Investor Strategy Call- September 20, 2021
Investor Strategy Call- September 20, 2021.mp4
Speaker1: [00:00:22] All right. Hello, everyone. Today looks like a quiet day. Let’s see who we have today. Let’s see. Oh, it looks like we just have. Ok, so just Deshaun is here. Yeah. So Deshaun. Yeah, welcome in. I think this is your first call. So, yeah, typically the way these calls work, simply raise your hand or ping us. Typically, what we do in these calls, we have the financial chartered financial analyst. Come on. Unfortunately, he got called in as one of his other one of his other scenarios to take care of a violation last minute. But yeah, so feel free, honestly, just to chime in here while we see if any other of the members join us. And if you just send me a message or raise your hand, then we’ll bring you up to the panel. Well, the shrine, how’s it going today?
Speaker2: [00:01:31] Hey, Natalie. It’s going great. Hey, so. So I’ve been going over the videos in sequence, downloading the the downloading, the documents and stuff that you’re going over throughout the course. And I am a one man band and have none of the business or financial experience experiences. So like I would be like a five across the board. How do I? Get going with some of the things that I don’t have the experience and you see what I’m saying. This is just me.
Speaker1: [00:02:14] Yes, good question. And yeah, this is why it would be nice if we had matter on. But I’ll tell you what. So then for this, when it comes to the OK, so when you say business experience or experience, so. Exactly. So do you mean the what do you mean exactly to make sure that I understand exactly what you mean here?
Speaker2: [00:02:33] So are you in the. Are you in the system yourself? Yep. Right here. Ok, so if you go like, go to the main menu. And then you go to like the turnkey that will go to the go. I think it’s the first one. Uh, ta ta ta, OK. Never mind, I’m sorry, number two.
Speaker1: [00:03:02] No worries.
Speaker2: [00:03:07] Ok, so the tactics, outreach hypothesis and campaign and then the strategy and stuff like that, like those documents, you’re asking who and your company does this and what’s their competency so like when it comes to some of the financial? Like if you go to tactics and pull up one of the one of the sheets? Matter of fact, I’ll be able to tell you which one it is. I mean, let me log into my PC real quick because I’m on my phone.
Speaker1: [00:03:34] Yep, no worries. No pull up my other browser so I can edit it all myself. I.
Speaker2: [00:04:15] Ok, so like the outreach hypothesis, well, this I think I can pretty much. This I think I could do on my own right. But like the. But like the capital raising campaign competency, so skill gap and IFRS accounting for financials, strain score, you know, that would be a five for me. You know, discussing, negotiating and selling business of company to investors and dealmakers. You know, I could I believe I can handle that soft digital marketing and social media skills. I would say 50 50 on that. Like, I’m not an expert at social media marketing or anything. Yeah. And then of course, number five, you know, number four, I would be a five. So what I’m saying, so, you know, some of these things that had me just asking questions like, OK, how do I how do I gain some of those skills without completely going off of the goal of just getting the campaign going to start raising to start raising funds for going out? So that way, I have the capital to promote or to be able to put down payments down or whatnot for for for any loan requirements, you know, like if, say, Bank of America says, OK, yeah, we’ll give you a five million dollar loan, but we need 10 percent down, you know me raising capital. Would be to meet that, that down payment goal. But when I look at this capital raising campaign competency sheet, it’s there are some things that, you know, because like I said, it’s just me. I don’t want to get too far off of the beaten path to where you say it takes me away from the main thing, which is to get something going and start raising funds.
Speaker1: [00:06:16] Ok, got it. I’m picking up what you’re putting down. So, yeah, because the point is, you’re saying, tell me if I’m wrong. So you’re saying that doing the actual Oh hi, Mark, I see you here, Mark. Yeah. Mark, if you have a question after, just raise your hand and we’ll bring out. So, yeah, so your question is really like when really, it’s not to waste too much of your time with all the kind of all the details and nuances just to get the deal done at the end of the day, right? Mm hmm. Ok, got it. So then, yeah, I mean, the yeah, when it comes to the gap in IFRS and accounting and the purpose for that is only if there are sort of two purposes, right? So one purpose is and I think this would be relevant if I pull this up here, but it’s better if I just tell you as they try to find it. But yeah, really, when you reach out to them, like 90 percent of it is just honestly just just contacting the right people at the end of the day, right? And then none of that, none of that experience and none of that stuff matters unless we’re sending teasers out to the to the right people and then we’re getting it like we’re getting responses in interest.
Speaker1: [00:07:22] So then that’s really the low-hanging fruit is just to say something that resonates with the people we’re chasing. So then after that? So that’s one and then two is the accounting knowledge is more for like if you want to look at the proforma of a dealer, if you like like, let’s say you find a nice deal that you want to acquire, right, is just to get some opinions to say, Oh, it’s essentially like due diligence, like, Oh, is this something that is actually going to hold like, is this is this broker? If I can speak freely broker bullshit in me? Or is this actually something that I can close? So that’s really the point of that. We can get the CFA’s to like, look at the projects to say, Oh, you know, based on this, here’s my opinion. And obviously Clem and the other associates, they could say, Oh, based on this, here is my opinion. So yeah, my point is two things. One is it’s generally you can generally be better only when you’re doing due diligence or checks, or you need to get your own valuation on a deal after you get all the information on it.
Speaker1: [00:08:26] We had some. We had one of the members, Steve. He needed a last minute evaluation for this, like the investment bank wants another evaluation. So we got them to do a valuation last minute, so we may need that. So that’s one too. It’s only after you get the investor interest, then they’ll start getting their own investment committee or their own team or their own underwriters to ask you a hard questions because then they’ll look at the deal and then they’ll start opening a spreadsheet and saying, Oh, what about this? What about that? And then if you can answer it, if they’re looking at the Excel spreadsheet, then that’s really the thing to prevent. And so it’s more just about get make sure that you originated the right opportunities. And then when you get some banter back and forth from the investor when they’re ready to learn more, then you’re ready for those calls. And it’s kind of like, objection handling, really. It’s kind of to make sure that you understand everything about the deal prior to that. And that’s that’s really the point of the back and forth with the CFO is it’s like a call script. Basically, when the investor says Yes,
Speaker2: [00:09:27] Ok, OK, OK, now in terms of raising. So in terms now, so let’s say I go out because tomorrow, actually this week, I’m actually going to be setting up my seamless air, my sales force and everything else to start doing lead generation four for four deals, right?
Speaker1: [00:09:46] Here we go.
Speaker2: [00:09:47] And but in the meantime, until I have a deal, is there. So can I still reach out to investors, raise capital? And if and if so, if they’re ready to write a check, where does the funds get held at so that they know that? Ok, yeah, my money is here, but it’s not going to go anywhere until an actual deal gets ready to go to closing.
Speaker1: [00:10:14] Oh, interesting. Interesting. Yeah. So yeah, I mean, some people, what they do, they are just like talking about the best, the most successful guy so far. So the way I approached it, he had alloys, right? So you had these alloys with some nice companies, right? And so what he did, he’s like, he didn’t really have the thing signed. He just came to us and right before that. And then what he started doing is like he had some of these initial talks with. It wasn’t even it wasn’t even a hardcore outreach is just like a few chats with with with Clem and with with some of our other investors and so on. Like, I think it was about 12 investors. And then when the deal came, then he did it. So I think it’s better for the few contacts. Let me see where and I’ll pull this out here.
Speaker2: [00:11:03] So basically find a deal. Yeah, and that’s when really things start to pick up.
Speaker1: [00:11:10] Yeah. Trying to find a deal? Yeah. Because so we call them feelers. So I mean, you know, here are some are generous and you know, this one is more for. So Kevin and Ray Rice, so this one is more aggressive. So I kind of just not do this one right away. But, you know, just put some feelers with a few people right to say, Oh, you know what, really, what really is a criteria and so on. Clemons, the low hanging fruit here, he gets deals done. So, you know, just to say, Oh, because these people are incentivized to close it, they get points when it closes it. So. Trying to make you find the best one, and then you can also go to the more broad guys, so you can also go to the more broad guys as well, but I won’t really go too hard because you only have one impression with the, you know, going out to the broad people. So I’d only if you’re looking for feedback, I’d go more to the investment banks and to the like the brokers and investment banks just so you can get feedback from them. And then I hit the direct investors like when you’re ready because if if there’s a delay, then the delay would kill the deal or it will slow it down or don’t think you’re not ready or not serious or something, in my opinion.
Speaker2: [00:12:18] Ok, so get it. Basically, get a deal under LOI and then reach out to you and say, Hey, I got this under LOI, I’m ready to get. I’m ready to start picking up momentum on this thing. And then that’s when all this other stuff kind of comes into play starts to fit into place.
Speaker1: [00:12:36] I think so, yes. And then the why it’s a it’s a balancing act. So then I’d advise to like leverage as much information from the see phase as possible from everyone as possible before you get out the LOI so that you’re just super confident that this is something that you have like, you have at least probably 20 people that said yes. And so it’s just kind of a bounce in that economic contradict myself. But you want to reach out to enough people that you know what the mandate is. But at the same time, you don’t want to you don’t want to send up the LOI and it’s exclusive and there’s a time limit and so on. And then you’re really in a time crunch. If you don’t have a lot of people saying yes or else it’s going to demotivate you and you know, if it doesn’t get done and and you’ll be unnecessary pressure. So yeah, so it’s kind of a balancing act, right? So that’s just some feedback in my side because if the LOI like let’s just let’s endorse the deal and then see, oh, you know, these revenues are amazing. This cash flow is amazing. Just getting the best deal you can possibly find. And then, yeah, then I would go and be more broad. Only if you have like about 20 people that say, here’s my mandate and then you confirm with with the deal that, yeah, that’s exactly the mandates based on the cash flows and the projections and all that good stuff.
Speaker2: [00:13:58] All right. Yeah. All right, well, that’s really that’s really the only thing that’s really the only question that I had for tonight. And so would that be said, I got my marching orders and I’m going to get this lead generation campaign going in. And as soon as I have something that we can sink our teeth and our teeth into, I will definitely be reaching out to you.
Speaker1: [00:14:21] Beautiful. Yeah, yeah. Let’s let’s try to get just the best possible cash flow and so on. And let’s just take our time before we get that LOI. Because if we have that, a few yeses extended it with just like I think it was less than two yeses. But if we can do it even more than that’s just so we’re on the side of caution, then the deal would likely get done as quickly as possible then, because if that first one gets done or at least you get a couple for it, then it’s going to. It’s going to trickle down in the future based on your confidence going forward. So it’s extremely important that the first one is the best we can possibly do.
Speaker2: [00:14:56] Got it. All right. Nice. Thank you. Thank you for clearing that up for me.
Speaker1: [00:15:04] Yep, no worries, man. No worries, man. Any time. And then let’s see. Oh man, a lot of look, all these attendees. Let’s see. Yeah. So everyone just feel free to just raise your hand if you have any questions or want to come up in the in the panel here. I know Mark, you joined right after Deshaun did so. Back here. If I’m just going to just hang out for a couple of minutes and some with you guys, do you have any questions? But if you want to watch, that’s OK, either that’s OK as well. So some Mark, I don’t know if that was a mistake, but. All right. It looks like it’s pretty quiet. It looks like that may not be anything, but let’s see, we have one more Q&A. What section? Oh, what section was that? Yeah. Answer this. Yeah, so what section is the feelers? Yeah, so with these quote unquote feelers, let’s see where we’re at. Yeah, so the way that these feelings work. Clement Clemons, the one who he’s been, really been pushing some some big results. And so Clemons right here, he’s been introduced to the new members after since what? Since summer, since July, we just started introducing everyone right away. Kevin is really good. You know, his options are a bit different. It’s like it’s for a deal that is willing to spend some additional amounts. And so this one is not really recommended for everybody. But you can get his feedback there. So just take some caution when you go with him.
Speaker1: [00:18:24] He’s a great guy and everything, but it’s more of a, you know, it’s more of a high roller type of thing. So this is a. Obviously, the pool is pretty decent. He’s gotten me some term sheets, like in some, some transactions. When it came to me, when I worked at another company, Silver Spade is good, but they’ve transitioned more towards more commercial, more or less commercial lending as of late. Kennedy funding is OK. Their terms are pretty high, but they’re OK. Just that just keep in mind that their terms are pretty high. Lending capital nets, you know, these guys are really good. They they give some decent options. So I mean, they’re good at getting feedback in a matter of what, three weeks. But this is only for debts. Cambridge Wilkinson is really good as well. So Cambridge Wilkinson, they yeah. Like at another firm, I was partnered with them and then they hit the market. You have to talk to. So this one is Charles Brown. They take, I think, for equity to take six percent for debt. They take like three percent and then they do done for you raising. And it’s it’s just all it’s all in success fee, but they’re pretty strict. Yeah, I have a way. The way that they’ll fund it is they they usually don’t. They usually don’t fund funds. That’s what they say, but they really do if you come at them from a certain angle. So just contact me if you want to see how you can get past the gatekeepers there.
Speaker1: [00:19:52] And that’s pretty much it. We have Kevin Wells here and we have several others. I mean, we can go through this, but you know, espresso is good. Circadian is good. I mean, these are all some of the lenders that we’ve we’ve worked with in. I think Richard has closed and deals with some of these parties down here. Richard knows these parties more so. Hope that answers the question mark. All right, well, I guess leave it for just like, let’s say, one or two minutes and just try come up with if there are no more questions, then then we’re always here for support. So let’s just leave it for a few minutes to see if anyone has any final questions. All right, so I think that is probably a good place to to end it, but yeah, it’s again, thank everyone for joining. Let’s see. Open, which one would you send for real estate debt fund? Which one we owe a debt fund and hard money transaction? So let me look at this one. Which one do you send a user to for hard listed debt fund? Oh, OK. Ok, that’s interesting. Yeah, that’s a good one. I really I talked to lending capital that night and the guy I have this email, but he has, so his name is frank. I talked to Frank and you know, some people, some of these, some of these folks, especially when it comes to hard money, some of these folks, as you know, they’re very checkboxes, right? But still like, send them the teaser, but really just get encourage to just get on the phone with them because they talk to the phone of anyone.
Speaker1: [00:23:06] So these guys get talks on the phone with anyone. Cambridge, Cambridge. Maybe. But considering some work, considering that you’re at the you’re more, you know, you’re pretty sophisticated when it comes to what you’ve done and, you know, the family and so on. Cambridge can be really good for you because that would probably work with you if you emphasize more the latter scenario. And they only do bigger. They only do deals above twenty five million. That’s the thing with them. But let’s get to them later. So, yeah, my point is, yeah, like lending capital and the pool. The pool is pretty good. It will be pretty good as well. And. And it is more it’s more expensive in terms of interest rates, but you can chat with Kennedy. I don’t know if it will be for you. And so sorry, those guys out. Circadian funding could be good for you as well. So talk to circadian funding and events capital, so try try these guys. These are guys that Richard really vouches for. And so I talked to them just to get some initial feedback there. So yes and no. So let’s see, circadian, so circadian is direct. They’re pretty much it’s all a mix. So. Kennedy’s direct Whipple is not direct, but they will still they’ll still work for you and work on getting it done.
Speaker1: [00:25:02] Spending capital is not direct. At Cambridge, Wilkinson, they’re an investment bank and they don’t have a fund. They just sell the deal on your behalf. I believe it’s all free. It’s all free except for space, except for Kevin. All these guys, this guy is direct, so fond of the rock north wind events, circadian, so those guys should be all direct. But this one is software, but they’re all direct. So. Clemens also, but Clemens, honestly, the first guy you should talk to right here because raises him as a JV with with Bridge-Wilkinson Regional Katz is the direct family office that directly lends. So that’s really the that should be like the first guy there. All right. Taking my usual path. If you have any more. Potentially, potentially, like it’s always it always depends on the transaction, so on, but yeah, potentially at the end of the day. It also depends on it depends on like what does the transaction if there’s a portion of it, that’s debt equity and so on. So, yeah, I mean, this is how the money leaves the accounts at the end of the day, that’s really the goal, but it starts with the initial conversation and initial teaser and. So that they understand each of the assets, so it’s always going to be the it’s always going to be the back and forth of, oh, do you want the asset or do you want the fund? And so these are the initial conversations that’s going to set the foundation as to what do a few people want.
Speaker1: [00:27:13] I think it’s good to get feedback from these guys before going out to tens of thousands, the tens of thousands of people in the in the thing, but can get a good feel. Exactly. Yeah. So it’s to get a good feel. Exactly. It’s to see if they just brush it off. And then there’s a concern. It’s really just pure feeler. The WhatsApp group is good for features as well. I mean, we have some direct lenders in there as well, just so we know that at least we have, you know, we’re going in the right direction. All right. Any more questions, we’re happy to answer you if you’re any, anything more. Oh, what’s happening? Oh, yeah. I can help with that. So either me and then we’ll get, we’ll get matter the other associate. So there are three kind of three ways to help with that. So then I just I just what? Here’s what I would do. I would. We don’t hear. I’ll get the teaser. Woops, I’m kind of going in the wrong direction myself. I would actually just get this easier. So then information exchange, truncate data. Yeah. So I think it’s here actually apologies for me. So internal workings either I missed this zoom windows or blocking it. So yeah, I’d use this one. So this one was used. So full disclosure. Yeah, we helped Richard with this debt fund and we’ve got a few million into debt.
Speaker1: [00:30:00] If you can use this. This is a good place to start. And. So if you look at Abdul, you look at everyone else. This is the one that we use and forgive the format. The format doesn’t look like this when you download it on word. But yeah, this is the basic format and you’ll be formatted properly when you download it. So this one is good for a fund or for any any offering. But then when it comes to something that’s more technology or software, this one’s more flashy. But yeah, simply just honestly, just this is enough. This is a teaser for an investment bank. And just when an investment bank would use is just text, I don’t really recommend it. I haven’t seen this in practice because I haven’t seen people that want to read too much. But consider this if you’re talking to more sophisticated family office or lender or something like that. But I just start here and I take this sentence was back and forth and we’ll get together something that makes sense. And then a way we go here. Ok, that is great. I see your message. Yeah, no worries, no worries. And listen, we’re always here. So we have just these calls where we have we have six p.m. Monday, 11 a.m. Wednesday. Next Monday, we’ll make sure to see if is on. He had to go off today and thank you for joining. All right.
[00:31:22] Have a good one.