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

If I'm going to get an 8 return on my money, that's my benefit, it makes sense for me to borrow it at 5 .

They're valuing these assets at 1 million.

As investors flee

The limitation was that they didn't have any money.

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

Big investors.

Just Manic Enough.

He valued what we already had at 5 million dollars.

And that seems like a pretty reasonable proposition.

If there are investors willing to finance

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

This is the total actual value.

And so with patient capital from Acumen and other organizations,

What's it like being an investment banker?

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

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

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

In this corner, you have created something that's not valuable and not unique.

No major investor will consider us.

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

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

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.

Kind of, sort of is people have been nice to you.

And it's legitimate monopoly of means of violence, administrative control, management of public finances, investment in human capital, provision of citizenship rights, provision of infrastructure, management of the tangible and intangible assets of the state through regulation, creation of the market, international agreements, including public borrowing, and then, most importantly, rule of law.

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

Let's say that we end up lucky.

We're just exchanging shares.

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.

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.

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

I guess we seem to be doing at least a few things right.

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

So let's say I have investor A.

That they're reducing volatility.

There you go.