Latest / Carson's Corner: Entrepreneurship & Investing / Real Estate Insurance, Syndicated: How Owners Can Get 30% Back with Nicolas Lares

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Real Estate Insurance, Syndicated: How Owners Can Get 30% Back with Nicolas Lares · Carson's Corner: Entrepreneurship & Investing

• 0:00
  SPEAKER_02: People don't realize, sir, you know, insurance companies do a really good job of making you think when they pay out claims, they lose money.
• 0:07
  SPEAKER_00: Today's guest is Nicholas Lares, founder of Insure Three Tech, revolutionizing real estate insurance and helping investors rethink risk, reduce costs, and protect their bottom line.
• 0:17
  SPEAKER_01: So explain like the core thesis behind a product.
• 0:20
  SPEAKER_01: You're basically like a co-op or they co-invest.
• 0:23
  SPEAKER_01: Part of their premiums, they own a piece of the company.
• 0:25
  SPEAKER_02: Yeah, they they pretty much own the profit that the insurance company generates at the end of the year.
• 0:30
  SPEAKER_02: Instead of the asset being a piece of property, the asset is an insurance company.
• 0:34
  SPEAKER_02: Our shareholders are technically simultaneously our customers.
• 0:37
  SPEAKER_02: If there's any additional left over at the end of the year, it goes right back to everybody who gave it to us.
• 0:41
  SPEAKER_01: Your tagline on your website is real estate insurance syndicated.
• 0:45
  SPEAKER_01: 20% average decrease in insurance costs, which is a huge deal.
• 0:49
  SPEAKER_01: Over a million plus doors insured?
• 0:52
  SPEAKER_01: That's a lot of doors, man.
• 0:54
  SPEAKER_02: So we're actually projecting about a 32% return to our customers this year based off of every dollar paid in.
• 0:59
  SPEAKER_02: That's a huge deal.
• 1:00
  SPEAKER_02: Once they get their first profit distribution, you can go to your friend and say, Hey, did your insurance company send you a check back this year?
• 1:05
  SPEAKER_02: You got the tenant paying insurance.
• 1:06
  SPEAKER_02: You got the owner paying insurance, you got the operator paying insurance.
• 1:10
  SPEAKER_02: Everybody who steps foot on your property pays insurance.
• 1:12
  SPEAKER_02: We have figured out a way you can end up retaining a profit margin at the end of it.
• 1:15
  SPEAKER_02: People ask, well, if you're giving the money away, how do you guys make money?
• 1:18
  SPEAKER_02: Insurance companies make money.
• 1:21
  SPEAKER_03: Welcome to the Carson's Quarter.
• 1:25
  SPEAKER_01: Alrighty, I'm sitting here with Mr.
• 1:27
  SPEAKER_01: Nico Laris.
• 1:28
  SPEAKER_01: He is uh in the insurance business for multifamily.
• 1:32
  SPEAKER_01: It's a unique model that allows you to own a piece of the company.
• 1:36
  SPEAKER_01: Your premiums go into ownership of the company.
• 1:39
  SPEAKER_01: Am I right, Nico?
• 1:40
  SPEAKER_01: How are you doing, man?
• 1:41
  SPEAKER_02: Yeah, I'm doing great.
• 1:42
  SPEAKER_02: Yeah.
• 1:42
  SPEAKER_02: And we do, I mean, everything in real estate, not only just multifamily.
• 1:46
  SPEAKER_02: So, you know, if there's a property that's built and somebody needs to pay for insurance on it, we're uh I'd I'd like to go out and say probably the best, the best product out there on the market uh for anybody who's in the game.
• 1:57
  SPEAKER_01: So explain like the core thesis behind your your product.
• 2:02
  SPEAKER_01: You're basically like a co-op or they co-invest, or they so part of their premiums they own a piece of the company.
• 2:08
  SPEAKER_01: Am I getting that right?
• 2:10
  SPEAKER_02: Yeah, they they pretty much own the profit that the insurance company generates at the end of the year.
• 2:15
  SPEAKER_02: So if you look at, you know, like a syndication fund, right?
• 2:18
  SPEAKER_02: You get a group of LPs, they put their capital together, and they go out and they acquire a piece of asset.
• 2:23
  SPEAKER_02: At the end of the day, whatever profit that that asset generates at the end of the year, the LPs get a profit distribution based off of the pro rata capital they put in, right?
• 2:33
  SPEAKER_02: We're doing that same exact structure, but instead of the asset being a piece of property, the asset is an insurance company, and everybody's capital contribution is essentially just whatever premium that they pay to insure their own buildings.
• 2:46
  SPEAKER_02: So the money is virtually stays in-house and it's almost like a closed loop structure versus the current model today with the traditional insurance company, you give your money to an insurance company, whatever's left over, they give to their shareholders who are not you.
• 2:59
  SPEAKER_02: They're somebody else.
• 3:00
  SPEAKER_02: In our structure, our shareholders are technically simultaneously our customers.
• 3:05
  SPEAKER_02: So the money our customers give us, if there's any additional left over at the end of the year after claims and expenses are paid, it goes right back to everybody who gave it to us based on the amount of premium they paid in collectively as a whole.
• 3:16
  SPEAKER_01: So your tagline on your website is real estate insurance syndicated.
• 3:21
  SPEAKER_01: So it's basically like, you know, we own this insurance company together with the property owners, basically have ownership stake in the insurance company that's insuring them.
• 3:32
  SPEAKER_01: Um fascinating stuff is um the biggest probably tagline is 20% average decrease in insurance costs, which is a huge deal.
• 3:42
  SPEAKER_01: Um over a million plus doors insured.
• 3:45
  SPEAKER_01: That's a lot of doors, man.
• 3:47
  SPEAKER_01: That's getting up there.
• 3:49
  SPEAKER_02: Yeah, no, it's uh it's it's one of those products where it kind of catches uh like wildfire once we got our first customers on the book.
• 3:56
  SPEAKER_02: It um it really is just spread by word of mouth.
• 3:59
  SPEAKER_02: We don't do a lot of marketing like all these big insurance companies do, where we're buying the you know, naming rights to stadiums and buying up TV ad slots.
• 4:06
  SPEAKER_02: All of our growth has really been organic from our customers, where once they get their first profit distribution, I mean, you can go to your friend and say, Hey, did your insurance company send you a check back this year for having no claims or good performance?
• 4:20
  SPEAKER_02: And if not, you know, talk to this guy.
• 4:22
  SPEAKER_02: He's gonna make sure you can do that.
• 4:23
  SPEAKER_02: I just got my my check sent to me this year.
• 4:25
  SPEAKER_02: Check this out.
• 4:26
  SPEAKER_02: Yeah.
• 4:26
  SPEAKER_02: Um so you know, big marketing push that I'm gonna make on my end is just having all of my customers just post screenshots of their profit distributions at the end of this year and hoping it goes viral on social media because once you know, once you become a co-owner of an insurance company and you start to think like one, your first thought becomes who else do I want to insure myself?
• 4:47
  SPEAKER_02: So if you're in real estate and you're part of our captive program, your first thought becomes who else do I know in my network who's a low-risk operator who doesn't file a lot of claims when it comes to insuring their buildings?
• 5:00
  SPEAKER_02: And how do I make sure they join my captive?
• 5:03
  SPEAKER_02: Because the more people we have and the less claims we file, the higher our profit distribution is going to be because everybody is incentivized to essentially have a good year every year through our model.
• 5:13
  SPEAKER_02: So it's one of those things where it's just it grows on its own.
• 5:17
  SPEAKER_01: That's awesome.
• 5:18
  SPEAKER_01: So it's it's like one of those things, it doesn't make sense to advertise to the masses because if you play a Super Bowl ad, it'll cost you millions of dollars when you're looking for this little niche of real uh commercial real estate owners.
• 5:30
  SPEAKER_01: Um the good part is is I know a lot of commercial real estate owners.
• 5:34
  SPEAKER_01: Um, is there a you know, obviously the bigger the property the better, or is that not necessarily true?
• 5:41
  SPEAKER_01: Will you do like little five apartment, five unit apartments, or you know, what what what's the size or you what kind of sizes are you guys insuring out there?
• 5:51
  SPEAKER_02: Yeah, no, that's the first question typically people ask.
• 5:54
  SPEAKER_02: You know, people are familiar with captives and and self-insured programs out there on the market, but everybody has the connotation or the pre-existing idea where I'm not big enough, I don't spend seven, eight figures a year on insurance, so this isn't a good fit for me.
• 6:06
  SPEAKER_02: I've tried, doesn't work.
• 6:08
  SPEAKER_02: Um, for us, our model is a bit different because we don't have technically any minimums.
• 6:13
  SPEAKER_02: In a group cell captive structure, you don't need to be large enough on your own to become your own captive.
• 6:20
  SPEAKER_02: We already have existing captives that you essentially just join as a pro rata member.
• 6:24
  SPEAKER_02: So you're already joining an existing captive.
• 6:27
  SPEAKER_02: You don't need to be large enough on your own to set up your own independent cell.
• 6:30
  SPEAKER_02: Um, and you could still participate in the upside of the insurance model by joining an existing group cell.
• 6:36
  SPEAKER_02: So, me personally, I'm just getting started on my investing journey.
• 6:40
  SPEAKER_02: I own a townhouse in South Florida where I'm originally from that I rent out, and I pay$2,000 a year in insurance, and I insure my property in this very captive that I have other people join alongside me.
• 6:51
  SPEAKER_02: So there is no minimum.
• 6:53
  SPEAKER_02: Um at the end of the year, right?
• 6:54
  SPEAKER_02: That$2,000 I spent is going to come back.
• 6:57
  SPEAKER_02: About$600 is gonna come back to me at the end of the year as a form of check this year.
• 7:01
  SPEAKER_02: So really excited to get that in, but there's no minimum.
• 7:04
  SPEAKER_02: Um we don't shy away from any property type, and and the goal is just to get as many people on that we can.
• 7:10
  SPEAKER_01: So the so on$2,000 spent, are you saying you get$600 back roughly?
• 7:15
  SPEAKER_01: I know it varies every year.
• 7:16
  SPEAKER_01: It's a cr a profit calculation, but that seems like a lot of money.
• 7:20
  SPEAKER_02: Yeah, this year we've uh we've had a really mild claims year, Greg.
• 7:23
  SPEAKER_02: Thank God there hasn't been a lot of hurricanes that have come and hit coastal uh markets this year.
• 7:28
  SPEAKER_02: So we're actually projecting about a 32% return to our customers this year based off of every dollar paid in.
• 7:34
  SPEAKER_01: That's a huge deal because part of the reason why insurance claims have gone up so much, especially along the coasts, you know, areas like Texas, Florida, and other places is, you know, natural disasters.
• 7:47
  SPEAKER_01: Um that's one of the reasons.
• 7:49
  SPEAKER_01: There's other reasons as well, but um anything to get those insurance costs down, especially for multifamily operators, there's a lot of uh underwriting that's going on right now that's really, really tight.
• 8:03
  SPEAKER_01: Um, there's multifamily operators that are in trouble.
• 8:06
  SPEAKER_01: You know, there's other operators that are trying to get a deal to pencil where, you know, if you have insurance cost on scale, you know, a lot of my people are doing uh probably I'd say the average is between ten and fifty million dollars.
• 8:23
  SPEAKER_01: I don't people usually don't stray up around a hundred million unless it's like I don't know.
• 8:29
  SPEAKER_01: They they will, but it's just become such a big capital raise.
• 8:33
  SPEAKER_01: And then uh on the disposition side it gets really tricky as far as selling when it's a little bit smaller, like stuff that's around you know, ten to thirty million, it's a lot easier to sell.
• 8:44
  SPEAKER_02: So totally anyway and that's exactly our sweet spot too.
• 8:47
  SPEAKER_02: I mean, if you you know, if you think about it, we we really don't want to be insuring these luxury high rises in the heart of downtown areas that cost hundreds of millions of dollars because I mean, one, it's a lot of exposure, right?
• 9:00
  SPEAKER_02: We don't want to be insuring those buildings where God forbid one of those things comes falling down, that's taking a big chunk of our profit distribution at the end of the year for our customers, right?
• 9:09
  SPEAKER_02: So we like to really stay diversified.
• 9:11
  SPEAKER_02: Our sweet spot is really that$10 to$20 million in TIV per property, where if, God forbid, you know, that goes down, that's not going to significantly impact our profit distributions at the end of the year because it's diversified enough and we're spreading out our risk um accordingly.
• 9:28
  SPEAKER_02: So, you know, when we're when our whole product is based off of you know delivering returns back to our customers, we try to do everything we can across the board to make sure we can deliver that.
• 9:37
  SPEAKER_02: And and by staying away from really those multi-hundred hundred million dollar buildings is a way for us to do that.
• 9:42
  SPEAKER_01: Yeah.
• 9:43
  SPEAKER_01: What about like triple net uh properties?
• 9:46
  SPEAKER_01: Are you you guys getting into much of that or industrial?
• 9:49
  SPEAKER_02: Um Yeah, so the background, you know, our our first product in the market on the captive side was a resident insurance captive.
• 9:57
  SPEAKER_02: So, you know, if you're in the multifamily space, every resident who moves into your property should carry, you know, a hundred thousand dollar limited liability policy.
• 10:05
  SPEAKER_02: So if they light their kitchen on fire, they have an insurance policy to cover it and it's not coming out of your pocket or your own insurance policy to respond.
• 10:13
  SPEAKER_02: So our initial product to really prove out that, hey, there isn't a lot of money to be made in insurance that flows through real estate.
• 10:21
  SPEAKER_02: Here is a way to dip your toes into the water as a landlord and owner or property management company where we can take the insurance premium that every resident in the asset that you own or manage, instead of having them go and pay in State Farm, Lemonade, Allstate, we're gonna have them pay our insurance company that you are technically a co-owner of, right?
• 10:42
  SPEAKER_02: And all the money we collect from residents that are on your assets are gonna go to a pro rata stake in that insurance company's profit at the end of the year.
• 10:50
  SPEAKER_02: So right, once we brought on, you know, 50,000 residents, we were throwing around significant amount of money where that product itself generates about 60% profit margins consistently every year.
• 11:03
  SPEAKER_02: So every$10 that your residents spend every month on renters insurance, whatever insurance company they're paying is generating five to six dollars a month in income after claims and expenses are paid for in income annually.
• 11:17
  SPEAKER_02: It's consistent, it's steady, it renews every year, and it's a great business model.
• 11:22
  SPEAKER_02: So what we did, we just instead of that money going out to third party carriers, we kept it internally, right?
• 11:27
  SPEAKER_02: That's where the captive model comes from.
• 11:30
  SPEAKER_02: We capture those insurance dollars, and instead of them going to third party carriers, they go back to our owners and our property managers instead.
• 11:37
  SPEAKER_02: So once we proved out that business model, people got very comfortable and realized, wow, insurance does make money.
• 11:43
  SPEAKER_02: There's a vehicle where I can capture it myself.
• 11:45
  SPEAKER_02: I don't have to rely on a third-party insurance company.
• 11:48
  SPEAKER_02: Where else can I retain more dollars?
• 11:51
  SPEAKER_02: Right.
• 11:51
  SPEAKER_02: And next step was boom, property insurance from there.
• 11:54
  SPEAKER_02: Um, the next segment we are going after is the tenants themselves.
• 11:58
  SPEAKER_02: So not only can we insure residence and multifamily properties, we can insure properties themselves, multifamily, commercial, and single family residential.
• 12:07
  SPEAKER_02: Now we're also going to start offering, you know, your typical gender liability insurance policy and on your triple net deals, offering tenants their insurance package right within their lease.
• 12:17
  SPEAKER_02: So the owners of those buildings, I know they charge back insurance right now, but now we're creating a vehicle where if their tenants perform well, they don't light their, you know, their kitchen on fire if they're in a restaurant and there's no claims, that's going to show up as NOI at the end of the year to the property owner themselves.
• 12:33
  SPEAKER_02: So it's a really great business model.
• 12:34
  SPEAKER_02: Once you start to really unravel, you know, you look at a single asset, you got the tenant paying insurance, you've got the owner paying insurance, you got the operator paying insurance, you got the contractors and service workmen who come on site to work as well.
• 12:48
  SPEAKER_02: Everybody who steps foot on your property pays insurance to essentially interact with you.
• 12:53
  SPEAKER_02: We just want to figure out a way, and we are, we have figured out a way where all of those parties that interact with your assets, you can end up retaining the profit margin at the end of the day.
• 13:02
  SPEAKER_01: I like that.
• 13:03
  SPEAKER_01: Let me um mute this.
• 13:05
  SPEAKER_01: I want somebody to call in someday and we close a deal on my party.
• 13:10
  SPEAKER_01: The first time feed, what are they calling about?
• 13:14
  SPEAKER_01: And it's usually the same person or two that's calling me.
• 13:18
  SPEAKER_01: I'm waiting for like, oh yeah, let's get them and we jump on a call together.
• 13:22
  SPEAKER_01: And we can do that.
• 13:25
  SPEAKER_01: Um how about uh you can do 1.5, how about do uh 1.6 and we'll call it a deal.
• 13:33
  SPEAKER_01: Close them right there for podcasts every month.
• 13:36
  SPEAKER_01: So um I'm pulling up your website.
• 13:39
  SPEAKER_01: It you guys have done a lot of things.
• 13:41
  SPEAKER_01: Um you know, you're you have a lot of uh customers that are you know high high profile.
• 13:52
  SPEAKER_01: Am I reading this right?
• 13:53
  SPEAKER_01: Like uh AWS, maybe the NFL, or are they on here?
• 13:57
  SPEAKER_02: So those were those were previous customers.
• 14:00
  SPEAKER_02: So I got my um my experience in the insurance world by working with the Amazon's logistics network.
• 14:06
  SPEAKER_02: That's where I came from.
• 14:07
  SPEAKER_02: We have other team members who worked with other large corporations and organizations on their risk management team to essentially build this exact model for those companies, right?
• 14:16
  SPEAKER_02: So my skin in the game in insurance, I was insuring anything that had an Amazon logo on it and wheels.
• 14:23
  SPEAKER_02: My agency that I worked for essentially was contracted by Amazon to offer an insurance product for those vehicles and those risks.
• 14:30
  SPEAKER_01: Gotcha.
• 14:30
  SPEAKER_02: Lo and behold, yeah.
• 14:32
  SPEAKER_01: You have FedEx on here and some others, you know, all those vehicles and stuff.
• 14:36
  SPEAKER_01: That's a pretty tricky model to build.
• 14:37
  SPEAKER_01: But go ahead.
• 14:39
  SPEAKER_02: Yeah.
• 14:39
  SPEAKER_02: But you know, very similarly to what ended up happening in the Florida, California markets, where a lot of traditional carriers that were in the space before decided to back out and say, hey, this is too risky of a model for us.
• 14:51
  SPEAKER_02: We don't want to operate in here.
• 14:52
  SPEAKER_02: Um, there wasn't a government or state-backed program who was coming in to save Amazon's logistics network.
• 14:58
  SPEAKER_02: So we had to essentially go and build them their own insurance company.
• 15:02
  SPEAKER_02: Right.
• 15:03
  SPEAKER_02: So once we did that, and I learned a whole other world of insurance that most brokers today have no idea even exists.
• 15:10
  SPEAKER_02: Right.
• 15:10
  SPEAKER_02: If they're with farmers or travelers or state farm, they sell a product that somebody else makes for them and then they sell it to you for a higher percent or amount of what they get it from the carrier for, right?
• 15:20
  SPEAKER_02: That's how it works.
• 15:21
  SPEAKER_02: They earn their 10 to 15% spread and they keep renewing your book every year.
• 15:26
  SPEAKER_02: Um, with us, instead of doing that model like I was used to, I had to go to my customers and say, hey guys, there's no one who wants to insure you, so we're gonna put you all together.
• 15:36
  SPEAKER_02: Your size, you can be large enough to be your own insurance company, and that's exactly what we did.
• 15:41
  SPEAKER_02: We started putting all our customers together.
• 15:43
  SPEAKER_02: We were collecting, it's about$300 million in premium across all of our logistics companies at the time.
• 15:48
  SPEAKER_02: And lo and behold, at the end of the year, they only ended up using about$200 million on average for claims and expenses.
• 15:55
  SPEAKER_02: So our customers were getting 30% of their money back.
• 15:58
  SPEAKER_02: And they came to me after we built it and said, We are so pissed off that you took five years to do this for us.
• 16:05
  SPEAKER_02: They said, if we could have started this model from day one, our our NOI for our company would be drastically different.
• 16:13
  SPEAKER_02: Um, and ultimately they said, Right, thanks.
• 16:15
  SPEAKER_02: This is the best thing we've seen.
• 16:17
  SPEAKER_02: And I just got so much, I mean, it's it's really fulfilling when you go from just selling something to somebody where they have no stake in the upside for it and it's just uh pretty much lighting their money on fire if they don't file claims.
• 16:29
  SPEAKER_02: Obviously, yes, it's a pooled risk structure, so somebody is using the money if you don't, but at the end of the day, if you give somebody the upside and a reward and a mere a more fair model for what a product they feel like they really just hate dealing with every year, it really changes the dynamic and how people approach risk themselves and view it as a customer.
• 16:50
  SPEAKER_02: You know, if you tell somebody, hey, if you don't file claims and I'll give you some of your money back at the end of the year, the next time a minor claim comes around, you're gonna think twice and say, hey, you know what, maybe I don't need to file this with my carrier because if I don't and everybody else who I who I'm working with doesn't, then we're gonna get money back at the end of the year.
• 17:08
  SPEAKER_02: So, you know, it it incentivizes people to actually file less claims, which translates to higher return for the group as well.
• 17:15
  SPEAKER_02: So it's a really great model where if you just change the incentive structure at every layer, it really starts to act and operate like a totally different insurance company than all the other traditional players out there, which is really cool to see.
• 17:27
  SPEAKER_01: Yeah.
• 17:27
  SPEAKER_01: I know this is kind of um a question you might not want to ask, but how how do you screen out bad properties?
• 17:35
  SPEAKER_01: Like, you know, like we don't want to take this.
• 17:37
  SPEAKER_01: I mean, you mentioned the high rise.
• 17:39
  SPEAKER_01: I mean, there's some properties out there that are just really high risk.
• 17:43
  SPEAKER_01: I mean, yeah, you know, like a high rise in Miami that's right on the coast, it seems like that might be pretty high risk.
• 17:49
  SPEAKER_01: I mean, you know, there's gotta be sort of there's gotta be some sort of rejection.
• 17:54
  SPEAKER_01: My house is less risky than rise on the coast.
• 17:58
  SPEAKER_01: Obviously, they pay more, but you know, there's some you don't want to take.
• 18:01
  SPEAKER_01: So, you know.
• 18:02
  SPEAKER_02: Yeah, and we give everybody, right, we price every asset that comes through our underwriting team on a you know, fair risk basis.
• 18:08
  SPEAKER_02: We don't do that whole, you know, volume blanket policy discount that a lot of carriers do now to try and stay competitive where the big guys are technically paying less per square foot than the smaller guys.
• 18:18
  SPEAKER_02: Um, but what we do to kind of combat the fraud and the risk is one, we offer people an incentive to not commit fraud and file claims.
• 18:25
  SPEAKER_02: That's the first way.
• 18:26
  SPEAKER_02: Um, two, we obviously review loss runs and quote people the same way a traditional carrier does.
• 18:31
  SPEAKER_02: So if there is any pre-existing claim activity that's clearly they were just deferring repair and maintenance, they weren't investing enough on the CapEx side to maintain the property, we're gonna obviously either quote that person at a higher level or just reject them up front.
• 18:46
  SPEAKER_02: Um, there are obviously the cases where it's hard to predict claim activity, right?
• 18:51
  SPEAKER_02: Given the weather and you know, climate risk, it's really hard to know who's gonna end up in a bad position one day.
• 18:56
  SPEAKER_02: That's just luck.
• 18:57
  SPEAKER_02: Um, but our business model more so aligns with we'd rather bring people on and then cut the fat as the bad actors like kind of show themselves, um, than to say, no, we're not gonna work with you because we can't predict it, right?
• 19:10
  SPEAKER_02: So that's kind of something that we do where all the claims that we get throughout the year, we have an internal team investigate and review every single one.
• 19:18
  SPEAKER_02: If we find that, hey, somebody's filing a roof claim, but they told us they just redid their roof five years ago, why are why are we building a brand new roof right after somebody came and said, hey, it's a brand new roof and you're asking for a brand new one again.
• 19:30
  SPEAKER_02: That shouldn't happen, right?
• 19:31
  SPEAKER_02: So we do look at stuff like that to kind of catch anybody who's a bad actor.
• 19:36
  SPEAKER_02: And we have the right the right to non-renew people, right?
• 19:39
  SPEAKER_02: We we issue our policies every year.
• 19:41
  SPEAKER_02: So if we come around and find that, hey, you're not rowing in the same direction as the rest of our customers, we're gonna essentially ask you to leave, and hey, that person's never gonna be welcomed back into the program and they're gonna be left in the traditional market moving forward.
• 19:53
  SPEAKER_01: So I mean, you know, for somebody that has a well-maintained property, you know, they have investors, they come in and they're gonna do a value add and repair everything and get all the deferred maintenance caught up and stuff like that anyway.
• 20:05
  SPEAKER_01: You know, it's a great program.
• 20:07
  SPEAKER_01: It's a great program if you're not a cheater.
• 20:09
  SPEAKER_03: Exactly.
• 20:10
  SPEAKER_01: I mean, you know, and and that's part of it.
• 20:13
  SPEAKER_01: I I have, you know, family that's worked in the insurance industry, and it's like, you know, there's probably some that like you're really suspicious about, but you can't really prove that they're fraud.
• 20:23
  SPEAKER_01: So you're just like, let's just it's fraud, but it's like, how do we prove it?
• 20:27
  SPEAKER_01: And you're just like, this is cut ties with it, you know.
• 20:29
  SPEAKER_01: Yeah.
• 20:30
  SPEAKER_02: So for sure.
• 20:30
  SPEAKER_02: And those people, I mean, there's there's a record online, you know.
• 20:33
  SPEAKER_02: I we've gotten some submissions from people where I just Google the owner's name and I've severed five different accounts of of insurance claim litigation on that person's personal name online, and that person, I never responded back to them once they sended me their portfolio info because that's just a that's a walking walking target, right?
• 20:51
  SPEAKER_02: For somebody to try to come in, file a claim on our program, and then leave on to the next carrier.
• 20:55
  SPEAKER_02: So you know, if somebody has a record, it it shows.
• 20:58
  SPEAKER_01: So they yeah, I guess the litigation's public, you know, if they've been at a litigation with the insurer, so you know that's I don't know, that's interesting.
• 21:08
  SPEAKER_01: We look at a lot of stuff like that on the investor side.
• 21:10
  SPEAKER_01: You're like, okay, what kind of litigation has this person turned up?
• 21:14
  SPEAKER_01: But you know, people are like, oh, you gotta do a background check on them.
• 21:17
  SPEAKER_01: I'm like, well, lawsuits don't show up on a background check.
• 21:20
  SPEAKER_01: Most you're gonna find there is probably a DWI.
• 21:22
  SPEAKER_01: Of course, I want to know if they're like involved in like criminal fraud, but you know, typically a background check, you're like, oh yeah, he got caught drinking and driving when he was 25 and yeah.
• 21:33
  SPEAKER_01: But the the public more of the public record, the I mean, you know, litigation records is probably where you find a lot of dirt on people and entities like that.
• 21:43
  SPEAKER_02: And and honestly, more so just I think um, you know, it's one of those one of those markets where birds of a feather kind of flock together.
• 21:50
  SPEAKER_02: And, you know, if I told you, you know, hey, do you know anybody else in your network, you know, who might benefit from working with our captive program and who would want to join, the first person who's going to come to your mind are people Who are good operators and honest people.
• 22:02
  SPEAKER_02: You know, you're not going to want to come to me and say, oh, yeah, I know this guy.
• 22:05
  SPEAKER_02: He filed four insurance claims last year.
• 22:07
  SPEAKER_02: Here's his number.
• 22:08
  SPEAKER_02: You know, that's the last person you yourself are going to tell me about.
• 22:12
  SPEAKER_02: So the fact that you're incentivized on your end, and all of our customers are incentivized to, hey, you know what?
• 22:17
  SPEAKER_02: Yeah, let me think about my network.
• 22:19
  SPEAKER_02: Do I want this person to join my captive?
• 22:21
  SPEAKER_02: Because at the end of the day, you're also inviting people into the into the same bucket that is going to dictate your returns at the end of the year.
• 22:29
  SPEAKER_02: So it's a, again, it's a great way to align incentives across the board.
• 22:32
  SPEAKER_01: There's an incentive to like refer good, honest people.
• 22:35
  SPEAKER_01: Totally.
• 22:44
  SPEAKER_01: And usually most of the time it's not even the work.
• 22:47
  SPEAKER_01: There's usually like a personality conflict.
• 22:49
  SPEAKER_01: It's not even the reason they don't get along, you know.
• 22:52
  SPEAKER_01: Yeah.
• 22:52
  SPEAKER_01: So like it's like with me, I I put my personality on my website just because I want people to know, like going in, I'm like, you know, this is who I am.
• 23:00
  SPEAKER_01: And some perceiving personalities, I can be a little, you know, edgier, you know.
• 23:05
  SPEAKER_01: Some perceiving personalities kind of take it.
• 23:07
  SPEAKER_01: There can be a little brushing, you know.
• 23:10
  SPEAKER_01: So but a lot of times you refer somebody and it's a personality clash, and it's not really the work that they did was crappy or something like that.
• 23:17
  SPEAKER_01: And it's like, yeah, well, they I got along with them, you know, and it's like, well, he was a jerk.
• 23:22
  SPEAKER_01: And it's like, well, maybe you took him the wrong, you know.
• 23:24
  SPEAKER_01: I don't know.
• 23:25
  SPEAKER_01: But yeah, I I like the funnel, you know, it's like, okay, who's gonna recommend somebody that's gonna screw their own profits up?
• 23:32
  SPEAKER_01: So that's a that's a great business model.
• 23:34
  SPEAKER_01: So your your uh probably track record as far as like having bad customers versus good ones, probably better than normal insurance companies, would be my guess.
• 23:47
  SPEAKER_01: Because they have to basically take whoever calls, and then they're and you know that's how kind of how I run my uh I'm I'm a broker and I'm an investor too.
• 23:56
  SPEAKER_01: You know, I buy properties and syndicate them too, you know, uh currently selling some, but when I pick one up, I'll definitely keep you in mind for insurance purposes.
• 24:04
  SPEAKER_01: But you know, a lot of my broker stuff I'm I'm referral only, and it's like I don't necessarily want the general public calling me.
• 24:13
  SPEAKER_01: You know, it's like friend of friends, it's like people that own properties send them to me and stuff like that.
• 24:18
  SPEAKER_02: So it's exactly a big reason.
• 24:20
  SPEAKER_02: Not only, I mean, not only do we not market online to prevent people who we don't want into the program for that reason, but I mean it also is the less money we spend on marketing and expenses, the higher return we can get back to our customers.
• 24:33
  SPEAKER_02: So it's almost a two-pronged reason as to why we don't market.
• 24:37
  SPEAKER_02: Um you know, both of them essentially alleviate to a better product to our customers in both cases.
• 24:43
  SPEAKER_01: So you know, the other reason I'm not on like Google My Business, it's not because I don't I I care less.
• 24:48
  SPEAKER_01: All my customers are super happy with me.
• 24:51
  SPEAKER_01: You know, but it's I don't want that guy that owns the gas station that I don't want to sell, and I kind of say, Man, this isn't for me, you know, and then I don't want him to turn around and get pissed and give me a one star because I don't want his business.
• 25:03
  SPEAKER_01: Same with y'all, y'all are like, he's too high risk.
• 25:05
  SPEAKER_01: You don't want the general public kind of calling you and you know, you turn him away, they start pounding you online, you're like, come on, man, you know.
• 25:12
  SPEAKER_01: Yep.
• 25:12
  SPEAKER_01: So it's it's kind of like you you're a private company and you know, you do business with investors and other private individuals that have a have aligned interest and all that.
• 25:22
  SPEAKER_01: So I love it.
• 25:24
  SPEAKER_01: 100%.
• 25:24
  SPEAKER_01: Um I got a question for you.
• 25:26
  SPEAKER_01: This is probably one.
• 25:27
  SPEAKER_01: Would you turn down a data center if they called you?
• 25:31
  SPEAKER_02: Um no, we actually uh we actually quoted out a a Bitcoin mining facility.
• 25:36
  SPEAKER_02: Um and we we just quoted out their their entire operation.
• 25:39
  SPEAKER_02: Yeah, they're a big shop.
• 25:40
  SPEAKER_02: Um total is about like$300,000 in premium.
• 25:44
  SPEAKER_02: Um but yeah, that's something we can we could do and bring on.
• 25:47
  SPEAKER_01: What what about a high risk like um, you know, I I work for a environmental company, they do demolitions and stuff like that.
• 25:56
  SPEAKER_01: Like, you know, and they don't keep the properties long term.
• 25:59
  SPEAKER_01: They go in and they ri remediate and they you know demolish stuff.
• 26:02
  SPEAKER_01: And you know, do you would you insure stuff like that?
• 26:05
  SPEAKER_01: Or I mean it's clearly higher risk, it's part of it, but you know, I mean Yeah.
• 26:11
  SPEAKER_02: Yeah, no, we have, I mean, I have a a product, like you know, builder's risk product.
• 26:16
  SPEAKER_02: Um, it's not in a captive structure.
• 26:18
  SPEAKER_02: That is something I recommend to stick with the traditional market just because there's a lot more moving parts and unknowns, you know, on the build side of things.
• 26:24
  SPEAKER_02: So generally what I tell them is, you know, hey, I'll get you a quote for builder's risk side, but I'm not gonna put you in a captive until the tenant or your first resident start moving in because that's really where a lot of the risk is already out of the way.
• 26:37
  SPEAKER_02: Um, so you know, yes, we're we're working on doing a a builder's risk captive, but it's just a really hard one to really really project returns across the road.
• 26:46
  SPEAKER_01: It's gotta be case by case, too.
• 26:48
  SPEAKER_01: I mean, it's like it's just kind of a different territory.
• 26:50
  SPEAKER_01: I mean, you get into some of those industrial sites, you're like, okay, what's behind the woodwork?
• 26:55
  SPEAKER_01: And you're like, I don't know.
• 26:57
  SPEAKER_01: Yeah.
• 26:58
  SPEAKER_01: Yeah, exactly.
• 26:59
  SPEAKER_02: That's why we stay away from it.
• 27:02
  SPEAKER_01: Yeah, the the data centers, I don't know.
• 27:04
  SPEAKER_01: I was just like, golly, I was kind of curious about that.
• 27:06
  SPEAKER_01: I was like, I wonder how much insurance is on it.
• 27:09
  SPEAKER_01: You know, like I'm I'm doing like site selection, you know, and it's like they want all these megavolts and they're going into industrial stuff.
• 27:15
  SPEAKER_01: I'm like, you know, nobody's really the expert, but I'm just like thinking, how how high is the risk of fire and stuff like that?
• 27:24
  SPEAKER_01: And you know, it's just kind of a fascinating world that's kind of evolving really fast.
• 27:28
  SPEAKER_02: So I mean, if you think about it, those data centers they have, I mean, a lot of them are using liquid cooling um embedded.
• 27:36
  SPEAKER_02: So they're already in an environment where they're suppressing heat as is.
• 27:41
  SPEAKER_02: So in the event a fire breaks out, you know, there's probably not a better facility to be able to try and put out a fire than a data center because it's just built into the nature of how it operates in itself.
• 27:51
  SPEAKER_01: I was about I was about to say Elon's is off of Mississippi, you know, or with the river that goes through Memphis.
• 27:57
  SPEAKER_01: So I think they're pulling water out of there for a treat uh water treatment facility.
• 28:01
  SPEAKER_01: They just yeah, dump that on there, but I don't know.
• 28:05
  SPEAKER_01: Just just kind of curious on it.
• 28:07
  SPEAKER_01: So what is so I have a lot of investor friends and you know, people that listen, you know, doing all size and of investments.
• 28:17
  SPEAKER_01: What's the best way?
• 28:19
  SPEAKER_01: Do you well do you want to add anything before I give you your your contact and all that and to get a hold of you and all that stuff?
• 28:25
  SPEAKER_02: Yeah, yeah.
• 28:25
  SPEAKER_02: I mean, you know, usually I'll just go into the the main questions you know people ask us um when they first interact.
• 28:31
  SPEAKER_02: You know, they're like, hey, well, what's my downside?
• 28:33
  SPEAKER_02: You know, what what is it that you're not telling me because this sounds too good to be true right off the bat, and usually red flags pop up when people hear that.
• 28:40
  SPEAKER_02: Um, you know, people don't realize or you know, insurance companies do a really good job of making you think when they pay out claims, they lose money.
• 28:49
  SPEAKER_02: You know, technically, yes, they do on a per claim basis, but on a full insurance company, the way they're set up, it's two scenarios.
• 28:58
  SPEAKER_02: They either make money that year or they don't lose any money.
• 29:02
  SPEAKER_02: Right?
• 29:02
  SPEAKER_02: Yeah.
• 29:03
  SPEAKER_02: People have heard of what's called reinsurance.
• 29:06
  SPEAKER_02: People have heard of companies like Swiss RE, Zurich RE, especially if you watch a lot of golf.
• 29:11
  SPEAKER_02: People know those companies, but they don't really know what they do, right?
• 29:15
  SPEAKER_02: So insurance companies like State Farm and Allstate, they all also buy insurance from those companies themselves.
• 29:22
  SPEAKER_02: So what they do is if they collect$100 million a year in premium from their customers and they only pay out$80 million in claims, they keep that$20 million difference.
• 29:32
  SPEAKER_02: Right?
• 29:32
  SPEAKER_02: That's a good year.
• 29:33
  SPEAKER_02: In the bad year, they collect$100 million in premium, but they have to pay out$110 million in claims, right?
• 29:40
  SPEAKER_02: That$10 million loss, a reinsurance company covers the additional$10 million difference surplus on top.
• 29:47
  SPEAKER_02: So where Allstate is not covering that loss, Zurich and Swiss RER.
• 29:52
  SPEAKER_02: So our captive members are in that same exact structure where you guys have a good year, here's your money back.
• 29:59
  SPEAKER_02: We have a bad year, that's okay.
• 30:01
  SPEAKER_02: Our reinsurance company is stepping in and taking everything zero dollars down.
• 30:04
  SPEAKER_02: So you're just not getting money back this year, but everybody is still insured.
• 30:09
  SPEAKER_02: And that's the exact same model what we do.
• 30:10
  SPEAKER_02: So that right, that's the biggest thing that once people realize and understand how insurance operates underneath the hood, that's the biggest thing that really gets them on board to really trust and understand that this is a really a win-win scenario for them.
• 30:23
  SPEAKER_01: That that's a really good layout because I mean, basically, people don't really understand the magnitude of the dollars coming in with all those premiums.
• 30:31
  SPEAKER_01: Like with that much money coming in, you have to have a really, really bad year to lose money.
• 30:36
  SPEAKER_01: And then if you do, you have backup, you know, you you've hedged your bets and all that.
• 30:41
  SPEAKER_01: So not going to get heavily screwed.
• 30:44
  SPEAKER_02: So and we tell people too, I mean, hey, look, worst case scenario, right?
• 30:48
  SPEAKER_02: We're captive right now is over about 150 million in cash reserves at any time.
• 30:52
  SPEAKER_02: So in the event we have 15 buildings fall down on the same day, we can cover it.
• 30:57
  SPEAKER_02: And then we've got an additional, usually billion in surplus backing us on top of that until we're reserved is replenished 150 million.
• 31:05
  SPEAKER_02: If we have a hundred buildings falling down within 30 days, it's probably gonna end up being a situation that more looks like the book of Revelations than you wanting to figure out am I gonna get paid tomorrow for my insurance company, you're probably gonna be figuring out what is going on in the world if 100 buildings are falling down at the same time, right?
• 31:24
  SPEAKER_03: So we tell people Yeah.
• 31:27
  SPEAKER_02: And if that if that even happens, right, if we end up in that situation, yes, right, our captive cash reserves are fully exhausted.
• 31:35
  SPEAKER_02: Our reinsurance company is fully exhausted.
• 31:38
  SPEAKER_02: Worst case scenario, we're gonna give everybody a 30 days notice and say, hey guys, we had a really bad year.
• 31:43
  SPEAKER_02: We're not gonna be around 30 days from now.
• 31:46
  SPEAKER_02: Go get quotes from the traditional market, and it was good while it lasted.
• 31:49
  SPEAKER_02: Thank you for participating.
• 31:50
  SPEAKER_02: In the worst of the worst case scenarios, that is the end result that our customers will face, right?
• 31:56
  SPEAKER_02: We don't project that's gonna happen.
• 31:58
  SPEAKER_02: Um, unfortunately, fortunately, you know, the property market has never taken out a reinsurance company before on its own.
• 32:04
  SPEAKER_02: So that's a great position for all of us to be in together.
• 32:07
  SPEAKER_02: But again, if you look at the data and the numbers, real estate again, collectively,$200 billion a year on average, only$150 billion on average in claims paid out.
• 32:17
  SPEAKER_02: The data is there to historically project that this is going to be something that's around long term.
• 32:21
  SPEAKER_02: Insurance has been around for two centuries, in some cases four centuries, right?
• 32:26
  SPEAKER_02: So it is a very stable and predictable business.
• 32:29
  SPEAKER_02: And we just expect everybody to be involved with the last insurance company they ever interact with once they come into contact with us, which is a great thing for both of us.
• 32:38
  SPEAKER_01: Yeah.
• 32:38
  SPEAKER_01: So you mentioned, you know, all different asset classes, whether they own, you know, a set of townhomes or whatever, all the way from RV, Mobile Home Park, industrial, retail, triple in, um, multifamily data center, you know, even self-storage.
• 32:54
  SPEAKER_01: Yep.
• 32:55
  SPEAKER_01: Yeah, self-storage starting to get into even industrial outdoor storage would be a good one to ensure.
• 33:01
  SPEAKER_01: I mean, it's like just truck truck trailers sitting out on uh you know land.
• 33:07
  SPEAKER_01: It's it's an asset class I didn't really think about.
• 33:10
  SPEAKER_01: And then it's like, I guess, I mean, it's a whole like it's crazy.
• 33:14
  SPEAKER_01: There's a couple ladies that work at EXP and that's all they do is uh iOS.
• 33:19
  SPEAKER_01: I'm like kind of fascinated by it.
• 33:21
  SPEAKER_01: I'm like, how do you make money?
• 33:23
  SPEAKER_01: They're doing they're killing it.
• 33:24
  SPEAKER_02: So there's a running joke in insurance where it's uh it's one of the the eighth hidden wonder of the world where you know people all realize that death and taxes are are the only two certainties in life, but we like to say death, taxes, and insurance are the only certainties in life where everybody pays for it still.
• 33:39
  SPEAKER_02: Um you just don't really realize it until you get on the insurance side where you realize how big of an industry it is.
• 33:45
  SPEAKER_02: And yeah, I mean, right, we're insur insurance and storage facilities.
• 33:48
  SPEAKER_02: It's a it's a metal, it's a metal frame building where if something happens to it, it falls down and they can just stand it back up the next day.
• 33:54
  SPEAKER_02: And right, that's an easy risk to insure where it makes no sense for them to be paying a traditional insurance company and just throwing that money away in that scenario.
• 34:04
  SPEAKER_02: Yeah.
• 34:05
  SPEAKER_01: Well, awesome, man.
• 34:07
  SPEAKER_01: You're uh there in Chicago.
• 34:08
  SPEAKER_01: Um that's where you live, right?
• 34:10
  SPEAKER_01: You you grew up in Florida.
• 34:12
  SPEAKER_01: Yes, from Fort Lauderdale.
• 34:14
  SPEAKER_02: And uh yeah, my wife moved uh so we moved out here, she uh she got accepted to law school at Loyola University, uh right in the heart of of Chicago.
• 34:22
  SPEAKER_02: So we moved up here together and she ended up getting a job.
• 34:25
  SPEAKER_02: And I mean, Chicago's a great insurance market to uh to be in.
• 34:28
  SPEAKER_02: So uh rubbed elbows with a lot of cool people.
• 34:31
  SPEAKER_01: Your wife's an attorney.
• 34:32
  SPEAKER_01: I bet you that law school was really hard.
• 34:34
  SPEAKER_01: That sounds difficult.
• 34:36
  SPEAKER_01: My head almost blew up when we went to Loyola or something like, oh man.
• 34:42
  SPEAKER_02: Yeah, it's funny.
• 34:43
  SPEAKER_02: I I saw your uh your your plaque there.
• 34:45
  SPEAKER_02: She was between Baylor and uh Loyola were her two uh her two primary options, so we almost ended up going out to Waco.
• 34:52
  SPEAKER_01: Yeah, Waco's come a long way since I was there.
• 34:55
  SPEAKER_01: Actually, I I really enjoyed it, but back then it was more of like a small town.
• 34:59
  SPEAKER_01: All of them were, you know, even like Bryant College Station and all those Texas towns are really small, but they've grown so much.
• 35:06
  SPEAKER_01: But you go back and it's hard to believe how big it is, but you know, yeah, Chip and Joanne Gaines remodeled half the town, and you know, so it's it's just different.
• 35:17
  SPEAKER_01: So um Yeah, no, we've been in the market.
• 35:19
  SPEAKER_02: We're insuring about a hundred, I think it's like 150 properties in Waco um alone right now.
• 35:23
  SPEAKER_02: So it's it's already pretty proud.
• 35:25
  SPEAKER_01: Wow, awesome, man.
• 35:27
  SPEAKER_01: Yeah, it's a good area.
• 35:28
  SPEAKER_01: And you know, the Belton and Temple area, it's all like turning into one big city down there.
• 35:32
  SPEAKER_01: So we've got a lot of a lot of roots down there.
• 35:35
  SPEAKER_01: I need to get back there.
• 35:36
  SPEAKER_01: I miss the Mexican food in Texas.
• 35:38
  SPEAKER_01: I love Nashville.
• 35:40
  SPEAKER_01: Nashville's a great city, it's got music, there's a kind of a more friendly vibe than you know.
• 35:46
  SPEAKER_01: I feel like Dallas is kind of pretentious, like LA, and I'm kind of going on a rant.
• 35:51
  SPEAKER_01: But you know, Nashville feels like it's easier to meet people.
• 35:54
  SPEAKER_01: Chicago's a city like that where it's kind of e I feel like it's easier to meet people, you know, everybody's fun and stuff like that, you know.
• 36:01
  SPEAKER_02: Yeah, and it's crazy.
• 36:02
  SPEAKER_02: You know, it's a it's a big, it's a big city, but it feels like a small, small city where you're just walking down the street one day and you see five people you know, um, just because everything is right right then and there for you to interact with everyone.
• 36:12
  SPEAKER_02: So really cool.
• 36:13
  SPEAKER_01: I need to come up there and get pertillos, I think, is the similar whatever.
• 36:18
  SPEAKER_02: Yeah.
• 36:19
  SPEAKER_02: What's your order there?
• 36:20
  SPEAKER_02: Are you uh you a the hot dog guy or you like their Italian beef?
• 36:23
  SPEAKER_01: I like the Italian beef with the peppers on it, man.
• 36:25
  SPEAKER_01: It's really good.
• 36:27
  SPEAKER_02: Yeah, that's a tough one to hard one to miss.
• 36:30
  SPEAKER_02: Yeah.
• 36:31
  SPEAKER_01: Well, man, let's uh get everybody your contact information.
• 36:35
  SPEAKER_01: I tried to jump the gun on that just because I think it's really important for people that are, you know, I have a lot of people that have, you know, 50 to 100 units or maybe 200 to 500 units that tune in.
• 36:47
  SPEAKER_01: Um what's the best way to get a hold of you and you know, reach out and maybe get a quote on some insurance and all that?
• 36:54
  SPEAKER_02: So Yeah, I mean, easiest step is really just to visit our website, you know, insure tech I-N-S-U-R-The number three, and then T-E-C-H dot com.
• 37:03
  SPEAKER_02: Um there's a button on there where you can either schedule a call to talk with me personally or just submit some information on your portfolio, uh, you know, unit count, any specific products you're you're looking at specifically, and um I'll reach out to you from there to start working on getting you quotes for your property.
• 37:18
  SPEAKER_02: Uh or you can just send me an email, you know, Nicholas N-I-C-O-L-A-S, and then at insure tech.com.
• 37:24
  SPEAKER_02: The three is just a it's a play on the E.
• 37:27
  SPEAKER_02: Um, so it is silent and spelled like in it, it is pronounced insure tech, but it's but it's a three instead of an E.
• 37:34
  SPEAKER_01: Insure.
• 37:35
  SPEAKER_02: Yep.
• 37:36
  SPEAKER_01: Three.
• 37:36
  SPEAKER_02: Yep.
• 37:37
  SPEAKER_02: But yeah, those are the two best ways.
• 37:38
  SPEAKER_02: And then I'm active on LinkedIn as well.
• 37:39
  SPEAKER_02: So, you know, if anybody wants to to read more about my stuff, and I get a lot of uh a lot of back and forth with uh traditional brokers on there who uh who try to tell me this doesn't work, it it never works, um but they just don't know how to do it.com.
• 37:58
  SPEAKER_01: So a dot com at the end of that uh insure um tech.
• 38:03
  SPEAKER_01: So that's uh awesome.
• 38:06
  SPEAKER_01: So somebody called you and said, Hey, I'm gonna sign up and all that.
• 38:10
  SPEAKER_01: How long does it take for you to kind of have them insured, you know, and in and all that.
• 38:15
  SPEAKER_02: So yeah, I mean, well, most people they generally reach out um when they're shopping their existing, you know, renewal.
• 38:21
  SPEAKER_02: So usually it's around 60 days where I'll start getting, you know, loss runs sent in, you know, SOV sheets on their portfolio.
• 38:27
  SPEAKER_02: Um really just need, you know, 48 hours is is how fast we can turn it around if somebody's behind the ball and they just hear about us.
• 38:34
  SPEAKER_02: Um, but for the most part, you know, anywhere in between that two to sixty day window is uh is really what people start to reach out.
• 38:42
  SPEAKER_02: But yeah, there's no preference.
• 38:43
  SPEAKER_01: As quick as 48 hours, but you know, most of them are doing 30 to 60 days out, so it makes sense.
• 38:50
  SPEAKER_02: Yeah, 48 hours.
• 38:51
  SPEAKER_02: We're we're having our teamwork overtime on the weekend to turn that around for you.
• 38:54
  SPEAKER_01: So if your insurance is coming due or you know you're looking at new policies and looking to save money, you're the guy to call.
• 39:01
  SPEAKER_01: So anyway.
• 39:02
  SPEAKER_01: Nico, I appreciate you coming on and all that and sharing your story.
• 39:06
  SPEAKER_01: It's uh great product you got going there, and I look forward to watching you grow and uh come along through the years and all that, and maybe an exit someday where you sell the company.
• 39:15
  SPEAKER_01: So Yeah, yeah, we'll see.
• 39:17
  SPEAKER_01: I mean you'll be my uh loan loan officer after that.
• 39:24
  SPEAKER_02: I mean the well, the goal is to never really sell.
• 39:27
  SPEAKER_02: You know, once I once you build the build an insurance company that gives all the profits back, there's really nothing much to give away.
• 39:33
  SPEAKER_02: We're already doing that as is, you know.
• 39:36
  SPEAKER_02: So that's one of the beauty and uh in the things that we're doing where we're we're already giving people the upside.
• 39:41
  SPEAKER_02: You know, and that's that's another thing I didn't touch.
• 39:43
  SPEAKER_02: You know, people ask, well, you know, hey, if you're giving the money away, how do you guys make money?
• 39:46
  SPEAKER_02: Um, you know, insurance companies make money two ways.
• 39:49
  SPEAKER_02: People don't really always realize it.
• 39:51
  SPEAKER_02: One is they collect more in premium than they pay out on claims, right?
• 39:55
  SPEAKER_02: Underwriting surplus or profit.
• 39:57
  SPEAKER_02: The other side is they're just investing the float as it's sitting waiting to be claimed against, right?
• 40:00
  SPEAKER_02: So we make our money the same way Venmo does, where we're just investing everything in, you know, in treasury bills and short-term bonds and just collecting the interest on our end.
• 40:09
  SPEAKER_02: So that's where we make our nut.
• 40:10
  SPEAKER_02: Um, but we're our goal again is to is built to give as many of the dollars back to the industry that we possibly can.
• 40:16
  SPEAKER_02: Um, and that's what we're doing.
• 40:18
  SPEAKER_01: Awesome, man.
• 40:18
  SPEAKER_01: I love it.
• 40:19
  SPEAKER_01: Uh give it back to the owners, you know.
• 40:21
  SPEAKER_01: So give it back to them for good behavior anyway.
• 40:24
  SPEAKER_01: So anyway.
• 40:25
  SPEAKER_02: Appreciate you, man.
• 40:26
  SPEAKER_02: Thank you for Carson.
• 40:27
  SPEAKER_02: Yeah, thank you for having me on.
• 40:28
  SPEAKER_02: Hopefully it uh helped a lot of your listeners.
• 40:30
  SPEAKER_02: Oh, it will, for sure, man.
• 40:32
  SPEAKER_02: That's a great product.