https://www.youtube.com/watch?v=gxKxeie5JFo

1 00:00:00.000 --\> 00:01:00.000 100 days ago i made an investment that
pays me 3 300 per day in profit off of a single deal that was struck and
i told you about this at the beginning of the deal um what was going to
happen and so i wanted to do this as kind of a part two um of what
actually happened in actuality for those of you who don't know me my
name is alex from ozio and acquisition.com uh it's a portfolio of
companies that's about 85 million a year i have absolutely nothing to
sell you the reason for this channel is because i know a lot of people
are broke and i don't want you to be one of them all right so one of the
things that i like a lot is hard money lending a big fan of it it's
private lending which is basically like you are the bank and the reason
i like this is because you can determine the deal structure which means
that you can create the upside and the downside and then it's up to the
other party of whether or not they want to accept that and that's
valuable because if you can control a lot of the variables and you can
you can mitigate downside risk which if you've heard any of my stuff the
ultra wealthy out there it's not about trying to hit their upside like
everybody who's poor buys lottery tickets because they only think about
upside but they don't think about downside everybody who's rich who
doesn't do that because they understand

2 00:01:00.000 --\> 00:02:00.000 downside risk and how getting rich is
about really just making fewer mistakes and letting time become an ally
rather than a liability using time as an asset rather than something
that is working against you what i'm going to do is i'm going to outline
the deal structure of what we agreed on um and then what happened and
then there was one really curious thing that happened that was actually
awesome and i think was probably the biggest takeaway from me and
hopefully for you in this process big picture here this was a two and a
half million dollar note all right so i wired two and a half million
dollars in cash to a buyer all right and the buyer went to buy a
building out of uh foreclosure all right so they had a 334 unit which if
you're like holy cow house of 334 unit building two and a half million
hence the reason i was happy to do the deal all right it was also in a
war zone like the police officers don't even go here um this was a deal
in memphis and so it's 334 unit building all right it was it was
basically condemned there's squatters drug dealers you know all sorts of
stuff right and so here here are the here are the risk factors right
which is what if

3 00:02:00.000 --\> 00:03:00.000 i don't get the money back right which
means that i would have a building and then how can i make sure that i
get the money back all right so the first layer of defense here is
guarantees all right so both of the buyers these two two people um
personally guaranteed the money all right and they had net worths in
excess of two and a half million all right so we had that going for us
times two next the building itself we have the value right which the
question is well if it was condemned and all that kind of stuff do we
know what the value is like is it really worth two and a half million
dollars would you ever be able to sell it good question so we had uh
three offers already on the building for between 5 million and 5.6
million so an offer is one thing right but is there another level we can
have there was actually somebody put earnest money down meaning that
they they had made the offer and it was accepted and they were going to
put money in the deal so there's earnest money of 300k so they had said
we want to buy it it was these guys the 5.6 guys right earnest money 300
000 in the deal saying that as soon as you guys can

4 00:03:00.000 --\> 00:04:00.000 transfer the title over to us then
great all right and the last thing was was to make sure that we were
actually in this sounds minor but this is how a lot of deals get messed
up that we were actually on the title right so that means that if for
some reason we do not uh we do not get repaid we are the first uh the
first you know the first people who have ownership or entitlement rather
you know titled uh uh to the property all right so that there's no uh
other liens against the property that we're the only ones um who are
going to be uh receiving the property if something went in default right
and so our cash was used to pay off the last person who had a lien on
the home uh on the homes of the building and then we took over that
position as preferred and so this was kind of the deal structure all
right now this is how we got paid all right so these are the payment
terms so it was four percent per month all right now four percent times
2.5 million if you're curious right dude to do is a hundred thousand
dollars per month all right so i was making a hundred thousand dollars
per month for the last three and a half months for them to hold this
money now after

5 00:04:00.000 --\> 00:05:00.000 the fourth month so for some reason
they hadn't done this deal in four months which it was supposed to be
done in 60 days which it wasn't so i'll talk about that in a second
right so if it was uh if it was done in uh if it took four plus months
the interest rate would double all right so then it would go to 200 000
per month all right because then it starts to reflect that there might
be more risk here right so i need to start getting compensated more for
this all right on top of that what we did was a two-month minimum carry
uh which basically just means that uh even if they do the deal in 20
seconds i still get two months of carry which means minimum of 200k i'm
gonna get back for just risking the two and a half million which means
i'm getting eight percent or whatever um no matter what just for doing
this deal so that's the minimum of 200k because there's a minimum two
month carry all right that's the key point here beyond that what
happened is after uh this deal ended up closing um here's what happened
so uh the individuals who did the deal they flew out to see us and have
a kind of like a celebratory dinner this was kind of interesting so
they're like hey your lawyer sent over the note um and it

6 00:05:00.000 --\> 00:06:00.000 looked a little light and i was like uh
what do you mean they were like well uh you know we've had the we've had
the property for a hundred plus days now right and the note said 275k
and i was like huh and they're like yeah i mean that wasn't what we
agreed on we agreed on paying you more than that and so this is so
here's what happened right so uh our lawyers messed up for lack of a
better term they just messed up when they sent the uh the the loan
invoice for repayment at the end of this and what was interesting is
that this individual because he is long-term minded as well and also a
height ultra high net worth individual and this is why i think this is
probably more valuable than the deal itself was like yeah my lawyer saw
it he was saying his lawyer saw it and said yeah let's just send the
money like and you know they made a mistake let's let's move on right
and save ourselves you know almost 100 grand which i'll show you in a
second what the actual amount was and he said ah man he's like now you
can't be my lawyer anymore and he was telling me this story over dinner
and it was so

7 00:06:00.000 --\> 00:07:00.000 funny because we both had this kind of
same so the more deals you do with someone there's a big five-letter
word that starts to occur which is trust right the more times you lend
someone money the more times they pay it back as agreed upon right and
especially if you have an instance where they have the opportunity to
screw you over where most people would especially if they think that
they that you'll that you won't find out which we might not have found
out but the thing is i might have also looked at these notes a while
later and been like like if i had free time and been like this is off
what is this right and so anyways he caught it his lawyer caught it his
lawyer said to go forward with it anyways he chose not to and to bring
it to our attention and so we obviously are not going to use our lawyer
anymore he's not going to use his lawyer anymore because our guys made a
stupid boneheaded mistake and that's what we pay them for is to not make
these mistakes and double check these things right and his made an
ethical error right so mine was an error on skill his was an error on
ethics and if you remember my how i pick mentors and vendors video i
talk about the three circles right you have the skill you

8 00:07:00.000 --\> 00:08:00.000 have the the ethical component then you
have the hard working component and so both these guys worked hard but
they didn't have this one of them didn't have the skill and the other
one didn't have the ethics so this is what ended up happening all right
so 275 was the deal instead uh we did the we had it was a hundred and
something days or whatever so we had 300k plus 33 33 33 per day um until
the deal was closed all right and so it ended up being like 350k or
something like that with decimals right that we got paid back plus the
2.5 million all right so we got to check back for 2.85 million and we
have trust which is the most valuable thing that you can have right and
so this is this is ultimately one of those currencies that people do not
understand who are new to business is that trust is the most valuable
thing i mean we were talking about this over dinner and he was like you
only get one name you know what i mean you only get one you only get one
name you only get one uh reputation see if i can not get the sign of my
eyes here you only get one and uh

9 00:08:00.000 --\> 00:09:00.000 you know we're obviously you know
hoping to do bigger and bigger deals with you guys is uh you know we
earn more and more trust and we can do you know 10 million deals 50
million deals um and we'd rather have partners that we know we can rely
on and so it goes both ways and so anywho uh this was a very valuable
experience for me in two ways one obviously because the the whole deal
worked out uh and for those of you who are like why don't you run a
mastermind it's like because i could just move the money and not do
anything and make almost 400 that is why i'm just being transparent with
you guys like that's why i don't sell anything on the channel that's why
the the the trainings we have on acquisition.com are free for all
entrepreneurs and the book is 99 cents you can get it on amazon because
i just want everyone to win so anyways this is the deal a lot of people
like no one taught me how to do this stuff so it was me just trying to
figure this out as i go um so hopefully you can think through some of
these variables if you ever get in that situation and then also um just
a side note here i do have to pay 50 in taxes on this and so that's why
you need for me i have to have really high returns on any kind of
private lending because uh the the i have to realize those gains right
and they're not

10 00:09:00.000 --\> 00:10:00.000 capital gains to regular income and so
uh when you have that i'm actually only making 175 after after taxes on
this deal which you know in terms of percentages on on on my original i
still want to loan that money out again you know again this year uh so
that i can still get at least you know 10 or 20 return on it that's the
big deal in terms of the money stuff uh the bigger deal was the trust um
and the value of having trusted partners uh because they are worth their
weight in gold and uh you know we should only be so lucky to have a
handful of people that you can trust throughout your business career and
uh you know my hope is that from this channel that you are one of them
in terms of uh in terms of yourself and then also maybe you know you
grow your business to three or five or ten million a year and then you
let us invest with you so we can help you grow out more so anyways uh
keep being awesome mostly nation love you if you enjoyed this video hit
the subscribe button if you didn't enjoy the video love you anyways and
i'll see you guys in the next vid keep being awesome lots of love bye
