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Zach Morrow - His Journey in Launching Real Estate & Cryptocurrency Funds

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Zach Morrow got started in the Marine Corps, where he spent 5 years of active service. In fact, he was awarded the Presidential Support Badge for his role in direct support of the President of the United States. After completing his service he owned and operated 2 businesses before selling them to join Boron Capital, where he now serves as VP of Investor Relations. He oversees 3 private investment funds which operate across a series of asset classes, which include investments in real estate including mobile home communities and self storage units. Recently they have started working on investing in asset classes like Blockchain Technology & Cryptocurrency. Zach shares how he got to where he is today and how he helps investors to place their money into these strong funds to help them build and grow their wealth.

 

In this episode, hosted by Mike Swenson, we discussed:

  • Zach's background with the Marine Corps serving for five years, with a majority of that time was in Washington, DC on a presidential security force.
  • His role working with investment funds. He discusses how the team, who has put together an investment strategy, goes out and executes that strategy on behalf of a group of investors.
  • The strength of their investment strategy is with real estate, because it is something tangible, something that's real, something that can maintain value over time. It has a finite supply, so there will be more demand. They evaluate how it can produce a cash flow for its' investors.
  • Blockchain technology as a whole is an area of their focus moving forward. Inside of blockchain, they find assets that have great utility, a great adoption rate, a great team behind it, and real-life metrics that that are lending themselves to show that not only has utility now, but will continue to serve a great purpose moving forward. They believe that blockchain technology will be integrated across society in all ways.

 

Timestamps

00:00 - Intro and overview on Zach ‘s career
01:54 - Talking about investment funds
07:52 - Zach’s investment strategies
10:27 - What is real estate syndication
18:18 - How Zach started in crypto
29:54 - How crypto work in investing side
36:03 - How people can connect to Zach

 

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Full transcript here:

Mike Swenson 

Welcome to The REL freedom podcast where we inspire you to pursue your passion to gain time and financial freedom through opportunities in real estate. I'm your host, Mike Swenson. Let's get some real freedom together. All right, welcome, everybody. We've got another episode of REL freedom stories. And you know, sometimes we're in the thick of real estate investment at the lowest level in terms of folks that are flipping the homes themselves or swinging the hammer. They're working with the contractors. And what I really love about highlighting different people is there's a whole array of different opportunities in real estate. And so today, we've got Zach Morrow on, and Zach is from boron capital. And he does a lot with investments in the real estate space, and also cryptocurrency.

 

Mike Swenson 

So a topic that we haven't even covered, I don't think we've covered at all on the podcast. And so Zach's gonna spend some time kind of walking through what they do different investments that they look out for different asset classes, that kind of stuff, and just share how he's working in the real estate space and helping investors as well, that want to invest in these opportunities. And so welcome, Zach, we're so excited to have you. Why don't you just give us a little bit about what you do your role with boron capital? And then maybe a little bit about your background and how you got to where you're at?

 

Zach Morrow 

Yeah, absolutely. Well, first, Mike, thanks so much for having me really excited to get to share with you guys and happy to kind of talk through any direction you want to go. But, you know, you know, Mike and I were getting to visit before the show, and just had some good time getting getting to talk more about different things he's doing in the business things I do in the business. And, you know, my real day to day is really around what are called investment funds. And kind of for, you know, those who aren't as familiar, what it is, is it is essentially a team who has put together an investment strategy to go out and execute that strategy on behalf of a group of investors. And so part of that process for me is helping put those strategies together helping decide where and how we want to invest, and then deploying that capital as such, managing on behalf of investors.

 

Zach Morrow 

So this really is our particular businesses is more with those who are looking to allocate capital versus become the business owner themselves. And so I spent a lot of time with investors. And really, it's, it's, it's helping people understand where they're at what's right for them, right, because you know, everybody's going through a whole lot of decisions, when they're deciding where to put time where to put resource where to put capital. And understanding where you're at in that cycle for yourself will really help you get focused on where to spend your time, resource or capital.

 

Mike Swenson 

Give us a little bit of background kind of before you got into your role. What did what did you do before this? And kind of what what led you up to here?

 

Zach Morrow 

Yeah, perfect. So I would say that we all have different, unique ways to where we arrived, I would say mine was relatively non traditional to be sitting and working with investment fund management. My background really out of high school, I joined the Marine Corps. I served five years in the Marine Corps, majority of that time was in Washington, DC. And I served as a fiscal security and electronic security system specialist working security at a department of the White House and top secret facility and was on a presidential security force. So that's where, you know, my journey got started, I guess as a as an adult, right. And I learned a lot of things there that both good and bad, right? I think in every in every experience, even even the ones that don't go exactly the way you want, there's so much opportunity to learn and grow from you learn what you like, what you don't like, and really helps shift how you spend time moving into the future. And so, you know, as I was coming out of the Marine Corps, I was married, I had a young daughter, she was just over two years old at the time. We left dc we came back to West Texas, that's where my parents were in the area. Now my wife's from this area.

 

Zach Morrow 

So came back started a family I was going to Texas Tech University. And really for me, I think which really aligns with your group is I knew that I wanted the freedom to live my life aligned with the values I had and be able to number one, put my family first. And with my previous job while there's so many things I loved about it. It was an expectation that on any given notice, and you had to put your job first, right there were times where I was literally going out of town for work. And I couldn't tell my wife where I was going, huh. And I'm leaving gotta go. This is what, and that was it, you know, and later down the road, she would be able to find out, you know what we were doing. But it all had to do with, you know, our job was a matter of national security.

 

Zach Morrow 

So the expectation was that and so I didn't have the freedom to put my family first. And that was all good. And well, when it was just me. But now that I'm a father, now that I, I'm married and a husband, I knew that going forward into the next phase of my life that I wanted to be able to put my family first and be able to have that freedom. And so for me, it became a journey of education, taking the skills that I had, and kind of taking an inventory and say, with where I'm at, what skills, what resources do I have, and how can I put those to use to bring me to where I want to go. And that put me on an entrepreneurial journey. So I was in school, I was working full time, and I was working on starting a business. And that led me within one year of being back, I was able to open that business, I spent about five years growing that business and about two and a half years in I opened day, a kind of supplemental business to that.

 

Zach Morrow 

So I had two different operations that that I was working with managing overseen. And during that time, I ran into a gentleman by the name of Blake Templeton, who's the owner and CEO of who I'm with now, he became a mentor, a friend, and, you know, really became a sort of discipleship relationship where he was consulting, and kind of became like a big brother. And I don't have any big brothers. So that was a, that was a, you know, a nice thing to run into somebody felt like you could trust could count on. And through that mentor ship, you know, we began doing business together, grown what I was doing, and eventually led me to the point where it made sense for me to essentially sell and divest from where I was currently at, and coming over full time to join, join the team, the purpose, the vision, with blonde capital. And so that brought me to where I am now. That's that's a short story. I know that we all know, there's way more ups and downs on every every story than in the in the Cliff Notes version. But that's the sink point.

 

Mike Swenson 

So you know, with an investment firm, you've got kind of the the front of the house and the back of the house, you've got the investor side, and then you've got the kind of the picking the investment side. So why don't you walk through what happens when you're kind of choosing your investment strategy. So maybe we'll start there, and then we can kind of finish with what's the the pitch or essentially the opportunity for the investor. So kind of walk through that back end of how you guys are spending your money, how you're, you know, figuring out which which spots to invest in, then obviously, because this is real estate related, let's highlight. Yeah, some of that that real estate piece.

 

Zach Morrow 

Yeah, we'd love to. So, you know, decision making is very important, when you are first starting to understand where you're at. And so just like an individual person, companies go through phases, too. And you're going to want to make decisions that are most aligned with where you're at, and what your next step is to achieve the ultimate result. And so, you know, I can tell you, Blake started back in 2006. And it was just him. And his time, it was the girlfriend who's now the wife of many years, right. And they got started door knocking, they were doing flips, they were doing wholesales. And that's how they were able to get into the real estate game. And for all those that are in flips, and wholesales. I mean, that really is a business, you're running a business. And as a business, that business really is short term with a high cash margin. So you're able to turn over properties to bring in cash.

 

Zach Morrow 

Now, when I'm processing long term, my ultimate goal is always to how do I number one, get my income, right? So my cash, my cash flow, how do I get my cash up to then get into assets that then can bring me more cash to get more assets. So asset accumulation, ultimately, is the goal. And then so it starts with building up your cash, whether you know, you want to get out and run a flipping business or wholesale or whether you, you know, are working on building up your income from whatever job it is you're working, finding a way to get that cash in is really step one. And then from there, you know, now you're at a position where now I got to allocate cash and it becomes an asset decision.

 

Zach Morrow 

And so there are phases, I'll tell you as a company, we started going into larger deals, and those larger deals brought back larger cash chunks. And then we started now we're starting to balance out what are our shorter term properties in what are our longer term properties. And my longer term stuff are things that I believe are going to hold up where the economy's going up or down and you're you're always evaluating what's coming up in The future, what has a historical precedent for that? And then do I have a reasonable expectation, it's going to continue to be able to perform in that way moving forward into the future. So you're balancing out my cash flow versus my asset accumulation. And, you know, a couple years back is really when we transition to the fund model. So a fund versus a you know, if I'm, if I'm purchasing a single property, you might call that like a real estate syndication.

 

Zach Morrow 

And in a syndication, what I'm doing is I'm I'm bringing capital together to go purchase a single property 1234 Main Street, and, you know, if I'm an investor, my decision making process is going to be, do I believe, in that property? Do I like this deal? Okay, and then do I believe that the management company or if I'm the manager can execute the deal? Right. Now, when you look at a fund, it's more about "do I believe in the strategy?", because a fund really is a collection or a portfolio of a particular asset, that's going to operate in a certain way to produce a certain result. So that's your strategy. And so I have to believe number one in the strategy, and then do I believe in the team that the team is the one that can execute the strategy on my behalf, right. And if I'm going to be the one out there doing it myself, do I believe I have the resources in the management and operational capacity to do so. So for us where we're at right now, we're really focused on a lot more long term asset accumulation. And so whenever I'm processing that, I'm looking at what's happening with inside of the economy, I think we all call the timeout in 2020. Right, if you haven't called the timeout yet, you know, just go ahead and call it now.

 

Zach Morrow 

Because we always want to be aware of what's happening presently, and what's potentially on the horizon. And we obviously can't predict the future. But we want to set ourselves up to be in the best position to take advantage of opportunity, or to, you know, be able to hedge throughout a season if there's an up and down. And so from the real estate side, we really, self storage and mobile home communities really had been on our radar for a long time. But it wasn't an asset class, we'd spent a lot of time and as a company. And back in beginning of 2020, we really had to call a timeout, we're saying, okay, knowing with what we're doing right now, and we had come out of multifamily and things like that, we were asking ourselves, what do we want to buy right now? What do where do we feel like the opportunity is and what's going to sustain? And so timeline, just kind of timeout on the whole story, the timeline on which under which you're trying to accomplish something is going to dictate really where you want to spend your time, right.

 

Zach Morrow 

So for a flip, you know that your timeline short to produce cash right here, well, and then my goal is cash, and then I got to go find that cash, but that cash to work for another deal. But when you're in a space where you are already have maybe a larger abundance of cash, right? Well, now it's an allocation of that cash to Prudential, potentially put more assets to work that are going to protect my cash over time, allow it to grow, and then produce an income and hopefully some tax benefits along the way, because we all have tax benefits if you're in real estate. So kind of going back to the story. For us, it's calling a timeout, you know, and I'll just tell you, you know, not to significantly shift the difference. But you know, part of our timeout is praying, so we spend time praying and you know, seeking the Lord on what direction we want to go. And then we're assessing everything from an analytical standpoint. And when we're looking at the real estate, we really felt led in the direction of self storage, mobile home communities.

 

Zach Morrow 

And I'll tell you, when you go back historically, I mean, if you do like a bass 100, like you're just starting, like if everybody started with $1, back since like, 1993, if you were looking at the asset classes that were performing, and returning the highest dollar since 1993, self storage is by far the top one when it comes to the actual return. And then manufactured housing or mobile home communities are coming down. And second, then when you flip it from a risk adjusted standpoint, they're both in the top three as well. So they they show to be recession resistant, they show to be able to perform in both ups and down markets. And so you have that hedge there, then you also have the opportunity for stronger upside and cash flow. So, you know, for us, we're looking at those and we're trying to ask the question, do we really know where everything's going right now? And at the time, the answer was, I think we all agreed, no. And so it's how do we seek value in areas where we think that we can continue to perform regardless of whether or not the markets going to like, right now, with the mobile home communities, we're really looking for good blue collar communities.

 

Zach Morrow 

We want a strong middle America, baseline for people to be utilizing these lower cost homes, right. I think affordable housing is going to continue to be a need, regardless of where the market goes, right? Because there's always going to be a base or group of people that need affordable housing. There's also a really great supply and demand difference when it comes to mobile home communities. There's more mobile home communities being torn down every year than there actually are being built. So the supply is restricting. And the demand isn't going anywhere. So the demand is continuing to grow, and the supply is restricting. So these aren't the easiest properties to go out and find in abundance, it does take more time and more effort to find a quality result. But that's where, you know, you have to get with the right people spend your time out there to go and get the right asset. And so we really like it for that reason, we believe that it holds up well, in both up and down markets. And we would say the same same for self storage, you know, it's proven itself to have great economies of scale. And we're able to get many units with a very low capex.

 

Zach Morrow 

So our capital expenditure over time is quite low. It's the same with manufactured housing, we focus on owning the actual community, and the lats rather than the actual homes themselves. And then for us, we believe that leads to a stronger community, because the community their owners now, and they, you know, those who own tend to take better care of their things than those who don't, right? Because it's their thing. They want to protect its value and growth over time. And so, you know, that's one of our focuses there. And, you know, so I would say, those are the broad reasons why we really got into self storage and manufactured homes. And, you know, our specific strategy with inside of that, obviously, is something else, we could talk to them as far as the asset classes themselves. Those are some of the key reasons why we really liked them.

 

Mike Swenson 

So then you have somebody on your team, that their job is to go find these mobile home communities to invest in? Or do you have, you know, folks that that serve up opportunities to you? Or how do you kind of find those matches?

 

Zach Morrow 

So it's a little bit of both? Right? So, for us, back in 2020, when we were asking this question, we asked the same question that I think a lot of investors ask themselves as well, when you know, you want to accomplish something, I think that one of the first questions you have to ask is, am I going to go learn how to do everything? Or am I going to maybe find somebody that knows more about it, or has a track record in it. And that's why people are coming to the show, they want to hear from your experience and the experience of, you know, the great guests you bring on and hope to be able to be one of those and provide that value as well. But we're asking the question of who really here has an incredible track record has done an incredible job, and we went out and sought partners, and you know, we were able to align with a great group, you know, one of the group's Don Corp is our property management. Brian, Don, the owner of the company has been in these assets for about 50 years now.

 

Zach Morrow 

It's in his early 70s, and one of the largest property managers across the nation. And we also partnered with a gentleman by the name of Ryan and his wife, Jamie, and they've been in these areas for about 20 years. And so we formed a partnership together to be able to accomplish the goal. And during that time, our teams obviously have some merge there, and there's some crossover. So you do have people that are out there looking for great deals, but at the same time, you have a presence and a track record inside the space where people are, know that this is what you're doing. And the longer you're doing something and more people know you're doing these things, they begin to start bringing you these deals, as well. So it's a mix of both to answer your question.

 

Mike Swenson 

So let's let's kind of flip to crypto for a little bit. So you're you're investing in some mobile home parks, you're investing in some other areas, the self storage piece, how did crypto get started for you guys? And you know, as I told you ahead of time, you know, there's a lot of people in the real estate space that are interested, they're curious, they want to learn more about it. So what would be kind of your your short pitch slash introduction to duction of cryptocurrency and how it's kind of taking a hold in your guys's funds?

 

Zach Morrow 

Yeah, well, let me say this, our core fundamental values that were developed through real estate is we believe in having something tangible, something that's real, something that can maintain value over time that we believe has a finite ability to as far as supply and demand, and then we're actually looking at can it produce a cash flow? Can it appreciate over time? I mean, all the reasons we love real estate and what benefits can I have inside of that space? And, you know, when we're evaluating all the markets, we have a lot of exposure on the real estate side, and we're okay with that. But it was the same process and idea I'm buying real estate right now, like our main focus with our real estate is a long term strategy. We're really focused long term with the assets we're purchasing. And that real estate, what we're doing is we're looking, you know, 123 decades out. And our main goal is, we as investor groups, we go in and we're actually getting all that money back out, paying the investors off, they get all their money back, and then they continue to own equity and upside and things like that. We just want to utilize certain strategies there to be able to continue to operate at cash flow, reduce taxes, things like that. So we love all those things about real estate. And then you've got this whole new world, right? Like, what the heck are you doing inside real tangible?

 

Mike Swenson 

Yeah, it's kind of the opposite is happening here.

 

Zach Morrow 

And just so you know, if you go backwards in time, we were like, Oh, my gosh, this is ridiculous. What is even happening? This is just complete baloney. Like, it's just a flash in the pan, you know, and we weren't the only one saying it. Right? The right people that really kind of still have this, but all of a sudden, I think the whole world is starting to go. I kind of think this might be a real thing. Like what is actually happening here. So for us, you know, it's just like even Ray Dalio back in 2017 was like it's a bubble. Ray Dalio is the largest hedge fund manager out there, if you're if you're not familiar with him, and then back in 2021, this guy right here who's been in stocks and bonds, his whole life comes out and says, you know, I gotta be honest, I'd rather own Bitcoin than a bond. And you're like, What in the world? So at that point, we were already very much in alignment with that.

 

Zach Morrow 

And the, the reality is, it's different than like a stock. So you know, I think a lot of us that are in the world of real estate, and alternatives, we kind of see some of the manipulation in the stock market, you know, the differences in values and price versus earnings and all these sorts of things. And then we look at crypto, we're like, this is just a volatile asset. I don't want to mess with it. Because I just like my tried and true, I like my steady I like, I may not be on the get rich, quick plan, but I'm on the get rich, for sure plan, you know, and when we assess crypto, we, as a firm are always having to ask the question, where do we want to allocate, and we build our funds with that in mind. So we're, as a private company, as a private firm. We're building funds saying this is where we want to invest.

 

Zach Morrow 

These are the strategies under which we're going to invest. And then the invitation is to investors to say, if you agree with us, if you like this model, if you like the strategy, and you believe we can execute it, you can do this with us, right? And so when we're looking at crypto, we really had to go back to the drawing board. And this was again, same time COVID hit where like, everything shifting, we need to call a timeout, question all of our assumptions and figure out what really is happening, where's the world going? How are things shifting? And, you know, we came to see that this market is so much bigger than we are giving it credit for. And really, a lot of our preconceived assumptions and notions were things that were actually incorrect when it came to what the market was, how it operates, what's really taking place here. And so kind of disclaimer here, I'll just put it out. Like there's a ton of it. That's complete baloney right now. Okay, a lot of it is not good. I, in no way recommend it. But there's a lot of it that has incredible utility, real life value. And it's a technology that I would say in it really undergirds the internet and digital operations.

 

Zach Morrow 

So blockchain technology as a whole is really the area of our focus. And then with inside of blockchain, it's where and how inside this industry, this technology, do we find assets that have great utility, a great adoption rate, a great team behind it, and real life metrics that that are lending themselves to show that not only has utility now, but will continue to serve a great purpose moving forward. So I believe that blockchain technology will be integrated across society in all ways. And so then you have to ask yourself, if it's going this direction, you know, to what level do I want to participate? And so, you know, Elon Musk actually came out and said, you know, a couple of years, you know, a while back, who, you know, Elon now has billions in crypto, but he came out and said, he's like, I came to the point, I realized that it was essentially inevitable. And I could either watch it happen, or I could participate. And so, you know, for those who are kind of still on the fence, that's okay. There's no need to rush into it. But it is a great time to begin educating yourself to say, How are things shifting? And with that shift? What kind of role do I want to play what I want my allocation to be? And, you know, whenever I say tangible, we actually own a piece of the blockchain. And I know it's digital.

 

Zach Morrow 

So it doesn't seem tangible in that way. But it's different than, you know, numbers on a ledger. It's different than, you know, a shell company, printing out more stocks, running all these things, you know, we actually own a tangible piece of that, even though it's digital, it's hard to understand, you know, fundamentally, you know, it's just a new, a new thing to understand, but you are actually owning a real life property in a lot of places. You know, certain cryptos are treated like property, it appreciates, you're able to borrow against it, you can lend against it, you can actually do certain things to create cash flow with it. So there's a variety of things within aside the greater sphere that we believe, obviously will continue to grow. I mean, there's certain things, it's millions of transactions a day, presently. And it's the fastest growing technology in all history. So we kind of came to that same realization as Elon as well, we can either watch it happen, or we can participate. And then once we decided we want to participate, you know, we, we went really deep, we did the same thing, we aligned with other experts, we built a team of people that have been, you know, actively in it for many years, and have a great track record.

 

Zach Morrow 

And then we made it available for investors as well. So, you know, on that side, you know, I actually, literally this month, I have, I have a friend who she actually runs a real estate investment group. So this is a big time real estate investor. And she's like, Oh, my gosh, this is huge. I've been so interested, I've been so curious, but I don't have the time, or the resource or the energy to go and like, understand everything. So I'm so excited you're doing it, because now I can give it to you, because I trust you. And I know you guys will, will take good care of it. So now she's excited she can begin allocating. Right. And so, you know, we can go into the into the weeds with it if you want to go deep. But you know, that's kind of the the conclusion that we had to come to is, is we believe that it absolutely is a a technology that will produce many different facets of use cases throughout the world, and will absolutely continue to support digital operations. And I think we all agree that the world's only becoming more digital.

 

Mike Swenson 

Yeah, no, that's phenomenal. And how much of that investment in on the crypto space? Was you guys looking up and leading where it's gonna go? And I'm curious, was there any investor pressure of, hey, we're really curious about this, can you guys go figure this out? And here's my money. And then with that piece of the conversation, we can kind of flip over to the investor side to have kind of how does that work on the investor side? And how can they, you know, invest money with you?

 

Zach Morrow 

Yeah, absolutely. So I will tell you that it took us 18 months of due diligence and preparation, and compliance build out to be able to even offer it. So, you know, it's a long process, especially with an asset class that, you know, a lot of people are still figuring out. And so when we started, it was, it was prior to any investor pressure. And as we were working on it, you start seeing the sentiment change, you start seeing more people becoming interested in, you know, even even since opening it up, you know, I have some guys who they've been invested with for 10 years. You know, I got one guy in my 10 years. And he says, he's like, Zack, I want to come and learn about it, but I'm not doing anything. I'm like, okay, like, I'm not pressuring you to even come learn about it, you know, but I got another guy. He was like, he's like, Okay, I'm really interested. But it really just feels like unregulated voodoo, like, got it, that's fine. Wherever you're at on that kind of scale. Have you know that we have other guys who they're like, oh, my gosh, I love this. I'm so excited.

 

Zach Morrow 

You guys are doing this. And then you know, so the spectrum is broad. And, but it makes it fun. I find that everybody's curious. Everybody enjoys learning about it. And it's definitely a fun thing on the portfolio. But this was one that we we definitely spent the time on and realize it was something that we wanted to do. And we'd been watching it for a long time. And we finally believed, you know, back, back in 2020, we're like, okay, we really believe this is now growing, infrastructure is being created, where this is going to take off in a new way, based off of all the changes, right? I think that trajectory was incredibly sped up, because of what happened with COVID was shut down and locked down with, you know, the quantitative easing with the stimulus, I think everything was expedited, right.

 

Zach Morrow 

So it forced people to be looking at it more to be spending time and then it forced, you know, a lot of money into assets. And people were looking for a place where they could actually generate some alpha. And during that time, you saw a lot of new adoption. And right now, I'll tell you, you know, all of the big boys they want in they just haven't they just haven't got through the compliance yet. I think that over the next year, 24 months, we're going to start seeing bigger and bigger talks about it, and it very much will be a very regular and commonplace thing for all the major banks and for, you know, all the major institutions.

 

Mike Swenson 

Mm hmm. Yeah, absolutely. So then, yeah, how does that work on the investor side, kind of walk us through What that looks like for you guys.

 

Zach Morrow 

Yeah, so whether it's our real estate fund, or whether it's our cryptocurrency hedge fund, the process is very similar. So first of all, it's just getting to know the investor, right if we already got a relationship, but I'm kind of just speaking broad, but it's obviously developing relationship, get to know one another. And then it's talking through the strategy, the team, everything like that. And then when when an investor reaches the point of thinking, You know what, I'm really interested in doing this, then it's pretty simple process, right? The process is a set of documents, that is what are called offering documents, you have what's called a private placement memorandum outlines your risks, your disclaimers, what the offering is how it works, all the structure and terms, then, you know, we have an LLC agreement, we have what are called subscription documents.

 

Zach Morrow 

This is only for accredited investors. That's just some of the compliance regulations that we have to work with. It's accredited only. And then from there, after all that kind of, you know, front of house stuff happens on our side, whether you're investing into the real estate fund or into a crypto fund, what happens is you're investing into the assets that we're managing, okay, so we're putting together a portfolio, and then we're actively managing that portfolio as a collective. So it's not like an individual account, I'm not managing, okay, here's Mike's money, here's John's money, here's Susie's money, and I'm doing different things with it. It's a fund and the fund has a set strategy. So we have to operate with inside the bounds of the agreement, right. So I'm not going to take, you know, a real estate investor coming over and money's not going into crypto, none of that blends, it's completely separate entities, right, or vice versa. But they come in, they're invested. And then you have active management. So if it's, you know, we're purchasing and acquiring real estate, and then operating that real estate, you know, we're taking care of the financing, the daily operations, were taking care of reifies or anything like that.

 

Zach Morrow 

Then on the crypto side, we're actually purchasing assets, we're diversifying within different asset classes with inside the greater blockchain world, the cryptocurrency world. And then we're actively managing that on a daily basis, changing portfolio allocation, making changes based off of market sentiment, where the markets are moving, the fundamentals, the technicals, that side of things. So then we continue to operate and each fund has a little bit different terms, right? Real Estate, obviously has a little bit longer pathway. I think everybody's familiar with that, then Kryptos, a little bit more liquid. And so that that provides for different terms. And within sight of that. There's obviously the terms as far as the expectation of return of capital, when can I draw out? How long do we think this is going to take? What are expected returns or things like that. And those are obviously all discussed and shared through the offering documents. And then the terms are more specific. So you know, it's monthly or quarterly statements, annual audits, things like that. So like I was talking with an investor earlier today, on the crypto specifically, he's like, so tell me a little bit about it, like, you know, it, you know, how does the reporting happen?

 

Zach Morrow 

He's like, I want to make sure that everything's good. I'm like, well, just so you understand, we operate with what's called a fund administrator. He's like, what's that I'm like, a fund administrator is a third party who has to verify every transaction we do. Meaning they're actually, you know, looking over to make sure you're doing everything you're supposed to do. They're the ones that generate the reports, they're the ones that send out the statements, we don't even report anything of our own earnings or anything like that. It's done by a third party verified, then on an annual basis, then you have an auditor come in, and then they audit, both you, the administrator and you and everything that took place with inside of it. So, you know, it is a very transparent process. They're getting statements on a monthly basis. So they're able to see what's happening inside the accounts and things like that. But that's a little bit about the experience. And yeah, that's that's what an investor would would experience once they get started.

 

Mike Swenson 

So then you had mentioned accredited investor. And I know, some folks might not know, what does it take to become an accredited investor? And how do I do that?

 

Zach Morrow 

Great question. So there's certain things that you just are, you aren't so you may already be, and you didn't know. So very simply, if you're an individual, the way the SEC puts it out, is if you're an individual who's earning 200,000 or more per year, and you've done so for the previous two years, and you have an expectation to do so in the future, you would then be accredited by your income. So and that's what all you need. So if you've made that money, you're accredited, or if you're joint with a spouse, it could be $100 550 Each, you know, 300 Collective, so maybe you're each making 150. So you didn't as an individual hit the 200. But as a couple join, you'd be 300,000. So 200,000 is individual 300 as a couple That would be income based, you can also qualify under net worth. So your net worth has to be a million or more, excluding your primary residence. Okay, those are the two main ways to get accredited and it's, I say get right you, you either are you aren't based off of those, there actually is a new thing that came out.

 

Zach Morrow 

And I actually had it pulled up, I was looking it up this morning, so I'm just gonna pull it up. Okay, so now, if you don't have that income or net worth, you can actually become accredited, which then what all accredited means is you're gonna get access to do the types of deals and offerings that you know, groups like ours off. Yep. So now if you have your series seven, your series 65, or your series 82 license, you can now be deemed accredited. So now it's like, you know, if you're, if you're getting started, you're on your way up, but you want to, you know, take a look at different opportunities. If you wanted to go out and get that license, you would actually qualify. So now you'd be accredited that way.

 

Mike Swenson 

Awesome. That is a lot to take in. And you've done a great job explaining it. And I think it gives a good high level overview of what you guys are working on and kind of that investment side. Because yeah, there's a lot of people that are curious how these larger investments work, how do I become accredited? What does that look like? And then obviously, the the crypto piece, so I think you did a fantastic job of educating the listener on kind of what is this? And how can I participate and get involved in and then obviously, on the back end, you know, for you as a career path, like this is something that you can do. And so if people are interested, you know, in kind of learning more about your company, want to connect with you more, how can they do that?

 

Zach Morrow 

Yeah. Be happy to be a resource for anybody that's looking for a resource. So two easy ways. One is to text us, you can text the word INFO and you text it to the number 31996. So text "info" 231996 and a member of our team will get with you. We can help answer questions point you in the right direction, things like that. And then shoot me an email. Same thing info at boron vor o n cap caap.com. So that's our company war on capital. So info at bar on cap.com. So email or text right there. And someone will be with you to answer questions and help out and hopefully we can be a resource.

 

Mike Swenson 

Awesome. Well thank you so much for coming on. appreciate you sharing your story, how you got here and what you guys are working on and just excited for the future that you guys have.

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