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.
If you're interested in being on the show or want to receive exclusive invites to our networking events, you can reach out at (http://www.dealsndollars.com)
Deals & Dollars: Real Estate Investors and Entrepreneurs
How to Acquire $250,000 at 0% Interest to Grow Your Business w/ Evan Rugen
Get Access to $50k - $250k in Low Interest Business Funding: (https://bit.ly/lvldeals)
---
Today we have a very special episode. On today's podcast we have the owner of LVL Group, Real Estate Investor Evan Rugen.
Today we welcome our friend Evan Rugen onto the cast, a real estate developer with a knack for turning credit into capital. The King of Real Estate Tiktok, Evan tells us the science of the credit score comeback and the strategic use of 0% interest periods. Evan's journey is a goldmine for entrepreneurs seeking to harness cheap capital for business growth. We navigate the nuances of real estate wholesaling, credit repair, and marketing with a candidness that's as refreshing as it is rare. This episode isn't just another business talk; it's a masterclass in tenacity and strategy.
We dissect the DNA of effective marketing and branding, distinguishing the art of lead generation from the science of conversion. It's a conversation peppered with personal anecdotes and practical advice, talking about social media strategy (from Instagram to Hinge), and how the Deals and Dollars VIP community is the best place in the world for making strategic business connections.
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.
Official Website
Instagram
Youtube
Every single bank is absolutely the same. That means they're in perfect competition. They need a way for you to walk into the banks. There's something called the promotional period, where they'll give you 0% interest anywhere from six to 18 months and more real estate. Guys, sometimes we only need the money for 12, you know, six months before you refinance, so you can get you know. For example, $150,000 from Chase, $100,000 from Keybank and $100,000 from M&T Bank. They don't know about each other. You just got $300,000, unsecured at 0% interest for any business venture you'd like. Three, two, one go.
Speaker 2:All right. Today we have a very special guest, evan Rugen. This guy has single-handedly got us probably the cheapest capital we ever got in our lives this room. I think about $300,000, and probably another $250,000 on the way. Evan, it's an honor and pleasure to have you on the show. Why don't you just tell us a little bit about who you are in your business?
Speaker 1:Yeah, 100% man, david. Thank you for having me. John Labretti, real-life action figure.
Speaker 1:Eric Pinecki, great to meet all the boys finally in the flesh. Yeah, so you know, very similar to everyone here, I'm about transactions, getting things done. I'm a real estate developer. I own between 12, I think about 12 million of single-family, multi-family homes in the Hudson Valley and, of course, in that game, real estate is very capital intensive. You want access to the cheapest capital possible, right? And I had a scenario where I was expanding my portfolio.
Speaker 1:I bought a car, paid it three years in advance I live in New York City, okay and one day my credit dropped 100 points. I had a collection of $250, go to because I didn't pay my car insurance I didn't even know about, went to the wrong address, and I have to refinance all these properties and have a 650 FICO. It was before I met John Labretti, the best commercial lender in the game, so he probably could have helped me. But I'm like, okay, I gotta figure this out. I had a 650, I'm this big guy on Instagram and around town with a very low FICO. It's embarrassing, it's debilitating. And I think one night it was a late Sunday evening I'm like I have to refinance $6 million for the properties. I can't do it right now with my FICO, so I think I messaged 10 guys just typed in hashtag credit message 10 guys. The first one who answered me I never bought a course before I throw $2,000 down. I speak to some random dude in Long Island, bought his course and I learned about credit and I got that collection off my report. That rose my credit 100 points, got my inquiries off my credit and, before I knew it, my credit's fine. My credit was terrible, it was heinous, and so I removed the inquiries, moved the credit, removed the collection and I'm like, wow, this stuff is very, very powerful. What else can I do with this? And so I was taking out bridge loans 12, 13, 14% and I'm like there's gotta be a better way to do this.
Speaker 1:And I realized that banks every single bank is absolutely the same, other than the lollipop that you get when you walk in. Everything is absolutely the same. That means they're in perfect competition. They need a way for you to walk into the bank, so there's something called the promotional period where they'll give you 0% interest anywhere from six to 18 months and more real estate. Guys, sometimes we only need the money for 12, six months before you refinance. So you can get, for example, $150,000 from Chase, $100,000 from Keybank and $100,000 from M&T Bank. They don't know about each other. You just got $300,000, unsecured, at 0% interest, for any business venture you'd like Like, wow, this is really, really powerful stuff and I use it for my own portfolio.
Speaker 1:Now, the way I use it, I got the cash renovated, a property refinanced, paid all the money back, borrowed $300,000 for free, and then I'm like I gotta do this. So I built a following around it and now I help entrepreneurs Anyone with a 720 credit or above and an LLC. If you don't have an LLC, we can help you buy one. We're getting people very, very easily $100,000 on just a 720 credit that they're applying towards their real estate fund. Really anything e-commerce, trucking, really any capital intensive business or business idea you have, I can get you funded.
Speaker 2:Really cool man. I'm gonna pretend like I don't know anything. There was a lot of information.
Speaker 2:I'm gonna pretend like I never borrowed money. Sure, because, for I mean just because we've went through the rigmarole of doing it like you answered a lot of questions, but along the journey of even trusting you to get us money, it took a lot of questions. So I'm gonna pretend like I don't know you from a hole in the wall. Evan, 100%, all right. Well, really cool story. First off, you are like, what really amazed me is that, like you did what we did, like you built up a real estate portfolio, you were flipping contracts, you were fixing, flipping properties what a hard and miserable business, huh.
Speaker 1:Yeah, I don't know how you guys do it. I'm sorry. I'm sorry, bro, I found this new venture. I'm out, I'm out. It's a little different.
Speaker 2:What's freaking awesome is like, like we all know, there's the three podcast hosts. We're real estate practitioners. They say that wholesaling is the easiest, quickest way to make money in real estate, but the reality is that the cash conversion cycle is long. Right, it takes marketing dollars today to get you a lead that's gonna turn into a deal two and a half to three months from now, on average, depending on the type of marketing strategy that you're implementing. So for cold calls, for cold call leads, it'll take you two months to get a lead. Then that lead turns into a deal and on average, it's gonna take you 90 days 96 days to close that and actually get paid. So the cash conversion cycle is freaking five months. You gotta wait five months from your first dollar spent to start realizing some revenue, right?
Speaker 1:And that person that's saying wholesaling is easy, it's probably selling you a course.
Speaker 2:It's selling you a course.
Speaker 1:And that's what people don't realize. So many things are pushed because it's an easy thing to make money off of.
Speaker 2:Exactly, and text leads for six months right Direct mail a little faster, ppc a little bit faster. But this is not a get rich quick business.
Speaker 4:It takes time, it takes money, it takes expertise, the lending front unless you just like bump into a guy that just wants to sell his property for like super cheap, and that happens, and that happens. I guess it happens right.
Speaker 1:My first wholesale deal I ever did. I only did five, just so you guys know. First wholesale deal I ever did. A friend of a friend brought me a deal. He's like, hey, you're from this area, right, it was an 18 key hotel I haven't been in operates in 2002. I didn't know what I was doing. I had about as much. I had as little knowledge as you could have about wholesaling and I'm like there's something here. So I got under contract for 700, sorry, for $775,000, and then I just emailed every single person within 100 miles own hotel.
Speaker 1:I contacted every single person with a net worth above a million dollars. I didn't know what I was fucking doing. And then one guy walks in, he rips a cigarette. We had one showing he had been looking at this hotel for like 20 years because I'm in vacant. Yeah, and he's like what's the asking price? I'm like $900,000. He's like great, let's do it.
Speaker 2:Bro, you did not make 200 grand, I made 125,000.
Speaker 1:Wow on your first deal ever.
Speaker 2:Dude you have this guy's so lucky. I put myself in the scenario.
Speaker 3:I don't know about lucky. I wouldn't say luck yeah.
Speaker 2:You know there was some strategy there. You're right, let's not just cut him right now when you put yourself in that environment if you do those steps.
Speaker 4:Not only that, he found everybody that owns a fucking hotel within 100 mile radius. You said right.
Speaker 1:You put it in like I'm sorry bro, no, you're good. No, no, no, I'll take the balls dude, I'll take the balls. I'll take the balls. I was like he comes up.
Speaker 2:My hands were sweating. I said you don't wanna shake my hands right now. He goes, no, I wanna shake your hands right now.
Speaker 4:Well, if it's any consolation, his fingernails are blue. So yeah, yeah, yeah, it's not, that's true.
Speaker 2:We're both weird, and let me break that down.
Speaker 3:let me break that down cause everyone's been coming at me for the nails. I heard this the other day and I only heard the first half of it, so yeah, yeah, yeah, yeah, I'll tell the first the full half.
Speaker 4:So Before you go, yeah. Am I correct? So, like these influence, like the influencers, they all have like a thing right, panada dies, his hair Right, or whatever, like Hermosi has, like it's a muscle hamster With the nose.
Speaker 3:Yeah, yeah, yeah.
Speaker 4:Like you do something that's stand out right. There's an element of that, is that.
Speaker 1:I'll tell you how it starts. And again, I don't know how this podcast flows, so if you tell me, However, you wanna take a flow Sure. So about four months ago was it four months ago? I think it was five months ago now Very close friend of mine, chris Trelawney, passed away in a car accident.
Speaker 2:I'm sorry.
Speaker 1:Yeah, yeah, no, it's all good. And you might know him from Instagram. He was like do you want a dollar? Double it, give it to the next guy. You want two dollars? And he went absolutely viral. I think he has like 1.5 million followers, damn yeah, on Instagram. And I remember man, I'm getting chills talking about this. I remember like probably the third or fourth time I ever hung out with him he was like always wearing light blue. I'm like Chris, I don't know this guy. I'm like what's going on? He's like, yeah, my dad owns a North Carolina Tar Heels store at Chapel Hill. I'm taking it over in a couple months. And he was always wearing light blue and I would just make fun of him for it. And he was opening his dad's store, I think two days before like reopening it, revamping it. He's an Indian kid taking over his dad's business. I think two days before the grand opening, he and his dad passed away in a two car wreck. His mom was in the back. She fortunately made it.
Speaker 3:So it started off with that.
Speaker 1:So it started off with like I'm not a tattoo guy, but I'm going to get it for Chris, just to like remember him. And now, like it's evolving to so many different things, it's like if I was still in real estate I would never dare do this. You know how many lenders or potential LPs would see that and just like laugh me out of the room. But now I want to be so valuable that I could have hair down on my shoulders, I could be purple, but they're so valuable that they have to deal with me.
Speaker 2:You know, I love that and people are like oh, maybe they're homophobic or they don't like it.
Speaker 1:I'm like guess what? I have 30 other people trying to work with me right now. You don't like it, like peace out, yeah Right. And that's the whole thing. I never want to be interchangeable.
Speaker 2:So, dude, I love that man. I'm sorry for Chris.
Speaker 2:Shalini recipes to him and his father. I'm glad that you're honoring him in that way and I like that you're confident enough in yourself to not give a shit what anyone thinks. I used to like when we first started the podcast, the Reels, I tried to be like the Ryan Panetta, like very professional, I want to go out. And then what I realized is that I was exhausted. I was exhausted in not being me. I'm a cartoon. I'm a cartoonish person. I like being who I am. Yeah, I'm a little bit degenerate. I am, you know Eric. You know Eric knows me best, but I don't give a shit.
Speaker 1:But you're authentic, I want to be myself.
Speaker 2:I want to be authentic, I want to be loud. I want to be loving, I want to be. You know, I just want to be who I am all the time. If you don't like me, get the fuck off my Instagram.
Speaker 2:I don't give a shit, it does not matter to me. And like some people are like, oh, like, oh, I don't know about this. I said you know what, larry? Tell that motherfucker to get off my Instagram because I don't give a fuck If he's not buying. Tell him to get off my Instagram because I just don't care anymore. I'm just going to be authentically me all the time. If they don't like me, they could kiss my, they could kiss my yellow ass.
Speaker 1:That's what I said. That's it. Well, to run that point, the number one regret that people have on their deathbed is they weren't true themselves, right, the biggest regret. And if that's what makes you feel that you're being yourself, do it.
Speaker 2:Let it rip. Kiss my round, you little tiny yellow ass baby. That's who I am, but.
Speaker 4:I think, I think it helps you stand out too. I think it's.
Speaker 1:I mean, all the comments are like you're serving your friend, which is awesome yeah.
Speaker 4:But like it's like a win-win. I mean as long as you're secure with who you are, who gives a shit, but but now you're like the blue nail guy, like with the fucking yeah, but they, they visit your page.
Speaker 1:Yeah, yeah, and I'm 29,. You know, when I'm 21, 22, you want to be friends with absolutely everyone. Right, I have you guys, I have enough friends. Yeah, I don't need to like, yeah, but I love that bro.
Speaker 2:Good for you. Yeah, yeah, yeah.
Speaker 3:But shake my sweaty hand, yeah, yeah.
Speaker 4:But so look, you guys want to run through the questions you guys have for us.
Speaker 1:I want to jump into this.
Speaker 3:Yeah, go for it, just because so I forget how I first met Evan and Sam Weiner.
Speaker 1:It was Sam Weiner's crew. The WhatsApp group Shout out Sam Weiner. By the way, the God, the legend, that guy is the best network.
Speaker 3:I've ever met. He's the the best. He's the connector. Yeah, we call him a connector, yeah.
Speaker 4:It's insane, so we should real quick before you jump Sure, sure, sure. We're actually starting kind of a takeoff of Sam Weiner's the WhatsApp group, which is awesome. It's going to be deals in dollars, vip guys like us and it's just going to be like our boys, right?
Speaker 2:Right.
Speaker 4:You go in there whatever you need, right? Yeah, I need a lender for this.
Speaker 3:I need a car sales guy.
Speaker 4:I need a guy that can get me. I need a guy that could do lines of credit. Right, like we're going to do it, we're going to piggyback that from this podcast Facts Guys like you. So after this, we'll get to you, we'll get you, we'll plug it out.
Speaker 3:Yeah, nice, nice so just to go back to you know how we met. We met through Sam Weiner. I don't know if I saw something that you put in the group or if somebody reached out to me for some type of funding, and sure. Anyway, I connected with Evan and I saw two things. I was like, OK, he does credit repair and he gets people unsecured business lines of credit and unsecure and business credit cards. Somebody else, who I won't name, I know does this and I had just recently financed a loan for him and he makes about two and a half million dollars per month gross doing exactly what Evan does. So the credit repair thing was really what got me, because I think we were working on a deal. I'd sent you guys a refi. We were doing something where somebody's credit was shit and it needed to get bumped up. I've run into a million guys that do what you do and they all take like three, four, five thousand dollars and you don't fucking hear from them ever ever, and they do Lexington law Nothing.
Speaker 3:So the first person I'm trying to remember who the first is, but fuck them.
Speaker 4:First person I introduced you to.
Speaker 3:First person, that was fire. That was good. What about?
Speaker 4:this, I mean he dropped the bar I'm sorry.
Speaker 2:He dropped the bar Go ahead.
Speaker 3:Anyway first person. I hooked you up with. You fixed their credit and you got like 20 inquiries removed in like a week. It bumped their score. We closed the loan. So I was like holy shit, this is.
Speaker 3:This is really helpful and it works. I started telling people about it and then it became very interchangeable and applicable to anything. I think I could speak for you guys, definitely, you like. Very applicable to everybody that we were speaking to and I was sending Eric loans, passing deals back and forth, and guy you know guy was like look, I'm buying this for family, I'm $50,000 short, let me go refinance this other property I have. And I said, well, hold on a second. That's gonna take 30 days. Time kills deals, it's gonna fall apart. Why don't you just call my buddy Evan, get a line of credit from him, unsecured line of credit in three days, and get 50 Grand. Or get a business credit card. Liquidate the business credit card right. Boom, you're done.
Speaker 2:Yo, you know, it's fucking wild, johnny. I had a 788 fight. Go guess where I'm at now 802 baby.
Speaker 3:And that was after what you got.
Speaker 1:That's true, that's real right there.
Speaker 4:But it's legit cuz, same same for me. You, you jump me.
Speaker 3:You jumped, eric, 60 points. My point is and what I kind of want to get into is that this is so applicable to Anybody that I've spoken to right, whether you're trying to fund a fix on flipping you don't want 12% bridge money whether you're trying to start your car detailing business literally anything on the planet this is applicable for so to anybody who's listening. If you've been waiting for the right time to either save up the money to do your first fix and flip, or start that business you've been wanting to start, fuck it, stop waiting, take advantage of this and you could do it by next week. It's a no-brainer, and I really mean that because I've sent you probably I've been a lot.
Speaker 3:You've sent me over $50,000 in the last two months from referrals yeah, so you could think about how many people that we've helped and how many, how much the dollar amount that we have gotten people.
Speaker 1:Funded through you. I think it's five million unsecured.
Speaker 3:Wow, and I'm talking like I didn't really. I'm just like I'm not trying to send them people. This is just day-to-day conversations of Eric and I and Dave like doing deals, just doing what we normally do.
Speaker 1:I mean, clint, you know it's applicable to anybody right, right, right, yeah, and it's, and I would five million funded through you, bro, yeah and that wasn't even we.
Speaker 3:You weren't even trying, no we never know it. It literally just is applicable to anybody and everything, no matter what career path you you're in or what business you're trying to start. You can, you know.
Speaker 1:And I think this access to the capital.
Speaker 4:If you're not taking advantage of your to bring your business out of sharp disadvantage, it's your percent money go ahead and I think, I think, kind of like the proof is in the pudding, because John's telling me is like, yes, guy, evan does. Does you know these unsecured lines? I'm like, yeah, yeah, let's see. And like you know, I'm not quick to make referrals because in this business all you have is is your name, right, yeah, and so we get you know constant stream of borrowers every day, every day. Probably every single one of these guys could use, right, could use an extra hundred grand, right for free.
Speaker 1:Yeah, I mean who's saying it? Was not right, so and if you can't flip that $300,000, I can't help you. Yeah, even a hundred grand either cut you off right.
Speaker 3:Like Evan said, you could go to M&T Bank, chase, bank of America and TD Bank at 150k from each of them and none of them will know about it. Now you have 600,000 at zero fucking percent. Where else are you getting that?
Speaker 1:And it's all on the business side too. And for my real estate guys the same way as if you get a Real estate loan on your LLC, it doesn't show up in your personal credit. So I don't want you guys think it will mess up your guys debt to income. It's all in the business side.
Speaker 2:That was my first question, yeah.
Speaker 1:Yeah, so congrats in the 800 dude. Thanks brother. Thank you, I feel so.
Speaker 4:Asian your forefathers will be proud.
Speaker 3:Let me tell you these muscles and 800.
Speaker 4:You're a catch. If you're listening ladies on hinge.
Speaker 2:I'm about to put fight go score.
Speaker 4:Millionaire investor, real estate entrepreneur 800.
Speaker 3:Approaching single-digit body fat.
Speaker 2:You guys are great salespeople. Excel wizard keep going. Let him know, josh because we brought that.
Speaker 3:I brought this up before a good friend of mine, who you know who. Again, I said I helped him with, I got him alone. Actually I got him. I financed the yacht that he bought right and I saw he's in the exact same business as you are right. And he's only doing 25 million dollars a year. So when?
Speaker 3:I saw, actually he's doing almost 30 million a year. When I saw that and you and I started sending you people and they were closing, we were transacting, we were actually getting paid. It was working I was like, holy shit, I'm gonna. Not only do I like Evan and consider him a very good friend, but this is super fucking scalable, yeah, like I saw what this kid was doing and I never understood it until I started working with you.
Speaker 3:Right and this skin. He told me very simply this one guy. He said listen, I get about 200p and I might be giving away his sauce with this, but I'm hopefully not. He's like look, I get 200 people funded per month and we charge between 7,500 and 15,000, right, you know? Total fee per person, right? 200 people, 10,000 a person, that's two million bucks a month.
Speaker 2:It's not rocket science.
Speaker 3:So I'm kid. My question to you is you know we heard how you got started with it, right Like what are the and I think I know the answer this question but what are the bottlenecks that you're facing right now and the kind of hurdles that you think you need to get through In order to reach, like that capacity?
Speaker 1:sure? Yeah, no, it's a great question. And all of you guys, I think you know speaking with you guys has helped a lot because I really enjoy Me. People who show me what's possible, like that's a lot of the thing. It's the mentality like you meet someone else and I'm not. It's like sometimes, like you guys are all very impressive. Sometimes I meet someone like that guy's doing it Okay, but let's, let's, let's ride.
Speaker 1:And the other half is like, okay, like like this guy is showing me and I'm like, okay, I have the mentality, I can do it. So it's really there's four things. Okay, and Robin, that you can't see on video he's, he's sort of behind that, behind the scenes there. He's gonna be a big part of it. There's really four people advertising and marketing, setting, closing my bad there. Advertising and marketing setting, closing and fulfillment. Yep, okay, those are the four things. I'm gonna say it one more time. So for the clip advertising, marketing, setting, closing and fulfillment. Okay, and I wake up every single morning and I rank it. I'm like, okay, where's advertising, marketing at, where's fulfillment, at where's setting, where's closing at? And you know, as you guys know, scaling a business I mean right now our revenue looks like a hockey stick.
Speaker 3:So I'm trying to Scale and grow Can you quickly break nuts interrupt Can you quickly break down those four steps and like one or two sentences each for our listeners.
Speaker 1:Oh, like the four steps that you need for any, no like.
Speaker 4:I mean, it's really any business.
Speaker 1:But yeah, and this could be applied for any business, absolutely so marketing advertising you know Leads, leads cures off. You have people calling your phone. You know everything else doesn't need to be great. Maybe your CRM sucks, your salesperson sucks, your setters drunk, but if you have enough leads you can make a work. So that's just people, just describe describe our company.
Speaker 1:And here's another little thing. I'm not, I didn't go to college, but one thing that helps me remember that marketing and branding, because people confuse it all the time, people Fundamentally mess up what I actually want to hear you what is, what is your definition of marketing and branding?
Speaker 2:so marketing for me is driving Clients that will buy your product through the door in the form of a lead. They either enter your CRM inbound or an outbound. So outbound lead would be someone you reach out to. They say, yes, right, I want to buy your product. Or an inbound lead is someone that fills out a form or gets a direct mail piece and reaches out To you and says, hey, I want to buy your product, right, right. The two of them have drastically different.
Speaker 1:What's branding?
Speaker 2:so branding would be the. It's very hard to quantify, but it is the conversion rate at which those marketing channels start to improve right.
Speaker 1:I'm actually really impressed. That was really good.
Speaker 2:I'm really good. No, that was fire.
Speaker 1:So I'll tell you. I'll tell you what marketing is. Is you swiping on hinge? Yeah, and branding? Is them saying yes? Yes, exactly marketing is asking the girl out brand or whatever you're into, dude. I was at and branding, is them saying.
Speaker 4:Yeah, I was a legion and then, like the ability to convert, I had no no idea what, what branding was until Eric.
Speaker 2:Eric's always been thinking like five years ahead of me. Is what I Start to realize five years into the business, like I was like fuck the website. Kiss my ass, eric. With the website that Google reviews. He's like dude, it's important, bro, the Google reviews report. I'm like dog. Did we just get the deals and let's move on? Let's shake it, big baby? And Eric's like no, no, we got to build brand, we got to build a brand, we got to build a brand. And now do it like I Went to my local pizzeria to get a chicken. Cull it today.
Speaker 4:And that's so one chicken, cull it. One chicken, one chicken cull.
Speaker 2:All right, I got the the big sandwich. I got the bacon the big. I got a bunch of stuff. All right, leave me alone. Anyway, I'm sweating like a fat China man over here. You guys, you guys cook it beautiful.
Speaker 2:And then anyway, the guy comes up to me, goes bro, your Instagram is so funny the owner of Ferrisolis. I'm like. I'm like, oh my god, this guy usually never gives me a time of day. Yeah, comes up to me, he's shaking my hand. He's like yo, let me get your number, I'll text you. Goes, it goes. I'm like, oh, wow, this is, this is what branding does. Right, I'm at my gym kickboxing, beating the crap out of 15 year olds, a tiger shulman. This one, 18 year old, comes up because, bro, I heard you're in real estate. I've been checking out your Instagram. Comes work for it, comes to work for us. Now His dad's our contractor, does all of our work. Right like, branding converts every opportunity, whether you're at the gym, the pizzeria, you're getting haircut, it's just your life starts to convert into deals and dollars and employees. And it just has such a powerful impact that just, it's hard to quantify Until you're three years into it. Right like, you're committed to making it work.
Speaker 1:And we're still so early in the creator economy, which I don't think anyone realizes, like the, the compensation for creators hasn't caught up yet, oh and, and our value is only gonna go up. And again, I'm micro, I've like you know, you know, you know my numbers, but it's like even that man, they're like there is so many people actually watching what we do. It's crazy. But to break down the rest of your questions, so advertising and marketing is just, you know, letting people know about your product, screaming from the cat, from the, from the mountaintops. This is what we do.
Speaker 1:Setting is more and again, I'm still learning this stuff as well. But setting is like, okay, let's say someone books an appointment or there's someone in your DM's, maybe you run an ad, that's the setter is messaging, is liking their pages, engaging with that person. It's like, just because someone maybe likes your, maybe someone likes your, your, your photo, they're the ones that sort of massaging them and getting over the finish line to book the appointment, the closer is the one and think about like a, like a, like it's almost like a, four by one, you know, in track. It's like the, the advertising, just passes, it passes.
Speaker 1:Yeah, pass it on to the setter. Pass it on the closer, the closer is the sales guy. It's a guy getting them over the finish line, having them transact and then, after they transact, passing the baton to the fulfillment guy To make sure that they they're actually getting what they what they just purchased.
Speaker 3:And I want to jump back, something that this is randomly came into my head. You said there's so many people that you don't even think like that are actually watching us. Somebody said I don't remember who it was. I'm really trying to think who was, but somebody said something to me once and they said you inspire so many people that pretend to not even See you, and I don't know for whatever reason, that sticks with me.
Speaker 3:Yeah kind of just keep that on the back of my head with like anything that I do. Yeah, just a great name is the best business model man.
Speaker 1:My equivalency to that is I was I was snowboarding in Whistler, canada, which is in British Columbia, which is about five hours north of Seattle in Canada way on the other side of the world.
Speaker 1:I'll just out of the United States and in Canada if that's even Canada and I was on the chairlift and you know I smoked a joint, so I don't really smoke much, and after that I didn't really want to talk to anybody. I'm on the chairlift and I I'm on the gondola I think there's eight people on there and I take my helmet off and the guys like, hey, like you're from tiktok, no way, I just put the helmet back, take the one place in the world.
Speaker 3:So yeah man, but that's sick, though You're all the way out there like that. That's. That's like a pattern. Pat yourself.
Speaker 2:Yeah, that's awesome.
Speaker 3:Yeah, same thing with you being getting your your singular chicken cutlet, like that's, that's sick. You're that's what. You look in the mirror and you're like, wow, what I'm doing is actually working.
Speaker 4:Yes you know, like a celebrity yeah you are surprised you didn't give you two chicken colors.
Speaker 1:You know, you are, you are, you are a celebrity.
Speaker 2:I feel like a little celebrity you are you know I was on hinge. I'll tell you a funny story.
Speaker 4:I was on hinge all, all roads lead back to him.
Speaker 2:I was on hinge right and so marketing and so this beautiful girl. I'm sure I'm not gonna lie. What when a 10 out of 10 likes me? I get a little nervous, I get a little shaky because I'm not. You said 10 out of 10. Yeah, so I always hit him with a very weird response because the nerves come crazy, so I hit her with a weird response, but it converted.
Speaker 2:Okay, she goes hey, I'm getting, I'm deleting hinge, hit me up on Instagram. So I said, hey, on Instagram, hit her up. I it doesn't respond to me for two hours. Oh man, let it rock let it breathe, baby.
Speaker 2:I blew it, I blew it and then she goes. By the way, I've been on your profile for the last two hours laughing my ass off and I go. Well, do you wanna see if the real life version matches some of my Instagram persona? And now score Sunday? What 10 out of 10? Let me tell you, josh, if there's any way that I could pay you back with hugs and kisses.
Speaker 3:He says dollar signs only. He says dollar signs only. I don't know. You seem to be handing Rolexes out in the air.
Speaker 1:Well, that's what I saw on social media. Seriously, I saw the green Rolex.
Speaker 2:Don't believe everything you believe on social media, the Hulk. Let's just keep that on the. You know, whatever who owns?
Speaker 4:that watch right now. The world needs to know.
Speaker 1:Yeah, that's a good question.
Speaker 2:Like Josh, do I do delivery? Next question. Next question this one's getting all right. You know what? This is the truth. If the full video I gave it was Bobbin's idea, he said. Bobbin said you know what will go viral on TikTok? Because if you gave me your Hulk, I said that's a great idea. Bobbin, and then I played it all out. At the end of that video I said give me that shit back.
Speaker 4:Do you have that part on video?
Speaker 2:Yeah, I do.
Speaker 4:You gotta post that part. That would probably go viral. What actually happened to my Rolex?
Speaker 3:No, that would go viral.
Speaker 2:All right, we're gonna rip that one.
Speaker 1:We're gonna rip that one. So what are the questions you guys have about funding credit or not?
Speaker 2:All right, so I'm gonna pretend like an idiot for the next 10 minutes. Sure, all right. So Joel Larede just introduced me to you and said hey, you should get an unsecured line of credit.
Speaker 3:You should get an unsecured line of credit.
Speaker 2:This guy just got me $100,000. Yeah, All right, so I get looped up with you. You give me your background, I go, oh, this guy's awesome. So I go all right. So is this gonna affect my? Is this gonna show up with my credit score? Because I'm looking to buy my mom a house this year.
Speaker 1:Great question, man. So everything we do is on the business side. So there's two different things there's your personal credit and there's your business credit. So everything we're getting for you is on the business side, so it's not gonna affect your debt to income. And so what that means is, let's say, we go forward with the process and we get you $100,000 and you get a hard inquiry. People are so sensitive oh, I don't want any inquiries. I don't want any inquiries. Well, because that inquiry is on the personal side and your funding is on the business side. They do not correlate. So any customer, any person we get funding for, we remove the inquiry immediately after.
Speaker 2:Oh perfect.
Speaker 1:So I'll go through some common mistakes, common misconceptions and I'll tell you straight up that's why I can say so freely where we get the funding from. We get funding from Chase, td Bank, truist, m&t, any of these sleepy banks and I can say that so confidently because we've had so many people that are like, oh you know, because of course we charge a fee for our services, they'll go in directly and they'll say the wrong things. They'll have the wrong industry, the wrong LLC, their name is spelled wrong, they have too many inquiries. There's about a hundred different things that you can say or that can be on your file that can lead to an automatic denial. And they come back to us and they're like hey, I only got a $4,000 limit. I'm like, well, now I can't help you because that is on your file forever with that bank and they know your story, so you screwed yourself.
Speaker 1:So there's so many different things that are on your file that can lead to a denial. And what we do is we go through your file. We remove any previous addresses, any inquiries, any misspellings of your name. We can increase your credit score, remove your inquiries. There's so many different things that we go through and that takes about a week and then after that, you're ready for funding and you're ready to walk into that bank Because, again on the topic of hinge and swiping right, that's your first impression. That's your first impression is with that bank and you only make one first impression in life, so you have to make sure you come correct.
Speaker 2:Gotcha gotcha, All right. So it does not affect my ability to go out and get a personal loan and buy a car or buy a house, Absolutely not.
Speaker 1:It doesn't show up on my personal credit score. It doesn't show up on your credit score now. Now, and even if we don't get you a dollar, we leave your credit in a better condition than how we found it, as you guys have seen.
Speaker 2:So let's just say I know utilization has a huge impact on credit scores, right? So on my Chase and my whatever my Chase accounts, I probably have about $150,000 I could use. If I exceed, I think, 10 or 15% which I never do, it starts to impact my personal credit Because it doesn't show up on my personal credit. It shouldn't impact me. I could fully utilize $100,000 that you get me.
Speaker 1:Yeah, let me answer that. So one business credit. It does not show up on the personal side and also the utilization does not report. So if I give you $100,000 Chase card, you want to buy a rental, you max it out and use $99,000, it doesn't negatively affect you, whereas on the personal side, if you get $99,000 on a credit card, your credit score is going to be in the 500s before you know it.
Speaker 1:Yeah, and that's the biggest, even like so many people, our job is just converting all of their debts from the personal side to the business side. I'm like, yo, you have a business, we had this guy. They're business, they actually. They transport bodily fluids, they transport blood, urine, all that stuff. It's very profitable and all of their debts was on the personal side. So I'm like, look, this is what we're gonna do. We're gonna pay down the personal side and just convert everything to the business side. So you're doing it correctly, Because if you're not doing that, they can be like a big issue with your taxes as well. Okay, so a lot of our job is just converting the debt to the correct spot.
Speaker 2:Got it. So I have an employee that has $25,000 of credit card debt and he's paying 18% on his AmEx and he's paying like 20 something percent on another card, right? I was like you know what? That doesn't make any sense, Is there? What would you recommend to that guy?
Speaker 1:Yeah, and that's dude. That's really where we come in, because there's people that are trapped exactly like that man. They've never missed a payment in their life, they have great age, that you know. Their file is perfect other than the personal utilization. So we actually bring in private lenders that will come in and liquidate that personal side. Their credit score shoots up to the 800. We get them 0% interest business funding. They pay off that lender. They have that bridge debt for you know, two, three months. They've consolidated the personal side, they're out of the 18% and they're converted to 0%.
Speaker 2:Okay, yeah, and they're converted to 0%. So, you could save them a significant amount of money.
Speaker 1:Yeah, and again, that's just not any guy off the street Like we have. You know, these are all private institutions, private venture capital backed firms that will go in that will pay down your personal utilization bridge loan between one and four months, pay it off and then convert it to the business side.
Speaker 2:So walk me through how that would look for him. Like he's got 25 grand, he's going to get a bridge debt from a VC firm or a private equity firm. How much? What is the VCP?
Speaker 1:firm going to charge. It's expensive, it's 25, 30%. But think about it. They're loaning that money to someone with a 650 FICO, so they pay that, you know, 25, 30% for two months. They pay off the 18% and then they're converted to 0%.
Speaker 2:Got it. They're converted to 0%. Okay, so walk me through what it looks like for like. Is it a three month process for him to get to? I can get him funding in a week. Wow yeah.
Speaker 1:Even with a 650, 640 FICO and that's a new thing. A lot of these venture firms are popping up. I'll fund them the money. Yeah, he won't need a VC firm. You're the.
Speaker 2:VC.
Speaker 3:Yeah, I'll VC, and for 20%.
Speaker 2:Just kidding.
Speaker 1:No, I'll get it. There's a little truth behind every JK. I'll front him for zero.
Speaker 2:But we'll all right, cool. So we got to get him set up. Yeah, okay, 100% man.
Speaker 1:And again, like before, we do that, we would just make sure that there's no other issues with this credit. You know, we would make sure he's never missed a payment. We would make sure his LLC is set up. And if you don't have an LLC, I wouldn't necessarily form one. I would buy an aged one. I would buy an aged Wyoming LLC because you have I could never say this word amenity.
Speaker 2:Amenity.
Speaker 1:Amenity. Which means you're private. No one can find out who's behind the LLC.
Speaker 4:And it's a lot easier to get Like anonymous.
Speaker 1:Yeah.
Speaker 4:Anonymity, anonymity.
Speaker 2:Anonymity.
Speaker 3:Anonymity.
Speaker 2:Anonymity, anonymity.
Speaker 4:Anonymity Josh said anonymity. The English major said yes.
Speaker 2:Yes, you're an English major. Oh, yes, yes, yes, yes, good job.
Speaker 3:No no no, no, that's definitely true. That's Josh. I'm Asian.
Speaker 2:Math is my skill set Word.
Speaker 1:Word. But yeah, man, that's definitely a little advice If you're thinking about forming an LLC for whatever business you have. Also, it doesn't matter the name of your LLC. How many LLCs do you have? Too many?
Speaker 4:We have a sheet. Yeah, I think it is like 92.
Speaker 1:100. Yeah, yeah, yeah, it's kind of gross. That's the biggest thing they're like.
Speaker 2:It's a big problem now because the Corporate Transparency Act is now requiring you to file any like anyone that has interest. Anyone has 25% or greater, you need to report on it, otherwise there's these egregious fines.
Speaker 4:So it's becoming like you, it won't be anonymous.
Speaker 1:Talk about that a little bit. Talk about that. It won't be anonymous, this new law, yeah, what is the corporate?
Speaker 4:We know more than I do I think you know more than I do, but basically it's to keep people from hiding behind the LLC like the corporate seal On side agreement sort of, or on the main operating agreement. On the main operating agreement. If you're a principal I think it's over 25% you must report that you're a principal owner and then I think there'll be a corporate registry and you can see all the owners who own more than 25% of any given LLC, but not under 25%.
Speaker 4:So the way that it would use to work, you might know better than I do.
Speaker 2:Honestly, I let our CSO just handle it.
Speaker 2:But the way that it used to work was that you could have one person, one of the owners of the entity, be registered with the National Federal Forum, like the, get your EIN, and basically everyone else could kind of be hidden under, like the operating agreement, and so you could have multiple owners that don't have to show their name in the certificate of formation. So any government regulation or anyone investigating that entity would never know that Eric Paneki was a part owner in this company. But now, with the Corporate Transparency Act, it's requiring that anyone with a vested interest over 25% or has voting shares on how decisions are made now needs to be reported, and so if you don't report it, you're subject to very, very, very expensive fines. It's not like $25. It's like thousands of thousands, of thousands of dollars, and if you have 90 plus entities it becomes a tremendous burden to fix. And so, yeah, I mean we probably spent a good chunk of like 70 hours combined just cleaning up our entities in preparation for this law to go into effect.
Speaker 4:So basically, I mean, if anybody cares what we're doing is, we just hire a registered agent company that handles all this. They clean it all up for you, they'll do all your annual reporting, like Legal Zoom or something. No, there's companies that they're just registered agent companies. And they handle annual reporting. They'll handle Corporate Transparency Act. They'll handle all, make sure you're so, we don't see it anymore.
Speaker 1:Yeah, yeah, yeah.
Speaker 4:But yeah, and I think that costs us like $300 a year per entity.
Speaker 1:Per entity. Yeah, it's not bad word, but LaBrette, what's on your mind, baby girl?
Speaker 3:I don't know I'm just taking this all in. This is good.
Speaker 1:Yeah, it's like a fireside chat man.
Speaker 3:At the AF1, post it up. Yeah, yeah, there's a lot of scale here. It's all very interchangeable.
Speaker 1:This will be interesting in like 20 years to see this room like where everyone it's going to be wild.
Speaker 4:Let me ask you a question. Sure, you think?
Speaker 1:Yeah, true.
Speaker 4:That's what I'm thinking.
Speaker 1:That's a great mindset, by the way. I agree with that.
Speaker 4:Sorry, there might be partly because it's like that I don't know what you call it but when you look for red cars, you only see red cars.
Speaker 1:Sure Right, we'll have attraction.
Speaker 4:Yeah Well, I don't know. You notice that. I think there's a word for it. Maybe you guys know what I'm talking about.
Speaker 3:I know what you're talking about.
Speaker 4:I can't think of the name Like if you look for opportunity, you always find opportunity. If you look for the negative, you always find the negative.
Speaker 2:I just saw the real on that. Yes, you know what I'm talking about If I paid you $100 for every red car. If I asked you how many red cars did you see on the drive here to Newark, you'll probably say I don't know. If I said to you come back, drive here tomorrow, I'll give you $100 for every red car that you see, you better bet your ass you're not going to miss a single one. It's the same thing for opportunities.
Speaker 4:Or if you buy a truck right and you just bought a truck, you're like, holy shit, look at all these trucks on the road, right. So, anyway, my point is I never really realized, I really never saw anybody doing this unsecured business lines, and then John started pushing you. David is now and we're going to start doing a bunch together and I'm seeing a lot of these guys.
Speaker 1:Yeah, yeah, yeah.
Speaker 4:Is this just a new wave of things, or am I just now seeing it?
Speaker 1:I think it's a blend. For sure. I think also Facebook is listening to us right now and now that you're talking to me, those ads are popping up, but at the same time, with interest rates where they're at, people want the cheapest capital possible and, as you saw, I've seen mortgage assumption and seller finance really start to blow up. People just want cheap capital.
Speaker 3:That makes sense. To be honest with you, I wish I knew about this, or knew more about it, and was as involved with it as I am now, like six to eight months ago six to 12 months ago, when rates were super high. This would have came fucking handy for me and probably you guys and a lot of people.
Speaker 1:And it's. You know, this is my. I'd always been a real estate guy and this is one of my. This is my first true online venture and I've just realized we're selling oxygen for a lot of people Like it's the most precious commodity, it's the most closest interchangeable thing for time, you know.
Speaker 3:You're selling like the best oxygen that costs no money. Yeah, yeah, yeah.
Speaker 4:Well, my next question is how do I turn it into cash?
Speaker 1:Yeah. So there's a number of different ways you can do that. You can do it like by billing yourself. There's merchant companies that you can just have them do it for you and they charge you a small fee. So there's a lot of different. A lot of our guys just get the credit cards, convert it into cash and use it for closings. Right, but then there's also people that want the lines of credit where they're only paying interest when they're using that money, Right? So it really varies.
Speaker 3:I mean, you got me a business credit card and I just swiped it through the square account for Lux Miami.
Speaker 4:Yeah, as a charge. They charge you like what? 2.5%, just the standard 2.3% as it was a visa or whatever, something like that.
Speaker 2:Yeah, what do the cash on cash returns for these freaking, these luxury cars? Hearing ridiculous things, johnny, so like I can't believe you didn't put that up actually.
Speaker 3:So I introduced Clint to Evan and I'm going to bring it back to you because you said the name of the LLC does not actually matter.
Speaker 1:Name of the LLC does matter. You just don't want anything restrictive in it.
Speaker 3:Got it. So the problem? So Clint for anybody that doesn't know is one of my business partners. He owns a luxury exotic rental company, a concierge company in Miami. He was going to buy a Urus, a Lamborghini truck and because he didn't have, he always bought everything in cash over the years, which is great. Until you go and try to get $150,000 auto loan, exotic auto loan, and they see that you don't have any prior similar trade lines to show you've paid it on time and full, blah, blah, blah. Because in that world, in the car financing world, the name of the company the LLC that was going to own a whole title to the car, when they looked that up, it just tied back to like exotic car rentals and that was like a big red flag.
Speaker 3:And I think when we tried working, when I took you up a Clint and we tried working on something. I think something similar was like a problem, but I can't remember.
Speaker 1:Yeah, yeah. Well, you bring up another point too. Is that, having comparable credit? Another service we offer is that we can add primary accounts and authorized users Like old trade lines. Yeah, like old trade lines on your account.
Speaker 3:So you have a good credit. That's crazy. Can you really For cheap?
Speaker 1:for fucking like 300 bucks.
Speaker 3:You can add a 20 year old $50,000 Wells Fargo credit card.
Speaker 1:For example, if you have a close what?
Speaker 3:Yeah, but it takes how long to report a month.
Speaker 1:No, it depends on your reporting cycle. If you get it and your card happens to report in a week, it'll be on there in a week.
Speaker 3:So for example, if you have a client that needs to get up your score, like 20, 30 points.
Speaker 1:We can throw on there for like two, three months, you know like $10,000.
Speaker 4:You pay monthly.
Speaker 1:You just pay one time it's like a short term fix. Let's say, someone needs a loan.
Speaker 3:For what's his name that we're trying to do the loan with and he was going to add a trade line 300 bucks. One time it's a quick job.
Speaker 4:That's insane. I really jumped you up. Yeah, I had a buddy do it.
Speaker 1:I'll tell you. What it is is that when you get that trade line and it's not utilized as well, your utilization goes down, your age goes up, and so that's another big thing. The arithmetic behind your credit score it's 35, 30, 15, 10, 10. It sounds like a lawyer's like number, but 35% is have you made your on time payments, payment history, collections, bankruptcies, all that stuff? 30% is utilization. So if you're above Huge one. Yeah, it's huge, huge. It's like you know, it's like again 30% of your credit.
Speaker 4:Let me ask you this, because I think this is a farce. But everybody I always heard like, oh, you got to use it a little bit, you want to be like 10% utilization Like really the perfect number around.
Speaker 1:utilization is like six, really.
Speaker 4:I'm always at zero, but as soon as I go to like 3%, my score goes down.
Speaker 1:I'd have to see your file. Yeah, I'd have to see your file, I was on the phone.
Speaker 3:I put you on the phone with somebody. I forgot who it was and you told them don't pay X down completely.
Speaker 1:Correct Don't pay down, you don't want to be at zero.
Speaker 4:You want to-.
Speaker 1:If I'm usually at zero, is that a?
Speaker 3:credit card or is that like an auto lease?
Speaker 1:That's a credit card, because if we're going to get them funding, if we're going to get them a $50,000 card, the banker's going to look at their file and be like all right, you're not using your credit card, why do you need another one?
Speaker 3:Got it. So if I was trying to get a $50,000 credit card from you and I have a $30,000 one and it's at like $3,000 or $4,000, at least there's some usage, there's something.
Speaker 1:There's something there, yeah, and also, you don't want your cards to close. If you don't use them, they'll eventually close, yeah.
Speaker 4:All right, so $35,000, $30,000,.
Speaker 1:$30,000 is utilization Again, and I'll tell you how we can help you. Let's be proactive here. So 35% is have you made all your on-time payments? I don't do credit repair but I have an affiliate that does the credit repair for all of our clients. So if you have late payments, collections, derogatories, I have someone who can fix that. Utilization. That's 30%. If you have high utilization, I have a lender that can pay this stuff down on the short term so that we can refinance it into business credit. 35, 30, 15. 15 is age. If you have low age, there's things that we can add under your file that are authorized users that increase your age. Or, for example, I've lived in my apartment in Manhattan for seven years, rent stabilized. I added that onto my report by two different lenders. So I have two different people reporting my seven-year age of $2,000 a month and never missed a payment.
Speaker 3:So I got the age as well as You're reporting that rent and it's coming up as if it's a loan.
Speaker 1:Yeah, and it shows up at 0%, so it doesn't throw off the debt to income. So that's age 15. 10. Nice push 10 is.
Speaker 4:That's the value of the headphones.
Speaker 1:Oh, my bad, I forgot. I'm wearing these things, I'm ripping. 10% is I'm not, I'm not, I'm not, I'm not. 10% is diversity. So they want to see that you've serviced a lot of debts, you've paid for your car, you've paid for your credit card, you've paid for your mortgage, you've paid for your loan. And then the last 10% is inquiries. As you guys have all seen, you guys are active business people. You're buying things. You're buying cars, houses, whatever. You're checking your rates. Every time you do that, you get an inquiry. If you're more than three, you're deemed high-risk to lenders.
Speaker 2:What's the secret to a great FICO score?
Speaker 1:Yeah, great credit score. So absolutely man. So to get an 8.50, there's a few different factors. It's pretty much 35, 30, 15, 10, 10. So 35% is have you ever missed a payment? You want to keep that at 100%. 30% utilization how much debt have you used of the available credit that you have? 15% age how old is your credit file? The last two 10%. 10% is diversity. Have you serviced a lot of different debts Cars, mortgages, credit cards, personal loans and the last 10% is credit inquiries. You want to have less than three. If you're more than three, you're deemed as a high-risk lender to all banks. Wow, yep. Here's a crazy stat. For every 10 points, your credit score is higher. On average, you pay an extra $30,000 in interest over the course of your mortgage.
Speaker 2:Wait repeat that one more time.
Speaker 1:For every 10 points your credit score is lower. On average, you pay a total of $30,000 in interest on your mortgage. So let's say you have a 7.90, you bump it up to an 800 and you apply. You just save $30,000 in interest.
Speaker 3:Over the life of the loan.
Speaker 4:That's an expensive 10 points.
Speaker 1:That's how they keep you poor. That's why I do this stuff. It's like financial literacy is the greatest hack. If you don't have your credit score optimized, you're living your life in financial hard mode.
Speaker 4:I really didn't know that you could add the age of credit. One was always one like you could call a friend, right?
Speaker 1:Yeah.
Speaker 4:Or you got an old friend like us. We have Mahir who's old. He is old, I fixed his credit. Sorry man.
Speaker 1:No, that's not true, it was just inquiries. It was just inquiries. What do you want, man?
Speaker 4:He's got a 20 year old credit card that he has and I'm like he added me to that baby. It jumped me like 30 points.
Speaker 1:Yeah, Devin D Martini who was born in 1997, has a card in his file from 1979.
Speaker 4:Yeah, he has a parents.
Speaker 3:Like a 45 year old. And you want to laugh super hard too. Devin D Martini is a kid that I went to high school with that was doing fix and flip. He's a GC great kid calls me one day. You know, I saw where you posted. Can you introduce me to your friend Evan Ruegen? I did Boom, they were working together the next week, devin Devin's working for Evan.
Speaker 4:Wow, he's getting added to every group.
Speaker 1:That's amazing. That was your boy, dude. Today he's flying in from Florida on a business meeting for us meeting with a very similar group to yourselves of funding their entire division in Florida. This guy, this guy, andy, buys houses. He helps people build houses from the ground up and they need funding.
Speaker 3:Yeah, I look at Devin's Instagram.
Speaker 1:He's rolling around in the Rolls Royce.
Speaker 2:It's awesome, he doesn't know that haven't exist so Willy did that really got a little tell you exactly what Willie did.
Speaker 1:Willie went out well, he got, he got it.
Speaker 3:Let's say he got a hundred. I don't know the number. Let's say you got a hundred thousand dollars silly Willie as a quarter.
Speaker 4:Millie Willie. He's probably like a millie Willie now.
Speaker 3:Millie Willie was I'm gonna break it down for you though, so Willie driver what he did was he went and got a hundred thousand dollar line of credit or a business credit card, I think. He got a credit card and he liquidated it's now he's got a hundred thousand dollars is zero percent for 18 months. Of that hundred grand he took 60,000, I think, 65,000, about the one-third of the price of a Lamborghini truck. He went and he bought that Lamborghini truck, put out 65k. His payments I think like 2300 bucks a month, right, that car is probably bringing in somewhere between 8 to 12,000 a month. Okay, so now you're paying. Let's round it up say three grand a month that your payment. Now You're probably netting, I don't know, anywhere from five to eight. Five to eight grand a month. Right, in 12 months or six to 12 months, you now have your cash back in your pocket. Your 65k you outlaid, right, so your cash on cash return is.
Speaker 3:Probably it's a hundred percent for the year and now you know that's it. You didn't pay any interest on the old lambo for free. It wasn't your money and it's making you a couple grand.
Speaker 1:I want a lamb, yeah, so let me, let me give it very.
Speaker 3:Why can't we do this?
Speaker 2:Lamborghini thing. Okay, why didn't we do this Lamborghini thing?
Speaker 4:Every other podcast leading up to this has been shiny objects.
Speaker 1:Not pass it's definitely not, by the way, will he?
Speaker 4:has a website and he does sling shots and he does car.
Speaker 3:I think you're missing, though, dave, is that it's not. It's all great and well and it sounds amazing, but you could, at you, call it right now and ask him. I guarantee, if I face on Clint right now, he's dealing with some type of bullshit, because there is a lot of problems.
Speaker 1:That's a sling shot. Think about you. Don't have to say, I think, with a demographic that rent, I'm going to Miami to rent a sling shot.
Speaker 2:Do you want to deal with that? No, okay, no, okay, fair, and some of the people that are trying to reach some of the people.
Speaker 3:We have people Clint and I have had people call us that are like hey, you know this, this car is Shout out.
Speaker 1:Silly, will that say silly, will he?
Speaker 4:slingshots Jersey sure as hottest place for slingshot rental. Yeah, I respect you.
Speaker 3:You were about to say something, so the tie-in business credit.
Speaker 1:I think a lot of my demographic, maybe it's like first-time home buyers or maybe they've owned a few properties. So another great spot the business credit could be inserted is it just helps with the capital stack. Let's say you buy a property, it's a fix and flip, and you take out a construction loan. Right, you buy the property, you get what? 90% LTV, and then they'll cover 100% of the construction.
Speaker 3:I would say night 85 to 90%. Yeah, I'll cover 85 to 90% of the total capital stuff.
Speaker 1:Okay, cool. So let's say you bring your own money to the table and then you close in the property. You have to come up with that first. You know 30, 40 $50,000 to start the construction project. You insert the 0% interest capital there, get the project off the ground and then you could replenish with the with the construction loan. So it's another just great way to start these projects. And so, and also, what a project has ever been done on time or on budget.
Speaker 3:Yeah, dude, also think about it, right? You, theoretically, not even theoretically you could go to somebody like you and get three lines of credit for 150,000 each yeah right, let's round it up. Say you get 500 grand at 0%, you can go do a fix and flip with 500,000 at 0 fucking percent interest. Yeah you can do it, for it is not costing you a dollar. Your cash on cash return is infinite. There you have no cash in the deal.
Speaker 2:Yep.
Speaker 3:Am I missing something like it's a no-brainer?
Speaker 2:Yeah, so long as you can make more than 0% on your money. Well, I mean, there's points and stuff involved in the transaction, but the way that me and Eric are utilizing our, our Business credit and our business line of credit is just dumping into our debt fund. Yep, the debt funds gonna yield Astronomically more than than the cost of capital. So like it's just free yield, yeah right, it's like. It's not like we say, we have a million dollars liquid sitting in our bank accounts. We could dump that into the, the debt fund and which, and get like let's just say a 20% yield our money, just hype. Let's just say just arbitrary number, 20% yield their money, make 200 grand. Or we can get a million dollars of Free money, zero percent interest. Maybe it cost me a couple points, right, and make 20% on that, right. And so I just made arbitrage between the cost of capital and the money. That and the yield that we're producing through our debt fund as an investor is $100,000 of free money this year. That's just unbelievable.
Speaker 2:You made that a thin air and then, and then I take that hundred grand that I that I would have sunk into that investment would have been stuck there. I couldn't make a dirt opportunity cost involved. Now I take that and I buy, I buy more properties with it, right, and then I cost. It's just so like it's just the more capital. Dude, if you, if you could tell me to borrow a billion dollars at 8% right now, I would. I would do dirty dirty things for 8% money, or if a billion dollars of 8% money I really was or not, that you can get a billion, but what about a million of zero?
Speaker 2:I would take that in a heartbeat. So, yes, this is a, this is something that could really start.
Speaker 3:In my opinion, that could really you can. With this tool, you can snow, start the snowball effect Immediately with none of your own money.
Speaker 1:Absolutely you have a half decent credit score and half a brain Another thing is a mistake I made is I brought all these partners for a $50,000 check. I could have just kept all the equity and got gone to the bank and use OPM. Right, yes and not give up the equity, especially when you're first starting off, maybe you you know you want to raise that small chunk. You know that 10, 20, 30 thousand dollars Just go to a bank. You just have to structure yourself correctly. This is exactly how right, holy shit I just literally spoke to a guy.
Speaker 4:I spoke to a guy yesterday. He's like 75 case short for a fix and flip for whatever reason, I didn't think.
Speaker 1:I'm gonna make an intro, literally right now, oh, another example of someone that we got a funding A shout out basil, he won't mind me throwing his name and we got him.
Speaker 3:You know, basil.
Speaker 1:Yeah, yeah, good, good guy, by the way, he served our country like young dude, like really just grinding right now. We got him. I Think he got a Maybach that he listed with you guys he went.
Speaker 3:You got him, how much did you get him? 150,000, 150,000. He went and bought a Maybach Mercedes, maybach car that is now Lux is managing and renting it out and he's. I was just looking at the report this morning. I'm pretty sure he he made like, maybe like 5500 or 6500 this month, january.
Speaker 1:Yeah, is that net or gross?
Speaker 3:That's net, net, net to his pocket. That's beautiful, which means that we net To his pocket.
Speaker 1:Well, I don't understand why we're not doing it which? Means which means we netted double that. Why don't we do that? Hang on, let me just.
Speaker 3:I just want to make sure I have this correctly, so if someone's listening to this, they could get $200,000 with me. Invest in a car that you guys manage, right they can go buy a car that Clint and I and the team will rent out in Miami. Or they can go buy a single family fix, fix and flip from leverage companies. Or they could take their hundred grand and invest it in the brick city capital debt fund.
Speaker 2:Or anything.
Speaker 4:There's a million ways to make money.
Speaker 1:It's just the thing is to access the money to have it. I think 10,.
Speaker 2:You invested at 20,. You make 10% of free money that year. Simple money.
Speaker 4:I think if you're weighing those opportunities right, Like if you want to get into real estate, you want to buy properties?
Speaker 1:Capital is not an excuse anymore. Yeah, you should do that.
Speaker 4:If you want to just make decent return, dump it in a fund. It could be our fund, it could be any fund. Dump it in a fund, make 12% on your money and that's found money you wouldn't find anywhere else. If you're 12% on 100,000, you make $1,000 a month. What's a thousand dollars?
Speaker 3:And then, or if you want, to there's your car payment If you want to be a ball or a shot caller and buy a car and fucking do that too. We have tons of people that, like Clint, would really be better to speak on this, but there's a ton of guys that are just like you can't reach him, he's too busy.
Speaker 3:A ton of guys are just like most of what that business is. Not to get sidetracked is really privately managing stuff for guys, meaning the guy that lives in Miami six months out of the year and the guy that New York six months out of the year. When he goes back to New York he's like John Clint take my car, my house and my boat, I'd rent it all out, so it's a lot of that.
Speaker 3:But now guys like Willie, he's like wait a second. If I go get 0% interest money for 18 months from you to 100,000, 50,000, I could put that down on a car I'll make that 50,000 back in six out of the 18 months where it's a 0% interest and then after that I'm just making free money on nothing.
Speaker 2:I'm like yeah, yeah, it's pretty amazing, it is that simple.
Speaker 3:Obviously you have to get rented out. Shit does happen. People crash cars, shit gets fucked up like it does happen. But it is that easy, assuming all else works.
Speaker 2:The fact is is that there is risk involved in everything that you do Borrowing money from getting a business loan, business credit card, business line of credit, investing it into cars, debt fund, real estate. There's risk, but scared money don't make no money. And so if you don't wanna invest your money and you wanna sit on the sidelines like little bitch your whole life and complain about how everyone else is, oh, this guy's a scammer, this guy's doing big, this guy's lying on Instagram well, guess what, buddy, grow a pair of balls and start fucking getting to work, because, like every day, I get another guy calling me a scammer on Instagram.
Speaker 3:I'm getting real tired of these moments and I'm gonna tee off of that because the kid that we know that does what you do on a very large scale. I had seen his Instagrams, like the reels and what. Clint had sent to me before he introduced me to him and I didn't think it was bullshit.
Speaker 3:But I'm looking at it and I'm like I see this all the time. How the fuck is this true? Is that, is this all true? How are you making this amount of money? You're really in the $20,000 a month penthouse. Do you really have the 50K Rolex on? Are you actually doing what you're saying you're doing? And then I saw everything that he has everywhere on paper when I went to go do his loan and that's when I picked up the phone and called you. I was like this is real.
Speaker 3:This is fucking real. We have to figure out whatever me, dave and Eric can do and anybody that were involved with it can do to help you. We have to 200 extra business because it's super scalable and it's applicable to everything that we do and everybody that we talk to 100%.
Speaker 2:No questions asked. 100%. Yeah, it really might be one of the most scalable businesses?
Speaker 1:Yeah, it is, because what business? Where you get them, you succeed with them, you fulfill them and then they pay you with the proceeds that you got them. There's no down payment to start. So, yeah, I mean I can't sleep any night. I'm just up just thinking about this in my room. It's crazy.
Speaker 4:It's exactly the same, so like if I send a text message out to my lending database and said like I wouldn't do that yet.
Speaker 1:But if I did do it, let me scale on my end. But theoretically, if I did that, and you got like 300 inquiries. Yeah, that's what's gonna happen. That's what.
Speaker 4:I'm saying it would be maybe more.
Speaker 1:Because I need to bring in more Robbins to handle that it would be 300 a week.
Speaker 3:Yeah, I think you guys are undershooting that. I think it would be way more than that it would be insane, yeah, way more than that yeah, no, it would be absurd. There's your 200 people a month at a 10K average fee. That's $2 million a month, right there.
Speaker 2:This is the problem with business, is that it's so exciting, everything is so exciting Until you're in the trend. You know, like I've been taking this the whole time. I've been like Do you remember when I first, I've been dipping my toe.
Speaker 4:I'm like Do you remember?
Speaker 3:Let me see here. Do you remember when I first called you about this?
Speaker 4:Yeah, I know and.
Speaker 3:I was like yo I don't remember what I said.
Speaker 2:I'm happy to talk to him, sean called me and he's like yo, this is a big opportunity. I said, sean, like I finally got focused.
Speaker 3:I started with saying we have to stay focused on what we're doing each of us. This is not shiny object syndrome, but this is Huge opportunity.
Speaker 2:This is applicable to everything and everybody that we're already talking to and what we're doing it's ancillary income, like without much effort.
Speaker 3:But for us, for you guys and me on the broker side, but you guys on the brick city side this tool is not only making this money, but it's allowing us to get these deals done. The guy that's short 50, 60 grand, Like how many people are there?
Speaker 2:This is yeah, it's right there, it's right there.
Speaker 3:It's the solution to get our deals done in the things that we're focusing on, absolutely. I love it.
Speaker 2:I love it. This is awesome man. You see Devin just cruising around out there. Look, we're gonna wrap up here.
Speaker 1:What last questions do you have, Cause I don't wanna walk out of this room like fuck. I should have talked about that. Any other things that you're on, I think any clips. You think that would go crazy.
Speaker 3:I mean, what's You're like, the credit score and credit report guru in my eyes, and I think they're eyes. What's the best piece of advice that you could give to somebody that's either A trying to get started in any type of venture real estate or any other type of really anything or B somebody that's got a fucked up credit score for whatever the reason may be Maybe they missed payments, business was slow last year. What's the best piece of advice you could give to somebody right now that has shitty credit?
Speaker 1:So I wanna paint this with a super broad stroke, cause I could be answering you for an hour.
Speaker 3:Yeah, it's kind of a loaded question.
Speaker 1:Yeah, that's loaded brother, but essentially if you're in the game of business, you need a good credit score. Again, you're swimming upstream. If you're going into business with a bad credit score, it's not gonna work for you. You need to repair that first before you get into business. I know it sucks, I know it takes time and let me be real with you guys. Let me set expectations.
Speaker 1:Credit repair if you've missed payments there's two different things. There's credit repair and there's credit consulting. Credit repair is you've missed payments, you have late collections, derogatories, bankruptcies that's repair. Credit consulting is removing things from your file like previous addresses, removing inquiries, adding things to your file, adding authorized users. So you need two of those different zones fixed. But sort of to answer your question, what would someone do? That's starting a business that has bad credit. We give all our credit repair information away for free. I'm not here to sell anyone on credit repair. I have 100 modules on my school community that would give away for free.
Speaker 1:Now, fixing your credit it's not supposed to be super easy, because guess what, if it was easy to fix your credit, then no one would pay their bills and we'd live in anarchy. So it does take time, but everything on your credit needs to be accurate and verifiable, and if it's not accurate and verifiable, we can delete it. Now, what does that mean? If you're like yo, I can dunk. I'd be like, okay, show me. If you can't show me, that's non-verifiable. So that's how we get a lot of deletions.
Speaker 1:I know we're tall enough to dunk, I appreciate it yeah but that's how we get deletions is that like if Troy says, hey, I have 100 hinge matches? I'm like, okay, verify that information.
Speaker 3:Let's see this and he has 250. Yeah, exactly, there you go. No, I'm kidding.
Speaker 1:That is verified.
Speaker 2:I look look, I did all right. I mean, I deleted a lot of people.
Speaker 1:But to bring that point home, if the beauty about credit repair is you have all the laws on your side, as a landlord, you have all the laws against you, right? You know like, for example, you have to provide all these notices and all this crazy stuff. But with credit, all the consumer laws are on your side because you're a consumer. So if it's not 100% accurate and 100% verifiable, you can delete it. So to answer your question, I would just say join my free school community. There's 100 videos. You can fix your credit yourself.
Speaker 1:If you don't have the time, you don't wanna do it, I can hook you up with someone with my team and we can fix your credit. But more you know again, we're more funding. And we do that because we have to to set up the file, because if you come to me and you barely qualify, guess what? You're barely gonna get any money. But if you come to me with a beautiful credit file, $25,000, $50,000 credit limits that we can put you on, we can get you that $250,000 at 0% for really whatever you need it for.
Speaker 3:Okay, I have one last question too, so you market, you promote that. You can get people $5,000 to $250,000 in unsecured funding right.
Speaker 1:Read my Instagram bio. I have read it quite a few times.
Speaker 3:So you can get people $5,000 to $250,000. What would you say? The dollar amount that you, that is, that you see people easily getting approved for. Easily Like would you say most people are. You know the general person with a 7.25 score could get 50 to 80,000 pretty easily.
Speaker 1:Like yeah, it's pretty easily. That's like two conversations we get them. That you know, I'd say, a hundred is really like easy.
Speaker 3:A hundred thousand.
Speaker 1:Yeah, a hundred thousand, because we can even do some of the business side, maybe 10 to 15 on the personal side to not put their DTI too crazy. So like a hundred thousand is like all day, all day. I can do a hundred thousand dollars with someone for $4 an hour from the Philippines. They can run the complete file. And then you bring in someone like Devon. That gets them from the hundred thousand to $250, where it's like really niche credit unions, really niche. You know data points.
Speaker 3:So once you start working with somebody, say you get somebody a hundred thousand dollars in unsecured funding zero percent, you know funding, you're not done with them then right Like, at that point you're gonna get them up to $250, as long as they want it.
Speaker 1:Right Like you're done when they tell me to stop you know We've had people where we've gotten them a hundred thousand. Hey, just ran through that need another 50 to finish this renovation. I'll hit you back in six months. I'm gonna start another renovation. I'm like perfect and yeah, so it's like a file is never really gone.
Speaker 3:Yeah, files never really closed.
Speaker 1:Yeah, because someone finds another opportunity, like, hey, I need another $50,000. I'm gonna turn that to a hundred. Wow, that's it All. Right, yeah, guys.
Speaker 2:All right, well, look, this has been a fun. He's too deep in the head.
Speaker 1:He's wrapping it up no no no. You know, I just went through a breakup, so I'm just numbing the pain you know, talk to us about that a little bit, then we'll wrap it up.
Speaker 2:Yeah, if you're cool with it, yeah well, I mean, look like nobody likes breakup. You could. You know it's painful experience and you know there's healthy ways to go about it, which is feeling, crying, doing all the self work that that's gonna get you to a better place. And then there's the unhealthy way, which is exactly what I'm doing Going on hinge, going on dates way too fast.
Speaker 4:Trying to fill the void To fill the void.
Speaker 2:You know, basically my pastor, my best friends all told me not to do is kind of what I'm doing. So you know, fill the void.
Speaker 4:We'll check back in with you in like three months.
Speaker 2:Let's just see how messed up I am. You know, what I said to myself was look, fail forward so long as I fail forward. So long as I'm still waking up at 5.55 AM, going to the gym, working out, still working my tail off, and the business is growing, I still got a little smile on my face, we're all good. Because let me tell you something 2024 ain't nothing, ain't nothing gonna stop us. We're hitting all our goals, baby. That's what we gonna do. You better believe that. You better believe that.
Speaker 4:Evan real quick real quick before we wrap where do the people find you.
Speaker 1:Yeah, so Instagram is boweryboi boweryboy like Soldierboy.
Speaker 4:Yeah.
Speaker 1:Yeah, yeah, just hit me there Also, if you hit me, I mean there's gonna be a link as well, Boweryboy B-O-I we're gonna do an affiliate link.
Speaker 3:Yeah, we're gonna have a deals and dollars affiliate link, but people should mention deals and dollars.
Speaker 1:Eric, myself, Dave, If you happen to see this and you just want the capital immediately mention John Eric David, they mentioned everyone's name, so I know you are. I'll give you a little discount.
Speaker 2:Love you, bro. Thank you so much this was awesome.
Speaker 4:Thank you so much.
