Follow us on Instagram @actionacademypodcast
Sept. 15, 2022

How to Scale & Sell A Business for A 12x + Return w/ Amit Gaglani

How to Scale & Sell A Business for A 12x + Return w/ Amit Gaglani

Starting a business is cool. What's even cooler is packaging and selling that business for 12x multiple and an 8 figure payday! Today we learn how to do this and also present an investment opportunity at the end of the show for you!

About Amit:

Amit Gaglani PT, OCS is the National Director of Payor Relations at Alliance Physical Therapy Partners, where as a founding father, he helped launch Alliance in 2017. Presently, Alliance has successfully grown offices from Maine to Washington state with aggressive growth plans for acquisitions and new offices throughout the country. With his proven success in business and over 20 years as a physical therapist, Mr. Gaglani negotiates insurance contracts and is instrumental in opening new offices across the country. Through his business experience and acumen, he uses his skills to raise capital for investments.

For Frameworks, Freedom Tips, and Millionaire Financial Breakdowns -
Subscribe to our 5 Minute Weekly Newsletter (Thursday 10 AM EST)
https://brianluebben.com/newsletter


Twitter @theactionpod
IG @brianluebben
https://brianluebben.com

https://accountableequity.com/
agaglani@accountableequity.com

Accredited Investor and Interested in learning more about Gobundance?
Website: https://www.gobundance.com/membership
Book a Call to Learn More: https://calendly.com/brianluebben/gobundance

Transcript
brian:

All right. IM gani. How are you buddy?

amit:

I'm doing great. Brian freaking Lubin international man of mystery. This is a treat for me to be talking to you.

brian:

Man, vice versa. I'm so excited to talk to you today and you and the ghost at Josh McAllen here, this is gonna be fantastic, cuz I've been following what you guys have been doing for quite a while. And I've been following your story for quite a while because I was sitting next to you as you were going through a freaking existential crisis. And I really wanna lead this interview off with that specific moment, because that story that you were telling when we were sitting at this table at a GoBundance event and you are having this really deep heart to heart conversation about a problem that is not an up and down the street kind of problem. And I tell people when they're talking to me and they're asking me questions about go benefits. I. You join the group. As soon as you get to a point in your life and business, where you have questions that are UN Googleable, and you had a question that you cannot Google. I'd like to invite you to start with what the heck was your problem and what

amit:

transpired from that? Yeah, I, yeah, it's funny cuz nobody's gonna be crying for me for these types of problems and that's the thing. You read about people have like you're with your people.

brian:

You're with your people. You're.

amit:

No, that's right. Yeah. So I am a physical therapist and I started a company about 20 years ago and I built the company up to a point where it was very attractive to a lot of people. So I was getting offers sent to me and I had to choose at that time in my life, what I wanted to do. Do I want to keep the the race going or do I wanna sell it? Honestly any good business owner looking at their metrics is looking at what's going on from an outside point of view in what's happening for me, I wanted to 10 X myself. So I took the option of selling it to a private equity company that was coming in that was really hungry. And that wanted to really, expand. So I was one of the, one of the founding people. I was one of the original people from that point, we went national. So we had over a hundred clinics all over the country and I was part owner. And then from there another private equity came along after we built it up even more and they bought me out. So yes, everything that I had worked for and what I was trying to achieve happened. But guess what, that's bittersweet because as a business owner, your passion and your drive is building right. You're building a company and every day you wake up in the morning, you're going on the treadmill, you're working out. You're thinking about building the company working like at such a passionate level. And that's your focus. Once you achieve your goal. What people don't understand is what's. Yeah, you tell yourself, I'm gonna relax. I'm gonna golf. But after two weeks, you're like this vacation's over. I need something to do. and that's what my crisis was. What do I do? What drives me now? What is my passion? Now I could do what I want to do, but what do I wanna do? What is that? Do? Yeah, what is, that is what I had to sit down and figure out and spend time. And. People will tell you don't rush. Don't rush. Take your time. So that is the question that I asked, everybody, I was like, look, I have this situation. I got everything I wanted. now what . Yeah. Yes.

brian:

Have you heard the concepts of navigation versus acceleration?

amit:

No. No,

brian:

It's. It's really good. And it's exactly what you went through and I believe that you're entering another period of acceleration in your life, right? But the quote is from this guy named vision, he wrote a book called the Buddha and the badass. And in this, he talks about navigation versus acceleration and how it's a yin and yang to business and how you need to have periods where you are running full throt. And you're going a hundred miles an hour and you're sprinting like a cheetah. And that was you growing this thing, that was your child, exactly. And growing this thing into a national brand and all these hundreds of locations, that was your sprint. But then once you finish sprinting, then there comes a point where you can't just continue to sprint. That was the acceleration. And now you need to go to a period and season of. So then you relax and you take the time to set the GPS for whatever's next. And then that's when you do the internal work. And that's where the next period of acceleration is born is from the stillness of the

amit:

navigation. Building that company, I was never afraid of working hard, but it got to a point that you say, you know what? I wanna actually start working smart, not just hard. If you can combine working hard with working smart, I think you gotta you got a Ko option there. And I was really charging hard and working hard, getting up early, staying up late, and then I said, okay, the smart move would be to sell the private equity and to really multiply my myself significantly. Now I'm at a point where I want to try to just make smart moves, all the time. Sure. And I don't mind once the move is smart to work hard in it because just by design, that's what I will automatically gravitate toward.

brian:

I love that I wanna dissect the exit for a little bit in a couple different areas before we move on to the rest of the story. First off what multiple, you, you say you sold at a 10 X multiple.

amit:

The company sold at, I think it was above 12 X. Whew. So when you originally get started, you're, it's based off your current EBITDA, which now the current EBITDA is gonna be based off my, I had four clinics. Then you sell that, but then the whole point is you add other clinics on through the country. And then when you build up now your EBITDA is significantly bigger. So your multiple, gets significantly higher. And then there's different things that you can add in there as value ads. Look, we're a national company. We have, we can service this many clients across this many states. We can do X, Y, and Z and things like that. So from that standpoint, another private equity or another buyer. So there's two different buyers. There's strategic, which are existing companies, physical therapy companies that wanna buy you in and fold you. To their org existing map. And then there's private equity, they want to come in and they want to see where you're at and they wanna multiply it significantly. So it really depends on what your options are or what you are looking for. We found a private equity that was eager to get into our space. And so they were fighting for us to take them on. So therefore we were able to command a higher, multiple going that exit. Do you

brian:

pursue, or do you.

amit:

Attract. We had multiple people bidding over us. Okay.

brian:

I love that. So that leads perfectly into my next question. So a lot of people on here are either entrepreneurs. Or they're baby entrepreneurs, myself included. I've got the little diaper on, in my entrepreneurial journey here.

amit:

I noticed

brian:

that. Yeah. Sorry. You could smell it through the camera, but people are, , especially in GoBundance as well, people are making goops of revenue. Their revenue's good, their net. Revenue's good. Their EBITDA starting to look a little bit more attractive. What are some of the levers that you pull to package this and plate this on a dish really well. Yeah, for private equity to be attracted to it, because I remember Cody Sanchez having a seminar where she came to one of our events in Breckenridge and she said, Begin with the end in mind when I start a business, I think about how I'm gonna go ahead and exit it at the beginning. So what is some advice you can give to people to package their business, to be something that's a sellable

amit:

product? Okay. So in my industry, when I knew that I was thinking about selling two years prior to the actual sale, I started entertaining what. Other companies, how they valued my company, like what do they use to value my company? So I started talking to different companies, talked to physical therapy companies that wanted to buy me out. I talked to private equity. Once you get enough of a sample size, you understand they're gonna value on X, Y, and Z metrics. So I basically went to work for the next two years to get those metrics to where it looked super, super attractive to that point. And then I said, okay, now let me entertain talking to. Yeah.

brian:

So is it normally just some tip, some type of flavor of recurring revenue?

amit:

It's multiple things. Are you in a geographic location that is attractive to either private equity or strategics? Like they can't get, enter the area because you're a commanding force in that area. How many referral sources do you have? And then the other thing they want to know is. How integral are you in the business? Now, by that point, I was the acting CEO. I wasn't treating patients all the time. That was more favorable to them because what they don't want is me being the head chef and being the one that's treating all the patients. And then they know it's all on my back as opposed to me being external to it. And I can basically help manage multiple clinics without having to be there, actually treating the patients. So they found. To be attracted. Now depends on who you're trying to go for. A strategic might want you in there actually treating patients all the time, which is why I didn't actually choose that option because I wanted to be a big fish in a small pond, as opposed to being the small fish in the big pond. That was just something that aligned with me because for the past, I don't know, years, I was getting trained to be a CEO of a company. I did not want to use that to tra to treat patients all day long. Not that there's anything wrong with it. It just didn't feel like that was the perfect fit for me. I could always hire a therapist and train them to be the best that they could be, but I felt, I thought I was better at the leadership and the CEO role and getting others to row in the same boat or row in the same direct.

brian:

Yeah. I was listening to an interview with Alex and Layla hormo. So they're taking over the world right now and their specialty is that $3 million company. They partner with them through acquisition.com and then they take them to $30 million. That's their thing. And one of the strategies they use is taking whatever the current CEO is in, replacing them with a team of six to. What they do is they remove 'em and then they say that's the first thing that they think about to increase the valuation because they replace the person with a. Yeah. Yeah. Okay. . amit: Interesting. I got to that point just honestly, because a patient of mine years before I even opened my private practice gave me two books. One of 'em was rich dad, poor dad. And the other one was emo by Michael Gerber. And if you know anything about emo it's about systematizing. So I was all about. Systematizing my practice. So it was not just me. I had a marketing department, I had a billing department. I had different departments that handled different things and some things we outsourced as well. So that just made us look more attractive because we had, when you look at our referral sources, it wasn't just, all my patients are coming from one physician. So that makes it unattractive also because God forbid that one physician moves, then your whole practice collapses, but when you're well diversified and you're constantly trying to add more and diversify more, it makes you more attractive. So you're able to increase your negotiating. From that point too. What do most companies do wrong when they are building? And they have some semblance of success on paper. But they aren't attracting these buyers at the end because, for companies like some people just think about, oh, I'm gonna start this company and I'm just gonna do this. Do the whole entrepreneur thing. And others that are more seasoned are saying, Hey, I'm gonna go create this thing. I'm gonna sell it at seven to 10 X, multiple. I'm gonna have a giant influx of cash to where I can deploy that. And now I can play a game of leverage and play smart games like you're saying. Yeah. Yeah. What do people get wrong with this?

amit:

So I think like you said earlier, they don't think with the end in mind. Okay. So if they're thinking with the end in mind, they're building a business, they're not just building a mom and pop shop business in the sense. They are integral in every single part of the business. They are the marketing person. They are the one behind the desk. They're doing everything right. They do that initially to try to save on cost so they can have a higher, income. But what they're not doing is building systems. They literally don't build systems in it and they don't look at it from a point of view as what does the purchaser want? Like somebody who's looking to buy. How would they view this? Now me personally, I would look at what they're creating and say, that puts a lot of risk. They are so integral for the business. If they, sell and I give them money and they, turn out to be a bad, partner to me, then I'm screwed because they're so integral. So I'm not gonna give them that high, much high of a value. Now, if they're removed from it and they have systems in place that value significantly increases. So I don't think that they look at it from that point of view. I know it can tell you in physical therapy, there's a lot of mom and. Owner operators. So they're owners and their operators in their physical therapy business. And they can only achieve a certain multiple because an outside person is only gonna give them so much money because that's how they built their company. They're so integral that if I'm buying them over, I need them to continue seeing patients because that's what drives the business. They have not moved, not remove themselves from the. Okay,

brian:

that makes a lot of sense. I'm curious as I'm starting to pivot into your transition period here . I'm listening to a lot of Alex hormo. If you guys do not know him, you need to go check him out. The guy knows what he's talking about. So he sold his companies for attune of like 30 to 50 million. And he got that influx of cash, but he said that now that he has the cash and he has the capital sitting in his bank account, but he doesn't have the monthly cash flow. He actually feels poor. He doesn't feel as secure. So I'm curious about your perspective. I,

amit:

a hundred percent agree. It is a weird phenomenon because in your mind, you're used to a steady cash flow coming in. Now you have all this money in the bank, but your mind tells you, okay, I'm not supposed to touch that money. That money is supposed to sit there and I'm supposed to use it later in life. But I. But I'm supposed to use the cash flow, but guess what? There's no cash flow right now until you're actually taking that capital and you're deploying it in other things in, let's say passive income or real estate to get passive income. You don't feel like you want to touch that principle. Cause it's a mind game, right? You don't want that, that principle to decrease. Yes, I completely 100% understand that. Yeah. so

brian:

Let's transition as we'll do this interview in like a chapter one in a chapter two chapter one, we'll talk about this whole transition period of chapter two. We'll talk about what you're doing now and what we're looking towards in the future, but to put a pin into the first chapter, walk us through the identity shift. Between when you exited this is your entire identity, cuz that's what we were talking about at the table is like, Who am I, what do I enjoy doing? So that was months ago. So I'm curious about your journey

amit:

going through that. Yeah the actual event that happened, the sale happened in December of last year, and I knew that it was coming up and happening and I thought, honestly, I'd be prepared for it that I have, all these other hobbies that I would do and do this and do that. But when it came to it afterwards, It plays with your mind because the first two weeks you feel elated, you feel like so proud of yourself, you achieved what you've been trying to achieve. But then after that, you're like, okay what do I fill my days? Before my days were filled with, a certain purpose. So really what started for me is actually asking my other GoBundance members saying, what did you do? Like how did you find purpose? And then people gave me the idea look, write down what you enjoy doing, write down the things that make you like happy to do. And we're not talking, going vacationing. What are the things that drive you that make you passionate that really you enjoy. So I really started writing it down and then also on the other. Write down what you don't like doing at all and that you don't ever want to do again, that you don't, it's just not as enjoyable. So once I got an idea of what I like to do, what I don't like to do, I got a kind of semblance of something that I was like, okay, I'm on the right track, but I don't wanna rush into anything. So I took my time just trying to figure it out, entertaining different conversations with different people. So it was a mindset shift to get me to the point. Knowing, just what I liked to do it. Didn't get me to a point where okay, this is what I'm doing. And I'm jumping in. It was like, okay this is what I enjoy doing that's the biggest takeaway I could say.

brian:

What were some items on the list? The things that you really liked doing and what were some items on the list, the things that you hated.

amit:

Okay. So what I really enjoyed doing was investing in real estate deals. Okay. Because I just found real estate to be just very interesting. And, just from all the history of owning real estate, from what from wealthy families and understanding like, how that, that can be passed on generation by generation. And I always wanted to participate in real estate, even when I owned my physical therapy company, but I would participate by owning syndicated deals, by investing in syndicated deals. Why? Because I had. The mental idea that if I owned a building, I'm gonna get a bunch of people calling me saying, fix my toilet, which did not seem very attractive at the time. So I, I participated in a lot of syndicated deals, but what would happen is because I have a lot of friends that are in healthcare, they started approaching me and they said, oh, we see what you're doing. Can we join? Before I knew it. I had about 67 accredited investors following my investments in what I was doing. So I was able to take all of their funds and my funds and approach syndicators and say, we want I would negotiate with them. I would negotiate higher prep rates, better terms, better positions on the waterfall, just better rates, and being able to do that again. And again, attracted the attention of a bunch of different people. So I really enjoyed doing that. I really enjoyed crafting deals. I really enjoyed putting together deals. That kind of made sense for me to capitalize on those things. So that was one thing that I really enjoyed. I really enjoyed for whatever reason. I just enjoyed finance stuff. I liked finance to me. It was very creative. And the things that I, the puzzle. Yeah. It was a puzzle that if you can figure out the parts and you're putting these deals together it felt good. Cuz I felt like I was helping other people. I was helping these other investors at the same time, helping myself. So it of fit into a lot of different things. Look us, people who are in healthcare, we wanna help people generally, you get into healthcare cause you like helping people and you enjoy that. So it translates over to other things all the time. Things I didn't enjoy, believe it or not. As good and as easy as it was patient treatment, that became so easy for me to help patients. But I felt like I could do more and it's not that I didn't enjoy it. I really didn't enjoy the paperwork. To be honest with you, all the insurance paperwork that you have to do that was just like mind numbing. And I really didn't like to do it. I really didn't look forward to doing paperwork. I like treating patients. I like helping them, but I felt. I could do more with my capabilities. So that was something I said, I don't wanna go down that same road. That's

brian:

very interesting. I like that you got that advice and that just speaks to the Testament of the group, because it's a, it's an area where you can celebrate your wins without feeling like an asshole. And you can also share your losses and share struggles that you can't really share with other people, because that's a, no a difficult, because I know what position you're. Because I was finishing up my month in Greece in July, and I got hit with a pretty nasty bout of depression because I was now accomplishing something that I'd worked on for three years. I've worked on this goal of being here. In doing this, and this is my entire identity. And then all of a sudden I got a wave where somebody called me and I think it was fair cloth and him and I were talking and he was like, yeah, you need to start something about traveling and do something specifically with that. And then I replied, I was like what happens when I'm not traveling anymore? What happens if I'm back home in Atlanta? And then I had this whole existential crisis, cuz then I was like, okay, when I stopped this, like who am. And, that's not something that you can really post on Facebook.

amit:

You know exactly what I'm talking about. Yes. Yeah. Yes. I can't go to my neighbor and say, oh, I sold my company for millions trouble in paradise. Yeah. Millions of dollars. And then that's where the conversation ends right there. They're like, yeah, I feel bad for you, buddy. Nobody feels bad for the guy who walked away with a bunch of money and doesn't know what to do with their time. They're like, you can't have that convers.

brian:

Yeah, Facebook post trouble in paradise. Hey guys, I'm feeling a little down here in Mikonos. Can anybody offer some emotional support? No, they would. They would punch me in the freaking throat, but nah, this is why I enjoy the group so much because we can be able to have these conversations. That's why I like the podcast too, because it's my podcast and I control what I talk about. And so all of you get to listen to us, have existential crisis. It's so much fun. , amit: it's a good learning Those who listen, those who speak everybody, nobody talks about this stuff on shows. Yeah. It's just, they go on and they talk about cash flow. NOI. Talk about flipping houses. Nobody talks about what happens when you build a house flipping company to this massive EBITDA, you exit it, systematize it, and now you have nothing to do anymore, and you have no sense of purpose or belonging. And you're like, okay, who am I? So let's get onto chapter two. That's a great segue. So you sat there, you got still, you made your list of things that you love doing. You made your list of things you hated doing what happens next and then bring us into the world that you're in today.

amit:

Yeah, so I knew that I liked doing things in finance. I knew that I liked doing investments. I knew I liked the real estate realm. And then I just started looking at what I was doing while I was doing that. I kept getting. Phone calls and text messages from my friend, Josh McAllen of accountable equity, which who's also a GoBundance guy who actually brought me into GoBundance So he actually was very inspirational in, in a lot of these things. And he said, look, you're done with your company. You're great at bringing investors in you're great at rallying investors, just to show them the purpose of a good investment. You keep bringing us. Tons of people, tons of money. Why don't you join us? And I said, huh, I gotta consider that. Then he would follow up again and say, why don't you join us? He's look, you're good at what you do. I am growing accountable. Equity is growing into this boutique private equity company where we just have so many opportunities. I can't do this on my own. I need to form a great team. And what better person or what better story is an investor who's been investing for years with us now is gonna be joining us and looking out for the other investors. So that is a great story. That is something that I like to do. Plus I've been bringing money there. I've been putting my money there and I enjoy what you do. I enjoy the community of investors that you're putting together. I enjoy the learn and grow events that you have on these beautiful resort properties. And I just love everything you're doing. I would definitely want to consider this. Here I am. I'm part of it. Now. I open my own company, so I have my own consulting company and the largest client, is accountable equity because I, I'm still an entrepreneur at heart, so I still, love that entrepreneurialship, but I really want to help accountable equity grow. And my title is head of growth. So that's what my job is to help them. Yeah we have some awesome things out there that we're doing. So it's exciting. I love

brian:

this and I want to get into the investment thesis of accountable equity because I know a bit of it I've dipped my toe in the water. But I really wanna dive in the deep end here in a second, but first I want to use , you as a case study a bit of a non-traditional one. So I'll summarize your situation for people that are listening. A lot of people ask about how to get involved with private equity, how to get involved with syndications and from here, AIT story. A good piece of advice that I would give to everyone is a step one, do a mad dash to accreditation, right? So like everyone, I feel like needs to be able to get to that point where you can be an LP in deal. Because you were investing with them as a limited partner, correct. Were giving them money first and that's what began the relationship that's right. So people ask, how do I get on these teams with these GPS and multi-family and private equity, be a limited partner, first dip your toe in that side of it. So you can see behind the curtain from that side, from the consumer and the customer side, and then. You can make that pivot over and build those relationships. Is there anything else you would echo?

amit:

No, that's exactly right. Like when I had my physical therapy company, I was an LP investor, not only with Josh's accountable equity, but with multifamily deals, with self storage deals, with a lot of different deals that I was into, it's just the really like what Josh was doing, personally, and I would invest again and again, just because it was more of a sense of purpose, more of a sense of community, but you hit the nail on the. I had to be an accredited investor to invest in these things. So had I not been, I would've never been open to these opportunities. You can't just come out of the gate and say, I want to be a GP in something you add no value. You can't you have no value right. At that point, I first needed to understand the, how these investments work. And I was an LP investor and I was happy at as an LP investor. But once you get your mind around it, then you can see how you can add value. And then more opportunities just literally come to you. So I was an LP investor in many things, not just accountable. And then as I saw different deal structures, as I saw different deals, I became more and more aware of what's going on. So you hit the nail on the head. When you said that, start off as an LP, get your feet wet, see what it's about and then have meaningful conversations. We're

brian:

getting to a point now on this show, you will be up in the nineties of the number of the episodes. So we have a lot of episodes, but I number the interviews and you're gonna be probably 93 and number 94 for the interviews that go live on this show. And I thought about it and I had a moment of accomplishment and pride. Yeah. Because I realized that now, if I don't do anything at. After about a month, I'm gonna have a hundred hours of live in depth conversations with multi seven to 10 figure entrepreneurs live sitting here in this database, on this podcast that anybody that wants to get accredited, like they can literally listen to a hundred hours.

amit:

you're

brian:

providing free education. It's insane. And I was just like, that is so freaking cool. Cuz all I think about is next one. Next one. Next one. Yeah. And I

amit:

went and started looking back piece of advice. Piece of advice and I should take the same advice enjoy the things and celebrate those victories because I was so hard charging that I would get a victory and I'd be onto, okay, what's next? What's next? Oh, let me buy myself a nice car. I got the car, but what's next? Let me do this. Okay. I got this now. What's next. It's spend a little bit of time just appreciating what you've done and you've done quite a lot. So that's.

brian:

It's been really cool. Yeah. I got that advice from Tim road to really just enjoy the journey. So I'm very process oriented. Yeah. So I'd get my wins from. The actions. So every day I've got like a daily scorecard where I'm like, okay did I do what I was supposed to do today to drive the ball down the field? And if I did, then that's a win. And I celebrate and the

amit:

celebration, we all know that it's the consistency, right? It's a consistency of day in and day out doing the right things. But you always have these goals that you're trying to hit, but the consistency is what actually gets you there. It's like you said, moving that ball forward, which is awesome. Very

brian:

unsexy process. Yeah, sexy outcome, very unsexy process. Everyone wants the eight pack. Nobody talks about the thousands of crunches. Yeah, exactly. The chicken and rice that you eat. So what separates, so out of all these people that you're investing with, all these companies that you're investing with, what separated accountable equities, and talk about the investing thesis here, because I know about the winery, a. I'm not quite sure the business model and the revenue models of a winery. . Maybe, I could do a whole

amit:

separate show on that. Sure. I'll give you the 10,000 foot overview. Accountable equity has multiple properties. Okay. They are drive to destination resorts. Okay. So what does that mean on these properties? We have large venues that we can do. We do six to 13 weddings every weekend. We do outdoor events, outdoor concerts. We do every. Every weekend. That's at our signature property Reno, which is in south Jersey, which is outside of Atlantic city. Okay. That property also has a winery, has a golf course, has a hotel and has multiple restaurants in it. So multiple sources of revenue are coming in. Okay. So these are all levers that we can pull on now to compare those of you who like invest in multifamily, like me, your main source of income is the tenant rents from you. They're locked in for a. Yes, you can do a value add by going in there, redoing the kitchen, adding a washer dryer, but then you're locked in with that fee, for that rest of the year. And that's how you increase your NOI with resorts. There's no such thing as a lock in, we can adjust the prices daily of the actual hotel rooms. We can adjust the prices for memberships, for, golf courses. We can adjust the prices for wine clubs. Like we have flexibility and nimbleness in the business, which allows itself to generate tremendous amounts of cash. Okay. So the opportunity for our LP investors, when they came in these equity class investments was to. Money to get a certain pre rate, you get a refinance and then you get your money back. But here's the really interesting thing Josh put together that something that I have not seen in any of the investments, and I've done a lot of investing before he gives you perpetual ownership. Okay. Now do yeah infinite returns. So you'd be like what does that. Okay. You invested, I don't know, name a number let's use an easy number, like a hundred thousand dollars. You get a certain pre rate for that. Okay. Everybody's familiar with pre rates. You're getting your pre rates until you refinance. When you get your refinance, you get your money out, you get your pre rates all paid up. And that ti that usually you're out of the deal when it comes to other deals, that you've gotten what you've been. And, you're out of the deal in this situation, you've gotten all your money back. You have no skin in the game, but he keeps you as an owner for the rest of your life. So you keep getting distributions at a certain percentage ownership level based on how much money you've put in. And that never stops. So for the rest of your life, you're gonna keep getting distributions. And you're like, wait a second. But I got no money in it. That's the exact point. That's what I said. I'm telling you, I've never seen anything like this before that he's been doing. And why does he do. The one, one reason why, because we are putting together a sense of community for investors. We want to create that sense of community. Cuz unlike multi-families these type of resorts are actually emotional. People say don't emotionally invest. Guess what? These are very emotional investments. We got weddings going on. We have out outdoor concerts. We have people celebrating. We want people to feel a sense of community. So when they come to these resorts, you know what they. Come to my golf course, come to my resort. We want people to say that we want people to feel that. And the people at the resorts, when they open the door for you, they don't know who you are. They're gonna say welcome home. That's how you feel when you go there. And honestly, anybody that goes there will say, I get why people invest here. I get it. This is such an emotional feeling like you go there and you're like, wow. Like in the wintertime, they have these outdoor events that are a French marketplace ice skating rink, outdoor concerts, fire pits, people drinking, having a great time. You're like, you want to be a part of these type of things. So that's the. The equity side of the investments that people, it really attracts people to. And that's in Reno, in outside of Florida, outside of New Jersey or outside of in south Jersey, outside of Atlantic city, we have another one Kent Manor, which is in Maryland. And we just bought another one, which is 20 mile, 20 minutes away from Reno, which is LBI national, which is another golf course that we took. And they have wedding venues there that they can. These are very interesting things

brian:

we need to do a whole, I want to do a whole separate episode about. The economics of resorts

amit:

and golf courses. Oh, absolutely. I fell in love with it. That's why I keep bringing other investors and myself, and I keep investing every new property, cuz this is, these are things that I haven't seen before, to be honest with you. And the opportunity that Josh gave me was even more outstanding. He said, IMIT, you've invested in a lot of deals. You take a look at a lot of different things. I want you to create your own fund. And I said my own fund. He's From an investor's standpoint, put all the things that you would want to see in a fund. And we wanna launch it for other investors, do reverse engineer the math, and let's figure out how to make it work. So I said, okay, let me survey a bunch of different investors to find out if what I want is what they want too. And we were able to put together something and we just launched it two weeks ago and it's called the CDF collateralized debt. But it puts them like they're a bank. Okay. So they get the opportunity to get high yield anywhere from six to 10% monthly distribution, which is like mailbox money. Literally you can use the money to pay bills and they have liquidity. That's the unique thing think about it in every investment that you do in multifamily or anything else. You don't have liquidity, you can't say, okay I want to take out this much money cuz I need it. No, you're locked in with this one. You're not locked in. You can actually pull money out and you're still getting high. So it was really, the Perfecta, like everything that we wanted in it, and we got to put together. So I'm super happy about it.

brian:

Is there a chunk? So I'm assuming there's a chunk of equity that's carved out of the company to distribute to investors. Is there like a cap to that? Is there gonna be a point where you have too many investors the way you can't keep doing that prep option of the

amit:

owner? No. We have so many deals that we constantly are in and opportunities that we have and on the same properties, like we have problems on the property, but the problem is a good problem. Like at our Reno property, we don't have enough hotel space. We can always use more money to build more hotel space. We are so booked with venues for the next two years. We don't have any more space to put venues, but guess what? We're booked outta hotels. We're sending people to other hotels because we can. Take the capacity. So we can always use additional funds and some of these funds are already closed out, like Rene, like that was part of our capital ch one and two it's closed out. Like we don't need anymore funds. We are generating enough money that we can actually, fulfill a lot of these things. So are you guys

brian:

closed? So you guys closed out across the entire portfolio right now? No,

amit:

our, the one that we have left is ch four, which is our LBI national cause we just opened it a little while ago. Okay. But that one is going to be closing out soon. I would think very soon. So yeah, depending on when the listeners listen to this, if they have an interest, they should get in touch with us literally right away. That is the perpetual equity model too. Then we have a couple other things. That are opening, including the CDF. So just exciting stuff going on.

brian:

I'm sick to my stomach, man, sick to my stomach and how much freaking money I make everybody. It's ridiculous.

amit:

it's ridiculous. Yeah. You're a horrible guy,

brian:

Brian. It's you're a horrible, it's ridiculous. I am upset. I am nauseous, man, because I've I come on here. I come on here and I present these freaking opportunities to these people. Like what the hell? This is so cool. This is

amit:

so interesting. It's really interesting. Cuz people are familiar with other investments, but they're not familiar with wedding venues that have a golf course that have, like wineries that have all these different levers that we're. Pull and we're producing tremendous amounts of cash and our investors are happy and we're creating an investor community that really, really likes what we're doing and putting together. So it's very good for me to be super proud to of be a part of that. Because at the end of the day, I'm an investor there too. All right. So

brian:

I'm gonna have to give you guys the GoBundance special once again, just like I did with Adam, Jason, I've gotta do a repeat. First I presented a Colombian coffee company. And now if that's a little too south of the border for you guys, that's a little too tropical , then we can just go Northeastern United States. And if you don't feel like if you don't feel like investing in coffee, we can invest in golf. So where can people reach out to you to get information, to do their own due diligence? Because I need to say I'm not a financial advisor. Nothing I say is professional advice invest at your own risk. Nothing is guaranteed. And all of the information that you can get financially is gonna be through T and dedicated sources. Bam. Disclaimer, I work with lawyers. Go

amit:

ahead. Nice. You must memorize that one. That was good. They can find us@accountableequity.com, which I'm sure you'll put in the show notes so they can look us up there. They can do better. , they'll do their independent research there. They can go on our website. They can see the offerings and things like that. They can reach me, which would be a good idea because I can help dissect some of the things that might be right for them, as opposed to what may not be right. Because we. A couple different offerings. One of 'em is the equity class, which is for perpetual income. Then we have something called the EIF, which is specifically for tax mitigation, for those people who are trying to, decrease their tax position. And then we have the CDF, which is a bank account, but high yield. And it allows them to be the bank in a very good secured position. They can reach me at a gag. Accountable equity.com. I'm sure he'll put the info in the show notes so you can spell it correctly and yes. Connect with me. And I can talk to you and fill you guys in, but yeah, that's, it's awesome stuff going on. All right guys,

brian:

plain and simple. Listen to the action academy podcast. Make lots of money. Plain and simple. Here we go. I love it, man. I appreciate this. This has been a wealth of information from multiple angles. Thank you for bringing me in your world and bringing us in your world about the exit and about the different trials and turmoil that goes through that. And then we went into that. I'll tell you what let's do. Let's go ahead. If it's okay with you. I'm very interested in the economics of. I'm very interested about how golf courses run. So let's set up another time, do a little mini interview, like 15, 20 minutes, and talk about just the economics of golf. And like how, like you can run a golf course. Cause that's so

amit:

interesting. We should probably go into the golf as well as the winery and the resorts in general, the overview, because it's, it is very phenomenal. All the different levelers that go in on people have no idea, they just know how to entertain themselves and enjoy themselves. But it's very interesting behind the scenes stuff.

brian:

You guys heard it here first. We won't do it back to back. I'm going to put a little bit of breathing room between the two, you guys heard it here first. My friend, I appreciate you coming on. Hopefully I lived up to all your expectations internationally.

amit:

Brian freaking Lubin international man of mystery. I loved it. Thank you for the opportunity to share my story.

brian:

Appreciate it. And with that, that has been Brian and omit with the action academy podcast signing off.