Deals & Dollars: Real Estate Investors and Entrepreneurs
Welcome to the Deals & Dollars Podcast, hosted by David Choi, Eric Panecki, and John Libretti, three real estate executives from the New York City metro area. Every week, they bring on the best real estate investors and entrepreneurs they know to learn about how they got started, how they source their deals, and -- most importantly-- how they make their dollars.
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Deals & Dollars: Real Estate Investors and Entrepreneurs
How to Make x2 On Your Money in 5 Years w/ Steven Lewis Capital
On today's show we have two of the Managing Partners of Steven Lewis Capital: Stephen Pasciuto and Nolan Borgersen.
Today we're excited to have the return of our friend Nolan Borgersen, but this time he's bringing the CEO of Steven Lewis Capital, Stephen Pasciuto, to do a deep dive on the ins and outs of medical lien funding and alternative investments. In this episode, we hear how Stephen's cutting-edge strategies and a $10 million nod from private equity firms are reshaping the path to financial empowerment for everyday folks.
In the tug of war for prompt payments, medical businesses often find themselves at the losing end, and Stephen's insights shed light on this struggle. Our exploration reveals how Steven Lewis Capital's innovative approach is not only a lifeline for healthcare providers but an intriguing investment prospect, challenging the status quo of financial institutions and providing a beacon of hope for those caught in the legal crossfire.
This episode isn't just about the mechanics of investment; it's about the people behind the numbers. We take a closer look at the alternative assets landscape and how it offers a lifeline for the middle class, increasingly sidelined by traditional investment avenues. Stephen's journey through layoffs to leadership embodies the resilience required to navigate today's economic currents. By harnessing an innovative underwriting algorithm, Stephen is charting a new course for investors, offering stability in the face of market fluctuations and a refreshing alternative for those ready to think outside the Wall Street box.
Join the Deals & Dollars community today. If you're interested in becoming a guest on the show or receiving exclusive invites to our networking events, sign up on our official website.
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It's a breath of fresh air to hear you guys come and say I don't even want the trust fund money, I don't want ultra-high wealth, ultra-wealthy money. I want to help the blue collar, the middle class, because the way that the world is going right now, it's the death of the middle class is coming and you better believe it. No doubt. Three, two, one go. Wonderful to have you here, stephen, you're like. First time I met you I was like this guy. This guy isn't a real human being.
Speaker 2:He's got.
Speaker 1:He just brings so much love. He's so genuine in everything he does and just I very rarely ever meet someone who has more energy than me. That is that you have an absolute gift. It must be a pleasure and a pain to work with you on a day to day basis, but no it's what the CEO needs to do.
Speaker 1:They need to bring that energy every day. So awesome to have you here today. I'm going to give a quick background and maybe you guys fill in the gaps of what I'm missing. But super successful business that you guys have run on the real estate secondary side, helping banks, credit unions like local, like mostly local banks, maybe even hard money lenders, dsr lenders.
Speaker 1:You guys take their loans billion dollar packages and you help sell them for the banks the secondary market to insurance companies, some of the largest institutions in the world, head funds, family offices, other banks, so that business you guys are doing incredibly well, all for a couple of years now, and then I believe, steve, you were on the advisory role of a company that basically bought medical scans. Might begin just a little messed up, but you're buying medical scans. Helping people that run medical scan companies offload their accounts receivables Because they're basically they're doing scans and they can't collect on that income because it's tied up in court because there's some sort of injury involved, and so a lot of these medical scan companies have huge account receivables and they can barely make payroll. They have to wait years and year and a half to get their payday and by the time they get their payday they're like crap. I haven't been able to buy any Christmas gifts for my children or give out bonuses to my employees or staff up. So there's a huge account receivables issue in the marketplace.
Speaker 1:The beautiful thing about this asset class is that you guys have a phenomenal way to algorithms to gauge whether or not those medical scans are going to get paid out, and so you guys are acquiring these helping medical scanning companies at scale, acquiring them, putting them on your balance sheet at a massive discount to the payout value and creating massive returns for your investors. Super safe but also incredibly profitable, which is really why, with the track record that you guys have developed you on the advisory role of that company and really being able to buy that company out when the founders needed to sell, you're able to pitch this to some of the largest institutional private equity firms in the world and raise $10 million. Usually you have to go the other way around You've got to raise family and friends money and then you go institutional, but you guys were able to take this business model, the existing track record, take it to some serious institutional players that do an incredible amount of due diligence before laying out a dollar.
Speaker 1:You guys did all the hard work and now you guys are ready to launch and help your family and friends, the common folk, the middle class, really build some sort of life that we all dreamed of growing up. Right, yeah, Does that summarize?
Speaker 2:Yeah, that was very impressive considering my six months since I've been here. So yeah, that's exactly it.
Speaker 3:With him saying all that it makes me think, wow, dude, we really did a lot. Yeah, we did. Wow, we did.
Speaker 1:It's hard to raise institutions money man.
Speaker 2:Well, if we didn't have the track record from him, no shot right. So if we came to one of those hedge funds or capital providers with just the idea, that's when you need to raise family and friends first to get the track record. Because we had it, we were able to do it and now, like you said, we're scaling in. Usually the three main reasons we're funding receivables One we have a new client that is a surgical center. They do pain management stuff not just MRIs but pain management surgeries, whatever and they're looking to buy two more and open two more facilities. So they need the leverage, so they need the capital to buy new, open up new centers. That's one reason. The other one is straight cash flow, like you said. Or the third would be like there's a brain scan company that is only doing LOP business or a personal injury business, so they don't have any cash flow outside of this. So they're just starting but they need to sell everything off the bat in order to continue business. Exactly.
Speaker 1:Like a decent cash flow.
Speaker 2:If the sale cycle is 18 months for them, they can't do business without funding.
Speaker 1:What a horrible business, by the way, the medical scan business. It's really hard for a business to spend money and wait 18 months to get paid. Sure.
Speaker 3:Yeah, sometimes longer, right, there was a case that we did Like. A 64-year-old woman was in traffic court. Her kid was like I don't know, fighting a traffic ticket or whatever it was. She's sitting in the pew of court, a light fixture, missable court building, came down, cracked her head, opened up her skull, all this stuff. It took like five years to settle that money. I mean, there was plenty of witnesses, everybody was on the woman's side, right, but still took five years to settle that money. So all the doctors that helped that woman, from the second the ambulance got there to the second she's full recovery, right, what are they doing? It's not like malpractice insurance is like, ah Well, we'll wait for that 85-year-old woman to collect, right, or the medical scan companies, right, the MRI, the X-ray, et cetera the ambulance company.
Speaker 3:Right, they're like dude.
Speaker 2:I got to make a payment on this yeah.
Speaker 3:I have to pay my employee to do that, et cetera, et cetera. So there's overhead. Now a doctor that accepts someone that's involved in a personal injury lawsuit is pretty much doing it on good graces of maybe the personal injury attorney or just on life to say, hey, you know what, if I help fix them, maybe this case will settle and maybe I'll get paid, but if not, I save the life. Wow, so poor thing. Unfortunately, the business world doesn't say oh, you saved a life. Here's a high five.
Speaker 2:You know what, just stay open.
Speaker 3:Matter of fact, we'll pay you two million to stay open. So, unfortunately, since these receivables are tied to a lawsuit and there's that probability or that chance of no settlement right, banks will not put their insured dollars on these assets, so it's not your typical asset-based lending. So now, where do these poor guys gotta go? They go to Wall Street, right. So the first time I heard about it, Wall Street was buying these things at, like you know, 10 to 15 cents in a dollar and saying you're out, straight up, you're out. Whatever I collect, I collect. Buddy, you don't worry about what I collect. Now wait a minute.
Speaker 3:Did Wall Street go to dinner with that personal injury attorney? Did Wall Street, you know, go to med school? Did Wall Street put the shingle on the door? Did it do all the marketing? Right, how did that medical provider get that person in the door?
Speaker 3:Wall Street's like I don't care, it's mine. So when we first heard this, we said there's gotta be a better way, right? So we started looking into the assets, and the reason why we like diagnostic imaging is because everybody needs it to determine what's up with you, right? No one's just gonna say, oh, I think your femur's broken, right, they're gonna go in and see what's up. Right, so they're the first ones in. Also, the bills are not catastrophic, right? So it's not like you're getting a lumbar fusion or something like that, right, or all the crazy surgeries out there, right? It's not like that bill is gonna be $200,000, $300,000, and then the court's gonna turn around, or the attorney.
Speaker 3:Right, did the defendant turn around and say, yeah, you know what? God bless you when you're $400,000. Listen, I'm giving you like 50 grand, right? Right, you getting enough? Okay, so there's a significant disconnect there. Right, for what the doctor's billing for, for surgery, and exactly what you know the defense is trying to pay him. They're trying to keep that fee as low as possible so that their plaintiff gets paid and they especially have enough money for their 30% where they're collecting right.
Speaker 3:So the diagnostic imaging guy that goes in first okay. He has a chance to either not get paid at all, right, or he has to wait the longest because he's in first. Okay, if you're doing 200, 300 scans a month from you know, let's say you have 10 personal injury attorneys, they send you 10 buddies. Or you know, if you have 30, they send you three each, right? I mean, some of the guys have been in the business for 50 years. It's been passed on to their kids, so what are they gonna do? Let's just say this this 85-year-old woman comes to your clinic. She doesn't have insurance and you know that it's an accident, that you have to wait for it. What are you gonna say to her face?
Speaker 1:You're helping this woman out, dude. Of course you're helping her out. You're a sicko if you turn it away. Exactly right.
Speaker 3:And because of the business and the industry right, and how banks will lend on it. Some folks, like you just said, are not accepting this personal injury business. They're not. They're only doing elective surgeries, right, which is, like you know, nolan and all his athletic friends, stuff like that right, yeah, they walk into the train. I'll do it. You need a rotator cuff. You gotta go see my buddy, yeah, go to Troy, he'll cut you up get it done, no problem.
Speaker 3:Right, that's all they want. Who's hurt more? You know what I mean. Yeah, right, there was another case where, like a 11 year old kid was dragged like six blocks by a city bus. Ah Right, yeah, insane. And if hospitals said that, oh, we can't accept you because it's tied to a lawsuit, that's messed up man.
Speaker 1:A hospital said that no. No, I'm saying if a hospital said that.
Speaker 3:But think about it. That's how the banks are squeezing them. And then the opposite side of it, that's how Capital markets groups are being, you know, cannibals about the issue, right. So we said you know what, screw, okay. So now you know the heartstrings and all the stuff that we're reading and all the crazy things we say look you, medical provider, how much is your bill? Okay, it's two thousand bucks I'm gonna give you. If Wall Street gives you ten cents upfront and they want to walk away, I'll give you twenty cents up front, right. And then, whenever it settles, we'll get our principal plus a small interest, yep, and then anything over that, right, depending on that. You know, because you have to do time, value, money, duration, depending on when it settles, yeah. And because we don't have a conservative asset, we have to go to private equity groups, right?
Speaker 3:private equity groups have investors, have to answer to you know, those guys are gonna be like listen, if I want to get five percent of my money right, I.
Speaker 3:Right now we're taking a risk, so therefore they want Extra interest. So then we have to manage that. The bottom line is that we're 15% from Whenever the contract goes out, right? So that's our minimum. So it doesn't matter if it takes us four years to get to that 15%. It is what it is. It's like, for every 100 cents I give you, we want 115 cents back flat, not per annum. Right, we're not compound. There's a lot of people out there that compound the interest.
Speaker 3:Yeah and all this stuff and squeeze these medical providers to know it. So that's very, very attractive in this market.
Speaker 1:Wow, you guys must be getting a ton of clients.
Speaker 2:Yeah, so to that point, anything over the 15 right that we take we split with the Medical 50, depending on the year it settles, because every after weight, yeah, right. So it's 50, 50, 60, 40, 70, 30 as the years go on. One year, one, two, three, right, but so Steve's more of the you know portfolio manager on more on the the sales side, bringing you new medical providers. Every time I have Explained our financing structure They've always said this is the best we've seen.
Speaker 2:Oh, that's the most and that's like I think I've met. You know I've we brought on five or six new medical providers and I've met with five or six new medical providers. Like we're no one's like went with another funder because there's no better structure out there. And we're doing that because we saw what Wall Street did and we saw that it's 10 to 15 dollars and most medical providers, when they hear of funding companies, did like no, like they it. There's bad rep on the street because they're sharks, they're absolute sharks to 10 to 15 cents and you're out no back end splits. And then they're also hounding, like the attorneys, like when is this case gonna settle? When is this?
Speaker 2:point yeah they're hounding and we have completely, kind of done the opposite of that, right like so we're hiring a third-party service or, to you know, just take check status every like six months. We're not gonna hound them, we'll put it in the medical providers hands to kind of give us updates. We're very hands-off in that sense. All we want is to you know, we have to hit our internal hurdle and then we're gonna split. You know, whatever is over that with with you, and that structure has made us, you know, very attractive in the space when it comes to medical matters.
Speaker 1:How big do you think this space is in terms of market cap? It's huge like how much? How much paper could you, how many medical scans can you buy?
Speaker 2:so the Well, it's well, it's complicated because they're like medical scans, right, there's MRIs, there's there's pain injections, there's chiropractic work, there's surgeries. There's so many different actual services tied to Personal injury lawsuit. So we like the MRIs the best because of what Steve said, like a $200,000 surgery, it's gonna probably take longer to settle and also be negotiated harder by all parties involved because it's a big bill, yeah, but when the when on the lean it's, it's a $500 or $2,000, you know MRI that's there's like sure, first lean position above, like the surgery, because you're the first one in all.
Speaker 1:Medical providers are treated equal.
Speaker 3:Okay, got you. So you know the the personal injury attorney would just have a list and that's it.
Speaker 1:I just want to run some. I'm so Asian I got to ask like the Like how your inputs to your performer right.
Speaker 2:That's why I brought him.
Speaker 1:Like, if you buy a hundred and I might be asking the questions wrong, but let's just assume you buy a hundred scans what MRI scans in that exact niche? Right, the first one. I might be saying this wrong, but MRI scans for that old lady in that, that kid that got tracked for right. You buy a hundred of them. What is the average duration of of the settlement? About two and a half years, two and a half years, two and a half years. What's the percentage that they will successfully?
Speaker 3:settle About four. So we see a settlement between the lowest is like 48 cents, the highest is 54 cents 54 cents.
Speaker 1:Well, that's a settlement.
Speaker 2:What about the percentage? Of the actual set our loss rates? What?
Speaker 3:our loss rate is less than five, less than five percent, less than 1% Right now.
Speaker 1:So wow so let's just say conservative. 95% of the scans that you acquire Yep, they settle at between 48 and 54 cents. That's right right, so we're talking about 95 on 100 she's 50 cents, 50 cents.
Speaker 1:Yeah, 50. So you're basically getting paid 50 cents on a dollar and two and a half year duration, right? So if you buy it at 20 cents on the dollar, you're making a two and a half multiple on your money in two and a half years. That's right. So you're doubling your money every year. That's right, right on the gross level. But you got, you're also crewing, you're getting interest on it on your annual level. So you're getting 1515 and then you're doing 5050 splits.
Speaker 1:So we're talking about like or 6040 or 75 155, she making like a one, one, seven multiple in two and a half years net to the fund.
Speaker 3:Give or take, but two x two extra turn, so like if our gross is typically two and a half x right on, any settlement Will net almost a one, four, five or so four five. The reason why is because the medical provider we always make sure that they're taken care of on the back end.
Speaker 1:No.
Speaker 3:It's not fair for us to own that asset and walk away. I mean, right, then, who knows how many gifts that medical provider had to buy, that paralegal or whatever, whatever you had to do, right, how many dinners how many times got yelled at by his wife for not showing up on time because he's trying to build business? Right, right, how many times he told his kid I'll be right there, he's late? I mean, all that adds up, right, you don't think about that, but hustlers do. Yeah, right, like I mentioned what's going on with our dads? Because, or how I grew up, because everything I had it, everything I got had a claw for Right. So I know what it's like when you clawing and building and building and then someone just takes it from you. Yeah, right, and that is not okay.
Speaker 3:So when you look at the medical provider, we try to help them. When you look at the personal injury attorney, we try to help them. Because we typical Wall Street, right, if I pay you ten cents for that asset, like Nolan said he touched on before, it's now my asset, I Want, I do, I want a hundred cents. I'm on 112 cents. If I'm gonna get it out of the attorney, yeah, right, so they're. They're steamrolling this poor attorney, right, you know you don't. The last thing that poor guy needs is, like you know, morgan Stanley, goldman Sachs, etc. Right knocking on his door, right and beat him up over bill. Where's paralegal, right you know who? People that do have the muscle to hire their own attorney and go and collect.
Speaker 2:He's not in it for this the guy's got it.
Speaker 3:You know a personal injury practice, I mean there's a, there's a ton of them out there.
Speaker 2:Think about his competition, right yeah, how does he get?
Speaker 3:up. How does he get those people to call him word of mouth billboards? Is that right? So he's working his tail off all of that together just so because Wall Street had the money.
Speaker 2:They just come in and say take it or leave it and they're also targeting a lot of medical providers that need to sell right need. And now, once, once they get, you know, steamrolled by these guys, they're not gonna go back to them like they, they're just in a bad situation.
Speaker 1:Right, but exactly right.
Speaker 2:But you know the, the folks that are looking to buy, open up two new centers and maybe it's not for cash flow, but they just need leverage. They're gonna look for the best they're really, you're really guys out yeah. Yeah. So when they come to us they're like we like your structure, we need the money and open new centers. We're going with you. Wow, you know and we're still able to. We're still able to, you know, make our investors a shit ten of money.
Speaker 1:What does it look like for your investor? So say I come in, I got a hundred grand sitting. Say I would like to come into your fund. So what I mean if when, when, when I need a bigger year. This job.
Speaker 3:So essentially, this is what happens, right.
Speaker 3:We said, we were just talking about this in the car and we definitely have flexibility associated with them with how the Investor can choose which vehicle they want, so in other words, it's gonna be an open-ended fund, right, and since, since we're mostly gonna be dealing with friends and family, right, people to get a nod from a close friend of ours.
Speaker 3:You know, we don't really have an interest in making someone that has Apartment, you know that's a trust fund baby, or someone that has, you know, a high net worth individual. I'm not interested in taking their money and giving them more money. I want the guys that are hustlers like yourself, like us, that are always out there and saying you know what, dude, there's got to be a better way to get my money to work for me. Yeah, right. So what we're gonna do is we're gonna open up an SPV, right, where 10,000 bucks is the minimum, right. So anybody that you know that is a friend, or Especially anybody that's tied to the show, right, we're gonna set up an email for the show where, if you'll have the deck right, you'll have an investment deck in our LOI and then you could send it to whichever one of just message yeah, leverage companiescom.
Speaker 1:Yeah, okay, my system will send you a deck and we'll hop on a. That's it right?
Speaker 3:so any of your audience members that you know want to learn more about Steven Lewis capital. They'll be considered a friend, but that's where it kind of stops, right? Wow, I'm not. I have honesty, man. I mean, you're telling me we've been in investment banking and I've been in hedge funds for over 20 years. I don't really have any interest in getting another, giving another managing director $25 million bonus, when me and Nolan and yourself I mean this guy's an Ivy League graduate, for God's sakes, right.
Speaker 2:Oh, not quite, but.
Speaker 1:Right, very good school right, yeah yeah.
Speaker 3:Boston got, yeah right. I went to Quinnipiac buddy.
Speaker 2:So that's cool, I just a good school now.
Speaker 3:So anyway, the the the bottom line is like right, blue collar guys scratching chlorine, or the kids of those blue collar guys, right huh, that'll like trying to get out from underneath them and make the family expand. Right, don't be afraid. Right, I keep going back to my own man. You know he's very conservative. Like, his goal was being conservative and safe. My kids are safe, they're warm, they're healthy.
Speaker 2:That's it. We're not gonna be.
Speaker 3:There's no investing. You talked to my dad about an investment. He thinks you're stealing money from him right now. Okay, so, right, the hardest person to sell in the room is my father, and eventually I got him to agree. He's gonna put 50 grand with us. Wow, only took him you know, I don't know 42 years old. So you know the. The whole premise, right, is that's the audience. Those are the folks that we want to reach out to. And also, what is look for the investor? Well, you know, hopefully a guy doesn't need 10 grand to get back to him in the next month or two. Right, we're looking to have several different lockouts or lockup periods Three, five and seven years. Okay, the longer the money is invested, the more time that's gonna turn over, yep, the more you're gonna crush it. In two and a half years, our portfolio turned five and a half million to eight, point eight.
Speaker 2:Wow right.
Speaker 3:So, wow, right, two and a half years. So if you can think about that.
Speaker 2:And then the eight million rolls over and rolls over right because, like, if you think about it, what the hell five and that five million turns you eight and a half, eight, point six, okay, three and a half over two point five.
Speaker 2:Whoa dude? Yeah, I. Because well, if you think about it like you know how we said, the average is two and a half years. That's for like a you know an entire. You give a hundred thousand and buys whatever amount of scans, right, some of those scans are gonna settle within six months, Some are gonna settle within a year, some will settle within 18 months, etc. By the two and a half years almost the entire thing has settled right. But the beauty of being in it for the long term is, let's say, in the first six months, you know, 30 or 40 grand settles. We take that money and buy more scans and it can just roll compound interest, yeah, that's right, yeah, so even at the end of your first lockout you have so much left over.
Speaker 3:Take, take the principle you want at home. Yeah, if it matters that much profit more scans Take it home and then play with the play with house money. We don't know how. We all know how it is to play with house money. Yeah, you've ever been up at a blackjack table. You know what I'm saying.
Speaker 2:Yeah, you put your principal on the side and there's another.
Speaker 3:Lunch, dinner.
Speaker 2:Money for next putting your froca. You do it right.
Speaker 1:So the guy comes, I come in with 10 grand. I say you know what? I want a three-year lock. What kind of returns Can I expect In that three-year period?
Speaker 3:so the the hurdle that we're gonna be setting up is it's 15%, right? So it's 15% a year, and then after that the split is what's 60 40 60 40 because that's right with us. We really want to incentivize people to lock the money in for longer. Yeah, right, so you know, our the shortest launch, which is three years, is 60 40. That split with us In your favor, though in my favor. Okay, mm-hmm. Um seven year 70 30, right now it's in five years, 70, 30.
Speaker 3:Yeah, okay, sir five years 70, 30 and the sevens 80.
Speaker 1:Wow, yep so. So we're talking about if we, if we break that down net returns to investors. You're looking, we're looking in the 20s, low 20s, pretty conservatively.
Speaker 3:Yeah.
Speaker 1:The three year, yeah, yeah, when you go to the five year, you're looking mid 20s, and then seven year you're probably looking at like the 30s.
Speaker 3:Yeah, yeah. So as as a as a beta test, right, we put some of our money to work, we bought some of the assets, right. I mean it's even lowest and there was a small pool like 27,000 dollars that went out the door. That money just came back at 42, 40, no, 48,000 and 270 days.
Speaker 2:Right. So that's an example of a batch paying off quick. Sometimes that happens right Right, and we're conservative with the Duration, just so people you know can manage expectations.
Speaker 3:But I will give anybody in this world 27,000 if in 10 months they give me back. Absolutely right.
Speaker 1:Yeah.
Speaker 3:I mean that was you know it's.
Speaker 1:It's amazing what you guys are doing, because I I started rate. I bought a hundred units with my own money over the last like five years and then About two years ago I said you know what I'll start, I'll start raising some money from friends and family and Like I probably raised from, let's just say, 15 people, friends and family and I I Did phenomenal by by all of them. Honestly, they all trust me now that most of them are really grateful, but they're at the average clip is like 50 to 100 grand, like some of them would come back for 150, but they're not, they're not gonna make, they're not really making me rich. You know, I, you could, you could add up all my friends and family multiplied by five, and that's one institutional check. That that's pretty much almost the same level of work now as as as the ordinary guy, and so well, that's also what real estate commands for right?
Speaker 3:are you know your asset right? It's, let's call it, half a million dollars. So how many guys you have to get you know and you're like, listen, I need at least a hundred grand for me. Yeah right, our asset is 2000, yeah, and we buy 500 to a thousand scans at once.
Speaker 2:So I mean and we're only advancing if it's $2,000 bill.
Speaker 1:We're only putting out 500 bucks right on that at this point in my career, like I met a guy at church, right, he goes. So I'm thinking I got like 50,000 hundred grand to invest and I'm like, does, yeah, I'll keep you in mind for for, like you know, maybe something that comes up this year. Because now I'm like, dude, if you're not coming in with at least two, fifty five hundred, I like it's, it's becomes, and it makes me feel sad because I did get into the game to help the middle class, to help ordinary people build their wealth and their portfolio and and I know I could help them do that. But it's a breath of fresh air to say, like to hear you guys come and say I don't even want the trust fund money, I don't want ultra-high wealth, ultra-wealthy money. I want to help the blue collar, the middle class, because the way that the world is going right now, it's the death. The death of the middle class is coming and you better believe it was no done.
Speaker 2:And I mean in my old, my old, even my old gig with asset management. It's like minimum 250 a clip. So it's like, what can I do for my buddies who are, you know, don't you know? It's like, and I mean for the bigger investors, some something to be, you know, if they're no good people?
Speaker 2:This is a completely non-correlated asset. So one of the reasons why we started it was one, as you said, you know, in the secondary market, loan trading, when credit crunch happens. You know this is such a good hedge for real estate, it's such a good hedge for the actual equities, such a good head for bonds. It's such a good hedge for anything that's market variable because at the end of the day, they are going to be car accidents, there's going to be lawsuits and there's going to be medical-lean financing like it's. It's a. It is a completely non-correlated asset which, at the returns and the safety of it, there's not, you know, many vehicles like it. So for the people who you know are looking for a risk, not a market, you know out, something outside of the market variables, this is such an unbelievable opportunity.
Speaker 1:You got 10 grand from me. I got 10 grand. Am I sitting in my Roth IRA?
Speaker 3:I'm coming in.
Speaker 2:I'm coming in for 10 you don't want to wait 15.
Speaker 1:I'll come in for the five you know, that's the other point.
Speaker 3:59 and a half, right? You know, everybody's always talks about the American dream, getting rich and all this other stuff, right? Oh, for a young kid, when does that start? When you're 25 or 26,. Unless you have real brass knuckles and you're ready to go out there and fight the fight, how are you getting ahead? You know?
Speaker 2:what I mean.
Speaker 3:It's tough. Tell me a few kids that graduated straight from Yale, harvard or any of the Ivy League schools right, that had parents or they had the roommates that got them into a great job or a career path right.
Speaker 3:But what about the kids that are Harvard and Yale, that are overlooked, right? What about those kids that are still applying to Goldman Sachs or still doing whatever they can, right? They're really in the spirit of academia and all that other stuff, right that? Now, what are they doing? Some of them, I know, are trading sneakers right, they're doing anything they can to get their hand on an asset and trading stuff like that.
Speaker 3:My overall, my point is right is that if you went to Ivy League, the chances of you putting on a two belt to save your life is just not gonna happen, right? I mean, thank God for my old man and my family. Whenever I was laid off from Wall Street, I put on a two belt. That's what I did, right? I was laid off four times in two years of Wall Street. All big investment banks, jpmorgan, all whatever.
Speaker 3:Here's the point that I'm getting at, right, is that everybody talks about start saving when you're young, start putting money away, start doing this, start doing that. But in what? In what? You're gonna put money into 401K. You can't touch it to your older, and I all right, you just can't touch it to your older. You're gonna buy your own stocks. What stocks are you gonna buy? What bonds are you gonna buy If you wanna leave it to the professionals? I mean, this is what I've built portfolios for 20 years of my life. Right, we built this algorithm when everybody said it was impossible. I did it in 90 days, right, and this thing can underwrite, read, score and price $20 million worth of MRIs in a day. Wow, so that's insane.
Speaker 2:And that's the reason our loss rate is so low is because we throw. You know they get a data dump. We'll throw it into it and it'll score every single one what the advance rate should be, the probability of it losing, the probability of it settling when it's gonna settle, and that's the decision engine that we've been able to underwrite everything with.
Speaker 3:I mean, this thing knows, like, if you're a 32 year old male, right, if you're a 32 year old male and, like you know the Midwest, and you get into an accident, what's your payout gonna be? Well, I'm gonna tell you it's gonna be 100 grand in six months. Get the hell outta here. That's where it'll go.
Speaker 2:It's insane.
Speaker 3:It knows like it'll tell you exactly what the payout's gonna be, and probably know that stuff.
Speaker 1:Gentlemen, I think it's really amazing what you guys are doing for the middle class, giving them an opportunity to invest in, really an opportunity that only Wall Street and super high net worth individuals really have access to, especially to come in at such a low clip $10,000. Like. I wouldn't entertain anything under 25, even if you were my like my blood right. So it really is a unique opportunity for those that wanna start putting their money where their mouth's at. It's, because scaring money don't make no money, right, and this is a great entry for people that wanna start investing in alternative assets, one without correlation to the stock market or the economy, One that truly has phenomenal risk adjusted return. So really, really unique business model.
Speaker 1:I think you guys are doing good things for the people that actually need the help, right, the medical companies that need the help, and you're also serving investors that need the help, and so really, really awesome to see my boys really doing something for the world. I love it. Man. If you guys wanna, the guests to the guests, if you guys wanna find out more about how to get in touch with these two guys, Nolan, Steven, just message me. Just send me an email. Steven Lewis, with subject to myself, David at Leverage Companies and my assistant, Gia G-I-A at LeverageCompdiescom, and I'll make the introduction and hopefully you guys can start placing your money where you're gonna make some great returns.
Speaker 3:Awesome guys. Thank you so much. Thank you. Thank you, them and them, to those of you that need some service in the community. If you haven't done that yet, please wait, we're going to put it down to you. Creatives support Coach Lauraùn, team Hel, colombian Department mediating a交 coup to help investors get done at this time.
