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RealX Ventures | Luke Glass on Oil and Gas Startups OGS069


This is the oil and gas startups. Podcast where we showcase emerging technology in the stories of industry founders investors in leaders with your host Jay Corley and Colin Macleod. What is going on? Walk Asian. I know it's been another rough week for all of us. As a nation and as an industry oil is currently sitting around twenty one dollars a barrel and that is definitely affecting all of us. Unfortunately we're already seeing layoffs and furloughs by the tens of thousands and we know this is going to be a trying time for all of us so we're trying to pump out as much content as we can As well as a few new things that were going to try to put together to help you get back into jobs At least try to do our part If you WANNA stay up to date with everything that we have going on all the new content that is going to be coming out just go digital marketers dot com and sign up for the round of which is our weekly newsletter. This is just a recap of have gone on his lands in your inbox. Every week. At the end of the week You also probably noticed that. We did a complete redesign of the website. So we hope you guys enjoy that One last thing before we get into the show with all the major live events Being cancelled our podcast is really one of the remaining ways to get your company's message delivered to the industry. We know everyone is hurting. So we made the conscious decision to slash our pricing down significantly for the time being. So if you're interested just reach out Choose a message and we will get back with you and love you guys So this week said glass of real exit ventures Really interesting story of how him and his partner Met which was that was probably one of the best ways we've heard there And how he parleyed his experience from the realist industry into relax so enjoy what is going on while his welcome back to another episode was up calling him in just a little background noise from the Am radio. I don't know if we talked about it in previous episodes or not but just in case we have and we moved to this new studio. It's fourteen floors up and it's a two blocks away from her radio station in our headphones. The exelon cables and pick up the the radio station. So we got a little bit of Jazz playing in the background are headphones. So just keep it. Keep it entertaining for us. I guess let's just roll with it so we got today. Luke with real ventures. It's going on Luke doing well. I liked little extra challenge of having to talk to the jazz. Yeah I just want to say luksa trooper you know. He had to sit here for about twenty minutes while we try to get set up work through this radio station issue. And also we've been having some issues with our microphones lately so if you notice some of the previous episodes the audio quality probably wasn't as good as it has been Jacobite. Look we got. We got fancy. We'd try to switch from our microphones to some headset by John. Madden over here. Within a phone broadcasting head was really comfortable because he could sit back. Relax in the audio quality. Wasn't turn out good so we're trying to get set back with our whole microphone uncomfortable for you guys. Yeah but this show is GonNa send on sacrificing my comfort. How much I CARE? So Luke appreciate you coming on the show today. Man Appreciate you. Having patients with US getting set up so tell us a little bit about relax ventures and guys do yeah so real xs and exchange to buy sell and lease property rights so when I told my grandmother that she said what the hell is property rights so property rights everything from leasing your surface rights for Solar Wind Timber Cellphone Towers Agriculture and leasing or selling your subsurface acres for oil and gas minerals etc So about about a year ago I was talking to a guy in the title. Business Out of Morgantown West Virginia. And he said Luke you know look the way in the way assets transact and oil and gas a huge marker that huge dollars. There's really a lot of opaqueness and the data Really driven. It's really paper driven. There just has to be a better way to transact assets in the oil and gas base and we really expanded that say well how to landowners in general lease their surface rights for wind and solar and other types of energy We did some diligence and talk with some of the big renewables companies and they literally started their their paragraph with. We send out postcards that's where they start to find landowners that are willing to leave their property generate energy or building materials communications infrastructure. Sort thesis on Day. One was there simply had to be a better way so we built relaxed with the idea of being exchanged to buy sell and lease property rights in one spot. So they're sending out mailers right. Now what do they call those in in real estate or those yellow yellow letters? Or something like that. There was some term for some type of term. But it's Very Archaic Pink Though Right Bank of the yellow color color for sure that was. You're begging Oh that's a great question. Yes my first company actually aggregated residential real estate data. Okay and so we aggregated data from about sixty thousand real estate brokers nationwide we powered Zillow Trulia and Fannie Mae about two hundred other companies in that space Eventually sold that company to realtor DOT COM and. My goal was to stay there for six months. You raised your baby. You Got Your Company to Assemble Position. And you're like now it's time for me to go to another one and I stayed eight years so it's kind of how it goes. Sometimes a realtor dot com for eight years. It was I was a little bit. That's really really interesting. So what what was the technology? What did you guys actually do? Yes we aggregated residential real estate data. So they're like eight hundred Melissa's around the country store residential real estate data. None of them had the same standards of them. Have the same data. Okay so let's let's break it down a little bit like us for yes he yeah Houston. Mls Right and then you go out to DFW or land or anywhere and they have their own molest system but none of them are standardized in terms of the data so you guys were aggregating that into one central platform. That's right and we gave brokers dashboard control where they sent their data so they could say yes. Or No to distribute my data to zillow. Yes or no to my son did a truly etc. We've got two hundred fifty companies so really became a listing syndication business listing distribution business and residential real estate. So we were moving. Most of the data in the United States was going through our company. So how did you get into that? We'll give you the idea. Yeah so it's it's most people in real estate didn't choose real. Estate chose them so. I was an investment banker actually in out of Boston and I searched startups in West Virginia. Because that's where I'd grown up and spent most of my childhood and there was only one so I send my resume and they happen to be aggregating data and residential real estate. So That's interesting. Yeah it would not just think of West Virginia popping place for startups at all. So yeah imagine than we had one and it's interesting that it happened to be that one explains why he was asking before we started recording. You know what is digital wildcatters? He's looking for comparables and the residential real estate space. Now it's making sense by while you went down that route so so you guys built this up. You sold it to Realtor DOT COM. What year was this? One Thousand Ten two thousand and ten. Okay cool so a decade ago. What was what was your move after there. So you were there for eight years and then I'm sure you started getting rich to build something else. Who's out kind of? What led you to get into real legs or how did you? How did you make that transition from relative to where you are today? Yes so you know. I grew up in a family business. I got my degree in entrepreneurship. Did two years of banking and then right back to a startup Kind of our startup became a turnaround. So I kinda counted both a little bit and so while I was so you went into banking after realtor DOT COM. Yeah Banking. Was I right out of school? Oh banking okay. Sorry I must is like man. That's gotta be. The pits go from building. This company selling go into banking way. That's got to take a step backwards much of investment makers of this. They agree with me. You can't learn more at a two year period about markets price. Yeah absolutely it's a long. It's a hard lifestyle for two years. Yeah so yes no at realtor DOT com. You know kind of break it into thirds the first couple years the parent company left us alone. Still had my own sales team own technology team so as as if still running my startup without the pressures of making payroll and all those kind of start up problems. The second phase really allowed me to do a lot more with trying to create some. Jv's in the industry as it was a new challenge went out and did a lot more across the realtor. Dot Com business. And for the last four years I ended up on the executive team at REALTOR DOT COM. While we're a public company which was pretty cool. I was still in my mid thirties to do that. Was running the relationship with the National Association of Realtors all of our large brokers around the country and then newscorp ended up buying realtor DOT COM. Okay what exactly is real alternative Dot Com? What do they do? And it's a real dot com's a website where you can go and search for homes for sale. Okay and contact realtors okay. In order to inquire about those homes awesome realtor calms analogous to Zillow and Trulia. Gotcha Gotcha longer. So you're on the executive team while they republic sure. That's you know that's fine. I don't know if I ever have any desire to be on. An executive team of public companies seems like a pretty stressful lifestyle. Look how how how. How is that? It was a lot of travel a lot of expectations right. You're always trying to hit the numbers. I was only on the executive team for about four months before newscorp acquired it so it was very short stint as an executive at a public company and News Corp bought it. Which is the Murdoch family of Companies Barons Marketwatch Wall Street Journal They asked me to run the entire software division so that was about two hundred fifty people. There were primarily on the West Coast Vancouver Northern California so I moved from Morgantown West Virginia to Pittsburgh so that could fly to the west coast more often. I told him look. I'm not a northern California guy. It's just not going to wear. It's a lot easier to catch a flight out of Pittsburgh car. Yes mortgage is not a hub if you can imagine. I actually spent a lot of time in West Virginia and Ohio. In the oilfield up there. So it's a great great place up there. It's beautiful but yeah I mean it's pretty rural and remote so Pittsburgh's a great place to I love Pittsburgh. Yeah it's been great. We really loved it have Three kids my wife. We've been there four years and really enjoy it but you know that that thing inside you that says you know there's something else you got you gotta do right and so going and doing another startup and starting from scratch again was kind of always in there and it's scary and it doesn't feel safe and it's definitely not easy but it's a thing you can't not do. You just got a masochist too. It's like yeah you know build things rantings got US SWEET. Gig But let's give it all up and go build something from scratch really WanNa wake up and get punched in the face every so you leave When you Lee Realtor Dot Com was chosen eighteen. Yeah end of two thousand eighteen thrown over so twenty eighteen. And then you're in real estate. How do you make the transition into oil and gas unpack that for a little bit? Yeah so I looked at a bunch of different industries commercial real estate To be honest with you. I couldn't envision myself go to another real residential real estate conference going for fifteen years in a row to every major conference in the country and I thought Gosh. Is there a way out there to take my existing experience with what I've done and take it to another vertical where I can learn and grow and do more things so it looked at commercial real estate? I looked at virtual reality and health. Care which is far away from residential real estate could get selling to hospitals and things. I almost did that one But it didn't work out but looked at about twenty different companies across the space and when Justin my co founder. Who'S THE CO founder of? Relax called me and said you know. Hey this market is big. And Opaque and the data's fragmented people processes like my startup spidey sense went off like it's gotta be something out there that does this. There's got to be some mechanism that this trading platform for these types of assets and I looked there was some very localized competitors. That did it very locally and there are some very vertical companies that focused in verticals but there was no one was aggregating property rights across the United States. So you know I love markets that have fifty billion plus dollars transactions annually. Go Round I think. Landowners were largely unserved in the process. That it really know what they were doing and it kind of hearkens back to a story. We had a family farm about one hundred acres northern West Virginia and my parents sold the farm and didn't really know anything about oil and gas rights. Their realtor didn't know anything about oil and gas rights. No it evaluate no way to list it no way to market it to anybody and two years later. The family that bought the farm got an offer for just the gas rates the same price. They sold the whole farm for so you know my dad kind of my mother-in-law on two x amount of value. Yeah so that stories always stuck with me. There was nothing for them to understand the value there. The hand yeah and no way to market. They didn't know what a good deal was a bad deal. And so just lack of information yeah lack of education And so we really set out about saying hey if we can bring some transparency in quantity to that marketplace. Doesn't it make it better for everyone in the end? Yeah I was this tool for either. Npr's Ermanno aggregate. Here's what refunds or anything variety but it's also for the mineral owners right so that's that's kind of unique so I think what's really we've found is that you know as we've started out there's really three main places where you go and get content the first direct to the ENP's in the middle investors. Say Give us your non-core assets that stuff. That's in the corner that you you're not using or you know there's Lisa's expired over the next couple of years and we'll try to find ways to monetize it. The mineral investors as their you know closing one fund raising the next fund in fact some of them are investors just put all their assets on it because their mindset is well. Everything's always kind of for sale. Right forget the right offer a moon to sell at any price. Then we go direct to landowners right. So these are the actual mineral owners whether they're currently producing assets or they have opened acreage. That's on leased We primarily go to them through a network of realtors so we're now signing up brokerages around the country saying you already live in your communities you've already built trust in your communities you already know all the major landowners in your area go out and talk to them about representing their property rights and relax. Now you have the ability to say I can help you list all of your property. Its surface and subsurface and not offer comes in. You're under no compunction to sell you don't have to sell your property rights but you'll get offers worst case scenario you'll know what your land is worth. Unit which are mineral rights are worth. You know what you're surface acres are worth and you can turn down offers For the next ten years But you'll at least know what you're getting the marketplace and so I think somebody of my question was going to be until you got to. The realtor part was how do you? How are you overcoming the cultural barrier of most mineral owners? Well most kind of at the tail end of their life for the most part from my understanding of the demographics But now that those are being passed down. So I think it's becoming easier as time goes along traditionally. These guys are being sent. Mail your of Miller's because it's hard to target them via phone number it's hard to target them via facebook in your face and we decided early on that I. The capital required to go. Direct landowners was far too high for a startup like ours. We didn't have the capital to go. Direct landowner second. We also didn't think that picking up the phone and saying hi. This is luke from Rolex was ever going to work nor were postcards or mailers facebook ads. You're just not going to build trust that way. So we needed to find someone who has already trusted in the community who's already kind of well-versed and transacting real estate and is built that relationship so that landowner can now say hey. I know my realtor from Coldwell banker. I know that they can represent my property rights. And they're not gonNA sell me down the river and hey the worst case scenario is there's no fees to register The only time anyone gets paid if I do a deal. And there's a few percentage points pay to the realtor into relax so we really try to overcome those objections. The hey this is a place where we vet all the buyers before they come in so anyone that tries to set up an account and relax with the g mail address usually gets denied. You need to be a real company. You have to show you buying history you have to show you have assets. Um that you actually are working then. We give you access to the platform. So there's I shared due diligence on boarding process for buyers on there. So that your your make sure you only have high quality buyers on the on the platform. That's right we want rid of those Those flippers and middlemen. They kind of take advantage of some of the situations and information. Asymmetries out there So at the end of the day we really want those landowners when they get that phone call from from buyers to say hey my properties on relax go make offer right now and I'll see it. They can put a sign at the end of the driveway. Instead of saying no land men no solicitation it can say my property is unreal X. Make me an offer to the people that are looking for it so I think it really just tries to bring we try to bring that landon or some ease and knowledge that hey there's now a transparent exchange yours can get offers sent directly to you and he's from legitimate companies and your real estate agents can help represent you in that process. So how does the process work if you're landowner or if you're a mental loner and you want to sell your property you just create account on relects dot com or is it dot com or dot? I'LL RELAX DOT TORONTO. Okay so relaxed. I Oh and then you know what? What's the process to list your property? I mean his it a cookie cutter application that. You're filling out a wizard so you can only list your property through a real estate professional so individual owners can't come to us directly. Okay you need to go through a licensed real estate professional The laws across all the states are changing and continuing to change. When you transact real property and take points off of deal you need to be a licensed real estate brokerage or belong to a brokerage so I if Atlanta and comes directly we connect them with a real estate professional almost immediately and that real estate professional collect the data just like they would for a residential real estate listing. There's a walk through all the top line information but the real critical part is what property rights are you willing to sell or lease so oil and gas. We have people say absolutely not right. No solar absolutely yes pipelines. No transmission lines yes agriculture. No and they go through and create their custom kind of profile for what property rights are willing to sell and also that fiduciary responsibilities now with a real estate agent and the homeowner so we don't represent the buyer nor do we represent the seller. And we think that the real distinctive piece of our model. Which is we just want to be the technology in the middle the furnishes information back and forth between the parties and makes it easy to transact but we know actually represent the salaries lots about ask because we are talking on your laws. You know you have all your different blue sky laws for each individual state and you guys. I'm assuming since you're just the technology do you have to offer? I mean are you a broker dealer. You don't have to operate under those censure just technology right correct. Yeah we We ourselves just like you know. Look where a system where you can search for information you can find information you can communicate back and forth but the offers that you're making the terms under which you're offering those between the buyer and the seller we have no control over any of that got you and then you guys are just taking a transaction as a flat fee or is it is it based on you know the mount transaction it is based on the amount of the transaction so it's low single digit points on either side of the transaction so we think the value proposition that we bring to buyers is one place to list all of your property rights and we can do it for as cheap as almost anyone out there can do it and on the buy side. It's about bringing all the data to one spot so now we have buyers that want to come and say hey if I want to look at land. That's you know put on by. Emp's been put on by mineral investors been put on by individual landowners. There's a whole third bucket. We haven't talked about yet but in the churches foundations states bank trust departments all these kind of middle tier companies. That control a lot of acreage. Our goal is to have that data in one spot to the buyers can come in and we just know the company. Last week they have seventy million dollars spend. They've already raised the capital the ready to go but they need a way to spend it quickly. Get into apply the capital quickly. Yeah look if you had assets in your system. Today we want to buy certain types of producing assets with certain decline curve characteristics. We WanNA exclude these three operators. Because we don't like them And we would like to make an offer to all of them right now You know I think we're years away from that but I think that's the big dream which is someone can come in with seventy five million one hundred million a couple hundred million dollars make an offer through the system just like you would the New York Stock Exchange and we'd be able to clear those trades with hundreds or thousands of different sellers potentially depending on the size of it. How do you overcome obviously win anytime in creating a marketplace? It's chicken and the egg. GotTa have both sides. You guys kind of tackled on boarding Nedeli mineral owners but also buyers. Yes so this is the exact same problem I had my last business I needed listings my platform in order to sign a places that wanted to send them so as I got the first couple listings than I could get zillow. Once I got zillow it was a lot easier to get more brokers to give me listings and then once I got we're listings. I could get Fannie Mae right and this ratcheting approach so almost every network has this issue. Which is you gotTa get both sides working in tandem. You can't have one or all of the other so we went out and started making this pitch about a year ago Two big companies. We have six million gross mineral acres on the system today acres going to start in Pennsylvania and go down through Appalachia into the Gulf coast. East Texas up into Oklahoma Arkansas We were able to go out into the I heard was. Does the pitch work. Do People want to list their assets on the exchange and I think we've over that hurdle pretty quickly and convinced ourselves absolutely. We launched the marketplace in October. So that was the first time that we can start on boarding buyers so on boarded our first ten or fifteen buyers and those first and ten or fifteen were a grind right. We met with hundreds of companies. We were in Houston every week. I ten or fifteen or multiply by ten right out of that. It's all about chasing the. I learned that a long time ago. Which is you know. Hey you convince the maybes after you get the yeses and then the nose you wait clear to the end and they'll fracture and some of them will be late. Adopters join be chased those yeses so we chased yes as all around Houston and got the first ten or fifteen on the site and then we kind of said. Hey look what better opportunity to meet. Hundreds of companies one spot and a couple of weeks back and we're now have close to two hundred companies on the platform Those are all primarily buyers but some of them are also sellers so some of the companies come on both buyers and sellers simultaneously. I'm but the majority of those are now buyers so we've got started interrupt you but the buyers I mean who who makes up the buyers are these other. Emp's looking to buy. I mean he's other. Several different groups are types of classifications but primarily. Now you know. What are you saying? The buyers it's primarily the mineral investors on looking by producing assets. I mean that's the number one thing happening sites as we track search behavior. We track information requests when people ask for a little bit more data on specific tracks. The first couple million dollars worth of offers. I've already come through the system. So we've gotten over this hurdle of will someone click a button and offer six or seven figures for tracts of land that they've never had some go out to the courthouse never knocked on the door and we've proven they'll do that so so we've got those first guys on the system that are really kind of giving us more and more defined criteria so the number thing we're working on right now as our search criteria so people can narrow down assets further we? I is on the system was more of an ENP mindset which they're focused on this county. They're focused on this area. And so everything was more geographic. Search like you think about residential real estate or finding with our mineral investors. It's more about this type of producing asset. I don't care where it's at I'm looking for these types of characteristics interesting and I'll make offers a cost them. It's interesting when you look at the primary buyers. Being mineral mineral funds because traditionally the only way that these guys get competitive edge and their businesses to be able to find. You know who can get a deal fastest who can do the due diligence. You know how however but now that you go to a platform. It's like we're giving you easy. Access to these deals. Click a button and invest millions of dollars but at the same time here losing an edge. There is no edge in the market right so it was the what is the mineral like you guys take off and scale. What does the mineral fun model even look like moving forward because they coincide like all the guys that we know? It's is beating down doors. It's an army of people making calls and sending flyers we've got thirty interns in the boiler room calling you know. Jimmy out in out in midland trying to get as mineral rights of So I still think the individual landowners right. We're going to come onto the system either. Lisa's expired or you know. They currently have a lease. We still think there's a huge marketplace out there for these investors that look. They're still going to be able to do their business. Just they're gonNA be able to do it without the cost up front of trying to find individual landowners through calling campaigns interns Going out and doing that type of work we think we can. Dramatically lower their costs and that side. So we have no pushback From that side of the marketplace on saying Hey I think you've seen this happen every other vertical right commercials date vacation rentals residential real estate. The data's just become more transparent and And then it's about the best companies will win. I think what happens? Typically in these types of scenarios commercial real estate I mean there's several platforms right and several different exchanges and there's clear leaders in those spots to so it's whoever builds the best platform has the best deal flow best workflows technology that they win right. Yeah so we're really focused on that upfront connection right finding the property you want whether you're solar developer timber company or a or an oil and gas company We find the right lane for you and then all that stuff on the back end. We automate the full transaction. At that point so all the negotiation happens through the platform electronically all the documents are executed via Docu sign. We have a network of ATTORNEYS ENTITLED COMPANIES. That do all of the closing for you escrow deed parabola filing so literally were trying to make it that back part the easy button if you will on the transaction and we did this in residential real estate over the last decade kind of going from paper to paperless and I really think that there's a lot of room in oil gas say hey once I find my asset. It's also easy to close. I think they really come to find the lander need but they stay because it's really easy on the releasing. Yeah what do you I mean? We've we've focused on the oil and gas conversation but you know you mentioned timber in these other commodities. Are you guys? I mean your exchange I assume is pretty agnostic to the type of land or or you know the commodities that it serves so do you guys. I mean as well and gas your primary driver right now. Or He's seen a lot of activity in other different verticals. Yeah so we're focused on gas primarily over the last twelve months getting acreage on the system on boarding the buyers. But what we're finding is. There's a ton of crossover. So we had our first oil and Gas Company lists seventy five hundred surface acres on the site service acres that they owned they got through some transaction or they got them through their deals. They did in the past. They listed and said we're willing to do solar wind or hunting and fishing licenses. Those were the three property rights that they were willing to lease on their surface so we had our first solar developer. Come in and review those acres. Some of 'em in Pennsylvania and so we're seeing that crossover which is you have acres but you also have surfaced acres that you're willing to do some of the big companies that we work with have tons of surface acres that they're saying. Gosh yeah we need to do timber and cellular and solar and wind. We have to find a way to monetize acres that we have here. They extract some value out of surface acres. Yeah there's a lot of crossover and so what we're doing on boarding solar timber and cellular or next three primary verticals. We already have had discussions with the biggest companies in each of those spaces. Have them in the system? Kind of early on But we're kind of you know going in mass toil on gas I make sense. So you're co-founder what did you say? His name was Justin Buyers Justin so justin when he'd approach you he kind of told you about the gas industry was he from oil and gas originally or you know how was familiar with. Yeah so he spent ten years in the title and abstract business. Okay so he and his team are. Kinda like the data experts. So what anyone says. Gosh how do you do that? It's like fractional ownership. And you have to really do a lot of research and I don't think there's any better team than the one. Justin has kind of do that. Onboard data quickly be able to go through and cleanse it. And do it so you know. I'm only nine months into oil and gas so when I listen to. You guys podcast. I write down words every time that I don't know what they just coming up to speed right and trying to figure out Nana versus all this other stuff. Yeah how did you guys get linked up because this old buddies or a great story so we shared a babysitter? We were coming home from vacation and the babysitter was in the car with US and said Hey I've I've got a call this other little six year old. Wish him happy birthday so while she's singing happy birthday to a six year old and the phone. The Dad yells. Hey Luke didn't you build something on the Internet once and that was the start of the conversation so that's literally where it started about two weeks later and he walked me through the business and all the inefficiencies that he saw on it and from there it just kind of grew from an idea to To some groups. That's too funny. It's probably one of the best founder meeting stories that we've heard on this podcast so far. Yeah I mean you can just sorta leaderboard for leaderboard for various founder. Founder's founder story. Yeah I like it no shadow. I mean people like you know what if you would've just let the babysitter get off the phone. And you know. He would've just randomly taking taking his shot like that. No none of this would've happened her. You know come come to be right so you know I tell people that all the time saying you never know what's GonNa come out of a conversation or talking to someone so you know. I love to hear stories like that but I tell you that I went home and told me I looked at all these different businesses right all these different companies and come into my wife like these guys are boring. I've just these guys are just before I came home after meeting with Justin. The first time I said well if nothing else we were going to have a ton of fun right and I think the one story that really typifies that was you. Were on a business trip. Rodman some diligence on the business before we got started. Justin sees a piece of art work on the wall. Kind of an electric artwork. He goes to the while. We're waiting for Uber. Asked the manager at the front desk. Who DID IT GETS? The guy's phone number. 'cause the Guy Orders the artwork for his restaurant back in Morgantown all before we got in our Uber. And I'm like this guy. That does a ordered. This aren't work before going on the show. Yeah he's A. He's an interesting guy. Did you guys did you guys bootstrap this you raise money in the early stages because I know you guys have a team. Now he's talking with one of your guys who wanted to introduce us to begin with. And where are you guys based? Yeah so we have. We have two offices about an hour. Apart from each other one in Pittsburgh Pennsylvania where are engineers and product managers with me and then we have an office in Morgantown West Virginia with Justin our? Coo was there along with our operations kind of finance staff there as well. So we're based out of Morgantown Just funded the entire company ourselves the first twelve months. Oh we We kind of took all of our all of our savings and kind of invested in the company. Put your money where your mouth is man. That's right your shoes. Love that though you're all in yes we've put. We've put a significant amount of money in the two of us. We really believe in this product and we really believe in that. But I think it's inevitable that these assets are going to check on an exchange at this point is just about how long how big and would who's going to win the majority of the market. It just seems implausible to me that we're going to continue doing it the way we've doing it today for the next twenty years just can't happen for you guys. Jake and I were up in Pittsburgh sometime. Think December two thousand eighteen swale back anyways. We're talking Talking with a couple of guys up there are some resources and Ekiti. And we're talking about all the land Technology around land title minerals. They made it sound like. I don't want to sound stupid talking about this. But they made it sound like you know. Land and title up in Pennsylvania is ten times harder than it is down here in Texas do APP. Have you seen anything along those lines? I mean is it more complicated for you? Guys to list a mineral assets up in the northeast than it is done here in Texas. I'm not the expert in this space but I think what Justin would tell you is it. Takes a specific skill set to do Appalachia booth West Virginia Pennsylvania Because of the when you look at the shape files right. There's islands in the middle. That aren't part of the tract. Very Nice squares that you see in other parts of the country so I think it does take a unique skill set. I think our one of our advantages is that you know Justin's been in the business for ten years in that marketplace so it gives us a real advantage understanding the landscape understanding the landowners understanding where the data's stored and how to get to it. So I think we're probably the best position company in Appalachia to do that kind of work and make sure that the data's accurate on weighing in on that nowhere you guys seeing you know geographically whereas the bulk of the deal flow coming from. I mean are you guys you know since you're Senate up there. Is that where you're seeing a lot of your deals or you guys doing a lot of stuff down in Texas right now with Imani activity you know wills kind of I think a lot of people will probably trying to sell off assets right now face so yes. I think what we're able to do the cool thing about the system. Israel look at search behavior not only info requests and offers that are being made which are higher indications of interest but rebel to see traffic and so really southeast Oklahoma. Yeah West Virginia kind of western border. Closer to Ohio people off of the scoop stat western Pennsylvania as well so what we ended up doing is creating target areas thing. Hey We know this is where our audience in general is interested so then we try to target brokers and realtors and those market saying. Hey if you can go out. And find producing assets with landowners that are willing to sell. These are going to be the types of assets that you can transact easiest same thing with our solar developers. We go on say. Tell me where you're interested. And then we'll try to target our efforts and our realtor outreach efforts to landowners so we can try to get you the right assets in the right markets there. Any kind of Are you guys building in any kind of analytics? For example automatically kind of think with realtor dot com zillow or anything like that. You're able to see okay. Here's my house. But here's all the every other house in the world and I can see exact were. What are the comparables for that? You guys also building that in and the mineral space so that mineral owners now know here's approximately what should be valued at or is that still kind of a mystery. Yeah look I don't think we have enough data today to speak to it There's lots of comes out there. The devaluation work. And I think what they'll tell you know two parcels of the same even when they're in the same geography and I've met with a lot of companies on this base and I said well don't don't you want to create the estimate for these properties and I think our perspective is our buyers. Haven't asked us for that right when we said Hey. Do you want us to give you a suggestion of value? Do you want us to get you know integrate third party data absolutely not? I'm Never GonNa Look Utah Me. It's worth I'm always going to do my own work with my own systems my own technology so I think on that side of our buyers have not asked for it. I think on the sell side individual landowner would love to have some knowledge baseline right. It would love to be able to give them an aggregate and say in Tyler County West Virginia producing assets in this X. Thousand dollar per acre type range just to give them a feeling of what their value might be but we don't be too prescriptive because look. I think that's what our whole system is built on the idea of demand meeting supply. And that's how the market defined. Let's sing even when you look at. Zillow hens estimate I mean look how much more data residential homes have than these tracts of land. And you're going to get there too. Well Yeah but even then like all I see real estate agencies. Just Talk Shit about people that say. Oh Meigs estimate says. My house is worth this. So you know sounds like real estate agents near real estate professionals. Don't even put a lot of weight into the Zillow's algorithms when you have so much data and so much ability to run analytics I would trust. I would trust it so I think I think that is Dan protecting their jobs because they have the same thing when I bought a car. I'm like six months ago and the gas like nobody trusts Kelley blue book anymore. And like what are you talking about? Kelley blue standard for like thirty years. These guys WANNA switch chapelle. Let me give me my money. Man I think these these data work really well when the When the inventory homogeneous when those together when the acreage is about the same like they work really well and I think some of the big companies like invitation homes and others who bought millions of homes across America at this point could get a pretty good analogy when they're in a development. Every House sells for two twenty two to twenty eight. The Algorithm is GonNa be really good at telling you what the price is What I have found my short tenure in oil and gas as there is no prescribed formula. For how you do this How how chew I? estimates value versus the Q. Engineering guys versus another third party or the Investment Bank. Guys that we've met with the just doesn't seem to be like a prescribed for consensus consensus minerals though industry-wide that's right and so you know my idea around liquidity and networks is once you get enough liquidity in the marketplace. There won't be me screaming deals. You won't have to overpay either start trading and a tighter range which I think is predictability. I think that's what the industry is really looking for now. Looking for efficiencies bricked ability. I think we would have done this during the big run up. No one was looking for efficiencies. No one was looking for easier ways to transact either one so it was kind of a heyday but now every company we talked he was looking for efficiencies. How can I do this? The lowest cost and make sure that we're doing it in in the best way possible to reach the broadest audience possible so I think some of the market namic while they work against us a little bit with the buyer community. They're working for us on the size age. Yeah just we find better ways to transact this stuff you walk around the nape floor and you still have the those booths with the posters up in the back. I look on. There's gotta be a better way. There's some peace nate. They won't be around much longer. I you know I think our media has just has to be open to US anyways better way to do this and get access to the audience audience and look. I think it will open up more buyers. I think the more liquid we can make this market the more data that you can show so that people can make offers directly on these tracks through an exchange. The more buyers are going to get the market. I think that's good overall which is going to have more liquidity flowing into the space. If they know that there's something that they can base their decisions seem so archaic that like the way of transacting deals is setting up a conference in Houston Texas. And you have to set up a booth with posters on the wall and and just since the nineteen eighties behind the Internet. You go through and go through five hundred booths to find. It's of course a search by good deals that meet your criteria put some filters on this right and how do you spend one hundred million dollars even more even more difficult because now you gotta go look around for bankruptcy things? You gotTa try to get together. Yeah how do you spend a lot of money? It's harder to play that much capital absolutely so we get bigger buyers in the market by doing this over the long term. Yeah that makes sense so if people want to sign up for your website. Today it's open. They can go on there and sign up so real x dot. Io there's there's about forty different buttons you can click to contact us on there. We will reach out. I guarantee of that. And then we do that. Vetting process but we can have up and looking at properties in twenty four hours awesome hours from a USO will include a link shields website in the show not find it real lex ventures Dot Io right reelect. Relex MR Alex Dot. Io It'll be right in the show notes so that's all the matters. Luke where can people find you are? Y'All Lynton I'm on Lincoln and you can find me there. I always respond awesome. Always response. Sounds good man. Thanks for coming in really appreciate. It was great meeting you. Thanks guys I appreciate you too and good luck with everything. You're doing here yet. They spend our yes This week I'm not gonNA ask for rating and review but that'd be nice to you. We have a lot of really cool things coming on the pipe if you WANNA stay up to date with everything that we're doing the best way to do that is to subscribe to the Digital World Kanter's newsletter on the website. Www DOT digital wildcatters dot com. We'll catch you guys on the next episode

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