Debt Validation Fund Investment Opportunity | Titan Impact Group

So welcome everybody to Titan Impact Group and OCG Capital with Matt Owens. He's my partner in this. Really, really excited for what we're doing and for all of you though that know you understand that my first commitment to everything that we do is that we leave every person, property and community better than we found them. And what I love about this is along with adding commas to all investors bank accounts that is exactly what we're going to do here. So I'm really excited about this. So Matt is the brains and the genius behind this. I love that he's way smarter than me. So with that we're gonna go ahead and get started.

Maybe just with math Catherine. That's about it. I don't, I don't have the, I don't have the lovely personality. So Catherine and I joke all the time about her being, you know, the, the personality behind it. And I'm just like numbers, that's all I think about is number so. And I'm a CPA and just to give a little background again, my name is Matthew Owens. I'm a California licensed CPA and full time real estate investor. I quit my CPA firm job in 2006 to go into real estate full time. And since then I've flipped a little over little bit over a thousand houses. We have over 35 million now l out to flippers in different markets around the country and I've raised a little bit over 150 million for different real estate and non real estate and venture capital and private equity type deals. And this is one of those types of deals that it's all a matter of structure and how you can protect yourself. And at the same time I really love making a difference in people's lives and doing something positive with the investments that we focus on. And it's exciting to be able to, you know, help people at the same time as make money. And so I think that you know, is a really important factor here whenever you're investing in anything to focus on how can you help change, change lives and, and affect the community as a, and that's, that's what got me really interested in this to start off. And then they told me what the returns were and I was like, oh, now I'm really paying attention. So, so thank you guys for, for joining us today. We really appreciate it. Just to give you a little bit of understanding first we're, what we're doing here is we are doing what's called a debt invalidation investment and that's what the fund is is built for. And we are helping consumers invalidate their credit card debt from creditors that are not abiding by the Fair Credit Practices act and breaking the law in their collection practices. And those, those ones that hound you non stop, that call non stop, you know, people that are struggling and you know, having a hard time because they're, you know, mountains in debt. And with the inflation that's occurred, we've seen this, you know, skyrocket with a lot of people's debt. And we've seen a lot of people that are in need of this type of service. And so we work with different law firms to help invalidate their debt where they get wiped off of their books and do not owe that debt anymore. Which is really exciting because it takes them from this position over here, the drowning into a lifeline to where they have a plan to literally be completely out of debt within about a two year period of time or 24 month period of time, and their credit being repaired at the same time, which is really cool because it puts them in the right position to be able to build their life back with all this with. And a lot of people have, you know, people think, hey, people are in credit card debt because of, you know, bad spending and different issues like that. But in reality most of it actually comes from like health problems and things like that that come up in people's lives because they're barely getting by and then some major expense happens in their life and throws them in the wrong direction. And so some of it of course, is built in purposeful lack of financial education by our institutions. And this is what I really love doing. I help run a nonprofit called For Investors by Investors that teaches financial education and real estate education. So I love teaching about this financial education aspect of this as well. So just to give you a little background on this, we have millions of people struggling with this, this debt levels and it's getting worse and worse with the way inflation is. I don't know if anybody has seen the latest news that came out recently and articles that come out talking about the different fast food chains and food increases in prices. And it's been astronom like 400 plus percent increases in pricing in some cases for some, some goods. You know, a lot of them are as low as 20, but that's the low side, which is insane to say that in the first place over the last few years. So really big problem that's continuing to occur out there. And what we're doing is we're letting the attorneys go through and help these Consumers that have been written off by the collection, by the creditors, by the big credit card companies and sold to consumers or to creditors for pennies on the dollar to these collection companies that hopefully they'll collect 5% and the collection companies make a killing. So they don't really care if what percentage of them necessarily defaults. They're looking at their numbers as a whole, which is actually very similar to what we're doing here with regard to our investment. We're looking at pools of debt to protect our interest, but at the same time working against those, those big collection companies to help people when they are acting, you know, out of the legal process. So what these attorneys are going through and helping people invalidate the debt over a 24 month period of time, which is really, really cool. And I'll kind of explain that in just a moment. So what's cool about this too is that, you know, we're actually, what we're doing is we are lending money secure to an entity called Resolution Processing that is owns a pool of these legal fee receivables where the attorneys are invalidating the credit card debt and they put the customer on a legal fee receivable and we are lending our money against those receivables at 25 of the value of that receivable. So we'd have to have a 75 default rate to break even in this kind of situation, which is pretty insane. And they have typically a 80% collection ratio on this debt. And so investors in this case are investing in a promissory note that's secured by these receivables at 25% of the value of those receivables for up to a 36 month period of time. And the operators that we work with and my team on the legal side, Resolution Processing, we go through and help invalidate that debt and buy more debt over a period of time with the same fund. So actually, even though we're initially at 25% of the value of that receivable, we actually start to get more better and better leverage ratios on our side and more collateral as they repurchase debt across the board. And so investors are actually getting 20% on their money continuously starting in month one for up to a three year period of time on this investment. So really exciting stuff when you can make a high yield return that beats inflation. And, and over here you're helping consumers get out of this credit card debt on the other side. So, and we're not using any leverage involved. This is a strictly equity investment into debt collateralized by those receivables, those legal fee receivables that are in place. And they're typically able to reduce their debt by 50 to 90%. And so what they do is they come in and they analyze all the borrowers different credit cards and they say and their different debts, some it could be medical and things like that that was written off and are typically able to invalidate 50 to 90% of that debt because those creditors are not abiding by the Fair Credit Practices act, the remaining percentage of it. It actually puts them in a great position to do a final consolidation loan at the end for any other minor credit cards that are not picked up, like for example Discover Card and some small credit unions, for example, do not sell their debt off to collection companies. They collect their own debt. And so they're not able to be invalidated through that process because they have legal right to collect that debt. And so they're able to go through and wipe out 50 to 90% of that consumer debt and be able to actually clean their credit at the same time. Which is really, really interesting because all those old debts that they're invalidating literally get wiped off their credit and clean their credit up at the same time. And they only have a couple of additional, you know, credit lines available that are in default and those are now then available at the end of this term to be able to work into a consolidation loan instead of a restructuring loan. Not to be confused with that restructuring loan. Restructuring will stay on that consumer's credit for seven plus years. So really long time of not being in a good situation from a credit wise versus doing a, a consolidation loan of piling anything left into one payment stream. And we are already even have the finance companies lined up to help them with those things after they finish up with our service. So and I'll give you a detailed understanding of how that process works as well in the meantime. But investors getting that 20 return every single year starting paid on a monthly basis. And then of course being able to now go through and be collateralized at 25% of the value of that receivable for up to a three year period is really, really an interesting play in my eyes to create a lot of cash flow to help you cover your monthly expenses with, you know, cash flow and create that financial freedom, which of course we all know is an uphill battle and difficult to do. And so when investments like this come around, I typically jump on them and really want to do my homework. And I go through a 200 point due diligence Checklist before I invest in these opportunities. And I personally put my 250,000 of my capital in first, got all my money back and everything before I went through and invested and raised capital for this type of opportunity. So, Catherine, I will let you do your background. I'm sure most people on the call know you. I don't know very many people who forget you after meeting you the first time. So I'll let you do the honors of your own, your own bio.

So for most of you who are here, you, most of you do know me. For some of you who may not know me, I've been an investor for well over 25 years. I'm Canadian, married my late husband who was American in 2001. And we came to the US and started out, he literally had a dream, came to this country with nothing at 26. And by the time I was 30, we were millionaires. And so I love the American dream and compassionate capitalism. It's fabulous. And inside of that understanding creating multiple streams of income, the average millionaire has seven streams of passive income. So that's what I started doing. I started out doing buy and hold. I did wholesale. I ran a program here in Arizona called the Flipping Females. We partnered with women and showed them how to fix and flip and we flipped about 500 properties here. I went on and I started my own hedge fund and we did vacation rentals, residential development, commercial development. And I've moved on to, you know, do two things. I love to rent the dirt and I love to be the bank. This is being the bank. And make a huge impact. So we invest in mobile home parks, triple net lease, commercial medical office space. And then of course, investments like this where we literally get to be the bank. And my number one checkbox for participating in any investment that we do is that it really must leave every person, property and community better than we found them. And that's exactly what we do. And Matt will share with you more about that and with the veterans and everything. So really excited to be here and excited to be working with all of you and adding commas to your bank accounts.

Absolutely, thank you. And I mentioned my bio, of course, at the very beginning of this, and so I'll skip that piece of that, of course. And Justin La or Lauti is my coo and I brought him on, meeting him at a military group that I'm involved with where my dad was a ranger and a sniper in Vietnam. And I have taught a lot of military members from Camp Pendleton, a lot of Marines for free and taught six month boot camps for them and it turned into a very, very big group. And friend of mine that runs a group teaching veterans how to create financial freedom in their life through real estate and different strategies that they deploy. And that's how I met Justin. And through that group we were able to negot discounts for people that need invalidation services for military vets, active duty and retired vets, as well as police officers and firefighters and people basically with the shield, basically trying to shield them from the unscrupulous lenders and you know, the creditors. Right. And so Justin came on board with me to be able to help with that process and you know, help with that, that shield aspect of this and be able to create that financial freedom and help different investors that, you know, wanting to get involved in, in, in the real estate, but not in that position yet and trying to put them from this position into an amazing position to be able to build their wealth long term. Russ and Gary are both my partners with regard to resolution processing. Russ and Gary have been doing this since 2017, this invalidation service. And they've been, you know, killing the game lately and really, really ramped up their ability to acquire assets. So I've already raised over three and a half million dol as well. And what's really cool is that they've been able to wrap up their affiliates to where they can buy a significant amount of these contracts and get people on board with the different affiliate marketing companies that they've set up to help find people that have this need, of course, across the board. So, so that's, that's the team right there. And let's go on to the next page. So obviously we talked about. The whole point here is that you. We're buying these pools of receivables to decrease our risk while also being able to obtain a 20 return over a three year period of time or each year for three years. So 20 annualized and then helping people get out of debt with that social impact of this, which is really, really key across the board, of course. So let's talk about that debt invalidation process. Okay, so what's occurring is someone might be, you know, 30, $40,000 plus in credit card debt. We just got one of our military vets out of debt for they sign the service and they're invalidating $70,000 out of $90,000 worth of credit card debt for this military member. And what typically happens is they're paying minimum payments of $1500 plus with 30% interest rates or 20% to 30% plus interest rates and, and not ever climbing out because they're paying so much in interest. It's almost impossible for them to climb out of this situation. It will take years and years to do that. And so typically if they're running into financial hardship, they will stop paying. And those credit card companies then sell it to the collection companies. And the collection companies are not abiding by those credit practices. Right, The Fair Credit Practices act like I mentioned. So the attorneys go do an analysis of all their credit cards and then they, they say, okay, based on this information, we're going to sign you up for about $8,000 of legal fees. We know you can't afford to make one big eight thousand dollar payment right now. So we're going to put you on an $8,000 receivable for our services over the next 24 months to invalidate all your debt over a 24 month period of time. And we're going to make the payment around 400amonth every single month until it's paid off in about 24 months with zero interest. So they're out of debt in literally 24 months and all these debts are completely invalidated. They've been able to enact the legal procedure procedures. As soon as they sign up and make their first payment, the attorneys are going and telling creditors with cease and desist letters, don't contact anymore, contact us. And they work through that legal practice. And typically the average receivable is around $8,000. And the cost of that receivable is approximately $2,000 because that cost typically goes to the affiliate for being able to market and find those clients. And those clients, it usually cost them around 1500 bucks and the affiliates making around 500 bucks in profit, you know, per affiliate basis. So we're really good position there. And that $8,000 is historically collectible at about 80%. So we're looking at about $6,400 collectible on an $8,000 debt on average over a giant pool. So if we, and I'll show you the math on how this breaks down to protect us, when you're looking at that pool of debt, they actually don't even go after the people if they don't, if they don't actually pay, but they stop the invalidation services which is really what's going to help them get out of that, that debt position. So there's a major incentive for performance here. In addition to that, we actually don't get allocated the debt to our capital until they've made at least two Payments on the account, which is usually the biggest default is the first two payments involved in any particular receivable that's, that's getting signed up. Okay so, so that is a really big safety factor. And even the affiliates that get paid the $2,000, there's a clawback where they have to make at least two payments for that to actually be a, a valid receivable or valid payment to those, those credit those affiliates. So here's what's happening. So us as the, the affiliates come in and they're marketing for those clients and they're marketing for resolution processing. Resolution processing, processing is checking all of their backup work with regard to their, their different credit lines and what's going to be invalidated, what can't be invalidated. And analyzing that situation, once they know they have a viable client, they sign them up for those legal fee receivables and they start making around 400amonth as a monthly payment for those legal services. And after the second payment they go make that payment over to the affiliates. We as the investors put up the $2,000 in that case and we start collecting the receivable back to us. So there's $296 available to pay us back for our, our actual money here, our actual cost associated with this particular receivable. And now they're actually paying us that 20% return to the investors at the in the meantime and they're rebuying additional contracts with the, in any additional funds that are out of that $296. And I'll show you the breakdown of those, the actual payments in just a moment. So again, 36 months or less. We have pools of accounts receivable contracts. The minimum fund size is250,000. The we're looking at, you know, 20% for anywhere between a year to three years with a maximum of 36 months, minimum investment of 50,000. And then again we're not using any kind of debt on this at all. We're just 100 equity investment in these different contracts in this, in this fund. So again like I was mentioning, the affiliate marketing companies go find the customer that's 20,000 plus in debt. They sell that customer to resolution processing for 2000 bucks a pop and they start that invalidation of the legal services and do the quality control all up front for those people. Then the customer enters that legal contract and they go out and they start invalidating 50% to 90% of their debt debt with that average of $8,000 with a $2,000 cost and then we're looking at monthly payments over about 24 to 27 months of 396 to 400amonth with that 80% collection ratio. And they start the legal services to invalidate that debt. Consumer debt is then invalidated and they no longer owe that money. And if you do the Math, on a five million dollar investment with a two thousand dollar cost, that's about 2500 contract portion of that 400 payment goes, portion goes to the legal services and the rest comes to us. But that's $740,000 a month to help pay back the $5 million of investment or pay the 20 interest. And so the more contracts they buy, the more cash flow they get to pay us back at a much safer, safer avenue. But even with $740,000 a month, it's insane. And they're actually going through and creating $20 million worth of receivables for 5 million, that's $16 million collectible. So the investors get all of their, they get all of their interest and everything first. And then the operators on the back end are making, you know, a good chunk of capital on the back, which is their major incentive here for performance on the back end of these to be able to make that profit after investors are paid their return on investment. So really, really big margin here for a potential error. Even if there's a black swan event or something crazy happened, I can't see them being 75 non collectible in these types of accounts. It's pretty, which would break us even. So really good. I, I would say equity protection on the receivable balances versus the amount we're investing. And keep in mind this is that 80, 80% collection ratio, 25% cost to value, but the collectible value is typically around 30% of that cost. So because we're talking about a $6,400 collection on an $8,000 debt in a pooled situation like this, our, our, our cost of collectible value is around 30, while our cost to actual value or the actual receivable is typically 25. So that's primarily it right there. If you guys are interested, you guys can sign the documents, you can ask questions, you can talk to both of us about these different items and you know, get all of your questions answered in depth. We have all the PPMs, we have the contracts in place for the receivable balances and all of that kind of stuff available for you guys along with this slide deck so that you can understand it and kind of go through it again and be able to do this now. It's really interesting from that cash flow standpoint because I haven't seen many of these start from year from month one where you're able to start collecting interest at 20 annualized on month one. So really interesting scenario there to be able to do that. So. And Catherine has all the instructions for you with regard to, you know, how to sign up and things like that across the board. So, so that is it, Catherine. As a I, I wanted to keep it short and sweet because it's actually a lot simpler than it seems. It's just investing in a promissory note secured by pools of these receivables and we do a UCC filing to secure that money by those receivables so that we have a legal right to those receivables as we get the collections. And I've been working with these guys for a while now and again invested first in their opportunity. So I'm super excited to bring it out to, you know, my friends and family and people that I, I'm aware of and my investors and, you know, Catherine as well. So really excited. Yeah.

So one more thing. Just the, the bigger piece that I, that really hooked me was the whole veterans piece in like really focusing in on doing this for veterans, firefighters, police, like people who are serve our communities in big, big ways, but seriously don't get paid nearly enough. So that's a big piece of, you know, why I love all this so much. So I'm going to, if you're interested, what you can do is obviously you can respond to the email that you receive from me. You can also, you can email me or you can text me that you're interested and you know, for sure I'll get back to you. And that's, that's we have for now. So I'm going to go ahead and stop the recording because we have some questions.