Hey everyone, welcome to another Amin

mean coffee chat. We are in Gville,

California celebrating a good friend’s

wedding and we wanted to do a coffee

chat talking about, you know, the

biggest milestone yet. We’ve been able

to raise our funds and talk about what’s

coming up next.

Yeah. So, this is obviously a slightly

different setting. I’ve got my iced

Americano here and then we came out to

Corbel Champagne Tasting Room. Uh so

Andrea could have a little champagne

flight, try a few different flavors. So

cheers.

Cheers.

So number one, you know, uh most

important thing that we wanted to chat

about today is we reached one of the

biggest milestones in this project, but

it is only the beginning of a much

longer race. So first we want to take a

moment to celebrate. We successfully

were able to raise meet our target of

$2.8 8 million raised from investor

capital. That was a critical lynch pin

in being able to finish our loan and

fund this project. There will be no

project without funding. Uh but with

that said, there’s still so much work

left to do. So, we’re trying to strike

the right balance between celebrating

the moment and and preparing for what

lies ahead.

So, maybe we can uh you know, give a

quick indication of um you know, what

what now, right? Everything we’ve been

talking about has been around raising

this money. So, uh, now that we’re here,

what what’s next?

Well, we are focusing on our value

engineering stage with our construction

budget. So,

what’s value engineering?

Value engineering is when you really

analyze all the components of the scope

of your plan and see anywhere that you

can save money and you just try to

engineer savings essentially, value. Um,

so, yep, we finally have final pricing

from our build team. And so now we’re

going to really dig in to that phase.

And while that’s going on and while the

bank is in their due diligence phase, I

will be on the ground running um

networking in the community developing

these really important community

partnerships that we will uh you know

need to operate effectively and you know

really start building our brand and

building out our operations, building

out um the wish list for what type of

staff we want and how we’re going to

find them and starting that whole

process. So, it’s a it’s a lot. It’s

like the real work starts now.

Yeah. One of the biggest challenges

about a project like this is that

there’s a lot of things running

concurrently. It’s not a clean relay

race type thing where okay, we’re going

to raise capital now and then we’re

going to go do this and then we’re going

to go do this. It’s actually three or

four things happening at any given

point. All the construction stuff has

been happening in the background while

we’ve been raising capital. all this

finalization of pricing and tweaking and

looking at, you know, where can we save

cost? Like what are the different things

you might need, how do those map to the

timeline, it’s very complex, but we

also, this is why we have such an

awesome team.

And uh so it’s it’s been a lot of fun

just kind of getting to this point. And

what the capital raise did from where I

sit that I appreciate is that it stress

tested every area of the business,

right? Investors all asked incredible

questions. There were a lot of different

angles that people were concerned about.

Some were concerned about healthcare,

some were concerned about construction,

some were concerned about the bank,

right? And so each time we got a

question, we were able to build this

giant library of answers, right?

Thankfully, these weren’t questions.

There were questions that we were

prepared to answer, but being able to

really like pull those through in live

conversations

and get to a point where we felt even

more resolved in our our plan, I thought

that was a nice secondary outcome of the

capital raise was u not only of course

getting the investors on board, but

being able to like really feel that much

stronger in our plan.

I totally agree. Yes, it helped us build

out some things that I think depending

on how you go about this type of

project, you might do a little bit later

or in a different phase, but building

out things like the staff scheduling and

getting really into the detail there and

really getting down to um you know

really um fine level of detail really

helped us and helped us gain more

confidence like we do have a really

solid plan and to to move forward with

that. We feel like we’ve developed a

good kind of base for the business

already.

It’s really interesting, too. I mean,

everyone at some point in their life

faces imposter syndrome. And as we’re

like going into a much more complex

project like this, it is interesting

when you’re out there, you’re trying to

raise money, you’re talking about this

business, and and there’s full

recognition that like this is this is a

new world in many ways for us. But we’ve

also spent 10 going on 11 months. By the

time we close it’ll be 12 months

preparing for this. And so there’s

there’s also this like self-discovery

element of being confident about talking

about our business, right? And like

Yeah. And we’ve had to do it so much

like so yeah, we’re really confident now

and comfortable.

Yeah. Yeah. It was pretty funny. You

know, I went on I think it was 13

podcasts throughout the course of the

capital raise and by the end I I forget

exactly who said it, but they were like,

“Man, you’ve got these talking points

really like, you know, well dialed in.”

I’m like, “Well, I’ve had a lot of

practice in the last, you know, 3

months, right? Just uh figuring out how

to talk about the business.”

And that’s really important. You have to

be able to do that. That’s something

that you have to do no matter what. So,

being on this kind of tour of investors

um was helped us do that sooner.

Yeah. Yeah. And I think too like the

other awesome outcome, the investors

that are ended up joining our team are

people that we all feel really well

aligned with. They’re they’re people

that share similar values. They

appreciate the mission behind the

business. Most if not all of them had

some personal connection to senior care

and a lot several of them are even

considering doing businesses like this

on their own in the future. So I I think

from a yes like we we raised the money

we needed to raise. We also found the

people that were going to be really

happy to be involved in the project for

the next 5 to 10 years, you know, as we

as we go through this journey together.

That that was important to us. You know,

beggars can’t be choosers, right? We

were going to have to go and find the

money one way or another. But I think

another great byproduct is just the

people,

you know, is is nice surprise. I think

definitely and that’s another topic that

I wanted to bring up in this

conversation. Not only the investors who

are all aligned with us and I think

that’s so amazing, but it also helped us

get to know our GP team even better and

really start that working relationship.

And I just wanted to talk about how

grateful and how thankful we are to

everyone on the GP team that showed up

for this, you know, whole investor

capital raising phase, came to the

office hours that we hosted, came to the

investor webinars with fund managers

and, you know, being able to have a

unified front and build that working

relationship and seeing um everyone’s

strengths being showcased is just so

awesome and I’m so thankful and proud of

the team. Really?

Yeah. Not only for the incredible work

they did, but it’s also a cool way for

us to settle into our respective roles.

We would have investors that maybe they

attended a webinar and they had

follow-up questions. Some of them were

about construction, so we’d bring in

Bailey and Blake from Dun Project

Solutions to come and we’d go through

the the timeline in depth with that

investor so that they could feel secure

about it. Other times they might have

questions about Brett and Laura’s memory

care mansion model. So we bring Brett to

a call. It’s just a really cool way for

us to continue to develop those

relationships like you said and also

show that to our investors, right? It’s

like it’s not just the two of us in here

making everything up as we go along. No,

we brought in experts for each domain.

We’re listening to them. We’re involving

them and we’re all making decisions

together in the best interests of the of

the business. And yeah, that that was a

lot of fun.

Yes. Mhm.

So from here it’s an interesting, you

know, you mentioned you got the

construction stuff. We’re working

through finalizing the bank underwriting

and um you know, so essentially they

provided a very detailed term sheet at

the very beginning. They they got all of

our preliminary documents heading into

this and then we had to basically hit

pause on the bank application till we

came back with all the money.

So as of yesterday, we’re recording this

on a Saturday. you know, we sent

everything off to the bank and now

they’re they have everything they need

to finalize the loan. So, instead of

just sitting around and doing nothing,

right, there’s still so much left to do.

I think a lot of it probably lies um in

your court as we continue to kind of

look ahead to okay, one construction is

going to be going for about 10 to 12

months and then after that we’re going

to have a living breathing business with

staff. We have to find the residents you

know that between those two things alone

you could easily spend the next 10

months. So maybe

Oh, totally.

Maybe share a couple of things we’re

working on to kind of prepare for that

phase.

Well, we are building out, you know, the

ideal

caregiver, the type of person that we

want to be a caregiver. We’re building

out the ideal avatar for the manager,

for the chef. What type of staff do we

need? and you know thinking

strategically, okay, who are going to be

our partners in the industry, outside of

the industry, in the referral space,

just in the uh community organization

space, who are going to be our partners

that are really going to help us create

that um sales funnel and really help us

fill our weight list before we get

opened. And this will be a really

exciting space for me and Joseph to work

together and him bringing his clinical

expertise and expertise working with

medical professionals will be so

valuable and we will start to just build

out our strategy of how we’re going to

go about this. And you know our goal is

to have a wait list and be you know

almost full before we even open. And

it’s possible that we could have a wait

list before our construction is even

complete. And I think that would be that

would set us really set us up really

well for opening.

Yeah, it’s really interesting because

you know going through the investor

conversations and everyone’s looking at

our proforma and like we got 12 months

budget for construction, we have 12

months budget for lease up. We did that

in a very specific methodical way and we

tried to budget more time than we think

we need. So now a lot of this is a race

to how can we fill up as quickly as

possible but responsibly as possible. If

we’ve had 32 people move in on day one

of opening, that would be a disaster,

right? So, like we have to hire, train,

find the, you know, build the culture,

get people prepared because ultimately

this business is only going to be as

good as our staff that we can find to

run it on a day-to-day basis. We can

provide the leadership and the vision

and the and the mission and the vision

and the values, but the day-to-day

execution and how people take care of of

our residents is what will drive the

business. So finding that like fine-tune

of like we want to market as much as

possible, but we also also want to be uh

pacing when we lease up accordingly,

right?

Oh yeah, that’s right. And with even the

timing of hiring is a little bit tricky

because we can’t hire staff in the next

couple months, right? Like we won’t be

open in time and we’re not going to be

paying people that long. So the timing,

finding the right person and then

getting that at the right time where we

have enough time to train, but it’s not

too much time before we open. And

that’ll be an interesting that’ll be

something interesting that we’ll figure

out.

Yeah. But we’re grateful to be at this

at this phase. I mean, this is uh

probably one of the bigger milestones as

far as just making the project actually

happen or not.

Yes.

And um it was an extraordinary team

effort. It took months, right? Um I I

actually there’s another episode I put

out on my podcast with the kind of five

biggest lessons that I learned from

going through this capital raise

experience from the teamwork and all

that. I’ll um for anyone watching this I

can link to that. But um you know that

was quite a journey. It was quite a

journey. It was it was uh about two and

a half months from launching the offer

till finishing funding but another month

and a half of preparing and getting all

the structure in place. So I mean I

don’t know. I feel it was an equal

amount challenging but more importantly

rewarding because the end result is that

now we’re here one giant step closer to

making this thing happen. We’ve got the

right people on our team executing on a

day-to-day business and then we also

have investors that we’re really proud

to have on the team. So yes,

just um you know more than anything want

to celebrate that milestone and um and

take a moment to to thank anyone who’s

who’s been involved so far. Whether

you’re following along, whether you

invested with us, whether you’re on our

team, uh we are very grateful for you.

Yes. Thank you so much and thanks for

tuning in and we’re looking forward to

doing more of these.

Catch you next time.