They're valuing these assets at 1 million.

As investors flee

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.

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.

Yeah, yeah. Carefully. Carefully.

What's it like being an investment banker?

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

Let's go deep.

Carefully, Lieutenant.

All right. Work him gently.

The estate's vulnerable.

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

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

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.

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.

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

Let's say that we end up lucky.

Way ahead of my time here.

Come on! Careful!

Discreetly.

Be careful.

Be careful

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.