WEBVTT - EYL #45 Hustle & Motivate feat. John Henry

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<v Speaker 1>Coach, the energy out there felt different. What changed for

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<v Speaker 1>the team today?

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<v Speaker 2>It was the new game day scratches from the California

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<v Speaker 2>Lottery players.

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<v Speaker 3>Everything.

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<v Speaker 4>Those games sent the team's energy through the roof.

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<v Speaker 1>Are you saying it was the off field play that

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<v Speaker 1>made the difference on the field.

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<v Speaker 4>Hey, little play makes your day, and today it made

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<v Speaker 4>the game. That's all for now, Coach, one more question.

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<v Speaker 1>Play the new Los Angeles Chargers, San Francisco forty nine

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<v Speaker 1>Ers and Los Angeles Rams scratchers from the California Lottery.

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<v Speaker 1>A little play can make your day. Peace made responsibly.

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<v Speaker 1>Must be eighteen years or older to purchase late or claim.

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<v Speaker 3>All right, guys, welcome back.

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<v Speaker 5>So we have a very special addition today, very special guests,

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<v Speaker 5>very special topics. It's just very special all the way around.

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<v Speaker 5>So all right, we're gonna get this started. But before

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<v Speaker 5>we get it started, first we gotta give a shout

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<v Speaker 5>out to the d All did you know that we

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<v Speaker 5>was number two in d off a business podcast.

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<v Speaker 4>I did not know that.

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<v Speaker 5>Yeah, we have a very strong following at the some

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<v Speaker 5>of our best guests, Lord of the Slump Man, Fernando.

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<v Speaker 3>Shoza, shout out to Caesar and shout.

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<v Speaker 5>To everybody in Dykeman. Yeah, it's like a second home five.

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<v Speaker 5>They show us so much love out there.

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<v Speaker 2>It was the first place when we stepped out the car,

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<v Speaker 2>somebody was like, yo, Troy was shot and we were like, oh,

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<v Speaker 2>they know it's out here.

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<v Speaker 3>Ye shots.

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<v Speaker 5>Shout out at the tournament, specifically, shout out to Miguel

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<v Speaker 5>Chris Kenny, Mikeylo, keV and shout out to Katrina Castro.

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<v Speaker 5>She's a huge actress in Don She's a big fan

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<v Speaker 5>of the podcast too. So the reason why I say

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<v Speaker 5>that is that our guest and letting John Henry is uh,

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<v Speaker 5>you're Dominican, right, one hundred percent right?

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<v Speaker 4>Yes, I am from the Heights, from Heights as well.

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<v Speaker 4>That's pretty much to making republics for those who don't know.

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<v Speaker 5>Yeah, so if you don't know, John gave you a

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<v Speaker 5>brief introduction. He's the man, the myth, the legend. Yeah

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<v Speaker 5>Forbes thirty on the thirties. Whole team actually made that.

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<v Speaker 5>I just I just realized that he sold his first

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<v Speaker 5>company when he was twenty one, four million dollars. He

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<v Speaker 5>started co Fund Harlem. He owned seventeen apartment in two

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<v Speaker 5>buildings in Pennsylvania and he has a venture capital firm.

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<v Speaker 5>This is something I'm really interesting. He has a venture

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<v Speaker 5>capital firm. And he's twenty six, twenty six, twenty six

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<v Speaker 5>years old, twenty six years old, So that's a lot.

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<v Speaker 3>Lot, that's a lot.

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<v Speaker 5>So yes, can we get your story because it's I

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<v Speaker 5>did some reading and it's it's crazy. So you started

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<v Speaker 5>at eighteen, you were dormant, right.

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<v Speaker 4>That is correct?

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<v Speaker 3>Yep.

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<v Speaker 4>So first off, just shout out to you guys. Man.

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<v Speaker 3>Thanks, I appreciate you. Appreciate you.

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<v Speaker 4>Of course behind the camera too, never forget behind the

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<v Speaker 4>can for sure. Because we've been making we've been wanting

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<v Speaker 4>to pop off for a minute, and I've been getting

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<v Speaker 4>tagged on your guys, and not only just tag but

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<v Speaker 4>DM and like people.

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<v Speaker 2>We gotta I think we're gonna call him the earners,

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<v Speaker 2>like every Yeah, we're gonna call them the earners.

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<v Speaker 4>I've been looking for a little thing like that.

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<v Speaker 2>We're gonna go. Shout out to my man Kennon in Detroit.

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<v Speaker 2>He was like, Yo, Troy, you gotta call him the earners.

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<v Speaker 2>So when the earners come to your page, yep, they

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<v Speaker 2>come with.

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<v Speaker 4>A man and and then I had a homegirl who

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<v Speaker 4>was like yo, and put you guys in touch, and

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<v Speaker 4>we ended up in touch. So I'm glad. I'm glad

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<v Speaker 4>this went down. So yeah, So there's that because I

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<v Speaker 4>know it's not it's not easy to build a community,

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<v Speaker 4>and you got to stay very consistent, and it's very

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<v Speaker 4>difficult to remain consistent, whether it's original content and or curation.

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<v Speaker 4>Like your guys, curation is a very specific point of view.

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<v Speaker 4>So as a fellow content creator, I don't take that

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<v Speaker 4>for granted. So thank you.

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<v Speaker 3>I appreciate that. Thank you.

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<v Speaker 4>Yeah, no doubt So yeah, man, I mean my story

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<v Speaker 4>is what it is that's out there as well documented

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<v Speaker 4>and all that's just true. You know, just like kid

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<v Speaker 4>from the Heights, you know, grew up in a very

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<v Speaker 4>poor family. We grew up below the poverty line, so

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<v Speaker 4>Dominican immigrants to Dominican immigrants. So both my parents combined

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<v Speaker 4>didn't make thirty thousand a year. And there were six

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<v Speaker 4>so I'm the youngest of four. So it's four kids

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<v Speaker 4>plus two parents, six of us, you know, living just

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<v Speaker 4>like pretty much everyone else in the Heights of New

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<v Speaker 4>York in the nineties in a little one bedroom apartment

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<v Speaker 4>and my pops put up a little fake wall to

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<v Speaker 4>make everybody know that curtain. And so my sister had

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<v Speaker 4>a full bed, my oldest brother had the top bunk,

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<v Speaker 4>and I actually split the bottom bunk with my brother

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<v Speaker 4>closest to me in age. So it's not even like

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<v Speaker 4>we had a bunk bed. We split the bottom bunk.

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<v Speaker 4>It's not like a goal, which, like I guess these

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<v Speaker 4>days sounds like, oh my god, you know, but it's

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<v Speaker 4>just is what it is. And yeah, man, that was

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<v Speaker 4>just a formative DNA. I think one big blessing that

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<v Speaker 4>I had was grown up in a two parent household,

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<v Speaker 4>despite you know, a lot of adverse New York in

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<v Speaker 4>the nineties, just very crazy, a lot of shit popping off.

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<v Speaker 4>I had an oldest brother whom was of age when

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<v Speaker 4>when my parents moved to the States, so he was,

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<v Speaker 4>you know, thirteen, fourteen, fifteen, so you know, my parents.

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<v Speaker 4>I feel like, like Kendrick, like good kid, mad City,

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<v Speaker 4>definitely mad City. But my mom's who was who was

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<v Speaker 4>already like dealing with the effects of watching after my

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<v Speaker 4>oldest siblings, like made sure that you know, we were

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<v Speaker 4>busy or some ship you know, or stayed and we

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<v Speaker 4>only you know, we could play just in the lobby,

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<v Speaker 4>you know when we were and uh yeah. So anyway,

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<v Speaker 4>so that was the early DNA man and then you know,

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<v Speaker 4>I moved to We moved to Florida after nine to eleven.

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<v Speaker 4>Also one thing that I don't talk about that often,

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<v Speaker 4>but there we we there was an arm burglary in

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<v Speaker 4>our home. Complete mistake, you know, but some casts like

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<v Speaker 4>broke into our crib and you know, there were eight

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<v Speaker 4>guys that were all armed, tied us all up except

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<v Speaker 4>for me because they didn't expect two people to be

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<v Speaker 4>in the bottom bunk and I was. It was crazy

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<v Speaker 4>kind of stuff. And just like that couple with nine eleven,

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<v Speaker 4>my folks were like, yeah, we're not gonna do this.

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<v Speaker 4>So we moved to Florida, spent some time there. My

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<v Speaker 4>mom worked as a custodian in an affluentighborhood. And so

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<v Speaker 4>one of the perks that you get is that your

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<v Speaker 4>kids can go to that school district, whether or not

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<v Speaker 4>you live in that neighborhood. And so that was a

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<v Speaker 4>very big blessing because it's like a children horse got

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<v Speaker 4>to go to this schools, specifically high school where it's

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<v Speaker 4>just a lot of affluent kids and for the first

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<v Speaker 4>time we were like we were broke alone, Like I

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<v Speaker 4>was the only broke kid. It's one thing when everyone's

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<v Speaker 4>broke is one. There's another thing when like your friends

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<v Speaker 4>have enormous homes and getting whips at age of sixteen

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<v Speaker 4>and all this kind of stuff. So that kind of

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<v Speaker 4>put a chip on my shoulder in an interesting way.

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<v Speaker 4>And I guess, just to speed it up, I actually

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<v Speaker 4>fell in love with music. At that point in time.

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<v Speaker 4>I was damn near rosta. I had grown out.

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<v Speaker 3>Of my locks choice making.

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<v Speaker 4>That's a fact. Oh really, you know, spunked a little

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<v Speaker 4>too much, weak, was tied down my own shirts and

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<v Speaker 4>shiit picked up the guitar. Oh, just like roots, like

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<v Speaker 4>real real roots, like Barrington Levy he was in Trench. Yeah,

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<v Speaker 4>Ziggy's okay, like Damian Moore, you know Bob as well,

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<v Speaker 4>Steel Polse like roots roots. I actually joined a roots

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<v Speaker 4>reggae band. It was a whole Rosster Farign family. It

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<v Speaker 4>was a whole, the whole thing. But I pursued. I

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<v Speaker 4>fell in love with the instrument, and then through reggae,

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<v Speaker 4>discovered blues and reggae, which I love. It's but it's

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<v Speaker 4>very static as a music. It's boommmment and it sits

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<v Speaker 4>in the pocket. And then I discovered blues, it progresses

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<v Speaker 4>a little more, and then I discovered jazz. And at

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<v Speaker 4>that point I cut my hair and I was like,

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<v Speaker 4>I was playing eight hours a day every day. No,

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<v Speaker 4>it was not like a casual thing. I was very

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<v Speaker 4>committed to the music, and I actually moved back to

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<v Speaker 4>the city to pursue music. I wanted scholarship. I came

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<v Speaker 4>here for that. And then you know, coming back to

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<v Speaker 4>the city as a young adult and all the stimuli

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<v Speaker 4>that you have and all the drive you could really

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<v Speaker 4>apply towards anything. And so I got a job as

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<v Speaker 4>a doorman and that kind of started off my whole business. Dren.

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<v Speaker 2>Yeah, so the doorman situation, you said that a lot

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<v Speaker 2>of residents, wealthy residents will come in and out and

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<v Speaker 2>you decided that, hey, this is a chance here, and

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<v Speaker 2>one of them changed your.

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<v Speaker 4>Trajectory forever, forever. That's exactly right. The special thing about

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<v Speaker 4>living in a big city is the proximity. There's a

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<v Speaker 4>lot of power in proximity and like you just you know,

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<v Speaker 4>being exposed to different life paths and that can come

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<v Speaker 4>in the form of anything. For me, happened to come

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<v Speaker 4>in the form of working the desk and just seeing

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<v Speaker 4>I first at Dormant on Wall Street, seventy five Wall Street,

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<v Speaker 4>which is a residential building, and like I got exposed

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<v Speaker 4>to you know, trum, like the most affluent people in

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<v Speaker 4>the country, but that never felt attainable to me because

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<v Speaker 4>it was like, oh, white money. I then later got

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<v Speaker 4>the chance to Dormant in Brooklyn, and who was there

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<v Speaker 4>in that building A lot of different people with a

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<v Speaker 4>lot of different life paths. For instance, some folks that

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<v Speaker 4>come to mind, notable people. The founders are rap genius,

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<v Speaker 4>y genius, crazy, like few white boys, like oh what

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<v Speaker 4>you know them pastor Carl Lentz, mega pastor of Hillsong,

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<v Speaker 4>mega pastor now like globally known. There were directors. There

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<v Speaker 4>was the founder of Voxy, this cool startup, Christina Ricci,

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<v Speaker 4>this actress. I mean, there was this guy named Ivan Green,

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<v Speaker 4>a professional rock climber, professional dating coaches, I mean, every

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<v Speaker 4>kind of career you can think of. Yeah, like some

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<v Speaker 4>of us got paid thirty g's per client to show

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<v Speaker 4>losers how to pick up girls. And so yeah, at

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<v Speaker 4>some point, you know that kind of sustained proximity showed

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<v Speaker 4>me that you can make a living doing exactly what.

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<v Speaker 2>So like as people are coming in, you're just having

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<v Speaker 2>casual conversation and we're just passing it like this.

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<v Speaker 4>Guy, I like this kid, Yeah for sure, just being interested,

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<v Speaker 4>you know, like you know, there were dormant who had

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<v Speaker 4>been there for years, who were sleeping on you know,

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<v Speaker 4>the power of now.

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<v Speaker 5>You know, I'm glad we having this conversation because it's

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<v Speaker 5>something that a lot of times people take for granted

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<v Speaker 5>the power of networking. And like, speaking of Florida, I

0:10:08.640 --> 0:10:11.160
<v Speaker 5>used to play basketball, so I went to IMG Academy.

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<v Speaker 5>I don't know if you're in the sports, but it's

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<v Speaker 5>a real big sports academy in Florida. And one of

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<v Speaker 5>my biggest regrets is that when I was there, like

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<v Speaker 5>literally it was so many people that was there, like

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<v Speaker 5>John McEnroe's son, Maria Sharup over like all these different kids,

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<v Speaker 5>and it's like every like a lot of these people

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<v Speaker 5>came from very wealthy families or they they did extremely

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<v Speaker 5>good things. And I was kind of like just in

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<v Speaker 5>my vibe just you know, sheltered off just people. I

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<v Speaker 5>played basketball, but I wish that I would have. It

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<v Speaker 5>was right in my fingertips, right, And it's like a

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<v Speaker 5>lot of times people don't fully understand like you were

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<v Speaker 5>in the building and you networked. You wasn't like their peers,

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<v Speaker 5>but that didn't stop you from actually networking making relationships.

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<v Speaker 4>Yeah, And I just you know, want to bring a

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<v Speaker 4>little color to the word networking because that, to me,

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<v Speaker 4>it's got to up fake connotation of like networking, like

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<v Speaker 4>you're looking for something out of someone. And that was

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<v Speaker 4>just never my whole that was never my thing. I

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<v Speaker 4>was never like, yo, I'm going to meet with this resident,

0:11:08.800 --> 0:11:11.320
<v Speaker 4>because it was just like I'm just interested in you

0:11:11.360 --> 0:11:11.960
<v Speaker 4>as a person.

0:11:12.920 --> 0:11:14.920
<v Speaker 2>You become part of their daily life, Like I see

0:11:14.920 --> 0:11:15.880
<v Speaker 2>you every day.

0:11:15.679 --> 0:11:18.920
<v Speaker 4>For sure, right, Like we have kids, just like.

0:11:19.000 --> 0:11:21.040
<v Speaker 2>You've watched their kids grow, you watch them get a pet,

0:11:21.080 --> 0:11:22.000
<v Speaker 2>you watch all these things happen.

0:11:22.080 --> 0:11:24.360
<v Speaker 4>And there's something special about when you connect with someone

0:11:24.360 --> 0:11:28.080
<v Speaker 4>with no expectations in mind, and like that's what builds

0:11:28.720 --> 0:11:32.319
<v Speaker 4>to me, builds real depth and allows you to transcend

0:11:32.360 --> 0:11:35.760
<v Speaker 4>beyond the networking bucket and then you develop a real relationship.

0:11:35.760 --> 0:11:39.000
<v Speaker 4>And I'm still friends, actual friends with a lot of

0:11:39.000 --> 0:11:40.960
<v Speaker 4>these people. Man. And it's crazy, because you're right, we

0:11:40.960 --> 0:11:43.480
<v Speaker 4>weren't peers at that time, some you know, and allow

0:11:43.840 --> 0:11:46.200
<v Speaker 4>a lot of us are peers for real, and it's

0:11:46.240 --> 0:11:48.600
<v Speaker 4>just they still look at me and like, damn, that's

0:11:48.600 --> 0:11:52.640
<v Speaker 4>crazy because the door for me.

0:11:55.000 --> 0:11:56.840
<v Speaker 3>Sorry, So how'd you get the cleaning business? Though?

0:11:57.080 --> 0:11:58.960
<v Speaker 4>All right? So the cleaning business? And I'll run through

0:11:58.960 --> 0:12:00.640
<v Speaker 4>this quick because this is well dot com and I

0:12:00.640 --> 0:12:02.640
<v Speaker 4>suspect that maybe some of the folks listen might have

0:12:02.760 --> 0:12:05.719
<v Speaker 4>heard this bit of this. But yeah, man, there was

0:12:05.760 --> 0:12:08.360
<v Speaker 4>one resident in particular. His name is Hugo. Shout out

0:12:08.360 --> 0:12:12.320
<v Speaker 4>to Hugo. Love him like a brother, and yeah, he

0:12:12.480 --> 0:12:16.120
<v Speaker 4>comes from from where I come from, you know, different neighborhood, Brooklyn,

0:12:16.160 --> 0:12:20.040
<v Speaker 4>but you know, just from being poor. And he was like, Yo,

0:12:21.800 --> 0:12:25.880
<v Speaker 4>what fuck you doing? Bro? Like like you know, at

0:12:25.880 --> 0:12:27.600
<v Speaker 4>that time, so I was making fourteen dollars an hour

0:12:28.120 --> 0:12:30.559
<v Speaker 4>and I was in a suit and in an ac

0:12:31.160 --> 0:12:33.560
<v Speaker 4>and like that in and of itself, you know, my

0:12:33.559 --> 0:12:36.560
<v Speaker 4>my pops was paid forty cents a garment, you know,

0:12:36.679 --> 0:12:39.880
<v Speaker 4>so like damn your sweatshot conditions and so like there

0:12:39.880 --> 0:12:41.720
<v Speaker 4>was a notable step up. And it was enough for

0:12:41.760 --> 0:12:43.760
<v Speaker 4>me to I may maybe nine hundred bucks every two weeks.

0:12:43.800 --> 0:12:45.360
<v Speaker 4>So it's enough for me to help the family out.

0:12:45.360 --> 0:12:47.640
<v Speaker 4>But like he just quickly let me know, man, you

0:12:47.640 --> 0:12:49.160
<v Speaker 4>don't got to set up for being a dormant. You

0:12:49.200 --> 0:12:51.960
<v Speaker 4>could have your own dormant, you know. And he saw

0:12:52.000 --> 0:12:54.080
<v Speaker 4>my earnestness, so he put me up to something. And

0:12:55.400 --> 0:12:57.800
<v Speaker 4>there were actually a number of residents who were trying

0:12:57.800 --> 0:13:00.000
<v Speaker 4>to put me onto different hustles. But eventually you got

0:13:00.080 --> 0:13:02.240
<v Speaker 4>to find a vehicle that feels right for you. You know.

0:13:02.320 --> 0:13:05.000
<v Speaker 4>Some lady tried to put me onto editing videos, making

0:13:05.000 --> 0:13:07.599
<v Speaker 4>five hundred bucks of video. Like if that was in

0:13:07.679 --> 0:13:09.720
<v Speaker 4>my DNA, I could have done that, right, But I

0:13:09.840 --> 0:13:13.920
<v Speaker 4>ended up resonating with this approach. Hugo, who had a

0:13:13.920 --> 0:13:16.360
<v Speaker 4>franchise a dry cleaner. He has like maybe he had

0:13:16.360 --> 0:13:19.160
<v Speaker 4>like at that time, you know, dozens of dry cleaners.

0:13:19.760 --> 0:13:23.560
<v Speaker 4>And what I didn't know is that the facility is

0:13:23.559 --> 0:13:25.559
<v Speaker 4>the most expensive part. And then most of the dry

0:13:25.600 --> 0:13:29.640
<v Speaker 4>cleaners that you guys go to are actual their drop shops.

0:13:29.640 --> 0:13:31.839
<v Speaker 5>So let's talk about that, because I know you've probably

0:13:31.840 --> 0:13:34.240
<v Speaker 5>told this story before, but on Eyo, we like get

0:13:34.280 --> 0:13:37.679
<v Speaker 5>deep into So these are kind of businesses that you

0:13:37.720 --> 0:13:40.120
<v Speaker 5>see you use every day. But I've never heard anybody

0:13:40.120 --> 0:13:43.000
<v Speaker 5>explain the business model of how dry cleaner makes money.

0:13:43.040 --> 0:13:46.120
<v Speaker 5>So you had a successful dry cleaning business. You don't

0:13:46.120 --> 0:13:48.319
<v Speaker 5>even have a business background. That's interesting as well. How

0:13:48.320 --> 0:13:49.959
<v Speaker 5>do you know how to run a business and how

0:13:49.960 --> 0:13:52.120
<v Speaker 5>do you like, how is that Profitablecause at one point

0:13:52.160 --> 0:13:53.679
<v Speaker 5>you say he was making like a hundred like, well

0:13:53.760 --> 0:13:56.120
<v Speaker 5>the revenue was one hundred thousand a month.

0:13:56.040 --> 0:13:58.040
<v Speaker 3>Right, yeah, yeah, how is that possible?

0:13:58.360 --> 0:14:03.160
<v Speaker 4>Yeah? So you don't you don't need a business background.

0:14:04.720 --> 0:14:09.960
<v Speaker 4>You just you just gotta be you gotta be able

0:14:10.000 --> 0:14:13.800
<v Speaker 4>to make a transaction happen. And that's really at the

0:14:13.920 --> 0:14:18.080
<v Speaker 4>essence of the business of any business is transactions and people.

0:14:19.080 --> 0:14:21.000
<v Speaker 4>And so if you know, a lot of people don't

0:14:21.000 --> 0:14:25.520
<v Speaker 4>get off the ground because the weight of their expectations crushes,

0:14:25.920 --> 0:14:27.920
<v Speaker 4>you know, the seed of the thing. Because you place

0:14:27.960 --> 0:14:29.200
<v Speaker 4>all these experts, you know, I need this shit to

0:14:29.240 --> 0:14:32.600
<v Speaker 4>be a full blown business. Now, motherfucker, you don't like

0:14:32.640 --> 0:14:35.080
<v Speaker 4>make a sale, you know what you know? And so

0:14:35.800 --> 0:14:36.920
<v Speaker 4>Hugo showed me.

0:14:39.000 --> 0:14:39.240
<v Speaker 3>That.

0:14:39.560 --> 0:14:41.680
<v Speaker 4>So this is the way the dry cleaning model works.

0:14:41.760 --> 0:14:44.600
<v Speaker 4>Is like there's a facility and that is the expensive

0:14:44.640 --> 0:14:47.480
<v Speaker 4>part because these machines cost a lot of money, and

0:14:47.840 --> 0:14:53.360
<v Speaker 4>dry cleaning uses something called perk, which your clothes do

0:14:53.480 --> 0:14:56.880
<v Speaker 4>get wet, so dry cleaning is like a false pretense,

0:14:57.080 --> 0:15:00.000
<v Speaker 4>but it gets wet with a solvent chemical of sorts

0:15:00.120 --> 0:15:04.240
<v Speaker 4>solution called perk, and so anyway, that stuff has to

0:15:04.280 --> 0:15:06.160
<v Speaker 4>be handled in a very specific way and whatever. So

0:15:06.200 --> 0:15:10.840
<v Speaker 4>the facilities are typically expensive. However, most dry cleaners that

0:15:10.920 --> 0:15:14.200
<v Speaker 4>people interface with are actual what they call drop shops.

0:15:14.400 --> 0:15:17.400
<v Speaker 4>So this is a small retail facility, you know, like

0:15:17.640 --> 0:15:20.600
<v Speaker 4>might be four five hundred square feet where customers go

0:15:20.720 --> 0:15:23.880
<v Speaker 4>and it's typically in a residential neighborhood, and customers go

0:15:23.920 --> 0:15:25.720
<v Speaker 4>and they drop off their garments. Like if you know,

0:15:25.720 --> 0:15:27.680
<v Speaker 4>if I were to drop this off, this blazer would

0:15:27.720 --> 0:15:30.400
<v Speaker 4>cost me like nine bucks and my parents and whatever.

0:15:30.800 --> 0:15:33.520
<v Speaker 4>And then what those retail shops do is they actually

0:15:33.560 --> 0:15:37.440
<v Speaker 4>outsource them to the facility and then you typically pay

0:15:37.520 --> 0:15:41.320
<v Speaker 4>on a per piece basis. So for me, Hugo gave

0:15:41.400 --> 0:15:46.240
<v Speaker 4>me wholesale pricing without me having wholesale volume, i e.

0:15:46.840 --> 0:15:50.520
<v Speaker 4>This blazer as a regular customer would cost maybe nine

0:15:50.560 --> 0:15:52.880
<v Speaker 4>dollars to dry clean. Hugo was doing it for me

0:15:53.000 --> 0:15:55.680
<v Speaker 4>for two bucks. That's a great margin.

0:15:56.680 --> 0:15:59.280
<v Speaker 2>Now, did you have a facility or are you doing well?

0:15:59.360 --> 0:16:01.920
<v Speaker 4>So Hugo did so Hugo was like, yo, I can't

0:16:01.960 --> 0:16:04.360
<v Speaker 4>really help you out and that much, but I can

0:16:04.400 --> 0:16:07.320
<v Speaker 4>give you access to a facility. I was like, perfect,

0:16:07.480 --> 0:16:10.400
<v Speaker 4>that's all I need. So my job that's why it

0:16:10.520 --> 0:16:12.200
<v Speaker 4>was like there was no silver spoon or anything. My

0:16:12.320 --> 0:16:14.200
<v Speaker 4>job was. He was like, all right, bet you have that.

0:16:15.120 --> 0:16:18.560
<v Speaker 4>Oh think something happened. That's it. Yeah, see you later.

0:16:19.200 --> 0:16:20.920
<v Speaker 4>So then, you know, I took the same suit that

0:16:20.920 --> 0:16:23.880
<v Speaker 4>I was doormanning in and made some cheap business cards

0:16:23.960 --> 0:16:27.720
<v Speaker 4>and some fucking flyers and I called the Giant Ree cleaners.

0:16:27.720 --> 0:16:29.400
<v Speaker 4>It was not that original, you know, And I just

0:16:29.480 --> 0:16:32.320
<v Speaker 4>went to I was walking around Harlem and just knocking

0:16:32.360 --> 0:16:36.000
<v Speaker 4>on doors literally and getting to knownother doorman and saying, yo,

0:16:36.080 --> 0:16:37.680
<v Speaker 4>I know you're the key to the building because I'm

0:16:37.680 --> 0:16:42.480
<v Speaker 4>a doorman too, and like getting them to refer their

0:16:42.600 --> 0:16:47.320
<v Speaker 4>residence to me anytime they had an issue or whatever,

0:16:47.320 --> 0:16:49.480
<v Speaker 4>and I would break them off on the low. And

0:16:49.560 --> 0:16:53.360
<v Speaker 4>I remember when I got my first call from a lady,

0:16:53.400 --> 0:16:55.320
<v Speaker 4>you know. And I actually had gone to AT and

0:16:55.320 --> 0:16:56.960
<v Speaker 4>T and paid them two hundred bucks to get a

0:16:56.960 --> 0:16:58.560
<v Speaker 4>two one two cell phone number, so they thought they

0:16:58.560 --> 0:17:00.720
<v Speaker 4>were calling in a real shop. And I was having

0:17:00.800 --> 0:17:03.520
<v Speaker 4>lunch with my parents and I stepped out. She was like, hi, yeah.

0:17:03.880 --> 0:17:05.960
<v Speaker 4>I was like yes. She was like, I like to

0:17:05.960 --> 0:17:09.440
<v Speaker 4>place an order. I was like all right, cool. Yeah.

0:17:09.440 --> 0:17:11.680
<v Speaker 4>She gave me her dress. I took the subway. I

0:17:11.760 --> 0:17:13.440
<v Speaker 4>had no whip, but at the time took the subway.

0:17:14.160 --> 0:17:14.359
<v Speaker 3>You know.

0:17:14.600 --> 0:17:17.359
<v Speaker 4>She opened the door and I was expecting, you know,

0:17:17.359 --> 0:17:18.919
<v Speaker 4>I don't know what I was expecting, like to be

0:17:19.000 --> 0:17:21.000
<v Speaker 4>grilled or something. And she she didn't even know I

0:17:21.040 --> 0:17:23.040
<v Speaker 4>was on Henry. She just always a delivery guy. She's like, well,

0:17:23.040 --> 0:17:23.520
<v Speaker 4>here you go.

0:17:23.640 --> 0:17:24.919
<v Speaker 2>So it's like an on demand service.

0:17:25.160 --> 0:17:26.000
<v Speaker 4>Yep, she called.

0:17:26.000 --> 0:17:26.240
<v Speaker 3>I went.

0:17:26.280 --> 0:17:28.280
<v Speaker 4>I picked it up. I took it to the facility

0:17:28.280 --> 0:17:31.439
<v Speaker 4>where hego was at. Yeah, on foot via train. He

0:17:31.560 --> 0:17:33.920
<v Speaker 4>cleaned it. The next day. I went back to Bushwick

0:17:33.920 --> 0:17:35.960
<v Speaker 4>where he was grabbed. It, went all the way up

0:17:36.000 --> 0:17:39.359
<v Speaker 4>to Harlem, delivered it. And then when I delivered it,

0:17:39.840 --> 0:17:43.840
<v Speaker 4>she gave me seventeen bucks. And like, yes, I traveled

0:17:43.880 --> 0:17:48.239
<v Speaker 4>three or four hours total to make seventeen dollars. But

0:17:48.320 --> 0:17:51.360
<v Speaker 4>those seventeen dollars changed my life because it was seventeen

0:17:51.400 --> 0:17:54.399
<v Speaker 4>dollars from my own system, and one dollar from your

0:17:54.400 --> 0:17:57.080
<v Speaker 4>own system is worth a thousand dollars from another man's

0:17:57.640 --> 0:17:58.320
<v Speaker 4>that's powerful.

0:17:58.560 --> 0:18:00.879
<v Speaker 5>And also, you know I like that story is that

0:18:01.760 --> 0:18:04.040
<v Speaker 5>it's a lot of creativity in that. If you want

0:18:04.080 --> 0:18:10.280
<v Speaker 5>you watched Casino, No what you gotta watch what Casino?

0:18:10.680 --> 0:18:12.840
<v Speaker 5>Sam Rosstein? Who do you say the most important people

0:18:12.840 --> 0:18:13.480
<v Speaker 5>in Vegas was.

0:18:13.520 --> 0:18:14.359
<v Speaker 4>Troy to Do?

0:18:15.000 --> 0:18:18.960
<v Speaker 3>Nope, the the people at the table, the valet parkers.

0:18:19.080 --> 0:18:21.120
<v Speaker 2>Oh yes, yes, they know everybody know everybody.

0:18:22.160 --> 0:18:23.320
<v Speaker 3>I like the average person.

0:18:23.320 --> 0:18:25.120
<v Speaker 5>If I'm starting to clean a business, I'm going door

0:18:25.160 --> 0:18:27.720
<v Speaker 5>to door, Like, but think how much you went to

0:18:27.800 --> 0:18:31.280
<v Speaker 5>the dormant because they know everybody. You was already a

0:18:31.320 --> 0:18:33.720
<v Speaker 5>dormant yourself, so instead of having a knock on you

0:18:33.760 --> 0:18:35.520
<v Speaker 5>probably couldn't get in the building anyway. But instead of

0:18:35.520 --> 0:18:37.720
<v Speaker 5>trying to knock on three hundred doors and people was

0:18:37.760 --> 0:18:40.640
<v Speaker 5>like who are you? You just you cut the middleman out.

0:18:41.000 --> 0:18:43.520
<v Speaker 5>You went straight to the person that speaks to everybody on.

0:18:43.520 --> 0:18:44.720
<v Speaker 3>A day to day basis exactly.

0:18:44.800 --> 0:18:46.520
<v Speaker 5>You gave them an a sentive because you get them

0:18:46.600 --> 0:18:49.720
<v Speaker 5>some money for every person they preferred. It's actually a

0:18:49.760 --> 0:18:53.480
<v Speaker 5>brilliant system. See things like that is like who thinks

0:18:53.480 --> 0:18:54.240
<v Speaker 5>about stuff like that?

0:18:55.200 --> 0:18:57.480
<v Speaker 4>I mean you're in the industry, so you know, yeah, right,

0:18:57.520 --> 0:19:00.840
<v Speaker 4>And I can't. I can't take it for having some

0:19:00.880 --> 0:19:03.480
<v Speaker 4>brilliant idea. To your point, it was really just that's

0:19:03.480 --> 0:19:07.600
<v Speaker 4>what I knew, and so like like some people hear

0:19:07.680 --> 0:19:10.199
<v Speaker 4>this and want to replicate my path, But that was

0:19:10.240 --> 0:19:11.760
<v Speaker 4>just what I knew. So what do you know?

0:19:11.840 --> 0:19:13.359
<v Speaker 2>Yeah, well we got to give you credit though, right,

0:19:13.400 --> 0:19:15.800
<v Speaker 2>because there are four hundred to one thousand people who

0:19:15.800 --> 0:19:17.719
<v Speaker 2>were doing the same job who didn't have that.

0:19:18.000 --> 0:19:19.880
<v Speaker 4>Sure, you see what I'm saying. Sure, so I'll take

0:19:19.920 --> 0:19:24.120
<v Speaker 4>credit for having the drive, right, but I can't take

0:19:24.119 --> 0:19:26.600
<v Speaker 4>credit for having some kind of brilliance. It was just like,

0:19:27.320 --> 0:19:30.600
<v Speaker 4>you know, the connection with the doorman ran deeper than

0:19:30.640 --> 0:19:32.840
<v Speaker 4>the incentive because at some point you stop even breaking

0:19:32.880 --> 0:19:35.399
<v Speaker 4>them off. They do it because they talk like that

0:19:35.960 --> 0:19:40.399
<v Speaker 4>and like that. Man. People underestimate this shit. Man like

0:19:40.520 --> 0:19:43.480
<v Speaker 4>business is a lot more the art of connecting with

0:19:43.600 --> 0:19:47.399
<v Speaker 4>people than it is the art of making numbers. Later,

0:19:47.600 --> 0:19:51.080
<v Speaker 4>the numbers you know you'll yield. You'll make some money

0:19:51.320 --> 0:19:54.280
<v Speaker 4>as a result of connecting with people, in my opinion.

0:19:54.080 --> 0:19:56.160
<v Speaker 3>So you you skilled it to one hundred thousand a month.

0:19:56.520 --> 0:19:58.800
<v Speaker 4>Yeah, we grew, man, we were then. There was no

0:19:58.840 --> 0:20:01.879
<v Speaker 4>way we would get to that volume just doing little

0:20:01.880 --> 0:20:05.320
<v Speaker 4>individual residents. There was another resident of the build that

0:20:05.359 --> 0:20:07.240
<v Speaker 4>same building. I was planning a quip. You know, I

0:20:07.280 --> 0:20:10.320
<v Speaker 4>was waiting for December twenty fifth, you know, Christmas. I

0:20:10.400 --> 0:20:12.400
<v Speaker 4>was the building's favorite. So I was maybe gonna make

0:20:12.520 --> 0:20:16.800
<v Speaker 4>like four or five g's and that was enough. Man.

0:20:16.880 --> 0:20:19.080
<v Speaker 4>I was going to quit and get all my ship.

0:20:19.160 --> 0:20:21.280
<v Speaker 4>And I actually got fired because you know, entrepreneurs don't

0:20:21.320 --> 0:20:23.520
<v Speaker 4>make good employees. At that point, they were hitting me

0:20:23.560 --> 0:20:25.479
<v Speaker 4>with conflict of interests. You know, they were like, yo,

0:20:25.520 --> 0:20:29.040
<v Speaker 4>he's trying to convert residence to customers. You know that

0:20:29.160 --> 0:20:31.320
<v Speaker 4>wasn't true. But like you know, when they want to

0:20:31.320 --> 0:20:34.040
<v Speaker 4>give you the can like they oh, they'll definitely find

0:20:34.040 --> 0:20:36.439
<v Speaker 4>a way. So they found a way and they fired

0:20:36.440 --> 0:20:39.359
<v Speaker 4>me in December. So I was really distraught. Man. I

0:20:39.359 --> 0:20:43.240
<v Speaker 4>thought that my ship was over. And then I got

0:20:43.280 --> 0:20:45.119
<v Speaker 4>a call from a seed that I've been planting for

0:20:45.119 --> 0:20:48.320
<v Speaker 4>a minute. It was you know, one of this resident

0:20:48.320 --> 0:20:51.399
<v Speaker 4>introduced me to the film industry wardrobe supervisor for The

0:20:51.400 --> 0:20:54.000
<v Speaker 4>Wolf of Wall Street, which did end up becoming the

0:20:54.040 --> 0:20:55.040
<v Speaker 4>first movie I ever did.

0:20:55.920 --> 0:20:58.000
<v Speaker 2>You did the so you became the cleaning service for

0:20:58.080 --> 0:20:59.160
<v Speaker 2>all the wardrobe for the film.

0:20:59.200 --> 0:21:02.080
<v Speaker 4>If you've ever seen the World Wall Street, every single

0:21:02.280 --> 0:21:06.080
<v Speaker 4>piece of wardrobe from the principal actor Leonardo, to the

0:21:06.119 --> 0:21:11.359
<v Speaker 4>extras in the Stockbruker scenes, like all that shit is money.

0:21:11.400 --> 0:21:14.200
<v Speaker 4>And one thing people don't know is at production companies,

0:21:15.000 --> 0:21:19.320
<v Speaker 4>they actually for the most part rent garments unless they

0:21:19.320 --> 0:21:22.800
<v Speaker 4>are very specific pieces and they're they're custom. For the

0:21:22.840 --> 0:21:25.399
<v Speaker 4>most part, they're rented. And the cool thing about when

0:21:25.400 --> 0:21:29.240
<v Speaker 4>they're rented is that they have to return the garments

0:21:29.400 --> 0:21:32.840
<v Speaker 4>dry cleaned, and so they you know, at this point,

0:21:33.520 --> 0:21:36.040
<v Speaker 4>the dry clean industry didn't have anyone that was willing

0:21:36.040 --> 0:21:37.520
<v Speaker 4>to go and picture it up at three in the morning.

0:21:38.040 --> 0:21:41.440
<v Speaker 4>And so when a multimillion dollar production has no choice

0:21:41.480 --> 0:21:43.280
<v Speaker 4>but to go with an eighteen year old kid who

0:21:43.359 --> 0:21:46.159
<v Speaker 4>dropped out of college and had no business experience, that

0:21:46.240 --> 0:21:48.439
<v Speaker 4>tells you they have an actual need. Yeah, you know.

0:21:48.520 --> 0:21:50.560
<v Speaker 4>So we met and like, I didn't get the business

0:21:50.600 --> 0:21:53.760
<v Speaker 4>right away. Months passed and then he called me. He

0:21:53.840 --> 0:21:55.840
<v Speaker 4>was like, yo, you're in luck because I got no

0:21:56.119 --> 0:21:59.640
<v Speaker 4>other option. You know. He's like, you want to come

0:22:00.160 --> 0:22:01.880
<v Speaker 4>the ship and I was like yeah, And I actually

0:22:01.960 --> 0:22:05.680
<v Speaker 4>went to pick up my first load of laundry. When

0:22:05.680 --> 0:22:07.760
<v Speaker 4>you're in the laundry business and you see big sacks

0:22:08.080 --> 0:22:10.840
<v Speaker 4>a laundry. You don't see sacks of clothes. You see

0:22:10.880 --> 0:22:13.600
<v Speaker 4>giant money bags. Literally, like I'm just like, oh my god.

0:22:13.640 --> 0:22:15.600
<v Speaker 4>There was like maybe five or six big ass bags,

0:22:16.400 --> 0:22:19.560
<v Speaker 4>and and I didn't have a whip man. And they

0:22:19.560 --> 0:22:22.000
<v Speaker 4>were like, yo, you want to sell? They were like, yo,

0:22:22.080 --> 0:22:23.560
<v Speaker 4>you want us to help you carry this ouse? Like no,

0:22:23.560 --> 0:22:25.560
<v Speaker 4>no, no no. I got the band right around the corner,

0:22:25.760 --> 0:22:28.119
<v Speaker 4>and I actually brought the sack one by one and

0:22:28.240 --> 0:22:32.040
<v Speaker 4>left them around the corner. And then when I was

0:22:32.080 --> 0:22:34.400
<v Speaker 4>sure they wasn't looking, I went and I lugged them

0:22:34.720 --> 0:22:37.600
<v Speaker 4>up the a train to my put them on the train.

0:22:37.640 --> 0:22:41.840
<v Speaker 4>I put them on the train, all six. So so

0:22:42.320 --> 0:22:45.199
<v Speaker 4>when you watch street, all them ships were dragged through

0:22:45.200 --> 0:22:46.000
<v Speaker 4>the uptown train.

0:22:46.880 --> 0:22:47.840
<v Speaker 3>A train is the worst.

0:22:47.840 --> 0:22:51.080
<v Speaker 2>Literally, just just just curious bags. Bro, what what what

0:22:51.160 --> 0:22:53.480
<v Speaker 2>type of revenue comes from that type of cleaning?

0:22:53.520 --> 0:22:56.560
<v Speaker 4>So I must I must have made on that order

0:22:56.880 --> 0:23:00.920
<v Speaker 4>something like uh maybe two g or something like that.

0:23:01.560 --> 0:23:04.879
<v Speaker 4>And then the margin works out to you net like

0:23:05.000 --> 0:23:09.640
<v Speaker 4>damn near seventy or sixty five percent because you pay

0:23:09.640 --> 0:23:11.600
<v Speaker 4>on a perpose basis and all this other stuff. But

0:23:11.640 --> 0:23:14.720
<v Speaker 4>the point is here, I was making nine hundred bucks

0:23:14.760 --> 0:23:18.240
<v Speaker 4>every two weeks and I just made two g's in

0:23:18.280 --> 0:23:20.800
<v Speaker 4>an order. Now, not every order. I knew at that

0:23:20.840 --> 0:23:22.560
<v Speaker 4>point not every order was going to be two g's.

0:23:22.600 --> 0:23:26.920
<v Speaker 4>But you know in theory that if you can hit that,

0:23:26.920 --> 0:23:28.959
<v Speaker 4>then you can hit it again, and so like that

0:23:29.080 --> 0:23:31.240
<v Speaker 4>was a point with which like I kind of broke.

0:23:31.359 --> 0:23:33.600
<v Speaker 4>I mean, really, the seventeen dollars order was what let

0:23:33.640 --> 0:23:36.080
<v Speaker 4>me know, Okay, it's the measure of your effort, but

0:23:36.160 --> 0:23:37.640
<v Speaker 4>that one let me know, all right, there's some real

0:23:37.680 --> 0:23:40.760
<v Speaker 4>money to be made. And then long story short, we

0:23:40.800 --> 0:23:42.880
<v Speaker 4>did a great job with that. I did not bring

0:23:42.920 --> 0:23:46.199
<v Speaker 4>that one to Hugo, respectfully. I actually brought it to

0:23:46.240 --> 0:23:49.159
<v Speaker 4>my father, whom I mentioned was a presser growing up.

0:23:49.359 --> 0:23:51.240
<v Speaker 4>And that's how you put us through. And it makes

0:23:51.240 --> 0:23:53.240
<v Speaker 4>me cry sometimes when I think about it, man, because

0:23:53.560 --> 0:23:56.199
<v Speaker 4>you know, I was embarrassed about my father's profession growing up,

0:23:57.280 --> 0:23:59.520
<v Speaker 4>and that is the same thing that ended up. I

0:23:59.560 --> 0:24:01.560
<v Speaker 4>was able to bring it. And my father's actually a

0:24:01.640 --> 0:24:05.800
<v Speaker 4>master presser. He's not like an like, he's a master presser.

0:24:05.880 --> 0:24:09.160
<v Speaker 4>Highly saw it out and he pressed these garments very beautifully.

0:24:09.160 --> 0:24:12.400
<v Speaker 4>I brought him back and then David Davenport, he gave

0:24:12.440 --> 0:24:15.160
<v Speaker 4>me what's called the rap, which is the final order

0:24:15.240 --> 0:24:18.679
<v Speaker 4>of the entire movie, when they clean every garment. And

0:24:18.720 --> 0:24:21.480
<v Speaker 4>he said, Yo, bring a truck. And I went upstate

0:24:21.960 --> 0:24:23.880
<v Speaker 4>and I brought an suv and he was like, John,

0:24:23.920 --> 0:24:27.280
<v Speaker 4>bring a truck. And I came back with a truck

0:24:27.680 --> 0:24:31.600
<v Speaker 4>and he opened up the fucking enormous garage door and

0:24:31.680 --> 0:24:35.520
<v Speaker 4>there was sacks of laundry maybe fifteen or twenty feet high,

0:24:35.560 --> 0:24:39.399
<v Speaker 4>literally every garment in the entire production. And when I

0:24:39.440 --> 0:24:41.719
<v Speaker 4>was looking at that, all I saw again it was

0:24:41.760 --> 0:24:45.880
<v Speaker 4>just giant money rags. Yeah, and that order, I think

0:24:45.920 --> 0:24:50.480
<v Speaker 4>we made twelve to fifteen thousand, and that was enough

0:24:50.480 --> 0:24:52.360
<v Speaker 4>for me to buy my first whip and just kind

0:24:52.359 --> 0:24:55.080
<v Speaker 4>of keep the motion going because after that he was like, Yo,

0:24:55.119 --> 0:24:57.480
<v Speaker 4>there's a new account town. If you get them, you're

0:24:57.480 --> 0:24:59.760
<v Speaker 4>gonna be okay. For a long time. That was Borwalk,

0:25:00.480 --> 0:25:02.480
<v Speaker 4>and then after that Law and Order, A Person Adventures,

0:25:02.480 --> 0:25:04.800
<v Speaker 4>White Collar, Made a Spider Man two, Ninja Turtle, Spike Lee,

0:25:04.880 --> 0:25:06.280
<v Speaker 4>Mike Tyson, Barclay Center.

0:25:08.720 --> 0:25:08.960
<v Speaker 3>Yeah.

0:25:09.000 --> 0:25:10.320
<v Speaker 5>But let me ask you this, because you all right,

0:25:10.359 --> 0:25:12.120
<v Speaker 5>you sold it for a million dollars, and I heard

0:25:12.160 --> 0:25:14.040
<v Speaker 5>you said that you sold it because you wasn't passionate,

0:25:14.320 --> 0:25:17.000
<v Speaker 5>but My thing is, you got a nice thing going,

0:25:17.200 --> 0:25:20.280
<v Speaker 5>you're making a lot of money. If you're not passionate,

0:25:20.280 --> 0:25:22.239
<v Speaker 5>why not just have somebody else run it and just

0:25:22.359 --> 0:25:23.200
<v Speaker 5>do something else.

0:25:23.040 --> 0:25:25.120
<v Speaker 4>Because it's not it's not really that simple. I don't

0:25:25.119 --> 0:25:27.359
<v Speaker 4>believe in that. In that, I don't believe in that.

0:25:28.480 --> 0:25:32.760
<v Speaker 4>I believe that you're either running things with a tremendous

0:25:33.160 --> 0:25:37.720
<v Speaker 4>energy and looking to grow, or you're slowly declining and

0:25:37.800 --> 0:25:41.200
<v Speaker 4>now you can have a system in place that makes

0:25:41.200 --> 0:25:44.080
<v Speaker 4>a decline very gradual so you can cash out a

0:25:44.119 --> 0:25:48.080
<v Speaker 4>lot over time. But I really think it's a myth

0:25:48.200 --> 0:25:50.359
<v Speaker 4>that you can have this you know business kind of on.

0:25:50.640 --> 0:25:53.600
<v Speaker 4>You know, you can have a little small business kind

0:25:53.600 --> 0:25:55.960
<v Speaker 4>of on that you've set up and you have you

0:25:56.040 --> 0:26:01.479
<v Speaker 4>deploy a manager. But that was not the way that

0:26:01.600 --> 0:26:04.920
<v Speaker 4>my business was set up. My business was very high touch,

0:26:05.400 --> 0:26:09.879
<v Speaker 4>specifically with the film industry, very high touch clientele. It

0:26:09.960 --> 0:26:12.119
<v Speaker 4>is not a hands off like it's a job we

0:26:12.160 --> 0:26:15.399
<v Speaker 4>need you at three like it's incredibly intense and the

0:26:15.440 --> 0:26:17.480
<v Speaker 4>only person who would deal with that shit is the owner.

0:26:18.359 --> 0:26:21.040
<v Speaker 2>And so how many staff did you have at the peak,

0:26:21.160 --> 0:26:23.080
<v Speaker 2>fifteen fifteen people?

0:26:24.280 --> 0:26:25.840
<v Speaker 4>You know, we had a creative director. I was very

0:26:25.880 --> 0:26:28.040
<v Speaker 4>creative with my hir and I had a branding guy,

0:26:28.119 --> 0:26:30.600
<v Speaker 4>I know what cleaners do? You guys know that as

0:26:30.640 --> 0:26:34.000
<v Speaker 4>a full time branding person, and he taught me I

0:26:34.119 --> 0:26:38.919
<v Speaker 4>credit to omesh personage from the Bronx Indian guy. He

0:26:39.040 --> 0:26:46.879
<v Speaker 4>taught me my initial appreciation for font, font typography, spacing,

0:26:47.080 --> 0:26:53.560
<v Speaker 4>brand touch points, you know with the product. And so anyway, yeah,

0:26:53.560 --> 0:26:55.240
<v Speaker 4>I sold that shit. Man. I sold it because it

0:26:55.320 --> 0:26:59.479
<v Speaker 4>was a headache and frankly, the macro environment was not

0:26:59.560 --> 0:27:02.199
<v Speaker 4>one that I wanted to I didn't want to be

0:27:02.240 --> 0:27:05.720
<v Speaker 4>in this business anymore because I saw a very bleak

0:27:05.880 --> 0:27:11.440
<v Speaker 4>future for the business. Because that was twenty fourteen, which

0:27:11.480 --> 0:27:13.880
<v Speaker 4>is when I sold the December third, twenty fourteen. That

0:27:14.119 --> 0:27:16.600
<v Speaker 4>was the time when it was not clear if it

0:27:16.600 --> 0:27:18.480
<v Speaker 4>would be Uber or lyft. I don't know if you

0:27:18.480 --> 0:27:20.760
<v Speaker 4>guys remember those days, but it was all about the

0:27:20.840 --> 0:27:22.639
<v Speaker 4>Uber for everything. It was Uber for this Uber for

0:27:22.680 --> 0:27:25.000
<v Speaker 4>that funding funding fun and I was like, damn, I'm

0:27:25.040 --> 0:27:27.200
<v Speaker 4>just looking at the picture and I was already going

0:27:27.240 --> 0:27:29.520
<v Speaker 4>toe to toe with these people and I'm like, damn,

0:27:30.200 --> 0:27:32.159
<v Speaker 4>I just don't see this fair and well like it

0:27:32.320 --> 0:27:35.040
<v Speaker 4>just it's clear to me that people are subsidizing their

0:27:35.080 --> 0:27:38.359
<v Speaker 4>operations with ridiculous amounts of venture capital. At that point,

0:27:38.440 --> 0:27:41.360
<v Speaker 4>I didn't have confidence in my ability to raise venture capital.

0:27:42.160 --> 0:27:44.280
<v Speaker 4>And you know, I was like, dude, I got some

0:27:44.600 --> 0:27:47.119
<v Speaker 4>decent that I built. Someone's willing to pay for it.

0:27:47.480 --> 0:27:51.639
<v Speaker 4>Let me just sell the shit million dollars. And I could.

0:27:51.640 --> 0:27:53.840
<v Speaker 4>That was a gross that was not the net ticket price.

0:27:54.640 --> 0:27:59.640
<v Speaker 4>But that was like to me, the power of narrative

0:27:59.800 --> 0:28:02.760
<v Speaker 4>and the power of confidence, and like, I started something

0:28:03.240 --> 0:28:05.119
<v Speaker 4>in my own mind. I started this shit at the

0:28:05.119 --> 0:28:09.080
<v Speaker 4>desk with my own mind, put some brand behind it,

0:28:09.680 --> 0:28:11.800
<v Speaker 4>bells and whistles, whatever the fuck you want to call it,

0:28:12.400 --> 0:28:16.560
<v Speaker 4>grew it, and a more experienced competitor and businessman whom

0:28:16.880 --> 0:28:18.919
<v Speaker 4>I mean, this guy was really one of the smartest

0:28:18.920 --> 0:28:21.439
<v Speaker 4>guys I know, a Mexican guy math. He was a

0:28:21.480 --> 0:28:25.479
<v Speaker 4>mathematician by trade, and he saw value in it, and

0:28:25.480 --> 0:28:28.920
<v Speaker 4>I sold it man, and at twenty one, at twenty one, yes, sir.

0:28:29.400 --> 0:28:31.320
<v Speaker 5>So all right, you just talked about VC. So this

0:28:31.359 --> 0:28:32.720
<v Speaker 5>is gonna bring us to our next time. We're gonna

0:28:32.720 --> 0:28:34.480
<v Speaker 5>talk about a bench of capital. That's what you're doing now.

0:28:34.480 --> 0:28:36.399
<v Speaker 5>And this is something that I'm really interested in because

0:28:36.920 --> 0:28:39.480
<v Speaker 5>we haven't really covered this in depth at all. So

0:28:39.960 --> 0:28:41.880
<v Speaker 5>he were gonna talk about that next, all right, So

0:28:41.920 --> 0:28:44.040
<v Speaker 5>now we're gonna talk about VC. So we talked about

0:28:44.120 --> 0:28:46.600
<v Speaker 5>vcs before. Previously we had an x NFL play shout

0:28:46.600 --> 0:28:49.880
<v Speaker 5>out to Mike Brown and he's doing equity crowdfunding and

0:28:49.920 --> 0:28:52.560
<v Speaker 5>he went to Duke. He used to work in Silicon Valley,

0:28:53.000 --> 0:28:57.480
<v Speaker 5>so he's Silicon Valley and we know. So yeah, he

0:28:57.480 --> 0:28:59.320
<v Speaker 5>told us about the whole VC process and all that.

0:28:59.440 --> 0:29:01.480
<v Speaker 5>But like I said, one of the good things about

0:29:01.560 --> 0:29:03.240
<v Speaker 5>Ernie Lisia is that it's kind of turned into like

0:29:03.240 --> 0:29:05.600
<v Speaker 5>a college course in sorts where it's like, you know,

0:29:05.680 --> 0:29:08.280
<v Speaker 5>a lot of these things you hear about, but nobody

0:29:08.280 --> 0:29:12.160
<v Speaker 5>really knows the inner workings of it. And from his perspective,

0:29:12.160 --> 0:29:14.640
<v Speaker 5>he told us to the outside end, but you actually

0:29:14.840 --> 0:29:18.360
<v Speaker 5>have a VC firm. Yes, so this is we're just

0:29:18.400 --> 0:29:21.200
<v Speaker 5>getting the apple sauce from the apple orchard. Yes, So

0:29:21.440 --> 0:29:23.800
<v Speaker 5>this is dope. So all right, how did all right,

0:29:23.880 --> 0:29:25.520
<v Speaker 5>so we gotta tell a story on this.

0:29:25.560 --> 0:29:27.320
<v Speaker 3>How did you? How did you come into the venture

0:29:27.360 --> 0:29:28.000
<v Speaker 3>capital world?

0:29:28.720 --> 0:29:34.480
<v Speaker 4>Okay, so after I sold my business, I at that

0:29:34.600 --> 0:29:37.440
<v Speaker 4>time was very passionate about building some kind of startup

0:29:37.480 --> 0:29:40.680
<v Speaker 4>community in Harlem. So I did that, and it initially

0:29:40.720 --> 0:29:42.640
<v Speaker 4>started as like a little meetup that we call co

0:29:42.760 --> 0:29:46.320
<v Speaker 4>found Harlem, and it just kind of turned into you know,

0:29:46.400 --> 0:29:48.080
<v Speaker 4>at that point, because I sold the business, I had

0:29:48.080 --> 0:29:50.200
<v Speaker 4>a lot more bandwidth and creativity and runway, and I

0:29:50.280 --> 0:29:52.560
<v Speaker 4>wanted to make some shit happen. So we added a

0:29:52.600 --> 0:29:55.560
<v Speaker 4>little business model behind it. It was not a great one,

0:29:55.880 --> 0:29:59.200
<v Speaker 4>but it turned into incubator of sorts. I convinced a

0:29:59.280 --> 0:30:02.080
<v Speaker 4>developer to g me space for free. By the way,

0:30:02.120 --> 0:30:05.480
<v Speaker 4>this is a thing you can I learned. I learned

0:30:05.520 --> 0:30:07.400
<v Speaker 4>a lot to co Found Harlem because it was a

0:30:07.440 --> 0:30:10.560
<v Speaker 4>non for profit that focused on economic development, so improve

0:30:10.560 --> 0:30:14.120
<v Speaker 4>in the area. And so that that got me to

0:30:14.160 --> 0:30:15.760
<v Speaker 4>interface with politics.

0:30:15.960 --> 0:30:19.080
<v Speaker 5>So cupful because people might not be familiar. Co Found

0:30:19.080 --> 0:30:22.600
<v Speaker 5>Harlem was an initiative that you started to help small

0:30:22.640 --> 0:30:24.440
<v Speaker 5>businesses in Harlem get capital right.

0:30:24.560 --> 0:30:27.160
<v Speaker 4>Yes, it was the first incubator in Harlem, and so

0:30:27.320 --> 0:30:31.600
<v Speaker 4>that kind of project I stepped up a little bit

0:30:31.600 --> 0:30:33.560
<v Speaker 4>in my thinking. I got a little bit more macro

0:30:33.640 --> 0:30:36.800
<v Speaker 4>because I was going from just operating a business. Now

0:30:36.840 --> 0:30:40.400
<v Speaker 4>I'm helping other people operate. So I'm interfacing with politics

0:30:40.640 --> 0:30:43.560
<v Speaker 4>because I discovered, oh shit, politicians care about the area.

0:30:43.560 --> 0:30:48.520
<v Speaker 4>Getting better, but more important than politicians. Politicians have power,

0:30:49.200 --> 0:30:52.200
<v Speaker 4>but real estate developers have a very long term interest

0:30:52.240 --> 0:30:55.200
<v Speaker 4>in the area. I discovered longer term than politicians because

0:30:55.200 --> 0:30:57.880
<v Speaker 4>politics are just like looking for the quick election. Yeah,

0:30:57.960 --> 0:31:01.280
<v Speaker 4>these members are here forty fifty years. And so I

0:31:01.360 --> 0:31:05.760
<v Speaker 4>pitched a developer to give me free space. And you know,

0:31:05.800 --> 0:31:07.200
<v Speaker 4>it was a very bold thing, and it was like

0:31:07.280 --> 0:31:08.720
<v Speaker 4>why would I do that. I was like, well, because

0:31:08.720 --> 0:31:11.520
<v Speaker 4>I'm gonna incubate businesses and the only thing I'm going

0:31:11.560 --> 0:31:13.800
<v Speaker 4>to ask for them is that they stay in Harlem. Yeah.

0:31:13.800 --> 0:31:15.040
<v Speaker 2>I think that's one of the things you said, right,

0:31:15.040 --> 0:31:17.760
<v Speaker 2>that the businesses had to put their headquarters in Harlem.

0:31:17.880 --> 0:31:20.520
<v Speaker 4>Yes, for four years. It ended up. It started as four,

0:31:20.520 --> 0:31:23.320
<v Speaker 4>I ended up being two, okay, and so anyway, so yeah,

0:31:23.320 --> 0:31:25.200
<v Speaker 4>so we were able to get free space because they

0:31:25.240 --> 0:31:27.400
<v Speaker 4>were like, all right, bet, like, we want the value

0:31:27.440 --> 0:31:30.280
<v Speaker 4>of our proper our main business residence is to go up.

0:31:30.520 --> 0:31:32.440
<v Speaker 4>So they had some retail that was opened, so our

0:31:32.520 --> 0:31:35.080
<v Speaker 4>bet cool take that. So yeah, so we got the space,

0:31:35.120 --> 0:31:37.000
<v Speaker 4>we got mentors, we made a little bit of buzz,

0:31:37.040 --> 0:31:39.200
<v Speaker 4>we got companies applying. All of a sudden, I'm running

0:31:39.240 --> 0:31:42.280
<v Speaker 4>an incubator. It's a non for profit incubator. I'm raising

0:31:42.320 --> 0:31:45.720
<v Speaker 4>money through grants and fund you know, and sponsors and

0:31:45.720 --> 0:31:49.600
<v Speaker 4>shit like that. And I inadvertently got into running kind

0:31:49.600 --> 0:31:51.160
<v Speaker 4>of an event's business. We had a little bit of

0:31:51.160 --> 0:31:53.320
<v Speaker 4>an event. That's when I really started dipping my toe

0:31:53.320 --> 0:31:57.120
<v Speaker 4>into content and building a community type business. And then

0:31:57.160 --> 0:32:02.920
<v Speaker 4>eventually one of my biggest don owners who I didn't know.

0:32:03.040 --> 0:32:06.760
<v Speaker 4>His name is David Rose. He's a very prolific angel investor.

0:32:06.800 --> 0:32:09.160
<v Speaker 4>He's one of the most active in New York City.

0:32:09.480 --> 0:32:11.640
<v Speaker 4>He pretty much was like, Yo, I come from a

0:32:11.640 --> 0:32:13.920
<v Speaker 4>big real estate family. You might not know that, but

0:32:14.240 --> 0:32:15.880
<v Speaker 4>I want you to do what you did for Ko

0:32:15.960 --> 0:32:18.520
<v Speaker 4>found Harlem for us and learn the investment side.

0:32:18.560 --> 0:32:20.120
<v Speaker 2>Can you describe what an angel funder?

0:32:20.400 --> 0:32:25.360
<v Speaker 4>Yes, So, an angel investor invests in startups with their

0:32:25.400 --> 0:32:30.400
<v Speaker 4>own money. A VC, a venture capitalist invest in startups

0:32:30.640 --> 0:32:33.920
<v Speaker 4>with other people's money. And that's really the key distinction.

0:32:34.520 --> 0:32:37.480
<v Speaker 4>And so David Rose is a prolific angel and he

0:32:37.600 --> 0:32:41.000
<v Speaker 4>wanted me to He wanted to recruit me and help

0:32:41.040 --> 0:32:44.760
<v Speaker 4>him run a fund as a real estate technology fund.

0:32:44.880 --> 0:32:48.040
<v Speaker 4>So we invested in real estate technology, not physical stuff,

0:32:48.560 --> 0:32:50.880
<v Speaker 4>property management software. And I told Dave, I was like Yo,

0:32:50.960 --> 0:32:52.400
<v Speaker 4>I don't really know any of this. He's like, John,

0:32:52.440 --> 0:32:55.280
<v Speaker 4>we know real estate. You bring your energy. So anyway,

0:32:55.280 --> 0:32:58.480
<v Speaker 4>fast forward a year, we learned, you know, we made

0:32:58.520 --> 0:33:01.680
<v Speaker 4>some good investments and like I sourced the deals on

0:33:01.720 --> 0:33:03.640
<v Speaker 4>my own, like I did everything on my own because

0:33:03.640 --> 0:33:06.160
<v Speaker 4>they were too busy to really give me guidance. But

0:33:06.240 --> 0:33:08.600
<v Speaker 4>the most important thing I learned had nothing to do

0:33:08.680 --> 0:33:11.920
<v Speaker 4>with the job itself. It had to do with like

0:33:12.240 --> 0:33:17.800
<v Speaker 4>the family had generational wealth, like they controlled thou dozens

0:33:17.840 --> 0:33:20.920
<v Speaker 4>of thousands of units in New York City. I mean

0:33:21.000 --> 0:33:23.239
<v Speaker 4>truly a legacy family, man. I mean when you go

0:33:23.360 --> 0:33:27.560
<v Speaker 4>to you know, Dizzey's Club, that's that's the Rose. You

0:33:27.600 --> 0:33:29.480
<v Speaker 4>know the Rose Hall. If you go to the American

0:33:29.520 --> 0:33:32.520
<v Speaker 4>Museum of Natural History, that's the Rose Planetarium. Like they're

0:33:32.560 --> 0:33:35.320
<v Speaker 4>embedded in what it means to be New York. Mister Rose,

0:33:35.360 --> 0:33:38.680
<v Speaker 4>as David's father, large and part funded Martin Luther King

0:33:38.760 --> 0:33:41.880
<v Speaker 4>Junior's original Millenmire in March in nineteen sixty three. I mean,

0:33:41.880 --> 0:33:45.360
<v Speaker 4>we're talking about a legacy family. And so at that point, man,

0:33:45.400 --> 0:33:47.040
<v Speaker 4>I really caught the bug. I was like, yo, I

0:33:47.120 --> 0:33:50.840
<v Speaker 4>gotta go do this for us. So I went back uptown.

0:33:51.600 --> 0:33:54.000
<v Speaker 4>I met, I met the fellas whom are now my

0:33:54.040 --> 0:33:57.960
<v Speaker 4>partners at ACP. They had their own background. They come

0:33:58.000 --> 0:34:02.160
<v Speaker 4>from a more academic background, and they were fortunate to

0:34:02.200 --> 0:34:05.880
<v Speaker 4>be exposed to finance early. You know, I learned this

0:34:05.920 --> 0:34:08.799
<v Speaker 4>shit through being an entrepreneur. They learned this through like

0:34:09.239 --> 0:34:12.360
<v Speaker 4>there are pathways and programs in place. There's one called

0:34:12.520 --> 0:34:16.320
<v Speaker 4>SEO and there's one called MLT. These are placement programs

0:34:16.320 --> 0:34:19.920
<v Speaker 4>specifically for people of color to break into investment banking.

0:34:20.200 --> 0:34:23.319
<v Speaker 4>That's only in New York or this is nationwide, I

0:34:23.360 --> 0:34:27.719
<v Speaker 4>want to say. And and yeah, these brothers actually all

0:34:27.800 --> 0:34:30.080
<v Speaker 4>you know, they the group was bigger back then. They

0:34:30.200 --> 0:34:33.720
<v Speaker 4>all met in these placement programs, all working for banks,

0:34:33.760 --> 0:34:37.279
<v Speaker 4>Goldman Bank of America, shit like that, and they decided, like, yo,

0:34:37.360 --> 0:34:39.600
<v Speaker 4>let's put our bread to work. So that you know,

0:34:39.640 --> 0:34:41.680
<v Speaker 4>they started doing that, and they kept hearing about me,

0:34:42.080 --> 0:34:45.160
<v Speaker 4>because that's one thing. If you are top of mind

0:34:45.400 --> 0:34:47.919
<v Speaker 4>at whatever you do, you're going to get more opportunities.

0:34:48.760 --> 0:34:51.480
<v Speaker 4>And so you know, eventually they came on my radar.

0:34:51.560 --> 0:34:55.480
<v Speaker 4>We met, and we started investing together. And one thing

0:34:55.480 --> 0:34:59.040
<v Speaker 4>to clarify, and this is really important because you know,

0:34:59.080 --> 0:35:01.239
<v Speaker 4>people want to get into VC, like they think, if

0:35:01.239 --> 0:35:02.880
<v Speaker 4>you don't have a million dollars, you can't do it.

0:35:03.320 --> 0:35:05.960
<v Speaker 4>But in reality, our first few checks were like ten

0:35:06.080 --> 0:35:10.480
<v Speaker 4>or fifteen K by the way, split between like five guys,

0:35:11.000 --> 0:35:13.520
<v Speaker 4>So it's like it was like literally two or three

0:35:13.600 --> 0:35:14.080
<v Speaker 4>k each.

0:35:14.560 --> 0:35:16.480
<v Speaker 3>So that's what you all came to the table, like

0:35:16.520 --> 0:35:17.439
<v Speaker 3>three thousand piece.

0:35:17.760 --> 0:35:24.800
<v Speaker 4>Yes, that's enough right now. Now, Look, if you can't

0:35:25.120 --> 0:35:27.520
<v Speaker 4>make slash save enough to make two or three K,

0:35:27.560 --> 0:35:31.399
<v Speaker 4>you're not ready. But if you're not bullshitting and you're

0:35:31.440 --> 0:35:34.560
<v Speaker 4>serious about your shit, you can stack two K, two

0:35:34.680 --> 0:35:35.120
<v Speaker 4>or three K.

0:35:35.400 --> 0:35:37.440
<v Speaker 2>So five of you come up with three thousand.

0:35:37.480 --> 0:35:38.160
<v Speaker 3>You got fifteen.

0:35:38.320 --> 0:35:40.839
<v Speaker 4>We put together fifteen and then what's the vision now?

0:35:41.040 --> 0:35:44.080
<v Speaker 4>And then and then it's like all right, bet, now

0:35:44.360 --> 0:35:47.920
<v Speaker 4>where do we put it? You know? And so the

0:35:48.080 --> 0:35:51.800
<v Speaker 4>quality of your deal flow increases over time. But at first,

0:35:51.880 --> 0:35:55.080
<v Speaker 4>you know, we caught word of a local cafe that

0:35:55.280 --> 0:35:57.520
<v Speaker 4>was looking for money. Cool, We put a little bit

0:35:57.520 --> 0:35:59.640
<v Speaker 4>of bread into that, got to experience what it was

0:35:59.719 --> 0:36:03.160
<v Speaker 4>like to be invested in small business. We caught word

0:36:03.200 --> 0:36:05.920
<v Speaker 4>of a dental practice, a guy that was buying in

0:36:06.000 --> 0:36:09.759
<v Speaker 4>dental practice is looking for money. Boom, you know, because

0:36:09.800 --> 0:36:12.160
<v Speaker 4>you start communicating y'all'm looking for businesses to invest in.

0:36:12.239 --> 0:36:14.560
<v Speaker 4>You do get deal flow back. You put it out

0:36:14.560 --> 0:36:17.680
<v Speaker 4>and you start getting deal flow back. We caught word

0:36:17.719 --> 0:36:19.600
<v Speaker 4>of a venture company, and so we invested in a

0:36:19.680 --> 0:36:21.240
<v Speaker 4>couple of different a few different assets.

0:36:21.800 --> 0:36:23.799
<v Speaker 2>The initial fifteen nohere gross as we go.

0:36:24.239 --> 0:36:27.560
<v Speaker 4>So it was like we did capital calls, which is like, hey,

0:36:28.040 --> 0:36:29.799
<v Speaker 4>we found a deal, it's time to put bread up.

0:36:30.480 --> 0:36:32.200
<v Speaker 4>So that's a capital call, and you hit the whole group.

0:36:32.239 --> 0:36:34.600
<v Speaker 4>Between all the five of you, there was like six six,

0:36:35.160 --> 0:36:36.000
<v Speaker 4>there was like six all right.

0:36:36.040 --> 0:36:37.720
<v Speaker 5>So now it's like, okay, we put the first fifteen,

0:36:37.880 --> 0:36:39.839
<v Speaker 5>and you have to put five more in each.

0:36:40.360 --> 0:36:42.520
<v Speaker 4>Yeah, I mean five was a lot for me at

0:36:42.520 --> 0:36:45.239
<v Speaker 4>the time, but like you know, it was like, hey,

0:36:45.280 --> 0:36:48.160
<v Speaker 4>we found a deal, who can put what was really

0:36:48.239 --> 0:36:50.799
<v Speaker 4>the question? And like if I was more liquid at

0:36:50.840 --> 0:36:52.719
<v Speaker 4>that time and really liked the deal, I might have

0:36:52.800 --> 0:36:55.200
<v Speaker 4>put four. And then we might have had a partner

0:36:55.200 --> 0:36:56.919
<v Speaker 4>who was like, yoh, I can only put one right now,

0:36:57.360 --> 0:37:00.720
<v Speaker 4>and so it would vary and so yeah, over time.

0:37:01.200 --> 0:37:01.400
<v Speaker 2>You know.

0:37:01.480 --> 0:37:03.720
<v Speaker 4>The interesting thing, and this is credit to my partners

0:37:03.760 --> 0:37:07.520
<v Speaker 4>at harm Capital, is like we always treated twenty five

0:37:07.640 --> 0:37:12.879
<v Speaker 4>k like it was twenty five million. And now we've

0:37:12.920 --> 0:37:15.799
<v Speaker 4>closed on twenty five million. So you know, so it's

0:37:15.840 --> 0:37:19.920
<v Speaker 4>just crazy because you got to treat the baby step

0:37:20.080 --> 0:37:21.960
<v Speaker 4>with as much respect as the end goal.

0:37:22.160 --> 0:37:23.839
<v Speaker 5>So how did you all right, how did that work out?

0:37:23.880 --> 0:37:26.399
<v Speaker 5>As far as the first early like look at even

0:37:26.440 --> 0:37:28.160
<v Speaker 5>the first deal that you had a dentist office or

0:37:28.160 --> 0:37:30.480
<v Speaker 5>the bakery. You gave him like what like five thousand

0:37:30.520 --> 0:37:32.040
<v Speaker 5>dollars something like that or yeah.

0:37:32.120 --> 0:37:34.359
<v Speaker 4>So, so the way the actual mechanics is, I know

0:37:35.239 --> 0:37:39.040
<v Speaker 4>Yl likes to get into that is so the way

0:37:39.040 --> 0:37:41.800
<v Speaker 4>you do it is you form an LLC. Okay, okay,

0:37:41.920 --> 0:37:45.319
<v Speaker 4>and so each of the partners become members in that LLC.

0:37:45.719 --> 0:37:49.040
<v Speaker 4>You name that shit whatever you want. And yeah, so

0:37:49.080 --> 0:37:51.399
<v Speaker 4>it ends up being what we call an SPV, which

0:37:51.440 --> 0:37:54.320
<v Speaker 4>is a special purpose vehicle, which is pretty much fancy

0:37:54.320 --> 0:37:58.560
<v Speaker 4>talk for saying like, hey, anytime we invest in said company,

0:37:58.600 --> 0:38:01.839
<v Speaker 4>it's gonna come through this entity, right, And the LLC

0:38:02.160 --> 0:38:05.760
<v Speaker 4>is a fascinating legal entity because it's a flow through entity.

0:38:06.280 --> 0:38:09.279
<v Speaker 4>So it's like you become members in that and like

0:38:09.760 --> 0:38:14.000
<v Speaker 4>you on the company, Let's say we invest in you know,

0:38:14.040 --> 0:38:18.240
<v Speaker 4>the cafe on that company's docs, on the formation documents

0:38:18.239 --> 0:38:21.760
<v Speaker 4>for that company, they're going to see Harlem Capital Partners

0:38:21.960 --> 0:38:25.719
<v Speaker 4>LLC on there. But then you know, if we make

0:38:25.760 --> 0:38:29.920
<v Speaker 4>a profit or a loss, the profits and or losses

0:38:29.960 --> 0:38:33.080
<v Speaker 4>from that entity flows through to each of the individual partners.

0:38:33.400 --> 0:38:36.960
<v Speaker 4>So it's really just like a like a shield. It's

0:38:37.000 --> 0:38:40.000
<v Speaker 4>like a step step away, it's removed. So anyway you

0:38:40.040 --> 0:38:43.600
<v Speaker 4>make an LLC, you invite whomever for anyone listening who

0:38:43.640 --> 0:38:46.120
<v Speaker 4>wants to create a little syndicate, that's what you call it,

0:38:46.480 --> 0:38:50.360
<v Speaker 4>an angel syndicate. You invite homies that you think are serious,

0:38:50.560 --> 0:38:53.040
<v Speaker 4>you join the LLC, you brand it, come up with

0:38:53.080 --> 0:38:55.840
<v Speaker 4>a cool name, and then you start communicating it to

0:38:55.880 --> 0:38:57.720
<v Speaker 4>the world at large that you're looking to invest.

0:38:58.360 --> 0:39:01.920
<v Speaker 2>And this episode is brought to you by P and

0:39:01.960 --> 0:39:05.040
<v Speaker 2>C Bank. A lot of people think podcasts about work

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<v Speaker 2>P and C Bank National Association member FDIC ernests What's Up?

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0:39:46.800 --> 0:39:50.000
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0:40:50.440 --> 0:40:54.120
<v Speaker 6>An illegal alien from Guatemala charged with raping a child

0:40:54.160 --> 0:40:57.960
<v Speaker 6>in Massachusetts. An MS thirteen gang member from El Salvador

0:40:58.200 --> 0:41:02.319
<v Speaker 6>accused of murdering a Texas. Man of Venezuelan charged with

0:41:02.400 --> 0:41:06.279
<v Speaker 6>filming and selling child pornography in Michigan. These are just

0:41:06.400 --> 0:41:10.160
<v Speaker 6>some of the heinous migrant criminals caught because of President

0:41:10.200 --> 0:41:13.719
<v Speaker 6>Donald J. Trump's leadership. I'm Christy Noman, the United States

0:41:13.800 --> 0:41:18.600
<v Speaker 6>Secretary of Homeland Security. Under President Trump, attempted illegal border

0:41:18.600 --> 0:41:22.160
<v Speaker 6>crossings are at the lowest levels ever recorded, and over

0:41:22.239 --> 0:41:25.440
<v Speaker 6>one hundred thousand illegal aliens have been arrested. If you

0:41:25.520 --> 0:41:29.360
<v Speaker 6>are here illegally, your next you will be fined nearly

0:41:29.440 --> 0:41:33.479
<v Speaker 6>one thousand dollars a day, imprisoned, and deported. You will

0:41:33.520 --> 0:41:37.160
<v Speaker 6>never return. But if you register using our CBP home

0:41:37.200 --> 0:41:40.560
<v Speaker 6>app and leave now, you could be allowed to return legally.

0:41:40.960 --> 0:41:41.759
<v Speaker 6>Do what's right.

0:41:42.320 --> 0:41:43.200
<v Speaker 4>Leave now.

0:41:43.520 --> 0:41:47.880
<v Speaker 6>Under President Trump, America's laws, border and families will.

0:41:47.680 --> 0:41:50.560
<v Speaker 2>Be protected sponsored by the United States Department of Homeland Security.

0:41:50.640 --> 0:41:52.960
<v Speaker 4>You know, and then you look for deal flow and

0:41:53.000 --> 0:41:54.400
<v Speaker 4>that's you know that's how it works, and so we

0:41:54.440 --> 0:41:56.839
<v Speaker 4>would put ten k, and then I think we ended

0:41:56.920 --> 0:42:00.960
<v Speaker 4>up doing like six deals as angels, ten, fifteen, twenty

0:42:01.000 --> 0:42:03.120
<v Speaker 4>if it was a hot deal ten if I was

0:42:03.440 --> 0:42:08.560
<v Speaker 4>low on cash, and like, man, it's not really about

0:42:09.040 --> 0:42:10.960
<v Speaker 4>we haven't seen a dollar, by the way, from any

0:42:10.960 --> 0:42:15.239
<v Speaker 4>of the Angel investments we've made. In fact, we've lost money. Okay, yeah,

0:42:15.560 --> 0:42:18.719
<v Speaker 4>the cafe closed down. You know, we've seen some distributions

0:42:18.760 --> 0:42:20.520
<v Speaker 4>from the dental practice, but not really a lot of

0:42:20.520 --> 0:42:23.320
<v Speaker 4>stuff doesn't work out according to plan. But the most

0:42:23.360 --> 0:42:27.839
<v Speaker 4>important thing is being on the ride. Like I don't

0:42:27.840 --> 0:42:30.279
<v Speaker 4>listen to anyone in business who hasn't lost more money

0:42:30.320 --> 0:42:34.680
<v Speaker 4>than me. Like, you gotta get skin in the game.

0:42:34.719 --> 0:42:36.239
<v Speaker 4>I can't take you serious if you don't have skin

0:42:36.360 --> 0:42:40.080
<v Speaker 4>in the game. Like like you guys got cameras, you

0:42:40.120 --> 0:42:41.720
<v Speaker 4>got mics.

0:42:41.120 --> 0:42:44.239
<v Speaker 5>A lot of money, this would have worked out.

0:42:44.480 --> 0:42:46.799
<v Speaker 4>Like you know, you got the focus, right, you got

0:42:46.800 --> 0:42:48.279
<v Speaker 4>the mac put like you know what I'm saying, Like

0:42:48.320 --> 0:42:50.440
<v Speaker 4>you guys are putting bread in. You put bread up

0:42:50.480 --> 0:42:54.279
<v Speaker 4>to buy the shirts. You're putting bread in, right, and

0:42:54.280 --> 0:42:57.120
<v Speaker 4>and so anyway, with the Angel investing thing, it's a

0:42:57.120 --> 0:42:59.920
<v Speaker 4>lot more important to get in the game and you

0:43:00.200 --> 0:43:01.880
<v Speaker 4>will not know. This is why at the beginning you

0:43:01.880 --> 0:43:03.359
<v Speaker 4>asked me, like, yo, if I got any book tips,

0:43:03.360 --> 0:43:04.960
<v Speaker 4>and I said, I don't really fuck with books, because

0:43:05.280 --> 0:43:08.879
<v Speaker 4>you will not know what acid class you like until

0:43:08.920 --> 0:43:11.680
<v Speaker 4>you invest in it. I thought I loved investing in

0:43:11.760 --> 0:43:13.880
<v Speaker 4>small business, and then I discovered I really don't like

0:43:13.920 --> 0:43:16.080
<v Speaker 4>this shit because when I was meeting with the business owners,

0:43:16.120 --> 0:43:18.359
<v Speaker 4>we were talking about napkins and forks, and I'm like, dude,

0:43:19.000 --> 0:43:21.040
<v Speaker 4>you know I want to talk about scale, and you know,

0:43:21.239 --> 0:43:25.440
<v Speaker 4>like this just wasn't wasn't for me. I discovered that

0:43:25.520 --> 0:43:27.840
<v Speaker 4>I like real estate a lot. I love real estate.

0:43:28.200 --> 0:43:30.200
<v Speaker 4>I wouldn't have known that unless I jumped in. So

0:43:30.239 --> 0:43:31.960
<v Speaker 4>I'm a really big fan of jumping in. And if

0:43:32.000 --> 0:43:33.880
<v Speaker 4>you can't jump in a big scale, you jumping in

0:43:33.880 --> 0:43:37.040
<v Speaker 4>a small scale. Just jump in. So how does that work.

0:43:36.880 --> 0:43:39.080
<v Speaker 2>When it's six of you right as far as decisions,

0:43:39.400 --> 0:43:41.799
<v Speaker 2>is it like majority or if it's like you know what,

0:43:41.920 --> 0:43:43.680
<v Speaker 2>you don't like it, you're just not part of this deal.

0:43:43.880 --> 0:43:46.359
<v Speaker 4>Yeah, So it has changed over time. So when we

0:43:46.360 --> 0:43:49.880
<v Speaker 4>were an angel syndicate, it was like, hey, are you interested?

0:43:50.000 --> 0:43:53.520
<v Speaker 4>Some folks might have said no, but also you know,

0:43:53.560 --> 0:43:56.080
<v Speaker 4>going back to this business is really a people first thing.

0:43:56.560 --> 0:43:58.600
<v Speaker 4>You know, it's also respect for your partners, because your

0:43:58.600 --> 0:44:01.160
<v Speaker 4>partner might find a good deal and you know, might

0:44:01.160 --> 0:44:03.839
<v Speaker 4>have gotten in a good rapport with that founder and

0:44:03.880 --> 0:44:06.920
<v Speaker 4>then two months in it's time to invest, and like,

0:44:07.360 --> 0:44:09.360
<v Speaker 4>you know, I want to support the fact that my

0:44:09.440 --> 0:44:12.000
<v Speaker 4>partner is excited about this deal and I'm gonna put

0:44:12.120 --> 0:44:14.239
<v Speaker 4>I'm not gonna step up big. I might put up

0:44:14.280 --> 0:44:17.040
<v Speaker 4>a thousand and be like yo, all right, cool, you know,

0:44:17.400 --> 0:44:21.120
<v Speaker 4>put that in the deal. Conversely, when it's a hot deal,

0:44:21.200 --> 0:44:24.359
<v Speaker 4>when it's by the way, hot deals, you're not they're

0:44:24.400 --> 0:44:27.919
<v Speaker 4>not pitching you, you're pitching them to get in. Hot

0:44:27.920 --> 0:44:32.120
<v Speaker 4>deals are oversubscribed, meaning a company typically will raise a

0:44:32.160 --> 0:44:36.359
<v Speaker 4>finite amount of capital that's what we call around at

0:44:36.400 --> 0:44:40.000
<v Speaker 4>a fixed evaluation. Okay, so they'll say, hey, I'm raising

0:44:40.120 --> 0:44:43.000
<v Speaker 4>one point five million dollars at an eight million dollar valuation,

0:44:43.400 --> 0:44:45.680
<v Speaker 4>i e. They're giving away twenty percent of the company.

0:44:46.320 --> 0:44:49.520
<v Speaker 4>And then if it's a hot deal, you get good

0:44:49.920 --> 0:44:55.799
<v Speaker 4>funds in investing and so like a fund you know,

0:44:55.960 --> 0:44:59.799
<v Speaker 4>is like for anyone maybe doesn't know, is like you know,

0:45:00.320 --> 0:45:03.240
<v Speaker 4>entrepreneurs who go out there and raise money from the market,

0:45:03.400 --> 0:45:07.600
<v Speaker 4>you know, in institutions and Dowmons shit like that, and

0:45:07.719 --> 0:45:09.920
<v Speaker 4>you know they have a great brand name. And over time,

0:45:10.040 --> 0:45:14.080
<v Speaker 4>especially from Silicon Valley, you've had prestige funds emerge. These

0:45:14.120 --> 0:45:16.480
<v Speaker 4>are funds that have proven track record that they know

0:45:16.520 --> 0:45:22.080
<v Speaker 4>how to spot winners Sequoia, Benchmark, Kleiner Perkins whenever you

0:45:22.160 --> 0:45:24.799
<v Speaker 4>see them on the cap table. The cap table is

0:45:24.920 --> 0:45:28.880
<v Speaker 4>short for capitalization table, which is the page on your

0:45:28.960 --> 0:45:32.920
<v Speaker 4>company's documents that shows who owns what. And so the

0:45:32.960 --> 0:45:35.880
<v Speaker 4>cap table, you'll see a list and it'll say NAS

0:45:36.040 --> 0:45:40.200
<v Speaker 4>invested fifty k owns two. Yeah, and so he also

0:45:40.200 --> 0:45:42.759
<v Speaker 4>invests an angel, you know, such and such invested this,

0:45:43.040 --> 0:45:45.239
<v Speaker 4>So the cap table. So we have this thing in VC.

0:45:45.440 --> 0:45:48.000
<v Speaker 4>You want to be on cap tables. You know, like

0:45:48.040 --> 0:45:49.839
<v Speaker 4>a lot of motherfuckers talking shit, But I never see

0:45:49.840 --> 0:45:52.360
<v Speaker 4>you on the cap table. You know, you might be

0:45:52.360 --> 0:45:53.960
<v Speaker 4>at the club table, but I se you at the

0:45:53.960 --> 0:45:54.480
<v Speaker 4>cat table.

0:45:54.480 --> 0:45:55.320
<v Speaker 3>They at the crap table.

0:45:55.440 --> 0:46:03.440
<v Speaker 4>Yeah right right, so that's good on the table. So

0:46:03.440 --> 0:46:09.400
<v Speaker 4>so so anyway, Yeah, when you see a marquee fund,

0:46:09.600 --> 0:46:11.560
<v Speaker 4>meaning a top fund on the cap table, it's a

0:46:11.560 --> 0:46:14.880
<v Speaker 4>competitive deal. That founder has options and we were fortunate

0:46:15.000 --> 0:46:17.879
<v Speaker 4>a couple of times to squeeze into a very competitive deal.

0:46:18.640 --> 0:46:21.080
<v Speaker 4>And in those deals, when a deal is hot, you

0:46:21.120 --> 0:46:23.440
<v Speaker 4>want to make sure you as much as it costs you.

0:46:23.480 --> 0:46:25.320
<v Speaker 4>I don't care if you got to pawn your fucking watch,

0:46:26.080 --> 0:46:28.040
<v Speaker 4>get in the deal in as big of a way

0:46:28.080 --> 0:46:30.360
<v Speaker 4>as you can. You might lose that money. I'm not

0:46:30.360 --> 0:46:33.280
<v Speaker 4>gonna lie. But when you can get a good amount

0:46:33.320 --> 0:46:36.880
<v Speaker 4>of exposure into that deal, you know those deals that

0:46:36.960 --> 0:46:38.319
<v Speaker 4>end up doing ten twenty x.

0:46:39.200 --> 0:46:41.000
<v Speaker 3>I'm gonna ask you a question for some good deals

0:46:41.560 --> 0:46:42.319
<v Speaker 3>before I forget this.

0:46:42.600 --> 0:46:44.480
<v Speaker 5>The reason the reason why I like this podcast is

0:46:44.480 --> 0:46:46.279
<v Speaker 5>that we get to interview people and nobody. Like the

0:46:46.360 --> 0:46:48.200
<v Speaker 5>last guest that we had was talking about stock Shot

0:46:48.280 --> 0:46:51.600
<v Speaker 5>the Wallshet Trapper and he was saying how it is

0:46:51.680 --> 0:46:53.839
<v Speaker 5>excites him and like you I could see like it's

0:46:53.880 --> 0:46:55.160
<v Speaker 5>like you seen paid in full before.

0:46:55.280 --> 0:46:58.880
<v Speaker 4>Yeah, okay, so so and.

0:46:58.960 --> 0:47:00.479
<v Speaker 3>Mitch he was like, I love a game.

0:47:00.840 --> 0:47:03.560
<v Speaker 5>Obviously he was somebody illegal game, but business is like

0:47:03.600 --> 0:47:05.120
<v Speaker 5>a it's like a competitive sport.

0:47:05.320 --> 0:47:05.560
<v Speaker 4>Yep.

0:47:05.640 --> 0:47:08.480
<v Speaker 5>So it's like that's what I really loved. Like even

0:47:08.480 --> 0:47:10.440
<v Speaker 5>with Steve Jobs when he said that it's the process

0:47:10.440 --> 0:47:11.440
<v Speaker 5>that really excites.

0:47:11.160 --> 0:47:12.640
<v Speaker 3>Him, not even getting it.

0:47:12.880 --> 0:47:15.560
<v Speaker 5>Is not the journey, and it's like for people I

0:47:15.560 --> 0:47:18.160
<v Speaker 5>really want everybody to understand, even like with the podcast,

0:47:18.200 --> 0:47:21.000
<v Speaker 5>it's like it's ups and downs, but it's an exciting

0:47:21.120 --> 0:47:23.200
<v Speaker 5>rise and I could tell it. I could see the

0:47:23.239 --> 0:47:25.440
<v Speaker 5>excitement when you're telling a story, and it's like for

0:47:25.520 --> 0:47:29.880
<v Speaker 5>people that have never been entrepreneurs, I just encourage.

0:47:29.520 --> 0:47:30.800
<v Speaker 3>Just to have that feeling.

0:47:31.280 --> 0:47:31.520
<v Speaker 4>Yeah.

0:47:31.560 --> 0:47:33.080
<v Speaker 3>Man, it's like a natural.

0:47:33.680 --> 0:47:34.879
<v Speaker 4>The feeling is everything, bro.

0:47:35.000 --> 0:47:36.360
<v Speaker 3>But I wanted to Askual you, so, how do you all?

0:47:36.440 --> 0:47:36.560
<v Speaker 4>Right?

0:47:36.600 --> 0:47:38.480
<v Speaker 5>So you started as angel investors and you said that

0:47:38.480 --> 0:47:40.239
<v Speaker 5>didn't really work out for you guys for the most part,

0:47:40.280 --> 0:47:41.040
<v Speaker 5>it wasn't profitable.

0:47:41.560 --> 0:47:44.160
<v Speaker 4>Yeah, I mean so, so one thing to know is

0:47:44.200 --> 0:47:47.200
<v Speaker 4>like when you make an angel investment, the yield curve

0:47:47.360 --> 0:47:50.640
<v Speaker 4>on it, meaning the amount of time with which you're

0:47:50.640 --> 0:47:53.800
<v Speaker 4>expected to make anything back, if at all, is typically

0:47:53.840 --> 0:47:56.840
<v Speaker 4>seven to nine years, because that's the average life cycle

0:47:56.880 --> 0:47:58.839
<v Speaker 4>of a business. And so when I say we haven't

0:47:58.880 --> 0:48:02.759
<v Speaker 4>made any money, it's like chance for sure. And we're

0:48:02.800 --> 0:48:05.439
<v Speaker 4>in some companies that we're expecting to make some money back.

0:48:06.239 --> 0:48:10.280
<v Speaker 4>But like I quickly found out, like it's funny because

0:48:10.560 --> 0:48:13.040
<v Speaker 4>you know I'm making you know, we're making deals and

0:48:13.080 --> 0:48:15.319
<v Speaker 4>every time we make a deal. We announced that deal,

0:48:15.320 --> 0:48:18.080
<v Speaker 4>and so my social was blowing up, Yo, your angel

0:48:18.080 --> 0:48:22.040
<v Speaker 4>invest I'm like yeah, yeah, you know, and then I'm like, fuck,

0:48:22.320 --> 0:48:26.319
<v Speaker 4>I'm not seeing any money, Like it just literally feels

0:48:26.360 --> 0:48:29.520
<v Speaker 4>like you're just like your money's just disappearing because it

0:48:29.600 --> 0:48:33.160
<v Speaker 4>goes to work. And then what happens for anyone who

0:48:33.200 --> 0:48:36.160
<v Speaker 4>doesn't know how you make money adventure? You only make

0:48:36.239 --> 0:48:42.080
<v Speaker 4>money adventure on a liquidation event, which is the company

0:48:42.160 --> 0:48:45.960
<v Speaker 4>is sold. You do not, contrary to small business investing,

0:48:46.000 --> 0:48:49.600
<v Speaker 4>if you invest in an ice cream shop, barbershop, restaurant, whatever,

0:48:50.120 --> 0:48:52.920
<v Speaker 4>you're yielding profits, so you have a profit split.

0:48:53.200 --> 0:48:56.880
<v Speaker 2>Because the example would be like when nas Or in

0:48:56.680 --> 0:48:59.399
<v Speaker 2>his firm invest in ring and the ring gets put

0:48:59.480 --> 0:49:00.920
<v Speaker 2>by Amazon or.

0:49:00.920 --> 0:49:05.240
<v Speaker 4>Pill pack correct right, pill pack. So if you invest

0:49:05.239 --> 0:49:08.560
<v Speaker 4>in a restaurant, you're making quarterly dividends. You get cash

0:49:08.560 --> 0:49:13.560
<v Speaker 4>flows in venture because you're typically reinvesting profits in the

0:49:13.600 --> 0:49:17.120
<v Speaker 4>business because growth and profits are inversely correlated. If you

0:49:17.160 --> 0:49:19.640
<v Speaker 4>want to grow, you got to sacrifice profits, and so

0:49:19.680 --> 0:49:22.719
<v Speaker 4>it's a very different kind of investing game. So you

0:49:22.760 --> 0:49:25.919
<v Speaker 4>don't invest in a startup with the pretense that you're

0:49:25.920 --> 0:49:29.720
<v Speaker 4>going to get profits. You would be hurting that business.

0:49:30.080 --> 0:49:33.359
<v Speaker 4>So the trick is jumping in and getting in early

0:49:33.400 --> 0:49:36.440
<v Speaker 4>at a nice valuation. On average, we invest in businesses

0:49:37.800 --> 0:49:39.960
<v Speaker 4>along the businesses that are coming from the Midwest are

0:49:40.000 --> 0:49:43.120
<v Speaker 4>on average valued between four to six million inventure, and

0:49:43.200 --> 0:49:46.000
<v Speaker 4>businesses along the coast are valued between eight to ten million.

0:49:46.880 --> 0:49:49.960
<v Speaker 4>So now eighty percent of m and A, which is

0:49:50.040 --> 0:49:53.239
<v Speaker 4>mergers and acquisitions, are happening right now between the one

0:49:53.280 --> 0:49:55.600
<v Speaker 4>hundred and fifty to two hundred million dollars price point.

0:49:56.000 --> 0:49:59.120
<v Speaker 4>Like Gimblet Media got acquired for two hundred million by

0:49:59.120 --> 0:50:01.400
<v Speaker 4>Spotify or whatever. If I would have gotten into give

0:50:01.440 --> 0:50:03.440
<v Speaker 4>them media when there were worth ten million, you do

0:50:03.480 --> 0:50:04.960
<v Speaker 4>the math on that. You get in at ten, they

0:50:04.960 --> 0:50:07.600
<v Speaker 4>get sold that two hundred whoop. You know you got

0:50:07.600 --> 0:50:10.399
<v Speaker 4>a twenty x. So what money did you put into

0:50:10.400 --> 0:50:12.440
<v Speaker 4>that deal? You know, if you put in one hundred,

0:50:12.600 --> 0:50:14.799
<v Speaker 4>that'll tell you what you net at the back end.

0:50:15.000 --> 0:50:18.560
<v Speaker 4>So anyway, I'm just clarifying how you actually make money

0:50:18.600 --> 0:50:21.600
<v Speaker 4>and venture. You get in into the sweet spot and

0:50:21.640 --> 0:50:24.439
<v Speaker 4>then that business grows and if you're fortunate, it gets

0:50:24.480 --> 0:50:26.560
<v Speaker 4>acquired and then you net.

0:50:26.920 --> 0:50:31.000
<v Speaker 2>What's the difference between the valuation of cities out of

0:50:31.040 --> 0:50:32.560
<v Speaker 2>Inland and the ones against the coast.

0:50:32.640 --> 0:50:36.960
<v Speaker 4>That's a great question. And the real reason that businesses

0:50:36.960 --> 0:50:39.960
<v Speaker 4>are priced differently based on geographies is due to cost

0:50:40.000 --> 0:50:43.440
<v Speaker 4>of living. Okay, so like businesses make, you might make

0:50:43.480 --> 0:50:46.960
<v Speaker 4>more as an individual in New York, and so as

0:50:46.960 --> 0:50:50.280
<v Speaker 4>a result, employees are more expensive, offices are worth more

0:50:50.400 --> 0:50:53.440
<v Speaker 4>and so, and there's also more capital in that market,

0:50:53.480 --> 0:50:55.920
<v Speaker 4>and so you can usually justify a higher price point,

0:50:56.160 --> 0:50:58.759
<v Speaker 4>whereas I love investing in businesses from the Midwest because

0:50:58.760 --> 0:51:01.840
<v Speaker 4>they're reasonably priced. In fact, they say this is a nugget.

0:51:02.160 --> 0:51:05.880
<v Speaker 4>Vcs say that the actual valuation, the true valuation of

0:51:05.920 --> 0:51:08.680
<v Speaker 4>a business is the Midwest valuation, and then when you

0:51:08.719 --> 0:51:11.400
<v Speaker 4>go out to the coast, you get inflated because when

0:51:11.400 --> 0:51:13.760
<v Speaker 4>you're in Silicon Valley, those motherfuckers will pay any price

0:51:13.760 --> 0:51:17.799
<v Speaker 4>for any business. And so we actually rarely invested. We

0:51:17.840 --> 0:51:20.120
<v Speaker 4>haven't invested in a single business from the valley because

0:51:20.160 --> 0:51:22.600
<v Speaker 4>by the time they come to us, they're like, oh, yeah,

0:51:22.600 --> 0:51:24.880
<v Speaker 4>we're worth twenty million dollars. I'm like, show me a revenue.

0:51:24.880 --> 0:51:27.520
<v Speaker 4>They got one hundred k revenue. I ain't paying twenty

0:51:27.520 --> 0:51:30.919
<v Speaker 4>million for one hundred k and revenue, So like there's

0:51:31.040 --> 0:51:33.160
<v Speaker 4>one thing to know as well is like there's actual

0:51:33.280 --> 0:51:38.480
<v Speaker 4>different investment climates among the coasts. The West coast is

0:51:38.560 --> 0:51:40.760
<v Speaker 4>very like, Yo, we're looking at scale by any means,

0:51:41.080 --> 0:51:43.400
<v Speaker 4>and the East coast is a little bit more like conservative,

0:51:43.440 --> 0:51:45.840
<v Speaker 4>We're looking for revenue and a little bit more modest growth,

0:51:46.600 --> 0:51:47.200
<v Speaker 4>but revenue.

0:51:47.239 --> 0:51:49.400
<v Speaker 3>How did you go from being angels to having like

0:51:49.440 --> 0:51:50.080
<v Speaker 3>a VC.

0:51:50.200 --> 0:51:53.719
<v Speaker 4>Add to the question, right, So, and we get this

0:51:53.760 --> 0:51:55.200
<v Speaker 4>a lot because people say, yeah, I want to break

0:51:55.200 --> 0:51:58.240
<v Speaker 4>into VC. Well, there's a number of ways. You Either

0:52:00.560 --> 0:52:03.480
<v Speaker 4>work at a venture firm, good luck breaking into one,

0:52:03.560 --> 0:52:07.520
<v Speaker 4>they're very exclusive, or like the path that we took,

0:52:07.640 --> 0:52:10.239
<v Speaker 4>we started as angels and eventually, once you have enough

0:52:10.280 --> 0:52:13.200
<v Speaker 4>of a track record you can you can go out

0:52:13.239 --> 0:52:16.240
<v Speaker 4>to the market as a whole and say, hey, here's

0:52:16.280 --> 0:52:19.799
<v Speaker 4>my thesis, Like, here's my idea. And it could be

0:52:20.000 --> 0:52:21.960
<v Speaker 4>like our ship is around investing in the you know,

0:52:22.000 --> 0:52:25.560
<v Speaker 4>diverse founders, like we invest in women and minorities. But

0:52:25.600 --> 0:52:27.440
<v Speaker 4>that doesn't have to be your thesis. Your thesis could

0:52:27.440 --> 0:52:29.560
<v Speaker 4>be around sports. Your thesis could be around music. Yo,

0:52:29.640 --> 0:52:32.600
<v Speaker 4>I want to create a fund that invests in you know,

0:52:32.760 --> 0:52:39.440
<v Speaker 4>music companies, sports companies, sewage, you name it, and the

0:52:39.440 --> 0:52:41.160
<v Speaker 4>the true test of whether you can raise a fund

0:52:41.239 --> 0:52:42.759
<v Speaker 4>or not is if you can convince enough people to

0:52:42.800 --> 0:52:45.320
<v Speaker 4>believe in your ship. And what I found out raising

0:52:45.400 --> 0:52:51.000
<v Speaker 4>money is there's a lot of motherfuckers with money for wealth.

0:52:51.320 --> 0:52:55.040
<v Speaker 2>You said you said that the founding the coal is

0:52:55.400 --> 0:52:58.279
<v Speaker 2>to invest in a thousand companies over the next twenty years, right, sir,

0:52:58.400 --> 0:52:59.800
<v Speaker 2>So that would mean like fifty companies.

0:53:00.040 --> 0:53:00.560
<v Speaker 4>Is that the goal?

0:53:00.600 --> 0:53:01.640
<v Speaker 2>Like you're doing fifty companies.

0:53:01.640 --> 0:53:05.040
<v Speaker 4>We're just we're doing a thousand founders over twenty years.

0:53:05.480 --> 0:53:07.760
<v Speaker 4>So like if we invest in one company as four founders,

0:53:07.800 --> 0:53:10.239
<v Speaker 4>we're counting that as fourka. But yeah, the way our

0:53:10.280 --> 0:53:14.680
<v Speaker 4>fund model is structure. Right now, we're looking at doing uh,

0:53:15.280 --> 0:53:19.680
<v Speaker 4>you know, thirty deals out of this first fund and

0:53:19.719 --> 0:53:22.000
<v Speaker 4>then you know it'll accelerate, so it's not very linear.

0:53:22.040 --> 0:53:24.160
<v Speaker 4>It's like our first fund might be twenty five to

0:53:24.160 --> 0:53:26.680
<v Speaker 4>forty million, our second fund is going to be one

0:53:26.760 --> 0:53:29.840
<v Speaker 4>hundred million, then court you know, then quarter billion and

0:53:29.880 --> 0:53:31.560
<v Speaker 4>then a billion. You know, we're you know, we're thinking

0:53:31.560 --> 0:53:31.960
<v Speaker 4>pretty big.

0:53:32.320 --> 0:53:34.719
<v Speaker 5>So it's our relationship people. You build relationship people when

0:53:34.719 --> 0:53:35.719
<v Speaker 5>they invest in your fund.

0:53:36.120 --> 0:53:40.880
<v Speaker 4>Yep, that's right, the same way that entrepreneurs are asking

0:53:40.960 --> 0:53:43.359
<v Speaker 4>for money we're doing the same shit, okay. And so

0:53:43.400 --> 0:53:45.880
<v Speaker 4>the biggest misconception, like when we close our fund and

0:53:45.920 --> 0:53:47.799
<v Speaker 4>we make the announcement, I think it's gonna make a

0:53:47.840 --> 0:53:51.000
<v Speaker 4>very big splash because we're gonna be like, you know,

0:53:51.080 --> 0:53:54.399
<v Speaker 4>young of color, and I think we we're gonna raise

0:53:54.400 --> 0:53:58.280
<v Speaker 4>a considerable amount. People are gonna look at the headline

0:53:58.280 --> 0:54:03.640
<v Speaker 4>and automatically think that we're it's our bread, okay, full disclosure,

0:54:04.000 --> 0:54:06.560
<v Speaker 4>not our It's very important that.

0:54:06.560 --> 0:54:08.879
<v Speaker 5>A lot of times people the ANGEL in the VC,

0:54:09.000 --> 0:54:10.400
<v Speaker 5>they kind of get that mix and they think, if

0:54:10.440 --> 0:54:12.799
<v Speaker 5>you have a VC firm, all of that money is

0:54:12.840 --> 0:54:14.120
<v Speaker 5>your money that you're putting up.

0:54:14.239 --> 0:54:16.319
<v Speaker 4>Yeah, and if you want so, I'll just break this

0:54:16.400 --> 0:54:19.799
<v Speaker 4>down quickly. The fund model. All right, this is how

0:54:19.840 --> 0:54:22.799
<v Speaker 4>you make money. When you cross over from ANGEL to VC.

0:54:23.840 --> 0:54:26.200
<v Speaker 4>You get paid on what's called the two and twenty.

0:54:26.360 --> 0:54:30.560
<v Speaker 4>That's the fee structure. So the two refers to your

0:54:30.680 --> 0:54:34.360
<v Speaker 4>management fee. So whatever the total size of your fund is,

0:54:34.440 --> 0:54:36.000
<v Speaker 4>this is why your INCENTIVI is to go for a

0:54:36.000 --> 0:54:38.880
<v Speaker 4>big fund. Whatever the total size of that fund is,

0:54:39.280 --> 0:54:43.239
<v Speaker 4>two percent of that annually is what you make as

0:54:43.320 --> 0:54:46.120
<v Speaker 4>your fee. So on a twenty five million dollar fund,

0:54:46.360 --> 0:54:49.239
<v Speaker 4>two percent of that is five hundred grand. So you

0:54:49.280 --> 0:54:56.160
<v Speaker 4>get five hundred grand every year to pay for a salary, office, travel, everything. Now,

0:54:56.880 --> 0:54:58.920
<v Speaker 4>if you know, with a team of four in office

0:54:58.960 --> 0:55:00.839
<v Speaker 4>and stuff like that, like you know, you might make

0:55:00.880 --> 0:55:03.759
<v Speaker 4>one hundred g's on salary. Like that's nice, but you're

0:55:03.800 --> 0:55:06.160
<v Speaker 4>not gonna get rich off of that. You're not meant

0:55:06.160 --> 0:55:08.480
<v Speaker 4>to get rich off of that. The LP, there's two

0:55:08.560 --> 0:55:10.400
<v Speaker 4>kinds of partners in the fund. There's the GP, the

0:55:10.480 --> 0:55:12.640
<v Speaker 4>general partner, which is the partner's putting in the work,

0:55:12.920 --> 0:55:14.960
<v Speaker 4>and then there's the LP's a limited partner, this person

0:55:15.000 --> 0:55:18.400
<v Speaker 4>who's investing. So your LPs do not want you to

0:55:18.400 --> 0:55:20.560
<v Speaker 4>get rich off the fees because then you would never work.

0:55:21.080 --> 0:55:23.520
<v Speaker 4>You get rich on the other side. I remember I

0:55:23.520 --> 0:55:25.600
<v Speaker 4>said it's two and twenty to is a management fee.

0:55:26.000 --> 0:55:29.080
<v Speaker 4>The twenty is what we call the carry, and the

0:55:29.160 --> 0:55:36.000
<v Speaker 4>carry is your share of the profits. So now because

0:55:36.040 --> 0:55:38.200
<v Speaker 4>we can, because we can get into a little detail,

0:55:38.239 --> 0:55:42.040
<v Speaker 4>I'll just explain this. Typically, you as the GP, if

0:55:42.040 --> 0:55:45.080
<v Speaker 4>you set out to go raise a fund, your commitment

0:55:45.160 --> 0:55:47.799
<v Speaker 4>to the fund, you put up one percent of the

0:55:47.840 --> 0:55:52.400
<v Speaker 4>total fund. Okay, So if my partners and I are

0:55:52.440 --> 0:55:55.799
<v Speaker 4>set out to raise as an example, twenty million. One

0:55:55.840 --> 0:55:58.239
<v Speaker 4>percent of that is two hundred thousand, so we have

0:55:58.280 --> 0:56:00.319
<v Speaker 4>to come up with two hundred g's across you know,

0:56:00.360 --> 0:56:04.120
<v Speaker 4>the four of us. Okay, beat now, But here's a

0:56:04.160 --> 0:56:07.680
<v Speaker 4>mind blowing shit. Remember I said the twenty is that

0:56:07.719 --> 0:56:09.960
<v Speaker 4>refers to your share of the profits, which is twenty percent.

0:56:10.640 --> 0:56:15.680
<v Speaker 4>So we're making twenty percent of the profits on twenty million.

0:56:16.880 --> 0:56:19.799
<v Speaker 4>So it's just like, you know, I guess it might

0:56:19.800 --> 0:56:22.120
<v Speaker 4>be complicated. It's like ingrained to me now, so it's

0:56:22.160 --> 0:56:25.080
<v Speaker 4>not the complicated to me now, but like in a nutshell,

0:56:25.680 --> 0:56:28.319
<v Speaker 4>you're if you can put together two hundred g's, it's

0:56:28.440 --> 0:56:31.880
<v Speaker 4>buying you a ticket to get the profits on twenty million.

0:56:33.000 --> 0:56:34.160
<v Speaker 3>Like, so that's two million.

0:56:35.120 --> 0:56:36.719
<v Speaker 4>Well, it depends on how much money you make with

0:56:36.760 --> 0:56:39.319
<v Speaker 4>the twenty million, and that's the incentive. So it's like,

0:56:39.719 --> 0:56:41.640
<v Speaker 4>can you make this twenty million and turn it into

0:56:41.640 --> 0:56:44.600
<v Speaker 4>one hundred million. If you do, you get twenty percent

0:56:44.640 --> 0:56:47.200
<v Speaker 4>of that, you get twenty million million. Yea, you know.

0:56:47.280 --> 0:56:49.320
<v Speaker 4>So it's like it gets complicated, but like.

0:56:49.320 --> 0:56:51.440
<v Speaker 5>How can people if they want to? We're going to

0:56:51.480 --> 0:56:53.040
<v Speaker 5>move on to the next segment, but I want to

0:56:53.320 --> 0:56:57.120
<v Speaker 5>so if people are interested in like pitching their business.

0:56:57.160 --> 0:56:59.160
<v Speaker 3>It's like shark Tank. How realistic is shark tank?

0:57:00.760 --> 0:57:05.560
<v Speaker 4>Shark Tank is to angel investing what Indiana Jones is

0:57:05.600 --> 0:57:05.959
<v Speaker 4>to our.

0:57:09.360 --> 0:57:12.400
<v Speaker 5>So they're not coming in front of you. So how

0:57:12.640 --> 0:57:16.720
<v Speaker 5>the Jones Indiana.

0:57:19.000 --> 0:57:24.280
<v Speaker 4>Nothing like that ship? Yeah, so yeah, the real ways

0:57:24.360 --> 0:57:27.640
<v Speaker 4>like people send in a pitch deck and we you know,

0:57:27.720 --> 0:57:29.959
<v Speaker 4>and then you know, if the pitch deck looks good,

0:57:30.040 --> 0:57:33.520
<v Speaker 4>then we'll sign apart. There's different levels of a deal screen,

0:57:33.680 --> 0:57:36.560
<v Speaker 4>so you know, pitch deck looks good. If not, then

0:57:36.600 --> 0:57:39.400
<v Speaker 4>we'll well, we pass pretty quick. And we see a

0:57:39.400 --> 0:57:41.480
<v Speaker 4>thousand deals a year. We invested ten deals a year,

0:57:41.560 --> 0:57:44.680
<v Speaker 4>so we're talking about one percent investment rate. So if

0:57:44.720 --> 0:57:48.160
<v Speaker 4>we see a hog deal, one partner is jumping on

0:57:48.160 --> 0:57:51.560
<v Speaker 4>the phone with that founder. Then that partner reports back

0:57:51.600 --> 0:57:53.240
<v Speaker 4>with about a page of notes to the rest of

0:57:53.280 --> 0:57:57.080
<v Speaker 4>the team. Yo. Cool. And then if there's interest, then

0:57:57.120 --> 0:58:00.520
<v Speaker 4>another partner will jump in as many partners as are interested.

0:58:00.560 --> 0:58:02.720
<v Speaker 4>Then we jump in with the full with the full team,

0:58:03.000 --> 0:58:05.440
<v Speaker 4>we try and get a fuller team situation, and we

0:58:05.560 --> 0:58:08.040
<v Speaker 4>learn more. We have interns, so then our interns might

0:58:08.080 --> 0:58:10.520
<v Speaker 4>go and do market research and analyze what we can

0:58:10.560 --> 0:58:14.600
<v Speaker 4>expect to make, and then interest grows and usually you

0:58:14.680 --> 0:58:17.720
<v Speaker 4>have every partner leads their own deal at the fund.

0:58:17.960 --> 0:58:19.960
<v Speaker 4>So it's all about like, yo, all right, what deals?

0:58:20.040 --> 0:58:24.040
<v Speaker 4>What deals am I getting versus Brandon versus Jerry versus

0:58:24.040 --> 0:58:27.240
<v Speaker 4>a reed. We're all looking for our own deals. And

0:58:27.440 --> 0:58:29.560
<v Speaker 4>to your question about voting, we have a we have

0:58:29.640 --> 0:58:33.800
<v Speaker 4>a conviction over consensus philosophy. Like it's not like all

0:58:33.800 --> 0:58:36.120
<v Speaker 4>of us have to agree. It's like if someone really

0:58:36.120 --> 0:58:38.560
<v Speaker 4>worked up about this deal, and can you get people excited?

0:58:39.200 --> 0:58:41.080
<v Speaker 4>You're judging off the passion of one of your partners

0:58:41.120 --> 0:58:44.000
<v Speaker 4>for sure, and their ability to defend the deal. And

0:58:44.040 --> 0:58:47.320
<v Speaker 4>we'll test you. We'll heat check each other and grill

0:58:47.360 --> 0:58:48.919
<v Speaker 4>each other, like, yo, I don't know if this deal

0:58:48.960 --> 0:58:51.120
<v Speaker 4>is gonna make it. Like like I try to get

0:58:51.120 --> 0:58:53.320
<v Speaker 4>a media deal through and I couldn't get it through.

0:58:53.520 --> 0:58:55.880
<v Speaker 4>It got shut down because my partners were like, yo,

0:58:56.600 --> 0:58:58.920
<v Speaker 4>you know, the media climate is really hairy right now.

0:58:59.000 --> 0:59:03.280
<v Speaker 4>You know Vice and BuzzFeed and Refinery twenty nine. You

0:59:03.280 --> 0:59:04.960
<v Speaker 4>know they're not doing too well and they're the big dogs,

0:59:04.960 --> 0:59:07.040
<v Speaker 4>so how the small dogs and you just it's a

0:59:07.080 --> 0:59:11.160
<v Speaker 4>mental game, and if you can get people excited, then

0:59:12.080 --> 0:59:14.080
<v Speaker 4>we close the deal and we say, all right, bet

0:59:14.080 --> 0:59:16.320
<v Speaker 4>we're gonna invest X amount and then we just wire

0:59:16.320 --> 0:59:18.480
<v Speaker 4>them the money and then we prayers up.

0:59:19.600 --> 0:59:21.680
<v Speaker 5>There you have it, ladies and gentlemen, one on one,

0:59:21.840 --> 0:59:23.600
<v Speaker 5>one O three, one O four and one on five.

0:59:24.600 --> 0:59:27.560
<v Speaker 5>That it, right, Benurecathlo and Angel Best. Going to our

0:59:27.600 --> 0:59:29.680
<v Speaker 5>last segment. All right, So in the last segment, we're

0:59:29.680 --> 0:59:30.760
<v Speaker 5>going to talk about something else.

0:59:31.160 --> 0:59:35.680
<v Speaker 3>Yeah, and dear to our heart, absolutely it is media, right, sir.

0:59:35.840 --> 0:59:39.880
<v Speaker 5>So I heard you talk previously and you you have

0:59:40.000 --> 0:59:42.840
<v Speaker 5>interesting views about media and you used to have you

0:59:42.880 --> 0:59:43.280
<v Speaker 5>still have.

0:59:43.200 --> 0:59:47.000
<v Speaker 4>Your podcast, Yeah, I have a out. Yeah if I've

0:59:47.040 --> 0:59:48.600
<v Speaker 4>done a number of podcasts, yeah.

0:59:48.480 --> 0:59:51.200
<v Speaker 3>Okay, and then you have the show on Vice.

0:59:51.360 --> 0:59:53.280
<v Speaker 4>Yes, I do hustle, hustle, hustle.

0:59:53.640 --> 0:59:57.600
<v Speaker 5>So all right, so how does that work as far

0:59:57.640 --> 1:00:00.600
<v Speaker 5>as being on the all this out of the coin,

1:00:00.680 --> 1:00:03.880
<v Speaker 5>as far as like, because Vice is a huge operation, rightm.

1:00:05.800 --> 1:00:07.320
<v Speaker 3>Like what's the end of workings of that? Like having

1:00:07.360 --> 1:00:08.320
<v Speaker 3>your own show?

1:00:09.000 --> 1:00:10.040
<v Speaker 2>How that even come about?

1:00:10.440 --> 1:00:15.680
<v Speaker 4>Yeah? So the interesting So the the essence of media

1:00:16.320 --> 1:00:20.919
<v Speaker 4>is communicating who you are, what you do, and why

1:00:20.960 --> 1:00:24.760
<v Speaker 4>you do it in a way that resonates with an

1:00:24.880 --> 1:00:27.480
<v Speaker 4>end consumer, with another person pretty much on the other

1:00:27.520 --> 1:00:30.520
<v Speaker 4>side of that screen. And like that's just a very

1:00:30.640 --> 1:00:34.480
<v Speaker 4>unique opportunity that we have specific to this generation. And

1:00:34.680 --> 1:00:37.360
<v Speaker 4>like at the essence of having a show and all

1:00:37.400 --> 1:00:40.280
<v Speaker 4>this other stuff, like and even earn your leisure, Like,

1:00:40.320 --> 1:00:42.600
<v Speaker 4>at the essence of it is like people are picking

1:00:42.600 --> 1:00:44.440
<v Speaker 4>out what you're putting down, like the funck with what

1:00:44.520 --> 1:00:46.080
<v Speaker 4>you're saying and what your guests saying and all this

1:00:46.080 --> 1:00:49.440
<v Speaker 4>other stuff. And that's really the most important part, man,

1:00:49.200 --> 1:00:53.120
<v Speaker 4>And and once you're able to over time, if you

1:00:53.160 --> 1:00:55.840
<v Speaker 4>stay consistent, if you look at my earliest videos, man,

1:00:56.000 --> 1:01:01.040
<v Speaker 4>really bad, you know, cheesy, stiff, and like, you know,

1:01:01.200 --> 1:01:03.120
<v Speaker 4>some I have people that reach out to me that

1:01:03.280 --> 1:01:05.320
<v Speaker 4>are trying to get into video now, but they're comparing

1:01:05.360 --> 1:01:07.680
<v Speaker 4>their day one shit to like my stuff now. It's

1:01:07.680 --> 1:01:10.280
<v Speaker 4>like it's not going to be the same. But if

1:01:10.320 --> 1:01:14.600
<v Speaker 4>you're willing to deal with the discomfort of being new

1:01:14.640 --> 1:01:18.040
<v Speaker 4>at this for enough period of time and you get

1:01:18.080 --> 1:01:20.280
<v Speaker 4>through some of the kinks and you learn to express

1:01:20.320 --> 1:01:22.800
<v Speaker 4>yourself on this specific medium, whatever that is. It could

1:01:22.840 --> 1:01:26.120
<v Speaker 4>be writing like my Boy Julian Mitchell Rester Forbes and Beats,

1:01:26.440 --> 1:01:30.560
<v Speaker 4>it could be podcasting, it could be video, whichever the medium.

1:01:30.760 --> 1:01:33.840
<v Speaker 4>Once you have gone through the reps, and get good

1:01:33.840 --> 1:01:36.720
<v Speaker 4>at expressing yourself in that medium. Then what happens is

1:01:36.760 --> 1:01:39.600
<v Speaker 4>you start building a community and audience of people who

1:01:39.640 --> 1:01:43.960
<v Speaker 4>fuck with you, you know. And then once you have that,

1:01:44.760 --> 1:01:49.760
<v Speaker 4>which is like messenger, message and audience, and that virtuous

1:01:49.760 --> 1:01:52.560
<v Speaker 4>cycle opens up the door for a lot. And so

1:01:53.200 --> 1:01:56.920
<v Speaker 4>the first big media project that I was invited to

1:01:57.000 --> 1:02:00.360
<v Speaker 4>do was a podcast that I hosted for eBay that

1:02:00.440 --> 1:02:04.320
<v Speaker 4>was produced by a company called Gimlet Media, and that

1:02:04.480 --> 1:02:07.040
<v Speaker 4>like that project, Like I got paid like fifty g's

1:02:07.080 --> 1:02:09.720
<v Speaker 4>to do that, and like, I didn't even know that

1:02:09.840 --> 1:02:12.600
<v Speaker 4>you could get paid to do some shit that I

1:02:12.600 --> 1:02:18.160
<v Speaker 4>would do for free. So something eBay was like, yo,

1:02:18.600 --> 1:02:21.360
<v Speaker 4>we have millions of sellers, and Gimblet's like yo, we

1:02:21.400 --> 1:02:24.240
<v Speaker 4>have millions of listeners. And you know, they so they'd

1:02:24.240 --> 1:02:27.160
<v Speaker 4>cut a deal between themselves. eBay was looking at produce

1:02:27.160 --> 1:02:30.720
<v Speaker 4>a podcast gimblin that's their business producing podcasts. Boom that's

1:02:30.720 --> 1:02:34.360
<v Speaker 4>a branded podcast, meaning it's brought to you by eBay.

1:02:34.560 --> 1:02:37.520
<v Speaker 4>And then what happens is they look for hosts, and so,

1:02:37.960 --> 1:02:40.640
<v Speaker 4>you know, because I was already out there doing my thing,

1:02:40.920 --> 1:02:43.960
<v Speaker 4>my name came up in the conversation. And that's why

1:02:43.960 --> 1:02:46.120
<v Speaker 4>I really believe if you're not out there doing your

1:02:46.160 --> 1:02:48.680
<v Speaker 4>thing with the fucking phone, then you're never gonna get

1:02:48.720 --> 1:02:52.320
<v Speaker 4>to a bigger screen. So start with whatever screen you got.

1:02:52.880 --> 1:02:56.120
<v Speaker 4>And so I was fortunate to come with conversation. I

1:02:56.200 --> 1:03:00.400
<v Speaker 4>met with the lady. She really liked me, and yeah,

1:03:00.480 --> 1:03:04.920
<v Speaker 4>and and I got Boom. I got the opportunity to

1:03:05.120 --> 1:03:10.320
<v Speaker 4>host my first bigger scale, branded production. And that was

1:03:10.560 --> 1:03:13.720
<v Speaker 4>a you know, Gimlet is very special the way they

1:03:13.760 --> 1:03:17.760
<v Speaker 4>do their podcast. Like, we had four producers, we had

1:03:17.760 --> 1:03:20.880
<v Speaker 4>a creative director. I mean, it was like a big production.

1:03:20.960 --> 1:03:24.320
<v Speaker 4>I was traveling, yeah, so it wasn't like a regular thing.

1:03:24.360 --> 1:03:28.120
<v Speaker 4>But but so that was my first like thing. Okay boom.

1:03:28.160 --> 1:03:31.040
<v Speaker 4>We did two seasons of that, and then you know,

1:03:31.160 --> 1:03:34.000
<v Speaker 4>my speaking started taking off because it's all a virtuous csychic,

1:03:34.080 --> 1:03:36.400
<v Speaker 4>all feeds each other. Once you have a lot of listeners,

1:03:36.560 --> 1:03:39.680
<v Speaker 4>you're being requested in all places. So then I started

1:03:39.720 --> 1:03:42.120
<v Speaker 4>doing speaking first for free, and then I found out

1:03:42.120 --> 1:03:44.880
<v Speaker 4>you get paid for it. So the very next time

1:03:44.880 --> 1:03:46.920
<v Speaker 4>someone said, yo, you want to speak, I said, instead

1:03:46.920 --> 1:03:49.560
<v Speaker 4>of just saying yes, I said, what's your budget? You

1:03:49.600 --> 1:03:53.760
<v Speaker 4>know an important question these days. I don't ask for

1:03:53.800 --> 1:03:56.439
<v Speaker 4>the budget. I just say my price. But those days,

1:03:56.480 --> 1:03:58.000
<v Speaker 4>I was like, what's your budget and she was like

1:03:58.040 --> 1:04:00.720
<v Speaker 4>a thousand bucks. I was like, cool, I'll take it.

1:04:01.520 --> 1:04:04.200
<v Speaker 4>So like I got paid a G and then I

1:04:04.240 --> 1:04:06.320
<v Speaker 4>tried to go for G again, but you don't always

1:04:06.360 --> 1:04:08.560
<v Speaker 4>get it. So then I got two hundred bucks four

1:04:08.640 --> 1:04:13.160
<v Speaker 4>hundred three fifty five seven fifty thousand, two gs back

1:04:13.200 --> 1:04:16.160
<v Speaker 4>to one. You know, just like the reps, the motions

1:04:16.320 --> 1:04:19.240
<v Speaker 4>like okay, cool, And you know, when you're first doing something,

1:04:19.600 --> 1:04:22.720
<v Speaker 4>whether it's vc, whether it's media, whether it's real estate,

1:04:23.480 --> 1:04:26.560
<v Speaker 4>you want to prioritize in the beginning for reps. So

1:04:26.640 --> 1:04:29.040
<v Speaker 4>I'm doing whatever it is for free to start. It

1:04:29.040 --> 1:04:30.520
<v Speaker 4>doesn't matter to me. I just want to get the

1:04:30.520 --> 1:04:33.200
<v Speaker 4>reps in. And I started getting better and better, and

1:04:33.240 --> 1:04:35.760
<v Speaker 4>so speaking started picking up. I got signed by an agent.

1:04:36.200 --> 1:04:39.960
<v Speaker 4>To anyone listening, yes there is a profession that exists

1:04:40.280 --> 1:04:43.280
<v Speaker 4>where it's like a salesperson whose sole job is to

1:04:43.400 --> 1:04:45.720
<v Speaker 4>sell you and you don't pay them anything. They just

1:04:45.760 --> 1:04:49.520
<v Speaker 4>make a commission the catches. They only take people on

1:04:49.640 --> 1:04:52.240
<v Speaker 4>that they feel like they can sell. And so I

1:04:52.280 --> 1:04:54.160
<v Speaker 4>found an agent who was like, yo, you know you

1:04:54.240 --> 1:04:55.400
<v Speaker 4>got a lot of stuff going for you. Let me

1:04:55.400 --> 1:05:00.680
<v Speaker 4>represent them. I had a literary agent was like, yo,

1:05:00.760 --> 1:05:02.240
<v Speaker 4>you know you should do a book deal, and then

1:05:02.240 --> 1:05:04.920
<v Speaker 4>I asked her if she knew any speaking agents introduced

1:05:04.920 --> 1:05:07.000
<v Speaker 4>me and the first time I signed to an agent,

1:05:07.080 --> 1:05:09.640
<v Speaker 4>my rate for speaking got up to like thirty five hundred.

1:05:09.920 --> 1:05:11.960
<v Speaker 4>I was like, all right, bet you know it was

1:05:12.040 --> 1:05:14.320
<v Speaker 4>higher than my one thousand I was charging. But they

1:05:14.320 --> 1:05:17.720
<v Speaker 4>take twenty percent percent of thirty five hundred. It's like

1:05:17.760 --> 1:05:19.720
<v Speaker 4>seven hundred bucks, so I was not in like twenty

1:05:19.760 --> 1:05:21.880
<v Speaker 4>eight hundred. All right, cool, I could do and it

1:05:21.920 --> 1:05:24.360
<v Speaker 4>was just whatever they brought me, so it was really

1:05:24.400 --> 1:05:27.320
<v Speaker 4>net net. So anyway, so here I have, this podcast

1:05:27.680 --> 1:05:32.120
<v Speaker 4>is being listened to by people, is feeding my speaking business.

1:05:32.400 --> 1:05:34.520
<v Speaker 4>And every time I went and spoke, I noticed people

1:05:34.600 --> 1:05:37.360
<v Speaker 4>weren't recording their shit. I'm on, dude, you're leaving out

1:05:37.600 --> 1:05:40.600
<v Speaker 4>the main value recorded so you can turn it into

1:05:40.600 --> 1:05:42.800
<v Speaker 4>small business content, so you can feed it to social

1:05:43.080 --> 1:05:45.240
<v Speaker 4>so you can get requested in more places. And it

1:05:45.400 --> 1:05:47.320
<v Speaker 4>just all feeds each other. So that's what I was

1:05:47.480 --> 1:05:50.280
<v Speaker 4>really doing. I had the chance to do another podcast

1:05:50.280 --> 1:05:54.800
<v Speaker 4>for the Washington Post, similar sized deal, and so just

1:05:54.880 --> 1:05:57.480
<v Speaker 4>over time, this all feeding each other. I'm speaking a lot,

1:05:57.600 --> 1:05:59.920
<v Speaker 4>I'm capturing it. A lot of cats don't want it

1:06:00.080 --> 1:06:01.720
<v Speaker 4>capture their shit because they don't want to pay for

1:06:01.760 --> 1:06:04.640
<v Speaker 4>a video guy to travel with them. I'll take it.

1:06:04.800 --> 1:06:07.880
<v Speaker 4>I'll take a haircut all day. Yeah, I'll pay my

1:06:08.040 --> 1:06:09.960
<v Speaker 4>video guy whatever I got to pay him, and the

1:06:09.960 --> 1:06:13.360
<v Speaker 4>flight and the lodge. These days, my agent knows that

1:06:13.480 --> 1:06:15.720
<v Speaker 4>I always travel with video, so now that shit gets

1:06:15.720 --> 1:06:18.640
<v Speaker 4>covered for me, and I just pay my my guy

1:06:18.640 --> 1:06:21.600
<v Speaker 4>for the craft. But so as you can see, as

1:06:21.640 --> 1:06:24.480
<v Speaker 4>you grow in the game, you get efficiencies dialed in,

1:06:24.880 --> 1:06:27.920
<v Speaker 4>but when you start, you gotta come out out of pocket.

1:06:28.120 --> 1:06:31.880
<v Speaker 4>So I'm eating into my own profits, sometimes not making

1:06:31.880 --> 1:06:34.200
<v Speaker 4>any money, sometimes costing me money to pay for the

1:06:34.280 --> 1:06:38.200
<v Speaker 4>video guy. But the video and capturing is essential to

1:06:38.360 --> 1:06:42.440
<v Speaker 4>the craft because that is what allows that particular engagement

1:06:42.520 --> 1:06:46.040
<v Speaker 4>to live beyond that engagement. And there are some companies

1:06:46.080 --> 1:06:49.560
<v Speaker 4>throwing massive conferences with no fucking no one capturing anything.

1:06:50.960 --> 1:06:54.760
<v Speaker 4>It did happen. And so anyway, so I'm capturing these talks,

1:06:55.120 --> 1:06:57.880
<v Speaker 4>communicating it. I'm one of the only kind of younger

1:06:58.080 --> 1:07:00.840
<v Speaker 4>cats like doing it this way. And so then that

1:07:00.920 --> 1:07:03.680
<v Speaker 4>picks up and next thing you know, man, the phone

1:07:03.800 --> 1:07:07.400
<v Speaker 4>turned into a vlog, turned into the podcast turned into

1:07:07.400 --> 1:07:09.080
<v Speaker 4>someone hit me up and saying, hey, you want to

1:07:09.120 --> 1:07:11.800
<v Speaker 4>do a TV show? You know, and then it happened,

1:07:11.960 --> 1:07:15.720
<v Speaker 4>So the TV show Mark Samuelson, Marcus Samson Ye, yeah,

1:07:16.080 --> 1:07:18.680
<v Speaker 4>Top Chef Harlem, tizz too. Yep.

1:07:19.040 --> 1:07:21.520
<v Speaker 2>How did I mean? Did you know him or did

1:07:21.560 --> 1:07:23.200
<v Speaker 2>you meet him? And I guess at least a Ke's

1:07:23.280 --> 1:07:25.880
<v Speaker 2>also the executi producer as well. Right, yes, did you

1:07:26.000 --> 1:07:28.919
<v Speaker 2>know them prior have a relationship or you know, during

1:07:28.920 --> 1:07:29.400
<v Speaker 2>the process.

1:07:29.880 --> 1:07:33.400
<v Speaker 4>So Mark shout out to Marcus Samerson man good brother,

1:07:33.920 --> 1:07:36.480
<v Speaker 4>one of my original mentors in Italian Guy. He told

1:07:36.480 --> 1:07:38.560
<v Speaker 4>me he's like, yo, and this is I don't know

1:07:38.600 --> 1:07:40.040
<v Speaker 4>if you guys heard me say, like, you got to

1:07:40.040 --> 1:07:42.120
<v Speaker 4>be top five and whatever you do, you got to

1:07:42.120 --> 1:07:44.680
<v Speaker 4>come up top of mind. If not, then you're missing out.

1:07:44.720 --> 1:07:48.320
<v Speaker 4>You're leaving opportunities on the table. That mentor taught me that,

1:07:48.440 --> 1:07:50.840
<v Speaker 4>and he told me he's like, you got to be

1:07:50.960 --> 1:07:53.800
<v Speaker 4>top five in Harlem if you're gonna build in Harlem.

1:07:53.880 --> 1:07:56.400
<v Speaker 4>And right now, number one in Harlem is Marcus Hammerson,

1:07:57.120 --> 1:08:00.120
<v Speaker 4>So you got to go and build with him. It's

1:08:00.160 --> 1:08:02.560
<v Speaker 4>crazy to think years later he's executive produced by show

1:08:02.560 --> 1:08:04.760
<v Speaker 4>and now we're making money together. But at that point

1:08:04.800 --> 1:08:06.200
<v Speaker 4>in time, I was like, fuck, all right, I gotta

1:08:06.200 --> 1:08:08.720
<v Speaker 4>get to Marcus, and I was emailing him stuff like that,

1:08:08.760 --> 1:08:11.600
<v Speaker 4>and eventually the restaurant, yup, well that's the restaurant. Eventually

1:08:11.600 --> 1:08:13.400
<v Speaker 4>he invited me by. We had coffee. He liked me

1:08:13.440 --> 1:08:17.320
<v Speaker 4>a lot, and I interviewed him similar to this. You know,

1:08:17.360 --> 1:08:19.560
<v Speaker 4>I like using interviews as a way to build relationship.

1:08:19.880 --> 1:08:21.479
<v Speaker 4>For sure. For sure, now you guys know all the

1:08:21.520 --> 1:08:27.479
<v Speaker 4>players and then yeah, man, And so then I had

1:08:27.479 --> 1:08:29.960
<v Speaker 4>someone approach me about doing the show. And the cool

1:08:30.000 --> 1:08:34.000
<v Speaker 4>thing about packaging the show is that there's junior talent

1:08:34.040 --> 1:08:36.519
<v Speaker 4>and their senior talent. You usually will have the junior

1:08:36.560 --> 1:08:38.400
<v Speaker 4>talent kind of be on camera, which is what I

1:08:38.560 --> 1:08:41.800
<v Speaker 4>was in this production, and then you find bigger names

1:08:41.800 --> 1:08:44.280
<v Speaker 4>and attach them to the product, to the project. In

1:08:44.280 --> 1:08:46.960
<v Speaker 4>this case, it was Marcus Sammerson. Marcus who signed to

1:08:47.120 --> 1:08:51.599
<v Speaker 4>WM that's Alicia's same agency. We lobbed it up there,

1:08:51.640 --> 1:08:54.960
<v Speaker 4>We're like, yes, she might be interested. She was interested,

1:08:55.479 --> 1:08:59.479
<v Speaker 4>came onto the project, and now it's four of us, Marcus, Alicia,

1:08:59.600 --> 1:09:02.479
<v Speaker 4>me and then Beth, the original creator of the show.

1:09:03.360 --> 1:09:05.599
<v Speaker 4>And you know, then we had two likes to stand

1:09:05.640 --> 1:09:07.920
<v Speaker 4>on and what you do is you develop was called

1:09:07.960 --> 1:09:11.519
<v Speaker 4>the Sizzle Reel, which is like a two minute preview

1:09:11.560 --> 1:09:14.519
<v Speaker 4>of the show. Where people go wrong in TV is

1:09:14.560 --> 1:09:16.679
<v Speaker 4>they spend way too much money on the pilot. They'll

1:09:16.760 --> 1:09:19.599
<v Speaker 4>drop like ten, fifteen, twenty g's I don't care how

1:09:19.680 --> 1:09:21.679
<v Speaker 4>much money you spend on the pilot. Your pilot's gonna

1:09:21.720 --> 1:09:25.599
<v Speaker 4>be fucking terrible your first go round cause you don't

1:09:25.600 --> 1:09:28.640
<v Speaker 4>even know what you're making. And so my producer the

1:09:28.800 --> 1:09:32.240
<v Speaker 4>EP of the show, she actually was like, she's a

1:09:32.360 --> 1:09:35.640
<v Speaker 4>very seasoned TV executive. She made Pimp my ride, and

1:09:35.680 --> 1:09:37.160
<v Speaker 4>she told me she's like John, that show bought me

1:09:37.200 --> 1:09:43.160
<v Speaker 4>my first house. So she made a real hit show.

1:09:43.520 --> 1:09:45.519
<v Speaker 4>And so as a result, she knew, hey, let's not

1:09:45.520 --> 1:09:48.000
<v Speaker 4>spend any money on the Sizzle reel. Let's actually just

1:09:48.080 --> 1:09:52.479
<v Speaker 4>rip existing footage splice it together. What we did was

1:09:52.520 --> 1:09:56.400
<v Speaker 4>she camped out outside of Alicia's trailer one day after

1:09:56.560 --> 1:09:59.600
<v Speaker 4>outside of an event, and she got Alicia's voiceover on

1:09:59.600 --> 1:10:02.960
<v Speaker 4>the Sizzle. So that gave us enough credibility. And with

1:10:03.120 --> 1:10:07.479
<v Speaker 4>that two minute sizzle with Alicia's vo on a voiceover,

1:10:07.960 --> 1:10:10.080
<v Speaker 4>we were able to go to market and like one

1:10:10.120 --> 1:10:12.800
<v Speaker 4>thing about selling a TV show is not enough to

1:10:12.880 --> 1:10:15.479
<v Speaker 4>know the companies. You got to know the specific buyers

1:10:15.479 --> 1:10:18.760
<v Speaker 4>within that companies, because there's buying departments whose sole job

1:10:18.840 --> 1:10:21.240
<v Speaker 4>is to look for things to put on their cable roster,

1:10:21.320 --> 1:10:24.720
<v Speaker 4>on their lineup. And so we you know, we went

1:10:24.920 --> 1:10:28.439
<v Speaker 4>BT was interested. Netflix, we had some interest, Oxygen, we

1:10:28.479 --> 1:10:32.400
<v Speaker 4>had some interest, but Vice emerged as very interesting. They

1:10:32.400 --> 1:10:34.559
<v Speaker 4>called us in like it was very clear from the

1:10:34.560 --> 1:10:37.559
<v Speaker 4>beginning that they were very very interested. And what they

1:10:37.560 --> 1:10:40.280
<v Speaker 4>did was what happens with a series, is they bought

1:10:40.320 --> 1:10:43.880
<v Speaker 4>the pilot, so they actually funded instead of us shooting

1:10:43.880 --> 1:10:45.559
<v Speaker 4>our own pilot. This is what I said, hold off,

1:10:46.200 --> 1:10:49.480
<v Speaker 4>use a sizzle reel, use that as a selling mechanism.

1:10:49.880 --> 1:10:53.679
<v Speaker 4>Then the network will buy the pilot. They'll fund the pilot.

1:10:54.400 --> 1:10:57.960
<v Speaker 4>So now your pilot is coming from the specifications of

1:10:58.000 --> 1:10:59.479
<v Speaker 4>the network and they're telling you how they want to

1:10:59.479 --> 1:11:01.920
<v Speaker 4>see it. And the cool thing about this deal is

1:11:02.280 --> 1:11:04.920
<v Speaker 4>after you shoot the pilot, they have four months to

1:11:04.920 --> 1:11:07.080
<v Speaker 4>pick it up. If they pick it up, great, you're

1:11:07.160 --> 1:11:08.960
<v Speaker 4>you know, you got picked up. You're going to season one.

1:11:09.280 --> 1:11:12.320
<v Speaker 4>If they don't pick it up, you get the show back,

1:11:12.640 --> 1:11:15.360
<v Speaker 4>and then you get to sell it with a pilot.

1:11:15.439 --> 1:11:18.599
<v Speaker 4>That was made on someone else's dime. No one knows

1:11:18.640 --> 1:11:22.559
<v Speaker 4>that shit, Like I mean, like experience TV execs know that.

1:11:23.000 --> 1:11:25.879
<v Speaker 4>But I was blessed because Beth gave me the insight

1:11:27.600 --> 1:11:29.080
<v Speaker 4>and and I told her. I was like, hey, look,

1:11:29.160 --> 1:11:31.800
<v Speaker 4>I'm gonna be I guess, on camera talent, but like

1:11:32.360 --> 1:11:35.120
<v Speaker 4>you know, I'm a fucking businessman, and you know, like

1:11:35.560 --> 1:11:38.000
<v Speaker 4>I want to do this only if you'll lift the

1:11:38.040 --> 1:11:41.240
<v Speaker 4>curtains and give me a real honest look at like

1:11:41.400 --> 1:11:47.120
<v Speaker 4>what this whole process is, budgeting, developing, the concept, creative producing,

1:11:48.160 --> 1:11:50.479
<v Speaker 4>you know. And you know, she was like, all right,

1:11:50.520 --> 1:11:52.360
<v Speaker 4>let's do it if we're fortunate to get on a

1:11:52.439 --> 1:11:55.439
<v Speaker 4>ride because point zero one percent of all pilots get

1:11:55.439 --> 1:11:59.000
<v Speaker 4>picked up. And we defied the odds. We got picked

1:11:59.040 --> 1:12:00.679
<v Speaker 4>up and it was a razy ride.

1:12:00.680 --> 1:12:00.800
<v Speaker 3>Bro.

1:12:00.920 --> 1:12:03.760
<v Speaker 4>It was a twenty two person crew. I mean it was.

1:12:04.040 --> 1:12:07.559
<v Speaker 4>It's a multimillion dollar budget show. And how does that work?

1:12:07.600 --> 1:12:09.400
<v Speaker 2>So like when you get picked up after the pilot,

1:12:09.800 --> 1:12:11.200
<v Speaker 2>is it per episode or are you getting paid for

1:12:11.280 --> 1:12:11.639
<v Speaker 2>the season?

1:12:12.160 --> 1:12:16.400
<v Speaker 4>So so full disclosure, I you know, is just on

1:12:16.479 --> 1:12:21.040
<v Speaker 4>camera talent for season one because you got to start somewhere.

1:12:21.920 --> 1:12:25.280
<v Speaker 4>So the way that the mechanics work, because I got

1:12:25.280 --> 1:12:30.960
<v Speaker 4>insight is a production company gets paid a per episode fee.

1:12:30.960 --> 1:12:33.040
<v Speaker 4>That production company will say, hey, it's going to cost

1:12:33.120 --> 1:12:36.559
<v Speaker 4>us three hundred grand, four hundred grand, two hundred grand,

1:12:36.600 --> 1:12:38.360
<v Speaker 4>one hundred grand, whatever it is to make the show

1:12:38.400 --> 1:12:42.320
<v Speaker 4>you quoted out. The network agrees, and then the production

1:12:42.439 --> 1:12:45.320
<v Speaker 4>company typically keeps like ten percent of the budget is

1:12:45.360 --> 1:12:48.200
<v Speaker 4>their fee, and then they get to make whatever this,

1:12:48.400 --> 1:12:51.800
<v Speaker 4>you know, whatever money they don't spend. So like if

1:12:51.920 --> 1:12:53.760
<v Speaker 4>if it's one hundred thousand dollars per episode, but they

1:12:53.760 --> 1:12:55.880
<v Speaker 4>made it for seventy, they keep thirty plus their fee.

1:12:56.280 --> 1:12:59.599
<v Speaker 4>So anyway, that's how the actual mechanics work. But just

1:12:59.640 --> 1:13:01.920
<v Speaker 4>like you're gonna find a common theme here, you're not

1:13:01.960 --> 1:13:03.320
<v Speaker 4>really gonna make a lot of money in your first

1:13:03.360 --> 1:13:05.639
<v Speaker 4>real estate deal. You're not really gonna make a lot

1:13:05.640 --> 1:13:08.000
<v Speaker 4>of money your first angel deal or your first speaking

1:13:08.040 --> 1:13:13.360
<v Speaker 4>gig or season one. You use season one as a

1:13:13.360 --> 1:13:16.680
<v Speaker 4>way to get it going. Now, Beth, who sold the

1:13:16.720 --> 1:13:19.160
<v Speaker 4>show device could now turn around to another network and

1:13:19.240 --> 1:13:22.960
<v Speaker 4>sell another concept a lot easier, and then we can

1:13:23.000 --> 1:13:24.639
<v Speaker 4>get picked up season two and so forth.

1:13:25.160 --> 1:13:27.280
<v Speaker 5>Said that, remember we had an actor. We was in

1:13:27.400 --> 1:13:29.880
<v Speaker 5>la and he so seventeen. He said that he said,

1:13:29.880 --> 1:13:31.360
<v Speaker 5>he's actly what you said. He's an actor, he's not

1:13:31.400 --> 1:13:32.760
<v Speaker 5>a producer of the show. Where he was saying that

1:13:32.840 --> 1:13:36.439
<v Speaker 5>even for like an actor, your first year or two

1:13:36.520 --> 1:13:41.639
<v Speaker 5>years is like nothing. Then now you can negotiate like

1:13:41.320 --> 1:13:44.040
<v Speaker 5>a like it's like sports. Your first contract is a

1:13:44.080 --> 1:13:46.599
<v Speaker 5>little bit of money, and now you're in a position. Okay,

1:13:46.880 --> 1:13:49.240
<v Speaker 5>I performed. You know my work ethic. You see this,

1:13:49.320 --> 1:13:51.960
<v Speaker 5>da da da, Now you the second deal is like.

1:13:52.120 --> 1:13:53.040
<v Speaker 2>It's just like your resume.

1:13:53.160 --> 1:13:55.400
<v Speaker 4>And the interesting thing is I went through the negotiating

1:13:55.439 --> 1:13:59.360
<v Speaker 4>table with illusions. Dellusions are grandeur. I was like, Yo,

1:13:59.560 --> 1:14:01.760
<v Speaker 4>I want twenty g's an episode that I had heard

1:14:01.760 --> 1:14:04.439
<v Speaker 4>that that's what you get paid, and they were like, yo,

1:14:05.280 --> 1:14:08.640
<v Speaker 4>remove a couple of er and so like. But I

1:14:08.680 --> 1:14:10.280
<v Speaker 4>was like, Yo, how can that be because I had

1:14:10.600 --> 1:14:12.920
<v Speaker 4>I had a reference where I was making more per

1:14:12.960 --> 1:14:17.559
<v Speaker 4>episode on podcasting, and I realize, actually that that is

1:14:17.600 --> 1:14:21.479
<v Speaker 4>the case. TV has so much leverage because they know

1:14:21.600 --> 1:14:23.400
<v Speaker 4>that once you're on air, you're gonna make a lot

1:14:23.439 --> 1:14:27.479
<v Speaker 4>of money, and so you actually get paid very little

1:14:27.880 --> 1:14:33.679
<v Speaker 4>to be on unscripted i e. Reality television because they

1:14:33.800 --> 1:14:36.040
<v Speaker 4>know that you're gonna make money on the exposure, like

1:14:36.040 --> 1:14:39.080
<v Speaker 4>love hip hop, like lost of the characters. Yeah, well

1:14:39.120 --> 1:14:42.920
<v Speaker 4>people not even they are characters. Yeah, we know some

1:14:42.960 --> 1:14:45.719
<v Speaker 4>of them. So so that's how it works. So anyone

1:14:45.760 --> 1:14:47.519
<v Speaker 4>looking to make you know, a gatin TV, Well, let me.

1:14:47.520 --> 1:14:50.680
<v Speaker 5>Ask you this before we before we end this. All right,

1:14:51.280 --> 1:14:55.000
<v Speaker 5>you're you're an entrepreneur, right the way this is going,

1:14:55.920 --> 1:14:58.800
<v Speaker 5>does it make sense for somebody to go that traditional

1:14:58.880 --> 1:15:01.240
<v Speaker 5>route or to go in route YouTube?

1:15:01.400 --> 1:15:04.599
<v Speaker 3>And like, what's what's your thoughts on that?

1:15:04.720 --> 1:15:06.880
<v Speaker 4>I think right now that's a great question. I think

1:15:07.120 --> 1:15:11.519
<v Speaker 4>right now October twenty fifth, twenty nineteen, that the current

1:15:11.720 --> 1:15:14.439
<v Speaker 4>climate right now, there's a lot of money to be

1:15:14.520 --> 1:15:22.519
<v Speaker 4>made in branded projects. Branded projects that is, a brand

1:15:22.800 --> 1:15:30.679
<v Speaker 4>like Modello, Corona, Nike, Adidas, Cadillac or whatever. Like all

1:15:30.720 --> 1:15:35.280
<v Speaker 4>these brands are looking for ways to reach consumers. Remember

1:15:35.760 --> 1:15:38.240
<v Speaker 4>we started this media segment by me giving the basic truth,

1:15:38.280 --> 1:15:42.880
<v Speaker 4>and that was for a reason. Messenger message audience. It

1:15:42.920 --> 1:15:44.599
<v Speaker 4>could be on the phone, it could be on the vlog,

1:15:44.640 --> 1:15:48.280
<v Speaker 4>podcast writing, TV doesn't matter. But the reality is that

1:15:49.000 --> 1:15:53.200
<v Speaker 4>these days brands are looking for new and elevated ways

1:15:53.240 --> 1:15:56.320
<v Speaker 4>to reach audiences, and the way they're doing that is

1:15:56.479 --> 1:16:02.320
<v Speaker 4>via smaller content creators like us and if you could

1:16:02.320 --> 1:16:05.840
<v Speaker 4>position yourself the right way, you can position yourself to

1:16:05.920 --> 1:16:09.120
<v Speaker 4>extract some of those dollars. Because those budgets are flowing around.

1:16:09.160 --> 1:16:12.439
<v Speaker 4>I'm fortunate to see them. They're flowing around. Brands are

1:16:12.439 --> 1:16:16.920
<v Speaker 4>spending quarter million dollars for one event one night, quarter

1:16:16.960 --> 1:16:20.439
<v Speaker 4>million dollar for an event, you know, five hundred thousand

1:16:20.439 --> 1:16:23.559
<v Speaker 4>on a podcast literally a podcast season, a few million

1:16:23.600 --> 1:16:26.280
<v Speaker 4>on a show. You know. These these brands have budgets.

1:16:26.320 --> 1:16:29.439
<v Speaker 4>Now here's the thing. I don't know how much longer

1:16:29.520 --> 1:16:35.120
<v Speaker 4>this is gonna last. I'm looking around like, yo, what fuck?

1:16:35.240 --> 1:16:38.920
<v Speaker 4>Like there's money and everything these days. Yo. The other

1:16:39.000 --> 1:16:42.120
<v Speaker 4>day I got a I got uh, you know, product

1:16:42.160 --> 1:16:45.000
<v Speaker 4>from a company called Poopery, which is like you spray

1:16:45.040 --> 1:16:47.720
<v Speaker 4>this spray in a toilet before you take shit, And

1:16:47.800 --> 1:16:49.400
<v Speaker 4>like when I got paid to take a shit, I

1:16:49.479 --> 1:16:52.320
<v Speaker 4>was like, yo, you there is literally nothing that you

1:16:52.400 --> 1:16:57.960
<v Speaker 4>can't get paid for. So so right, So with that

1:16:58.080 --> 1:17:01.240
<v Speaker 4>in mind, I'm like, all right. One thing I know

1:17:01.560 --> 1:17:05.240
<v Speaker 4>is that there's a lot of budget flowing around for creators.

1:17:05.680 --> 1:17:09.040
<v Speaker 4>Another thing I know is that nothing lasts forever. So

1:17:09.080 --> 1:17:10.720
<v Speaker 4>the third thing I know is I'm gonna try and

1:17:10.760 --> 1:17:13.680
<v Speaker 4>make as much of this bread while it's around get

1:17:13.720 --> 1:17:16.599
<v Speaker 4>to the back. This is a market reality that's specific

1:17:16.640 --> 1:17:21.680
<v Speaker 4>to our generation. There are companies spending you know, incredible

1:17:21.680 --> 1:17:26.400
<v Speaker 4>amounts of bread to create content, to build communities, to

1:17:26.520 --> 1:17:29.920
<v Speaker 4>reach people. So with that being said, are you gonna

1:17:29.960 --> 1:17:34.200
<v Speaker 4>put in the effort to build the community? And if

1:17:34.240 --> 1:17:38.160
<v Speaker 4>you do and you become top five, you will get

1:17:38.240 --> 1:17:42.040
<v Speaker 4>hit up for opportunities to get paid to do what

1:17:42.080 --> 1:17:42.439
<v Speaker 4>you love.

1:17:43.760 --> 1:17:44.240
<v Speaker 3>It's a lot.

1:17:44.760 --> 1:17:47.160
<v Speaker 5>Yeah, man, that was powerful. Man, Thank you, Thank you

1:17:47.200 --> 1:17:49.360
<v Speaker 5>for coming in and appreciate that. Something that you will

1:17:49.400 --> 1:17:52.400
<v Speaker 5>even looking forward to. And I think every segment it

1:17:52.439 --> 1:17:55.320
<v Speaker 5>was I learned every single you.

1:17:55.280 --> 1:17:57.360
<v Speaker 2>Know, as you're talking, I'm just thinking like, Yo, this

1:17:57.439 --> 1:18:00.800
<v Speaker 2>guy's twenty six years old, or those experience that you

1:18:00.880 --> 1:18:03.800
<v Speaker 2>had sound like a lifetime, sound like a biopic. Like

1:18:04.120 --> 1:18:06.679
<v Speaker 2>you know, I'm thinking like he's doing that at twenty two,

1:18:06.800 --> 1:18:10.519
<v Speaker 2>twenty three, twenty like what we're trying to figure out? Yo,

1:18:10.600 --> 1:18:19.040
<v Speaker 2>we're going to caravan? My god, this is great, prody.

1:18:19.120 --> 1:18:19.400
<v Speaker 3>Thank you.

1:18:19.920 --> 1:18:23.360
<v Speaker 4>Oh wow, we're not worthy of that, but thank you.

1:18:23.400 --> 1:18:23.639
<v Speaker 3>Man.

1:18:24.520 --> 1:18:26.360
<v Speaker 4>You know, just a kid that started doing early. The

1:18:26.439 --> 1:18:28.320
<v Speaker 4>earlier you start doing, you know, the more time you

1:18:28.360 --> 1:18:30.320
<v Speaker 4>get under your belt. But thank you guys man, it

1:18:30.360 --> 1:18:33.080
<v Speaker 4>was great to hop on this platform. And I hope

1:18:33.080 --> 1:18:35.519
<v Speaker 4>that you guys audience fucks with it and if they do,

1:18:35.640 --> 1:18:36.960
<v Speaker 4>we can do a second installment soon.

1:18:37.040 --> 1:18:39.280
<v Speaker 3>Yeah, for sure, for sure. Anything you want to tell

1:18:39.320 --> 1:18:40.080
<v Speaker 3>the people.

1:18:40.520 --> 1:18:42.720
<v Speaker 4>No, man, just I love you guys man, for real,

1:18:42.760 --> 1:18:48.840
<v Speaker 4>even if we haven't met, because damn man, Like, proximity

1:18:48.880 --> 1:18:51.080
<v Speaker 4>is everything. Man, you can't be what you can't see.

1:18:51.920 --> 1:18:54.840
<v Speaker 4>And I appreciate each of us playing our part, whether

1:18:54.880 --> 1:18:58.679
<v Speaker 4>it's consuming the content and then taking action on that content,

1:18:58.880 --> 1:19:01.240
<v Speaker 4>or it's distributing the content or sharing the mess, whatever

1:19:02.320 --> 1:19:04.680
<v Speaker 4>your role in this whole thing is. I really do

1:19:04.720 --> 1:19:07.679
<v Speaker 4>think we're living in some special times, bro. Like we're

1:19:07.680 --> 1:19:11.160
<v Speaker 4>living in the same way Dizzy and Bird knew each

1:19:11.160 --> 1:19:12.880
<v Speaker 4>other when they were playing jazz, in the same way

1:19:13.000 --> 1:19:15.280
<v Speaker 4>Nas and Hove like knew each other coming up. Like,

1:19:15.360 --> 1:19:19.360
<v Speaker 4>I really think entrepreneurship or whatever is the new zeitgeist.

1:19:19.680 --> 1:19:22.720
<v Speaker 4>And I'm just, you know, honored to be part of

1:19:22.760 --> 1:19:23.439
<v Speaker 4>this whole space.

1:19:24.400 --> 1:19:27.639
<v Speaker 3>For sure. We honored to have you Troy any housekeeping items. Yeah, yeah.

1:19:27.680 --> 1:19:28.760
<v Speaker 2>We just want to give a big shout out to

1:19:28.800 --> 1:19:31.280
<v Speaker 2>everybody on patreon dot com that is proud to pay

1:19:31.360 --> 1:19:33.280
<v Speaker 2>program you already know how that works.

1:19:33.280 --> 1:19:34.040
<v Speaker 3>This five tiers.

1:19:34.600 --> 1:19:36.879
<v Speaker 2>It allows the podcast to do a lot of things, travel,

1:19:37.479 --> 1:19:39.880
<v Speaker 2>put on events, like we said, we got something to

1:19:39.880 --> 1:19:41.439
<v Speaker 2>coming for DC and we.

1:19:41.479 --> 1:19:42.360
<v Speaker 4>Got some new numbers.

1:19:42.439 --> 1:19:47.120
<v Speaker 2>Yeah, Curvin's shout out to you, Al Swin, Andrew, Jeff,

1:19:47.120 --> 1:19:49.240
<v Speaker 2>and shout out to Rex. He's a T five member,

1:19:49.280 --> 1:19:51.719
<v Speaker 2>so shout out to him and everybody supporting the merger

1:19:51.760 --> 1:19:52.920
<v Speaker 2>on earnielisia dot com.

1:19:53.080 --> 1:19:54.400
<v Speaker 3>Patreon is in the community.

1:19:54.680 --> 1:19:55.320
<v Speaker 4>That's a big one.

1:19:55.720 --> 1:19:58.040
<v Speaker 2>Yeah, we we We said that we're gonna do something

1:19:58.040 --> 1:19:59.920
<v Speaker 2>when we get to one hundred. We had like ninety

1:20:00.280 --> 1:20:01.680
<v Speaker 2>six right now, so we're going to do something what

1:20:01.760 --> 1:20:04.000
<v Speaker 2>we get to one hundred patrons the.

1:20:03.920 --> 1:20:05.799
<v Speaker 5>Show and the book tip of the week is Steve

1:20:05.920 --> 1:20:07.200
<v Speaker 5>jobs autobiography.

1:20:07.479 --> 1:20:08.280
<v Speaker 3>Actually write that book.

1:20:08.280 --> 1:20:10.640
<v Speaker 5>It was actually a really good book, inspirational when it

1:20:10.680 --> 1:20:14.200
<v Speaker 5>kind of outlies his whole journey in business. So yes,

1:20:14.280 --> 1:20:16.280
<v Speaker 5>once again, thank you guys rocking with us. We'll see

1:20:16.280 --> 1:20:16.840
<v Speaker 5>you next week.

1:20:16.880 --> 1:20:18.840
<v Speaker 4>Peace Peace, Peace Earners.

1:20:19.640 --> 1:20:23.560
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