Robert Leonard  03:25

So how is that different than other crowdfunding platforms that are out there today for commercial real estate?

Drew Sterrett  03:32

Other crowdfunding platforms allow for accredited investors to make private placement investments into long term locked up capital investments. So you can go into a development project, you can do debt financing, but it does not allow for a liquid and open market. And in this case, this allows everyone to have full transparency and also access these securities through any brokerage account.

Drew Sterrett  03:55

So it’s not like you have to go to an individual crowdfunding site for an account and have all your money placed there. We allow every single wire house and brokerage firm to also access the platform. So in the future Robin Hood to your Morgan Stanley’s will have access to these securities through whatever brokerage account they want, or they can create one  with Lex.

Robert Leonard  04:15

And can they be invested in through a retirement account? Or does it have to be an individual brokerage account?

Drew Sterrett  04:20

No, it can be through an IRA account, it can be through a for 401k. It’s all ERISA compliance. So it can be self directed.

Robert Leonard  04:29

But it doesn’t have to be a specific self directed IRA account, like the I want to say, quote, unquote, special ones that you need to usually invest in real estate.

Drew Sterrett  04:37

No, not at all.

Robert Leonard  04:39

That’s really, really interesting. You mentioned commercial real estate, and there tends to be various definitions of what a commercial property is. Some say that anything over four units is a commercial property, because that’s how banks will generally look at them. And then others consider properties leased to businesses, commercial property, like strip malls, or maybe office space. How do you define commercial real estate?

Drew Sterrett  05:01

That’s a really good question. I would say I would say my threshold, especially in multifamily would be above four units. And it really depends more on the asset size, what the actual business plan and the operations are in the individual asset. My thoughts on what a commercial asset had been changed over time since I’ve also seen a variety of interesting commercial buildings in you know operations that I never expected to.

Drew Sterrett  05:24

One of them actually was a, it was a studio for filming in Los Angeles, where not only did you have a mixed use office building and parking lot, but then you also had border stages that were recording Netflix shows. So it’s something I had never come across, especially in my underwriting and modeling and it sort of taught me to expand my horizons on what you think of traditional commercial real estate.

Robert Leonard  05:44

Yeah, I think it encompasses a lot of different things where you think of residential, that’s pretty well defined, I think that fits into a bucket pretty well. But when it comes to commercial, it’s pretty wide open.

Drew Sterrett  05:46

It can be almost anything and everything.

Robert Leonard  05:49

So when we’re talking about investing in real estate, the way that we were just talking about using Lex, you’re able to buy almost like shares in the building and trade them commission free like you would a stock.

Drew Sterrett  06:09

Correct. And it’s exactly like buying a share of Apple using your Robin Hood account. Does it have a ticker symbol? It does. So it is not only as a ticker symbol, it’s also registered with the DTCC and excusive. That’s what allows you to pull it up on a brokerage account.

Robert Leonard  06:25

And is that active now if people listening to the show want to be able to go look for it? Or is that something that’s coming in the future?

Drew Sterrett  06:30

The app goes live in about two weeks. About to be right now.

Robert Leonard  06:34

So by the time this episode airs, it should be available for you guys to go check it out.

Drew Sterrett  06:39

Correct. So we shouldn’t have our first three offerings available to the public.

Robert Leonard  06:43

So is there an exchange like there is for the market? Where like, how are investors? How is this happening? How is the exchange happening?

Drew Sterrett  06:52

So the trading venue is structured as an alternative trading system, and as an ATS, which is one level below a national stock exchange, it allows every single wire passing broker dealer to become a participating member. It’s the same way that the New York Stock Exchange and NASDAQ does with every single high frequency trading firm with your Wells Fargo with your JP Morgan City Bank. So it’s the exact same structure just with one, one level below a national stock exchange still under the auspices of FINRA and the SCC.

Robert Leonard  07:18

So what are some of the benefits of this type of investing in real estate compared to just traditional whether it be investing directly in a syndication or if it’s investing in REITs, or even just other crowdfunding platforms?

Drew Sterrett  07:33

Well, I’ll tackle I mean, you just gave me a wide array. Compared to private placement, the minimum investment size is actually the purchase price of a single share, which is $100. So it makes it much more attainable to the everyday retail investor putting myself since I don’t have the ability to put a quarter million here, quarter million there. And so it allows everyone to create a curated portfolio on a deal by deal basis, while also having full control of what they’re investing in.

Drew Sterrett  07:59

Since when you’re investing in a REIT you’re really investing in a management company, you don’t have any discretion on the allocation of their own portfolios, and the exposure to the public markets. And also you don’t have the ability to readjust that portfolio. Let’s say if you invested in a crowdfunding platform, your capital was locked up for a three to five to seven years. So right now we’re going to COVID-19.

Drew Sterrett  08:21

And now we’re feeling a little bit more of an impact in the retail and even in the student housing space, which is something we would have never expected where everyone is going home from college. It’s really hard when you don’t have access to that capital, and you sort of have to ride it out. And you see the falling knife and you can’t catch it. It just really empowers investors to a know exactly what they’re investing in, take control, and then also make your own choices.

Robert Leonard  08:45

What are some of the fees associated with this? Is it is it like an ETF where you have an expense ratio? Or what does that look like?

Drew Sterrett  08:53

So there is no expense ratio, we actually, we make sure to be very careful, since we’re not fiduciaries, we’re not asset managers, we’re not investment advisors. So we’ll let the likes of Blackrock come in to create those ETFs for retail investors and institutional investors in the future. And so there is no fee to create an account and the only fees that are actually paid by the investors are just on a portion of it.

Drew Sterrett  09:17

Just a few bits are taken out each quarter of the cash flowing distribution since these are all stabilized assets. No money isn’t being paid out. For example, if it was this quarter in the public markets where you have tended to aren’t paying, there is no expense paid by investors at all.

Robert Leonard  09:32

So as the investor do you get all the benefits of owning direct real estate tax benefits, you know, everything that comes along with owning an actual piece of real estate?

Drew Sterrett  09:41

So what we did was create a new structure to allow for all of those benefits of direct real estate ownership pass through to the end investor. And so the tax advantages that you’re talking about depreciation they do pass through so you actually are side by side with the GP or the sponsor of the property and creating wealth the same way they are.

Robert Leonard  10:00

And so when you’re going to file your taxes, you would just take your percent ownership of the depreciation and be able to write that off on your taxes. I’ll be it probably very small if you only own a share, too, but it still is doable it sounds like?

Drew Sterrett  10:12

Correct. And there are other tax advantages as well giving the structuring of the product. But yes, depreciation is a nice that I look forward to climbing soon.

Robert Leonard  10:21

So how does the pricing of the shares work on this type of model? Is it going to be very similar to the stock market? I mean, that the stocks can increase in value or decrease in value for various different reasons a company can do well, earnings can increase, it could be speculation, and it could just go up because people expect the future to be better. I mean, there’s a lot of different driving forces that can drive the stock market up, is it the same? Do you think it’s gonna play out the same with these types of investments?

Drew Sterrett  10:48

So all of those same driving courses also affect the perceived value of the shares on the open market as well, then sort of like the whole idea of, I wish I could have bought Brooklyn 15 years ago, it’s my $100,000 property is now a $20 million building. So the same way that you see appreciation and new tenants coming in, and new developments coming around and Whole Foods going in down the block.

Drew Sterrett  11:10

It’s all proceeding created value, where you have lease ups, you have tenant improvements, some more value is created and all of that will affect the underlying stock price to represent fair market value. It’s econ 101, supply and demand.

Robert Leonard  11:24

So does every property or every deal have its own Tiger?

Drew Sterrett  11:29

Yes. Each one has its own Tiger. None of them are cross collateralized. And so it’s full independence with each property, each property is its own filing.

Drew Sterrett  11:39

And it’s not debt at all. It’s straight equity?

Drew Sterrett  11:42

Pro rata equity. So no more two and 20 models as well. So you’re actually able to decrease some of the fees that you would otherwise be paying and take out the promote structure in place. So you are side by side, if you have bracketing success, you get to participate in that as well.

Robert Leonard  11:58

How can investor vet this deal as in the asset itself, but also the management team or their annual reports? What are the required filings?

Drew Sterrett  12:07

Actually, that’s a really great question. And just make you laugh. And they make you feel a little bit better. We also do background checks on every single issuer that comes through the platform as well. So there are no criminal backgrounds or anything that can be illicit or unbecoming. But on a go for the initial filing is filed with the SCC and then there’s also go forward reporting as well on a semi annual basis, and also audited financials by a third party independent firm on GAAP accounting basis.

Drew Sterrett  12:36

So you actually have full transparency into the operations of the assets, do you actually have a lot more understanding of what you’re investing in, then even if you were investing in a private placement, where you can sort of question some of the numbers and also set up to go knock on doors to get reports on a go forward basis. But then even then public REITs, where you understand what assets they’re holding, but it’s not like you have a very good understanding of the underlying numbers, what type of loan is on each asset.

Drew Sterrett  13:01

It’s effectively going in being able to do a real estate private equity deal, but from your own brokerage account, where you can dive as deep and as wide as you want, and get into the nitty gritty, or you can understand the basic fundamentals, and then say, I fundamentally believe in industrial and Atlanta and multifamily, and then choose specific assets to what your investment thesis is, and what your risk profile is.

Robert Leonard  13:26

How does somebody who’s the GP who has a deal, and they want to get something like this listed? How do they go about that?

Drew Sterrett  13:32

So few ways. Usually, it comes through email, phone call, or we actually have a real estate owners portal where they can go to our website, and literally put in a property application where they fill in the high level information on the specific assets that they’re thinking about doing a deal on, and we do our initial vetting. And then after, it feels seems interesting and you think the fundamentals of what the real estate owner is asking for make sense.

Drew Sterrett  13:56

The whole idea is you really want to make sure you’re on the same page and some people like to think that $100 million asset is really worth 150 million. So that makes it a little harder to do business. But when people are rational and have a really good understanding of what the fair market value is specific assets, were then able to do full due diligence and underwriting to the standards and actually passed the standards of commercial real estate debt underwriting for CMBS loans for life insurance companies taking that forward to also do underwriting for a public offering in to the public markets.

Drew Sterrett  14:27

Put all that together, and you have a form one A which is the offering circular that’s submitted to the SCC, then once it’s qualified by the SCC, you have really tradable shares and the real estate owner has cash in their pocket.

Robert Leonard  14:40

So is the owner not able to charge essentially whatever they want and then go on a road show like you would for an IPO or is it how does that process work?

Drew Sterrett  14:49

There’s three parts to it. One, is traditional underwriting seeing and also traditional real estate investing, seeing what market comps are seeing where the asset is appraised at, what the property conditional report comes back with making sure that phase one and phase two environmental are in shape and what the underlying financials are for the asset. So that’s sort of part one.

Drew Sterrett  15:09

Part two is also sort of the look forward. It’s like, where is this asset positioned? What is the credit rating of all the tenants in place are these long term leases is the data about to expire? All of which affect the underlying value of the asset. So you have that part. Then you also have the public markets. So we actually have the ability to do a roadshow where it’s a period called testing the waters, or we can take indications of interest and make sure that the assets are priced correctly.

Drew Sterrett  15:35

And given that those line up with the appraisal in the market comps in what the real estate owner wants, it allows for actually true market pricing did to actually have a lot more players coming to the table with a lot more information and transparency and data integrity, it should allow for better price real estate, to be favor out of favor for the real estate owner.

Robert Leonard  15:57

Sure. Yeah. That makes sense. So you mentioned it’s for stabilized assets. So can somebody not use this to acquire a property?

Drew Sterrett  16:04

So right now, we do not do acquisition or development financing and this is just for assets that they already own.

Robert Leonard  16:11

So would it be fair to relate it to a cash out refinance?

Drew Sterrett  16:17

Yes, exactly. But in equity. You sort of get to refinance twice now without having to worry about over leveraging, and what happens if you have events like COVID right now, or just anything that we can’t predict, which happens more times than not in life.

Robert Leonard  16:34

Yeah, you don’t have that payment. I mean, it’s equity that you’re giving up. So you don’t have a debt payment to I mean, you’re giving up ownership, obviously, that’s what giving away equity is, but you don’t have a debt payment to service every month, or quarter, or whatever your payment structure is. So can you get to a place where you can do acquisitions? Is that where you guys are going? Or is it always going to be a stabilized asset?

Drew Sterrett  16:52

We can. It may be a different product, and there may be a different investor criteria that’s necessary. The other thing that comes into play is for closings. You usually have a hard and fast deadline where when you do a public offering, there are third parties who get involved, where we don’t have any control over them, including the SCC. And if you have a hard and fast closing date of 60 days, and the SCC comes back and wants to ask a question, or who knows.

Drew Sterrett  17:21

You have something crazy happen in the world. It makes it a little bit harder to have a hard and fast deadline for those definitive dates. And by having stabilized assets that doesn’t come into play.

Robert Leonard  17:33

So how are you guys able to offer these types of securities to non accredited investors?

Drew Sterrett  17:38

So we’re able to offer these securities to non accredited investors via Reggae Tier Two, which is known as the mini IPO. And it’s been around since 2015 where it got revamped and expanded, actually, indirectly. Right now, the SCC is looking to potentially do another overhaul to actually allow for more money to be raised by each one of these offerings to expand some of the definitions and qualifications for the regulation.

Drew Sterrett  18:07

But because there is an initial offering, circular that’s filed, and then all ongoing reporting, and it’s pretty darn close to a traditional offering circular that the public markets are used to, it’s over the counter security that a lot that is accessible to everyone.

Robert Leonard  18:24

So we talked about how a lot of the benefits of owning physical real estate is actually passed through to the investor. What does that legal structure look like? Are you owner of an LLC? Is it a an LP? What does that look like?

Drew Sterrett  18:35

Actually, it’s an LLC that’s qualified as a PTP. And a PCB is a publicly traded partnership. So it’s a Delaware LLC, that’s a qualified PTP that allows for also the qualified income coming through the PTP to even get your a few more tax benefits associated with PTPs and also REITs, where it’s qualified income to allow for the tax benefits of the distributions that are being paid out as well.

Robert Leonard  18:59

So what are you expecting an investor to earn for returns? I’m sure it’s gonna vary wildly between person to person deal, to deal. I’m sure there’s going to be a lot of different variables that can go into that. But just in general, what are you expecting for returns?

Drew Sterrett  19:13

So, returns really do vary across the spectrum. There could be anywhere from like the mid single digits up to the mid teens, just given what the risk profile is, since we deal with effectively every single asset class in the commercial real estate space across the entire United States geograph. So we’re not just New York centric or West Coast centric, are really hitting the primary and secondary markets right now.

Drew Sterrett  19:37

Luckily, we didn’t the assets that we’re working with going through the pipeline at this very time, from a risk profile, less affected than most assets going through one of them is an infrastructure project. One of them is a parking garage. Another one is a mixed use building here in New York with very good credit rated tenants. So it really varies depending on who, what, where, when, why.

Robert Leonard  20:01

Is most of the return driven by dividends or cash flow, you know, distribution to the owner to you as an equity owner? Or is it through appreciation? Do you expect the shares that are trading to double in price like you could see in a stock? Or is it mostly coming from cash flow?

Drew Sterrett  20:16

It’s more actually coming from cash flow right now, since you’re actually purchasing effectively. Something that’s very close to a high yield bond that can also appreciate also has a tangible asset or asset behind it. But in this case, you have to remember bracing in Manhattan is still going to be less flexible than it will be if you were looking to purchase something in St. Louis, Missouri.

Drew Sterrett  20:36

Just two very different markets where the market cap rates in New York are usually lower than in St. Louis. So even if you had the two exact same assets, New York would price probably be priced slightly lower, just because you have less volatility and perceived market value on the appreciation, depreciation still.

Robert Leonard  20:53

So is the cash flow distribution amounts up to the GPs, because I know with a REIT, I believe they’re required 90% to distribute of their profits, or somewhere along those lines. How does that work out with the GPs? Is it up to their discretion?

Drew Sterrett  21:10

Two parts to that. One is, so the REITs can retain earnings, and it’s for the distributions that are being paid out. 90% have to be coming through. Like, they can also spend it on kind of improvement and everything to actually operate the REIT. What we do, and how we structured it is, if the real estate owner is going to take a distribution, it has to be paid out pro rata, so it still has to be distributed.

Drew Sterrett  21:31

However, if the GP is looking to retain, some of the capital to do tenant improvements and like TILC, or just to increase how much money is in the capex account, just in case there is a large capital expenditure that’s unexpected, they do have the discretion to retain a part of the distributions for that. But if a distribution is going to be paid out as to be, can’t just go to them and not partners of the public float, it has to be side by side.

Robert Leonard  21:59

So I guess one of my big lingering questions is, why is nobody done this already?

Drew Sterrett  22:04

It’s really hard. It’s really complicated. The structure in the beginning. It’s not complicated from a fundamentals perspective where you’re purchasing security and taking the building public. But there are a lot of systems that have to come into place. And then also, regulation has made it easier, technology has made it a lot easier. And creating a brand new securities market is more difficult than one might think. If I had the ability to go back to myself when I was starting this, I probably would have kicked myself once and said, “It’s going to be harder than you think. You’re ready for a ride.”

Drew Sterrett  22:33

And after that, I would have loved my earlier self and have more fun. But it’s a complicated space. You are dealing with a whole bunch of entities. And at the same time you’re also dealing with commercial real estate owners and financial institutions to the oldest and slowest moving beats in the world. So that’s also one of the reasons why this hasn’t happened is I would say actually, commercial real estate owners are heads and shoulders more difficult than financial institutions. And that’s saying something.

Drew Sterrett  22:59

So I think all of that coming together has made it where people have taken the path of least resistance. And they have fundamentally good business models. You have private equity firms. You have crowdfunding platforms. You have asset managers, fiduciaries, and both public and private REITs and LP investing both in the debt and equity space. It’s just a lot harder to come and create a brand new securities market around it. So they took down some of the barriers, but we just decided to push it even further.

Drew Sterrett  23:28

Why is this type of real estate investing the future over say traditional active real estate investing?

Drew Sterrett  23:34

Most institutional deals are owned only by a handful of firms. And then you sort of have another tier below that where they own probably been like 25%. This is really the future, in our opinion, because it provides long term and definite capital to institutional real estate owners as well, where you have to remember. The problem with a lot of the private equity funds right now is they have to recycle their capital, and they’re always having to redeploy, sell off the assets.

Drew Sterrett  24:04

But that’s really unfortunate if you have to do that in a down market or if you need to reposition the asset. And you think there’s a lot more long term growth to come, even though your projected horizon was only on the performance was seven to 10 years. And you really see that there’s 25 years of long term value to be created. You can’t hold on to the asset because you have to recycle the capital, make distributions back to your investors, and then go into your next deal.

Drew Sterrett  24:28

This now allows them to return the capital. Actually, in many cases, they can increase their returns see created value in the first few years. Now you’re actually paying it back years before you, otherwise would have been also retaining acid and you go forward basis just in a stabilized core acid functionality instead of a value at acquisition or development.

Drew Sterrett  24:45

So there it really is adding another tool to their tool belt, and because it allows them to create more value for their investors and themselves, we see this working for everyone across the spectrum, including both public and private REITs.

Robert Leonard  24:57

So how does it work if the GP wants to Sell? Or if the GP wants out of the deal? So maybe the GP doesn’t necessarily want to sell the asset, but they just want to be out of the deal. They don’t want to be involved in that asset anymore. How did they get out of it? And then as one part, and then how do they sell the asset? Did they have to get the approval of the majority of the shareholders or how does that work?

Drew Sterrett  25:17

So if the GP wants to exit the asset, they have two ways to do it. One is to bring in a new managing member, who also has an equity stake in the asset itself. So we’ve made sure that there’s alignment with the GP and LP. So one is by bringing in a new managing member who also owns equity in the asset, purchases equity. And then the other one is by selling it to an independent third party. The real estate owner does not have to go to the LP investor base, as long as the sale is to an independent third party.

Drew Sterrett  25:48

So you can’t sell to cousin Jimmy. It’s an arm’s length. You use a national brokerage firm marketed for 60 days, and no fraud, misconduct, no self dealing comes to play. They have the ability to do what’s best for themselves in the investors. The whole idea is to align both real estate owner and the investor. So it’s not like they’re butting heads together, they’re actually working side by side. That’s been the whole idea is create value for the real estate owner. Create value for the investor. Just align all the interests.

Drew Sterrett  26:16

So it’s in everyone’s best interest to do the right thing, and not do anything other than that. So they have the ability to do what’s best and create value where they can. And then if they see that value has been created, and they can find the best opportunity to sell, they’re gonna sell, and then the investors get to benefit in that uptick as well.

Robert Leonard  26:35

So if they decide to sell the asset, obviously, the shares or ticker symbol, if you will, will just go away?

Drew Sterrett  26:42

Correct, it’ll be closed down. Each investor will receive their pro rata distribution of the equity that they own in the asset. That’s the same thing as when Monsanto was purchased by Bayer, or any public companies purchased by another company, Amazon purchasing Whole Foods, same situation.

Robert Leonard  27:00

Yeah, very similar to that. They’re probably these assets are probably just gonna be more temporary, as you probably won’t see them on the market trading as public securities for as long, I’m assuming as most public companies.

Drew Sterrett  27:11

Depending on who the sponsor is, yes, there are some sponsors who want to own and definitely. There’s some sponsors who want to own for eight years, and then pay the asset. But also, that’s in the business plan in the prospectus, when the offerings coming out to the market. So investors understand what the mentality is of the sponsor themselves. And of course, it’s subject to change, but at least you have an idea, and you’ll be updated in the future, if that ever does change.

Robert Leonard  27:37

Are there quarterly or semi annually conference calls to connect with the GP?

Drew Sterrett  27:43

Yes, yes, sir.

Robert Leonard  27:45

And so does that work very similar to how a traditional conference call would work or earnings report would work?

Drew Sterrett  27:51

Yes. And it’s up to the discretion of the real estate owner. So if the real estate owner doesn’t want to do it, they don’t have to. But for a lot of the real estate owners, they actually do. They find it interesting to see sort of what the public market thinks. And it’s a feel good experience, to see you have a lot of people who actually care about what you’re doing to some respects. And if you want to stay behind the scenes, you can. However, if you want to participate, you have every access and meaning to.

Robert Leonard  28:16

Yeah, it’s pretty interesting. It’s almost like being the CEO of a publicly traded company, without having to go through all of that stuff that comes along with that part of it and just actually being involved in real estate.

Drew Sterrett  28:27

It isn’t. And you don’t have to worry about activist investors or anything like that. So the main selling point to real estate owners other than achieving fair market value, or selling out the LP position. It is a limited partnership position. This isn’t you can’t have like minority stake holder activist knocking at your door. That’s not how this works. It was really the creation of something that works for real estate owners, and something that works for investors.

Robert Leonard  28:51

Yeah, that’s actually a good point. So if somebody in this is mostly theoretical, it probably won’t happen. But if somebody did come up and buy all of the LP shares that were outstanding, they still don’t have enough ownership to do anything with that, right? The GP will have decision rights?

Drew Sterrett  29:06

Correct. So you’re correct in the first place. And we also restrict the total amount that any individual can purchase because you also have to remember, these are stabilized assets and for the most part, they already have debt on them. So you have loan covenants and transfer restrictions, where after you’ve reached, let’s say, it’s a 10% threshold, you have to be named on the loan documentation. So we make sure that those thresholds are set preemptively to reflect what is already in corporate structuring and lender.

Robert Leonard  29:34

So the owner of the asset doesn’t have to own the asset free and clear? They can have some debt still on it and still do this public offering?

Drew Sterrett  29:42

Oh, absolutely. Now this was created and structured to be used, especially with that for CMBS. Up to 49% of equity can be sold without triggering the loan transfer restrictions. This was very much a product to as you sort of said before, it’s like you get to refinance twice.

Robert Leonard  29:58

Yeah, that’s interesting. So I’m curious how the process was for you guys to get banks to understand what you guys are doing, but also be okay with it. I’ve worked at a bank for three years before that I just I’ve worked with them as a real estate investor. And I know how, and they’re very strict on their rules and their lending guidelines and things of that nature some. I’m kind of surprised to hear that they would allow this type of structure.

Drew Sterrett  30:22

We were surprised as well, to be completely frank because the banks, it’s the master servicers and the special servicers and they’re the ones who at the end of the day, once the bank sells it off there, it’s whose hands the loans fit. And they were actually big supporters of the product because one of the things they hadn’t taken into account is once a loan closes, other than a special servicer or any type of servicer, knowing that the cash flows are coming in. And like payments being made on the loan, the actual fundamentals of the property on a sort of specific spaces are usually 12 to 18 months stale.

Drew Sterrett  30:59

So now they actually have real time information and data on each of their individual holdings, their bond holdings. And so they can actually tell what the health of their portfolio is, in real time, compared to being 12 months late for the game. And so they were like, we’d rather have this for all of our assets. And then we can know what paper we’re actually holding. Is this a, A plus? Or is this now a C?

Robert Leonard  31:22

Yeah, that’s really interesting. And like you said, I mean, you guys are setting restrictions as to how much the LPs can own the investors. I mean, in theory, it’s not any different than if you went out braise the money private. Or if you went and use the public markets, I mean, you’re still fitting into those same guidelines.

Drew Sterrett  31:38

Exactly. 100%.

Robert Leonard  31:40

Yeah, really interesting. This whole, this whole concept, the whole business model, the whole service or product that you guys are offering is really interesting. I’m excited to dive into a little bit more in a couple weeks, when it comes out and learn more about it myself. I think it’s an interesting mix or intersection of stock investing and real estate, in a sense, you know, and so I find it very interesting. And I’m looking forward to diving into it.

Robert Leonard  32:03

For those that are interested in learning more about you, connecting with you, and also what you guys are doing with Lex, where’s the best place for them to go?

Drew Sterrett  32:11

So the best place to go is to go to www.lex-markets.com and if they want to reach me directly, feel free to reach out to me on LinkedIn or email me at drew@lex-markets.com. And try and have a clean inbox by the end of every single day.

Robert Leonard  32:28

I’ll be sure to put a link to those two resources in the show notes so everyone listening today can go take advantage of those. I’ll also put some resources that are similar, more related to the things that we talked about in today’s show so you guys can go read up on those topics more if you’re interested in in diving a little deeper.

Robert Leonard  32:44

Drew, thanks so much for your time. I really enjoyed our conversation.

Drew Sterrett  32:48

I get as well Robert, thank you so much for having me.

Robert Leonard  32:50

Alright guys, that’s all I had for this week’s episode of Real Estate Investing. I’ll see you again next week.

Outro  32:57

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