LIVE: Q&A for Emerging Fund Managers

Welcome on, y'all.

Welcome on.

We are live today. Day 3. Y'all didn't know this was going to happen. We had a day 1 on Thursday and then a day 2. Today we're going to do Q&A. So if you have questions, drop them in the Q&A bucket. If you're a VIP member, how is this going to work? We're going to bring you backstage. We want to verify your email and then we're going to bring some people live face to face with me and we will talk and answer your questions on funds. Now, while you queue those up, so people in the chat, hello, good to see y'all. Peter, good to see you. William, good to see you. Vivian, Ariel, we are live today. If you missed the last couple days, I'll just do a quick recap and then we'll dive right into the offer or into the Q&A. If you can share my screen, if you missed the last few days, I'll make sure it's plugged in. Am I on the wrong one? Let's try this. So the last few days we had quite a lineup. So we brought on, the original plan was 3 fund managers. We ended up bringing on 7 fund managers over the last 2 days. So we had 3 and then it was like 3 more and then we brought on another one. So we, if you missed the last 2 days, we had Mr. John S. Pennington Jr. on, we had Jeff Stewart, and these are, again, I'll go a little bit slower, $28 billion family of funds. He did phenomenal. You can see the recording yesterday on YouTube if you missed it. Jeff Stewart. We had Seth Merrill, co-director of 2 massive funds in Utah. Jeff has a $60 million industrial real estate portfolio. We then had Dustin Gomez, a $20 million private equity fund, also a coach in the Black Card community. We brought on Lincoln Archibald, manager of Fund Launch Partners, $31 million GP stakes fund, $300 million AUM. Jared Jones manages a $200 million real estate portfolio, and Ben Julius has $150 million of projects in real estate under management. And yet it was yesterday. Not too bad. We gave away $1,000 of gifts, 2 full fund entity legal setups, and a gift to every single person that stayed to the end. Yesterday, if you missed it again, you can see the replay from yesterday. We also dropped our merch store, fundmanager.com, and we're going to queue up questions in a second. If you guys— this is the idea. I'm wearing some of the merch right now. So like, for example, you can see my hat here, Fund Launch Partners. I was sick of getting this crappy merch. We'd go to Custom Ink and we get terrible merch. We finally said we got to get high quality merch. So if you can see my hat here, we wanted like really cool stuff. So you can actually take your fund logo. You can see there, that's Fund Launch Partners logo there. Put it onto like a really high-quality quarter zip and have it embroidered, printed out. You can send it to your investors, etc. If you see, if you go back to my screen here, this is fundmanager.com. You can see different options, colors. We take our logo out or put it on the small little corner, and you guys can add custom stuff or order our merch if you'd like. Again, fundmanager.com is the store code. Furthermore, the last couple days, Black Card— we talked about Black Card quite a bit. Black Card's about $35,000. We are doing a Crazy thing we have never done in Black Card before. We gave everyone a golden ticket. Here it is, $7,000 off, down to $28,000 if you booked a call. If you see at the top of our screen, our original goal was $1 million of credits. We blew past that. We extended it to $2 million. We blew past that. Now we are at $4 million. We are at $3.41 of $4 million of Black Card credits received, which is awesome. So if you want to, the link is still live, funlaunch.com/7KOFF. You also can text that number below. If you don't know what Black Card is, here's the incubator, 4-phase program, 1-on-1 coaching, personal account manager, full fund legal built out for your fund. We have the mastermind, which is the Black Card workshop events, the private Slack channel, the capital raising events, Fund Launch Partners, all included in the mastermind. So you have the incubator, it's our full proprietary platform, the legal docs are included, the personal account managers, 1-on-1 coach. We have 30+ 1-on-1 coaches, 50 office hours per month. happening. And then you get the tools, Fund Launch 360, your full marketing backend backbone, which is CRM, investor management database. That's what I use almost every single day to run my 2 funds. You have the Fund Academy, partnership discounts, etc. And then as bonuses for people that join right now, you get essentially a month and a half for free. Black Card is a 12-month year. It's an annual program for the core piece of Black Card. After a year, you then go to Legacy. You can talk to our team more about that, but essentially, For people that join right now, we're giving you a month and a half for free. So essentially, your official start date would be January 1st. Furthermore, we'll place interns into your fund pending they qualify and they match. So we got— our last cohort had 130 interns from universities all over the country. They'll place in your thing. And then we also get a ticket to our January 29th and 30th event at our headquarters here in Salt Lake City, Utah. You get to come out. If you see that picture here, this is our basketball court just down the hall from me right now. We have a full-court basketball court at our office. We're going to come for 2 days, break down how your fund is working, answer questions. We're also going to do a little skiing. If you're a skier, you can come to Utah. We got the greatest snow on earth. You can come check it out. All right, so there you go. There's the offer we dropped yesterday. You're welcome to go still join and book a call with our team to talk more. All right, for today though, let's get into a little more Q&A. Okay, I talked about the million dollars of credits. I'm going to jump down here. Let's talk Q&A. So let's talk. Questions on funds, queue them up if you can in the chat. Actually, if you see my screen here, actually I can see your questions. What we'll do, start queuing up some of these in the chat. If you would like to come live, drop them in the Q&A section here and then my team will have— they want to verify your email that you are on the VIP list. If you are not a VIP, you can go upgrade and we'll drop a link down below, but you can actually talk to me face to face. We are going to bring you on in just a few minutes and we are going to answer questions from there. Last thing I'll say before I do that, Bridger, what authority do you have to talk on these subjects of funds? I actively run 2 funds, 10 portfolio funds with a combined AUM of over $300 million. People have paid us over $43 million to help them with launching their funds. There's a Stripe screenshot just from a few days ago. So yes, we know what we're talking about. We have $4.8 billion of reported client AUM through Fund Launch, over 2,000 Black Card members. We've launched 138 funds in the last 22 months. That's about one— that's since the beginning of 2024. It's about a fund and a half, 1.5 funds per week, every single week. That's New Year's. That's Christmas. Every week we're pumping out about 1 to 2 funds a week, every single week. Fund Launch also has hit the Inc. 5000 for fast-growing companies in America. Here you are, number 2652. This is, you know, if you, if you calculate this down, that puts us in the 99th percentile of fast-growing companies in America, which is pretty darn cool. Testament to our people. We've helped people in all these different types of categories. You can see here, you can read for a little bit. Sports gambling funds, forex, commercial real estate, almond farm funds, single-family real estate, seller finance, farming funds, shipping container, Canadian funds, etc. We can help people. We've already helped people do all these types of funds. I also run 2 funds. I run Ugly Unicorn, approximately a $25 million crypto investment fund, and then I also run Fund Launch Partners. We raised, uh, we're now at $31 million. We've oversubscribed this fund, and we actually have portfolio funds that we partner and invest into. So we have one in oil and gas, industrial real estate, venture capital, real estate funds, single-family real estate venture capital, and opportunistic VC. We get to see and work with the behind-the-scenes guts of these funds. So yes, I know a little bit about this field and what we're talking about, because I do and practice this every single day. And here's a picture of my family. I have 2 kids, 9 chickens, and then we're just getting started. So that's a little background on me. Let's dive into Q&A today. Let's start. Let's get into it. So, uh, if you can cue that up, we're gonna, um, I'm gonna switch screens here and we're gonna go over to, uh, to our stuff. Do you, do you have a first person queued up for me? Is that what I was seeing there?

Maybe, maybe not.

Uh.

We'll give our team a second if we have somebody queued up.

All right.

You're going to see my iPad. I'm going to use quite a bit of this, the iPad, to answer questions. Maybe, Christian, if you can just ping me whenever someone is ready. Would that work?

Yeah.

Just tell me when someone is ready to answer questions. So, we're going to use the Funnel Launch Formula quite a bit. As you see here, we have a lot of our subframeworks here. So, I'll zoom into like different structures that we use, how funds are built, how they are stacked on top of each other. So, as we go through questions, to give you a Just an overview. This is the Fund Launch Formula. On this side, you have the deal and strategy, the frame and structure, and the— we want to get verbal and capital commitments. Okay? Then we are trying to cross to validation. We want to validate your fund, go to the legal and fund formation, then launch your fund, then go to the fund management side, which would be capital markets, asset management, and firm management. Okay? So with that, let's dive in. I can give a little bit bigger of an overview. If you have somebody, Christian, queue them up for me. Do we have somebody yet? Almost.

Almost.

We are working behind the scenes. We are going to— again, if you have a question you want to talk face-to-face, type it in the Q&A. Our team will bring you on as a panelist. They want to validate that you are VIP and then they will promote you to be on screen with me. We will talk for a minute and then I'm going to try to go fast through questions they've told me. We are going to kick somebody off and we will come back. Okay, questions in the chat.

This is a—

we'll start with this first one. You know, why don't, like with the Funnel Launch Formula, and by the way, if you don't have a camera, that's okay too. You can just type in the chat. You don't need to come on screen. Some people want to come on screen. That's great. You don't have to as well. I have a question I would be happy to ask in person. So James, yeah, if you wanna come, we'll cue James up in the backend. Well, I guess I'll wait until he comes on. Let's do this one. Asking on legal and formation. So, number one, what's the cost? Legal cost. And, you know, a lot of people with the Funnel Launch Formula want to go to legal first. It's like, hey, I want to get the lawyers, like, help me get this set up. The reason we have the Funnel Launch Formula Is because many people tried to do this first. They'd go hire a lawyer. Lawyers are great, but they're sometimes very expensive. We had a— I had a friend, he spent over $500,000 launching his fund when he really should have spent maybe $30,000 to $50,000 launching his fund. So a 10x increase on cost.

Wow.

Why?

He started, he skipped this section. He skipped over here. He went right to legal first. He then launched his fund and then went and talked to real investors. The real investors gave him a bunch of feedback. They were like, hey, you need to tweak X and Y and Z. And so he said, okay, yeah, I'm going to tweak those things. He went and talked to a lawyer. The lawyers happily tweaked those things at $800 to $1,000 an hour. And then he went back to the capital markets. He wanted to tweak a few more things. He came back. They tweaked it again. He wrote his legal docs over like three or four or five times. Now thankfully, his fund turned out successful. They raised I think hundreds of millions of dollars. But still, this cost was drastically increased because he didn't he didn't work with the fund launch formula. What we tell people to do is this: start with and. Sorry, this little orange box keeps popping up here. Start with your deal and strategy, then frame out the fund and then go talk to real-world investors. Get feedback on your fund idea. Use the iteration process. What do they like? What do they not like? Go ask for advice from people around you. There's an old saying I love. If you ask for advice, you'll generally get money. If you ask for money, you will generally get advice. So go ask for advice. And what will happen is people will give you advice. You're going to go tweak your deal and strategy. You're going to go tweak your frame and structure so that you— and I'll put this in big letters— you build a fund investors want. That's the crux of Black Card, the Fund Launch Formula. What we teach is build a fund that investors want. Don't just guess. Don't just guess. Yeah, I think investors are really going to like this. I'm going to go launch and build this fund with expensive lawyers and launch it. And then, wah, wah, wah, like no one invests. Most funds never actually get investors. Before the Fund Launch Formula, most funds actually launch. They have a big legal bill. They go pitch investors and they get $0. And then they're stuck with a $50,000 legal bill. And, you know, it's kind of a hard spot to be. What we tell people to do is do this iteration process. You don't go to launch until you're certain. You have validation that you know, oh yeah, $5 million is coming in. When we launched Ugly Unicorn, we did this over and over and we kept iterating and tweaking and tweaking. We then got validation. We then launched. We knew exactly what we wanted to do. So our lawyers, it was easy. We just said, hey, we know exactly what we want for our fund. They built it in a couple of weeks.

Boom.

Bam, we launched our initial launch. We had a $10 million launch of capital, just under $10 million of capital committed to Ugly Unicorn on our first close because we followed this. Alright, so that's a— hopefully that answers that kind of first question of that. Let's do, I see Vivian looks like is set up. Is that correct? Okay, I got a thumbs up on Vivian. Vivian, welcome on. I'll see if I can hear you. Let's just test audio and mic real quick. This is our first one. Vivian, welcome on. Good to have you here.

Hey, how's it going?

Hi, how are you? Good, good to have you on, Vivian. Good morning. So what can I help you with, Vivian?

So I want to start a mental health education cost fund. I'm just wondering, is it a way to stand out and is it possible to start such fund? Because I really noticed there's a gap in church organization and church, like Christian organization. They don't have the mental health professional that able to help to fix the problem that the parents tried to fix and flow them into the church. Basically, the parents, it was like something wrong with the kid, they put it in a church setting, but the church is not ready to equip. So I want to raise the fund where—

So what would be the use of the funds if you raised— and how much money do you want to raise?

That I don't know, but I guess I would need it— need to raise the funds so that, um, that is a good amount of funds spent on education. And the other part would be hiring some, um, professional to work in the church setting.

Okay, so you want to hire some professionals in the church. So, and, and what else would the money be used for? Just the money is used to hire some professionals and kind of build out some mental health Options for people?

Basically, I want them to educate the church and, and the church mission organization how they can refer them to proper way to, to get the trainings, because lots of the laymen is like work for free for the church. So they wouldn't have—

So it's education and you want to hire professionals to help train on mental health.

Mm-hmm.

Gotcha.

Okay. Very cool.

Very, very great mission. And I think that's, that's awesome. My question on a, on a fund, a fund is gen— now there's 2 different sides here. When I, when I'm talking an investment fund, funds are trying to get an investment return for investors. Now, to me, this sounds like a charity organization, which is also great. And I would do something a little bit different than a full-out fund. This could be through a charity. A charity goes and hires professionals and trains on mental health, which can do very, very well. If you're going to run an investment fund, you're generally trying to get a return to investors. I'm guessing it doesn't look like there's a clear return on investment from this, like dollar-wise, is there?

No, not right now, but it could be. It could be added to it like that the professional who actually participate can actually get more client and they can actually teach in a university. Like we can pair them up to university to, so that's like trade-off, right? You get hired in a reasonable price so that you can promote your private line and you also can teach in university and all that stuff.

Gotcha.

Okay.

Well, now I think this is a cool mission. What I would tell you, I don't think this is like a traditional fund model. You probably wouldn't work for a fund. Let me now, let me share a caveat though. So, I'm going to zoom in on this. Like Christian churches or just churches or organizations in general typically are a— they're under a charity exemption, which is a 501 exemption is what it is.

Awesome.

What you can do as a church, which is cool, is you use all the same tools as a fund, But you do it within a church. It's called an endowment. And what this does is you raise money, you get donations. So, instead of raising like investor money, you get donations.

Hmm.

Like a church already gets donations. And you put the— instead of just spending them, you put them into essentially a pool of money, a fund. And the fund generates returns. So, imagine if You got donations of $50 million.

Mm-hmm.

You put that into an endowment. The endowment then goes, let's just say, invest that into this, you know, a mix of— let's just be basic here. Let's just say bonds. They buy government bonds that generate 4%, let's just call it 5% for simple math. If your government bonds are generating 5%, That's $2.5 million per year of free cash flow that you can use to go hire professionals and educate the church. And they— you still— and every year now you have $50 million producing that. Now that's just bonds. If you invest in the stock market and real estate and other things, maybe you produce a 10% return. That would be $5 million per year produced. And that would pay for the functions of the church. You following?

Yeah, sounds great.

This is called an endowment model, and I think this could work really well for this. And you can do, you know, you could do mental health stuff this year, and as this endowment gets bigger— maybe this endowment is $500 million and you produce 10% a year— that's $50 million a year that you could use to, you know, hire professionals, train, you know, do all sorts of cool stuff in the church. So It's the same idea as a fund, but you do it under a charity, 501. You make an endowment and that endowment manages the money to produce a return to, you know, then hire professionals, et cetera, in the church. Is that making sense, Vivian?

It's making sense. Isn't that one kind of like a hedge fund?

It'll operate very similar to a hedge fund, or you can do real estate. You can do all different, uh, all different investments through that.

Yes. Okay.

This is how charities like grow. You know, you move to an endowment model. Like many churches are like borderline bankrupt always, you know?

Yeah.

It's only when churches move to an endowment structure is when they have a lasting long-term— like they're not gonna— that church isn't gonna go away. You know, they have a $50 million pool that produces money every year. They don't need to go beg their constituents for donations every Sunday. Like, hey, please, we're about to go out of business. Like, help us. They can, they can last a long period of time.

Does that make sense? All right. That sounds cool.

Yeah.

And how do I approach people to join the endowment?

Well, I would, I would find whatever church you're already working with. I would go present this opportunity to them. You would need, you know, you, you would probably want to put together a good investment team. of saying, hey, we have 3 or 4 or 5 individuals that can manage this endowment. Hey, churches, or maybe you get 5 or 10 churches together and say, hey, let's pull some smart people together and let's go run this endowment together. And that this is a, this is a model to grow. So, it'll take a little bit of time. You got to get churches on board. But I think, and the nice thing is you under— go into this donation section. So, you ask people for donations to the church. They get tax write-offs. Because they donated. And that's how you'd start that. So, there you go, Vivian. Is that helpful?

That's very helpful. Thank you.

Very cool. Good questions. All right, let's go to the next one.

Thank you, Vivian.

Yeah, the endowment model is phenomenal for charities. Like every, you know, Harvard's endowment, I think, is up to $20 billion, I believe. So, Harvard has an endowment just like this. They produce, let's just call it 10% per year would be $200 million. No, wait. Sorry. I'm I'm my math is wrong. Two billion dollars would be ten percent per year. Harvard's endowment produces two billion per year. That pays for a lot of the stuff that Harvard's doing, or they put it back in the endowment.

So there you go.

All right.

Do you have somebody else queued up? Okay. William in the chat is the next one. I don't think he's coming on live, but I'll hit this one in the chat. Um. I know you have touched on 3, this one, 3 core functions. Do you have observations about the number of GPs? Oh, here we go. Do you have observations about the number of GPs, such as for a hedge fund in terms of efficiency? And if at what point does it become too many? Do you have an observation about how the number— oh, number of GPs, I get you. So, if you're building a fund, you have the general partner and the management company. This is You know, effectively, I'm gonna just say, oh shoot, we're too fat here. Let's make our size smaller. Alright, this is essentially you, us, okay, we are the GPs. The question he's asking is, you know, how many, when's it too many chefs in the kitchen, right? It all comes down to size, I think, to make sure that there's enough money to go around. I think when my dad mentioned 2 days ago, when he retired, they had something like, 43 partners in their GP. That's a lot. But again, they were managing, I don't know, $28 billion. So there was some cheddar to go around. We just underwrote a fund. They had raised $30 million. Let's see, $30 million. And they had, I think, 7 GPs. And the, like the largest GP had like 20%. If you do the calculations on how much money you make off of a 2% management fee and 20% carry, it's not very much when they're split 7 ways on only $30 million. And so now you sit there and you go, well, it's 7 people. Yeah, we're not going to make much money on $30 million, but we're going to build a track record so that next year we can raise $50 million. And the year after that, we can raise $200 million, and then it makes sense to have 7 GPs. So it's a— there's no right or wrong answer. It comes down to economics. Is everybody incentivized correctly? Sorry, I got to put that back. Everyone incentivized correctly to make enough money in their, you know, in their thing. If you look at an investment committee, a very— so an investment committee is The people who make decisions for a fund. So, our fund, I believe we have, I think we have 5. It might've just— is it 5? 5 voting members? The way we run it, let's just call it 5 for this example because we have 5 here on the— I think we had— sorry, I'm confused because I thought we had— we have like 2 non-voters and then we have another board observer and then we have 2 that vote in one. So anyways, let's just call it 5. When we do like an investment committee, We bring together smart people. 5 is usually a good number. 3 can be a good number too. You can, I mean, you can be as small as 1, just 1 person, but we bring together a deal. A deal enters the investment committee. We all review the deal separately and we vote on a yes or no on this deal. We have to have a supermajority to approve, meaning 4 out of 5 members has to approve a deal. We have to be aligned on performance. So meaning all the IC members make money if the deals do well. And then, you know, you encourage meritocracy. So steel and straw man debate is what's encouraged in an investment committee. So I don't know, William, if you have any follow-ups to that, but I'd be happy to answer them. I'm guessing you would choose GPs to cover the core functions of investing, operating, raising money?

Yeah.

So on a startup fund, There's generally 3, well, not even a startup, a big fund too. There's 3 roles in every fund. Here they are. All 3 of these roles need to be covered. This is the expert investor, someone that's very, very good at obviously investing. They know real estate inside and out. They know all sorts of cool stuff there. Secondly is the fund manager. This is the person, I'm this person. I'm very good at the compliance, the legal, putting stuff together. That's that role. And then the final one is money raiser. In my first fund, I did all 3. So like Bridger, I did this, this, and this. That was my first one with Blackbridge Capital. My current funds that I run, so Ugly Unicorn, Bridger does this. Dan does this because he's very good at crypto. I'm good at fund management. And we both Raise money together. In Ugly, or excuse me, Fund Launch Partners, which is my other fund that we run, Lincoln is here and Link is also. I mean, we all kind of help raise capital, but Link helps here. Bridger helps here. And then fund management is Adam Campbell. And then I kind of just help on different spots. So that gives you an idea. Every fund is different. Now you're going to ask in the follow-up is like, what's the equity split? You can do whatever is negotiable. I have seen though, generally speaking, it's kind of weird actually. I keep finding funds. It's about a third is here of equity. About a third of equity is here and about a third of equity is here. Now, in a startup fund, you know, everyone's wearing every hat. You know, when you're a startup business, everyone's helping with everything.

Right?

They're all helping each other. But there's core functions of a certain person, like their core responsibility is expert investor or money raiser, right? But everybody helps raise money. Everybody helps look at deals. But again, you're looking at core functions of partners. Yeah. Good question, William. All right. I think I got a thumbs up. Next person that's ready. Who is it?

James Thomas.

James. All right, James, welcome on. Uh, we'll, we'll promote you to live stage here. James, you there?

Thank you.

Yes, sir. Hi, Bridger.

Hey, good morning. How you doing?

Oh, great. Thanks for having me.

Yeah.

Yeah.

So I'm, uh, currently raising, starting to raise for my first real estate deal. It's a 40-unit apartment deal located in Indianapolis, uh, showing a lot of great returns and also showing a lot of great interest. Um, I want to make sure I'm doing this right. It's going to be planned, set up as a 506, and, um, I also want to make sure I do it like you mentioned. You see, some people set up the funds and they can't get anything into it. I really want to make sure that, you know, I'm convert any, you know, funds. So, couple questions. One, can I—

How much, how much are you raising on the 40 units?

$1.2 million is the raise. I have $2 million and $2.4 million in equity, or in debt.

Okay, so $1.2 million equity raise and then $2.4 million in debt?

Yes, sir. So total purchase price is Uh, $3.2 million, but then I'm raising for some CapEx, about $350,000 to $400,000 for CapEx.

$350,000 to $400,000.

Okay.

Of CapEx.

Okay.

But you need to raise $1.2 million of equity. That's the big question here is the equity raise.

Yes, sir.

Cool.

Um, so my question is, is if I have some friends who can also help me raise some equity, am I allowed to offer them And award a percentage of the equity raise, so to speak?

Great question. Yeah, let's touch on that one first and stay live with me too. So, if you see my screen here, sorry, I wrote sideways here, but so if I get you correct, 40 units, $1.2 million of equity. The question is, I have friends that want to come help me raise. There is a rule. Unless your friends have a license, you can't pay them a fee. or a commission for helping raise capital because they're selling securities. And you can't be paid a fee or commission to sell a security unless you have a license. Does that make sense?

Yes.

Now, there's one caveat. It's called the owner's exemption. The owner's exemption allows an owner on the GP to sell their own securities, meaning like you, can go raise capital and sell securities on the fund because you're a GP. Now, you don't earn a fee or commission. You just earn the proceeds of running the general partner. Does that make sense? So, if you had some friends that were like gonna bring capital in, what you could do is bring them in on the general partner, like help that, like they're a part of the fund with you. Does that make sense?

Yes. So, they have to be a GP in order for that to be an exempt?

Yep.

Yeah. So, how— now, and this is how I would structure this if I was you. I would structure this as a, what I like to call a single asset fund.

Yes, that's the plan.

That's the plan.

Cool.

So, for people on the call that don't know what this is, it's the same thing. You set up a GP, you set up a management company, you set up a limited partnership, just like a normal fund. The one caveat is it's just doing one asset. So, you're LPA and your PPM are much more simple. It's much cheaper to launch. I think our program is, you know, I can't remember. It's like $8,000. That covers your legal cost, everything to do this instead of like $30,000. It's much cheaper to do a single asset fund. You come launch this and you bring just— it's just for one deal at a time. So, what I would say is you bring in friends on the GP.

Okay.

What you can do too is they become, you know, I would vet these people. And then do clawbacks. So, you would give them equity. Let's say you got a buddy, you're like, hey, you get 10% equity for helping me raise money. And then also, I would clarify, it's other functions. It's not just capital raising. They're doing lots of— they're on the GP. They're part of the general partner, but their core function might be capital raising. If they don't raise capital or don't fulfill, they get clawed back. You could do like a 50% clawback. So, if they don't raise capital, Or they only raise a portion of it. They, they start at 10% and they, uh, oh shoot, where's my undo? They get clawed back to maybe 5% or 2% or 1%. Does that make sense?

Yes.

Sorry, I'm writing notes at the same time. By the way, I have been looking, uh, to get this, uh, single asset fund, uh, for a long time. This is actually my plan to do through year.

Sweet.

That's awesome. Is that helpful? Any other questions on that?

Yes, it is. My other question was, what's the best way for me to get commitments? What's the right way for me to get commitments prior to setting up a fund? Is there documentation that I need or?

Have you raised money before?

No.

So, and, but have you done real estate deals before just with your own money?

I've been studying real estate deals for about 2 and a half years now.

Okay.

So this is the first time you're kind of doing it officially?

This would be my first one across the finish line, correct.

Cool. Okay. My— what I would tell, and I already said this earlier, but I tell everybody, you already— it sounds like you already have the deal lined up.

Yes.

I would—

so I'm sorry to go back to this. So you have the deal lined up. You have it, I think, somewhat framed out, it sounds like, of how you want to do this.

Somewhat.

Somewhat. I would go— whoever you already have on your list of like people that are mentors to you or you look up to in real estate, whatever it is, I would go take it to them and ask for advice. So, I would like this next meet, like Monday morning, I'd text or Tuesday text 10 people and say, hey, man, you've been phenomenal. I'm looking to do this deal. I've never raised money like this in a single asset fund before. Could I— do you have 10 minutes? I could just pitch you the deal and I would love to get your advice and have you poke holes on the deal for me. And make it a small window. And I like precise numbers like 11 minutes or 13 minutes or 17 minutes. Like, and they're like, okay. And like, hey, we'll hop on Zoom. I promise it'll be quick. Just give me 17 minutes. And I want you to poke as many holes as you can in this deal because I want to do this the right way. 9 times out of 10, people are like, yeah, okay, well, I got 17 minutes. So you hop on Zoom or you meet them up or you go to their office or whatever, make it easy for them, and then get the advice from them. They might tell you to change stuff.

Great.

Take their advice. Take tons of notes. Or they might say, hey, this is awesome. Can I put money in? That's what you're hoping for as well. So it's a good— that's how I'd approach it. I'd start hitting up everybody you can next week and just tell them, hey, I'm putting this together. It should be live in the next few weeks. What advice do you have? Am I thinking about this the right way? I mean, I've looked at this deal from every angle possible. I think this is a winner. I mean, the last 2 and a half years I've been looking at real estate deals. I've passed on 50 deals until this one. This one to me looks phenomenal, but you tell me, like, here's all the pro forma, here's the rent roll, here's the whatever.

Yeah.

I've gotten it professionally underwritten by some people that I really trust. Um, they've given me the thumbs up on it. I've been getting weekly, doing weekly updates on this on a Zoom. Just inviting as many people as I can. It's every Sunday at 4:00 PM Eastern Standard Time. Would I be able to send my link in the chat if anybody's wanting to take a look at my pitch?

Sure.

Yeah.

Throw it in. When you join Single Asset Fund or Black Card too, we do that in Black Card all the time or a Single Asset Fund. So yeah.

Awesome.

Yeah. I'd go ask for advice. So there you go.

Thank you, Bridger. You've been great.

Thank you very much.

All right.

We got our next, uh, next person who we got up.

All right.

Bruce Taylor is up next. Bruce, welcome on, Bruce.

You there?

What questions do you have?

Hi, Bridger.

Hey, Bruce. Good morning.

How you doing?

Very well.

Thank you.

What can I help you with?

Here's my— I actually have 2 questions, but I can make them really short. The first one is a very general question, almost softball, but not quite. I have a quite sophisticated board and partners, and our venture will be the raise of what we hope would be a large PE firm. Maybe green bonds. It was mentioned twice in the session on Thursday. We operate in the data center world. That's our—

Okay.

That's a commercial real estate, industrial real estate asset class with high technology components. The pushback I get from my board is that they feel that I have been pressured into a close. And then they, while we'll be on the phone, they'll go to ChatGPT or whatever they're using and do a reputation search on FundLaunch. The common thread of all of it comes back to, um, what appears in any number of searches. I've done this myself, so I know. Overpromises, underdelivers. Um, I would like to have you address that in a way that I can address it with my, my recalcitrant directors and partners. Um, And then, so that's, that's the first question. So, I'll let you deal with that one and then—

Yeah.

Let's talk about that. So, you're talking in relation to Fund Launch, your board is hesitant to have you join Fund Launch because they feel like you mentioned overpromises or underdelivers or anything specific that you want me to address?

It's not that. It is when I presented to them looking for my first payment to fund launch, to actually get in action. They said, well, we don't like the pressure. We need to take time to do diligence. And while they're on the phone to do that, they get this feedback. That is kind of generally all in the realm of overpromising, underdelivering. So that really is the question. How do I deal with these people in such a way that I can act and get seated for what it will be, I think, a quite large fund launch?

Well, I would say, and we can just go through it. If you're, you're welcome to take time on it. There's a couple things you can do. So number one, Fun Launch, we have a 14-day money-back guarantee. So you're welcome to join Black Card. If you don't like it, there's a refund over 2 weeks. You have essentially have a 2-week trial on Black Card. So you can just come test it out. Like I'll put my money where my mouth is. If you come in for 2 weeks and you're like, ah, this isn't what it was promised up to be, then we'll just give you your money back. That's that makes it pretty risk-free. The second thing is we're, you know, right now we're doing this promotion for money off. But if money's not a concern, you can wait and take time. That's fine as well. Um, let me, uh, I mean, I just asked chat myself and you can see the screen.

Here we go.

So look at ChatGPT. Uh, I asked, let's see if you can see my screen here, give it a second. What's the feedback of Fund Launch as a service? Should we hire them? I mean, we're being transparent here. It's up, this is up to you again. Uh, positive. So comprehensive service offering. Their website claims they've helped 300 funds launch. $4.8 billion of client AUM. Community network value, focus on emerging managers. What's to watch out for? Testimonies are exceptional, not average. So we have a strong disclaimer. These experiences are exceptional. Yeah, we, we, whenever I share a testimonial, we have a, we have a disclaimer that says, you know, it takes work. Like these, the testimonies we share are obviously people that love Fund Launch. You know, if you look at the pricing range, bigger pockets, are they worth it? You can go look at, you know, these guys have never heard of us on BiggerPox. You go look at different forums on Reddit. You can call some people, but you can go read. Actually, let's look at. You can go read the Reddit forums. You know, it was a mixed thread. We've been in this a long enough time. Like, we're not scared of. Let's see what one it pulled up. This is SafeMoon. We got to pull it up.

Funlocks.

Let's see. So like, we're not scared of people going and looking like. Okay, anybody worked with Bridger Pennington Fund Launch? Like we can just go to Reddit. Before Fund Launch, I couldn't even spell LP. Now I whisper preferred equity in my sleep. That's pretty funny. Let me be clear: Fund Launch didn't change my life; it straight up restructured it.

Wow!

Okay, so like a really good testimony right on Reddit. You can go down. I had a buddy join Fund Launch for a few years. I think the price was around thirty to thirty-five grand. He actually went and launched a fund and is killing it. Kind of mad I didn't partner with him. He said it was pretty legit. Black Card was so useful when we started my last fund. Grateful I was able to be a part of it. So like you can just go read or can you see my screen? Is it glitching out there? Oh, let me try one more time. So you're welcome. I would just show the board like we're not scared of this. This is a public review board on Reddit. You can go read these. Let's see. Try one more. There we go. This person, I've been in Fund Launch on my second year. I'm also in Black Card Legacy and Alt Street, which are programs throughout Fund Launch. Here's the deal. If you're serious about starting a fund, I don't know. That's from Chris. You can just go read them. So I don't know. I joined Black Card in 2024. Been attending Fun Launch events in the last couple years. You can go read these full testimonials. So I would tell your board, like, chat summarizing things. So given my recommendations back to ChatGPT, yes, you could hire Fun Launch. They have a lot of cool things. Before you commit, do due diligence. Go look at case studies. I tell everyone, go do due diligence. Go see if you can do this yourself. Go look. Go look on Reddit. Go look at testimonials. Go look at other stuff. You know, I we will be totally transparent. And furthermore, you can come just try the program out. And if you don't like it, if it doesn't match whatever I if I said something that didn't match up, there's a full 14-day money-back guarantee. You're welcome. We'll just send your money back. So I would tell if I was on the I'd say, hey guys, let's just try this thing out for two weeks. Here's a bunch of Reddit threads we can go look at.

Whatever.

I mean, that's what I would say. So is that is that helpful, Bruce?

It is helpful. Thank you, and I will do that. Yeah. And then I have a keep keep going.

Yeah. What's your next question? Oh, he's done. He had he had one more. Is he still there? Is he out? Oh, he's I guess he Bruce, you there? Bruce. Okay, that was his question. Maybe we'll see if he can come back on. We'll go to somebody else. Maybe we'll come back to Bruce.

How about that?

Who's up next? Okay, come back, Bruce, if you can. Alan Cartwright, I guess we'll bring you up and maybe we'll come back to Bruce in a minute. Alan, you there?

Thank you.

Hey, Alan, can you hear me?

Yes, I can.

How you doing, brother?

Good morning.

Pretty good. How you doing, Bridger?

I'm doing good. What can I help you with?

All right, so I'm looking to do a VC fund, and, um, I'm trying to figure out, you know, basically some of the strategies to help, you know. Um, I, I have a target far as, uh— let me just first ask this one question. Is it normal or is it okay to have one investor cover your whole fund? You know, um, I'm trying to do like a $10 million fund, and I, I had a— I have a particular investor that I have a relationship with that, um, I want to approach them about this fund. The relationship I have with them is not a fund relationship, but they, they're in the space of just investing in things. Um, so yeah.

I'd say on that first question, uh, It's people call it a they call it a fund of one. So this changes the dynamic of a fund. People do it. There's sometimes we we got approached by somebody that said, "Hey, we'll take down your full hundred million dollar fund." They ended up not doing it, but that they were approached by you know they're interested in that. Usually what happens, they want because they only have one investor, they you know they can push you around. They're on the investment committee. They're like a partner with you. They're not just a passive investor usually. They're usually much more active. I mean, because it's the whole fund. So, there's usually reduced fees. There's— they have a lot more voting say. They're like partners with you essentially, which can be useful sometimes. Going forward, if you're trying to build a firm, like long-term to build a fund 2, fund 3, fund 4.

I am. I am.

If you are, yeah, sometimes, like if you're gonna go raise a fund 2, People will say, well, your first fund only had one investor. Like, it wasn't really a fund. It was just you helping this one investor. So it just changes the dynamic of your story as a firm, for better or for worse. But, you know, it is kind of nice to be like, hey, I don't have to go raise from all these investors. I can just have one person come in and fill the whole fund. That's a business decision for you to make. Both paths, I think, can work. The path of having, let's say you had 100 investors versus 1 investor. 100 investors, a lot longer to raise, a lot harder. You got a lot more people to deal with, but you probably get, you know, you can actually charge a 2 and 20. This builds you a bigger investor pool. If you do well with 100 people, they'll hopefully tell their friends and whoever people, and then when you launch fund 2, you'll have a diversified investor base. Having 1 investor saves you time. You probably have, you know, maybe you're doing a 1 and 10, so you get less economics, but it's much easier. When you go to a fund too, you only have one big investor, uh, which could hurt you or could help you. So it's kind of 2 different paths on your fund journey.

Gotcha. Gotcha. And, uh, my next question was, I've seen you do, uh, on the whiteboard, um, where you, you talk about the, um, the 80/20 and the 2, and then you say that first 8%, um, you know, that first 8% goes to the The investors, does that, is that same structure for like a VC or is that just like PEs and stuff like that?

Yeah, it's a good question. Generally speaking, many funds do have a hurdle rate or a pref, preferential rate of return. So yes, VCs generally do have something like this is a, let's just call it an 8% pref. So preferential rate of return. Uh, the first 8% of all returns goes to investors, then there's a 2% catch-up, then they split 80/20. So it essentially ensures you're getting over the hurdle rate before we start splitting 80/20. But not all funds have that, just some funds have it. Um, I would say it's common to have it though.

Got it. Yeah, got it. And that 8% references to like Can you, just because I'm a little confused every time I hear that, how does that break down into like a dollar example?

Yeah, let's do, we'll go right above it here. Let's see, let's make sure our sizing is good. So now, and I'll share one more thing with VCs. Sometimes VCs say, hey, all principal is paid back first and then we split. That's another one. But let's just do the 8% example for a second. Uh, let's do simple math here. Let's say we had, um, $10 million in a fund, and this is a venture capital fund, and we have this pref. So, 8% on $10 million would be $800,000, right?

Mm-hmm.

So, the fund needs to pay back $800,000 to investors before the general partner makes any carry. Or any performance fees, and that's 8% per year.

Yeah.

Now, venture capital funds usually take a couple of years to like produce returns. So, let's say that you're 3 years in. What that means is you've got to hit this pref for all 3 years. So, you've got to do $2.4 million paid back to investors first. before you start making a carry. Then, then this would happen. Then this would happen. Now that's one, that's how the 8% pref works. Other firms do this. Like I mentioned, they say, hey, it's $10 million deployed. We're 3 years in, we start getting returns. Some funds say all $10 million needs to be paid back first because that's the principal. Principal is all paid back and then we start splitting. There's no pref after that. That's the pref. Just getting back. And then we just split 80/20.

Okay.

And during that whole period though, there is a 2% management fee being drawn every year. So, you are getting $200 grand a year. Every year is being paid for 3 years and then you're paying back all principal and then you're splitting 80/20. You following?

You said— I followed exactly. You said the 2%, the 2% is every year for 3 years, or is that a— are you— can you determine the years?

Well, just in this, in this example, I was sharing 3 years. That would be just for the perpetuity of the fund.

Yeah.

For as long as the fund is running.

Yeah.

Gotcha. Okay. Got it. Got it. No, that makes sense. Very helpful.

Yeah. Very cool. Good questions. All right.

Thank you.

Did great. We'll rotate out. Maybe we'll have you come back on if you have more questions. That sound good?

Yes, sounds good.

Is that all right? Okay. Thanks, brother. Thank you. Yeah, good questions. Did Bruce in the chat? Oh, in the chat. Let me look it up here. Let me pull my screen up, and you can if you have somebody else queued up, queued up from there. Bridger, what's your prediction for the BYU game today? It's a great question. As you know, I'm a BYU fan. BYU is only good like once a decade, and we're good right now in football. So we're playing Texas Tech in 10 minutes. So, uh, we're 8-0, baby. Number— I think number 8 in the country. Texas Tech number 9. And I can't even watch the game because I have YouTube TV, so I have to freaking— I gotta go to someone else's house to watch the game after this. We're recording it. I don't know, BYU. I don't know is I'm not I'm not gonna say like they're they're they win on a hope and a prayer, man. Those guys we are eight no on a hope and a prayer, and I hope again today we get another hope and another prayer. If we win, it'll be by the hand of God. You know, like it's I don't think we're that good. I think you ask any BYU fan, we're like we're not that good, but we figure out a way to win. It's kind of crazy. We we might win again today, so I don't know. I'm rooting for them. I hope they do well. Hope Texas Tech does well. I hope the you know Big Twelve does well. So anyways, pretty good. Um, I know they, they canceled that ESPN, uh, that ESPN contract. Yeah, BYU is funny. They've been the underdog in all 8 games they've played this year. Like, they're playing non-ranked teams and ESPN Sports Betting, whatever, always puts them as the underdog. They've been the underdog in all 8 games. They're the number 8 team in the country. They're still the underdog this week. They were the underdog last week. They were ranked number 10 in the country. They were underdog last week. Like, they're always ranked as the underdog, which is kind of fun.

So I don't know.

We'll see how they do. I didn't see his question.

Did you see it?

Just can you read it out? It says, my intention is to form— Oh, I see.

Okay.

Same question. My intention is to form the first PE fund because of the nature of the industry sector, data centers. The projects are capital intensive and quite large. Are we better served to form a fund one for a lesser amount or go for the larger pot, $150 million to $200 million? It's a good question on sizing, Bruce. So I would say, Where are we at with Bruce's question? So, we've had this internal question with Fund Launch Partners. So, I'll just give you our example. So, our last fund, we raised $30 million and we actually oversubscribed to now $31 million, $31.5 or something. We had about, and we're right now prepping for a fund 2 for about $50 million next year. And also, we're prepping for a GP follow-on fund. We're Penciling it out here. Now this is so this is kind of where it gets interesting. We're penciling out an $800 million to a billion dollar raise in conjunction with our fund too as a follow-on investment and or GP seeding fund. Now that seems like a huge leap, but let me tell you where our logic comes from. So we have right now about eight institutional investors. That love what we're doing. They were going to come in on Fund 1. We already have good— we had about 20 and we came down to about 8 that really like us. Now, these 8 institutional investors have told us, you know, one of them, their minimum check is $10 million. The other one, minimum check is $25 million. But most of the time, and other ones like their average check, that's minimum, average check is about $50 million, to $100 million. And we keep meeting with— we've met with them, I don't know, a dozen times. These people love what we're doing. They keep coming back to this sizing question. And what they tell us is, hey, we can't come in on a $50 million fund because our mandate shares that we, you know, our minimum check, let's just say, is $10 million. And the max we can be is 10% of the fund, meaning the fund has to be raising at minimum $100 million for us to even consider you. And they've told us, we really want to do a deal with you. Please raise more money. Does that make sense? We've moved to a different category of investors. So we've been— I mean, we're doing this right now. We're doing the deal strategy frame and we're soft pitching right now to see if this has sizing. So again, this is early. But what we're sizing is about an $800 million to $1 billion fund. And these groups are saying, Bridger, that's perfect. Yeah, pencil us down for $20 million or $50 million or $10 million, whatever the number is, because that fits our sizing constraints much better. So, Bruce, I think it comes down to the type of people you're going to raise money from. And I go back to this. which is this capital raising matrix. There are 3 different categories. There's high net worths, there's family offices and institutions. Most people on their first fund are, and this is what we did, we ended up raising pretty much from this group, high net worths and small family offices. Average check is $50K to, you know, $1 or let's call it $2 million. That was our average size. We got to, you know, $30 million.

I don't—

I think we had like 70 investors, something like that, 80 investors there. But now we're saying we have this group of people we've been developing over here, institutions, and we're saying, let's make a product that matches them. So I think it comes back to sizing. Data center investment is a pretty hot topic right now. A lot of groups are looking to get into it or have already got into it. I would, again, I would do the Fund Launch Formula. I would start with deal and strategy, frame structure, and start soft pitching this To see what interest you have. $200,000 might be the right size. There might be a bigger size, who knows? Might be a smaller size. So I would start just seeing your investor base and what they're thinking there. Hopefully that helps. Feel free, if you have a question as well, drop it in the Q&A. We're going to validate emails and I can bring you on live from there. You have somebody queued up for me? Yeah, Robert.

Robert.

Welcome on, Robert. Let's bring you on live here.

You there?

Perfect. Thank you.

Hey, Robert. Good morning.

Yeah.

What can I help you with?

Hey, how's Bridger doing?

I'm doing good.

Fabulous. Hey, actually, Alan, and when Alan was on with you, he answered, or you answered most of my questions on that structure. And one of the things that we're looking at is pretty much trying to get in the commercial real estate side with the long-term leases, your credit-rated tenants. And most of what we find that's out there has a 7 to 8.5 cap structure and seeing what your recommendation is for some form of a breakdown to the investors, to the fund.

So, to clarify, the question you have is how do we pay investors? What the splits are with investors?

Yeah. On something of that style of What are you thinking right now? Well, one of the things we were looking at is trying to get them an investor, a minimum of 6%, where they have the ownership for the depreciation structure and, and, uh, uh, benefits. We weren't really looking at charging any fees getting into it, but then having the management fee, uh, to the property and then trying to figure out the right split, especially if the cap rate's only 7.5%.

I see. Okay. Is there value-add you're doing or is like, it's going to sell for a multiple later, do you think? Or is that what you're underwriting for? Or is this more of just a cash flow type of deal?

Cash flow type of deal.

Okay.

And this would be 6% per year?

Yes.

Gotcha.

Okay.

Um, and then they get, obviously, the depreciations. You're not charging a management fee, you said? Like to the fund, but you'll have a property management fee?

Correct.

Okay.

Um, and what, how much size, like how big are these? What are you thinking?

Uh, most of them are ranging around $2.5 million.

Okay. $2.5 million.

Um, change it to make math quicker and easier.

You can.

Gotcha.

Okay. And so the question is splits to investors. Um, hmm. So, oh, you still got me there. Okay. I thought the cord fell off. Yeah. 6%. It comes down to appetite, right? For investors. Uh, well, I guess, do you have investors that have an appetite for 6% a year?

Uh, got a few, but not enough to do what we're trying to do. Yeah. I mean, we're looking for quite a bit more, but it's hard to do that if you're doing the long-term leases. Like, you look at a Tesla, you can— you're lucky if they even offer a 5% cap.

Yeah.

Like, because I'm sitting here, like, if I— if you were pitching me, I go, well, okay, the risk-free rate right now, I can get a bond at 4.5%.

Right.

So, okay, if I go with you, I can make 1.5% more. Is that risk premium worth it? Like, is it worth the additional risk of having a manager and property and stuff when I can just have risk-free 4.5%? And if I was to answer, I'd probably say no. Like Bridger Pennington, I'd say, ah, no, unless I guess, unless there's some like you said, big depreciation play of like, hey, we can do a bonus depreciation and your taxes are going to be way reduced year 1 and you get 6%, maybe I'd be more interested, right? Which I think that's part of the offer. So, how much is the depreciation like year 1 through year 5?

If you're looking at a million-dollar property, you got a 39-year depreciation structure on it. After you take off the land costs.

So—

Can you, can you do accelerated or bonus depreciation or no?

There are some that can be done. Yes.

But it's just 39 years split up. So, it's not huge then. It's not that big.

Correct.

Gotcha. Okay.

Hmm.

Because I, yeah, I would sit here then and say, ah, I don't know. I'll, I'll do something else. Like if you were pitching me, why don't I just buy bonds? And then if I need depreciation, I can go, there's other ways to get tax depreciation if I need it.

Right?

Is this to get to 6%? So, now, if you were at, you know, 9% or 12%, okay, maybe that risk premium is worth it at that point. Yeah, I can make 9% with these guys and I get appreciation, you know what I mean? So, that's what you're gauging is an investor's appetite for that risk premium compared to the market. Now, the reason I ask about value-add, so that's So anyways, and I think you know your properties better than I do. I'm just kind of, I'm doing simple math here. What I, a lot of people go, okay, well, let's go back to the drawing board here and look at these properties. Are there other ways we can generate revenue or income from these properties? Most real estate operators, what I have seen, they, at least in fund management, some do this, but a lot of them say, hey, we can get more juice to our investors if we do. That's why a lot of people go value-add. They go value-add on these properties. They hold them, lease them up for 3 to 5 years, and then they sell them. And they make a bigger return on the sell from appreciation or they refinance their investors out. So you get, hey, yeah, we made 6% per year. You got depreciation and we got appreciation. And we actually sold these things. And the average net IRR over X number of years, over, you know, 3.5 years was 15%. All of a sudden you're like, okay, that feels more on market with a real estate fund than others. Does that make sense, Robert?

Absolutely. Because the other thing you've got on some of these things, they've got a 2% annual bump on leases, which doesn't add up to a lot in that number. And they also have up to 3% bumps every year. So, there is increasing, but it's not enough to get somebody's appetite wet is what I was looking for.

Yeah.

And one more thing I'll add, and this is just for everybody on the call, and you already know this. With deals, this is why, like, if I was looking at this just, again, face value, you know the deals better than me, but face value, I'm like, ah, this doesn't seem that appetizing, right?

Right.

Like, as a team, you guys need to look at 100 deals or 1,000 deals to do, you know, a couple at the bottom. You're doing, you know, 2 to 3 deals. Like, Fund Launch Partners, last year, Lincoln just shared this yesterday, we looked at, I guess I'll use the same funnel here. I'll change colors. Last year, we looked at 1,200 deals we underwrote and we did 10 deals. Because we don't want just good deals. We want phenomenal deals, right? We, you know, the average deal pays 6%. Our deals pay 10% or 12%, whatever the number is, right? And that's why you're hiring us as fund managers because we weed through all the crap of average deals to phenomenal deals. So, yeah, that's how I— one way to think about it. I'm trying to think of other ways you could structure this. Now, one other thing I would— I guess I'll say one more thing. I'm just giving you ideas. Again, it's your property, your deal. I'm giving you one more idea. You could raise debt. Was that the plan that they are like, they're debt investors to you or are they going to be equity investors? And does that terminology make sense to you?

Absolutely. Yeah. I was looking at it both ways on doing something like this and the numbers just don't pencil out to get a line of people that say, I'm willing to do it. And I was looking at your ranges. You know, what do you have to pay these people to get them interested in it? And you pretty much already answered that question.

Yeah.

So yeah, I'd go, yeah, I think you gotta go back to your team and figure out, I mean, I would just tell you on market, what I see for real estate funds, the low, low end is like 8%, 9%, and that's very stable assets, you know, not $2.5 million. These are $2 billion assets. Very stable, bigger, you know, and then real estate funds pan up to about, I would say, 20%, 22% is probably a range. The average I would say is, you know, around 15% to 16% is what I would call on market for real estate funds. That's what they're targeting as an IRR. So that's kind of what I would, I would try to find deals that you can get into that range of being on market. And what's going to happen is you're going to have You're gonna have 2 or 3 deals crush it and be up here. You're gonna have 2 or 3 deals that for whatever reason do horrible. They're gonna be down here. And the average, the blend middle will be around here is kind of how that will work. So, I would try to find deals that have more, more, a little more alpha, a little more meat on the bone.

Yeah. And like, for example, there's a construction one for building a 28-unit condo project. Investors actually get 10% return and it would be on a monthly basis on what's put in. And then they would have a split on the— when the condos sell, then they'd get a profit share on top of that split.

Okay.

Is that more interesting or?

Yeah, that's— I think it's interesting. And again, I'm spitballing here a little bit. What I tell people to do is actually go talk to real investors. So like follow the Fund Launch Formula, which is what we're just talking about is kind of deal and strategy, the frame of how to pay them. And then I would go just kind of float this around. Hey, I'm just floating an idea. Would you be interested at this level? And you're going to get some feedback. Nah, like for me, just probably not. No, 6% is not enough. And you go, oh, that's interesting. So you're going to come back, you're going to tweak your deals, you're going to tweak your structure, and then you're going to go get more feedback. And then you're going to keep doing this until you find— you're going to find eventually investors go, yeah, that— yep, I will join that fund. And that's when you know you got something, you've got validation. Sorry, my thing keeps moving here. Golly, come on, iPad. All right, here we go. You get validation and then you move over to launching. So I'm giving you one opinion. I would go get 10 or 20 more opinions from other people and they'll tell you as well what's on market or off market.

I greatly appreciate your time. Thank you.

Great, great questions. Great little thread there. That was awesome. Um, great. By the way, if you have questions, queue them up in the chat. Um, we'll bring you on live in the backend for VIP members. You can come on live.

So, go.

You'll— we'll test your email and then we can bring you on live. I'm getting a thumbs up. Who we got next? Alan Cartwright. Alan, come on, come on to the stage here. Uh, let me grab a drink here. Alan, welcome on.

Hey, uh, another question.

Um, oh, we're back, Alan, we're back.

Here you are. Yes, we're back. Yes, I love it.

Great, great, great.

Um, so the other question I have is, um, So say I have a fund that I'm trying to raise of $10 million, as we spoke about, but I, um, I only get a commitment of, um, $3 million into the fund, and I'm not able to raise any more money at that time. Am I able to start the fund, meaning invest in that $3 million?

So most fund docs have what's called a minimum amount to start. So, and you got to determine what that is and be like, for that exact same reason, $3 million of $10, it would be 30% of your fund. Many funds, I think that crosses the threshold. Some funds are 10% or 20%. I think 30% would cross.

Yeah.

And so, you'd say, yeah, we're, you know, we got 30% of the fund. We're going to start We're doing venture capital. That means, what's your average check size into your deals?

So, average check size is going to be around, I say about, you know, $250,000 to $350,000.

Okay. Let's call it $250,000 for simple math. So that allows us to do 12 deals. Is my math correct? My math mathing? On $3 million?

Yeah. Yep. 12 deals.

Yep.

So, it's like, hey, yeah, investors, and this is, you would, you would tell them upfront, it'd be in your documents. You say, hey, $3 million is our minimum to start. And because if we get $3 million and for whatever reason we can't raise more, we can still do 12 deals. That's a pretty good fund. And investors go, yeah, it's a pretty good fund. Now we're hoping to get the full $10 million, but we can just start with $3 million. So, what happens is, and by the way, this is what happens when you start raising a fund. You'll do closings. So you'll do, let's say your first close. I'm putting a timeline here. You do a first close here of $3 million. And you can then start the fund and start doing deals. So you start, I'll change colors here, we'll do green. So you start deploying $250,000. You do capital calls. Then like 2 months later, you do another one for $250,000. And you're already doing deals, and you still got to raise another seven million. So then you let's let's say this is a six-month time period. This next little this is six months. Oh hold on. Six months and twelve months. I'll put six and twelve here. You then go to your investors and say, "Hey guys, we're already doing deals. We got three great deals already done. We're doing a second close here. Who wants to come in?" And it gives a little more momentum to the firm. And then you go your second close. Let's say you raise $4 million more. So now you're at a total of $7 million. You do a rebalancing the fund, you rebalance the portfolio of all investors, and then you keep doing more deals. So I'll go to green here again. You do some more deals, $2.5 million, $2.5 million, and then you do a final close at the 12-month mark. And you say, hey, this is the final close. We got— only got $3 million left. And usually your final close is the biggest close. And then $3 million comes in. You're now closed at $10 million. Maybe you oversubscribed and you go to $10.5 million. That's what happened with our fund. And then you say, hey, fund is now closed.

We're going to—

and I'll continue this timeline here. We're going to continue to go, you know, for the next, you know, this is year 2, year 3, year 4, and we're going to continue to deploy capital. And do capital calls of $250,000, $250,000 down the line. That's generally how a fund launch goes. Does that make sense?

Yeah.

Yeah, that does make sense. And when you say, and when it comes to the capital calls, uh, you know, I got an investor to say, I got that investor to commit to, um, you know, one particular investor commit to $1.5 million. When, when they commit to that and then I do the deal with them, Typically, they're not giving me the whole 1.5 million per se. I'm doing capital calls to get that money in.

Yep.

Yep, 100%. So if I just let's just zoom in right here. Let me pull my green out again. So let's say you did a. I'll go here. Let's let's erase this for a second. So you've got three million in, and that's committed. They've signed a document. that says they will commit that money. You don't have the money yet. You do a— let's say you did, for simple math, you did $300,000 in a deal. You would do a capital call of 10%. So, all investors now, they committed $100 grand. You do a capital— we're calling down 10% of the fund. So, if someone committed $100 grand of the $3 million, they put in 10% of their commitment or $10,000. And then all that. So we called down 10% of the full firm and that's $300 grand. We deploy that into a deal and then we continue on. And let's say we find another deal. That's another $300 grand. We will call down an additional 10% of the $3 million. And so if you're at $100 grand, you put in another $10 grand and we are now a total of 20% deployed, if you're following my math. And then you put that into a deal. So that's how that works. You're doing capital calls and deploying capital, uh, there.

When is it, when does the 2% that help manage the fund for that year come into play?

Typically it's when you call the capital. It's only on capital called. So if you call the capital—

So 2% of that cap. Okay.

Yep. $200 grand of $300,000.

Sorry.

Sorry. 2% of $300 grand. It's only on capital called. So you'd, then you'd start charging 2% on the $300 grand. And then once you call the next 300, then you'd start charging 2% on that. That's how that works. So you have an incentive to deploy capital because you want to get charging management fees. Um, this is— y'all following? Is that making sense?

Yeah.

Yeah.

Totally. Okay.

Any other follow-ups on that?

No, that's it. That answers my questions on that. Thank you.

Cool. That's great. Good questions. Um, all right. We'll keep going here. By the way, before we bring in our next person, um, Good questions, y'all. Someone asked, can you invest in Ugly Unicorn? The answer is yes. Yeah, we raise anywhere from about $500,000 to $2 million a month right now. We're open-ended. You can go to uglyunicorn.com. You can learn more about our fund. I can publicly talk about it as well. We're a 506, so it allows us to generally solicit Ugly Unicorn. That's why I can talk about that. Someone, I'll just make one comment. Someone in the chat said, I swear I can get 5x returns in a year. It's just in general, like you don't want to swear or guarantee anything ever from compliance-wise because nothing is guaranteed. If you use the we call it the big G word guarantee, I mean that is guaranteed. So in a fund, you almost nothing is guaranteed in life ever for a fund manager. You know we we estimate, we predict, we hope, we are planning for a 3x multiple over the next 5 years. You know, we are. But when you use the word guarantee, that is a big compliance word. You are essentially saying, you know, I am guaranteeing that with my personal credibility, my personal balance sheet, my net worth, like I am guaranteeing that thing will happen. If you notice in Black Card, we don't guarantee anything. Like if you notice in funds, we don't guarantee Really anything because it's it isn't guaranteed. I don't know if you're going to be successful in Black Card. I really don't. Black Card is a bunch is a lot of tools and team members around you to help you get launched, but Black Card takes a ton of work. It takes you going out and finding investors and building a fund. And like again, I like the analogy of like we think tank around you, but still anything in life take work. Anything that's going to be successful takes a lot of work. Now we think we can move you a lot faster with Black Card, but. It still is a lot on you. You know, you got to show up to the coaching calls. You got to take notes. You got to work this on your business. You got to be the one who, you know, has the idea and thinks it up and actually like drives it to the finish line. Yes, you can use our tools, our coaches, our staff, our legal team, our partnerships, all support and help you. But nothing in life is guaranteed. So anyways, I'd be just as a note of just caution. I see people sometimes in the chat like, Using words like that, I promise or I guarantee. Like those are those are serious compliance words. So make sure that if you're gonna promise something, it is promised. If you're gonna say something, it is it is said. So anyways, there you go. All right. Good questions all. Pretty sweet. Yeah, we got somebody. Go to Jack this, the one that you just pumped.

Yep.

Says that he booked the 10K off black card program with Maurice.

Oh yeah, I got it.

Yeah. Should I read it out?

Yep.

Hey, I booked the 10K off black card program and have my call with Maurice tomorrow. I was in the call Thursday, and question is: with a Reg B, this should be a Reg D 506B fund. I won't be able to talk to friends and family to raise the seed capital. With a Reg C, seems I can advertise talk to, but I need to have high net worths. So you're talking about, yeah, how do you advertise or run a fund when you can't generally solicit? Great question. Yeah, let's talk about that. This is how you market your fund. So there are rules. I'll zoom in for a second here with funds. Can you share my screen? So let's go. We'll make sure we've got the right size here. Boom. All right. So we've got, these are the most common fund types in the world. About 99% of all capital in the world is raised through these fund types. Okay. 506 and a Reg D 506. Now the question, which is a great question, is in a 506, you cannot advertise your fund, okay? In a 506, you can advertise. Now let me just clarify what that is. What they say is you cannot generally— oh man, it's too— I gotta space it out.

Hold on.

One more time. Generally solicit your fund.

Okay.

What a 506 is, is you can't go online and say, hey, I'm raising $100 million in a 506. You can't run advertisements. You couldn't do an email campaign, things that are general solicitation. It must be done through The opposite of general solicitation, which would be, I'll put it in a different color here, private solicitation. People that you already have a preexisting relationship with. So if you already know somebody, you can pitch them your fund. No big deal in a 506. And I've read all the documents on this. And by the way, it's written a little bit of a gray area, which is interesting. I'll explain that in a second. You can go and pitch. So this is supposed to be a private offering. It's not a public offering. It is a private offering. So, for example, if we were on a plane together, like we sat next to each other on an airplane and we start talking and you're like, you know, what do you do for work? And I'm like, oh, I run a fund. You know, I have a bunch of funds.

I—

and let's just use a general example. You know, we're in real estate. We construct things. I can say, I can advertise the general partner. But since we just met, I cannot say, hey, we have a fund that's open that gets a 22% IRR and your minimum commitment is $100 grand. And I can't sell the security generally. Does that make sense? But I could say, hey, here's my business card. Let's have lunch. I don't know. Let's meet up later. Or the next day we text like, hey, let's get together in a week from now. We now have a preexisting relationship. And then we can go to lunch. And at lunch, I can then pitch you the fund. Does that make sense? It's kind of an interesting rule. The way the rule is written, some law firms interpret that as a 15-day waiting period. Some say 30 days. Some say 7 days. I've heard different things from different law firms because it's not very clear. It just says you have to have a preexisting relationship with someone. Following? So now this is how the largest funds in the world do this. This is how KKR, Blackstone. I mean, all of them run 506s. And what you do is you just, you pitch people privately. That's the, that's, so it's really like you can, I ran a 506. My first fund was a 506. You could, you just pitch people you already know. And if you don't know them, you meet people, you go to events and you, and then after your first meeting, then you can go talk to them later. So if I met a family office at a great event, we meet up and then a week or 2 weeks later, I text them, hey, we should get together. I have this fund. You know, I'd love to hear, like hear your thoughts on it. Awesome. Let's get together. Let's talk about it. Does that make sense? In a 506, you can advertise. So you can run ads. You can talk openly about your fund. You can do, you actually can do general solicitation. My, both of my funds are 506s. Just by the nature, I do Zoom calls like this. I want to be able to talk about my funds. I don't really, I don't even generally solicit them. I just don't want to be in trouble because I did a YouTube livestream and talked about my fund.

Okay.

So I do 506s. The one difference here is I then have to verify every person that comes into my fund is an accredited investor. I have to verify their accredited investor status. In a 506, you don't have to verify. They, the person, the individual just checks a box and just says, yep, I'm accredited. I don't— the burden of proof is on the individual. In the 506, the burden of proof is on the fund. Hopefully that's helpful. I can do follow-ups if you want, but that's the idea. So I wouldn't be too dissuaded if you're doing a 506. You just can't do general solicitation. You just can't do a big email campaign or you can't put billboards up. You can't run Facebook ads, but you can talk to family and friends and people you already know. That's great. That's— it's a private offering. Pretty cool. Yeah. Now, and on a 506, you can raise from 35 non-accredits. In a 506, I can only raise from accredited investors or above. And then underneath there, you have the 3, the 3, and the 3 funds. So there you go. Good questions, y'all. You got somebody? Yeah, Tyler D. All right, Tyler D., let's bring you on. And by the way, if you want to book a call with our team, fundlaunch.com/7koff, there's a link below and above. You can see us trying to get to $4 million of credits redeemed. People that book a call, you get $7K off. My big, my big, beautiful golden ticket. All right, welcome on. Good to see you.

Hey, thanks.

I love the hat. I'm drinking a Red Bull right here.

Amen to that, bro.

Are you like a Red Bull sponsored athlete? You look like it.

I get called it all the time, but you know what?

Can't—

not that good.

There you go. I, I, as a kid, I always want— that was my goal in life was to be a Red Bull sponsored skier. I love skiing and—

Oh yeah, I'm a big-time skier. Yeah.

It's not worth it to try to get— anyways. I just ski for fun. So anyways, yeah, what can I help you with though?

So yeah, so I kind of ran across you guys doing some little, a little bit of research, but I've been doing, um, kind of quit my day job 8 years ago and I've bought, uh, 3 companies, started another one, working on 2 other deals that are, you know, $1 million to $2.5 million. But I have some companies that kind of are in my funnel, I guess I would say, people I either work with or have connections with that are, you know, $15 to $75 million valuation, for example. So I'm like, okay, probably not going to be able to do these deals by myself. So what are the options, basically? So that's kind of where—

Very cool. You can share my screen.

Yeah.

So the question is, how do I buy these businesses?

All right.

All right.

How do I put this together?

Cool.

Yep. Yep.

Is there one in particular or do you have a couple that you wanna buy or what's, what's the strategy?

What do you think?

Um, they're kind of just different at different stages. Um, the, basically all the owners are kind of getting to retirement age, but they're not like pursuing, you know, putting their company for sale, for example. So it's kind of like a, probably a 1 to 5 year plan, I guess.

So, okay.

I've built rapport with them. I think I'm in line as far as, you know, when they're ready to go.

Type thing.

So are they synergistic? Are they gonna like— are these— and even these ones, like, do you want to put the— my question is, do you want to buy them just as a solo deal, or do you want to put together like 5 companies into one portfolio together?

Yeah, might make sense to put them together. I think it'd be more attractive, probably.

Okay.

And I think between these companies, they're, you know, they're in similar enough industries where they use the same raw materials, so you may be able to kind combine them or something like that to buy aluminum, for example, cheaper.

Yeah.

Very cool. Yeah. And for people that, yeah, this would be like a roll-up strategy or some people call it like a hub and spoke where you have a middle company and then you like acquire a bunch of companies around it and you put them all under the same brand and they all help multiples increase. It becomes a bigger enterprise. You can actually extract a lot of stuff. Side tangent, awesome book, by the way. Have you read Brad Jacobs' How to Make a Few Billion Dollars?

Negative.

That book is phenomenal. I just read it. I met Brad Jacobs last year and I didn't really know who he was. The book is called How to Make a Few Billion Dollars, which is a cool title. He's like the original guy who came up with essentially the roll-up. I don't know if he came up with it, but he's the first person to do it to a massive degree. He ran— he did it with waste management companies. Now with trucking companies. Anyways, he's done a phenomenal job. Really cool book. Talks about this whole thing. Let's go back to raising capital for this. So, yeah, this would be a very traditional private equity fund. A couple of ways that you could do things. You've already done a couple of acquisitions. What I would, you know, a traditional fund, you would build your GP, your LP, and you'd say, hey, our plan is to go acquire, and you would make the plan, but we're going to acquire 5 to 10 companies in this certain vertical. We're going to roll them together. They, we think we'll get an increased multiple by putting them together because of a certain market cap gain. You know, target deal size is between $15 and $75 million, and we're going to need X number of dollars to do this. We're going to raise equity and then we'll do leveraged buyouts with debt. So we're going to, I don't know, whatever ratio you want to do, you can do 50% or 30% ratio there, and you're going to start raising equity dollars into a fund.

Okay.

That's one model. That's the traditional private equity model right there. That's it. You say, we have expertise in this area because we know X, Y, and Z. We're very good at running operationally, whatever the thing is, why we're so good at this. We're going to narrow our focus. And maybe, and again, I said 5 to 10 companies. You could just do, you could do a 3-pack. Like we have 3 companies identified. Or it could be we only have We have one company identified. You could do just a single asset fund.

Yep.

We have one company that we're going to do. It's the same model of a GPLP structure. We just have one company or it's 10 to 15. You already know this, but I'll share this for people in the chat. There are a lot of times increased multiples. Let me read the feedback. Is that from—

oh, from him.

Okay.

We usually get increased multiples on rolling together businesses. So, for example, if a certain company, like we saw this, I don't know if it's still true, but about a year and a half ago with car washes, we had a guy in Black Card. He's like, you know these big commercial car washes that are all subscription-based? He's like, those car washes right now sell for a 3 to 5x, but once you put together 25 of them in a portfolio, Just by aggregating them together and then because you reduce costs of marketing, you reduce costs of financing, these overheads, you can sell them for an 8 to 12x. And so, their whole strategy was just consolidating car washes because you get a bigger multiple when you have a bigger enterprise because you can now, you're up more to mid or a larger market cap for end buyers that are other private equity firms, huge private equity firms looking to buy a consolidated portfolio from you. So, one thing I would say, I would definitely have the end in mind. So, as you put this together, I would already identify end buyers of this portfolio.

Okay.

I would go and try to talk to a number of large private equity firms and say, hey, you know, we're looking to roll up a certain category. What is a perfect portfolio for you? And they're going to tell you. They're like, oh, we want X and we want Y and we want Z and we want certain revenue and certain whatever. And you go, great. If I build that for you and give you a call in 24 months, what would you guys buy that for? And they'll say, oh, wow, we'll buy it for X multiple. And so, you can then reverse engineer from the— I would start with the end buyers in mind, especially in private equity, and then go and then go build that for them. Any other follow-up questions to that? Great questions here. And I know we got—

No, I think that's good. So to move the sellers of these companies along, would I share my plan, I guess?

For these guys? The companies you're buying?

Yes.

I would say so. Up to you. But one way to do— are you planning to do a full buyout or do you want to roll equity forward with them?

I'm going to be flexible, I think.

Okay.

What I've seen groups do, well, there's, yeah, there's 2 options. If it's like mismanaged, they want to retire, you just kick the whole team out. But that puts a lot of, you know, a lot of operational efficiency on you and your team. The other, the most more common model is you keep their team on, you roll equity forward. We actually got approached to do this with Fund Launch. We turned it down. But we got approached. This is the exact offer I think we got. So the offer we got was, hey, this is like 3 years ago. Hey, we're going to buy. We have a fund. We have a big equity fund behind us. We're going to buy Fund Launch for $20 million. We're like, wow, that's cool. And but that's the purchase price. We're only going to buy $14 million of it, which would be 70%. We want you guys to roll forward 30%. Your shares are going to come up into this parent co. So you're actually going to roll 30% of your shares into the parent co. And you're going to be part of the parent co. The parent co is going to then go buy 15 other companies. And they are all also going to roll 30% of the parent co. And we're going to have this big conglomerate of 15 companies. We have— we're buying a software, a payment processor, whatever. And you all are going to be sub-business unit owners. You are going to run your business unit, but you are getting a part of the bigger pie. You know, this bigger pie is going to be at an 8 to 12x multiple. And then we plan to IPO. Their exit strategy was an IPO. They say, we plan to IPO to public markets at a 10x revenue, and you guys are going to get 2 bites of the apple. You are going to bite now. You get some money now, and you also get money in 2 years when we IPO. And you can keep running your business. You're a great operator. Keep running your business, but you're going to get a bigger IPO later with a conglomerate of companies. That was the pitch to us, which is a cool idea. They never IPO'd. And because I think the IPO markets have kind of changed, I would say we have a big end buyer, a private equity firm. I would say that's a more better market. I think currently it could be an IPO. Who knows? But that was the idea. And I actually thought it was a pretty compelling pitch because I still wanted to run my business. But they're like, come join this conglomerate. You know, we're going to all crossbreed each other. We'll help everyone. We'll help each other out. Cool idea. We ended up turning it down just because we didn't, we didn't see the viability with the actual parent co and the companies they were doing. But if they were a more legit firm, we might have done that deal. If they were like a really legit firm that had done this before and like we actually probably would have done that deal. So anyways, there you go. So, a lot to think about.

Yeah.

Great perspective.

Yeah.

Appreciate it.

Okay. Good questions, man. And yeah, I'd say Brad Jacobs. I just read that book. I thought it was so interesting, especially on how they did these acquisitions. And he's like, every time you do an acquisition, you're always going to find out way more dirt than you didn't know about. And because the owner left, now 3 clients left and like, you got to like, figure out all that stuff. And he walks through like the actual nuts. Like, I think later in his chapters, he walks through like the nuts and bolts of like doing this over— he's done it so many times anyways. Um, it's pretty cool. All right, thank you very much. Good, good questions, Tyler.

Yeah, thanks.

Yeah, the author of the book is Brad Jacobs. Brad Jacobs. Yeah, he's like the, the OG of buying boring businesses. He bought United Rentals and made United Rentals like this huge equipment rental company, like a boring, like Just equipment rentals. He then did Waste Management. I thought I forgot the name of the Waste Management, and then he runs EXO. Is it or EXO? It's like one of the largest trucking companies now in America. It's pretty cool. Joshua Clough, what's going on, Josh? Good to see you, James. What's up? Good to see you guys. Did you have somebody queued up? I can I can hit some chat questions too. Okay, I'll give you a second here. Let me answer a question here. We're doing good here, by the way. This is kind of fun. You guys like this so far?

It's been alright.

By the way, if you wanna book a call, funlaunch.com/7koffer, our Black Friday offer. We got somebody queued up. Okay, we'll just bring on the next person. Let's keep it, let's keep this train rolling. Welcome on. I don't know who we got. Vladimir. Vladimir, welcome on. Can you hear me there?

Yeah, I can hear you. How you doing, Bridger?

Good morning.

Uh, my name is Vladimir, by the way.

Say it again. Vladimir?

Yes, Vladimir.

Okay, welcome on. Good to have you here. What can I help you with?

Likewise. So, um, I just want to thank you. Kind of your videos helped me kind of structure my fund, and, um, I'm kind of like 3 months into capital raising. I have a 506 fund.

Nice.

Um, we were doing— so first I found a, a really crazy pharmacy deal So we're in a very niche market. The current deal is doing about $240 million in revenue, $21 million in gross profit, and about $15 million in EBITDA.

Sorry, say those numbers one more time. I'm writing them down.

Oh, $21 million in gross profit.

Okay.

And then $15 million in EBITDA.

Nice. And then $15 million in EBITDA. That's great. That's awesome. And you've acquired the business or you're looking to acquire it?

So we're looking to acquire it. So I'm doing an $80 million raise. I got the business under exclusivity right now for about 40% of true valuation. So I mean, I'll tell you the number, it's about $75 million.

Okay.

True valuation is a little bit over $127 million, got evaluated by an investment banker. So the CEO of the pharmacy is actually one of the— I made him a partner in my fund from an operational level because I knew it would really help me raise capital. So we're talking to a lot of these institutional investors and, you know, like RCP Advisor, JPMorgan Chase. And what we're getting is we're not really getting any pushback. It's more along the lines as they want to do like a single asset, um, acquisition instead of kind of rolling it into a fund since I am a first-time fund manager.

Yeah.

Um, and so we're doing an $80 million raise. So the down payment would be a high concentration risk. But one of the biggest things that I don't want to do is kind of, I want to be conservative. This is my fund 1. I kind of have about, about 3 more deals in the pipeline. So we're trying to kind of acquire smaller pharmacy, but this would be the main infrastructure.

Yeah.

We are not really getting any pushback. More, they like, there's some investors that say, hey, we're going to send you a term sheet. Don't, they don't really ghost us, but they respond a little bit later. And then a lot of them, they, they kind of want to give us on a, on a single asset.

Okay.

Awesome. Very cool. What can I help you with?

So, would I be able to structure even if, just to get kind of like my feet wet, kind of getting the deal closed on a per-acquisition basis?

Are you asking just do one deal at a time?

Like one deal at a time and trying to roll it into a fund. If that's possible.

I would do, yeah, you could just do a single asset fund. It sounds like you already have your 506 set up.

Yes.

You would just do, hey, we're doing a fund for one investment. It's kind of like an SPV, but it's just structured, I think structured way better than an LLC. It's a GPLP structure. I would just do a single asset fund. Yeah, we're doing a single asset fund. We're going to buy this property or this, sorry, this company here. Yeah, I would just do that. And then, You're asking later, could we roll it into the fund?

Correct.

Yeah, that's my question.

Yeah.

The answer is, yeah. Could you roll it in? The answer is yes, you can roll it in. Do you want to roll it in? Maybe, maybe not. Investors are coming in on the premise of a single asset. This is your first time doing this. I would just keep it as a single asset. I would just keep it by itself. And then personally, and I would just, and then I would do your next deal probably as a single asset fund as well. And then I would do your next one as a SAF as well. And maybe once you've done 3, then you say, okay, now we're going to— we've got a model here. Now we can go do a fund and we're going to do 10 more of these types of deals. But for now, I would just start with one and nail that one. Like, I wouldn't even worry about other deals. If you like, I would just say, this is what my life is going to be the next X number of years or months. Like, we're going to crush this because this is your track record. This is your model. You've got to buy this thing, raise it, and then make sure it runs good and then exit it for a good amount. And like, that's your proof. That's your case study of like, yo, we crushed it with this one. Okay, let's do another one, another one. And then, hey, we're going to do 10 more of these just like that last one. That's what I would probably tell you to do.

Yeah, that sounds, sounds about right. I kind of like, I saved some money on the PPM. Like I got a PPM done. I got my third-party admin, NAV Consulting, because I know you kind of referred them. And so right now we're getting a quality of earnings report for the pharmacy to get some debt leverage as well. So I might, I might have to do—

How much debt and how much are you raising?

So for this particular deal, we're raising about $35 to $40 million in equity, and we would want to get, you know, 60%, 50% leverage. But since we're a Fund 1, a lot of the banks that we're talking to, even some of the bigger private firms, I know private— there's a structure of private credit where It gets a little lucrative, but we're raising maybe the other half of debt leverage.

Yep.

Okay. That makes sense. It's 35. That puts us to 40.

It'd be 40.

37.

Yeah.

It'd be 40.

Yeah.

Sorry about that.

It's like I do my— got to do my math live.

I got to get better.

By the way, doing math in front of people watching you is so hard. I've done this for years and it's so funny doing math in front of like, and like writing numbers. I have to like do it and then I have to check it in my brain like, okay, 'cause there's just something about doing simple math in front of people that are watching you write it down. It's just funny. Anyways, okay, I think that makes sense. Yeah, I think this is something you run after. Sorry, and I wrote equity. See, I messed up again. Debt, $40 million of debt. Yeah, I would run after this hard. Like, this is your case study. You already mentioned you brought on the founder to help you raise. I think that's great. If you can't raise this amount of equity or debt, I would bring in other partners that can help you raise. Like, hey, you know, you got some friends or network. Like, just, I think your goal of this, and this is for anybody on this call, the goal of your first deal or first fund is not to make money for yourself. I mean, yes, hopefully you make some money. The goal Is to make your investors tons of money and build a great test model. Like, it's okay if you give up some equity or upside to somebody else to help you do the deal because we're playing the long game here.

Exactly.

The long game is get it raised, get the deal closed, make your investors a ton of money. And even if you make a lot less than you thought you would, that's okay because guess what? We're going to do another deal and we're going to do another one and we're going to do this. We're going to be doing this for the next 30 years. And if we do this the right way, we're going to make a ton of money, but we got to play the long game. And so anyways, that's what I would tell you.

Okay, perfect. Yeah, I brought in an advisor who has about $1 billion allocated to pharmacy deals as well.

Oh, wow.

Yeah. So, and then obviously, we just signed an engagement letter with— it was a kind of family friend referral for a placement advisor. So, they're an advisor on strategic structure and also, they have pretty much, they have an internal of LPs that kind of raise capital. So, I think I'd be able to get the deal closed maybe by January. So, I've been working on this for about, I'll say, 6 months already.

Cool.

I love it. Well, I think you're on the right track, man. I think you're right. Just, it takes a little bit of time and effort and To raise, and I'll just say this, by the way, to raise money is hard. Raising money is hard.

Very.

It takes every part of your soul to raise that. But if you can do this and raise it and then do well for your investors, like it's going to build a brand around you. And these equity investors, they're all going to give you a test or a trial investment, most likely. And it's like, great. Yeah, send me your test investment. I'm going to crush it. For you, you're and then when we do the next deal, give me a little bit more. And the next deal, give me a little bit more. You know, and so that's that's how your mindset's got to be. Like long game. I gotta just and it's anyways, I'm excited for you, man. I think you're gonna crush it.

Thank you.

Appreciate it, Bridger.

All right.

We got people queued up here. Let's real quick before we pull that. If you guys want, I'll say this again.

There it is.

We just launched the merch store. All right. If you guys are doing your funds, this is my little commercial break. All right. For Veronica behind the scenes, if she's on, she's been wanting me to push this.

Okay.

Um, we— merch store just went live this week. You can do custom merch for all of your stuff, your funds. You can use our— this is our brand, but we went and, uh, we went and found really high-end stuff. Like Travis Matthews, OGO, whatever it is. And then you like, you can see mine here, my hat, my like sweatshirt stuff that you can wear and send to your investors. It's pretty fun. So if you want to, fundmanager.com, you can click on here. If you're doing a bulk order, message us, we can give you some discounts as well. You can come in here, you pick your color, you upload your logo, and you actually can like put it on there. It's embroidered, it's very high quality. We're like, we— I was so sick of using like custom ink and all this other stuff for For non-high-quality stuff. All right, there's my little commercial break. Perfect. I'm always wearing Fun Launch branded shirts.

Yeah, it's awesome.

I have an XL. It doesn't fit me. Oh, there you go. Well, yeah, get some more. We're trying to do more stuff. I've found a huge benefit when I do investor calls, like wearing my own merch. Like I wear Ugly Unicorn or you can see Fun Launch partners on my hat or I'll I like, I keep merch in my office depending on what kind of call I'm doing. You can see there, that's a Fund Launch Partners quarter zip right here. It just looks congruent. It just looks nice when you're like on a call with an investor and you're wearing your fund's merch. For whatever reason, I just like it. Or I go to events and I wear my own merch. Like, oh, what's that? It's like, oh, that's our fund, man. We're, you know, and I, it's just an interesting, you know, starter there. All right. We still rolling. We're doing good. Who's, uh, who we got queued up? Or do you want to go chat first? You want me to go to the chat?

Peter Rubino.

Okay. And we're over at the bottom there. VIP building a fund, that one.

Yep.

Okay. So from Peter, and by the way, Peter, you were on all 3 days. I saw your name day 1, I saw your name day 2, and I saw your name today. So well done, Peter, being here and putting in the hours. That's awesome. Building a fund for, uh, let me, I'll write some notes here. Building a fund for Aviation, aerospace, and related tech. Initial fund target is $50 million for technology demonstrators, disruptive new aircraft and rocket designs. Wow, sounds pretty cool. Along with related technology and infrastructure. How do you address any conflicts of interest being involved hands-on with some of the companies while also managing the fund? Best practices. Long-term goals are multi-billion-dollar funds to scale and do PE investments and buyouts. Hmm, the fund target is $50 million. So $50 million is to do R&D, it sounds like. And maybe Peter, maybe just type in the chat as I'm going. Peter, give me some follow-up. So this is from Peter.

Correct.

So $50 million of essentially research and development of these, of the aircraft. And then, so is the plan like, if I'm an investor, so if I'm an investor, I'm investing. We're doing $50 million of CapEx. If it goes well, do I own a piece of the company? Like, do I own equity in the company? How does that work, Peter? Maybe you're buying equity. Okay. And so, and this company could take off and crush it, right? That's the idea. Is there more money needed after the $50 million? Yes. How much more? This is like real-time chat.

Here we go.

Talking through the chat. How much more money would you need? Like, so R&D goes well, then what? Are you gonna raise another round? What are you kind of thinking? Aviation side is $500 million for all 4 phases. So there's an additional $500 million for all 4 phases. Hmm.

Okay.

Phases. Hmm. Interesting.

Okay.

Okay, my brain goes to 3 different categories and let's just explore them together. 3 different ways to raise this money.

Okay?

Option number 1 is a traditional route. So, this is like the— you raise a Series A or a seed round. Have you guys already raised money for this company?

No.

And you do a, let's just say a seed round, you sell, you know, you're raising $50 million and you sell 15% or 20% of the company or something. You just sell shares of the company. And then as you need more capital, you do a Series B, Series C. That would be one traditional way to run and do this. You have these funding rounds. You bring in venture capitalists essentially because this seems like a venture deal. Because if this goes well, it sounds like it would be like huge. It's in aviation. I yeah, that sounds like you'd probably go tap into venture capital markets, right? That sounds pretty interesting. Okay, that's that's option number one is the traditional VC space. Well, actually, I thought of a different option. You could there's a chance. You get like debt or, and/or like government subsidies. I don't know how viable that would be. That might be interesting as well, because government projects, they might give you $50 million to do this R&D, but then you're kind of more married to the government. But if it's something that's like, it's in, you're saying aerospace engineering or whatever the thing is, that might be interesting as well. Um, another option is you do, I guess I'll just put these in lines here. You could raise what's called a Reg A. A Reg A is a type of fund. It's a new regulation. You can do public advertising. They call it a mini IPO. This allows you to raise from non-accredited investors and accredited investors alike. To set this up is like people say it's anywhere. It's pretty about seventy-five, seventy-five K to one hundred K. And you can actually run Facebook ads and like it's called a mini IPO and you could go, you can raise up to $75 million a year for, or for per project. So you could raise the $50 million on a Reg A, which would be kind of interesting. And that's, you know, if I go to the Fund Launch Formula, this is a Reg A right here. They call it a mini IPO. You can do this tier 2, which actually could be interesting. The other option Is you do, you raise like a GPLP fund, which is kind of more traditional fund, and it raises $50 million. The fund gets shares in the company. And then it'd be similar to like raising your traditional VC route, but you just wouldn't do a Series A. You would raise it through a fund. And then you can go buy the shares here. The nice thing about doing a fund versus traditional VC, if you do it through a fund model, you keep all the control of the business. These are limited partners. They are limited on their liability. They're also limited on their control. They are, you know, limited partners. In a traditional VC sense, if somebody came in at a Series A, they're going to probably want like a board seat, voting rights, etc. So, but again, you have much bigger markets, like more liquid markets here in VC. It might be easier to raise $50 million here than to raise $50 million here, but who knows? So those would kind of be your 3, or I guess 4 options if you got government debt or subsidies or something. Some, I would actually look into government programs. It'd be cool if there was like a 1-to-1 match even. You know, hey, we raise a dollar, the government does a dollar. I don't know, I would look into that as well. Those are your 3 options. Any follow-ups, Peter? There are government tie-in potentials.

Okay.

Goal is to become our own VC and private equity firm.

Okay.

So yeah, that's the goal.

Okay.

So this would be the goal over here. Yeah, I think that could totally work. You're doing essentially a raise for one offering, which is to invest in this startup. Um, anyways, it's kind of cool. I like it. Speaking of aviation, do you guys see the the new Xbat thing they came out with? Or at least they announced. I'm sure it's been out for like a decade, and they just telling us. You guys see this? It's crazy. I'm just gonna share it. The Xbat drone thingy. Dude, these things are crazy. Maybe you're building something like this. If you can see my screen, these look so cool. They just announced this a couple weeks ago. This is what it looks like. It you can put it on a truck. It stands up like that. You don't need a runway. These things can go supersonic. They're like a jet. They come and land vertically. Like you could just park this in your backyard. You don't need a runway. They're all flown autonomously. Like how freaking cool is that, dude? Let's talk about military defense. Like you could— they— the wings fold in, you put them on a truck and you can just Put— park them somewhere. Dude, it's crazy. It's crazy the stuff they have in the military, like, and the stuff they tell us about. I'm always like, what do they not tell us about? This is the stuff they're telling us about, which anyways. And then they came with these new headsets. Anyways, I'm a military kind of— I'm like, dude, there's some crazy stuff going on. Um, they have a hive mind, so these— all these work into a larger hive, like AI mind, kind of. Anyways, am I the only one that likes military stuff? Like when you said aviation, I first thought of this.

I thought it was pretty cool.

They also announced the we don't know yet the F-47, the F-47 jet. This is kind of all we have is this one picture of the F-47, but you know their next generation of fighter. Anyways, pretty cool, pretty cool. Not far off from what you're doing, Peter. Okay, well, okay, if you build it, can you invite me to come just look at it? I will sign an NDA. I just want. I love. Planes and jets and stuff. Yeah, Peter, give me an invite. I would love to come check whatever you build. If it's something like something cool, man. Oh, I love stuff like that. All right, squirrel. All right, we're off topic.

I love it though.

Okay, we got Vivian's back. Okay, Vivian. And by the way, if you want to ask a question live, drop it in the Q&A. My team can queue you up. They'll make sure you're a VIP member. If you want to be a VIP member, I think they're dropping links in the chat. You guys can, I think it's what? $17. $17 to be a VIP member. It's nothing crazy. So Vivian, back on.

Vivian, how you doing?

What can I help you with?

I want you to help me validate a fund idea. So it's a for-profit university that I'm raising funds for. And the way we use the fund is to build a university and hire the professor to create the curriculum and teach. And also recruit researchers because the university, the edges is that they are focusing on family doctor, training family doctor, and also R&D in health science. So that's a big gap, like lots of opportunity in there. So that's the edge of the fund. And then we are going to split the ROI 40% to the investors, split among the investors. Is that a good one? Because I is not like share is not that, but it's profit split profit instead.

How how much money do you need to raise to build this university?

That I don't know yet, but I guess it would be a lot of money to build a university.

Yeah, there a couple of things that where my brain goes. So we actually had someone, maybe it's the same group. They were going to build an Eastern medicine. College/university. Is that the same group?

No, not the same group.

Not the same group.

Okay.

Well, they were going to build something. They— it was— and I, when I heard the word university, I thought like, like, you know, a massive university. Like they were like, oh no, we only need like 3 buildings. It's small. There's gonna be like 200 students on campus. Like, you know, I was like, oh, okay. Like, that's much more reasonable. They needed like $30 million to do this. A couple things where my brain goes, uh, what's— do you have a pro forma built out or a model on the revenue generation of the university? How's it going to make revenue? I'm guessing students paying tuition, right?

Yeah. And also the, uh, R&D, uh, discovery in health science is going to be like the— like, uh, whatever they discover in R&D in health science is going to be a lot. And then they are going to also, um, Like, uh, the PhD student or master's student do a thesis and they got fund for the, um, for that program. And, uh, yeah.

Hmm.

Okay. So yeah, I, I would, uh, really build out a model, like on Excel, a big model of how it's going to make revenue and how long it's going to take. If you're going to raise from investors, let's call it $30 million and do a split with them. I would want to know, okay, how quickly can we make revenue from students and R&D? Like, what's the risk here? Because the risk is no money comes in at all. I'm just wasting my money. So, which is most universities, right? There's a— I would also consider if I was you guys doing a nonprofit university and getting a government exemption so that you can get donations like we talked about earlier with your churches. You can go the donation route.

Okay.

To build this. And maybe there's a preferred something, I don't know, on the donate, there's something around that that could be interesting. The R&D on health sciences. And furthermore, to be a university, there's a lot of qualifications from states and governments to actually use the term university. Or the same with the term college. You actually have to hit accreditation standards. And be like filed with the government. You can't just call yourself a university overnight. Actually, I knew I had a friend. They had an online course called a school. They just used the word school.

Uh-huh.

And they got like tons of flack because they weren't an official school per the government. Same with university, same with college. Those are technical terms from the government. So, I would just go and figure out that process. I would figure out a revenue stream. And then you can approach investors. It's kind of back to the Fund Launch Formula. It's like, hey, okay, work on your deal and strategy. It sounds like you— there's a few more things to unpack there. Like, what is the deal? How's it going to make money? And then secondly, you mentioned we're going to pay 40% to investors. Okay, well, 40% of what? So I think you need to spend a little more time on both of these and then we can go see if investors like it.

By the profit. It's 40% of the profit.

Yeah.

So, like, and how are you going to make profit and where that's going to come from and how long is it going to take? Is it 2 years away, 5 years away, 10 years away? What, you know, what's our— and this is what I like to do. I'll zoom in on one. I like to run a worst case, a base case, and a best case scenario. So, I run through all my risks. I run a sensitivity matrix and I run through a worst, base, and best case scenario of that. And that's something we help people do in Black Card as well. When we go through with people, we help you run through this. model of how, you know, how does this work and how does this, you know, how does this look?

Oh, I have a feasibility paper on it. I just don't have it in my mind right now, but I've done a feasibility study and I think I do an investor guide before, but I just don't have the data now because I cannot pull it up right away. But yeah.

Okay.

Gotcha. Well, good questions, Vivian. Thank you.

Okay. So it's possible to split ROI, but not doing share or that?

Well, it's no, every, it's all possible. I'm just, I think there's a little more that needs to be done here. So for university, I would check on government regulations of a college school. I would maybe make it nonprofit and maybe go the donation route. But if you're going to be for-profit, want to do investors, uh, you could do a revenue sharing model. Um, and maybe it's mixed with donations. Uh, I would, I would explore that model a little bit more.

Thank you.

Yeah, good questions, Vivian. All right, sweet. Good questions, y'all. It's been fun on here, man. What time is it? It's 11. We've been going 2 hours. 2 hours. This is great. Well, good questions, y'all. Pretty fun. Has this been useful so far?

I don't know.

Give me— hopefully this has been all right. You guys are still on here. This is great. Been somewhat useful. By the way, this is streaming to YouTube. So if you want to go watch the replay or missed it, you can go check it out on my YouTube channel. It's funlaunch.com/bridger. Or sorry, it's Bridger Pennington on YouTube. I got, I got, I watched on my screen. It's Bridger Pennington on YouTube. You can see yesterday's full call. That was, I don't know, 3 hours. Today's full call has been 2 hours. You guys can go watch back and some of the questions that were on here. And again, if you want to talk to our team, this is what we do day in and day out is fun. So funlaunch.com/7koff. You also can text our team down below. That we help people build and launch funds. This is what we do all day, every day. All right. I think we had someone queued up, you said?

Almost.

Oh, almost queued up.

Okay.

Really cool. Yeah. Thank you, Bridger. Haven't needed to ask a question. Awesome. Thank you, guys.

Yeah.

John, good to have you guys on here.

Bruce.

I see a question here. With my investors, Next year, no long lead times for returns. Sweet. And I'll just say this about investing and raising capital in general. It all comes back to expectations. So setting a clear expectation with investors of if they expected money next year, then they should be paid next year. If they expect money, some funds, they don't expect money for 8 years. And that's okay. That was the expectation upfront was This is going to take a long time. It's eight years away. Some funds, it's six months away. So clear expectations is good. Can I talk about a fund? Hundred and ten million. Where is the threshold for discussing PE? Okay, we got someone queued up in the back. Who we got?

We have Jamie.

He's a black card member. Sweet. Jamie, welcome on. How you doing, Jamie? And you're a current Black Card member, so that's awesome. You there, Jamie?

I'm here.

What's up, everybody? Hey, good to see you, Jamie.

You too.

You too. What can I help you with?

All right. So I got my partner Dino on here as well. He's not with me, but he's in the chat and all that. He's watching. We have a property here in Southwest Florida that we're looking at. They're asking $499,000 for the lot. And, uh, we're looking at, at building either 15 duplexes, which is 30 units, or up to 40, uh, units if we do it as an apartment complex. But let's just say, um, 30, you know, uh, 2 15 duplexes. And each duplex, we're looking at around approximately $200K to build.

Okay.

Okay.

And the ARV on each duplex is about— it's going to be about $400,000.

Okay.

Okay.

So then obviously there's costs with leverage on the buy side. There's costs with, uh, sales on the, on the exit side if we decide to sell all of it instead of keeping it. But is this a deal worth going past a napkin analysis with? And what would you recommend be the first 5 things that I could do using the resources and the membership with you guys that could help us get the ball rolling?

Well, very cool. Sounds like I, I'm not a real estate expert underwriter in South Florida.

Mm-hmm.

But from just what I have on my screen, yeah, it looks pretty interesting. You know, you're essentially doubling the value off your build.

Mm-hmm.

Lot cost isn't much, $500K. On paper, yeah, that seems pretty interesting. I don't know how much debt you'd have here. You know, if you're doing 15 of these, what's my math there? That'd be $3 million of build cost.

Mm-hmm.

Plus the— so $3.5 million total.

Mm-hmm.

And that would give you— we're just saying 30 units for now. 30 units. I mean, that's pretty interesting. You got a unit cost of just over $100 grand. I don't know, was that $115 or $110 per unit?

Yeah, approximately.

Am I correct on that?

Yeah, approximately. It looks good.

I mean, that's at least for what I know in different markets. I mean, that seems pretty good pencil math. Now, I don't know the part of Florida you're in and how that, you know, you guys have to determine that. But man, that looks sweet. I think, you know, and what's your timeline on this? How long would it take you to build all these?

It'll probably be 18 to 24 months.

Okay. We'll say 2 years. So, 24 months. I mean, okay. Hey, you know, investor, put some money in and we're going to do drawdowns as we build. You know, we'll leverage this up. You can get a, I think, a pretty decent return doing this. I think that'd be awesome. If you're still in the underwriting phase, I would go— this is what I tell people to do. Go through the risk control return matrix. So, you're in Black Card. I'd start with this and run— this is an exercise where you run through all the risks that are in this business. So, do this on a spreadsheet. So, you'd say, you know, and let's just think of some. So, risks that we can control and then risks that we cannot control. So, let's go through, you know, risks we can control. We can control You know, a little bit of construction cost. We can control how much debt we put on it. We can control how much we— Do you guys plan to sell them or rent them out?

Sell them.

Sell?

Okay.

And that's another decision. We can control that. Sell or rent.

Yeah.

You know, some people would say like, get them occupied, get them up to 85% occupied and then sell them. Yeah, that's a good idea. Because that gives you your multiple, right? So, you could decide. That's a decision you can make of Other risks that you can control is like team, purchase price, stuff like that.

Yeah.

All important. Things that you cannot control, the Fed interest rates.

Yeah.

Still important. You just can't control it. You can't control if a hurricane hits or weather.

You're in Florida.

Like natural events. You can't control a war or macro events or whatever, right? You can go through like if there's a supply chain shutdown, Mm-hmm. But still important to have in your underwriting. So, what I would do if I was you is take each one of these and you narrow down to one variable. So, you say, okay, all things being equal, let's say the Fed raises rates next year. How sensitive is our worst-case, base-case, and best-case scenario if the Fed raises rates, keeps rates neutral, or lowers rates next year? What would that do to our net rate of return? Does that make sense?

Mm-hmm.

Right now, you're estimating a $400,000 ARV, but maybe if rates go up, shoot, that's going to make it, you know, whatever that it changes, right? Changes your outcome. You go through each one of these. So, you go, okay, what if we did more debt or less debt? How sensitive are we to changes in debt? Worst case, best case, and best. What if our costs— you do each one of these and that builds you a A model of okay, we understand the risks in our business, and then an investor, a savvy investor, will ask you these questions, and you go, oh yeah, we've already thought about it. Go to slide thirty-seven. On slide thirty-seven, we have a breakdown of what happens if you know supply chain breaks down, and that makes you a much more sophisticated investor when you go pitch. So that's what I would tell you to do to start. It looks like you guys are already on the on the way though. I would you're already in the deal strategy. I would start framing this out and even start. pitching investors. Do you guys have people lined up already?

Yeah, we've had people in the past that have invested with us in other deals that we already have that relationship. I'm considering it to make it a B so that we could— because some of them are accredited, some of them are not, and I don't think we'll exceed 30 on this deal. So I'm thinking to maybe start it as a B. What do you think?

Okay, gotcha. Well, this is— yeah, I think you're right on the right track. I'd keep going through this in Black Card. You guys are already in. I would meet with our real estate coaches. There's actually— real estate is our biggest group in Black Card. So, I would meet with a couple of them and run this by them. You can even run your deal by them. You can run your frame and structure and capital once you feel like you have validation. And then let's get you going. Let's get legal set up and let's get going. I think you guys are barking up the wrong tree.

Yeah, last time I set up a fund, I paid— it was like $15K. for an attorney to create our PPM. And then the second one, he charged us $12,000 as a courtesy since we had repeat business. But I don't know, it sounds like with you guys, we'll be able to be more cost-effective on that too.

Yep. And that's included in Black Card as well. And then, yeah, follow-on funds. We're actually, well, I can't say yet. We're working on something really cool to bring that cost way lower over the next couple months, but nothing announced yet. We're working on that right now. So if you're doing repeat funds, On two, three, four. Like you're right, it's it is a lot of times rinse and repeat. Why are they charging us another fifteen grand? It's like come on, come. So we're working nothing guaranteed yet. We're working with a number of firms right now to really drastically drop that cost for black card members because we're like it's not much work for these firms. Yeah, you know it's changing some dates and other things. Like the docs are already done. Why are you charging fifteen grand? So we'll see if that comes out here in the next by you know Q1 of next year. Very cool though, man. Congrats.

Thank you.

That's awesome. All right, y'all. Well done. It's been a fun call this morning. We've got— man, this has been great. By the way, this is just a taste of what we do in Black Card. So we do this, we do calls like this. I mean, this is— we're going kind of long today. Usually we do hour calls. We have 50+ office hours a month. We're doing anywhere from about 10 to 15 calls a week with coaches just like this. Breaking down stuff. So my my other coaches, they go live Monday, Tuesday, Wednesday, Thursday, Friday, Saturday. I go live every Wednesday with our black card members. We do this all the time. If you've gotten some value out of today, like this is just a taste of what we do in black card. If you have questions, you just hop on. We answer them. You can hear from other people as well. The cool thing is, if you don't like sometimes you haven't even you don't even know the questions to ask. Anybody feel that way? You're like, hey, this is great and all. I don't even know. The question to begin to ask on the right question. And what happens is you come on a call like this and you're like, oh, I never thought to— I didn't think about a charity endowment, or I never thought about even a Reg A. It just gives you new ideas for your business, which is something that helps me a lot in business as well. Just hearing from other people's problems, other people's questions, it informs me a lot better. If you guys want to learn more about what we're doing, fundlaunch.com/7koff. So make sure to, if you book a call, hop on your call, We're doing this. This is the first time I've ever done this is a $7,000 discount for Black Card. You guys can go book a call down below and the cutoff date for all these is November 21st. So all this, the $7K off deal, people are taking calls and stuff. We're bringing people in right now, but the final deadline drop dead date is November 21st where this promotion goes away. It all ends up. The $7K bonus is gone. That's the— it's before Black Friday. So this is kind of pre-Black Friday. We're dropping all this from there. And then at, well, you know, once Black Friday hits, everyone get ready. It's going to be crazy because we have the holiday collection is coming out from Funnel Launch. So be ready. Hold on to your seats because the holiday merch collection is dropping in 17 days, 12 hours, and 48 minutes and 32 seconds. Okay, so be ready. It's gonna be, uh, it's gonna be explosive over Black Friday. You guys will get some cool stuff on the merch store. So there's timelines and deadlines for you. Um, let's just take one or two more. How about that? Uh, we got someone queued up, right? Awesome. Kevin, welcome on. Kevin, current Black Card member on Phase 4. Um, welcome in, Kevin.

Are you there?

Can you hear me?

I can hear you, Kevin.

How's it going?

Good.

So I'm a new, new Black Card member. I joined last Wednesday.

Oh, awesome. Welcome in, Kevin.

Thank you. So, um, my question is, so I'm going to be setting it— I've already gone through the, the 3 phases. I'm on the 4th phase. You know, I've got to wait to get the 2 unlocked. I'm meeting with Dustin on Monday. Um, I already have my pitch deck. pitching it next Wednesday to some friends and stuff like that. So I'm setting up a master feeder real estate fund. It's a dual vertical. We're going to build a— so the builder that I'm working with is a friend I've known for 20 years, builds luxury homes. So we're going to build a spec home in a new area. Awesome. Here in Colorado that is going to be a five to five point two million dollar home. The cost on building is three point eight six million. We're going to split that with investors fifty fifty. Okay, and and then we're also the second vertical is. Multifamily. So we have to raise $1 million to get the— get a loan to get the lot. And, you know, and the $3.86 includes the lot, the lot costs and stuff like that. So, okay. So my question is, how do I set up the fund? So I, I'm— I've been wanting to do multifamily for the last 2 years. That's what all I've been studying, that and this, you know, raising the funds and stuff like that. I, you know, I learned all about syndication, you know, and then I was— I had a masterclass. I saw you, I went through your masterclass, and it was like, well, this makes more sense, syndication, because we can do it. It's repetitive. You can do it more and more, right?

Yeah.

So how do I set that up with the builder? Like, do I set him up as a 50% partner in the SPV sidecar, or do I just make him a, um, you know, part of the main, the main fund?

And this is for both? He's the same builder on both these?

Um, he— so he— so the multifamily we're talking about building, but, you know, we're looking at Class A, Class B, properties, buying them, um, you know, Midwest, Southeast areas. Um, but, uh, he's— he doesn't have the knowledge that I do on the, you know, on the real estate side.

He's—

but he's got— he's an expert on the builder side.

Okay, so let's just take these— so let's just talk about this one for a second then. Is that okay?

Yeah, and that's the main one. That's the one that'll get us going.

So, so the question is on the builder as a partner. What do you like? What do I do with this builder that's a partner? Correct?

Correct.

How is the builder currently incentivized? What's the current structure?

So, so he's going to— he's discounting. So he's going to get paid basically supervisory or he's going to build for, you know, 5% over cost. And then he will be, you know, in order so that he doesn't get hit with all the taxes I came up with, Um, you know, he, he'll get capital, long-term capital, because if we hold the lot, it's going to take a year to 18 months to build. So if we buy the lot and it takes that long, he can get long-term capital. So he's going to be part of the split on the GP side of the SPV.

Okay, so is he on the GP currently?

Uh, no. So we haven't, we haven't, I'm, I'm at that stage.

Yeah.

I'm at that stage right now.

Okay. So, I mean, a couple options, um, and I'm, I'm, tell me if I'm wrong. I'm making assumptions here. A couple options though, is he just is the builder because he has, I'll draw it in a different color here. He has his current company, obviously that's a building company, a construction company. Right?

Right. Correct.

So I'll drop— what's going on with my pen? Did it die or something?

Here we go. Let's see.

Um, oh no, not the pen. Hold on, give me a second. Let's see if we can reset it here.

Needs to be charged.

Yeah, shoot. Maybe I'm out of Out of battery or something.

All right.

We'll leave it up here. I'll just talk through it then. Okay. So, the builder has his own company. You can put me full screen, I guess, since we— well, I guess we can visualize something here. So, he could just keep his company and you just pay him 5% over cost. You keep 100% of the GP in the management company. So, you run the fund side of things. He runs the building company and he gets paid as a builder. He's just the preferred builder that you guys are going to use. And you run the fund and you keep it there.

Right.

It sounds like though he wants some upside on the GP from what you've been saying.

Right.

So, and I guess the question is, is this a partner you want to work with like long term? Is this like a guy that's like—

I've known him for 20 years. He's a stand-up guy. I mean, it's like, you know, we went through the Great Recession together and, you know, because I used to— I actually used to be a subcontractor for him and he came to me with this. with this because of my real estate expertise in the last 10 years.

Gotcha. Okay, so then that makes more sense of maybe you bring him as part of the GP and the management company. You would still hire his company to do the construction. And now because he's on the GP and management company, now there's a conflict of interest. So, it's a GP, like hiring your own company to build the building.

Right.

Does that make sense?

Yep.

You're on both sides of the table. So, what you have to do, if he's on the GP or management company, you need to then build the building at or below fair market value because you're a fiduciary to the limited partnership.

Correct.

And so, anyway, just so you're aware, you would say, hey, you know, I don't know his name, but hey, let's do this at or below fair market value. If we were in a court of law, We would tell our investors, hey, yeah, we actually gave you guys a discount from the builder because he's on the GP.

Right.

It was, it was the net benefit to use this builder versus 20 other builders we could have used because we got a discount because one of the GPs owns the building company. That's how it's got to feel. If it's the opposite way, then you can, you know, you can be— that can be fraudulent and other problems can happen from that. So, that's how I would think about it. And I guess back to the question was how much equity to give him then or how to split it up?

Yeah, I mean, like, do I, uh—

What do you guys think?

Do you guys want to be like 50/50 split? Like, do you guys see yourselves as equal partners? How do you see it?

Well, so, so that's, that's what I was, was thinking originally. And then as I went through, you know, on, on your— on the Phase 4 and started learning more about the different, um, uh, like the special purpose vehicles and the sidecars and, and stuff like that, I was like, well, do I just run him as a sidecar and do the sidecar 50/50? And then, um, uh, you know, and then keep, keep 100% of the, of the GP, you know. So, you know, so I, and so that, that's why I was like, you know, I mean, I was going like 50/50 and then, you know, it's like, well, I don't know if, I mean, it's, we want to repeat on the, on the. On the build, you know, spec house. But I'm thinking, you know, I mean, I know other builders and we could do this with them also. And then there's that conflict because he's a partner and we're bringing on other, other builders, which would be under, you know, they would be partners on the, on the SPVs.

Yeah.

Uh, it's, it, it's, it's gotten more complicated.

So yeah, this is what I would— I mean, There's 2 routes. The route— I think the route number one is you stay separated, or route number 2 is you become married. And I think it sounds like you guys like each other. You've been working together for a long time. I am a big believer in equal partners.

Okay.

Now, people might say that— I don't know, you might hear other things. I'm just telling you from my experience. I've ran different businesses. Anytime Like, I guess I go through all my businesses right now. Like, all of— like, I am 50/50 partners with Mason on Funnel Launch. I am 50/50 partners with Dan on Ugly Unicorn. In Funnel Launch partners, we have 4 partners. We are all equally weighted. In a startup, in a beginning of— now, later on, I think in bigger businesses, it can get skewed. But in a startup, like, if I took me and Dan, What happens is if I was like, hey, I'm the cooler partner, I get 70, you get 30. What happens, I believe, is the 30 partner resents the 70 in a startup and actually will work way less. And I always see those partnerships break up. For whatever reason, when they're equally yoked partners, I feel like partnerships work out. I have 2 amazing partners. Like, my partners, like Mason and Dan, are phenomenal partners. Like, I love working with them. I think they love working with me. Like, we've been doing this for years. It's worked really well. So to that end, what I would maybe say to you, if you guys want to build a business together as partners, I would, if I was you, I would say, hey, let's do this. Let's actually be, let's be 50/50 partners. You're going to take 50% of the GP and 50% of the management company. And guess what? I'm also going to take 50% in the construction business side. So, we're equally aligned. And yes, you're going to spend more time on the building side. I'm probably going to spend more time on the fund, but we're both helping each other out. We're equally yoked together. And that would create a— that would align you guys' incentives together. That's one option. What do you think about that?

Yeah, no, that makes sense. I mean, I don't know if he would, if he would go for the 50/50 on the business, on the building side of it, because it's, It's a 25-year-old company.

Well, I would just say just our projects.

Okay.

So, the pro— you keep whatever other stuff you got, but the projects that come from the fund, we're going to split those 50/50. And guess what? I'm going to invite you to my business, which is the GP and L manager company, and we're going to split 50/50. So, we're just equal. However this group makes money, we're splitting it 50/50.

Okay.

That would be one way to align you guys.

That makes sense. Yeah, that makes sense. And that's kind of the direction I was going with it. But You know, because, because I'm at the legal stage, you know, it's like, okay, well, what if I want to bring on another partner later on, you know? And, you know, so, you know, I was thinking maybe 51/49 split, you know, and then that way one person can override the decision.

Yeah.

You know, the— it's funny. So, you know, anyways, and I, I will give you my skewed— I'm telling you it's skewed because it's skewed. But I've, I've the same pitch. A lot of lawyers have told me, make sure to do 51/49. And make yourself the bigger one. And even with this, you see it just— there's 2 partners, one will resent the other because they always know they're the junior partner.

Okay.

I just— I've just seen it be a problem.

I—

what I would tell you to do is do 50/50 and then find an external person, or maybe it's 3 people that can serve as a tiebreaker for you. And they just serve as like an advisory committee.

Okay.

Just, I just, just from experience, I've seen that. Um, if bring on other partners, you would just say, hey, if, you know, and we can decide that down the road, we got to make things unanimously, or we go to this tiebreaker here and we can, uh, bring on a third party. We, we will dilute equally together through if we brought in another partner. So, we still stay equally yoked. Another thing you can do is you do things by supermajority with 3 partners. And then finally though, what I've seen is one, maybe you have to set up an external committee here is, hey, you got to do your job though. Both of us, we both have roles and responsibilities that are listed out. Every year, we're going to have an annual review. This works better with more partners, but you say, hey, if you're not fulfilling on your duties, every partner is subject to clawback.

Mm-hmm.

of 50% if you're not doing your duty. So, and we're gonna have an external committee or whoever the— this, maybe it's 3 or 5 or 7 people, and they're gonna look at our duties. And if we really feel like someone's not doing their duties, they can be clawed back 50%. So, you'd be cut down to 25%. Now, that works better when you have like 4 partners or 5 partners because then it's, you know, there's more people to like kind of point things, like look at. But it keeps everyone accountable to make sure they're doing their duties together. So— Those are a couple options. Again, I'm telling you a very biased opinion. There are other ways that also work really well. I've just, in my experience, that's what I've seen work well.

Yeah, well, I mean, it's— I think both of us are really fair people and, you know, it's— I mean, he— I've tried to bring him on more onto the real estate investment side and, you know, I mean, over the years and he just came to me with this right at the right time because that's when I was joining Fund Launch and Black Card, and you know, and it's like, okay, this is great. And so it's like I've moved like at record speeds to get through to where I'm at right now, you know. And then Drew's holding me up. He won't unlock my Phase 2 and Phase 3.

We'll get those. We'll get those set for you. And by the way, if you've been Black Card, we've sometimes set gates for people. We've had people join Black Card and like, okay, I'm ready for legal like tomorrow. And we always go, hold on, like, let's, let's really stress test your fund so that we don't have to go through legal 4 times. Because people go through legal and then they find a new partner, like what you're doing. And then they go, crap, we got to rewrite all the documents because we— I just want to bring on a new partner. And so, we have to redo legal. So, this is why we do a couple of gates inside of Black Card so that people are 100% sure they want to do what they want to do.

Right. Well, I'm 100% sure because it's been, like I said, it's been 2 years, 2, 3 years, probably. That I've been moving, working. Yeah, 2022 is since I've been working on moving towards this. So that's why I was able to fly through the, the 3 phases. So.

That's amazing. Well, I, I mean, I'm just hearing about all your stuff right now, but, you know, I think you got it. It sounds like you got a good partner lined up. I'm a big partner guy. I'm a believer in partners. I, uh, I think 2, you know, 1 plus 1 equals 3 or 4 when you have a good partner.

Right.

And so I'm, I'm big on that.

So.

Anyways, I think you're barking up the right tree, Kevin. I think that's awesome.

All right, I appreciate it.

Yeah, well done.

Thanks, Bridger.

Yeah, thanks for having me. Send me a message on Slack if you have follow-ups or have more questions.

Okay, will do.

Okay, we've got— we're going to take one final question here and then we'll wrap up. Again, funlaunch.com/7koff. There's a text down below if you're curious about joining Black Card. Again, that's just to book a call. It's not to join. It's to book a call to then learn more about joining. So you can come talk to our team, make sure it's the right fit for you. We wanna make sure you're the right fit for us, and so that's why we do phone calls. So you'll talk to one of my team members at funlaunch.com/7koff. That's how that works. But again, you know, this is what we do day in and day out with Black Card. It's pretty fun. Alright, y'all, let's take one more and then we'll wrap up for today. I'll bring you on, Frank.

He's coming. Jason.

Frank. Frank.

Frank. Yes.

Hello.

Hello.

Frank, welcome on. Frank, good to have you here. Where are you? There he is.

All right. Good to meet you. Good to meet you. I'm very excited to talk with you today. Happy Saturday.

Yeah, I wish I was out on a walk like you. That looks nice out there.

It is. We got some really nice weather here in New York. It's like 65 degrees, clear sunny skies, and We like to get outside while we, uh, we do business and keep the energy moving.

That's great, I love it. Well, what can I help you with, Frank?

Well, um, right now we're in a very outstanding leveraged position. Um, I had invested, uh, several million dollars into a cultivation intellectual property for cannabis. Uh, we put together a way to research and develop it to de-risk the opportunity for investors to get involved who can systemically deliver high-quality cannabis. And now we want to be able to scale up our business model. We've been working with a few different companies to look at, look at an acquisition and also to invest into companies, do fuel injection where they kind of stalled out. So for example, to kind of break it down, we have a license here in New York that we have of our own that we're looking to invest $5.8 million into. And then we have a company in New Jersey that is looking for a fuel injection of about $1.5 million. And what we're looking to do essentially in California and New Jersey is to add a retail component to these businesses and the intellectual property for cultivation and quadruple the gross revenue from, from the point of where they are now. And so what I'm looking to find out is how to properly structure that. And raise the money, but also to know how to have leverage over the business within the right of what we're investing into it so that we're not— there's a recourse. There's not a non-recourse to what we do when we work with these other companies.

I see.

Yeah.

Let me just make sure I got my numbers down correctly. If you can share my screen.

Sure.

So, the idea is you want to raise some money.

Okay.

To work with this California and New Jersey company to help build out the retail side of their cannabis business. Is that a good summary?

Uh, yes. Bringing a component of our intellectual property for cultivation and to— we're purchasing a retail dispensary in New Jersey and California, because right now all they do is wholesale.

Gotcha. Are you doing a— are like, so on this California, New Jersey deal, are you going to buy How, what percent of the firm are you buying? Are you partnering with them? Are you taking over the firm? Like, what are you thinking?

Well, that's the thing. I'm at a point right now that I want to make the right decisions to whether I should partner, purchase the business, do an acquisition. Um, right now these businesses are not doing well, and it's a good opportunity for us to come in to inject, uh, to buy the dispensary. So, um, that's really my question. Should I be a partner? Should I do an acquisition? What is the best way to gain leverage over an opportunity where we have the intellectual property to improve the quality of cannabis and sales therefore, and then add the retail component of it, which takes them, doubles their profit right out the first, you know, first quarter.

Gotcha. Let's take one of these at a time. So California, the California one is $5.8 million.

Is that— Um, that's the new, the New York one is $5.8 million. And then the New Jersey is $1.5 million. And then the California one's $5 million.

Okay, gotcha. And that's total purchase price or what they're requesting, or that's the value of the business?

That's the real estate and the value of the business.

Okay, so that'd be a full business buyout.

Correct. Yeah, that would be the one in California, full business buyout. The building and the business altogether, $5 million, $3 million for the building and $2 million for the business.

I see.

Well, very interesting. Um, I am not an expert on cannabis and how to buy or use these businesses. Now, a couple options you could have though, from a business/fund perspective. Um, and you already know these, but you could buy out the whole business, keep the partners on, do a roll equity. We talked about this earlier, if you were on earlier, about roll for equity. I usually am in favor of a roll forward of equity. So, meaning, it's a lot of work to like re— unless you hate the management team and they're just mismanaging this company drastically, I would keep the management. If it was me, I would keep the management team on.

Right.

I would buy either a minority or a majority stake, but give them upside of say, hey, I'm going to buy a stake here. We mentioned earlier, a 30% or 40% upside for them. And we're saying, hey, we're gonna do— we're buying 3 of these. We got one in New York and one in New Jersey and one in California. We're gonna— maybe they're rolling together as one, or you keep them separately, but either way, you're gonna make way more money once we come in and help you with this cultivation and the retail, but you're gonna stay on to help run the business because you know the business really well. So I usually default to keeping the management team on. You inject capital, maybe give them some process, some help, help with the cultivation, some new vision. You sit on the board with them, and, uh, and then, you know, if they're not the right team, you have the ability to fire them if they're not the right team. But, uh, that's usually where I default. I know, where do you land on that? Do you want to fire the team or keep the team? What are you thinking?

Well, what I look at is like, you know, the, the team itself, if they're open-minded to do it. So I feel like there is an opportunity to, to work with the team to create an opportunity without ruffling too many feathers. So I think it could be potentially— I mean, we just went there yesterday and they have this, uh, the building where they have about 58 investors in New Jersey and they have $16 million that they put into it and, uh, they're only making $3.5 million and, uh, their expenses are $3.5 million. And the reason being is because it's been mismanaged, as you just said. Um, so now it's just us taking over, but Logistically, what is the smartest and wisest way of doing that? Because they are interested, they are in trouble, and they know that, and they're looking for us to come in to invest $1.5 million into another part of building out the, the facility. And then we would be basically also taking over the existing business that they have as well. So there's a question of how do we— balance it out the right way so that we approach them the right way. Because at the end of the day, our end outcome is to wrap all these 3 companies together as a multi-state operation and then go for an IPO once we have a track history out of the gate, 12 months tripling the profits.

Yep, very cool. Well, so the, yeah, the question then is around negotiation. It sounds like, right, gain leverage like you mentioned a couple times. A couple of things. You just mentioned it right there. Number one, hey, you're struggling, obviously. Let's see if— and I'm talking to the business owner, not you, Frank. The business owner. The business is struggling, obviously. What we have seen with full launch partners, we actually come in and work with them for like a week or two and show them all the great things that we can like add to their business.

Okay.

This is before we've purchased anything. We just say, hey, you know what? I'll give you a free week of Just I'm gonna come work for you guys for just a week. Let me look in the books. Let me just like okay point out some stuff. And what happens over that week is they go crap. These guys are really smart. We need them.

We want them.

We I want to be partners with Frank because man, he's sharp. And you don't give him the whole all the secrets, but you just point out things that are wrong and how you would fix them. And then that'll warm them up to wanting to partner with you. Number one. Number two, from a leverage point of view, it's like hey well there's lots of other other dispensaries in there and you guys are gonna. crash and burn anyways.

So—

Right.

It sounds like you already got a lot of leverage.

You got—

it sounds like— and if they like you as a partner, it's like, I think there's tons of leverage there. And then the final leverage is the carrot of, hey, by the way, we want to roll— I want to work with you guys. So let's roll your equity into this parent company. We're going to be buying a New York one, a New Jersey one, a California one. And we hope in 24 months to do an IPO. You guys are going to get a piece of the parent business. as well. So, if you do well and your store crushes it, you'll be part of this bigger conglomerate. We'll get bigger multiples on an IPO. And it gives them a carrot.

Definitely.

It's like, oh yeah, I want to partner with Frank because number one, he gave me lots of insights on my business. He's a good guy to partner with. Number two, we're losing money anyways. It'd be nice to have some capital. And number three, if we work extra hard, there's a carrot at the end of the tunnel, a light there that we could IPO and make a big exit down the road. So I think those are kind of your 3 main propositions to these, uh, to these business owners.

Absolutely. Now, would you recommend a SAFE note or a convertible note when you're raising money for a business opportunity like this? Right now, what we were gonna do was invest some of our own debt capital into it or raise money outside of our credit lines for other businesses and then move it into here at a, you know, 7 or 8% interest rate. And then pay that in the beginning just to jumpstart the opportunity, then go and raise the investors once we have these things locked down, these 3 investors locked down.

Yeah.

That could maybe work. But again, that leverages your other businesses.

Right, exactly.

So if this one collapses, then your other cash cows collapse, which kind of stinks.

Yes.

If it was me, I would probably keep them separate. I would try to get, I would, But again, you can decide. I would probably keep them separate to make sure that one doesn't kill the other. So, that would be raising debt or equity to do these acquisitions. By the way, you might be able to start with like a— they do a seller finance note.

Right.

You could do that as well. If they really do need a cash injection, fine, we'll do it. And we'll raise— and I always default to— I like funds. So, you do a GPLP fund for this purchase. You also could do an SBA loan. So you could get debt through, I mean, these are under $5 million. There's, what I've heard, I've never done one, but I've heard there's good lines of credit under $5 million from SBA that are cheap, you know, as well. So anyways, there's a couple options there that I think you could go. You mentioned a SAFE note could also work because these are, yeah, smaller amounts. So if you're trying to go for a big conglomerate, Yeah, I guess all those could work. I, again, all those could work. So that's up to you, I guess, up to you to decide.

I mean, at the end of the day, we're looking to do, probably hit somewhere around, with the New York locations and with everything we just discussed, is somewhere around $20 million raise this year. So I was just looking to see what the best platform was. I know people do crowdfunding, so many people even launch tokens on, utility tokens on, uh, on the exchange. Uh, to do this sort of thing. Uh, I just want to kind of get your feedback as to the smartest way to approach this.

And I would, I would say, and because you're in cannabis, there are, at least there has been, maybe they're going away now, but just flags with how you're raising money, who you're raising it from. A lot of groups block and stop cannabis.

Um, right.

A clean way, if you're like, hey, we want to raise, we're starting with a smaller amount, but then raising, we want to raise $20 million this year and probably more in the future. I would think a fund route then would give you that flexibility to do a lot more. If you were going to tell me like, hey, we only need to raise $1.5 million and then we're done.

Right.

Yeah, a SAFE note is great. There's like 20 options. But if you're telling me I want to raise $20 million this year or the next 12 months, and then I want to do another slug, I would tell you then do a fund. That's much bigger and scalable. If you're just doing one deal, then yeah, do an SBA loan or a SAFE agreement or whatever. But a bigger scalable deal, I'd do a fund.

And would you recommend the specific— I know you have 5 different ways of doing it: 506, , the 99. I mean, what is the best way that fits this situation? And, and how would you develop a marketing campaign to be able to attract the right investors into this very niche, niche, uh, industry?

Uh, I think that we'd have to do a little more deep dive with you, maybe in Black Card. We have to like really look look down the road with you. The most common though, you just mentioned them, Reg D, 506 or 506. That's just the structure. It does. And it really doesn't matter. You could— both structures work well. It'll come down to then the marketing campaign of how you're going to close and bring investors in. It sounds like you're barking up a good tree already.

Okay.

You're in a, you know, you're— it sounds like you've already done well in business in the past as well. Both those can work for you. We'd have to turn probably probably do a 3C1 fund, so I'd probably do a Reg D 506B, 506C, and then probably do a 3C1. A 506B allows you to raise from 35 non-accredited, so that might be interesting to you guys. But we'd have to look a little bit deeper, I think, inside of Black Card on, and then also building out a go-to-market strategy around then your pitch, how you're going to present this, what's the offer, what do investors get, how long's the duration, when do I get paid back? Those are all questions we got to figure out inside of Black Card so that. Uh, but I hope that answers your question, Frank.

Yeah, no, that's great. Yeah, we were looking to do like a 5x multiple on it, and, uh, for the investors, and, uh, we're looking to take this to a $700 million valuation in year 4 and 5. And so we're really excited about, uh, yeah, learning more about it. Maybe we could set up an email or something like that directly to you to, to follow more detail through the, the rest of the question, because I know it's, uh, A lot of stuff going on here. And this is, uh, the end of the, uh, the close of the day for you.

Yeah, we're wrapping up here. But yeah, Frank, good questions. And talk to my team and me if you're in Black Card. Send me a Slack message. I'd love to talk to you more. We can get it, we can get things figured out. And this is what we do, you know. We— and actually, by the way, I want to say we have a number of people in Black Card doing cannabis as well. And maybe you— it'd be fun to— interesting to, to have you talk with them or see what they've— because We've been doing this for a while. I remember 3 years ago, like cannabis, they couldn't have bank accounts because they were, you know, there was all these problems. So they had, we had this like sub-community in Black Card with cannabis and they were all trying to figure out how to do banking and licenses. It was just like, it was quite, and I think now it's gotten a little easier for people. So anyways, Frank, good to have you on today, man. Thank you very much.

Look forward to catching up with you in the near future again.

Thank you.

Yeah.

Thanks, Frank.

Thank you.

Well, great day today, y'all. I mean, look at our iPad here. We got— look at all these like sub things we've drawn out, man. We went crazy. Uh, if you want to watch the replay of this, it is on YouTube under my account. You can just go back and see if you missed the beginning or something. We went through a lot of good questions. Um, phenomenal time. Finally, uh, last call, if you want to talk to my team members, funlaunch.com/7koff. What that does is it reserves your golden ticket, and then you can book a call with one of my team members, and then you can decide if you want to talk Talk to us more, or if you like what we're doing. Again, merch is live on fundmanager.com. You can see my merch here if you want custom merch as well. It's pretty fun. Great day today. You can text my team below if you have questions. If you want more, you know, content or questions or whatever, text my team down below. We can help figure this out for you. Great day, y'all. Happy you came on. If you can, give a thank you to my team. They've been doing this for three days, so please in the chat type a thank you to my team. These guys are these guys crushed it. And well done showing up and being live with us. Anyways, we've had a lot of fun here. And let's hopefully the— don't tell me the score of the game. I have not seen the score of the BYU-Texas Tech game. I'm sure BYU is getting slaughtered right now. But maybe not. There's always a chance that they're doing okay. I've got it recorded. So thank you all, team. You guys are amazing. We'll wrap up today. Again, we'll leave that link live, funlaunch.com/7koff. Then November 21st is the deadline for all these cool Black Friday bonuses we're doing is the 21st. Everything will be done then. You guys are amazing. Thank y'all, and we're signing off. See you later.