A $54 million land contract creates a $30 million gap between the purchase price and seed valuation, giving the buyer 34% instant equity. The speaker uses a Swiss-cheese metaphor to explain how Titan 23, a due-diligence entity, will expose deal weaknesses before closing.
Chapters
going through it, the instant equity part of it is that they have a land contract worth $54 million or $45 million. And so that's why they have a seed value valuation gap of $30 million is because what it does is it gives a 34% instant equity buffer. So Titan 23 is going to analyze all of this and poke holes in it. And that's why I wanted to run it with you guys first was, ain't nothing worse than sitting here showing somebody where their Swiss cheese is. You ever— does anybody like the taste of Swiss cheese? Raise your hand if you like Swiss cheese. Anybody like Swiss cheese? Okay, there we go. Have you ever sniffed it? Have you ever put it up underneath your nose and smelled it? Tastes way better than it smells, right? So what we want to do is we want to make sure that if there's issues, we want to make sure that it's laid out why there's an issue.