Moving from Passive to Active Investor feat. Seth Bradley

Hello, future billionaires. Welcome back to another episode of the Invest Like a Billionaire podcast. Today's guest is Seth Bradley. Very fun to talk with him. He's a friend of mine for several years and he's the chief legal officer at TribeVest, which is a really cool company. If you haven't heard of them, we actually had their CEO and founder on about a year ago, but they're kind of doing a really new cool push that I'm going to talk about in a sec. But his background, he's a big law securities attorney, spent a lot of time in kind of corporate world. Transition really to kind of becoming a passive investor, invest a lot of syndications. So he talks a lot about his journey, making that transition, kind of going to generate passive income, financial independence. But then he's actually shifted back to becoming an active capital raiser. And he's seen a lot of people make this transition that have been investing for a little bit and now want to kind of activate their network. And some of the stuff they're doing at Tribevest is making this really, really easy for people. So it's a really cool interview. We kind of hit a lot of his journey from his perspective as a securities attorney. What are some of the big things you got to focus on when you're reviewing legal documents, what are some of the red flags, yellow flags, etc. And then he kind of shares a little bit about some of the things and the trends going on in the kind of private placement, syndication, and capital raising worlds that if you haven't heard about some of these ideas, you definitely want to tune in to listen because it's pretty cool. And I'm seeing the same thing on my side of things. So you're going to enjoy this episode. He's a very, very sharp guy and a lot of great insights that he shared. I think you're going to love this episode. Please enjoy. This is the Invest Like a Billionaire podcast, where we uncover the alternative investments and strategies that billionaires use to grow wealth. The tools and tactics you'll learn from this podcast will make you a better investor and help you build legacy wealth. Join us as we dive into the world of alternative investments, uncover strategies of the ultra-wealthy, discuss economics, and and interview successful investors. Looking for passive investments done for you? With Aspen Funds, we help accredited investors that are looking for higher yields and diversification from the stock market. As a passive investor, we do all the work for you, making sure your money is working hard for you in alternative investments. In fact, our team invests alongside you in every deal, so our interests are aligned. We focus on macro-driven alternative investments so your portfolio is best positioned for this economic environment. Get started and download your free economic report today. Welcome back to another episode of the Invest Like a Billionaire podcast. I'm your host, Ben Frazier, and joined by a very exciting guest, Seth Bradley. I've known Seth for several years. He is the managing partner at Raise Law and the chief legal officer at TribeVest. And, uh, Seth and I have done some business over the years and different things. He's an attorney and a very experienced securities attorney and even has his own podcast called the Passive Income Attorney Podcast. And so he comes with a really unique perspective, both being an entrepreneur investor as well as an attorney, gives him some really unique insights in this space of kind of private placements, alternative investments, and super excited to have him on the show. So Seth, thanks for coming on, man.

Man, appreciate it, man. We finally got around to recording this. Really, really appreciate it, man.

Yeah, it was kind of funny because we reached out a couple years ago and, uh, we're gonna do something, never worked out. And then all of a sudden you're ready to do a podcast tour and pops back up 3 years later, say, hey, let's do it. And I'm game, man. So looking forward to doing this now. So give a little bit of, uh, context for your background, uh, for those that maybe aren't familiar with you and just kind of what you do and kind of the areas of expertise that you focus on as an attorney.

Sure, man. So I worked in big law for about 7 years, most recently at a top 3 globally ranked law firm as a real estate— started out as a real estate attorney, made my way over to securities. At that point, I started kind of getting that, you know, as most entrepreneurs do, that feeling like you want to do something else. You don't want to have all these bosses. You want to, get out there and do your own thing. But, you know, I'd worked pretty hard to get where I was, so I wanted to make sure that I knew what I was getting myself into. I had already been working with real estate investors and folks like that as my clients. Started talking to them, started talking to some of the partners in my firm about how they invest, what they do. Really learned about, you know, passive investing and making my way kind of to the equity side. And that's really where I, my journey began as a passive investor in in syndications. So I invested in a number of those and also invested actively. You know, I kind of did the BiggerPockets, you know, path where I listened to BiggerPockets. I did a, you know, a house hack. I did fix and flips. I did buy and hold single families, things like that, as well as passive investing in larger investments. And at that point I realized, hey, I've got this network of attorneys and other folks that I can raise capital from. So I made my way from passive investor to active investor.

Man. So you've done the full circle here.

I love it.

So started in Big Lot and your bio says you closed billions of dollars in real estate transactions over the past decade. So you've seen a lot of deals. I'd be curious because a lot of people that may be newer to real estate investing, newer to alternative investments in general, and just the world of private placements, they kind of naturally think, Hey, the only way I can do it is, you know, the BiggerPockets path, which is a great path if you want to go and, you know, do it actively and have a second job, so to speak, where you go and buy your own real estate and fix it up or work with contractors to fix it up. But you went straight into syndications, which in a lot of ways fits better for people that are working professionals and, you know, don't want to necessarily trade time for wealth building, already have a great income generator through their job or their business, and they want to just redeploy that into syndication. So what was kind of the journey for you understanding the world of syndications and really with your background in securities law and how did you kind of get comfortable with that and what was the journey for you diving headfirst into syndications early on?

Yeah, I mean, you really have to have skills, money, or time. Those are the three things you can really offer, right? So it depends on how much of each one of those you have as to what what your investment profile should look like and what you should get started in. I was actively wanting to participate in deals from the get-go, but I did already have exposure from my real estate practice to syndications and watching other people raise capital, knowing that those types of investments are out there. So I think I had an advantage there because prior to that I had no idea. The only thing I knew was kind of that BiggerPockets path. It's like, okay, well house hack into a single family or a duplex, and then rent the other side out and then fix and flip this or wholesale that. I didn't really know about syndications other than through my law practice. So I think I had that advantage getting that exposure and being able to transition to that quicker.

Yeah. Talk a little bit about, I mean, your podcast is called Passive Income Attorney and your big goal is passive income. And what was really kind of the idea behind that or why was that your primary goal and what does that mean to you?

Yeah, I mean, the idea behind that was to be passive. And I think we kind of, as entrepreneurs, we go back and forth. I think we all want to end up on the completely passive side eventually, but sometimes you don't get there as quickly if you don't go on the active side for a little bit. And I think I'm seeing that a lot myself. I did that. I started investing passively and now I went to the active side as an active syndicator, as a fund manager, raising capital and participating in deals, even on the operational side. Because you can accelerate quicker that way. If you, the more time and effort that you put in, the faster you can accelerate. Now, a lot of folks out there, especially passive investors listening, if they're doctors, dentists, lawyers, they don't have time for that. So they need to invest passively. That's probably the best use of their time because their highest and best use of their time is in their career. Being a doctor, a dentist, a lawyer, an engineer where they're making a lot of money in their active income, it doesn't really make sense that for them to start a fix and flip business or wholesale business. Or even a syndication business really out of the gate until you figure out what, what you want to do. It makes more sense to take that active income, put it into passive investment vehicles that don't take any time away from your practice.

Yeah, I love that. What'd you say? There's one of three things: skills, time, or money, right? And so one of those you're going to be trading to generate more passive income or wealth. And wherever you're at in the spectrum and what you're willing to kind of trade for, for that investment, I love that. It's very, Makes a lot of sense. So talk a little bit, you know, I want to get to what you said just in a minute, kind of transitioning, kind of blurring the line of going back and forth between passive and active. I think this is really interesting. I've seen the same trend, but before we get there, you know, a lot of our listeners, you know, that are maybe newer to syndications, newer to passive investing, they get a little bit shell-shocked when they see a PPM or a set of legal docs to review for a deal. They, they don't know what should I be focusing on, what should I be looking for, what are potential red flags or yellow flags. And, you know, from your perspective, and I'm sure you probably saw a lot of things early on, they're like, okay, that's interesting, or, um, you know, making that transition, you already had a leg up, uh, given your background. But what are some kind of key things that, you know, maybe even coming into it you already had a leg up, but now even 10 years later down the road have learned and things that you said, you know, hey, this is way more important than I thought it was originally from a, from a pure passive standpoint. Because I think that's a roadblock for a lot of people.

Yeah. Yeah. And, you know, it's intimidating, right? When you get that first PPM, which is going to have exhibits to it and the exhibits are going to be an operating agreement, subscription agreement, maybe, maybe some marketing materials, a business plan, things like that. You're looking at at least a 100-page document, maybe it's 200 pages. And if you're not a lawyer and used to looking at 100-page documents, that is intimidating. You're like, what am I supposed to do? This is going to take me, you know, this is like a month's worth of reading if I'm actually going to read this thing. And really most passive investors don't read it. But you should, I mean, you should at least start reading them because it gets easier and easier to read because they're all going to be very similar. They're all going to have a similar structure and similar pieces and things to look out for. I think one really important thing, and you might not be able to do this the first time, but you can start kind of thinking about it, but just really matching the PPM to the operating agreement because the PPM should really be kind of a summary, so to speak, of the operating agreement because the operating agreement is the meat of what's actually going to be the terms within that LLC, within that investment. And at the end of the day, if something goes wrong or not even goes wrong, but if there, if there's some sort of agreement or disagreement that needs to be figured out, you're going to look at the operating agreement, not necessarily the PPM, to figure out what the next step is. What is the mechanism for fixing this problem? So, you know, just making sure that the PPM accurately reflects what the operating agreement says is very important. And then taking it a step further, that the operating agreement and the PPM match what the lead sponsors are telling you, let's say in the marketing materials or the webinar, like just making sure that there's a clear picture between all the marketing materials, the webinar and the legal documentation is really important. And then sometimes if it doesn't make sense or there are certain terms that don't match up, you know, maybe they're not as meticulous as they should be and you need to look elsewhere. That's a really important thing to look out for. Kind of coming back to your question, you know, when you're first starting out as a passive investor, all you're really looking at is the returns, right? You're comparing kind of your projected returns in this deal to your projected returns in this other deal, and you might get a 2% more IRR return projected in this one than that one. So you're going to go with this one. But at the end of the day, those are just projections, right? Those are just projections and those can be manipulated. Those are based on assumptions from the lead sponsor and those are not the most important things. The most important things are that the sponsor and their track record, what they've done, how they've performed. And, you know, the market and the deal itself. But just those projected returns can be manipulated. So that's really, you know, it's important at the beginning, or at least you think it's important. And then later on, when you become a more wily vet in passive investing, you'll realize it's not as important as some other things like, hey, are your fees aligned? Things like that. Like, what are the voting rights? Like, what if something happens? And the manager is doing a terrible job, how can you possibly get them out? Like, what are those mechanisms? What are the mechanisms for a capital call when things go wrong? What, what happens? Those are the, those are the more detailed things and the nuances you need to look at as a passive investor rather than just looking at the projected returns.

That's a lot of, a lot of good nuggets right there. You just listen to that, skip back a few minutes and listen to it again because that's really good. I think You're so right, right? If it just, it can feel intimidating to look at a 100-page, 200-page document and where do I start? But just start at the beginning and just start reading it. If just gotta skim read it, skim read it. And just the more you get familiarized with these different document sets, the more they all kind of seem similar over time. And you can kind of notice the things that are common among different deals. And then you also kind of notice the things that pop up as, oh, that's kind of unique or that's kind of different than what I've seen in other deals, and that's maybe outside of the norm. It just kind of getting familiarized with it, you're going to pick up a lot on it. But I think you hit a few of the sections that I think are really important that a lot of people kind of glaze over because if you're getting— just looking at the— here's the IRR projection, here's where returns are going to be. Like you said, there's a lot of assumptions that go into what those numbers are derived from and I always come back to, from my banking background, risk-adjusted returns, right? Because every element of every deal, whatever return you're projecting, there's different levels of risk. And if you're taking a lot more risk in a particular deal or strategy or structure, the same level of return, it's not apples to apples, right? And so understanding what that is from a deal standpoint, but there's also risks, some of the points you made within the legal structure. And so you're saying go straight to the operating agreement as a starting point because that's ultimately what's going to govern the deal and the mechanisms for potentially firing the sponsor as a manager, or like you said, the capital call and the waterfall section, understanding how does— do profits flow through the entity and what are the splits between them? What are some things that maybe 10 years down the road now of investing, I don't know how many deals you invested in passively, but you look back and you're like, oh man, you know what? I read that section and I kind of knew that maybe it was a little outside the norm, but I was so excited about the deal. Didn't really, wasn't too concerned about it. Now looking back, like, oh man, now that was a good learning experience because now maybe I can't vote out the manager or different things that you would say looking back are more important than maybe you put weight on in the front end. And maybe some examples of, you know, especially right now, I think a lot of deals that people invested over the past few years, you know, unfortunately are requiring capital calls or are kind of headed in a direction that may not be good. And, you know, maybe it's the fault of the operator, maybe it's not, but if it is a fault of the operator, what mechanisms do you have and what voting rights do you have as a passive investor? Talk a little bit about that because I think that's going to be very relevant, especially over the next few years. Is sure, certain older deals are kind of not hitting the projections they thought originally.

Yeah, I mean, I think I already touched on most of them from a high level, but like, for instance, voting out the manager, like if the manager is doing something fraudulent or misrepresented what they were doing or, you know, really just doing a terrible job is probably not a reason enough to get them out. But it could be. If it gets to a certain, certain point. But that's really one thing to look for, to see like what the mechanism is like. Does it take a unanimous vote or does it take a majority vote or does it take a majority or supermajority of each share class, each membership class within the LLC? So it— and typically they're set up so it's really difficult to get the manager out, right? Because the lead sponsor is going to be the manager and they're the ones that are going to be making all the decisions and they don't want to lose control. So they wanted to make it as hard as possible and still make it legal to stay in that seat and not get voted out. So, you know, you will see some pretty onerous provisions within the operating agreement to be able to get them out. But there should be a reasonable way to do it, whether that's a supermajority vote, perhaps that's reasonable. So supermajority vote in the event of a misrepresentation, fraud, you know, any sort of like bad boy act by the manager, or if their bad performance reaches the level of, you know, negligence or something like that, there just needs to be a mechanism to get them out. That's just one example. And you had mentioned capital calls as well. So capital calls, it's like, what is the mechanism when the LLC or the syndication needs additional operating expenses to survive? What is the mechanism to do that? Like, can— is the first step to actually do a capital call? And is that capital call mandatory, meaning that the investors have to participate on a pro rata basis, or that's not typical? So if you— that's one thing to look out for. If it is mandatory that you do, and if you don't, then you're basically out or you lose, you know, an unreasonable amount of your equity if you don't participate. Then perhaps that's a red flag, right? Like if you don't participate, well, I should say the capital call should be optional. And if you don't participate, that's okay. But you will most likely be watered down. Your equity will get watered down on a pro rata basis rather than something above a pro rata basis.

Right. So that's an example where you're saying of, yeah, if it's, if it is required, which is uncommon, right? That's, that's that's a red flag potentially. Or if you get diluted at a higher than the pro rata amount is another negative. And you're exactly right. I mean, I think, you know, part of this is when you're investing passively, you're giving up control of operating the deal to the sponsor, right? And so that's kind of the trade-off is you're hiring experts, you're investing with experts, that hopefully know what they're doing so that you don't have to be doing the day-to-day stuff. And so it can be difficult to replace managers and, and, and, you know, have impactful voting rights that can change the outcome unless there's fraudulence or negligence. But I think it kind of goes to the point too of understanding what these kind of parameters are and what's normal. And then also, like, I think you can pick up a lot of what you're saying and just the congruence between PPM, the operating agreement, the offering memorandum, the webinars, and then really the alignment of interest, right? Because if ultimately, if the sponsor stands to lose alongside the investors, or if they're not just getting rich just off of fees and, you know, they don't have a whole lot of skin in the game, then ultimately it might not be, you know, a great deal. But if they have a lot of skin in the game, and even if it's written in these certain ways, it doesn't necessarily mean it's a bad a bad investment. So, okay, love it. Get a little bit in the weeds there for some people. And if this is, you know, um, you know, newer to you, I definitely encourage you, um, to just start this, you know, opening up the PPMs or reading them, and you're going to pick up a lot by doing that. And then just ask questions, right? And I think it's a great thing too that if you're reading the PPM and reading operating agreement, to ask questions of the sponsor. And that's usually pretty indicative of one, how well do they know their own documents? And two, how willing are they to address certain questions that maybe, maybe concerns to you, right? And I think you can actually get a really good sense of how they, and how they respond of what that interaction's going to be. So love that. Thanks for some of that insight, Seth. I'd love to shift a little bit. You mentioned something earlier I said I wanted to come back to is you kind of, you know, Seth said before, you know, the future of capital raising is kind of shifting and evolving. And I think a lot of people are realizing, and obviously the same thing too, right? I'm a coach in several masterminds for capital raisers and this fund-to-fund model is becoming very popularized. And people that maybe think, oh, I'm not really a capital raiser, or, you know, that's not my, you know, what I've learned to do, went to school to do or whatever, are realizing, hey, actually, I've been investing passively for a while. I have a pretty great network because I'm around a lot of accredited investors. I've done enough to kind of know a good amount and I can actually turn this into a business, right? And so talk a little bit about what the fund of fund model means and maybe someone that's in that boat where what you said is, oh, I think I'm going to go 100% passive, but then, you know, you're also learning a lot along the way and you have a network that maybe you can activate and also raise capital and get paid to do it compliantly.

That's right. And you said it, and I'm seeing it time after time where passive investors, they invest in a number of deals. And, you know, folks that are investing in these deals typically have a little bit of money and they probably have friends that have money as well. And their friends start asking them about the deals that they're investing in and they start thinking, hey, you know what, what can I— can I get paid? Can I have— is there a business here that I can develop, that I can build by bringing in all my friends and family that might also be wealthy, might be able to put these funds together and invest in the deal together. You can certainly do that, but you start to run into lots of securities, lots of rules and regulations that some people know about and some people don't. You'd be surprised that, you know, you see people out there raising capital in ways that they shouldn't do it. But what's great about the fund of funds model is that, you know, you're not what's called a co-GP. So you're not an active partner with the lead sponsor. That's kind of the, I'll call it the old way. And I, you know, I've been saying that the co-GP model is dead just to kind of put it out there that, you know, we shouldn't be raising capital with lead sponsors and then not doing anything else and not participating in the deal on an and having an active role. If you're a true co-GP, you need to have an active role in, in the deal. And that's kind of what deters past investors and doctors and dentists and lawyers and people like that. They already have a career. They don't want to take an active role, right? Like they don't want to do the asset management or manage the property manager or talk to tenants or anything like that. And that's where the fund-to-fund solution comes in. The fund-to-fund solution is really creating another syndication or another fund that invests into the lead sponsor syndication or fund. And that's where the name fund of fund comes from. Now, traditionally, the issue with that is, well, it does come with responsibilities for the fund manager. They have to put the deal— they have to put their own fund together. They have to put their cap table together, open a business banking account, form an LLC, get a securities attorney. You know, manage their investors, manage their distributions, do taxes, all those sorts of things. And so it turns into an active business. And on top of that, it's expensive because we are creating a second syndication, a second fund to invest in that lead sponsor or target fund. So that's the problem. That's always been the solution. The fund-to-fund has always been the right solution. But those problems that I just mentioned are why it hasn't been widely adopted. But you're seeing a big shift in the market as we're able to provide a more affordable option and a solution to bringing all those different services that a fund manager would normally have to go out and get themselves and putting it into a package.

Yeah, that makes a lot of sense. And so like we said, we're seeing the same thing where people are— they've been investing, they like what they're doing, they have their friends and their family asking about the different deals they're doing. And then they have the thought, well, hey, I mean, is there a way I can make money doing this? And what most people have done historically is co-GP model. And for those that are unfamiliar with that, is basically you raise money directly into the lead sponsor's syndication or entity, and then you get granted certain general partner shares for doing that. But, and you're the attorney, so I'm going to say it at very high levels, I understand it. By doing that, you are, well, you can't raise money and get paid for it unless you're a registered broker-dealer, unless you're a general partner and are continuing to operate the deal, the business, and have an active role in it. But most people that are just raising capital or just want to raise capital as, you know, on the side of whatever else they're doing, that's not a realistic expectation. And so what what we've seen, and I'm sure you've probably seen a lot more than me, is these different folks that are raising capital as co-GPs. And then, you know, this new sponsor has about 10 different co-GPs on the list, on the roster here. And it's pretty hard to make an argument that they're all actively participating in managing the deal because you just don't need that many people, right? If it's the same deal. And so then you kind of run into compliance risk and you just, you don't want to mess with that. I mean, that's just, let's leave it there. And so the fund of fund model's always been around. It's basically you create your own fund and as your own fund manager, you're exempt from some of these securities issues to basically raise capital from your investors into your fund. And then that fund invests into the kind of the mothership fund or the lead sponsor's fund. And by doing that, you, you know, it's, you're in the, in the, not in the gray area anymore where it can kind of be maybe not great from a compliance standpoint. And the challenge, as you mentioned though, is it can be expensive. Maybe it's a little complicated to know how to set it up. And I'm not really a professional fund manager. How, what do I know? But that's, that's what you're doing now at TriVest. And we've had Travis Smith on the podcast before. So if you haven't listened to that episode, probably a year or so ago. We'll put the link in the show notes because it's a great episode talking about TribeVest and what you guys are doing, really trying to, from my perspective, simplify the access and the kind of backend back office functions of both for passive investors and for fund managers to continue to increase access to more deals. So Talk a little bit about kind of what you guys do at TribeVest and to kind of help people, you know, both from a passive standpoint, this one to direct the investors, passive investors that don't really want to do it as a business, but then also kind of the new fund manager programs that you guys are putting together to help people that want to kind of activate their network, want to use this as a way to make money and do it without having to be an expert in all the backend side of things.

Absolutely. At, at Tribest, I'm the Chief Legal Officer for Tribest. I help create the fund-to-fund product that we have out there right now. It makes it simple, turnkey, and affordable for anyone to really start a capital raising business. All those things that I mentioned before, opening your business bank account, starting your LLC, drafting your offering documents, getting your EIN, onboarding your investors, creating your cap table, doing your distributions, doing your taxes. All those things you would normally have to put together and find different platforms and different people like attorneys and CPAs to help you out and put those, put the fund-to-fund together. We do that. We put it in a fund-to-fund, we call it a fund-to-fund in a box. And it's really a Lego block that you can use and invest in a deal like with Aspen. If Aspen has a fund, you can create your own fund through Tribe Best, bring in your 5 or 10 best friends that want to put in some money. You can carve out a piece for yourself. So you actually get paid a fee upfront. Maybe you get paid a fee during the whole period, and then perhaps you get a percentage of the equity on the back end. So it can be a very lucrative business for someone to get started. And because Tribest makes it so easy to do it, meaning put all these different services and things together for you, it really— anyone can do it.

Yeah, no, that's so cool. And we've worked with you guys and have seen it in action and, you know, to say fund in a box sounds almost trite because it sounds like, can you really do that? But it's cool because you guys have solved it and not only have you solved it, but it's also pretty cost-effective, right? I think one of the big challenges with the fund-to-fund is generally you can invest, if you kind of pool capital together in a fund, you can invest at better terms with a sponsor so you can have a little more margin that you can kind of get paid from and your investors still make the same returns. But if you have a lot of legal costs, a lot of ongoing kind of portal and back office expenses and tax returns, everything else, then it gets kind of expensive and eats away at the margins that, you know, you're hoping to, to use to pay yourself. So You guys have kind of created a streamlined, kind of off-the-shelf product that can fit the majority of, of offerings and make it pretty easy, right?

That's right. It gets really difficult to make it work. That's, again, the fund-to-fund, like we've talked about, it's always been a solution. It's just really expensive and really hard to put it together, especially for someone that, that isn't a professional capital raiser that just wants to put together $500,000, $1 million, $1.5 million, something like that. It doesn't even make sense cost-wise in the old way of doing it. You're going to pay a securities attorney minimum of, let's say, $15,000, maybe $20,000, maybe $25,000 to put one of these together, maybe even more. I used to work at a big law firm where it cost $75,000. It's crazy the expenses that add up. And that's just the legal piece. That doesn't include all the back office administration things that we talked about. Doesn't include engaging with a CPA to do your taxes. It doesn't include all those things. That's just the legal cost by itself. And Tribest has made it super inexpensive to be able to do this and to be able to do it time and time again. So it works with a $500,000 raise. It works with a million dollar raise. You don't have to raise $20 million to make it work from an affordability standpoint.

Yeah, that makes sense. So do you guys also have like any kind of education or different coursework to help people that are maybe wanting to make the transition of like, yeah, I think that sounds like something I could do. My friends are always asking me what I'm investing in and it wouldn't be that hard to go get 5, 10 friends to go and invest and create a fund. And, you know, but they just don't know. They've never done it before. They never thought about it till just now. So you guys have, I know you're really more given the solution, but do you also have like any kind of education or do you have resources you guys can point people to, to learn more about What does it look like to, you know, what was the process you had to go through to kind of go from idea to actual, you know, making a fund?

Yeah.

Yeah.

I'll tell you, we don't have any formal legal or sorry, formal educational things out there at the moment, but we are working on that. But we have made it so simple that we can jump on a Zoom call with anyone that's in is potentially interested in being a capital raiser and putting together a fund of fund and walk you through a pitch deck. And it should be pretty clear what you need to do because we handle basically everything. You put together your investors, you put together your terms and how you're going to get paid, and then we'll be able to do kind of all that back office, all that legal, all those things that you don't want to know or don't want to do. We handle all of it.

Yeah. Makes sense. Awesome. Well, kind of last question. I'd just love to get your insights on just the market in general for alternatives and private placements. And you've obviously been in this space for over a decade, and we've been in this space for about 11 years now as an operator. And it just feels, I mean, it's already been the amount of capital that's kind of come into kind of private equity, into real estate, into private placements in general. It's totally shifted the game, but it also feels like we're still kind of early innings, right? It still feels like people are just discovering this for the first time. And even the conversation we're having of, you know, activating people to raise capital, right, in a compliant way, that's just an easy way because you guys are creating a system that just reduces friction to continue to increase more capital to come into the space. Do you feel the same thing? Are you seeing— I know there's kind of some potential proposed regulations to increase the requirements for accreditation and, you know, there's always a battle going back and forth on that. But what's kind of your sentiment just at a broader level of just the alternative kind of private placement space in over the next 10 years?

Yeah, I mean, I'm bullish, right? Like we're kind of in a little bit of a lull right now. You'll hear that capital's a little bit harder to come by. Investors are holding on a little bit tighter. But that's because there's actually deals out there right now. I mean, right now is actually a great time to invest. And right now is a great time to invest because prices are, are depressed a little bit. Investors are a little bit reluctant to invest. There are less buyers in the market because a lot of them are getting kind of washed out. But there are some properties coming online through foreclosures, through things like that. This is where, you know, when you talk about during good times, you're like, oh man, I cannot wait until there's blood in the streets and I'm going to pounce on it. I'm going to pounce on those opportunities. That time is right now. It's not, it's not, you're, you can be waiting on the sideline for years and you're going to, you're going to miss it. It's right now. Right now is the time to figure out how to invest, how to raise capital, how to do deals, how to make them work. Because right now it's difficult to make them work. That's, that's the truth of it. Right now is the time to act. And you're going to, in 5 years from now, for instance, you're going to look back to this time and say, man, I wish I would have got started because we're going to be in the upswing again very soon.

Totally. No, I was just, I was one of those guys I follow who's been in real estate for a long time. He was talking and reminiscing about, he bought, I think he said 3 dozen single-family homes between 2009 and 2011. Right? And he's held onto them since then. And, you know, looking back, he's like, the only thing he wishes he did was buy more, right? Because it's— but at that point it was, you know, everything was on sale. Everyone's like, real estate's over. And it's, it's so hard to be contrarian. I think it's Warren Buffett that said, be, you know, fearful when everyone else is greedy and greedy when everyone else is fearful, right? And it's, it's a simple idiom that makes sense, but it's really hard to do. And right now we're kind of in that time where investors are reticent. There's a lot of pressure on deals right now that's kind of creating a great buying opportunity. You know, we're seeing it. I know you're seeing it. And you know, I think it's, I agree with you. I think it's a great time to be jumping in right now. And Seth, thanks so much for coming on, man. What's the best way for folks to get ahold of you and learn more about your law firm? Uh, Raise Law and Tribe Best if, uh, they want to learn more about what that looks like.

For sure. Uh, the best place where I keep all my links is sethpaulbradley.com. Um, you'll have links to Tribe Best there, links from my, uh, law firm and social media. It's all posted on there.

Okay, we'll put that in the show notes. And, uh, definitely appreciate you coming out today, Seth. This is awesome.

All right, Ben, appreciate it, man.