Dan Peña - 50 Billion Dollar Man Dan Pena QLA - Quantum Leap Advantage Advanced Part 5 (Audio)

Key Takeaways

and he's also be able to build this and let us sell to you forget yeah I think so that something may be wrong with the product developer which is mostly the timing and general tab so it's an awesome pressure what you get if you have any develop but I mean I'll just so many companies as go broke and then you have a project even a small amount and you take possibly and you have a whole mess and what you ever thought I mean yeah that's right an entire party investment money that you put in is now with the guidance in liquidation a reorganization and investors the limited liability partners are look to you as general partner in the large partner how did you let this go bust and why did you do indeed evidence I mean how did you get this guy the money those reasons are you have to know every number no dumb so that you can control it through happening so what's happened that you get sure you don't pay too much at any time but little bit less so if the guy you who builds it gets broke you have enough over to do it another way yeah fun so that another like one of them so so just have to cut my hair this looks like a deal of eternity twenty thirty percent equity before banks going to enjoy with real prices realistic prices for a three percent equity so what you really need is you need you need the person that's going to hear that piece of paper that's wanting to put of 23% not just some loosey-goosey letters to get the contract on the government 70 going to put a twenty thirty percent and then again they don't read you maybe maybe maybe ten percent if you Scott the real price oh yeah that's what I'm sayin or what I you what I ok giving the real price on it's a square meter price construction adjusted you're probably right across from every way but if you just compare and I did normal normal real estate investment you will give a [ __ ] on the square meter price for example shopping simulator so you take what's coming in how safe it is coming in and what's the relation to the bike to the price a i buy it for but there are the tuna rental income you really do want to make develop a happy the bank is in fear if it's paid too much that you get a lot of equity for your bubble deal and the energy will not be this year so it's all the risk of the bank they able to bring our financial risk on the bank if you look if you look at the value of your body you know that's not the cash flow but their energy property look at what it is worth if it was vacant and the question which I think wasn't answered it seems to be built on a military base or very close to military base so incredible if they asked if they were to move out after 10 years but the military base continues with the current capacity and I'm not even sure where the civilians would want to live or whether the Americans would want to billions to live those originally this is a huge entertainment center I ever contact with me which is son love but needs to be look at the other body of the military base in the Apostle and we want to rent the roofs for photo metallic again and every single building that's about the roofs will be about twenty thousand square meters and a little more and not a single house national of the worst case scenario if you if you want to buy something which is really really expensive to build there's there's an offer that ammunition depot of the East German army it costs about fifty million to build into the rock and you can buy for less than 2 million you know if somebody has to values wait for data storage to so valuable because other governments have looked at it putting their gold reserves into their it can be one of the best deals you can make to buy this it was across more than 50 million to build it entirely secure you even have drained Alliance going there you know it's perfect fast you know the bank will say well what is the other use for it and I think I don't get to check what it's worth immediately 20 million or 50 million or it's not worth anything I doubt kitty today by pale shades and mansion outside Santiago Chile a number of years ago and when he was still alive and it costs at that time the 35 or 40 million dollars to build it was on the margin of three million and it had the railroad at era runway for him and it looked like a German fortress and it was ah I loved it and I said well you know how has he been on the mortgage monomeric five years under move his body says because off the record nobody can buy it because who then I finally panel [ __ ] owns it he owns over the company's not supposed to own but it's his house it's is that for him to retire because he figures when he retires man to fight off the peasants so when he was right about that but ended but I mean I here in terms of what the dollars were then I was buying time for three minutes that would cost 50 to 70 million to build and but I couldn't buy an abiding but in this case is just the opposite and there's a lot of deals across Europe especially in Germany or not going east there are old military bases and this is going to be native people of em to live here and and the reason why these things are snapped off the ground is because of all of the things that we brought up is always the chicken and the egg and anybody that would put up if I would put up to twenty or thirty percent based on even these numbers or even maybe on ten fifty percent based on real numbers I mean hippie Jordan doesn't bring anything any value to the deal it's not this is nothing there the developer doesn't a him what's the government contracts in the development go straight to the straight to the government contractor or the government and I mean it just doesn't and because of naivete an experience the people that are having handling the deal now and because the position you used to have when from the guy that he work for the drop dead I mean the he happens to be there for some some period of time but somebody's going to wake up and when I told them if they're not talking to more than just view they're idiots they're idiots okay we're going to do another role play the situation has changed a little bit first before I say what the situation is because whoo-hoo if anybody wants to be there deal against a nun against but to a banker and we've done in the past what I have a minute okay what I understand well this has been on purpose so far my goddamn accident I have some control over the class okay um I'd be happy to be adventure to all American front of people super something oh yeah okay well one at a time one of them we're going to let your be a banker he's at least likely banker but that's why we're gonna let him do the bank he's the most like a crooked banker so we don't want your big book about us young and yeah envelope and we want you to don't pretend that this is a 75 year old woman okay you can say why would you wear that the move okay so you have sent em for synth aback your your executive summary you said the bank the dream team they're lending in your phone on your particular area and they are interested baby speaking in your project and you have your sentence tough and you've taught them a couple times in the bone and now but you're in your past the airmen process they have actually said they were interested so now you're going to pitch the deal this is not your interviewers you're picking leg know that you're pitching the deal to more than one bang you're talking to them because you've got three years to asians since you were this is bjorn is the first challenges your come here first okay there is one small problem I don't have a realistic deal we try not to the banks I mean oh well nothing about your life is real estate it's our dream okay that's why I grant that I churches who know yeah we want me to invent something like for example I want to buy you a glass of casual in case you ever you want it's your time why don't you buy a castle in scotland absolute [ __ ] yeah okay there is no cash flow is such a power get my i have you have time to do you think about the deal because we are really interested in moving very fast with other transaction and as we speak before we have to decide upon what bank matches our our interest and diamond tool to support and make it in the oven convection you can have what was the last year with it there are now and I talking about right now they hassle excellent yeah it was Colin okay I find that and so what is there is the current situation with that well I'm sure you have looked a couple of times of the numbers and you said that you are interested in doing video and I mean we already are a final book we have to pick there is a Korean back that we want to deal with okay and we looked we looked at the assets and we are not quite sure right now that the valuation you brought across means with our needs for the securitisation so what's your what's your collateral ization idea for that that's deal well the authorization I mean as you as you probably looked you don't get into the papers you have seen every every dito the authorization of it will be brought first of all by the reputation or board second of all I mean we will have some characterization ten percent of the castro you know and you know as the real estate market right now is either come forth i need me to get up and castle me we don't have you have scatters discontent but there are not so many I'm sure you realize the addition is a very important when ya SS man and Margaret for his castles if we don't return pants put him that's something going wrong with your disco heaven we see from the video you you sent us it's not matching our understanding of the various or the actual we are putting some some production on your area so we have now variegated on about sixty percent of the purchasing clasps acquisition price for the time is passive looking for so we have to close this way of you as we do for injectable the right person who takes a decision here right yes I know back right yes and I mean you have seen the deal how much money can you and I mean what's the maximum one that you can learn for days like this I can tell you right now we can with your asking for 10 million euros oh no no no I mean I'm from farmers eye-popping market and so the valuation we can the collectivization for this property is only 1.5 so what are you willing to bring across for the gap of 4000 ever for a 500,000 there is 0 for 4 from total euros what do you should work what was the last thing you're asking us to get 2 million and the value will be where you are this probably says it at one point five so we have to find a way to get this 500,000 security in that well the thing is this I mean this is the dual application and already there are many banks interested because I mean they see the value of the of Israel and they say the upcoming students of deals that we are to come and concentrate right now everybody has out of cash and everyone is scared to do anything with them I think you can see that it is one of the best deals you will probably you know CEO crawl across like this this period this is one of the best years and I mean the whole characterization I think it's more than us because the value of this cross castle I I mean as you can see it's a lot higher than they start one can predict I mean you know everyone camera it has put a bad friend on a project and essay report assemble the variation on the castle was done by a Romanian company and this is especially cancer of expertise from shopping and he says 115 your guys school you think you understand you have to understand my position minus percent 145 yards what we have to take this so to make the cross at the point of the point clear you have to figure out the wave if we want to be sure we want to its ability and we come to the casual after that but you have to find first off we have to find a way to fill this gap 500 hours in college or zation you can you can bring don't know do your blue your ideas do your thoughts on this come back with any ideas we are have to get it means not to be funny it's okay find a way and we can speak about a lot of forms with security the second question is I had a look at we had to look at your business plan or here at your rough numbers and we are not agreeing with your deal that you can pay this money back that fast your you explain to me you're saying the alonis advertising throughout five years and we strongly disagree with that what's your opinion and well can you show me the last free business plans or running scenarios that get accepted I mean in this area of activity can you give me those so I can ever be yes we find some castles and based on these experiences I can Syria what can you give me those reports please no why should i because you know the month because we did the business and friends and you are talking about but yes this as well dining as I said I mean I'm always already and trying to find to form relationship with a couple banks so I want to see what type of business plans get accepted by this by your bank and if it's a good match for our deal no sir so if you want to to to get on the same when the same position you know to have a perfect match so this is why I'm asking for this business pants so this is the first year we already why we never get us done despite everything right the executives you know you know everything Doug of my addition I said to correct yes but if you have the experience like I read in the name was you should have simply bank not a good break it tries to fight i'm in my room semi-random exit understand I mean next next vid go through someone else you know and just putting on the weight i mean is right there that's an analyst I mean I wouldn't know Kuwait and go to not one okay if you will have to see you will have some computational presentations but don't make a steady diet of computational presentations with financial institutions because not because I give a [ __ ] that you have occasionally but you don't get in the habit because then you're going to find a bank that's really on your side but he or she asks hard questions which is ok but then you'll be going to get competition when you shoot yourself in foot and so so don't get a computationally these guys the normally left left let the banker vent his spleen let him say what he doesn't like about the deal but I normally start by saying well what did you like about what do you like Pfeifer on three what do you like because it's very difficult if he says first of all he says he feel like anything we needed over okay but he says what does he like what do you like about it and you let him go through the list and then I asked normally at least two more times and what else did you like about it yada yada yada yada and what else did you like about it maybe that so now you got to stand two or three times you liked it for these various reasons okay I'm a feeling some of you couldn't give away a sex in a [ __ ] lumber camp but I mean this is a selling process does that does that translate to german not give aways cannot give away a [ __ ] to a bunch of lumber chance does that translate I think they good yeah this is what I know you cannot give away sex yeah okay okay even if those early blondebusty good yeah you couldn't give away sex I mean this is for selling process nothing to get your the banker this year but I mean it's a sterling process okay so heavy show because you couldn't see out of reach in the desert yeah correct yeah this is the trouble I've had all [ __ ] big buddies Germany Germany now we're the Chinese guess vassiliou god bless you I mean because they don't understand a difference it there's a how much shipping rooms than either but because the day these guys take literal translation but they're one step behind a little translate to the Chinese so I would have been interesting between the two groups to try to we might have to have an eight-day seminars and invited but you sell benefits you're selling benefits the benefits for the bank are it's a good solid credit and you're almost positively going into money back the benefits of the fan you've got a strong Board of Directors management team that's locked in step just like the goose-step locked in step everybody's going to the same direction pull in the same direction with a lot of experience you're selling the benefits that you always paid back the bank's you're selling the benefit that if it's a reasonable except for Bjorn it's a reasonable valuation okay you're set you're selling the benefit that you're going to have an exit very few banks want to be 20 30 via your paper okay this is a residential house or of a commercial building you know you're going to be we're going to be out in five years seven years which means they're their picture of potential problems is going to be short and if you're the middle of a cycle you probably get to the next side 157 years so these are the benefits okay at yes well those means is the setting process it setting means advertisement them without but does that mean well I guess your advertisement is you shed a letter or email you send them the board of directors you send in the cds of some powerful guys you're right it is a selling process I told you from the very beginning the reason why I'm so successful because I'm a world-class salesman that's lifted his sales abilities to you know hooking governments in very old and big financial institutions because i'm selling and I'm not afraid to call myself sales me you know some people say have a market here but I don't like that you know that's what Abraham is I'm not now I'm a Salesman so I sell benefits and I sell reduced risk not absolute really reduction rest by reduced risk so that the probabilities are this is going to be a good credit good credit meaning no no hassle pay back the money when you're supposed to pay it back John Darren how did you in your career figure out when to bridge the gap between pitching capital raising capital versus managing the greatness and resources and a little company being a part of that why I never been to get designer from Angie assets of Great West initially I had I had a super world class board of directors that knew more about door buzzes than I did with one exception cover he carried you know much about their own business but I had a operational guys as a former controller CFO of belvoir which words jenna chevron i have a former controller of british petroleum i had former head of exploration of Texaco I had you know I had a smart guys that understood I'm fit with our head geologists and geophysicists making a big backgrounds too so they managed I never managed I was always selling somebody something to looking for videos I was selling mrs. Rufus from Bremen I'm 777 eat or are on the gas rights in the North Sea that she got from the fourth person World War and then going to selling some financial institution even money to develop it so I never managed anything I never a better managing anybody in this [ __ ] room but I mean that's because I've been added 39 years and I've seen all the things you can you possibly wrong in management so I don't have way to step in you know it's like I told you there you go how do you know this is going to happen because ninety-five percent probability didn't [ __ ] it up so why allow you to [ __ ] it up when I can step in and in fix it the corollary to that is we don't I don't allow you to sink the ship by taking a bullet or a shell below the waterline I hi to take kids above the bottom line because that's how you grow as a manager otherwise I always going to have to be there I'm a lot of my son Robert some of my emails my son has been going back and forth with mackynzie knees first people in Shanghai and I would have done it that way but i'm not going to correct him under the scent of the email but i didn't copy me on everything so every time he says I'm a bionic op happens me he expects an answer he I mean he put shakes until few days passed and then you don't hear for me a lot of times I'll wait a month and I trick [ __ ] you and I ask you a question for five weeks ago thinking that you think I didn't look at it and then you paste a bunch of other decisions based on the fact that you can hear from me and all those other decisions are wrong but I want an item of the students that are wrong if it's going to sink the ship you may have to do some cleanup but you remember you're always something that better than a Bible swing to them you remain at kids they remember that the mistakes they made and the things when you say I want you to go apologize to mr. message tone for breaking the window or go apologize for your Suzy Q's e4 you know kicking early ass or whatever the thing is you remember that more so you remember you clean it up and you know rectifying your own errors better than your parents my dad my dad never glinted fix anything he made me go fix it then he beat the shouting he beat the SH out of me first I went to pitch to Dave if you shout at me again to make sure that I was was rocking concrete that I shouldn't do that again I was found new ways to [ __ ] up and so he found you know but though but I didn't have to do the same thing again [ __ ] up the same way again so it's not a matter of management's about a sound you just how the benefits you know the benefits of the castle are you know it's you don't know this but the benefit is awesome it's the only council to compete for murder people in it's not hotel in central scotland a fan of this castle is that it's already been renovated twice's fully heated fully this that another thing you know you have to put all that money it's been rebooked we plumb required those are what they want to hear because then I'm going to say ok this is in your office and operating budget you know you've only got your expenses that you know fifty thousand pounds a year for fixing things when it should be about 350 but because I did all those things so those are all benefits of the bank puts into the formula and say well Lily she doesn't spend money on this all the roads have been tarmac when I got here all these parking lots of and tarmac before it was his money when it raining this mitten count the bidding was it here you know and it's the state-of-the-art the hull property spudich that's the benefit it's a benefit for not only security but for aesthetics it's a benefit that I mean this is this a secure place people can come here and some people do I'm here because it can be perfectly secure you can't get in you know there's only two ways in and out and they're both electric gated and if you really want security we put in you with regards everything and we have four guards around the perimeter I mean vented is it it's 115 acres of manicured estate most of these days it's only the five acres of the three acres around the castle it's a benefit that we have a wall garden filled by the Benedictine months in 1619 that is a storm monument and you sell the benefits of your deal now true some of your deals don't have any [ __ ] bed if you think the bugs then you're going to put money in your [ __ ] pocket those are tougher ok so the only way this is Sean you haven't that you ready to picture deal is so ok step on your sitting right there you're the bad her on set something up grounders up again Sean's already sent out the letter to fight to end another city that later female the executive summary the vision statement the resumes of the board of directors he's already told the banks that he's interviewing he's already now gotten down to two or three banks that are interested in his his prospect project he's now going to meet Stefan who has the leading authority he's with a bank that likes the general area and specific area the Sean involved with and now we're down to here the specifics of the actual deal