Calvin Butts, the co-managing partner of East Chop Capital, joins Forbes senior writer Jabari Young at the Nasdaq MarketSite to discuss the private equity firm’s $11 million real estate fund, and reveals where opportunities exist in the sector.
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0:00 Introduction
0:41 What Stock Investing Advice Has Paid Off For Calvin Butts?
3:50 What Is East Chop Capital's Focus: Luxury Homes Or Apartments
6:23 The State Of Rental Properties In US
10:39 How East Chop Capital Is Creating Jobs
20:32 What Was The Process Like With Starting East Chop Capital?
26:46 What Has Changed For Calvin And East Chop Capital With Success?
32:15 How Do Capital Opportunities For Black And Brown Communities Come About?
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Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.
Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1
Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:
https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript
0:00 Introduction
0:41 What Stock Investing Advice Has Paid Off For Calvin Butts?
3:50 What Is East Chop Capital's Focus: Luxury Homes Or Apartments
6:23 The State Of Rental Properties In US
10:39 How East Chop Capital Is Creating Jobs
20:32 What Was The Process Like With Starting East Chop Capital?
26:46 What Has Changed For Calvin And East Chop Capital With Success?
32:15 How Do Capital Opportunities For Black And Brown Communities Come About?
Stay Connected
Forbes newsletters: https://newsletters.editorial.forbes.com
Forbes on Facebook: http://fb.com/forbes
Forbes Video on Twitter: http://www.twitter.com/forbes
Forbes Video on Instagram: http://instagram.com/forbes
More From Forbes: http://forbes.com
Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.
Category
🛠️
LifestyleTranscript
00:00 investing in real estate.
00:02 playing a long game and t
00:04 We'll tell you what one p
00:06 is doing to make returns
00:09 that. Hello everyone. It'
00:13 senior writer at Forbes m
00:16 site and I am joined by C
00:18 He's the co managing part
00:21 He mainly invest in real
00:24 focusing on luxury vacati
00:26 angel investors and media
00:30 companies. Calvin, welcom
00:32 Thanks for coming. Thanks
00:34 man. Big fan of the show
00:36 here. I appreciate that m
00:38 your first time at the ne
00:40 here for the bell ringing
00:41 right now. So you're fami
00:43 your way around. So tell
00:45 a stock. You got to give
00:48 you're looking at that yo
00:50 well for you. What do you
00:52 advice to people? Honestl
00:53 a lot of time for what ty
00:55 investing. I tell people
00:57 on a daily basis? Yeah. Y
00:59 companies that you actuall
01:02 paying bills to and thing
01:04 for me, I mean a lot of T
01:08 a lot of the companies my
01:10 roadblocks and others. I
01:13 in my my daily life and t
01:15 I utilize on the day. So
01:17 car company starts because
01:19 right? I've done very wel
01:22 we go. I've been an invest
01:25 of cars for a while. Defi
01:27 man. But again here at th
01:30 dive into the business of
01:32 fresh off of raising fund
01:35 fund. 11 million raised A
01:38 when it happened off of a
01:40 that you did a few years
01:43 mainly in luxury vacation
01:45 interesting sector. 10 mi
01:48 in Orlando that you have.
01:50 underdevelopment or that
01:52 portfolio. And I love wha
01:54 in Orlando because you're
01:55 near Disney and universal
01:57 to talk at this because I
01:59 back and now I have a 10
02:01 this sector is forecasted
02:05 by 2033. Man. Why vacatio
02:09 the inside of this race?
02:11 you think about, you know
02:13 travel today and the plac
02:14 to go lakes, beaches, mou
02:17 where we focus and those
02:19 spots across the country
02:21 as well. Right? So we thi
02:23 beautiful homes and beach
02:25 as well as the many golf
02:28 that are out there. And t
02:29 destination attractions l
02:31 Universal Studios and Dis
02:35 I mean, we're 10 minutes
02:38 20 minutes from Disney Wo
02:40 luxury homes with their o
02:43 of them with their own po
02:45 own water parks. And then
02:48 now we have arcades, our
02:51 basketball course, bowling
02:53 providing just a unique r
02:56 in the home, but then als
02:58 areas. Absolutely. Societ
03:00 that the private equity f
03:02 where they build these ho
03:04 getaway society is our br
03:06 of our homes are kind of
03:09 you can find everything f
03:11 or Martha's Vineyard to 1
03:14 and then many stops in be
03:17 Tennessee, Broken Bowl, O
03:19 South Carolina, Virginia
03:22 Mountains. So we've done
03:24 the board. Now, are you c
03:27 against Airbnb? Like agai
03:29 How does that work with w
03:31 So we own and operate our
03:33 them as partners. They he
03:36 travelers and our guests.
03:39 bookings to us. We have l
03:41 firms, but then also our
03:42 on Verbo and on Airbnb an
03:46 well. And we utilize them
03:49 great partners of ours. Y
03:50 inside of the tech and we
03:52 off camera that you guys
03:54 at 5 to 12 bedroom homes,
03:57 to your partner, Karen sa
03:59 in this range and you, yo
04:01 on a range of groups who
04:04 a luxury home. We was tal
04:05 love renting luxury stuff
04:07 a luxury car, a boat, a h
04:11 those 5 to 12 bedroom hom
04:13 focuses. Absolutely. So t
04:15 homes give us the opportu
04:17 suites across the board.
04:19 families in their multipl
04:21 privacy. And then the way
04:23 being laid out now, we ha
04:25 spaces. So you can have t
04:27 to go outside, smoke ciga
04:29 want to sit in the kitchen
04:32 wine cellars and we have
04:34 there will be multiple en
04:36 with TVs and we have oppo
04:40 for the kids, right? Arcad
04:43 rooms, Xbox controllers.
04:45 for, you know, for the mo
04:48 luxury, but also have spa
04:50 together and have large,
04:52 have huge dining room sit
04:55 can come together and hav
04:56 and dinner. So we really
04:59 and know that the future
05:01 about large groups, multipl
05:04 together, sharing the cos
05:06 overall experience as a g
05:09 demographics? Is it that
05:11 that Gen Z young group? I
05:13 high end consumers? Who a
05:15 with these homes? I tell
05:16 I mean, we've welcomed bo
05:19 We've welcome multiple fa
05:22 many family reunions. We'
05:25 fraternity lines having t
05:27 mean, we've seen it acros
05:29 seen folks kind of come i
05:32 country just kind of meet
05:34 centrally located. Like i
05:36 down from the northeast t
05:38 meeting with the folks fr
05:40 southern states and right
05:44 place folks to get to. So
05:46 have, you know, many gett
05:47 union is just really base
05:50 of meeting halfway in the
05:51 that 11 million that you
05:53 that you've started to de
05:55 so we're at. Yeah. So the
05:57 right now being deployed
06:00 Okay. So we have a 12 bea
06:02 that will come online hop
06:06 Okay. I get a discount fo
06:07 Absolutely. Absolutely. A
06:09 better. So we're very exc
06:12 homes. I mean, they're go
06:14 views of the championship
06:16 there in the union resort
06:17 be 10 minutes from, you k
06:20 and you know, very short
06:23 world. Yeah. Now listen,
06:25 camera again. Um, you kno
06:27 rental house companies ac
06:30 under fire a little bit t
06:32 Journal, I quote hosts an
06:35 companies face for more f
06:38 of hotel companies, union
06:40 worried about traffic, pa
06:43 also the advocates have b
06:45 that, you know, renting h
06:48 and shrinks the housing s
06:51 rents. What are your thou
06:53 because again, this is a
06:55 in and it seems like it's
06:57 politicians are saying, h
06:59 coming up and some of the
07:00 trying to do is raise tax
07:03 properties and would have
07:04 thoughts on that? Well, s
07:06 it's a balance, right? So
07:09 that attracts. So I have
07:11 that are in neighborhoods
07:13 rentals and we have short
07:14 where I also have persona
07:17 the conversation around i
07:20 also know that many of th
07:23 the rental community to s
07:25 Right? So I think it's ab
07:27 as an owner, I want to ma
07:30 community stays thriving,
07:32 the nice amenities. I real
07:36 neighbors who come down f
07:38 can't provide the income
07:41 that makes that viable. S
07:45 on a weekly basis help pr
07:48 I think with the right ru
07:51 and stronger property man
07:53 know, a lot of these prob
07:55 right? But it is, it is a
07:58 one of the things we've d
08:00 we manage our communities
08:02 them is we've joined the
08:05 HOA is right. So I'm on t
08:07 dunes down in Hilton at S
08:09 we can help provide the p
08:12 home rental owner on, yo
08:15 folks that we're, that we
08:18 know, we strive for, you
08:20 try to really come a good
08:22 community. And you know,
08:24 be a balance of finding t
08:27 the different neighborhoo
08:29 term rentals, what are fu
08:31 then what people call now
08:34 home vacation home lifesty
08:36 all of them can truly quo
08:38 right rules and regulatio
08:40 going anywhere. It's not
08:42 is the future. Yeah, most
08:44 is a, we booked the room
08:46 through Marriott? No, Air
08:48 know, they say, you know,
08:49 more. That's what I want
08:51 look into East chapter man
08:54 investors in these funds,
08:57 93 L. P. S. And fun to um
09:01 Have any notable people i
09:03 we've had everywhere from
09:05 to chief information offi
09:07 our largest financial ins
09:10 several folks who have di
09:12 from Wall Street to educa
09:15 doctors, lawyers, dentists
09:18 entrepreneurs, large pro
09:20 diversify their, their in
09:23 exciting is we have a lot
09:25 in the private equity wor
09:28 able to educate them. You
09:30 to our investors is to pr
09:34 best financial, social, e
09:37 So for us, a great part o
09:39 folks on how to make inve
09:41 they qualify? What invest
09:43 it exposing people to pri
09:46 been probably the most re
09:47 job is getting people int
09:49 market investments because
09:50 hooked, right? They find
09:53 involved in behind big na
09:55 people and founders and i
09:58 new, you know, new matrix
10:01 time investors, how much
10:03 how much are you guys see
10:05 If I'm a first time invest
10:07 How much do I need if, yo
10:09 to maybe 3? Sure. So well
10:11 be different. Okay. Right
10:13 grow, we've gotten larger
10:14 So we first started in fu
10:16 investment was 25 K. Okay
10:18 piece that out. It was li
10:21 another deposit and then
10:24 people had a time to kind
10:25 That was fun. One fun to
10:28 100 K. Okay. Fun three, d
10:31 we want to get, you're pr
10:33 between 100 to quarter mi
10:36 investment. Okay. Can we
10:38 Yeah, well, we're gonna h
10:41 throughout East job capit
10:43 gonna, we're probably loo
10:45 million dollars worth of
10:47 stuff. So we'll have indi
10:49 where folks can get invol
10:51 to unique projects that w
10:54 college housing, whether
10:57 individual vacation home
10:59 areas where we want to ju
11:01 that area. So we're gonna
11:02 at getting as many people
11:04 is to make it accessible.
11:06 we've learned is to scale
11:09 had success doing friend
11:11 want to make sure we make
11:13 investments accessible fo
11:15 angel investors. This isn
11:17 right? You have your dive
11:18 because you're having, yo
11:20 companies, a hotel fund t
11:22 a starbucks licensee, uh,
11:25 And also uncle nearest, y
11:29 and uncle nearest. We jus
11:30 on our daily cover love a
11:33 sister, false on the bran
11:36 a CEO and co founder. So
11:38 lightning in a bottle. I
11:40 vineyard and maybe 2016,
11:44 found me on instagram, uh
11:46 that has a very unique bu
11:49 they wanted to come and d
11:51 So she and her team came
11:54 didn't invent in my backy
11:55 to sit and talk to her. A
11:58 were their early investor
12:00 collection of uncle near
12:02 he said you should be an
12:04 and at the time I'm like
12:06 the shelf. Like she doesn
12:08 like, look, this is a gro
12:09 scaling. You should find
12:11 if, you know, matter of f
12:13 some of my shares. So he
12:15 chance to buy some of his
12:17 led to my first investmen
12:19 uncle nearest and then ge
12:22 a lot of time with her. S
12:25 of her investor base, how
12:28 investors. So she challen
12:30 capital for us. So we did
12:32 top capital vehicle, we c
12:34 now became the largest mi
12:36 uncle nearest. So we've d
12:40 we've just had just a rol
12:43 from our investor base an
12:45 to tour the distillery. I
12:47 to travel with fun all ov
12:49 and I were in boston doin
12:52 review just recently were
12:55 they tell the story of th
12:57 in the Cognac in France.
12:59 times for uncle nearest.
13:01 a billion dollar valuatio
13:03 is on our way to the moon
13:05 Hopefully we can crown he
13:07 I'm saying about 2025, ri
13:11 her that billionaire pheno
13:12 on Forbes.com. If you hav
13:14 Weaver and uncle nearest
13:16 Let's take it to your bac
13:17 You were born in Savannah
13:21 know your mom and dad, bu
13:23 coming up in Savannah Geo
13:25 And so I'm always curious
13:27 growing up in other areas
13:29 grew up in Savannah Georg
13:30 health care. My father wa
13:33 medicine, hypertension sp
13:35 know, you know, family ha
13:37 recognition in town. So,
13:39 local public schools, the
13:41 were my dad's patients an
13:43 there was, there was defi
13:45 could do no wrong, but al
13:48 you and kind of mind you.
13:51 was that I probably would
13:52 house or have, you know,
13:55 at Hampton University, wa
13:57 town near the water and H
13:58 of fit, fit their profile
14:00 grew up with a lot of lov
14:03 the community. I go back
14:05 my local high school. I j
14:07 donation. 25. Yeah, yeah,
14:10 to them just to make sure
14:12 the resource in their exp
14:14 being in high school and
14:17 came to speak and talked
14:19 and some of the assets he
14:21 to go back and do the sam
14:22 really motivated me showi
14:24 with the glasses. They fi
14:27 Exactly. Exactly. He came
14:30 high school, showed us a
14:32 his plane and his boat an
14:35 And I just remember goin
14:36 I can do it. And you know
14:38 and do the same thing and
14:40 So I got a chance to pull
14:43 some of the kids and it w
14:45 experience. Did you do it
14:46 did. I knew it. So I mean
14:49 your dad was your mentor,
14:51 his father's day, right?
14:53 fathers, what's the bigge
14:54 learn from your dad? You
14:56 me success is where prepa
14:59 right? And so uh you know
15:01 able to kind of dream big
15:05 work. You know, um you kn
15:09 brother and I find that o
15:11 to kind of talk to us thr
15:13 he's always telling us, y
15:16 hard, you know, enjoy you
15:18 forget to do the work, yo
15:19 worked very hard. He show
15:21 every weekend, his commit
15:24 his commitment to the com
15:26 try to live by that examp
15:27 the next biggest thing is
15:29 My father went to savannah
15:32 booster and supported the
15:34 I as a trustee of Hampton
15:36 a lot of time as chair of
15:38 Student Life Committee, s
15:40 traveling with the team,
15:42 trying to help them build
15:44 programs because as you k
15:47 that's that's that's HBCu
15:49 is their success in athle
15:51 and you pick it up there
15:52 and after Hampton, you go
15:54 school, right? But forget
15:56 went to Temple Business S
15:59 right? Temple University.
16:01 thing you learn and bigge
16:03 school and we'll say in T
16:06 at Temple, I got my execu
16:07 Temple and I did some uh,
16:11 or certificates of vacati
16:14 But I would say Temple En
16:17 valuable lesson. At the t
16:20 I was on the fence on cor
16:23 and I was going to make t
16:25 my NBA experience to deci
16:27 fall heavier on which sid
16:30 kind of talking through t
16:32 meeting with my classmate
16:34 on what I was getting rea
16:35 space with each of capita
16:39 became investors. And so
16:43 fireball of energy come o
16:45 to just go full steam ahe
16:48 and the private equity. A
16:50 me make that decision fro
16:52 So Temple major do entrep
16:55 led me towards being more
16:58 No question. Yeah. So I m
17:01 dig into your background
17:03 in property management an
17:06 digging into your backgro
17:07 single family home in Phi
17:10 right? And then in 2014 y
17:12 and your partner in the P
17:14 this luxury space up ther
17:17 meet at a Hampton home co
17:20 in the Poconos right wher
17:21 vacation home. Um and the
17:24 other homes in 2014 to 20
17:27 that kind of happened. We
17:30 life philosophy and what
17:33 Um but you know, finding
17:36 your family is where that
17:37 the integrated life. Uh a
17:39 now at East Top Capital i
17:42 assets under management.
17:44 young black man who might
17:47 into private equity, whet
17:48 estate or some other. Wha
17:50 How did you guys build ea
17:52 step one? Sure, sure. So
17:54 know, you mentioned the s
17:55 M. Carter, my business pa
17:57 Ohio, uh, called me up an
18:01 this trip that he had on
18:03 at this Hampton alumni ev
18:05 me about the ski trip and
18:08 the Poconos, how much you
18:10 the research on the house
18:12 out. Wow, you paid about
18:14 the weekend for about eig
18:16 the house is worth X and
18:18 this is looking pretty go
18:20 buy the house immediately
18:22 wouldn't sell it to us, b
18:24 would build us one. So we
18:26 bought the lot next door.
18:28 Karen and I became busine
18:30 from there, bought on the
18:32 personally on the vineyard
18:35 bought again, Hilton head
18:37 and family were starting
18:39 guys are making money, bu
18:43 assets, luxury assets and
18:46 are enjoying, you know, t
18:48 purchases. So we had tons
18:51 fraternity brothers, every
18:52 hey, how can I invest? Ho
18:54 it just made sense to go
18:57 route to pull money toget
19:00 and look at a larger grou
19:02 assets. And that's really
19:05 equity. So instead of doi
19:07 investments on house one,
19:10 we raised capital and we
19:12 an opportunity for Karen
19:14 hand select and pick the
19:17 them and then we will let
19:19 and operate kind of with
19:21 the business and you know
19:23 the homes and stay in the
19:25 available. You know, we h
19:27 kind of program where, yo
19:30 are available, our invest
19:32 give us feedback, provide
19:35 of insight on their state
19:37 experience better for our
19:39 Um So yeah, it's a, I mea
19:42 just very mix of integrat
19:45 and networks to our passi
19:47 You mentioned I started i
19:49 I was doing single family
19:50 philadelphia. And you kno
19:54 Children one saturday did
19:56 out with me while I was d
19:58 properties. They did not
20:01 now. I mean, you know, th
20:04 Pocono, they love going V
20:06 love going to these house
20:07 hang out, bring friends a
20:09 a good time. You know, th
20:11 well equipped with the am
20:13 they also enjoy home as w
20:15 know, they're close, they
20:17 etcetera. So it's a real
20:20 time. And like you say, i
20:22 big, big thing of mine wh
20:24 to make sure everything I
20:27 I spend time with those I
20:29 close to me get a chance
20:31 as well. How do you talk
20:33 you say, hey, we got a pr
20:35 I mean, I know that they
20:37 seeing how you guys are m
20:39 building them. But when y
20:41 equity and you're raisin
20:43 I've always been curious,
20:45 I made this switch from s
20:48 I'm like private equity h
20:49 I'm interested in. I've a
20:51 into it. But I've always
20:53 raise that money? Like wh
20:55 you have? I know you got
20:57 got to do all that. But o
20:59 when you're looking at in
21:00 believing, hey, who is th
21:04 now you find yourself on
21:06 this, right? If I'm looki
21:08 what type of jockey am I l
21:10 you guys talking people i
21:12 to go and flip it for? Ye
21:14 that Karen and I do a ver
21:16 that we put our money in
21:17 right? So we think about
21:19 was Karen tonight's priva
21:21 before we went and raise
21:24 people, our money's here
21:26 our money's here on the v
21:27 how much that first house
21:29 lot was 85 K and we were
21:31 300,000 all in. I think w
21:34 little under five and we
21:37 that house. We're gonna 1
21:39 into some unique opportu
21:41 profit on it. Oh, absolut
21:44 very much. Almost double
21:47 call me man, let me get i
21:49 done very well in real es
21:51 done very well. But I mea
21:52 of those trying to get in
21:54 it's going to start with
21:55 good networking, right? Y
21:57 be able to have to put yo
21:59 where people are looking
22:00 looking for returns. Then
22:02 build your own track reco
22:04 own credibility. If you d
22:05 then it's about your cred
22:07 your character, who you a
22:09 know, our very first inves
22:13 our college president. H
22:15 He knew us as students. H
22:18 as a, as an alumni, as a
22:20 very confident putting hi
22:23 and I. Right. So I mean t
22:24 shows you what it takes,
22:26 start off with, you know,
22:28 your character and then,
22:30 know your, know your area
22:33 Uh, we knew our industry
22:34 success in it individually
22:37 the polka notes, having b
22:38 having bought Hilton head
22:40 looking at, hey guys, we'
22:41 we're doing our, we're do
22:44 now know the system, we h
22:46 and we have realtors who
22:48 just need more capital. S
22:50 our original story, it wa
22:52 right? You know, it's wor
22:55 want to bring you in. And
22:58 raised that first four mi
23:00 a while. I mean, it took
23:02 and a half years to raise
23:03 door, even at 25 K minimum
23:07 second fund. Was that the
23:08 you build in the relation
23:10 absolutely. Absolutely. A
23:12 and the education part fo
23:14 is their first investment
23:16 Now we did this with no m
23:18 institutional investment.
23:20 this friends and family,
23:22 you know, going to Jack a
23:24 know, just my neighbors i
23:27 Carrington going around t
23:29 You know, we went back to
23:31 I mean, Hampton Universit
23:32 for us. We have a nice pe
23:36 or HBCU grass and simply
23:39 know, because we told our
23:40 a chance where we were at
23:43 we came back football gam
23:45 for us in front of people
23:48 our hand and say, this is
23:49 Would you like to join us
23:51 be involved? This is what
23:53 how much we're asking for
23:54 you along the way. And I'
23:56 part is so key. What's mo
23:59 find rewarding is that we
24:01 of our investors go on an
24:03 vacation homes. Wow. Do t
24:06 into different markets. W
24:07 investors coming in? Well
24:10 the majority of them were
24:11 were buying their first s
24:13 did it based on our model
24:15 our spreadsheets. We intr
24:17 realtors, the property ma
24:19 made it very easy for the
24:21 their own direct generati
24:25 the luxury vacation on ma
24:26 that model to is interest
24:28 you guys are looking at i
24:30 these, you know, leases o
24:32 you adjustable market, ri
24:34 have to have it for occup
24:37 You can go in and out and
24:39 What's what else in that
24:41 for you guys is working?
24:43 know, it's about. So now
24:45 a loyalty program to get
24:47 folks can, you know, earn
24:50 like you do at your major
24:52 the more you stay with us
24:54 you refer to us, we're gi
24:57 to have discounts on on l
25:00 them extra nights when av
25:02 our, our investors are re
25:05 right? Because they own t
25:07 want to see the properties
25:09 their friends and family
25:11 and stay in the homes. An
25:14 marketers, right? Because
25:16 promoting the homes in th
25:18 they own them with us. Th
25:20 the houses with us. Absol
25:22 Well, listen, man, looking
25:24 of the things you guys di
25:27 right? You were buying ho
25:29 interest rates was way lo
25:31 more for land and using t
25:34 it later and you work wit
25:36 to build on a variety of
25:38 that pivot been like for
25:40 just buying homes because
25:42 more money to do business
25:44 we're just gonna buy the
25:45 currency had a great idea
25:48 coming out of Covid, we h
25:49 most of our homes had dou
25:51 and we were looking at th
25:53 and so we were buying lan
25:55 cash and the idea was to
25:59 on to the assets until in
26:01 return back, return capit
26:05 and it's been a model tha
26:07 to. So, yeah, so we're bu
26:09 right now. I have two bea
26:11 online will break ground
26:14 texas, which is south of
26:16 the gulf coast there. We'
26:18 that. So we have two lots
26:20 there that will eventually
26:22 through a final architect
26:24 those plans. So fun to wil
26:27 assets and then, you know
26:29 rates drop, we will be ab
26:33 out and we have a great b
26:35 and Liberty Bank who has
26:39 to supporting our journey
26:42 investor through their, t
26:44 management group. So we'r
26:46 them on board. Absolutely
26:49 looking ahead to some mac
26:51 let me get it out there.
26:53 get you out of here. P. E
26:56 you were just talking off
26:58 and company have released
27:01 private equity report and
27:04 are sitting general partn
27:05 3.2 trillion in unsold as
27:09 flow capital back to L. P
27:11 They called the market st
27:14 March 2024 when they rele
27:17 private equity report. No
27:19 it still stalled anything
27:21 I think it depends on the
27:24 right. So I think we look
27:25 in general, you know, the
27:27 but I think looking at lu
27:29 I mean, you're still seei
27:31 lakes, beaches, mountain
27:33 we are with these beautif
27:35 income producing revenue
27:38 And so there's always goi
27:40 those type of assets, esp
27:41 institutions and P. Firms
27:43 to parking cash and real
27:45 want the cash flow and th
27:47 asset that, you know, giv
27:49 against tech. So I think
27:52 will continue to be stron
27:55 see some, we'll see some
27:57 rates do what they do, yo
28:00 confident in the luxury v
28:02 and very excited to see o
28:05 not only for the revenue,
28:06 appreciation over time be
28:09 beaches, mountain resorts
28:11 be proven as appreciating
28:14 and memorial. Yeah, looki
28:16 the U. S. You know, real
28:18 So commercial real estate
28:19 interested in again, hig
28:22 playing a factor in this.
28:25 on a commercial real este
28:26 of big cities going throu
28:29 doom loops, downtowns are
28:32 centers are at play in th
28:34 commercial real estate, y
28:35 anything? You shop capit
28:37 Absolutely. So we have, l
28:39 about 100 million in real
28:41 that includes commercial
28:43 housing, etcetera. We hav
28:45 to look at, uh, not did p
28:48 in B plus cities, B plus
28:51 So like, you know, you th
28:52 cities that are kind of g
28:54 Austin, Nashville, Colum
28:59 cities that are really be
29:00 popular due to folks movi
29:06 in tech and other jobs th
29:08 in those areas. So we're
29:11 a lot of mixed use, resid
29:13 in those areas. And then
29:15 small towns, even small t
29:17 that are seeing some grow
29:19 economic change. We want
29:22 we've identified some, so
29:24 as well. A wave of people
29:26 to take advantage of the
29:27 down there. I said, listen
29:30 I want to move back to Te
29:32 taxes down there. Um, rea
29:34 A. I. When you hear that,
29:36 phrases, what comes to mi
29:37 to change this sector? We
29:40 I mean, it gets disrupted
29:42 uh, you know, new technol
29:44 comes out. I say with a I
29:47 see, you know, smarter to
29:49 right? You know, you're g
29:51 little wiser on how you p
29:54 and who you're competing
29:56 know, a lot of the A. I c
29:58 us just kind of navigate
30:01 are available in certain
30:02 information and how it flo
30:05 it's all upside. I mean,
30:07 ability to bring technolog
30:10 any industry, you know, y
30:12 upside the opportunity in
30:13 we're excited about the i
30:15 into the real estate spac
30:18 around the ability just t
30:20 Yeah. Are you, is it a pe
30:23 real estate agents? Shoul
30:25 because these are white c
30:27 at risk. Generally, I can
30:30 present you with the pres
30:31 do all these things. If y
30:33 agent, should you be thin
30:36 the way that you do your
30:37 you should evolve into mo
30:40 opportunity, right? So ou
30:42 down in Hilton head, I me
30:45 sending me links to house
30:48 with interior design, dec
30:52 know, guest management, r
30:54 his business knowing that
30:58 of the day to day managem
31:00 of us not being in the ar
31:02 our local eyes and ears.
31:05 that's that's where they
31:07 to in my opinion because
31:10 can I find locate and do
31:14 on some dot com now? Abso
31:17 now to buy real estate wi
31:21 anyone. But the relations
31:24 is important, especially
31:26 have a scale business wit
31:29 So we still look for that
31:31 relationship with the rel
31:34 is we're getting a signif
31:37 contracting on a home, we
31:39 locally, we're getting ow
31:42 the property at any time
31:45 system for local resourc
31:47 I think that's where a go
31:50 and evolve their their cu
31:52 presidential race man, th
31:55 in the U. S. Presidential
31:57 interesting poll came out
31:59 not too long ago saying t
32:01 to see trouble amongst bl
32:05 a co managing partner at
32:07 firm. I know you want to
32:09 real estate as well, but
32:11 to him. What do you want
32:13 sitting president? You kn
32:14 you're black man in this
32:16 know, we just want to see
32:18 right opportunities for f
32:21 for to participate. I thi
32:24 I think we've proven that
32:27 and very aggressive and w
32:30 in our own rights. We jus
32:32 Absolutely need need a ne
32:35 ability to jump ball. Abs
32:38 you collect cars, you kno
32:40 91 BMW Ferrari and 95 ran
32:43 assume you made a million
32:45 Okay, I'm gonna I know yo
32:47 listen, your first millio
32:49 spend it? How did you mak
32:53 I made it in the healthca
32:56 I still own two marketing
32:59 kind of kind of focus on
33:02 providers, right? So we b
33:05 and video campaigns for d
33:07 my core business and real
33:09 of my success before I pi
33:11 estate. Um, you know, bou
33:14 in New Jersey. Um, you kn
33:19 my mom was straight down
33:22 So, you know, take care o
33:25 put some money away for t
33:26 just kind of started buyi
33:29 started thinking about re
33:30 thinking about certain in
33:33 make sense for a long ter
33:35 that type of opportunity
33:38 me a chance to make my fi
33:41 and be aggressive. And so
33:43 well for me and I continu
33:45 investments. You know, in
33:47 generational wealth is ve
33:49 So you know, those are th
33:52 to try to do on a daily b
33:54 would do differently with
33:56 million because I mean, I
33:58 the car, you had to spend
34:00 on something within that
34:02 um, I would have bought m
34:06 Um, you know, are I would
34:08 first couple of cars that
34:10 would have been more colle
34:12 flashy ones, right? And I
34:15 alternative asset market
34:17 I've seen cars doubling v
34:20 you know, that's been awes
34:22 in the collection art, an
34:24 asset, you know, that I'm
34:27 trying to trying to build
34:29 But again, just, you know
34:32 private market opportunit
34:34 I think investing continu
34:37 smartest way for folks to
34:40 I think doing more invest
34:43 to get in earlier on deal
34:45 my, what are my goal? You
34:48 bottle popping and dream
34:50 and more and more investi
34:53 were fun times at the clu
34:56 no doubt. Listen, gets yo
34:59 man, Jim Collins with a g
35:01 man. I love that book. On
35:03 books ever. What's the di
35:05 good private equity portf
35:08 Well, I think for us are
35:11 the education piece, righ
35:13 we're focusing on folks t
35:15 and I and everyone's welc
35:17 fund. But the folks that
35:18 not, this is the first ti
35:21 many of them. You know, I
35:22 have to fiscal investors
35:24 different private equity
35:26 majority of our investors
35:28 to introduce to their fir
35:31 fact that we walked them
35:34 we educated them kind of
35:36 on how to invest, you kno
35:39 you know, set up their, t
35:42 documents, you know, how
35:45 this private market play.
35:48 makes a great private equ
35:51 taking the time to educat
35:54 providing the social impa
35:57 best combined financial s
35:59 and returns our social co
36:01 investor retreats once a
36:03 together and network and
36:05 and do other things toget
36:07 they they find opportuni
36:09 support each other, shari
36:11 bringing folks together a
36:14 individuals can connect a
36:16 other. I mean, I just thi
36:18 a great private equity fi
36:20 returns are number one, r
36:22 first fund is on track to
36:25 25% 25% IRR net of fees.
36:28 very, very excited about
36:30 creates our track record,
36:32 us into fund threes and f
36:35 the other deals that we'l
36:37 But I would say our commi
36:39 is really what makes us g
36:42 spending time with our in
36:43 up that fund three or 25
36:46 bunch of people is lined
36:48 We will look to see what
36:49 as many people as we can.
36:51 East shop capital carbon
36:53 the time my brother come
36:55 to talk about in the worl
36:58 because there's so much m
37:00 definitely want to make s
37:02 got to get into the space
37:03 more brothers in private
37:05 man. It's a great opportu
37:07 to learn and to start the
37:09 sure. Absolutely man. And
37:10 like you to Ferrari, Jabr
37:13 NASDAQ, carbon bus, East
37:16 market site. We'll see yo
37:18 Yeah. Mhm. Mhm. Mhm. Mhm.