Investor Strategy Call – May 20th, 2023

Hi, Devon, doctor. How are you? Hey. Doing well, uh, every, hey, every, every week, um, we get closer to our broker dealer registration app, the final meeting with the securities commission up north. Okay. So, uh, it’s pretty, pretty exciting. So just, um, pushing things along. Oh, congratulations, man. Nothing, like, nothing like having a license with the regulatories.

Yeah, well, it’s a lot of red tape, especially up north. Very bureaucratic. It’s, it’s crazy, but, uh, you know, it is just bit by bit, so, yeah. Yeah. That’s why you gotta keep going. Yeah, a hundred percent. And, and how’s your week, week been? Uh, my week has been busy, but it’s been good, you know. Um, as I told you, I’m involved with Shakir in London.

Uh, I should see my first draft of the funnel by next week Wednesday. Nice. Um, so, uh, with that going along very well, um, the c r m is coming along pretty good too. If you’re, um, not familiar with the CRM systems, it’s actually a base for all of your businesses from social media, social marketing, automations, funnels, websites.

It’s, it gets a little intense, but thank God I got two sets of of teams, um, that’s looking in on that for me. And we are starting to get major results in terms of booking sales calls. So, nice that that’s level. Sorry, is it go it level, but some guys, uh, that I bought it from, Um, but they white labeled it and then I white labeled it from them.

Oh, okay. Okay. Got it. Well, I mean, we’re playing with GOI level too. Some people they wanted a custom, um, you know, just for their investor outreach. They wanted some automations, but, but yeah, it’s the best, it’s the best in the market for sure. It was really, really incredible. I like it a lot. And it makes managing the teams even for you to scale your business beyond compare.

It makes that an easy journey because now once we have a sale, we can now outsource that component to the, to the right salesperson. Yeah. E e, exactly. And then, um, you know, it’s really, it’s really pick and choose cuz some people that want just the email automations and just the website, you can segment it and if you want everything and you do everything, it’s uh, it’s a bit overwhelming.

Uh, but, you know, uh, I’m using it internally too. We’re we shifted over, we used to use, um, close.com in several, but we shifted to Golo. It just makes the most amount of sense. It, it’s really good. Yeah. So, oh, well that’s good. That’s good to hear that because, you know, any problems you have, lemme know, because the teams that I have are incredible man.

Uh, really we’re with the modern Millionaire group, which is Abdul and Chance. Okay. They technically, they technically have a class every day. Right. Um, so I ask questions and they take control over my system and fix, help me fix the problem. Like, oh on, on Zoom. Do they go on Zoom in mouse? Okay. That’s nice.

Yeah. Yeah. And then Shakir in London, he has a team also with classes every day. So even if I get on there with them, they too take control and fix the problem. So, so it’s not, I think in that way I scale my learning curve a lot less and they help me, both teams help me to get where I need to go. So if either one sees something inaccurate, they’d say, no, no, gimme control.

And they’d fix it for me, and then we’d keep going to the next, to the next problem. That’s awesome. We, we have something, you know, I have a mentor. He is, uh, Mitch Gonzalez. I don’t know if you know him, but he’s, um, a really young guy. He did, he made his first million at 19, really young guy. And then, um, he uses, uh, AI with GOI level.

This is basically the last tangent and then we’ll get into the fund. But he uses AI with GOI level, uh, because he gets the people from LinkedIn, cuz we use LinkedIn duty outreach, but then we use a tool and then he uses that tool to get the leads from LinkedIn into GOI level. And then he uses, uh, G P T to send automated, like back banter, back and forth to them just to get them to book a call.

Um-huh. So instead of hiring a va, so he’s, he’s doing that. I’m just like, that’s a bit more advanced. I haven’t seen anything like that. But, uh, no, I’m, I’m starting to use the chat G p T two. Nice. So, so, so I wrote two books already. With chat. G P t help. We’ll see here. Yeah, thanks. It took like 10,000 words, but in two hours we were done.

Wow. Wow. So that was, and all I did was send that off to the editor. Yeah. And then they would personalize it and make it, have a feel to it. Because chat g p t, it’s rigid and cold. Yeah. So, so you need to have some human hands on it to soften it up a little bit. But yeah, man, no, I, I can’t wait to see what your process is like, especially with your guy using the ai.

Um, I’m, I’m sure these other guys are using the AI as well too, but I’ve never heard it with LinkedIn and having the AI to have an automatic response to that. That’s, that’s, that’s, that’s unique. Well, well because the thing is like a lot of the, the, some of the frontal guys, right? Like, they like Facebook because a lot of them do bis op.

So the thing is that people like quote unquote us who are doing more like sophisticated products, uh mm-hmm. LinkedIn is a really good market. So I, a lot of people may not know as much of LinkedIn as others, so if they just infuse a little bit of LinkedIn into it too, it can also be, um, good. But, but let’s, but we’ll, we’ll still leave.

Okay. We’ll leave your system. Uh, you already have your experts and those guys are way better than me at funnels. They’re, they’re the experts at that. And then, and then lemme just go back to my core competency and then we’ll finish over this. Uh, ok. Lemme share this. I, I did, I did get the corporation information today for you.

Yes. Um, so I, they sent my booklet over this week, and I have all the corporate information for you, um, as it relates to the company itself. Okay. Okay, great. That, that’ll be necessary because, um, yeah, next step is, you know, just before the call, just got, the only thing I got here was the, uh, the information from the last call.

As well as, you know, a bio, you know, cause I just did some personal digging and then, uh, you know, just got this bio here. Uh, okay. AI helps a bit. I’m not gonna deny it, but, you know, I just got this here. Summarize it more. That’s fine. Yeah. Yeah. I wouldn’t, wouldn’t deny it, but, but yeah. So then let’s just try to, we can try to go over the, like, some of the pre return in the I R R and all these numbers.

Um, okay. If the financial models are complete, but if they’re not, we can make one as well. So, uh, so we can just go through, um, like your target, um, or I guess what’s, what, what would be the preferred return for, for the fund? Um, preferred return would be, um, let’s say, uh, 9%. Nine. Nine, okay. Okay. So then the term, how long is the term of the fund by the way?

The term of the fund is 20 years. Okay.

20.

Years. Okay? Mm-hmm. So then that return on equity, so what do you have for return on equity? The return on equity would be approximately 20%. Okay. So 20%. So then have to put that in, uh, I have to put that in like a multiple, you know, like, uh, 200% is like two times multiple. So then I have to put that in like a multiple.

That’ll be over. Wait, that, that, that 20% would be over how long? That 20% would be over the 20 years. Okay. Because we’re constantly, we’re constantly buying companies. Okay, got it. Right. So 1.2 x. So they’ll, they’ll at the end of the, of the 20 year then, uh, I, I would be afraid to know what that, what that multiple would look like at the end of 20 years, meaning?

Um, because of the compounding effect. Yeah. So if we do 20% this year and it compounds again to 20% next year at minimum, you know, I’ll have to do a recursive algorithm to, to see what that’s valued at over a 20 year period. Oh, got it. Yeah, that’s a lot of time, uh, especially after inflation. Mm-hmm. It’s pretty significant.

And then the internal rate of return, if you, if you have that on end, the internal rate of return, I don’t have that yet. Um,

but if, if I think the overall return on equity is 20%, the IRR should be somewhere between 12 and 15%. Yeah, that makes sense. 12. Um, let me, uh, go for the lower one just to be safe. So I’ll say 12. Okay. And then, um, Passion cash, it’s not as applicable, but you know, it’s more for real estate. But I don’t know if happen to have that, well, we won’t have a real estate component initially, but it will come up in some of the mergers and acquisitions because most of the medical companies split their assets.

Hmm. So once we purchase the, the real estate, then the practice itself would be renting from the real estate, but Okay. I, I wouldn’t know what that number is until we start to do the acquisitions themselves, so. Got it. Yeah. So I won’t know that number immediately, offhand. Yeah. I don’t even, not even sure if it says irrelevant and I’ll get to CFA to confirm.

So then the percent, cause I remember we already talked about this, but, uh, if you can help remind me the, um, the, the, the split here, uh, the profit share on the, okay. The, the, the. The percentage of split here, um, the investors, based on the dividends for the returns for those corporations, they should get 30% mm.

Every year of the dividends declared. Okay. 30%. And then you said that there was, um, around 60 that would go to the gp and then the re remaining 10 goes, uh, somewhere else, correct? Yeah, the uh, uh, uh, uh, uh, the 70% would go to the general partners. Okay. So se 70% would go to the general partners and uh, 30, 30% will go to the limited partners.

Okay. Got it. Uh, so then management fee. Management fee would be, um, 2%. Okay. Yep. Pretty standard. Mm-hmm. So then annual. So then how about the, um, The annual, the annual return, because you know how, um, the return on equity was for the entire term. So then how about on a yearly basis? Mm-hmm. On a yearly basis?

Um, the annual return, uh, we said that, um, 9%. So I, I think we can go with 9% to be on the safe side. Yeah. And that’s on the low end. Okay. So 9%. All right. And then we already said the minimum investment amounts 50,000. 50,000. The minimum unit amounts is one unit. Cuz we said that one unit was 50,000. Yes. So, so how does the team structure this is just, uh, yourself is taking, you’re, you’re taking the lead and then do you have any directors?

Yeah, I’m taking the lead and then we will, um, add additional corporations as needed for the investors. Got it. And then, uh, so then, okay, so no other directors. How about a board of advisors? No. Okay. Not available just yet, but as soon as we start to raise capital, we, by that time, we should have the board in place.

Okay. The board, the board will be comprised of three people. Mm-hmm. Um, myself, um, my spouse, uh, Dr. Odette Daley, and, um, our mergers and acquisition partner, uh, Warren Thomas. Okay. We, we can, um, we could probably add them in like early because, um, just for, yeah, just for the sake of, um, of sales and marketing.

Uh, I don’t, I’m not able to add them in here, but you know, when we do the pitch deck, uh, it should be a few days and we’ll add that in and, um, all right. Get the call notes. Okay. And then the general partner’s name, uh, Devon Dame. Okay, Devon.

All righty. So then what we do sometimes, because for the pitch deck and executive summary, we have a section where we look at the past, so I guess quote unquote past deals. So anything that suggests that, Hey, you know, I’ve, I’ve been involved with this deal that got this results, kind of like a testimonial.

Uh, so if there’s anything like that, either yourself or anyone you’re associated with. And then track record is more just general success. Uh, so these are easily things I can get from like, you know, the work that you’ve done as a, like, even, like even your consulting or you know, the things that you’ve sold to people, things like that.

Like things are almost irrelevant that you can put big logos of big banks and big companies on your, just for general traffic. Okay. Yeah. Um, all right. Not a problem. Uh, uh, uh, new Beginnings, ob, B G Y N, which was my wife’s practice. Um, I, I had put that together from start to finish and we had leveraged the SBA a 78 program in the United States in order to do that.

Okay, interesting. So let me leave it here as well. So then, uh, did I spell this right? O B G? Yeah. O b uh, G Y N g. Yn. Oh, gynecologist uhhuh. Okay.

Leverage the SBA seven A program for, I think that was 1.1 0.2 million.

All right. Awesome. So then there’s this, uh, um, there was, um, there was a deal in The Bahamas for. Land development in Long Island, Bahamas,

and that was for 350 million. Oh, excellent. Okay. And then you’ve, the entire thing is done right? Or is it like in, in a phase or, um, that got stuck with government, so that got held up with the government regulators. So that’s still in the hands of government regulators. And until they finish, we wouldn’t know just yet.

Got it.

Watch and,

okay. Uh, any, any third one? Um, uh,

White Sky Admin Inc.

Um, that’s in progress and we’re, we’re talking to them now about a 20 million raise for, uh, advert advertising to get them above, um, a $10 million month sales ratio. Sales, um, um, how should I put it? Sales growth. Oh, 10 million in, uh, monthly revenue. That’s pretty good. Yep. And that they’re in the fashion industry.

Oh, nice. Okay. Uh, us, I’m talking to them about their fee next week, so, uh, if, if I could collect that fee from them. You’ll, I’ll be knocking on your door for that one soon. Nice. Yeah, let me, so what I can do is, cuz um, there’s some consultants that’s, we, we know what some of consultants, they have certain, um, engagements, letters that they send, uh, if you like, we can send some examples just because, um Okay.

Yeah. De depending, just depending on how you structure it. There is a, there’s a bit, there’s a bit, there’s a, there’s a, it’s kind of important to, uh, you know, have some sort of distance from the capital raising side if the s e C comes and tries to cause some trouble. So, you know, there’s a way that we, we structure it where it’s, uh, more like retainer based.

Uh, and then one idea is, um, is, uh, there was a, there was a guy out of New York and then he was talking about, uh, making sure that he takes fees like in big chunks, prorata, uh, just in case the cause, cause when, when people are taking fees out of escrow, And then if an, an investor complains, and sometimes people may, uh, that’s just a little risk there.

And, and obviously we can go No, I, I won’t be taking a fee out of the escrow for this one. Okay. Um, how I’m arranging this deal is they’re gonna pay me up upfront for the consulting. Nice. Okay. And to raise the, the fees. So I’m, I’m, I’m charging them 35,000 upfront. Nice. Yep. Right. Uh, and that’s before we get started.

Um, as for the now, um, how we made our arrangement and, um, they have to take their companies so far in terms of monthly revenues before they can access any of that. And then on top of that, whatever they access outta that 20 million have to be paid back on a monthly basis, meaning, So they’ll use that as a, as a revolving line for their, for their advertisement.

Oh. But, but if they’re doing 1 million a month, um, we could only extend them a revolving line of, uh, one fifth of their revenues that are being generated every month. So if they’re doing 1 million, we can only extend them credit up to 200,000. Okay. If they’re doing, if they’re doing, um, 10 million, we could only extend them credit up to 2 million, but they gotta pay that back within a 30 day cycle.

Hmm. So that ain’t gonna be no long term, but it’s gonna be revolving. And, uh, that’s a 20% charge to use that money for their sales cycle business. Okay. And then they’re consulting you to get that, uh, line of credit. Yeah. Okay. Okay. Got it. Okay. Now the funny thing is how those corporations are structured.

Yeah. Um, we have an agency agreement, so technically speaking, only my information is shown on the corporation. Um, and they get what’s called a consultancy fee from this side, and it actually turns into a revenue share for myself. So at the end of the day, it end up being me having the financial responsibility of that company and we end up with a 40 to 50% split in terms of revenue.

Okay. Yeah, because you’re doing it. So does, so I’ll, I’ll provide the capital. Raise the capital. They take care of the supply chain and the logistics. And, um, with this type of funding, I’ll be dealing with the Facebook ad accounts to make sure that sales are going how it’s supposed to go. Oh, okay. So, so, okay.

So then you have your company. And then just last question on this, they have their company, the White Sky Admin, you have your company. Is there a third company being made here for the management and splitting of those fees? Or are you just going into, uh, just making an agreement with White Sky? No, I made an agreement with White Sky.

Yeah. But I create a company here specifically for that purpose. Oh, brilliant. So they don’t use my company at all. We use White Sky right here in America and I run it through Florida. And that’s the company that we’ll use to raise the capital, uh, represent investors and account for all their US revenues.

Brilliant. You create a an S P V, uh, just for the purpose of, uh, If running ads and then splitting. Correct. But that have to be a C corp. Okay. We didn’t want that to be a disregarded entity or llc or pass through or anything of that nature. Yeah, because you want to compartmentalize like all the liabilities and keep it locked in there.

In there. Yep. Yep. It’s brilliant. That will be the next project. Uh, I’ll let you know how that one is coming on after next week, but they’re dying to, for me to help them out with that. I’ve been push pushing them off.

Why is that just because you’re looking to get some things like lined up to, uh, deliver her right or Right. Not only the, the liver. Um, I wanted my, I wanted the sales pitch to be out of the way. I wanted the rebranding to be completed because it’s a huge distraction. Um, getting rebranded in the middle of all of this.

Um, so there are tons of stuff. I’m in class to like two hours every day. Monday to Friday at at minimum. Wait, that’s, that’s for, is it for the funnels.com fellow or is this for another one? Yeah, it’s for both. It’s both for funnels.com as well as Modern Millionaire. So they have a set, both have a set of classes that I, I go to on a daily basis.

Wow, okay. Nice. But that’s the only way we can get everything automated so that once I bill it one time, I wouldn’t have to keep going through all of the process of, um, change. Um, just minor changes here and there. Yeah, no, exactly. And some payment processors give, like in the States is a bit better than in here, but.

Sometimes the payment processors, once you get like an uptick in revenue sometimes, then they, they want to throttle it. They, they just wanna say, Hey, what happened? How come you’re making so much money? Yeah. And then they start asking questions and slowing things down. So, uh, so, so if you don’t mind that, as long as you can justify it, right?

Yeah. And, and the returns of, of that investment that don’t come back to me, that go back to, um, the fund itself. So when we raise capital for this one, um, you know, whomever we target for, for, for, for a white sky admin, the funds would end up going back to, uh, a portion of, of the revenue go back to them almost immediately.

Right? Good. Because as long as they put the money back, the money is gonna come back with 20%. So why hold the 20%? Distribute it immediately? Yeah. Back into, back into ad spend. No, we wouldn’t, we wouldn’t need to, to, to, um, put the money back into ad spend. Uh, I was talking about the return going to the investors at the end of the 30 days.

Let’s hypothetically say a company is making a hundred million a month and they need the entire 20 million, right? When that 20 million come back, that’s gonna come back as 24 million, cuz it’s 20% per 30 day cycle. Okay. So, we’ll, we should take the 4 million, um, that we got back from that and distribute that to investors immediately.

So every 30 days it actually, based on the use of that money, every 30 days, they should have a distribution back to them as an investor. Oh, that’s amazing because then you can do 30 day instead of doing the quarterly thing, you can do it in 30 day, um, distribution. Okay. And then you’re also talking about the context of you helping them raise capital.

Correct. Okay. And it’s, for this, we would like to be like none other, the investors as well as all stakeholders would be able to directly view the bank accounts, um, for both the company as well as the fund. That’s awesome because then it reminds me of, uh, I don’t know if you heard of cvo, uh, but it’s a, it’s a wholesale lender.

It’s, um, they’re backed by Y Combinator and then when they, they, they’re a wholesale lender basically. And when they lend money, uh, everything is transparent on their APIs. So when you’re doing your investor reports, like it’s, it’s really nice for the investors because. Uh, instead of it just being a, you know, their position and, you know, the financial statements, you can actually just see all the sales and it is just like an open api.

They can just see all the, uh, different sales and all the numbers and everything. So if there’s questions, we don’t have to answer any of those questions. In terms of the investor relationships, we want everything to see how, how, how that process works. Yeah, it’s self-serve, but that’s amazing. So. Mm-hmm. I think it’ll be suitable for, for doctors who are really, um, you know, inquisitive and, you know, the smart check investors ask a lot of questions, so, so, okay.

So then, um, that’s good. So then the track record, uh, this is, yeah, this is more about, um, about just general work, more general work, um, and companies that you were at, you know, university and all this. So, uh, this thing has a summary, but yeah, I, can you point me to the three main, uh, you know, professional accomplishments, uh, professional skills will be, Um, you know what?

Accounting, finance, and running international companies. Okay. Uh, management.

Um, and you could say, um, secure in funding for all of those companies.

Okay. Okay. And then, uh, just one more, um, angle. Mm-hmm.

Um, I have a team in place that’s been in place for over 13 years.

Team, uh, Managed manages, manages, uh, team manage team things together. Trying to phrase this, teams stayed together for

over 13 years. Alrighty. And this would be a cleaned up as we go. So then bios are here. Okay. So redemption, this is just one of the risk disclaimers. So manage it on, would there be, okay, I, I think we already asked this question, but the question is, would the, would the general partner own, uh, more than 10% of the units that you’re selling to investors?

I’m assuming this is no, right? No. Yes. Oh, it’s, yes you will. All right. Yes. The manager may own greater than 10%. Of the units of the partnerships? Yes. Okay. And this is the, this is the limited partnership side of it? Like this is the investor side of it. This is Okay, the investment side of it? Yes. Okay. Yes, because I’m gonna have to be the one to represent, um, the agent anonymously and be the sole, uh, pretty much greater than 51% owner on the corporation.

Okay. Got it. Okay. Makes sense. And then the term of the directors, so then the term of the fund is, you said 20 years. So it would determine the directors be the same? It would be the same, yes. Usually is. So the address, I mean, this, this was something that was in like to be determined, right? Because No, I, we have a address on file for the L L C, right.

The one that you’re raising the 20 million on now? Yeah, yeah. We have an address on file. Okay, let’s hear it. And that address is 1718. Yep. Capital Avenue. Avenue, yep. And it’s Cheyenne. And that’s c h e y e n n e. Wyoming y Uh, w y? Mm-hmm. Yeah. Got it. Okay. At the zip is 8 2 0 1. Okay. Got it. Okay. And then the contact number is your number correct?

The contact number would be mine? Yes. Eric. Code 7 8 6 3 9 0 1 3 77. All righty. Same email. The same email. Which email do you have now? I have, um, let’s go to my other screen. I have d RTP dash development. That’s perfect. Yeah, that’s perfect. Okay.

Okay. And obviously we need to rephrase, but how many, uh, I guess how many in, how many interests are you gonna have in the, because you said you had to own more than 51%. Uh, yeah. And that’s the targeted businesses. Yeah. I will own probably, uh, 51% of those. Okay. So, so this is actually the, on the fund level, so, oh.

At the fund, I’m a hundred percent owner of this company, um, cide Investments, llc. Okay.

Okay, so well, well, I mean, they’re 400 because I mean, I’m talking more about the, just make sure I, I don’t confuse it. So, because the, the 20 million, we divide those into 400 units. Yes. Each unit being priced at 50,000. So then those are the units is it’s a question of how much you would, you would personally own.

I would personally own two. Two, okay. Got it. I’m assuming this is not going public, but I could be wrong, is going public or no? Um,

we’ll put a peg in it and see how it goes, but it is optional that we would have the opportunity to go public. But I don’t think I leave it as yes for now. Okay, sure. But you know, the, the, the, we would then need a c cooperation to take over the LLCs if we’re gonna go public. So, um, Yeah, mention that we’ll go public.

Maybe investors would go for that as an exit strategy and entice them. Yeah. They love the idea. Like if you just say, oh, maybe, maybe one day otc, an uplift to nasdaq. But just that idea in their head. Um, yeah, the sales, you know, and you can actually try, but then you can just make provisions to say that it’s determined by management.

Yeah. There’s no opportunity to do it later on. Correct. Yeah. So then an investment manager, it’s a, some people have it. I think it’s just like, it’s more, uh, I think it’s more bureaucracy, but it’s a third party, like third company. It can have underneath your, your, uh, management company. But are you gonna have one or no?

I don’t really think it’s necessary. I wasn’t planning on one. Um, technically speaking between myself and the board, we were gonna manage it ourselves and. I would’ve become the, what they call, uh, chief Investment Officer for the business or for the fund itself. Good. So it, so it’s, so then there’s no need, cuz some people what they end up doing, they end up uh, turning that into another entity.

Uh, you know, usually I think it’s for just status or tax reasons. Uh, I think it’s find a way you did it. Uh, so I should say no. Well the, this entity itself is a pass through entity, right? So, uh, once we create the entities to place the investors in, all of those are gonna be passed through entities. Yeah.

So the, the corporations won’t be taxed at all. The taxation would happen at the individual level. So if we have out of those 400 people receiving monies, they then would have to take that liability of the tax representation onto themselves cuz we just distributed to them through a disregarded entity.

Um, and that entity is, is not taxable, doesn’t pay taxes at all. Yeah. And so, so, and then, because I, I recall, and, and luckily we, we have this this’s recorded for me to check, but then I recall that it was the, um, uh, the, what’s it called? The, you’re going to consult these doctors so that they have their own LLCs, uh, to make sure that the, that they, because they have some strange thing with their, with their jobs.

So you just wanna make sure that they, they don’t have to get, that, they don’t get that taxes much from their job site. So then they’re using this LLC to invest into the company. Uh, into company, which is, and then the company is a, um, is an L L C. Yes. Yeah. Yes. Okay. No guards. You got, you got it. You got it.

Cool. So then, okay, so for, for closing date, This is just marketing, but some people they just say 90 days out, and then it’s like kind of to add that urgency because you’re, you’re in a sales world, so it’s just, you know, to add that urgency and all that. So that’s fine. 90 days out is good. Yeah. We can put this here and then people end up just pushing this back.

If there’s, um, slow down. So this is not available or this is not applicable United States are you open to, so wouldn’t it be United States, like all over the world, or, or wouldn’t you just focus on United States for investor location? I just focus in on the United States. Okay. Yeah. We, we focus on foreign investments that requires, um, that, that requires, that’s a whole other headache.

Yeah. Right. Uh, because now you have to go into withholdings for the foreigners who are on the record. And as a manager you are responsible for that. So it becomes an administrative nightmare, um, to withhold 30%. And then, you know, explain to investors. Why the fund is not, um, liquidated evenly, uh, and it’s delayed.

And you know, some people, when they see that delay, they wanna incorporate that amount of monies in their next distribution when it’s not, when they’re not entitled to it. Hmm. I I’ve heard it. I I haven’t heard so much of that. I’ve just seen a lot of trouble with the risk and dis like the risks and disclaimers, because then there are a ton of like more, uh, risk and disclosures that you have to put in the PPM and there’s foreign currency risk.

Uh, and then you have to deal with that because, uh, I have a lot of Canadians that do that with America and vice versa. So, uh, good that you, well, I meant, I don’t even wanna get into racketeering laws and money laundering laws and I mean, that’s a whole other, other, right. Just, it’s just too much paperwork.

Yeah. Tell, tell me about just bureaucratic exits potential. So potential I P O I P O. Yeah. Um, uh, anything else then? Attempted to say refinance. I don’t think that’s applicable, but no, the refinance, uh, I think it would just be the potential I p o or, um, private equity buyout. Hmm.

So then would you do monthly, because I know that this white, this white sky, these white sky folks is a, is a different setup. But what would be the when will be the distributions and the reports? The, the, the distribution should be monthly. Yeah. Because white sky won’t be the only client. We wanna leverage this to maybe 50 or 60 other clients.

Nice. And the reports would be monthly to if the distributions, the reports will be monthly, yes. Oh, awesome. So then lawyer, auditor, I, I don’t have them yet. I have been speaking to them, but I haven’t acquired them yet. Okay. There’s, um, there are a few folks that we, that we know, uh, if you have something good coming up, we don’t want to distract you, but, uh, we know there’s Ross Law Group.

They did read down those funds. And then, uh, I know an individual, um, in an individual in Toronto, he has a PhD in several, um, like cpa, a c ffa, uh, he does a lot of cross border tax, but then you’re not even doing cross border tax, so that may not be relevant. So I think it’s more Ross Law Group. They’re, they’re really good and they’re really, they’re really affordable too.

Surprisingly affordable. So explain that, because if Da Ray Dalios using them, you expect them to be through the roof? Well, I mean, they did, so they did a REITs for, um, for Chris Goodman, one of our clients, and then mm-hmm. Uh, there theirs were, RII was 40 K and then we brought that down to 15 K. And then I’ve seen, I’ve seen operas between 15 to, like 15 to 10 K or whatever, or sometimes even lower.

I mean, it’s pretty reasonable considering what like they’re doing. So then let me see some of their past, um,

they changed their website a little bit, but, uh, yeah, these guys are really, these guys are fantastic. Um, okay, if you’re doing a REITs, then this is much simpler, so, okay. Yeah, he’s really good. But anyway, so this is almost done. Um, C B D C B, but you could put their, you could put their names next to it. Um, sure.

You know, cuz then, uh, we’ll know that that would be one of the companies that we would like to target. Absolutely. I can put this here. Some people, uh, some people, what I’ve seen is, um, There’s a fellow barn he owns a REITs, we drafted something up for him, and then he just, he has like, he has like a big time, uh, he just puts pwc or one of the top four for his auditor.

But then really 90% of the time he uses, like, you know, he uses somebody that’s, that’s just more close to him and more local. So some people they just use for the auditing and a text, they just use like the top forges for, um, you know, for brand or Deloitte or whatever. Maybe they, they plan to use them and then they just say, oh, we plan to use them, and then they put the logo and then they end up just using somebody local.

So I’ve seen some people do that too. Oh, let’s do that too then. Let’s put ERNs Young. Let’s do it. Lemme know he spelled it right. Uh, yep, I’m good. Yeah. Okay, perfect.

So then there’s gonna be one class of those units, correct? Of those, yeah. Okay. Yep. So redemption, so don’t worry about this. We, we’ll have somebody, uh, do this or tbk, uh, incorporation. So the dates of incorporation, I know it’s L l C, but uh, we’ll change it. Yeah. The date that we incorporated here, or the date of formation was January 24th.

2022. 2022. All right. I’ll say yes to board of directors as we discussed. Mm-hmm. Uh, this one, we’ll, we’ll, we’ll work on this for you. So we’ll do this one, we’ll do this one as well as we go along. Okay. So we still have a few more. So the question is, how would you, uh, orig, like find like the way that you’re finding these, uh, you know, like white sky and all these guys, the, the way that you’re originating the deals.

So, how are you going, what are the three, two or three methods you’re gonna originate the deals? Um, well, uh, uh, one method is we got these clients by word of mouth. These ones, they came over from friends of a friend of a friend. Um, the other method is, um, it, we now will end up going to super targeting these clients through Facebook and Google.

So our method, yeah. Go. Yeah. Our method is, um, having, having a webinar for five days to explain the entire process to close clients. So they gotta spend 15 to 20 hours with me going over this for five days straight. Okay. Got it. And we’ll do that like once every, um, once a month kind of thing. A month.

Okay. So, so you’re, you’re actually running Google, so both Google and Facebook ads by the way, right? I’m on Facebook ads right now. We’re testing those out. Um, Google ad, I’ll be on those by next week. Nice. And it’s also all you’re using the, um, the display ads or the search ads or both? I’m using both.

There we go. Nice. I’m using banner ads, I’m using keyword searches. I’m using, um, avatar retargeting with Facebook. So, you know, uh, you know, I would at, at one point in time, like to get into the, um, into that LinkedIn automation. So yeah, I’m, I’m, I’m curious about that just for myself. Uh, but I’m, I’m curious about it.

Yeah, we’ll show you for the, for the investor side, that’s what we focus on, uh, for Danisha. So yeah, we’ll show you all That’s good stuff. And then, um, okay. Yeah. And then, and then you can add it to the, uh, add it to the list of weapons you have. So then believe it. Let’s do it. So, The investment. So you know how some people, they have a portfolio of the, like this percent of the fund is going to this type of deal.

So what would be the, if you were to divide it, what percentage, like how would we divide this fund if we can? It’s, it’s actually going to depend on the revenue of the portfolio, right? Because, um, because they can’t use the full amount unless they are in five x times the revenue. Mm-hmm. So, um, we can say that

20% then would then be the target investment type. Okay. Target investment type. Mm-hmm. So, okay. That’s actually, um, so the, I guess the format is like, for example, if a, if it was a hotel fund class, a, um, class, A value add, You know, core or whatever. And then this would be like opportunistic. This would be 20%, and this would be like, um, risky, low, like opportunistic hotels, 20 per like 40%.

So then, okay, so we have 20%. And then of which, uh, type of business roughly? Um, hyper-growth, uh, uh, companies, um, hyper-growth companies in the fashion arena, arena, comma, um, medical acquisitions

and real estate deals. Okay. And real estate is existing, um, existing or construction. Um, it gotta be existing alone. Nice. Not construction. Okay. And, uh, construction takes too long. I agree. I’m happy that it’s cash point. Yeah. All righty. And then, so, so to allocate, um, straight across those boards, um, we can say, uh, 50% to the fashion, 50% then to the, to um, the medical acquisition side.

Okay. 50% of fashion. 50% to wait. 50% to fashion. And then, cuz you also mentioned real estate. So how much do real estate as well real estate would be associated with the medical acquisitions? Oh yeah. I hear, yeah, I remember this. All right, so then, yeah. So that won’t be, that won’t be multi-family related or anything of that nature for cash flowing.

That would be real estate. Um, that, that, that the medical company owned. Hmm.

That makes sense.

So, okay. So, so can we talk a little bit about the, about the, uh, so then from the investor’s perspective, like the, the, the, the benefits to them, like, would it be more, uh, capital preservation or would it be more growth? So this hyper growth, so I’m assuming growth that’s, yeah, it’s gonna be hyper growth, but at the same token, we’re imitating a fixed income product because our distributions are monthly and, and we don’t want our, the distributions on the fashion side would be monthly.

The distributions on the medical side, that, that gonna take a little bit longer time. Right. So the medical side distributions would be, Um, probably won’t occur. That would be a yearly distribution on the medical side. Oh, interesting. Okay. Okay. So then, uh, okay, so then, okay, I have this. So then from the investor’s perspective, uh, that’s, it looks like that’s like more growth too in a way.

Like it looks like the fashion is more consistent money and then the hyper growth fashion, that would be growth and then the, and fixed income. Yeah. And then the medical side would be for, um, distribution, but, uh, uh, uh, more or less a long-term, a long-term investment, um, slash dividends. Okay. Long-term dividends distribution model.

Because once the asset are declared, then once the dividends are declared, then that’s the amount that goes back to, um, the, the investors. So almost like a big balloon type of a reward, right? Yeah, it’s like a substantial, uh, reward. Okay, got it. And, and a lot of times, um, we technically this 20 million in a lot of instances, especially on the, um, the medical, we’re gonna see how it works on the medical side first, but this is just show money, meaning I shouldn’t have to touch this money at all.

Right. Um, we, we should partner with a private equity group that would bring in all of the money that’s needed for the acquisition and we keep going. Right. So, so, so, so you’re right here on the long-term dividend distribution, but I was just thinking aloud as we were talking, that this money shouldn’t be liquidated.

To any significant amount because our goal is to constantly grow the fund. Yeah. Grow it from 20 million to like a hundred million to, to beyond. Yeah, exactly. So then, um, when, yeah, these professionals, like the thing, like the overall fund would be, I mean, it would be a monthly distribution. I think it’s just that when they, when it comes to the end of the 12th month, they’ll just see a big, like uptick.

Um, because, you know, cuz like from the sales perspective, if we say, oh, you know, it’s gonna be, um, like just on the front end of the sales thing, it’s like, oh, it’s gonna be like, uh, it’s gonna be a combination of, of uh, monthly and, uh, yearly they’ll be like, what? But then he is like, oh yeah, it would be monthly.

And then we we’re expecting a big, um, after the construction deal or, or medical facilities built in z in and, and we have a big, um, yeah, those medical deals are only existing medical companies, so we’re not building anything. These are older doctors who want to retire, but have built up a substantial equity in their practice.

And what we do is, um, we keep them retained for about two to three years whilst we are able to replace other doctors in their space and add value by adding other services to the practice itself. Oh, interesting. So it’s kind of like, uh, when we acquire a deal, you wanna make sure you keep the managements on to stabilize new management before we get them out and, and get them retired and, and all happy.

Yeah, and I’ll, I’ll leave it for, with, with that there’s no third type. So I’ll just say that there are two types and we can always, obviously as a, as you know, you start to see deals, we can always change it. Would you do, you know, on hand the L t v, these are the last two questions, but do you know like the, um, the L t v for the, how do I even explain, so then the average loan value ratio of some of the, the acquisitions or how, basically how much debts are we, uh, leverage are you using in general?

They’re kind of low. Yeah. Right. Because if we have the show money and we have private equity coming in, we’re not using the money as a loan to value. Um, I would say the loan to value is pretty low here. It should, shouldn’t be more than 30%. Got it. Okay. All right. Cuz there’s no real estate involved whereby the loan to value would be like 65 or 75%.

Yeah. Yeah. Like debts is only, um, debts only helps make real estate profitable and if there’s no real estate, then there’s not as much need for debt. So, right. So the, the lowest possible so we can just keep it 30 30, this would be the lowest possible. Yeah. Okay. Got it. Yeah, this market that may be good in this market.

So let me click the submit button. Oops. So yeah, so that just got submitted. So yeah, next step is probably by Monday. Monday or Tuesday, we’ll have somebody send over the, the ppm drafts, the pitch deck, drafts, the subscription agreement and everything. Uh, we’ll just, we’ll, just making notes. So I guess the last thing we can do for the last seven minutes, uh, I just want to go over the, the formation warmer time.

So I just want to, cause I’m a visual guy, I just wanna look on a whiteboard and really just, uh, go through this again, even though we’ve Okay it a few times. So then you’re saying that you have the doctors and then the doctors will have, you know, an llc Yeah. Personal llc. Like some, like, almost like a special purpose l c.

Mm-hmm. And then they would invest into the L L C, which is quote unquote the fund. Yep. Right? Mm-hmm. And then where does the, the general partner is a corporation. Correct. He’s a C corp? Correct. Okay. So the general part? No, the, the, the, the general partner, um,

the general partner is me, yes. Right. You as an individual. So that would be, no, that would be an L L C as well, and that would be cma, um, investment. Okay. So she, how do I spell that one? Uh, uh, uh, S e m a d

investments. It’s my last name spelled backwards. Oh, we probably, I’m gonna make a note. We should have put that in the, um, in the, it’s all good. Put that, all right. So then your name spelled backwards. So it’s like Oprah. It’s like Oprah’s Harpo Productions thing. That’s kinda, yeah, yeah, something like that.

So it’s CMA investments, L L C. Okay. And then that’s pretty much, so then that’s the story, right? So then the, the, the LLCs, the fund, the gps, CMA investments, and then the doctors are gonna have these little special purpose, uh, LLCs so that they don’t have to, you know, suffer some of the tax punishments of, of investing into the, uh, llc.

So that’s the, this is the whole story, right? Yep. That’s the whole story. Okay, good. No, just wanted to confirm. All right. Cool. So, I mean, that’s pretty, that’s pretty much it. And what else is important? Oh yeah. The last thing is, um, do you have any draft like financial models that we can get the CFAs to, uh, review and, um, and give to input?

Let me see.

Okay. This is a list of our partners, I H S L L C. Um, they’re not included in the deal, but they handle all the negotiations for the medical side of things. Mm-hmm. For us. Yeah. So it would be them bringing deals to us. And let me forward this to you

right now. This is not a financial model, but this explains the deals itself. Okay. And then, um, so the letter of intent and everything else like that is on here. Um,

oh, which email do you want me to send this to? Yeah, this1@supportrazors.com

Support rises. Okay. I’ll send this to you. These are the type of deals,

deals we look at often.

Alright. I’ll send this to you and then I’ll send you the financials for what the, what that look like. Thank you.

Okay, good. Yep, I got it. Okay. And I’ll forward this to you as well too.

What happened there? Ooh, supplement down. Touch your wrong button somewhere. Oh, let’s see.

Oh, there it is.

All right. I just set your spreadsheet on the acquisition, showing the forecast p and l, as well as the balance sheet for the first seven companies that we’re looking at. Thank you. Yeah, uh, that’ll be really useful. Yeah, cuz the idea is, um, uh, so we’ll focus on, on the, the, the PPM and all that stuff, but then I’ll assign somebody to do the, uh, waterfall distribution as well for the, uh, L L C, you know, cuz like the, you know, how does distribution work and all that.

But then we, we take that all from the companies that are underlying and then we just put the, uh, The waterfall there based on those, now, now these are all actual numbers for those companies based on the PNLs that they provided to us, right? Yeah. Um, so we, we just took that and make the five year projections of it.

And then these are the companies that we would target. These are the ones only on the medical side. I don’t have any on the high growth fashion side. White sky would be the first one. Yeah. And then we wanna leverage that. Okay. Yeah. So, so what I’ll do, I’ll, I’ll let David, so David is our, one of our guys, I’ll let David know that.

Uh, for the fashion one, we just plug in some assumptions and then if and when we get better assumptions from the white sky, then we put in the white sky assumptions so that it can drive the model. Uh, but on the, on the medical side, we have more data, so the medical side will be more accurate. Uh, but overall, just like we just need an overall picture because, uh, so that you have something where, um, if there’s an objection and at least we can points to, um, where it’s coming from.

Yeah. And we have, we have all of these under contracts underneath an LOI contract already. Nice. So what that means, it’s time for us to move. So it’s good.

Yeah, it does. Now in addition to that, um, there is another company similar to White Sky that we have under contract already. Yeah. Which is second key focus. Um, white Sky is doing about $10,000 a month right now. And, uh, and that’s only after about five or six weeks of operation. Hmm. That’s good. So we, we anticipate that they should be at the 40,000 by the next two to three months.

So they’re gonna climb as we go through this process. So we’ll have actual data for you as, as, as you need it, um, or whenever you need it in that regards. And second key focus, they should be up and running in the next 30 days. And we anticipate them having a similar trajectory as well, too. Awesome. Yeah.

That’s pretty. And we can, and we can, and we can showcase those finances to the investors as well too. See, see, that’s pretty good. But then, I mean, not, not at your detriment because you already have the exclusive relationship, but then, uh, I mean, it’s nice if you, you position yourself as like, oh, we’re the exclusive expert that because we, you don’t want them going around you or anything.

And, uh, and uh, well the funny thing is, um, they can go around us, but at the end of the day, it makes it that much more difficult because, uh, they can’t, meaning I represent them here in the United States, so why, why would you go around me to create headaches for yourself? Man, I’m already giving you the monies that you need in any event.

Yeah. You create, you have this S P V that’s given them the money to run, so it makes no sense. Yeah. So it doesn’t, it doesn’t make any sense for them to amen. God, God help them if they want to go around me. And that’s great. But then that cancels their revenue side because I am the one who granted them the M c A accounts, so I’m extending them credit, um, even before they get to you.

Right. And I’m the only one in the world that’s willing to give them $400,000 of credit for Facebook ads, um, without any, without them being liable. Hmm. And, and you have So everything that we, yeah, everything that we do puts me in a unique space because we’re in control of the financials, we’re in control of the money, we’re in control of the relationships for the M C A.

We’re in control of the assets and the addresses with the directors and everything. E and it took them a long time to get here. So to go around me, I, I’ll tell ’em good luck because I could move on to a next client faster than they could find the solutions that we have provided. E Exactly. And then last thing is that ob obviously, and you’re, you’re exclusive to them, obviously, right?

Because you you built like half I’m, I’m, I’m exclusive to them in terms of working for them, but if their competitor comes through the door, I will provide the same service. Okay. And then they’re happy with that? They’re cool with that. Um, they have no other choice because who’s gonna give them, I can’t limit business because their competitor, um, is coming to me.

It’s not like we’re divulging IP secrets. Their competitor may need a storage facility. Okay, I got that covered. Their competitor may need Facebook advertisements. Okay. We got that covered. Um, are they going after the very same client? Possibly. But at the end of the day, Um, you realize that why you think McDonald’s and Burger King are right next to one another, it helps them cross pollination.

Yep. So that’s, uh, that would be my argument. In terms of your competitors coming to me, we had a lot of people from, uh, acquisitions.com, Richard Pennington, and then from us who go to them. So, I mean, you know, I’ll take it. Yeah, yeah, yeah. No, mine cross pollination. It’s beautiful. Yeah. So, so, so listen after hop off, uh, have another support.

I’m five minutes late from the next one, but, uh, yeah, but listen, I, I enjoyed this one. We’ll send over the, um, draft documents circuit Tuesday. We’ll probably do it by Monday, but let’s back to Tuesday and then, um, and then we’ll get that financial, those financials ready by the time we talk next week. All right, man.

Thank you. Thank you. Thank you so much, man. Thank you. Now, as to the financials, if they can fit those numbers in, in terms of the internal rate of return and. Then, then, and I wouldn’t have to do it. That would be great too. Well, yeah. That, that’s what they, their CFAs that’s what they do for, um, a living. So, uh, I don’t even do the numbers.

It’s them and then they’re brilliant with that. I just do the compliance and all that. But, uh, yeah. That, that’s why we’re here. And, um, and I enjoy, I like, I like the way you do business. It’s, it’s really, uh, refreshing. So I enjoy it. You, you’d have to share that story with me one day. What’s up for a friend?

No, I, the laid back. The laid back attitude or hey, not too. I need my money now. Yeah, well, you know, get everything up in the right. But that’s, that’s why we’re doing this. So, so, okay. So gotta go on the next one. Yeah, man. You run. Yeah, talk soon. Alright.

 

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