WS1986 The Investor's Guide to Digital Assets | Highlights Steve Suh & Kyle Kuderewski

Welcome to the Real Estate Syndication Show! This episode explores broadening your investment portfolio with insights from expert guests Steve Suh & Kyle Kuderewski. We discuss diversifying investments through traditional real estate syndications and the emerging digital real estate market, including online businesses and SaaS platforms. They  highlight the significance of community, due diligence, and strategic navigation in both areas, offering perspectives on expanding investment horizons for potential returns.

First up is Steve, a seasoned investor in over 50 real estate syndications, ranging from self-storage to Broadway shows. He shares his journey from ophthalmology to passive investing, highlighting the importance of community through his Left Field Investors group. His book, "Avoiding Rookie Errors as a Left Field Investor," serves as a guide for newcomers.

Then, we have Kyle Kuderewski of Webstreet, who introduces the emerging field of digital real estate. With Webstreet, investors can dive into online businesses, benefiting from quarterly dividends and sale profits under experienced operators' management. Kyle stresses the importance of due diligence in this rapidly evolving sector.

Key Takeaways:

1. Real Estate Syndications Offer Diversification: Invest in various assets like multifamily, self-storage, and even Broadway shows through syndications.
2. Digital Real Estate: A New Asset Class: Invest passively in online businesses like websites and SaaS platforms through platforms like Webstreet.
3. Due Diligence is Key: For both real estate syndications and digital assets, research the operator's track record and investment strategy.

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Transcript

SPEAKER_02: This is your daily real estate syndication show. I'm your host, Whitney Sewell. Today, we've packed a number of shows together to give you some highlights. I know you're going to enjoy the show. Thank you for being with us today.

Jim : Steve, welcome to the show. Let's start out with who you are and how did you get to where you are today?

Steve Suh: Yeah, so I am a full-time ophthalmologist in Columbus, Ohio. I have been in practice for over 25 years. And along the way, I got frustrated with the stock market, so I started to invest in real estate after reading Rich Dad Poor Dad. My first investment in real estate was actually our office condo, which we built back in 2005. I got into some small residential real estate as well. However, I didn't feel like I was doing a great job as a landlord, even with property management, and had a lot of frustrations. So I ended up selling those as well, eventually. I learned about the world of syndications. So I am currently in over 50 syndications right now, all the way from self-storage facilities to multifamily, resort properties, ATMs, industrial triple net leases, car washes, and even a Broadway show. So there's a lot of things you could do with syndication investing.

Jim : Yeah, that's awesome. And just full disclosure, we started Left Field Investors together. And you were probably the first person that I met that was also in syndications. And I remember the first time we met, and you said, yes, I'm invested with this operator. And I'm actually also in this deal. And I was in the same deal with the same operator. And the sense of relief that I felt was just amazing, because I found somebody else who's doing the same thing. And and so can you talk about I think we should open up with this. Can you talk about the importance of a community in investing passively? Because that's why we put left field investors together. But I just remember kind of leaning on you because you were a little bit ahead of me in the journey and just the sense of relief that, OK, this isn't a scam. Someone else is doing it. This is legit. Can you talk about how community helps you as a passive investor?

Steve Suh: Absolutely. And I recall that conversation at the Starbucks very, very well, because you were the first person in the Columbus, Ohio area that I knew who was passive investing. I had been to some other meetings, however, I didn't know anybody in my hometown that was doing passive investing. So yeah, I think a community is extremely important, especially after having left-field investors is essentially, and maybe in different form, has been around for about four years now. It's been absolutely helpful for me. So my journey started in 2009 with syndication investing. I invested in oil and gas deals. I actually did five in a row with the same sponsor. I was getting some small returns with them. I thought, hey, this is really, really working and I'm not doing anything. So I thought this is the way I want to go because I'm a full-time physician. I don't have time to manage people or manage the manager and that kind of thing. So that's why I got frustrated with active investing. So I thought this was a great way to go. However, the problem with those first five oil and gas deals is It was essentially a Ponzi scheme and I ended up losing all my money in that other than whatever tax credits I got and that was very frustrating. So fast forward a few years, I went to some seminars and learned a little bit more about syndication and educated myself. I read some more, you know, read books and that's kind of when podcasts also came into my life as well and listened to a lot of syndication podcasts and real estate investing podcasts. And I still was not a very good syndication investor in my opinion because I was only with one syndicator at that time and I invested – I think I've invested maybe in five or six deals with this one syndicator back in the 2015, 2016 timeframe. And so that really was not a great deal either, because the syndicator was not a very strong sponsor. And I'm still in some of those deals, and I still have not gotten a lot of money from those deals. So at that time, this was before 2020, before we met, I didn't have anybody to bounce ideas off of. So I think a community is vital for your success in syndication investing. as a passive investor. You know, you and I like to say this is a team sport. I mean, you can flip houses on your own. You have your own crew to start doing that. You can do that on your own without having any people to bounce ideas off of. But with syndication investing, it's absolutely important to have a community where you can bounce ideas off of, you know, do you like this sponsor? Do you like this deal? Why or why not? So these are just absolutely vital, and it's going to help shorten your learning curve. And more importantly, it's going to save you a ton of money.

Jim : Yeah, and I want to back up a little bit. I do want to talk about the book. But before we get into that, you mentioned your first syndications were the oil and gas Ponzi scheme, right? And then the next ones you did didn't do great. They weren't Ponzi's, thank goodness, but they weren't great. So how did you get into it? You know, typically when someone invests in something and it's a Ponzi, they lose their money. They might be like, I'm done with syndications forever. So how did you get the courage to go back in and do it differently as you as you went through your journey in passive investing?

Steve Suh: That's an interesting question, because I was such a proponent of real estate investing, but I just didn't find my my avenue. And so I had some success on the active side. I had a single family home, a duplex and a fourplex. However, the single family home was the section 8 and I just the tenants were not the greatest and they would trash my place and so whatever money I gained from that, unfortunately, it would go back to rehabbing the house before the next tenant. So I didn't make very much money on that. And the fourplex, unfortunately, my landlord, I'm sorry, my property manager a drug dealer in one of the units, and that was not a good situation either. I had landlords who were around there that were complaining that he was having five-minute visitors at his house all day long. And then frankly, they felt unsafe for their, the tenants felt unsafe there. So, and I had a duplex in a college town where my son went to school and that actually did pretty well, but it was still a little bit of a hassle because we had to make sure it was rented out one and a half to two years before they actually moved in. So, and that was during COVID. And the problem with that was the cycle kind of got broken because of COVID. So people weren't sure if they're coming back to school, people weren't sure if they were going to do housing on campus or off campus. That kind of messed that up. But in the end, that actually did pretty well. But one out of three was not, in real estate, not batting too great. So to go back to your question about how did I get the courage to go back into syndication investing? Well, I knew that if I wanted to do what I wanted to do in terms of real estate investing, I think I had to be as hands-off as possible. And just by listening to podcasts and going to these seminars and such, I learned that passive investing was probably the best way for me as a full-time W-2 worker to do this. And even though my first foray was absolutely horrible, I lost all my money, my second foray was not great, but it kind of gave me a glimpse into what was possible. And then after we started Left Field Investors, I think I finally got the recipe down. However, there's still some deals I got into that were not great, and certainly we can talk about the lessons I've learned from those.

Jim : Yeah. And you know, that, that's the thing. Real estate seems like it, well, it is, I believe so much better than the other options, right? Stock market and, and things like that, but that doesn't mean it's a hundred percent success. And that brings us to your, your book, avoiding rookie errors as a left field investor, 20 lessons learned from 14 years of passive investing in private syndications. Why did you decide to write your book?

Steve Suh: Well, I, I think I learned a lot through investing in syndications and actively being a real estate investor as well. I've always enjoyed blogs, articles that talked about lessons learned because I think you can really learn a lot from your mistakes. And in my book, I'm an ophthalmologist, so I do eye surgery. And I start off with talking about how I learned so much more from one error or mistake that I did during surgery, unfortunately, and for that patient, I guess. But if you're a surgeon, you're going to have complications. Through that one mistake or complication, I've learned so much more than, say, 100 surgeries that went perfectly well. So even at our national meetings when we learn about cataract surgery or new things in cataract surgery, many of the talks were actually about how to avoid complications. And those talks are so helpful because I'll I'll be sitting there thinking, oh, there's something just happened, and I'll remember a lecture that I heard at a national meeting that, oh, that doctor, that surgeon did this maneuver, did this, and it works great. I mean, I didn't have to deal with that complication because of what I learned from other people's mistakes. And so I wanted to write this real estate book so that people can learn from my mistakes, because I lost a lot of money. And if people can not lose money, that's certainly a lot better than trying to learn the hard way through trial and error like I had.

Jim : Yeah, I completely agree with that. And, you know, I look at it as it's kind of a shortcut, right? So someone coming in can can learn from your mistakes and not make the same mistakes. But then on the other side, there's people that say, no, you don't want to have shortcuts in life, right, because you want to learn the lessons yourself. I kind of disagree with that. I think you do, too. That's why you wrote the book. So can you talk about why the shortcut is actually a positive thing? Right. It's it's getting you to where you want to go without having to take that loss. Right.

Steve Suh: Right. Yeah. You know, people have a finite amount of money. And certainly if you start losing that money, it takes a lot more to get that money back. So, yeah, you don't shortcut shortcuts are, you know, are great. I love hacks. I love all that kind of stuff. But, you know, sometimes it's not the best thing for everything. But when you're talking about your hard earned money, you absolutely want to be as safe as possible with that money. You want to protect that money. But you also want to not have to go through trial and error and say, OK, well, is this going to work or not? And then wait three or four years, and then you're hardly getting any returns. When you could have gone through, say, our forum and looked up that sponsor and said, oh, yeah, they're not doing a great job on these three or four deals, and so that's why I've stopped investing with them. So then you can actually learn from these. from these comments and from forums and virtually networking or in-person networking by community can really help you in that respect and so that you don't have to lose money. But yeah, in my opinion, real estate is all about doing shortcuts because you can actually learn a lot of information from people without having to go through it yourself. Just like I said with my cataract surgery experience, I've thank all those doctors who showed their mistakes live in the lectures, because I, along with many, many other ophthalmologists, have learned that you can not have that mistake because you can do another maneuver that can avoid that mistake.

Jim : Yeah, and maybe I should just start calling it hacks instead of shortcuts. I like that phrasing. Maybe that's more modern anyway, right? If listeners are interested in learning more about what you do, in buying the book or connecting with you, what's the best way to do that?

Steve Suh: Well, my email is probably the best way to get a hold of me. It's steve at leftfieldinvestors.com. Of course, we have our website, leftfieldinvestors.com, if you want to get a bunch of great free resources. And of course, we encourage you to join the infield where you can join our private forum where, frankly, that's I think where the most infielders would talk about the best benefit there. And you can buy the book either through a link on our website on leftfieldinvestors.com. under the book section, or you can just go directly to Amazon and just search my name or search avoiding rookie errors as a left field investor.

Jim : Kyle, welcome to the show. Let's start out with who you are and how did you get to where you are today?

Kyle Kuderewski: Hey, Jim, thanks for having me. Yeah. I've listened to the show for quite a while, so happy to be joining. My name's Kyle Kudereski. I'm the operations manager with Webstreet. I wish we can get into what we do, but personally, I'm, I'm like what I like to call an engineer turd investor. So I went to engineering school, did my master's in engineering, got into the corporate America world and eventually, you know, wanted to, to start to generate a passive income machine. Um, I got into real estate investing as well. I do some vacation rental. Yeah. I own a small vacation rental business. that I can run on the side. And then, yeah, I got into the online business world about three years ago. I was pretty fascinated by what online businesses and digital assets can offer. And so I've been building Webstreet ever since, allowing investors to passively invest in online businesses. So that's where I'm at. On the personal side, I love to do anything active, snowboarding, triathlons, just being outdoors, hiking, and just to enjoy life. So that's a little bit about me.

Jim : Well, thank you for that. I think we start out with, you know, Webstreet allows people to get into, I guess, digital real estate in the form of these websites, Amazon stores. Can you just tell us what that is? You know, digital real estate, talk about all of it, like just introduction, low level, because a lot of us don't really understand. I mean, we know what a website is. We know what an Amazon store is, but just kind of dig it out for us. What we're talking about here.

Kyle Kuderewski: Yeah, so digital real estate is the perfect way to put it. So online businesses, digital assets, any type of business that doesn't have a physical location. So if you think about, if you want to keep the analogy going and compare it to physical real estate, you might have multifamily, single family, vacation, commercial, different types of real estate. So in the online business world or digital real estate world, We have general websites, so content websites, top 10 sites, review blogs, that type of stuff. We have Amazon FBA, so sites that anytime you're on Amazon and they're fulfilling a product order for you. We have Kindle sites for if you're ordering books and things like that. SAS is a huge one for us, so software as a service. Any of these recurring softwares you use, Zoom is a huge example, but Slack, you know, on and on. Any of these things that you sign up for a subscription model and pay a recurring service. That's a SaaS, so that's a type of online asset we do. And then there's many others as well. There's apps, just apps on your phone, which can be a SaaS or just a standalone one-time purchase. Yeah, so there's many, many different models and we provide investors access to a lot of those asset classes.

Jim : And how do you provide access? Can you talk about that? You have people that go out and buy these businesses and then And then the investors would own a piece of that specific website or that specific Amazon store. Can you talk about what exactly are we buying?

Kyle Kuderewski: Yeah, yeah, great question. So in the past, there's several brokerages out there, Empire Flippers, Quiet Light, Flippa, many brokerages where people could go buy a website or any of those asset types of sites that I just talked about. They would have to run them, right? They would have to build a team. They would need the skill set to do it. And until recently, there was no way for people to passively invest and take part in the upside of online businesses. So we created Webstreet. where we pair investors with online business operators and some of what we like to say some of the best online business operators or portfolio managers out there. So we use that term kind of interchangeably, operators and portfolio managers. But we go out and find those operators, we vet them, we figure out their track record, and then we bring investors on board. So they invest, you know, whatever fund size, it's a syndication type model. So it's an SPV single fund and Investors invest. Those operators go out to those brokerages that I just discussed. They lay out their acquisition criteria ahead of time. So you know generally what you're investing in. You know what type of business you're going to invest in. You know if it's a million-dollar fund, two-million-dollar fund, et cetera. And then they go out and they use the investor money to purchase websites or apps or whatever those assets are. And a single fund can contain two, three, four different sites. And once they purchase those, it'd be just like purchasing an apartment complex or something like that. They start to either grow the websites, implement their growth strategies, bring their teams on board, and cash flow those websites. So that whole process takes six to nine months, from the time the money is raised to the time that they purchase these businesses and start to grow them. After that, the way our model works is we give quarterly dividends to the investors. So two-thirds of the profits every quarter get distributed back to investors, and one-third goes to Webstreet and the operators. They don't get a salary, so that's the only – the only way they make money and the only way we make money is if the, you know, investors make money and the businesses are growing and the cash flowing. So that's one huge part of these assets is You're not simply waiting on them to appreciate. They're already cash-flowing assets. And if they grow them, they appreciate. In the two to four-year range, they're going to sell those assets and will then distribute those profits on the sale as well. So a bit of a long-winded answer there, but I hope those analogies kind of clear it up.

Jim : Yeah, that helps for sure. So let's say one of these online business operators, they go out and they buy, for example, a website. So presumably that website has some content that's being generated by the current owner. Maybe it's a small, you know, like we talk in multifamily or self storage. It's a mom and pop operator. Right. And so. Who then do they hire those the people that had the website before to work for them or who's providing the content? Who's making sure that the website is still operating the same way it was before? Can you talk a little bit about those details?

Kyle Kuderewski: Yeah, that's a really good insight. And I hate giving this answer. The answer is it depends. Generally, that is the case. During the negotiations, they may say, okay, I want to keep either the owner or the owner's team on for three months, six months, a year or whatever to help that transition and continue to generate that content. Sometimes they'll hire them full-time. So they purchase them as an employee, I guess would be the best way to put it, when they purchase the business and they stay on full-time for however long. Sometimes they don't want any of that. Sometimes the operators, they already have their own writers in place, their own technical people on their team, and they just want to start fresh and implement their strategy. So it depends, but it is very common for there to be some overlap from the previous writers or technical people and that type of thing. And generally, depending on what the niche is, that's super important, right? Like if it's a jewelry website, they may have an expert in the jewelry field that you want to continue to write about on your site. maybe three months, maybe six months, maybe indefinitely. So the answer is it depends, but generally there is some overlap.

Jim : OK, and this is less real estate and more operating businesses and maybe maybe digital real estate because they are taking up a space on the Web. But how does this help? Like, you know, we're used to talking about real estate, actual, you know, real estate, multifamily and all that kind of stuff. So how does an investment like this help a passive investor in real estate diversify? Clearly, you're getting into something new. But how does how do you balance that out with with your other passive investments?

Kyle Kuderewski: Yeah. So, um, the key, you know, generally the key is diversification, right? So if you've already got a ton of exposure to real estate and you believe in the, you know, in the internet is only going to continue to grow. Um, and these models are only going to continue to grow as AI grows and that type of thing, then it's a really good way to get exposure. Now everybody has to decide their own, um, you know, their own risk profile. You want to understand what you're investing in. You know, if you believe that Amazon FBA is here to continue to grow, then you probably want to invest in that operator versus, you know, maybe a content or affiliate operator. Generally, we package these together in funds, and so you automatically get diversification across our different asset types. But you personally have to decide, like, am I 75% real estate, 25% online business, or, you know, whatever, 25% stock market, et cetera? But that's what we're really excited about is giving access to a brand new asset class that people didn't have access to. You know, there's other models out there that are similar where people can invest in art or wine or whiskey or, you know, collectibles, that type of thing. And we're just simply providing that access to the Internet, to online businesses in that same way. So we've been doing it for about two and a half, three years now. We've got about 40 million under management, 30 plus businesses under management and delivering really solid returns. Some of them have grown a lot. Some of them have declined and some of them have stayed steady. So you can find all that information on our website. We've got case studies and on and on. I know I definitely don't have time to go through all the funds today, but it's all on our site and we encourage you to go check it out.

Jim : OK, and then, you know, continuing on this, you know, compared to real estate, because we've got to compare it to something. What's the and I know this is going to be a very broad question, but if we're looking at the risk level and volatility of these web businesses compared to, you know, the standard real estate that we're talking about, you know, cell storage or multifamily, what's the is this more is this more risky? Is it less risky? Is it more volatile? Can you talk about that a little bit more in depth?

Kyle Kuderewski: Yeah, I mean, generally speaking, it's just Kyle's opinion, probably a little bit riskier than just a traditional single family home, right? Because while there's things in real estate that are out of your control, weather events or maintenance things and that type of what's going on in the community, there's similar things out of your control in the online business world. So Google updates, Amazon updates, updates to email clients, ad blockers, that type of stuff. But all that being said, the operators that we bring on have been through many, many of Google updates and many Amazon updates and many, you know, they've seen the Internet evolve and they adapt their strategies. So, when something changes, you know, it's not always the case that they can change and adapt, but generally speaking, that's what we're looking for, people who have done this time and time again and have a track record of being able to overcome those variables. So, that does make it a little bit riskier. I mean, the Internet changes faster, I would say, than real estate. But if you look at something like commercial real estate and the way COVID affected that, nobody could have predicted that as well. So it's kind of hard to quantify, but there's similar risks.

Jim : And so I'm a passive investor, right? Mostly in real estate, as we talked about. And when I'm trying to look at a new investment, I analyze the operator and and then I vet the deal. What are some things to look for when I'm deciding what online assets to purchase? I mean, I use. Websites I buy stuff on Amazon. I use zoom and some of these other things But that doesn't just just like you know when I started real estate I'd lived somewhere before but that doesn't qualify me as Someone who really can analyze the investment and determine whether it's something I want to get into so am I analyzing and vetting? Webstreet and you Kyle Yes. But then I also, what about the operator below you? So how does a passive investor kind of get their arms around this and figure out what am I looking at and how do I determine what assets I want?

Kyle Kuderewski: Yeah, that's an excellent, excellent way to think about it. So, you know, at the top level you are, you are trusting Webstreet, you're trusting our track record, you're trusting the way we do our due diligence on operators. And all of that information is readily available. Our team, the information about our team and how much online business experience we have, you can find all of that. But then if you take it a step lower, when you look at our fund pages, you're going to want to dig into each operator's track record. What are they looking to buy? How much are they looking to raise? We do operator interviews every time, so about 20 to 30 minutes, where you can hear it directly from them, what their growth strategies are. And then the other part that I would hit on is the way our model works. We want to bring back our operators over and over. So, like, they come up. We're actually the fund. We're opening January 2024 next week is. Uh, we're bringing back an operator for the 4th time, so he's got quite a track record. Investors want to continue to invest in them. And so if we're not going to bring back an operator that hasn't performed, so that's a pretty clear indication that we have trust in them. That this is not a guarantee, of course, but it's a pretty good indication, but kind of tying all that together. We generally don't recommend coming in and just picking 1 operator because it's kind of like throwing a dart at a dart board. I would diversify across several monetizations across several operators. And that's probably the best way to do it unless you have some really good knowledge or expertise on why you may want to get into a specific fund or not want to. So I hope that helps clear it up. There's definitely a trust level there, but. Like I said, you never want to just invest, this goes for real estate or anything, you never want to invest without understanding exactly what you're getting into, right?

Jim : Right. And talk more about the fund then. Is that is each fund a separate operator? And so I can look at that and say, OK, I know this operator generally buys websites and a few Amazon stores and this other operator does, you know, software as a service and maybe some some apps. And there's a there's a different fund for each. And yes, let's Let's forget about diversification just for a second. We're just talking about how do I decide, yes, I want to do this website thing and the metrics here are better and I have a better chance of making money and then compare it to the one that's doing a different fund that's services or software as a service. I think I asked three questions in there. I'm just trying to wrap my head around it a little bit.

Kyle Kuderewski: No, it's perfect. There's a point I need to hit on. So when we first started out, each fund was one specific operator, and each operator would go by two or three businesses, depending on their criteria. What we found is that our investors that were picking individual funds, their overall returns were generally much lower than those that were investing across all the funds in a round. So recently, at the end of 2023, we adjusted our model to where it's one single each time. Like right now, we're opening our seventh fund. that fund is an individual LLC with three different operators in that fund. So, if you want to invest in this round, you get exposure to all three of those operators, and each of those operators is going to go by, say, two to three businesses. So, you're getting access to all, let's just call it, nine businesses in that portfolio. Now, we know that's not everybody's favorite model. They may not like one of the operators in this fund, so maybe they want to sit this one out and wait for Fund 8 or Fund 9. But generally speaking, we think Actually, we know based on our data that this is providing better returns for investors, so that's why we've changed the model that way. So, it's still encouraged due diligence. Like, if you don't like – if you don't believe in Amazon FBA or a certain – you know, you don't want to get into SaaS, then sit the fund out and come back and look. You know, sign up for our platform. We'll update you. We're doing funds every quarter pretty much right now. So, does that give it – is that clear on how the structure is? It's one diversified fund with multiple offerings.

Jim : It's kind of like a blind fund, right? Again, comparing everything to real estate, because I'm not going to know exactly what assets are going in there. I'm going to kind of know the asset class, meaning, OK, this guy likes websites. This guy likes Amazon stores. So I know that, but I'm not going to know the details. So it's similar to a real estate fund. How would you compare this to like the fund to fund model in real estate syndications where somebody is raising capital? Can you kind of compare it to that and kind of Analyze which characters are which, I guess, is what I'm trying to say.

Kyle Kuderewski: Yeah, yeah. I'd say, I mean, you're spot on. It's very similar. And, you know, we definitely have, you know, we're always looking to line up incentives, right? So we've toyed with the model of trying to identify businesses first and then letting people invest. You know, I don't know that we – I don't say we would never do that, but there's a lot of reasons that we're not doing that currently. This fund-to-fund model, it allows us a lot of things. So, if we raise – our previous fund, we raised $6.3 million, okay, for four operators. So, they're out there making their acquisitions now. What's really nice about that is there's $6.4 million in cash ready to deploy. So, we can get these businesses at really, really competitive multiples compared to an individual out there. So, we can negotiate really well. The other thing is we have a lot more flexibility because it's on a $6 million fund. It's not 1.5, 1.5, 1.5, 1.5. We have some discretion on, okay, this operator found a great $2 million business or this operator found a great $500,000 business. So it gives us flexibility in both our acquisitions and negotiations. And then the last thing I should hit on there, because I said the operators don't have salaries, the operators actually put in 5% of their own money into every one of these funds. So each of their – however much they acquire, 5% on a $2 million acquisition, they put in $100,000 of their own money. So they really, really have skin in the game on the acquisitions that they're making. So very similar to the fund-to-fund models, and those are the reasons that we built it that way and the line incentives.

Jim : And the operators are coming to you because they can't cut a check for $2 million or they can't find their own investors to get to the $2 million. So they're willing to give up two thirds of the profit on these businesses to be able to, you know, essentially get their deals funded.

Kyle Kuderewski: Exactly. It's a way to level up. You know, they've all these operators have had very successful exits before, so they have, you know, they have funds, but maybe not enough to do a 2 or 3Million dollar business. And we only want to grow. We only want to do bigger and bigger acquisitions. The other part of it is one of the operators that I mentioned that's on my fourth fund with us, he previously did do his own fund. So, he got his own investors and he's just found that he would rather go through us and not deal with taxes and investor relations and distributions and all of that stuff. So, yeah, it's a model that we're very happy with right now. We'll continue to adjust based on returns and investor demand and operator demand, but that's where we're at right now. And I'm pretty happy with it.

Jim : Very interesting. Appreciate you. If listeners are interested in learning more about what you do, what's the best way they can connect with you and learn more about Webstreet?

Kyle Kuderewski: Certainly. So it's Webstreet.co, not dotcom.co. And my email, I'm very active on there, is Kyle at Webstreet.co. I'm also on LinkedIn, Kyle Kudereski. You'll have to look up the last name and the title here to spell it, but I'm Please feel free to reach out. I connect you with our investment advisors, see if it's a good fit. It's not a fit for everybody's portfolio, but we are excited to give access to people who want to diversify and learn more about the asset class. So please feel free to reach out and I look forward to connecting with you.

Jim : Awesome. Well, thank you, Kyle, for being on the show. We appreciate you.

Kyle Kuderewski: Awesome. Thanks, Jim.

Jim : Thank you for listening to the Real Estate Syndication Show. It has been a pleasure to be the guest host today. If you'd like more information about Leftfield Investors and how we educate limited partners, provide a network, and give access to deal flow, please visit leftfieldinvestors.com or reach out to me directly at jim at leftfieldinvestors.com. I hope you learned a lot from the show today. Please don't forget to like and subscribe and share the Real Estate Syndication Show with your friends so they can also build wealth in real estate. You can also go to lifebridgecapital.com and start investing today.