TWO, Thirty Days, ONE discussed on Animal Spirits Podcast
Real estate deals refinancing blown. Payback's it's to scale not to do with software but the way the rest of the industry does it is with just a lot of people professionals and the other question about. How do you use speed if you've ever closed Or closer home. It is just absolutely the most inefficient old fashioned process must have been exacting process for last half century. And so that's the article in wall street journal about how we be out like. These big institutions is closed at thirty two million dollar transaction. Thirty days while i'm refinancing. I can't tell it's taken still not months. If because there's no systems integrations you have like a title company talking to a lender lender's talking to all these people interfacing amongst institutions and it breaks the efficiency once your digital stay digital. It's very efficient. That's why were end to end that. Vertical integration basically. Lets us have an efficiency and the speed There's just no people. Have you have any thoughts on title insurance. Yeah i can talk in chicago title about trying to transforming that process because it's also just crazy how inefficient lasers massive inefficiency through everything just questioned. Like what of the. I team wanna eat next. That's going to have to be some sort of fintech platform to fix this because it's not going to be from the traditional people who've been doing it this way forever. We're looking at a transaction to close at fifty million dollar apartment deal. You probably spend half a million dollars in just like frictional costs right lawyers million dollars lawyers and it's just like if you've closed one hundred of them you're like well what are we doing. These are all the same. Is it worse than a theory of guests freeze. Its crisis had been. Let me ask you this so you talk a lot about software and streamlining the efficiencies and stuff like that. But how exactly do you do that. Like what's being replaced and one question that have is you're buying all these properties. What sort of due diligence goes on. How do you know that you're not winning but paying too much. So that's the difference. The you push the repetitive boring stuff to the computer to the system. And you keep the insight. The actual like decision may has done by people so the idea that you figure out like some systematic insight with software. That repeats is not likely in real estate but we have people who go to the sites and walk around and stay there. I moved to charleston rally real estate show local and so the actual underwrite and understanding of the real estate and like the format. You want three bedrooms. Two bathrooms and two and a half baths. That's all combination of having the data at the end to make a decision for the data is not like you can automate that part of any really. I'd do. that really is actually a decade away. You had better data and system can suggest incites in terms of vetting projects and stuff you have actual local people. You have boots on the ground. That are doing their due diligence and saying no this is overpriced. This make sense. Yeah we have. I mean we just the actual underwrite requires really really scare people and then also when you get a hold of the asset. The dr horton. You'll be bought okay. We paid one and a half percent higher than the next bidder but will had three times the rent. Growth the normal. So how do we know that we knew that there are a lot wrinkles happening around this product and we had people who knew how to get in there. Replace the photos. Change the amenity fees. It's an activist operating business. It's a real hands on business layered with technology. So i assume that that means you guys have been growing not only in assets but in headcount in recent years as well. Oh yeah oh man. Probably higher hundred people in next twelve months while okay so that kind of brings me to the next thing when talking about so you just completed this as for the company which came straight from your investors on the platform. You called this internet public offering in so full disclosure. I took part in this. Because i think real estate is again like you is just this freight train that has left the station. How has this work for you. Because i think you've done it a few times. How does this work for you as a funding mechanism going straight to investors on your platform to invest in the actual company of fundraise itself as started fundraise because coming out of to designate became skeptical of sort of institutional capital and then raise money for the actual operating business institutions. Wouldn't re walking that talk and the basic premises. Private markets should price at a better basis a discount public markets. Because you grow your business private legal public you'll public because it's a premium you don't go public. The discount and so giving our investors access to that is like totally consistent with what we're about and then the customers way more aligned with our business than the venture guy or like the institutional investor. It's both a values mission driven part and then just i think it's consistent with our business model. What do you tell the people that are investing in this interim. Because i know you guys put out a lot of internal stuff where you're giving back on in your opening up the prospectus. What do you tell someone that they're getting when they're investing in your company specifically as a private enterprise. The goal rise were fintech company and we're growing pretty rapidly. Adventure guy was a large tamp. Large total just will market. Can we make real estate like investable security stock is. Can we make that happen. Can we own net channel. If we can do. I think we're really big business. And then our goal go. Public public is like a similar. Ownership is like an evergreen ownership.