paste, but you can’t get that inside information if you’re not on the inside.

They might give you some, can do this, can do that, but not get you, they’re not gonna give you the templates. I know what you mean.

There was one Matt here. We’re good friends. I’ll introduce you. He’s based in Ottawa, Canada. He, that’s exactly what he does. He brings Canadian investors, he gets them to invest in the US and then he has this whole big thing he’s going on. And then there are somebody else there, there are a few people that are doing this, but we will get you an introduction with because this questions is really popular these days.

Just Canadians who want to allow, like Canadians who don’t want to get their investors and themselves to be double taxed when they were raising money for us deals. So we just, we started maybe we’ll just add another module as well, because Yeah. I dunno whether you’re in touch with August or August and Eva.

Oh, them too. Yeah, they’re great. Yeah. Massine as well. Doing the same thing. Oh, nice. Yeah, so I, I know those two. I know they’re doing that. MAs actually finished put on the ground training for some of the students they were in. Where were they? They were in the us I can’t remember what states.

Oh, bridge was it ing? Yeah. Veteran. Yeah, veteran, yeah. Okay. Veteran and co. Yeah, I know who that is that, yeah, I know who that is. Yeah. Nice. They invited me to their event. I think we have an event coming up on Saturday. Okay. Okay. So yeah, so go ahead. Yeah, I’m just saying we’ll get you to, we’ll get you in touch with Joshua and Matt here.

But then even August is good, so you have to reas like, we’re really close too, but it’s been a while, but we’ll dust that up and then maybe I’ll get you with him as well. Okay. Just to see if they’re very far along. You’re not competitors or anything. Just connect with them to see how they’re structured because they have it open on our website and everything where you can just see Hey, here’s how the fund is structured.

And then you’d be able to see everything because they try to get investors for their deals so everything is open. Yeah. Cuz I do want Canadian and American, but obviously the bulk of, I’ll be mostly dealing with Americans, but I’d like to deal with Canadians on us still as well. Nice. Sounds good. Yes. Oh, all I think this has been a pretty, pretty productive call. I think before we close quickly, I’d recommend Eddie, if you probably can get in touch with Greg. You’re in the same area. And Greg is looking to do real estates Yeah, I was gonna ask, I was gonna actually ask I had him talking about CM e c Greg.

Let’s jump on a call. I just I put my contact details there, my email address. Let’s open a call at some point for my lap. Yeah, like 20 units just fell on my in Edmonton. I’m looking at it. If I find a partner, I’ll probably consider it, but right now I just wanna close on my powers first.

Yeah, sure. Yeah, I live in Edmonton here. I’ve investing here for a number of years, fantastic. I know City quite here my Oh, okay. Contact information in the chat here. Reach out to me there. Okay, sounds good. Thanks. Okay, good. Yeah, I’ll leave the call open for just one minute to let you guys get the contact info, so no worries.

Okay. Got it. Thanks. Good. All right everyone. Hey, this was another productive one here. Just meet Wednesday at 11:00 AM and then next week, same thing, supported raises.com for all supporting queries. Or you can book a help call as well. And then we can always Get people to the next step of whatever they’re doing, whether it’s raising money, setting up a fund and everything.

So thank you everyone for your time and this was a really fun one, Chris. Yeah, no, definitely. Good call. Yeah. Thank. Thank you. Thanks. Thanks.