The amount of money you get.

Investing in professional development is not a cost.

And this is the important thing.

Well their intention was to take these home equity loans and put that money to work, invest it in some way.

We are now faced with these questions to answer.

EBlT in this case would be the operating profit plus this investment income.

I want investment.

Malibu Equity and Investments. Roger Van Zant.

So this is my slice down here, 200,000.

So let's say I have investor A.

Investment

Now how does that work out?

So essentially, instead of Countrywide being responsible for my loan, my payments now go to these investors.

Now, who are they accountable to?

Let me put that.

They'll sell the loans to like, let's say, Bear Stearns. So that's an investment bank.

Malibu Equity and Investments.

And of course the pre money valuation is just you just take the pre money valuation plus the amount of cash they're giving us.

(Laughter) Here's some advice from one of the largest investors in the United States.

Because their investment here is sizable.

He valued what we already had at 5 million dollars.

So you have tons of investors.

And then, what's the state of affairs in our city now?

They're valuing these assets at 1 million.

As investors flee

Investing.

I do lose a couple of these people because they are willing to walk a little bit further for a cupcake.

So then they funneled even more money.

There's only 25,000 in this little pile of money that I'm collecting, but people think that there should be 35,000.

But what is most important here is, who do we finance?

And maybe I should do a whole video on what sell side means, but since I said the word I'll tell you right now.

If what we had before is worth 5 million and there were a million shares initially, then the pre money valuation

So he was able to withdraw his money, so when he goes back to the country club, he gives this guy and that guy more conviction that this is all on the up and up.

He's only running at 25 utilization.

Mmhm. It's a real estate investment.

This is the total actual value.

And I'll show you why that matters in a second.

Big investors.

Investment in what?

So now it is at 1,000, and it still has the same five investors here, and I am lucky enough to be one of them.

This guy doubled his money again, this guy just invested his money.

Did you know that 40 percent of the wealth created in Africa is not invested here in Africa?

And he puts in 400 into this corporation.

We're now going to make all of our mortgage payments, the 10 payment, to this bank, this investment bank.

And, I think, the number I used in the last video, he sold 500,000 cupcakes.