It could be a whole set of people.

So if I don't put the 150,000 down deposit on the home, and

Or are you trying to get an intuition for helping to become a better investor?

They're telling me that this is AAA, which means the highest level of debt.

So what is this whole thing worth right now?

They're valuing these assets at 1 million.

As investors flee

Oops.

Nevertheless, we will be eventually heavily rewarded from doing this.

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

Big investors.

This is a serious investigation of the stability of the island.

I do, there's a particular pebble in my shoe, who represents my investors.

Just Manic Enough.

He valued what we already had at 5 million dollars.

So you can imagine, this is the actual amount of cash that

This is the total actual value.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

By the way before we go forward, this is one point I want to mention.

Maybe I can get 20 a year.

That assets, A for assets, is equal to

I feel secure when I invest in stocks but not bonds.

On the equity side of the equation we just have four million shares.

If there are investors willing to finance

And we start getting to the negotiation.

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

So let's say he convinces investor B to join in.

I think it was at 7.50 a share.

And we allow entrepreneurs to share a percentage of their revenues.

And of that share, we have 2 million shares outstanding.

But this I just want to show you some data here.

Mmhm. It's a real estate investment.

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

He had originally given us 5 million.

They are just going alone! (Applause)

But now we actually built something.

What's it like being an investment banker?

We said before any of this stuff on the top existed, the pre money valuation of just our idea was 5 million.

The amount of money you get.

I know I've overdrawn this picture a little bit too much.

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

And of course the investors would care that the money that they're essentially giving because they're giving money to the investment bankers who are giving money to

CA And now you're a big investor in that and bringing that to market?

And then, let's say, we have several time periods.

So let's say I have investor A.