Here’s what we cover:
1. Processes for understanding investor mandates, integrations, insights, and looking at past funder behavior
2. Transaction preparedness, gaining initial insights
3. Maniacally monitoring the little things looking at your best and worst parts of the initial presentation and asking “WHY”?
4. Painful parts of dealing with investor feedback, and systems and strategies to still WIN.
Natu Myers & the team at Raises.com
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Speaker1: And I’m going to go since before before people started asking questions and so on. Just quickly to announce here before you announce it publicly, yet we have Vice, who is joining us as one of the financial analysts, and we’re just working on training him to get used to the program together. He has a he has a complete charter and he’s here to get trained up and and learn how we do things here. So he’s just here to assist in the data room structure for all these multicultural. So I’m going to repeat one more time again, so Abdelal a day or any questions, just feel free to, you know, just pop in the chat and then we’ll go. Allowed to talk.
Speaker2: All right, so how’s it going? Very good. Good for a Monday. So so I have a question regarding the DHARAM. So I was looking at some of the structure that you have in the down there are geared toward that. Let’s take, for example, the real estate a structure this. This was more geared toward development projects. I seem to be typical things I’ve seen in that space is the idea that to expand beyond development, such as maybe having one that focus on acquisition, maybe syndication, or if not since we talked about funds all the time, or for the will have a multi-family funds of structure somewhat related to the development or construction’s current deeds that you have there.
Speaker1: Yeah, that’s a reasonable that’s a reasonable point because, yeah, because when we said real estate sites where we were getting set up, we just set it for literally just the hardest type of project, new developments. And so that was based on a JV partner. That was a right now. Yeah. So that one was based on the JV partner executed. New developments. They also did they also did that associates who the data room was based out of. So they also the current developments as well. We can get examples on those and tell you what, we’re going to get an example on that right after this call. Be the next. So then. Yeah, so, I mean, the one thing to ask yourself is like something to try to get to. We can we can look, there’s also like initial people because that initial feedback from because if it’s for example. So you think about the projects and the contracts and so on, results of that, but if you’re looking to just get in touch with, like, I guess get in touch with an investor, they can invest in Texas syndicated that way, regardless of the sex or the things that they require, it doesn’t even involve the Beatles and the real estate side. We are basically after the call, get an example for our value, add opportunities or people who are commencing funds so we can get that. And then we can also, you know, try to present to some who those initial people will commence the outreach with and then just retrofit it around their.
Speaker2: But that makes sense. And then in addition to that, let’s say we’re doing your final fund or a real estate fund in the search engine to try to look at a few things just earlier today when when we do the output does it doesn’t pull the criteria. What I mean by that is it pull the contact information, um, maybe passive investment. But when I put when I put the criteria’s in the search engine, if it’s semantic and able to pull projected investment, but I’m not sure if you’re familiar with pair real estate or I think the other one is called Picture Book, but they give you a likely scenario, the likely scenario, what those firms have invested in the past, but likely the next nine months or six months what they’ve been searching or what they’ve been looking to invest into. And so we can pull that metrics very easily. Is there a way to do that in the search or are we pulling the data from each book or paper or access? How do we go in and maybe a filter or drill down, mind the data even even further?
Speaker1: Yeah, I like that question. It’s one of my favorite questions. So then, yeah, the understanding what people have done based on past experience, I think that that’s probably best done with because what we’re basically doing. So I mean, there are a few ways. The first is and we’re going to restructure some of the portal to make things more smoothly for the clients are coming on like next week and so on. But yeah, basically what we like to do first is I have a few, maybe like 12 or so people that that have reached out to initially. So we get like, OK, you know, this this this is investor says this, this indicator says this, this investment bank says this, this investor says this. We have a rough idea. And then after that, there’s like just the data and the sort of data just has some people that have already been already been vetted and everything. And then from there to the engine, as you said, the other clients were people. And so, yeah, because what it does, it looks at us. It gets so we we try to understand some key patterns based on keywords and then the types of keywords that can be associated with our and it’s it’s pretty experimental in that sense. The best way will just be to we actually have a tool that is right.
Speaker1: Buried at the bottom that does exactly that. It’s still that. Yeah, so this flew right here, so he does exactly that in terms of trying to understand what is somebody’s mandates and and, you know, what is a potential companies, the country to your stage and so on. And then it’s supposed to explore to CEV or Legalists or Shorthair, supposed to export a list of firms are supposed to be most likely based on criteria. The Delia answer is. So that’s something that we’re working on, based on historical data. Yeah, we’re just we’re just working with a few people to make sure that we’re going to just send you the data directly and put it on the call directly so that people can understand what people have done based in the past. We’re going through like a process to make sure that the whole thing is compliant, that because we have like I mean, I think we have like a really large amount of people in there, but and we just have to do some checks, make sure, you know, to make sure we didn’t cross any lines. But yeah, so I’d suggest playing around here for experimental purposes. And what else here get into taking a look at. I was certain that, you
Speaker2: Know, I think maybe you’re going to talk about the the last piece, which was the pitch book piece, are we are we integrated with the API or is the goal here as we evolve these platforms to be more more like Facebook or better than Beach or maybe maybe Kongregate yet kongregate the data in a single location on the basis that the platform. But we’re able to do the on demand run report by putting in all those different locations.
Speaker1: Yeah, they’ll be they’ll be a pretty good scenario because, I mean, the API integration, like, if you just have that, that will save a lot of time and leverage other people’s work. But just to cut off on, you know, just cut off in some initial expense, like we just sourced our own data from publicly available stuff and then we put it here. So I think I think in the long run, honestly, in the long run would be to. Will be just to have it so that we can be the cheapest person to have agents that can manually raise the capital for people, but to do it without like to do that is extremely cheap rate. That’s pretty much the goal. So that can undercut typical investment banking fees on monthly retainers and all that because. Yeah, I mean, historical mandates are one thing, but sometimes it’s also important that people underestimate who are the new pieces of news that come up on new funds that have been created. Because one thing that I notice is even on credit, because I’ve seen banks on crunch based on really cheap, that’s really cheap. And because they’ve emerged newer, like it was a new announcement, sometimes, like they’re actively looking for more deals and there’s some free places that I’ve seen that they post their new deals. But a lot of times the historical action you’re looking at some you know, some prudential like some, you know, retirement fund or so on. And they don’t really like there’s so many barriers, so many people in a way, and so on. So. Well, what I would do is
Speaker2: That you can finish your thought. I didn’t want to cut you off, but honoris.
Speaker1: Yeah. What I would do, I was like, I think four quick replies, like the new news is usually like just based on what I’ve seen I could be wrong with. I’ve seen new replies like a new or sorry, new people that have emerged. The new funds have been announced in store. And those guys are really hot in terms of, you know, replying to queries that they don’t recognize.
Speaker2: Correct. So I think you just you just showed me what what I was going to mention, and I think also as part of that, too, is typically with some of the officers that are funding new funds or new investors, if you’re bringing the deal or you put them together or whatnot. What I do notice is that they are very they are very pretty. They are very steadfast on the mandate in terms of not well in the amended cycle. What I mean by that is if they only invest in development project and they only invest in the last quarter and the third and fourth quarter of the year, it doesn’t matter if the deal is very, very good. They simply don’t look at it because it’s not part of their cycle of investment. And then sometimes they also invest in the front in the first quarter of the year because the mandate, because the mandate only allows them to invest in Q1 and Q2 because the fiscal year and especially here in the U.S. because of taxes. Right. March 31st is when all corporate taxes are due to the personal taxes. So they typically try to get their fiscal year start on May 1st or June 1st, and then they look back into the amended cycle or investment cycle. And so I’ve not quite found anything. In the real estate side, it actually made clear it can have not used Facebook, at least, which I’ve heard good things about, but I’m not. I’ve used parent access in the. In the manufacturing and then especially airplane leasing or transportation sector, the very, very bullish into that aspect, and I’ve spent a lot of good, really good data. I just don’t know if there’s anything out there yet for real estate. So that’s that’s where I was going to go with the question here.
Speaker1: You got it, and I mean, what’s funny is that we found ways like I guess some use, like pretty much all these tools that cost more than 15000 of all. And there’s kind of like. Yeah, when it comes to I think when it comes to either the hard money lenders or the family assistance, I think that that’s where you get the information. But, you know, we like to say we used our own ways to get some new people. And so, yeah, because, you know, so what you’re saying and you’re finding is that this is really cycle driven. And then you’d like to just understand what are the last, I guess, when and what announcements were made and what time so that you can understand what is the best time to strike. Typically, I mean, you’re sitting term sheets. I like the term sheets are usually two months like I’ve seen. Maybe they do differently. I’ve seen term sheets two months to three months. So, I mean, one concern new people. And so. Yeah, because, you know, so what you’re saying and you’re finding is that it’s really cycle driven. And then you’d like to just understand what are the last, I guess, when and what announcements were made and what time so that you can understand what is the best time to strike. Typically, I mean, you’re sitting term sheets. I like the term sheets are usually two months, but like I’ve seen maybe they do differently. I’ve seen term sheets two months to three months. So, I mean, one can time everything up. That makes sense, right?
Speaker2: And I’m going to change gears on you as well. There are a lot of migration going on last week, but I also forgot to send you a note. Did you happen to have that closing documents with the CPA fee, 10:00 p.m. closing on the fee side of things, the example you are going to share with us?
Speaker1: Oh, yes, so then, yeah, thank you for reminding me so then I was able to send that over. Let me see if I can send it over to show your security. Put it on. So then data room. There’s one that’s a consultant’s. So data actually just bear with me a bit, let me just dive into my email and then right now some second. All right, thanks for the patience. Yeah, so check this out. So I have the example agreements reached on my screen. Right on the screen. This. Yup, yeah, so this is this is essentially it’s like. So this is based on one of our consultants that we used to work with basically are providing advisory services. So yeah, basically. This is what is interesting to basically what they do, they say this one is a monthly retainer, but what the way that a structure is, they make sure that the payments are paid pro-rata. So like if a certain transaction is a certain size, then they will just keep on asking the person to pay such fees at different points in the transaction so that over time it adds up to that percentage. And the reason why they do that is so that check and make sure each of the, you know, not a lawyer. But, you know, the reason why they do that is because it’s it makes it seem as if their work is not connected to a potential transaction, in which case then the then the FCC could say, hey, you know, you’re unregistered. So this is just one example to look at. I put this in the mail and it’s been KeyData Room, but we’ll get our securities in order to add another one. And because there are different variations of this.
Speaker2: But I’ll take a look at that because.
Speaker1: Yeah, no worries. So we have either today or any questions before you do on new subpoenas. And then that we can assist. Oh, I just I just missed as soon as I clicked on candidates and decided I’m just going to write them down so I can get them in order. Sorry about that. But then we kind of since we have you with the question right now.
Speaker3: Yes, I think we’ve got an email from your team last week that for our. So in short, page Altagracia, there will be one reviewer today, I think he said cuts off or he’s not able to make,
Speaker1: You know, cuts right here. That cuts. Right. So I think they could actually send over some of his review based on on on Saturday, I believe some of the initial parts. And then and then we take a deeper dive right now.
Speaker3: We got the up, but we also had our. So think escaping, keeping them multitasking, but we also had a one pager that I think we were still waiting to see.
Speaker1: Right? OK, got it. Yeah, exactly. So I think you have to consider I’ll take the lead on that. So let me take the lead on that right now. So then we. Yeah, because Kurt focused his efforts on the Pitstick our focus efforts on the one terror, because I think it was mentioned that have more exposure to that, which makes more sense. So let me take a look at right now to fix anything errors.
Speaker2: Yeah, I’m looking at it. I think it’s on the.
Speaker1: Ok, got it. Just making sure I’m still online here. Yes, let me go through it right now and make corrections I highly recommend. So in summary, seventy five billion USD private placements. So this is good. I recommend it. I think I recommended before we don’t really need replacements because it makes it in my opinion, it makes it seem as if, you know, as if an investment bank is shopping it around and then investors kind of like a it’s probably a brokerage and then it’s chasing me. So I probably like to this for me and for review. Let me turn on track changes so that you can track make. And approve them or disapprove of them and so on. So that’s so seventy five million Arts Capital Fund providing security. So the subtitle just is simply making it short when possible. Capitalized. Security and income growth, income growth for its investors and veterans alike writes. All right, so our capital, so our capital is the proper noun of the art of the fun, and it’s typically what we will be doing. We usually we usually just say what the thing is without including a proper noun. That’s typically how we do it a bit shorter to give the points. And then here is the introduction of the of the company name. So let’s take a look at our capital. Invest in real estate and real estate tax assets within the United States. The fund will focus primarily on the large multifamily residential mixed use commercial mixed use commercial and help investors restructure equity debts, debt, something very various hybrid hybrid surpassed Despain. That’s. Preferred equity. So tell me if this doesn’t seem a bit redundant, so then because you mentioned that. You’ll be structures Equador, that’s. OK. Surely this is like an example of the type of debts and the equity that you would offer protection?
Speaker2: Yeah, I think I think what we’re trying to convey here is that we didn’t want to say that, only we didn’t want to see equity only. But when you have equity, you always, always have option to do preferred equity, which also gives you. A hybrid of debt and equity, if you will. Yes, and you typically use that when you want when you want funding to occur in unit tranches, instructions, fossas on a one hundred percent off on. You may want an investor to bring in an investment to bring in 10 million, but instead of having a three five year local period, you say, well, OK, well, I would put in 10 million, but I would like to withdraw the money within two years. And that’s possible when you do a preferred well, your preferred a slice into the Capitol steps.
Speaker1: Now exactly what you’re looking for, a leader. Acts of acts of terrorism, both those states. OK, interesting, yeah, so that’s that’s interesting because it makes sense because when you see the fund will employ whenever he sees things like this, then then how did it seem then? Then they’ll start looking at it. So then so then that’s good to perform our estimates that fund which generates a first year yield to investors just over six. Yeah I like this because like it’s not it’s not to. You know, it looks reasonable, it doesn’t look too scary or anything because, you know, the mid teens is fine because, you know, sometimes when you get on these, you see some of these. You know, you see some of these teasers and so on, it was not a good one working out. We saw something over 20 percent of it. That’s fine. And then typically, like we we like seeing things like this just kind of you know, it’s not something that is a fairy tale or anything. So this is a bit to start with our capital, as always. And I just say office actually offers. On acquisitions and because the reason why he offers it looks more looks more aggressive and. You know, whenever whenever somebody says, oh, I know it’s not really anything serious acquisitions, and that one within the courts are in the streets of real estate, which is in excess of some.
Speaker1: Subjects to successful to to ask. Ivanovo, that I actually don’t know, because, yeah, I mean, so you saying that. That they have done this. I mean, yeah, the subjects of that, but I mean, it makes it sound like there’s zero dollars raised or, you know, that it’s like because if I’m reading this and I’m skeptical, say, hey, so do you not think it’ll be successful here? So I just personally I just personally just keep believing that. It’s. Just seem to imagine that the your your and commission. OK, one more thing to offers on acquisitions and that one within the core targeted industries of real estate and mixed use commercial. Yeah, those are industries where you’ll see something about this. This is small thing. I don’t know what it is. I really think if I put the to 40 before the descriptor, you know, it makes it difficult to see what will exist in this so quickly through Abdelal managing partner. The subtitle. This is just small stuff, but so managing partner is experienced investor. Still on both. Because I remember the initial call I had with you, you do have you have invested in these properties and that was a big part of how you got into this business. And so that’s something to really kind of parallel here I’m proud of. So managing is an experienced. Experienced investor. How about telling us about real estates that.
Speaker3: It’s listed on both
Speaker1: Sides as an equity partner and a general partner. Yeah, you’re review, you’ve seen
Speaker4: That one,
Speaker2: That’s commercial real estate project.
Speaker1: Those are a couple of yeah. So anything you can say about so anything you can see here about about transsexual history, too, because I remember when we were talking like I think it was a month ago, you said that you you worked on you had several like it wasn’t it wasn’t in the tens of millions, but you had several. And if it’s if it’s if it’s something we’re still waiting to hear. But if it’s not, then maybe not.
Speaker2: But I think I think what I was conveying here is that, you know, come by the smallest and largest transaction, whether it’s helping secured debt, capital or investing, then that’s what the 25 million up is, is is is combined from my side and then on and then so it kind of combined. Everything is the one. I mean, this is the last seven years of projects that I’ve transacted and then.
Speaker1: I like that word transected. I think we need to include that it looks more so invested. OK, we’ll invest in investor who has invested. How about this exclusive transaction? Yeah, that’s. We’ve got it, so it’s like a package up 20 years with JP Morgan. I’m just going to any word about when we put in decimals. JPMorgan Chase, Vice President Omar. Took a package for winning here.
Speaker2: Oh, yes. Or do you want to see that retired from your mortgage or you want to say,
Speaker1: Hmm, I retired? It’s an interesting word like,
Speaker1: It’s an interesting word. Perhaps like, I mean, the word retard, I mean I mean, what do you think it means? It brings an era of seniority, experience and so on. But then we also want to convey that, you know, that I think we want to convey that there is still a lot of activity in place. Yeah, it’s kind of
Speaker1: Spences like something like, you know, he spent his tenure. He spent his career like he spent after twenty after, you know, spent a career at something like that. Because then it doesn’t like then we don’t know is like, oh, he retired as senior adviser. So the passive role. So just anything to make it seem and people are shallow. So you see this and then this is fantastic. So people are shallow. So they like seeing this. So. So I just do something like that.
Speaker3: So to piggyback on that, I think I’m in the same situation I had Myers, you know, 20, 30, 40, 50 million dollars, you know, looking in North Carolina, Georgia, Texas, matter of fact, looking for something in Houston right now. They’re not afraid of the prevailing cap rate as long as it’s a good deal of the B plus A minus neighborhood, you know, building after preferably two thousand will go into the 1990s. And I’ve got too far Myers and I’ve got three US buyers, you know, coming from the investment side, I have a lot of investors that are looking for deals, so.
Speaker4: We all did a good thing by.
Speaker1: The I mean, these are these are the things that we want to we want to sell. We want to oversell because obviously I mean, obviously, you in business complaining you can’t be done. So let’s put that front and center on. So you have you have multiple buyers and then more than what, the multiple.
Speaker4: Why not create a photo
Speaker1: Album of this serves you, Justin, so maybe we’ll see
Speaker4: You in. Right, right, right, but what you need to get out of this. We really have to make it
Speaker3: Look like Value-Add and I close other deals with these guys want for thirty six million, one for twenty six million. You know, of secondary markets. Tertiary markets seem to be where you can find some D.C. cap rates, like five, maybe six, specifically looking for something right now in Houston. So, you know, the cap rates are low down here. And so, you know, generally what they don’t want to do is get the best and final, you know, you know, so much on the excuse, like looking for market deals. These guys definitely have money and they have to approve the funds. And so, you know, the experience, just looking out to see what kind of multifamily probably unable to file for this, but they can close that close.
Speaker4: You know,
Speaker1: That’s what he wants to kind of close down and just be over. We can add more as we need, but in multifamily and.
Speaker4: If you add up to.
Speaker2: So you’re going to say are only thing secondary market or primary market.
Speaker1: I just honestly, I think we should probably just see what’s on the assets of multifamily so either more value add opportunities, right? Yeah, I. That’s why it’s so.
Speaker3: If sounds good to
Speaker4: Be able to get the property back in the. This is great.
Speaker1: I think it is great to be able to get a lot of I mean, put in, you know, emphasize this and obviously those initial discussions you able to cut through my opinion of the walls that are built up, because whenever there licenses experience, I think this is really a lot of exits. So investors may be moving at the option of the fund. After two years
Speaker4: Of retail
Speaker1: And investors may be redeemed at the request of the investor after five years or at a time, this is an interesting
Speaker4: One. That’s my challenge. And, of course,
Speaker2: I want to emphasize here is we’re able to do that because we’re doing a mixture of let’s say we have 75 billion dollars. We can do five deals and we do. We also bring good debt. So we really, really provide both the secured side of the transaction as well as the multiple equity multiple, which is the offset of the transaction.
Speaker1: That’s why I was more flexible there. Do you think that’s.
Speaker4: So I’m wondering if we should challenge this finding you also
Speaker1: Want to put this in perspective on this because.
Speaker2: Oh, yeah, because what I think what I said would make sense to me is if we can put that in into
Speaker2: Piece that as in most, we have that in detail in our presentation or our our business plan or presentation to the investors. But when you look at most investors. Or Syndication 26 to live in between 75 to 80 percent by having this hybrid model, we’re only going to transact live with between 65 to 70 percent.
Speaker4: Oh, good Lord.
Speaker2: So, so so the return of the multiple is is
Speaker2: Our how our energy strategy is stronger than most.
Speaker1: Yeah, because you’re not you’re not over you’re not over there. You have three more space on the table for the people who come in. So then you say so here you see here you see yields six and so which one should we put your.
Speaker2: Well, we trying trying to see. What we’re trying to see here is for these 16, we should nip over and over 15 percent are because most growth indicators or fundi tell you we’re getting it. So what they don’t talking about is Mid-Ohio. So otherwise we could say 20 percent if we wanted to. Right. So but I think 16 is good. It’s actually over 60 percent. Nikpai are is very strong. The yield on the 18 percent. So if you take into account the two percent performance fee. Because we don’t get there until after investors are paid. That’s where the interest comes into play.
Speaker1: Got it. Scooter Libby, it makes sense and then. United States. I wonder yeah, I wonder maybe it’s best to leave it, because honestly on the call that will clarify that on the deck and then the rest is just the components of
Speaker2: What you what I’ve seen in the past and all that. I’ve been with other partners with family office. They tend to gravitate toward the left margin. But also those numbers speak volumes as they see it. They’re going to look for the patterns. And if they do see that, I think it’s a conversation more than anything, because obviously the deal to deal with sicking are going to be 20, 22 percent, 23 percent. But we can’t say that. And we’re never going to say that would rather outperform vs. underperform.
Speaker1: Oh, you know, you have to I mean, when yeah, when the it’s and another was for a when they said 20 something percent and then the person just said, hey, what are you talking about? Sometimes a joke. All right. So then tell you what, this this is I think this is a good start to commence and then I’ll send the documents to support and then. Yeah, I just sit here and look at CNN footage, I look at it saying, you know, this is intended for this is intended for a granted based on the. Are you doing a. Eric E-Plus or.
Speaker3: Well, 75 is a deal, right?
Speaker2: Yeah, so, so, so, so, so here’s the deal. Here’s what we come to a conclusion about. So we’re doing we’re going to do roughly Blockchain to fund. At the same time, we’re usually ready for equity investors only, which will be one hundred million dollars. And then we’re using Recchi, which is the same structure, which is 75 million dollars invested into two different two different groups of investors to the benefit of the leg. It allows us to. Move with no limitation in Turbo’s except for Derazhnya limitation, which is 75 million, but direct to the benefit of directly as well. We have multiple even a greater exit strategy, as in if we if we outperform and we wanted to sell off the portfolio as a micro IPO or sell it to another rete, we can actually we can actually do a course with, of course, trading on the back end, basically sell off the asset on paper, basically, and then return the investor’s capital or negotiate a residual any way possible. We can give it up with the wreckage with everybody. Once you exit, you exit. But also whether it be ready versus ready for the rakti, it’s going to take longer. It’s going to take about two to three months to get the registration to clear before we can launch on a crowdfunding platform. So while we’re doing that on in tandem, we’re also talking to other investors on the redecide and then try to launch as we go because we can start moving and laying the groundwork. But different different exit strategy, if you will.
Speaker1: Got it. And yeah, I mean, and I suggest we have some associates, so yeah. When this is ready to go out, we have some associates connected with Kleman, some associates, they do these deals all the time and they have the manpower to handle these. So I look take a look at them. We’ve got two hundred thousand in working capital for somebody who was doing an acquisition of 70 million and it’s a hundred thousand close in preparation that last week. So, yeah. So now is a good target to commence with. And then and yeah, we’re getting some more people on public markets who may be able to assist with the Reigate so we can come back to that too. But I’m pretty excited for those two strategies in tandem right now. And I think it’s also over story and I think Adi so I think I had a comment as well, allow you to start with the weights.
Speaker4: This is Eddie.
Speaker5: Hi, guys.
Speaker1: How are you doing today?
Speaker5: Good. That’s great. So I’m good. Yeah, I used to make comment before I go to my comment about candidate’s experience. I think we need to. Yeah. And I think we need to differentiate between where they worked as a V.P. for 20 years or where that elected that the V.P.. Because what the what you have there right now is more or less connection, that you will walk there as a VP, so you just need to clarify from him what I walked out and meet people 20 years old, left as a bit
Speaker3: Of that left to be left as a V.P..
Speaker1: Yeah. Yeah, very. Thank you. That’s that’s not true. So then, yes. Afterwards when you’re walking
Speaker5: Or is we’re all in this together.
Speaker1: Yeah. That’s why the group sometimes the group structure helps for this reason.
Speaker3: They spent the last 10 years as a vice president.
Speaker5: Yeah. Okay, that’s great. Yeah.
Speaker1: That’s pretty good. Like we can just say intactness and. Is was it I’m curious of the entire title, was it some some subsector of some part of real estate appears on the title of your. Now, I want to put it there, I was my first 10 years with the private bank and on the investment side, then I went to global infrastructure. So we got. So just good his 10 years as vice president, I wouldn’t tied specifically into real estate or investment because the last 10 years was out of the private thing.
Speaker3: And if mutual fund
Speaker1: That chased that before I got here, it’s a different animal there. So after 20 years. All right. I’m really happy with this. I think this can get. I think it’s starting. I think this can get some good results in something like this to the email with some care. And then I think we can we can get some good results. Yes. I’d like to get in here to introduce you to a few parties like a Klemm, probably Cambridge Wilkenson, get this out in and it’s push, push, push. You can get some good results. So, Abdelal, I believe you actually raised your hand much earlier. So was there another inquiry there?
Speaker2: No, no, I think that makes sense. I have any question.
Speaker1: Sorry. No, Abdala, I meant to say I mixed up the two names.
Speaker5: All right. Yeah, well, the fundraising has been rough out there, but I know I know in the early stages, so I’m still encouraged. Most of the outreach has been more or less saying, no, we are not really interested. So I give it a bit more detailed feedback, more or less dingbats and something like what candidate and Dell are putting together something, the hundreds of billions of dollars that our fund is pretty small in total of twelve point five million. Well, on the on the positive side, we’re able to secure our safe secure because more or less signing the is probably necessary to properly Edmonton. OK, 15 units multifamily and forty six units, multifamily building in Edmonton. So in that regard, we try to more or less make our strategy be flexible in terms of people who are interested in investing to invest in their property, to invest in the fund. And those are interest in this and the fund and the. The risk under that, just to care about who invest in it for more or less like a syndication kind of arrangement. So does the strategy you’re trying to employ to ensure that we pollute as soon as we can. If you don’t for it close in the next three months, at least. Want to get the ball rolling?
Speaker1: God, it’s so OK, so you’re saying surrender to pieces here. So then you’re saying the Cilenti, you’re getting some rebuttals because one of the rebuttals is because of the font size. And then another one is because of the ability to so the fact that they won’t invest the fund versus just co-invest in the deal directly, right?
Speaker5: Yeah. Yeah, I’m going to go.
Speaker1: I was going to ask somebody 40 something units, how much does that translate over in dollars
Speaker5: 40 does about equity raises the equity raised about one point based on the total is about six million Canadian dollars. Yeah.
Speaker1: Got it. And then what were you saying about this army officer?
Speaker5: Yeah, a family of four is actually one of the principal of a family of actually told me that some of. They might, you know, want to invest in the in the in the property instead of investing in the fund, they should consider it. Of course I’m considering what I told them, what we’re trying to do on Monday for.
Speaker1: Yeah, like I remember when I was kind of fall back in another firm or some sort of deal, I kept on getting these same things I was getting. We had we had several investors and then they were willing to put money in if they had control over the entire thing. So it became more of like them being the acquirer. So that was something that we saw a lot. So then is this something? So I guess two things. One is increasing the franchise. Is that something that is is a possibility or would you rather fix it as soon as, you know, the the the co-invest in? Would you focus on one deal at a time? I two at the size, as I mentioned, and focus your efforts there or would it be continuing on the front?
Speaker5: Both strategies will be employed. So if you have got an investor that is listen, the fund, because the fund would keep investing in any of those properties, any of this investment opportunities. So what I am an investor is interested in investing in the fund. That’s great. It is just to look at a particular property and say, OK, it is where I want to invest and does good as well. For the fund was always the driver of that transaction of.
Speaker1: Got it. So then the suit. So because you’re doing both simultaneously, one thing I looked at two is. You know something that
Speaker5: Well, let me cut in. Sorry to cut in, let me just make something clear. We’re going out of the fund will depend on the feedback that we’re getting from, you know, the body language from whoever we are talking to them to accommodate that. But we’re going to the front, not as a syndicate or not. We’re not going out to syndicate the was a fund. What if they push back saying I to invest in the will to accommodate that if it comes to that?
Speaker1: Got so many of you saying that you’re flexible to the rebuttals, but then you’re going to send out a certain amount of inquiries based on the current structure you have set up, right?
Speaker5: Yeah, one that we bought is mainly on the but the big boys say, OK, we’re right. And when something’s on the list, millions of dollars, not it. So it’s pretty small from the for for the appetite. But you know, cause of course. But I think right now would probably do 20 to 25. I mean if we have somebody that will have us Ribot’s that kind of check, we try to keep it simple, keep it small because. We don’t want to go out and not close. Hmm. I could do on 50, I would do all that, but what the point of going to the market if you don’t close. So let start with something small and OK, worst case, and we’re going to close this. So next one, though, could do something big, maybe 50 or beyond that. But we want to go out some details, more or less money. You know, we’ve got.
Speaker1: Got it, so yeah, so then I think after so after a certain amount of I don’t know how many we’re sending out, I’m going to assume probably some probably 80 inquiries, 80 teasers. So I see like after a certain amount, because we have to get because we have to get information that is kind of statistically consistent. So if it’s like after let’s say I think actually my since probably fine, it’s probably an indication that we want to continue to get smaller checks. So how about smaller checks? This is what I guess of the people who reached that we reached out to do any of them do smaller checks. Is there any of them smaller investors? And what’s the response different compared to the larger family and so on?
Speaker5: Well, the the the feedback. But in terms of what investment of funds was actually from is a small sample sizes. So this family is actually based in Toronto. They’ve got ties with in the Middle East. And so and that’s what the feedback, even if the family of invest in the fund, they might be able to bring some, you know, family and friends to the fund. But they’d rather invest in the property rather than invest in the fund for the big boys is just pure. We don’t do that. So it’s too small for us.
Speaker1: Ok, got it. Yeah, it’s say, yeah, I’d see definitely the smaller check size and maybe even like double down on the smoke, the smaller check sizes and then yeah, I think we can probably just take a step back from those larger people immediately and just focus on smaller check sizes and what else they’re. So then one of acquisitions who has had the most the most success with Nick, conversations with one of the acquisitions.
Speaker5: I think is the family office in terms of.
Speaker1: Interesting. Got it. OK, so then he has to then I think we’re getting we have a lot more data and more context, would it make sense to discuss with one of these days, one of these investment banks that they look at? Twenty five million and above to persist alongside you? They can see Canadian companies. There is Cambage Wilkinson. They can they can take a look at it and then see if they can put it. What are your thoughts on that.
Speaker5: Yeah, I’m open to that, but what it was was like feel like because the fears of a reasonable.
Speaker1: Yeah, I think they do. So, I mean, I think they can be they can do for equity. I think it’s six percent on the back end, six to five percent.
Speaker5: Ok, I think.
Speaker1: Look, got it. Oh, yes. Yeah, let’s let’s play a bit of that and get some more context in this March excises and then and then just continue going from there and then because the and I guess the last question here, are you so are you advancing towards the call or is it just before any call or is it just like the email that they’re saying no or yes or no?
Speaker5: Well, is the image of the the family office we are we had about, I think, one chat last week, Thursday was actually on LinkedIn that reached out to the VA and we got talking and most of the emails outreach has not been that encouraging, you know, but most of the feedback I’ve gotten and the people I’ve spoken to has been by the VA. True. I mean, on LinkedIn that people I reach out to on LinkedIn actually had a family of I’m supposed to get back to in August because they’re just transitioning from they just need some transition right now so they can really look at any people to look at it. They’re interested for they’ll be in August.
Speaker1: Ok, got it. All right. Thanks for the call. Yeah. So, yeah, I’ll send over some, you know, one of the apps I can take a look in as well as obviously just getting more context on this March size and take it from there. Just keep on pushing.
Speaker1: All right.
Speaker2: Yeah, I was going to brief comment, Wolf Blitzer here on the other side. You and I talk offline sometimes. Yeah.
Speaker5: Yeah, I do. Yeah.
Speaker2: Five. I think the site is for I don’t know what I don’t know what constitutes a unless they actually administer account. But the it seems like the U.S. would care more toward equity investors or sophisticated investors. And so and so a couple of them that have worked in the past is is working with my husband. I think one of the largest deal with it as a as a GP was Iran first largest deal was about Natu million. And what we ended up doing is there was a family office who came in and the minimum the minimum investment criteria was five million and they were a six million dollar check. And we offer them. We offered to create a separate class of share. OK, so so like other investors may have 50 here, what not, and then that also allows them they wanted control, but we didn’t give them control. We said, hey, listen, if you if you want to invest with us, we’ll create a separate class of shares while everybody else is receiving eight percent or seven percent queef. We are going to give you 10 percent pref with no participation on the upside. Folks, and they and they and they took it. Well, zero management fee with a view of management fee, so I think there’s a lot of other ways you can negotiate that. But if if your family office can help you. Well, we want to take control of the deal. That’s perfect. As long as you retain 33, 34 percent of the deal on the capital stock, what that means is you can still do that. But they would be signing on.
Speaker2: They would be signing, they will be signing off of the loan. They will be guaranteeing the loan. They will be for all of those while you still maintain 30 percent, 33 percent of the deal. Remember, you can always run to fund in parallel. And I think a small shop, the larger your deal is, nobody cares who is signing the guarantee paper on the back end. But by associating yourself with that, I think it will create more credibility with other family offices because now quite an investment partner is X, Y, Z. So I’ve seen that works very, very well. And I think that’s part of why we we took this hybrid approach to offer both. But we would partner on the capital asset and then you can always create as many class of shares that you want to create as long as they can provide what they call a sliding scale. If I’m in the office, if you. Well, my minimum investment is 50 million. That’s great. That’s the point about all. We can create a separate class of shares for you and you will be the co-investment partner. But would you also be signing off of the loan? Because you have you need someone with the balance sheet to to to be the loan guarantor, the key principal. And if they said yes, that in itself just open up 100 fold more opportunities for you or for you, because Dundonald, if you’re familiar with the well, then they will give you more control as you go. OK, yeah, that makes a lot of sense, I appreciate that. Thank you.
Speaker1: Oh, I think that’s a really smart idea, because at the end of the day, you’re leveraging somebody else’s name to be able to break down all these barriers and that you because obviously, obviously, it’s an introduction to things. I mean, you know, people are just mentioning somebody’s name that’s already in sight of the situation. Instead of the deal, then you’re not going to get any. Oh, it’s not my mandate. You you actually get responses. So, I mean, that’s another thing to consider the. Are market. The market is tough, is this amount of like I guess just if it balances out with what the end goal is, then, you know, then hopefully that that will work. So let me let me sign off. I think this has been a good one. Everyone seems to have everything. Here we are. I’m just going to sit next steps. I’m going to send Abdelal and can the documents put us in adding some names as well and some additional information based on the campaign. And then we just continued to work and go from there.
Speaker5: I’m good, thank you.
Speaker1: Thank you, gentlemen. Thank you.