I’m a deal addict, which is what I’d like to make you as you become a millionaire. So what am I going to do once I’m a millionaire? Once I have enough, probably keep doing projects and deals because they’re so fun. What else are you going to do? Sit on the couch and retire? You’re going to be a cow to die? Not going to happen, not under my watch. So what is OPM? What is OPC? And what is OPI? So those are all new terms that I’m going to introduce to you. How do you leverage relationships in a database and then build the right team?
What is the importance of a really solid business plan, because you’re not going to attract anyone’s money, not only without a business plan, you have to have accounting software to track the money and the returns back to the investors. So let’s start with OPM, other people’s money. You’ve heard of it over and over and over. So where is it? Well, number one, they either have it in cash or they have it in credit. Sometimes you don’t need just cash, you need really good credit. Like in real estate deals, gas and oil deals, you want someone on the team that has great credit that helps you provide a better rate of funding if you needed the funding.
In mortgage situations, you’re going to get a lower mortgage rate, interest rate, if you actually have better credit. So partnering with someone with good credit is also another way to bring in some OPM and just have access to more OPM. The other one is an OPI, which is other people’s IRAs. People have 401(k)s and IRAs, there’s trillions of dollars sitting around and probably the laziest investments are inside of 401(k)s. So how can you use that? Well, almost every person, even if they’re still working for the company, can borrow $50,000 against their IRA. There is a small fee that they’re going to have to pay to do it. But if, again, you can arbitrage and put that $50,000 to work at 12%, 15%, 18%, you only have to pay two or three to get the money, why wouldn’t you go get it? There’s a lot of that money around. For those of you that are high income earners and you work at a hospital, you work at a law firm, you work at a tech company, and you’ve got all sorts of other fellow employees that have IRAs, why don’t you put the money together?
Now, when you raise capital and you use other people’s money to invest, as long as you stay in a non-security based asset, you’re going to be fine. But if you’re starting to pool money to go buy, say, apartments together, under your total command, you’re going to need what’s called a PPM. So a PPM is a private placement memorandum, which is actually written by a securities lawyer, somebody who actually has a security law, not just a general contracts lawyer. They’re going to have to know the security law. They’re going to have to know FINRA. They’re going to have to know all the great agencies and how capital is raised legally.
Now, there is a whole other source of OPM and a structure of equity crowdfunding. If you want a lot of really uneducated, low-level investors, you can set that up. That is a PPM. It’s a very different regulation and registration with the Security and Exchange Commission. But a reggae offering, right, is what they’re typically called and what they’re known for is equity crowdfunding. Our people can literally put in the amount that you say. They can invest $500, they can invest $1,000. So for some projects where you want them consuming your product, so for a lot of times like apps or softwares will allow a reggae because not only are you actually using the software, now you get to be an investor in the project. So it actually keeps a lot of stickability by letting people that are using your softwares and technologies be an investor. Huge, huge project.
You need massive FinTech for it. You need massive CPAs for it. And you’re going to need somebody just dedicated to investor relations because you can end up with thousands of those kind of people massively uneducated, but they might’ve had $500 in like your project. Interesting option, but there’s another one for you. And if you want to learn any of this, I want you to click on the link below, get a strategy session with our team. I’d love to mentor and coach you on how to do it legally. I have an extraordinary team that has helped me with many, many projects in the past and will continue moving forward. Other kinds of OPM are private equity firms, hedge funds, family offices. They’re going to come in at bigger rates. They’re usually going to strike at least a million, $2 million checks. There are private equity firms who will do $20 million of investing, but again, you’ve got to have a massive and a proper business plan.
So how do you leverage relationships? Well, I’ll tell you how I began. So I began actually with the Rich Dad Poor Dad team. So when I jumped out of Chevron, building fitness centers and offshore rigs and blue collar environments and jumped into Rich Dad Poor Dad team to be the master distributor of the cashflow game, I started building a database. So I actually got a half million dollars from a bank, which by the way, going to a local bank and getting really good interest rates is still a thing.
I know a lot of you have a banking fear, but banking is a 10x game. So for every deposit you’re putting in, they get a pull 10 times that from the central bank. So if you put a hundred thousand in because your company made a hundred, you just gave them the ability to pull down a million to then give out to consumer loans at 8, 9, 10%. That’s how banks make money. So if you flip it around, you say, well, how can I become the bank? So I went to a traditional bank. I got a half million dollar line of credit. I bought all the inventory, I put it in my own warehouse. Why? Because I wanted to control the data. I wanted to control the marketing and the buyers so they would continue to buy from me, not go back to the core company. So a lot of you, you’re missing a lot of revenue and relationship capital by not building a database and becoming extremely close to them. So I’ve had a database since I was 21 years old, that was just a minute ago. So I’ve had millions of people coming and going from my database on different times and different launches and different things that I would do.
And how do I get to know them? I invite them in to be coached, to be mentored, to guide them. As they become accredited, guess what? That game changes. So once you have an accredited investor, and the definition is either you are a millionaire or as an individual you make $250,000 or as a couple you make $350,000 for the last two years. So there’s all sorts of ways to organize getting accredited sooner than later. It’s one of the fastest milestones I want you to get so then you can invest in anything and if you’re accredited you’re going to attract accredited people. So I have a lot of accredited people in my database in our Rolodex of people who want to do deals. They want to do real estate projects, they want to do cannabis projects, they want to do storage unit projects, RV trailer parks, you name it. We have the asset class in this community somewhere. Somebody is working on that as their core business.
The other thing about building relationships is I would always lean up. I still lean up today. It’s the best advice anybody gave me is back in 1999, I knew I was pregnant, gonna have a son, well, didn’t know he was a son then, but knew I’d be a single mom. So I got really serious about striking that big check to a mentor that I’d been putting off for a while. And in six months, I took the database, the relationship capital I had and became a millionaire.
So you can do it just as fast, but if you don’t have a database and you need to get one, go to https://askrms.com/ for $297. We’re going to show you the value of adding to a database and the value you create in other people’s lives. So why is a business plan critical? It’s mandatory. In fact, a PPM is like the most sophisticated version of what a business plan is going to be. So it’s the use of funds. There’s a huge section of how you’re going to use the money. There’s a huge section on how you’re going to create the revenue and marketing plan, a sales plan. Let me actually give you the exact components of a business plan that you’re going to need to raise money. And attached to that is your corporate structure, potentially your trust structure, your tax structure, and you’ve got to have a software system called QuickBooks or some sort of a system that you’re going to track the investors’ money, the payments due to them, the profitability of your entire project.
And if you don’t have any of those systems, no one that has any smart capital should be even investing with you. So the components of a business plan. Number one, you’ve got to have a really clear vision. What are you doing? Which means what are you doing to get into the project and what are you doing to get out of the project, make it profitable, make it healthy in the team. Number two, again the mission statement that goes along with it. What’s the problem you’re solving? Number three, I need a comprehensive marketing and sales plan. Where’s the distribution? You can make the greatest stuff in the world but if it can’t move into the market you’re not going to be profitable and distribution is everything when you walk into a project. You need an operational plan, like who’s going to be doing the work. You want an org chart. Probably the most important part of a plan when you’re raising capital is the team. Who’s the managers, who’s going to run the project, and if you’re out there and you’re a beginner, get coach, get mentors, and you put people like me on your board. You put people like me on the team. You put my lawyers on the team. You put my accounts on the team. So we’ll bring a team to you as long as you’re in the big table and being mentored and coached by us. We’ll help you how to raise capital.
You don’t need a huge resume, but you’re going to need the team that can command the capital and the systems that will make sure that you’re profitable. Because when you use other people’s money, a lot of people forget, yeah, that may seem like simple cash. You owe them that money back and a return of whatever your promise was, whether it was 8%, 10%, 15, or 20%. How are you going to track it? So love to do it, love to coach you, love to teach you how to do it legally and right.
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