Private Equity Lending Tech: Scale to $49M Per Year

Hi, my name is Toby Potter. I'm the CEO and President of Global Integrity. Today I want to talk to you about a disruption in our industry, and the industry I'm talking about is the private equity lending industry. We haven't done anything close to keeping up with technology and being able to give our clients the tools and the resources they need to ensure success and profitability. Over the next 10 to 12 slides, I'm going to show you the technology that I believe, and my team believes, will revolutionize our industry and help our clients have better success, have transparency, accuracy, and speed to market. Sit back and enjoy, and I hope you learn a lot. In fact, I hope you learn enough to give me a call. When I talk about the disruption of the lack of technology, we're going to talk about Olympus. What Global Integrity has developed and built is a universal ecosystem for loan originators, pricing engine, and CRMs. I want to introduce to you today Atlas. Atlas is the engine that runs this ecosystem. Through Atlas, it will be universal pricing with rules engine built into it to enable anybody to be able to price out any scenario, get answers immediately, and be able to go to market in seconds with, again, transparency, accuracy, and results. So the problem that we've discovered, as I've mentioned, is that our industry lacks technology. The private equity industry has not caught up with today's technology. The industry is missing cohesive, fluid, real-time technology that will deliver precision, enables accuracy, transparency, and peep— speed to market for profitability and success of growth through education and consistency. These are the things that we need to develop. We work with brokers and clients every day that are screaming at us for the need of technology. How do we go to market when we don't know or don't have answers? Our fintech companies are struggling to adapt to a finicky, impatient, technology-challenged culture, and the existing technology in our industry is just completely outdated. Because of this, the private equity industry becomes rudderless, becomes chaotic, becomes very disruptive. It's very unplugged and disjointed. Most of our clients feel defeated and exasperated because they can't get answers in a timely manner, and even if they do get answers, they're not a sure solution. They are hypotheticals. They're maybes. They're what-ifs and if-thens. What we need in our industry is true transparency and accuracy. There's really also no central location for all lending options. If you are a broker in our industry today and you have a client who's needing to get pricing on a loan, you may have to go to 4, 5, 6, 8, 10 different lenders go through their portal, put in your borrower's information, and wait for answers. With a centralized location, every client, broker, and/or direct buyer can go to this one spot, plug in the information, and get answers in seconds. Without a centralized portal, the private equity industry, the— and the people are faced with uncertainty, isolation, haphazard inconvenience, and cost-deficient, disconnected, immensely paralyzing resistances. We need to be able to give them one place to go to, to get all the information and all the answers they need. This is why we built Olympus. This is why we have Atlas, Zeus, and Hermes. One spot for everything— a pricing engine, a loan operating system and a CRM all wrapped up into one deal, one spot, one place. So I discussed with you the problem. Now I'm going to talk to you about the solution. The one thing that I truly enjoy and have the most passion for, the solution to the problem. We've told you what the resistance is. We've told you about the problems. Now we're going to talk about the solution. And that solution is what we call Olympus. Inside Olympus are 3 different deals. Atlas, the pricing engine. With that pricing engine, it's universal. It is for every lender, every borrower, every broker. It's not just customized to one bank, but to all banks that are eligible. And through that, you as a customer or your broker who has a multitude of customers can go to Atlas and get their situation, their loan, parameters priced out in seconds. It's about 12 to 13 questions that we ask: loan amount, purchase price, as-is value, ARV, zip code, zip code for zip code density. We talk about the credit score, we talk about the borrower's experience. Well, we ask a series of questions and inside that engine it prices that loan out. It searches through all the algorithms. And comes up with the best answer. And it may be 10 banks, it may be 100 banks, but it looks at everybody's parameters and says, here's your best execution. And you, the client, whether it be a broker and/or borrower, can now make an educated decision. Number 1, is this loan eligible? Number 2, what are my rates? Number 3, how much money am I gonna be into this and what's my level of profitability? Without that, nothing else matters. And the good thing is, is that we ensure transparency and accuracy on Atlas. So when you plug in your information on this, you know, if we get an approval on Atlas, your loan is good to go with that specific lender or a multitude. Maybe you get multiple options. You then be able to choose which ones will be best. Maybe I'll take a higher rate and less down payment. Or take a lower rate, more down payment, whatever works. The economics is there for you, the client, to make an educated decision in seconds. The neat thing is, once you've decided which way you're gonna go and you pick that program, that whole information now rolls right into Zeus, the loan originating software program that then takes all that data and starts generating the loan term sheet, starts generating the borrower's authorization, starts generating the loan application to where you can send it directly to your client. Or if you are the client, you can immediately start filling it out and step by step it walks you through this very simple, very user-friendly system and what we call plug and play. We also call this frictionless, meaning it's not disruptive, it's not irritating, it's not agitating, it's not, oh my gosh, now I'm like, I feel like I'm filling out tax returns. It's frictionless. And once you're done, then it goes right into a processing portal, which then in turn goes into an underwriting portal, which then we go to final decisions, which is funding. And inside all that, if you're a repeat client who is a broker who has repeat clients, you have Hermes. It's built in this CRM that all you got to do is say, hey, John, who did a loan with us last month, I got to go click on John's link and all his information pops up immediately. And therefore you now— all you got to do is put in the new property. It's so simple and it is so frictionless that we then call it sticky, meaning it will make a difference in the industry. And it allows the clients to be able to use this over and over and over and over again, unlimited, to be sure they have the right information to make the right decision to move forward and ensure profitability. This is what Olympus is all about. This is the technology that is missing in today's industry. This is what we are bringing to the market. So I want to talk to you a little bit more about why Global Integrity. One of the things we recognize and we've shared today is that technology today is one-sided. We, Global Integrity, make it universal. As the market continues to grow, so does the demand for technology. The key to longevity is being a specialist, to specialize in a demand, specialize in a need. We deliver results that gives the customers leverage. Being able to know immediately whether you have an approval and what that approval consists of is invaluable. And having this centralized, being able to do it on your phone, on your computer, and having all the resources all wrapped up into one nice neat ecosystem is what is needed. And it brings speed, accuracy, and transparency to market. This is what Global Integrity does. We bring all this under one umbrella and give Everybody, universal results. So now that you fully understand what we're talking about here about technology in our industry, probably your next question is, show me the money, Jerry Maguire. Well, here we go. Let's talk about the economics. First and foremost, I'm going to talk to you specifically about the market, the demographics of our market. Right now there's a little over 23,000 professional licensed mortgage brokers nationwide, and underneath that there's over 688,000 licensed loan officers. So if we really just peel that back a little bit, now that you understand that's nationwide, that's everybody that's through NMLS licensing that really focuses on the Fannie/Freddie side of life. The primary residence side. But the American Association of Private Lenders estimated that hard money lenders out there, there's about 8,300 of those. So let's just talk about that small sector of 8,300 private equity lenders. And if we're able to roll that out to a small percentage, let's just say 5% of them, If you take 5% of that 8,300, that comes to 415 mortgage lenders in the private equity side. And through that, let me talk to you about the economics. Just enrolling them, uh, set— and for the setup fees on those 415 mortgage lenders, we're looking at $1,037,500 just in setup fees. And then we do a monthly subscription for them because each and every one of them want to update leverages, rates, terms, so on and so forth. So they have a monthly subscription. So if we have 415 of those continue month in, month out, that's $83,000 a month. Multiply that times 12, add that to the $1,037,000, you have one year, first year earnings of $2,033,500. It's in your first year, only capturing 5% of a small sector. If we, if we, if we just captured 5% a year and we were able to grow this to subscription of roughly 2,000, 2,100, you're looking at $49 million a year. That's 2,000 subscriptions, 2,000 enrollments of 23,000 lenders. And it doesn't even come into play about all the individual loan officers/brokers. It doesn't come into play all the realtors. We're talking a small percentage that equates to $49 million per year. Is there demand? Absolutely. Is there a need? Without a doubt. Is there profitability? Yes, there is. And I think I've shown you on a very conservative scale how this is a game changer for everybody.