Unknown Speaker 0:00
Introducing the new remote investor, incubator and ecourse
Unknown Speaker 0:04
we had the mastermind and we are going to break off from that being mostly an accredited investor group. And I wanted to create something that was helping out the little guy get started guys getting their first properties. And we’re calling this the incubator group. Get More details at simple passive cash flow, comm slash incubator, but basically what we’re doing here is we’re getting a group of professionals looking to build your network with others starting this journey to financial freedom, the ecourse that’s going to accompany this group is going to have eight modules in a closed membership site plus two bonus modules and download kit all geared toward educating the remote investor in this group. We’re going to have biweekly zoom video calls and if you join up, you’re going to get all past turnkey rental recordings. Now these calls are designed to ask whatever questions you have and hear the other questions from other investors in your shoes. And we’re going to run this like a bootcamp style. This is going to be five month program, we’re going to walk you through the best practices for tax and legal as you acquire your first remote rental. We’re even walk you through the due diligence and offer process we’re going to have staff membership coordinators for extra support to get you over the sticking points and to connect you with the right people in the group. Even if you’re shy. One of the biggest reasons for join is access to our ever changing Rolodex of top turnkey companies, brokers, property managers, insurance companies. Hey guys, we’re basically spoon feeding this to you if you’ve been on the fence and it’s time to get your first rental property go to simple passive cash flow calm slash incubator and by the way, for those accredited investors, we are looking for new members go to simple passive cash flow calm slash journey and join the flagship simple passive cash flow mastermind there. After the pandemic to new world out there having a network around you is so much more important. shoot me an email Lane at simple passive cash flow if you’re unsure if the incubator or if the credited mastermind group is for you, but let’s get you connected with other people and don’t go it alone, hey simple passive cash flow listeners. Today we are going to talk about investing in all a bunch of Geek stuff like magic cards, Pokemon cards, comic books. So we are talking to the owner, Joe from mythic markets. Thanks for coming on jaw,
Unknown Speaker 2:19
for sure. So yeah, I’m Joe Maho t Vani. co founder and CEO of mythic markets, and we are essentially creating an investment platform for for geeks for fans. Yeah, so I guess I’d start off with that, you know, this is not a you know, an offering of securities. We are not soliciting any investments at this moment. We are also not a broker dealer. But we do work with one. And, yeah, I am not a lawyer. I’m not your lawyer, please can consult your financial advisor, lawyer, accountants, etc. before making any kind of an investment.
Unknown Speaker 2:56
Yeah, we’ve had a lot of um, we had a few other guys on the show. Doing wind. But the difference. The reason why we have to have all this disclaimer stuff is this particular, these guys with their securitizing the assets. So you as the investor, you can buy like a fractional share. But as soon as you do that you’ve kind of triggered securities law. And that’s why we need to get really, really formal with all this stuff. And you know, it’s just like investing in apartment buildings. When you don’t own the title to the property. You own a LLC that owns title to the property. Now you’re dealing with security. So that’s, that’s why we do it sometimes. And that’s why we don’t do it sometimes. But as investor, you need to understand that, hey, these guys are securitizing the investment they’re breaking it up as opposed to I own actual title to it right on the actual asset. Hey, Joe, let’s let’s kind of talk about a little bit about your story and how you came about, you know, starting this company up and I know a lot of people out there that listen to a lot of engineers, a lot of closet geeks, a lot of guys that I’m sure when I needed Um, we do a lot of networking meetups. We do like a annual meeting in Hawaii, and I’m sure a lot of those guys, they’ll they’ll dress up and go to the San Diego Comic Con or on their local ones.
Unknown Speaker 4:11
Yeah, for sure. Um, so I guess, you know, my background is in. I’ve been in startups my entire career primarily on the product and growth side, spent the last few years on the investing side of the table before starting this company. And, you know, specifically as it pertains to the types of assets that we that we offer on mythic markets. I’ve been a geek forever. And, you know, specifically for us, you know, we started off with magic cards, and I’ve been playing magic since 1994. In 2002, my collection was stolen when my car was stolen. And you know, the insurance covered about $5,000 of the cards value at that time, but today, those cards would be worth on the order of a million dollars. And, you know, it’s gotten really excited Have to sort of bring that collection back together and impractical but you know the same thing can be said for comic books especially being driven by the superhero film genres making billions of new fans for this this content and and this this intellectual property and you know driving demand for the original stories in the books and you know these things are you know highly collectible in and of themselves so, you know, we’re starting off with you know, as I said, the collectible cards, the vintage comics, as well as fantasy art and eventually eSports teams and you know, all kinds of fandom
Unknown Speaker 5:36
and a lot of this stuff is not you know, it doesn’t cash flow This one is definitely simple right I’m you’re kind of just a passive investor using the platform but you know, doesn’t it’s not nothing that I invest in personally, but maybe I am definitely interested personally in the future when I get bored and I’m just looking for cool stuff to do. I think the reason why I bring guests like Joe on the podcast is it helps us get out of the real estate mode in the box and it kind of brings us into a different investing land. And it helps us identify things that investors that we identify are important to us and evaluate in different investments. And having that different perspective really helps us learn. So first teaching point here, Joe’s horrible story there how he lost his magic card collection that could have been worth a million dollars could have could have been mitigated by just getting simple insurance. I got a buddy who got really into selling his basket Michael Jordan basketball cards because of the since we’re all locked up in the pandemic, and everybody was forced to watch the last stance which is the Chicago Bulls documentary, I guess, basketball cards, Michael Jordan cards specifically shot up in price but to me I was skeptic because it’s not insured. Right and I was looking at another deal it was like a farming deal in a different country and I was like, Dude, this isn’t even insure like, what happens if the thing blows up was you know like an apartment building we had several several fires lots of them. And a lot of times that’s what insurance is for. And I kind of like it when it happens, the little pain but a lot of times we can make even better through a insurance settlement and come out even stronger from a dollars perspective. Oh, we get sorry to derail their job. But um, yeah, let’s let’s kind of get into the thick markets this, this platform created.
Unknown Speaker 7:36
Yeah, I mean, I should also just quickly address sort of the insurance stuff like everything is insured. Everything is organized in as a company. And so it is our intention to generate revenue with these assets. And through that revenue, eventually, like pay out dividends and that sort of thing. So the intention is for these assets to be self sustaining businesses in a themselves. Cool. So like, why would you actually invest in this stuff? In truth, the, you know, collectibles, like to magic cards or comic books and that sort of thing have outperformed not just the market and gold and real estate, but also alternatives over the last 10 years and, and beyond. And so like, not by not by a little bit, like by quite a bit. And so, you know, but this is an asset class that hasn’t been sort of, that most people aren’t exposed to number one or familiar with, but also because like, you know, in general, this high value stuff, whether it’s, you know, collectibles or real estate, and that sort of thing is just out of most people’s capacity, and certainly for some of the blue chip assets that we offer. You know, this is certainly true. I mean, most people can’t afford let’s say $100,000 card or a million dollar comic book. But you know, there is a reason why, you know, high capacity sort of investors do invest in this kind of stuff is because they, you know, aside from being diversified in other asset classes, you know, this is something that, you know, they may understand better have more intimate knowledge of but also that it generally has outperformed. Of course, like past performance is not indicative of future returns and all that.
Unknown Speaker 9:17
And there’s a there’s a mainstream advice out there that most investors fly off of which is you diversify, right, don’t put all your eggs in one basket, but I forgot who said it, Dale Carnegie says, Well, that’s stupid, you know, most sophisticated investors invest in one thing that they know, put all their eggs in that basket and wash that basket like a hawk. So there’s kind of two camps out there. And Joe noses magic carts.
Unknown Speaker 9:45
Yeah, I mean, it’s, it’s a it’s something that I’m super passionate about. I would say that I would not recommend putting all your eggs in one basket. And I certainly don’t. But, you know, if you do have sort of the capacity, and frankly Like the knowledge and interest and also the stuff, you know, the alternatives are a great option. Well, I mean, I guess I shouldn’t even say that, like they are a speculative option. But, you know, at least past performance has been, you know, outperformed.
Unknown Speaker 10:16
And a lot of this stuff is not like, Look, a lot of you guys listening on the podcast here. You guys are affluent investors. you’re investing in the right stuff, building that foundation of cash flow, and a lot of this stuff is more fliers. It’s fun, right? Like, life’s all about having fun after you get your basis cover. And a lot of you guys can partake in this type of stuff, because you’ve earned it. You work your ass off and you’ve gotten to a point in life where, you know, you can buy a $200,000 Pokemon. I actually wasn’t the Pokemon cards. I don’t know how to play them, but I knew like, when I was like nine, we would buy these cards. I knew like you could you buy a pack for five bucks in the stars or you could sell them for $5 and there’s usually a star card. In each pack, sometimes you get a foil card. But that’s all I know. But it’s an astonishing thing, right?
Unknown Speaker 11:06
There definitely is an element of nostalgia. But, you know, I will say that like, you know, these are trading card games, the word trading sort of right in them, you can follow, like, even the daily value or of any of these cards on a number of websites. And this stuff changes hands very frequently, mostly offline, you know, as people are trading in shops and stuff like that. Here’s a $5 card for, you know, dollar 57, cards and so forth. And, you know, this happens all the time offline. And so in some ways, they are sort of traded like unregulated securities already we are, we just happen to be doing that at sort of the high end. So for instance, like, you know, a $90,000 black Lotus card, which is something that even if you’re not familiar with magic, you may be familiar with the black Lotus for instance. Or if you happen to be, you know, a fan of Pokemon, you might have spent $5 on that pack of cards and cracked open a $20 card, for instance. And, you know, on top of that there is sort of the utility of the value of those cards in the game. And so for instance, black Lotus happens to be a very powerful magic card that you used to be able to buy in like a $3 pack of cards.
Unknown Speaker 12:22
What the heck does the black Lotus do because I saw this is when I first got interested in this stuff. Maybe 510 years ago, I saw a YouTube video that went viral. This guy like unpack, he’s just going through his cards. He’s flipping it in his hand. This is way before unboxing was popular. Just like last CES s you got that black Lotus card. It’s like oh my god. Oh my god.
Unknown Speaker 12:46
Yeah, yeah. Um, so that was that that video is, I mean, amazing to see something like that being opened from, you know, being packed fresh as they, as they call it. And so You know, that card specifically at the time, I think was worth like 25 grand? That was maybe seven years ago. And today probably closer to 400, maybe maybe more 400,000. But depending on I think it came back in nine five, highly graded card. In any case, to answer your question, a black Lotus essentially, these games are, you know, you take turns playing cards and casting spells and trying to beat your opponent, right. And so essentially what a black Lotus does is give you a three turn headstart, in terms of like your resources. You know, you can play like one resource to turn one land to turn. But a black Lotus essentially gives you three mana of any color of a single color of any color. And, you know, you can cast something that costs three more mana much faster than then your opponent. It’s, it’s amazing. It’s amazingly powerful. It seems very, very simple and it is but It’s outrageously powerful.
Unknown Speaker 14:02
Apparently it’s worth as much as like a nice single family home median family home in Alabama. Um, yeah really cool car for ya.
Unknown Speaker 14:13
I mean, as throughout the years as the game has grown and true true of whether it’s Pokemon comics eSports whatever it happens to be, as the fandoms continue to grow throughout through the years the stuff becomes more valuable becomes more rare becomes you know, as a result becomes more out of reach for people. So magic’s been around for 27 years now and and so you know, the the player base and that the fan base has grown you know, immensely throughout the years. And similarly with pokemon pokemon is the number one highest grossing franchise ever. And then you know, similarly with with comic books, I mean, as you go and watch the films, this stuff becomes more and more popular. So ultimately, you know, we have structured these as a Regulation A plus, specifically tier two public offerings. And this allows what’s unique about that is that allows you know, both accredited and non accredited investors to participate. So in like a typical let’s say real estate deal that you may be accustomed to, you know whether it’s you know, there’s a lot of platforms out there for buying fractional ownership and real estate you know, you Those are probably either a, you know, read crowdfunding No, probably not read crowd Yeah.
Unknown Speaker 15:30
Like the 506 B or C, and that requires you to be an accredited investor.
Unknown Speaker 15:35
No, yeah, some most of those but like 90 to 97% of real estate deals, which is a little bit misnomer, are for non accredited investors to you just have to be in a network. You have to know who you’re dealing with as soon as like you mass market out to the average Joe, it can only go out to accredited investors. So right typically, not the good deals, in my opinion, because they’re kind of fishing for invest There’s
Unknown Speaker 16:01
right so reggae plus allows not just the accredited and non accredited investors but also for this general solicitation allowing you know you to essentially advertise these things in a similar way as like reg crowdfunding would allow you but then that had other you know, investment guide rails for read crowdfunding and also reinvesting limits. reggae plus allows, you know, up to $50 million, specifically tier two allows up to $50 million to be raised for any new raisings like qualified under that particular reggae plus filing. And so for instance, like, you know, in the previous slide, you know, there’s the $90,000 Lotus and the $200,000 Pokemon card and you know, the comics and so forth, you know, that, you know, with that comes nowhere near $50 million, and so we can put quite a few things under that into that single filing.
Unknown Speaker 16:54
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Unknown Speaker 17:47
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Unknown Speaker 17:56
Yeah and and those of you guys are investing in HP They have a Regulation A plus offering. I don’t know if it’s a tier one or I think they’re tier two. So I’m not too familiar with this. So I might miss quoted, but I believe tier one are lower thresholds, you can only raise up to a certain amount 20 million, I believe, and you don’t need an auditor, but the one you guys are doing are the bigger 120 million and over but you need a third party auditor.
Unknown Speaker 18:24
We are audit. Yeah, all of our offerings are honored,
Unknown Speaker 18:28
but new audits. But the trouble with a reg a plus offering is it takes a lot longer than a 506 B or C to originate a lot more paperwork and it’s a lot more costly. Like we normally get our ppm done on their 506, b and c stuff for like, like 10 grand on that magnitude, but the reggae plus is probably about five times as much as that.
Unknown Speaker 18:51
At least Yeah.
Unknown Speaker 18:52
But the nice thing is, you know, you can buy all kinds of cards under the sun, all kinds of assets and it’s just one ppm. Done. And I think you can you can keep it over for what, like a year and a half a couple years.
Unknown Speaker 19:05
Yeah. So I mean, technically, it’s not a ppm. Like, I mean, it’s not it’s not private. But yeah.
Unknown Speaker 19:12
You know, from your perspective, it’s all the lawyers do all the paperwork that they do. It’s just you just have to pay them 50 grand one time. That’s the I,
Unknown Speaker 19:21
I will say that we’ve invested a lot more than $50,000. And, and more importantly, like time into kind of bringing all this together. Yeah, I mean, we’re here to, you know, to build a business for long term and as what we’re doing,
Unknown Speaker 19:35
I think, from an investor’s perspective, it’s important to know the structure and how you’re, you’re raising money, because if you’re working with an operator who just they don’t have answers these kind of questions, you want to run away as quickly as possible, because they’re doing it illegally. You know, if they don’t have the money to 50 100 grand to do one of these documents, maybe they probably shouldn’t be in business in the first place. Shouldn’t be yes.
Unknown Speaker 19:58
So so we are regulated by the SEC. as you as you put it out, and and so we have a qualified, you know, public filings available on the SEC at your website, and we amend those from time to time. And then we also have, you know, FINRA, no objections and, you know, gone through all that process. And so, you know, so the way that this ultimately works is that we acquire these, you know, in our case, like high value collectibles, and then we wrap them in a company, specifically series LLC. And that’s what’s broken up into shares, securitized with reggae, plus, and then we, you know, it’s basically like, 80% or so to an actual IPO, like, you know, being able to take like, Uber public or whatever, smaller scale, obviously, but, you know, there’s a ton of work involved to do that. And so, you know, we are, you know, doing those IPOs, those public offerings, and then we are in the process of enabling that last part, which is trading So, that’s something that is a priority for the next, you know, through the end of the years or is our priority. And so, you know, ultimately what people are investing in are, you know, in sort of lay terms like shares of a company that owns the, the assets. So in our case, you know, a membership interest is the shares the shares of the of the LLC, which is the series LLC, and the asset is that underlying asset in this case, in this case, let’s say like a black Lotus, or the Pokemon card or the comic book, etc. And so ultimately, you are investing in, you know, series, let’s say alpha black Lotus or series, you know, Pikachu illustrator series, Amazing Fantasy 15 you’re investing in shares of that and that company owns that that card or comic book or whatever the asset happens to be. So I’m just, you know, for clarity, you are not, you know, buying a page of that comic book. For instance, you’re buying a share of the company that owns that and maintains that thing. And so, you know, this is a overview of how everything sort of organized the mythic collection is the company that is making these offerings is what’s called the issuer. And, you know, as I’ve mentioned, sort of the series structure below that, you know, you have the Lotus and basically everything else that would fall under that. And so, that is managed by what’s called the manager up top, and that is our company that develops the software and employs our team and engineers and so forth. But, you know, these offerings are made by you know, with the collection and, and, and ultimately, like, if, you know, someone wants to acquire the asset, like, you know, that is, you know, the company sells the asset at you know, whatever the agreed upon prices, and especially based on like the shareholder sentiment, um, and then and then the the company is the asset is sold in the company is dissolved, but yeah, I mean, we don’t expect to that That will be the primary form of liquidity. As I mentioned, we are building that trading piece in the next quarter or two. So that that’s, that’s coming soon. So, right now, for those of you guys watching on the YouTube, we have the org chart. It’s kind of like an org chart, but how the mythic collection LLC is sort of the manager of the underlying assets, you know, just you call it black Lotus card, one black Lotus card to Pokemon card 550, or whatever. Are the assets underlying So right now the LLC is structured to hold on to those acid and it’s managed by the manager.
Unknown Speaker 23:40
I think a lot of times investors they kind of key in on Oh, what’s the structure? What’s the structure? To me? I don’t I mean, what’s the structure that the lawyer put together that, you know, makes the the sense for the management of the assets. This is very, it looks very familiar to blind pooled funds. Where there’s quite a few assets in there, and it’s an open load, and open, you know, assets are coming in at different times, and also exiting at different times. But the unique thing about this sort of deal is if you can explain a little bit better job at the trading aspect, how do you assets come in and out? Right?
Unknown Speaker 24:21
Yeah. So I mean, I guess, you know, the reason why, just as an overview wide structured this way, is that, for instance, each of the series, each of the assets are, are essentially shielded from liability from each other. If, for instance, one the value of one goes up, or let’s say the value of one goes down. You know, it’s shielded from every other deal. And so, you know, it’s, it’s important to kind of keep these walls up between, you know, the investors of each of these companies, right. So, not just to protect these other companies, but also to protect the the like, let’s say this year Black Lotus itself, in terms of like the trading, as you were alluding to, so we’re working with a broker dealer partner to implement their alternative trading system. And, and all of that’s been FINRA approved at this stage. And so we are building that, you know, as as we speak now. And so you, as I mentioned, are buying shares in each one of these LLCs or whatever one that you specifically want to invest in. So you own shares in that LLC. And the ATMs, the trading system will allow you to, essentially, you know, list those in sort of a bid ask marketplace and, and be able to sell those shares to other investors, much like you know, how the traditional stock market works. And so yeah, it operates much the same way,
Unknown Speaker 25:53
all under the umbrella of the company or the manager.
Unknown Speaker 25:57
So we host that that marketplace. So, you know, you’d feel at this stage only be able to trade let’s say, you know, shares in that black Lotus or you know, the Pokemon card or the comic book or what have you on mythic markets? And so yeah, that’s where we are making that available.
Unknown Speaker 26:17
So as a FinTech company, they’re creating a marketplace, which is this part of the value add, because, you know, if you’re just running around to magic cards, conventions, especially when there’s not enough people meeting out in the public, or COVID it can be a very fragmented market, whereas you guys are kind of making up more of a liquid market.
Unknown Speaker 26:40
Yeah. And so, you know, the thing is, is that the increased liquidity is ultimately coming from being just within reach. Because if you think about like, there is no shortage of, you know, people at, you know, shows, for instance, like conventions, whether it’s Comic Con or whether it’s, you know, magic fashion Or whether it’s whatever it happens to be, there’s like, a lot of the, the collectible swapping hands at these things. And, you know, generally like, let’s say like that, that magic card that black Lotus, you will have people at the shows like moving cash around. And, and so you know, that’s gonna be you know, for only for people who have the capacity to be able to take part. liquidity is, you know, increased with us in the sense that you know, you could buy a share for like $40 or whatever the the share price happens to be and participate, you know, and not have to come out of pocket for $90,000 or whatever.
Unknown Speaker 27:40
Yeah, we’re trying to eliminate the magic card trader with his fanny pack walking around several grand in his pocket, right.
Unknown Speaker 27:47
Yeah, I mean, look, if we look at my own personal example, you know, I used to keep my cards in my car, including several lotuses, and you know, other really expensive cards because They just went in my deck I played with them, and people still do. But as it’s been shown, at least in my case, it’s the stuff disappears pretty easily and quickly and it hurts a lot when it when it happens, and it happens more often than you would think. I mean, once this stuff is slapped in like hard plastic cases, it’s essentially been relegated to art. And unless you destroy that case, in general you are that that thing is never going to breathe fresh air. Again, this is super rare stuff. And to some you may believe that it belongs in a museum as Indiana Jones, like say.
Unknown Speaker 28:41
So, so the stuff talked to us a lot, but the storage of these assets, and then are they are they insured?
Unknown Speaker 28:49
So I guess that first part just because we’ve been talking about it, so we have an insurance policy that covers the entire collection, and we continue to amend that insurance policy as we get new things you In the collection, and we store all of our stuff, I’m here in California, but we store everything out of state for tax purposes. And so we don’t, you know, generally reveal like where that is just because you know, it’s a storage like vaulting facility.
Unknown Speaker 29:15
And that, you know, as an investor you want to be able to know that you’re, you’re insured for at the end of the world event, you know, it’s just like apartment buildings fire or whatever hurricanes, anything you can say about like the validity of the product, like how do you know you’re not getting like a fake black Lotus?
Unknown Speaker 29:32
Sure. So like there are grading and authentication services that independently Will you know, you send them the, the card or the comic book or whatever. And they will essentially, you know, validate that those things are real, like they’re not infallible, but they’re, they’re like, very, very good. And so they will not only authenticate and and then they’ll apply a grade so they’ll grade things like the Quality and how pristine the surfaces and the corners and you know, whatever, like any damage centering basically like, you know, applying a grade so that you can kind of, you know, know where your particular asset sits in the universe of similar assets. And so, um, you know, for instance with cards BGS and PSA are sort of the popular ones BGS was is Beckett and so for those, you know, who might have collected in the past, they know that Beckett is is a, you know, used to put out those price guides and stuff like that. And then CGC and and others also do comics. Yeah, so there are services that will, you know, authenticate in grade and all that other stuff than others that will appraise and you can also find, you know, we base our sort of, I guess appraisals based on comparables in the market just like you would for real estate and You can kind of find a lot of these things, transacting online. But I would say that the vast majority of the transactions are happening offline.
Unknown Speaker 31:08
Yeah, and I’ve told this story a couple times to folks, but the I was looking into buying some life settlement, investments, one off deals, you know, you essentially just buying a piece of paper a contract. And as an investor, I wasn’t able to validate if the paper was legit or not. There’s no barcode, there’s, you know, you couldn’t really call up the surfacer. And see, is it real and that was what made me uncomfortable and why I didn’t put any more time. I mean, I probably didn’t put as much time as I’d like to because I got busy with the real asset investing, but it’s what that’s it’s I just wanted to highlight that because it’s kind of the same exact thing we’re talking about here. How do you make sure that your asset is legitimate? And just like when you buy a house or apartment building, there’s a title you know, that’s why it’s so nice to invest in the United States because less paperwork is the Fine.
Unknown Speaker 32:01
Yeah. So, um, I mean, all of this, as I mentioned, is, you know, designed to, you know, uh, you know, fit within, like, sort of the regulatory environment in the US. And so, you know, I think it’s probably a good time to mention that these are actual securities, you’re buying actual, you know, shares of a company, actual stock, versus like, you know, this is not crypto or blockchain or sort of any, anything like that. So there is definitely like a securities framework around all of this.
Unknown Speaker 32:33
Can you go into like, you know, you mentioned the Becket guide for like baseball cards and basketball cards. Wasn’t there some kind of like a controversy like it’s it’s sort of a coffin, conflict of interest, right, that they’re grading their own cards. Wasn’t there something that came out?
Unknown Speaker 32:49
I mean, Beckett doesn’t make their own, as far as I know, like, print their own cards, but I suppose that there’s probably like a way for them to sort of be in cahoots with the people who are sending, like, you know, the the major dealers and stuff like that, as well as the the publishers of this stuff, I would imagine. But I’m not aware of like anything that, that there was any kind of conflict on controversy around those companies themselves, though. So yeah, so so trading is like the number one, by far our number one most requested feature. And so that’s something that we’re working on right now. And, you know, these are all just concepts that you’re seeing right now. But, you know, we’ll work essentially the same way. And, you know, so that’s something that we’re enabling through our broker dealer and their alternative trading system. So we’ll be enabling that, you know, hopefully by end of year at the very latest, but, you know, like I said, these things generally take a lot longer to kind of put together just because this it’s such a heavily regulated business and And these are actual securities. And so yeah, I mean, it’s like a, essentially a bid ask marketplace. And so, you know, it’s, you know, if someone says like, if you buy shares, and let’s say, the Lotus at $45, and you want to list it for sale at like, $50 Well, somebody else has to come in and be willing to pay you $50 for, you know, the shares, for instance. And so, um, yeah, I mean, I guess much like the stock market, but I would say like, lower cap, obviously, and there will be, you know, limited volume, at least at the at the outset. But, you know, that’s something that we’re building up over time,
Unknown Speaker 34:34
or like an eBay for cards.
Unknown Speaker 34:37
Right? Well, but for securities of securities cards,
Unknown Speaker 34:41
yeah, fractional ownership of cards. Are there any time and like, you know, like the past handful of years where like some some event has happened, where greatly impacted the price of the cards, individual cards that go up or down like because I mean, this is the fun part, right? I mean, this whole you know, the reason why you do is because it’s fun Then, you know, I can see like, like basketball cards like, you know, LeBron James wins another championship with LA, he might even be the, you know, the goat right greatest of all time better than Michael Jordan, you know, a lot of arguments there, that his card might go up in value. Is there anything you can kind of point to that things have happened in the industry that push certain items higher or lower?
Unknown Speaker 35:25
Absolutely. So, um, you know, you give a great example with like, you know, the Jordans stuff like, Jordans stuff has increased two or three times since, uh, since the last dance came out, for instance. But I’ll give you an example like from our fandoms. So, a Wonder Woman, the first Wonder Woman book was, you know, maybe a $25,000 comic book or 10,000 or whatever it happens to be like, there’s also different grades and so forth, but, um, you know, high grade version of that sold for about $930,000 to months after the movie came out because you know before the movie came out first of all nobody was as aware or as familiar or you know found Wonder Woman to be as popular popular as she became after the movie came out and so suddenly you had a worldwide audience and fan base of probably billions of people. And so that book skyrocketed in value because the The film was was so popular. And then you know, on the flip side, you know, and also like, you know, to that end, you know, we saw the same things happen with you know, Black Panther and you know, infinity war and stuff like that, maybe not to the degree that Wonder Woman did, but um, certainly like the movies, the the are driving a lot of that fervor around and demand around those origination stories. On the other hand, you know, Justice League is another one where it just felt kind of flat and didn’t really help the book much at all. You know, but you know, A lot of it is dependent on sort of the popularity of these, these these games and these fandoms and stories,
Unknown Speaker 37:07
like fantastic for by them now. Right? You can’t get any worse than the last.
Unknown Speaker 37:12
Well, I mean, so that’s great example. So I mean, we actually, you know, did recently pick up a copy of Fantastic Four. And you know, we’ll be making an offer, offering that soon. Now that the MCU. And frankly, Disney owns everything, including the Fantastic Four x men and a lot of other IP that they didn’t have before. You know, the expectation is that as they’re integrated into the MCU, that, you know, they make amazing films. And so certainly I think a lot of people are betting on that, to drive the value of these, these collectibles.
Unknown Speaker 37:54
Now I’m going to ask you a jerk question. You’ve always asked this to me, they’ll say like Oh if COVID-19 people want to live in apartments anymore, you’re all like really buy like what is what it look Do you see any kind of scenario where maybe they flood the whole market with a whole bunch of like collectibles are love these items aren’t going to be worth the price of book down, I guess.
Unknown Speaker 38:24
Um, so we have
Unknown Speaker 38:26
just a blank, blank stare like alright, do what you’ve been doing then whatever.
Unknown Speaker 38:32
Yeah, so I mean, you know, I think that it depends. So for instance, like we haven’t seen that so far, we’ve seen more dollars flowing into sort of alternative assets investing, especially as like, you know, and by the way, like, I don’t know that you can print trillions of dollars without affecting like the the value of cash for instance, but you know, certainly like people who live Looking for other places to put their money? You know right now. And so I don’t know necessarily how that pertains to apartments, I mean, I can tell you that here in the Bay Area, like rents have fallen, because people are leaving the Bay Area if you don’t have to live to live here to work here, or at a bay area company. But, so I can’t really comment on that. But at least with collectibles, we’ve seen an increase in in demand for this stuff. And also on the flip side to where people need to get some liquidity right now you’re seeing a lot of people, you know, get out of their, you know, collectible positions.
Unknown Speaker 39:37
So, yeah, hopefully that answers your question.
Unknown Speaker 39:40
Well, if you ask those kind of questions, though, guys, you’d never do anything anyway.
Unknown Speaker 39:46
Unknown Speaker 39:47
Yeah. I mean, I think everyone’s in sort of a different financial position, especially right now where, you know, people are very uncertain about, you know, what’s going to happen, you know, being an election year. For instance, that that would certainly have an effect. And so yeah, I mean, I think that there’s just a lot of uncertainty. And so, also, you know, with everybody cooped up at home, one thing that people are gravitating to is is comfort is nostalgia is entertainment. And so, you know, you’ve seen for instance, like online games skyrocket in terms of like, their, their, their popularity and demand. Similarly, like with you know, the, the digital versions of like, magic, for instance, is like crazy popular. You know, because you’re not going to your local game stores to play cards anymore, or to the mall or wherever and hang out with your friends. And so, um, so that’s certainly like driving a lot of this.
Unknown Speaker 40:44
Yeah, I know are super popular these days are like, board game bars. so popular.
Unknown Speaker 40:50
Right. So in the city, like we’ve got a few of those in there. It’s actually really hard to get a seat. I mean, I imagine right now. I mean, I think this thing’s gonna ruin In a lot of those kinds of businesses, at least in the short term, but I, you know, I think like, yo, we are all looking for like third places. And I think third places will become, you know, more popular as work from home becomes more popular. You know, whether it’s a coffee shop or like a bar or like a, you know, game store to hang out with your friends, whatever it happens to be once people get comfortable hanging out with their friends. I think those will become more and more popular.
Unknown Speaker 41:29
Yeah, totally agree. I gotta get out of the house. Yeah, that’s why I’m joining a club.
Unknown Speaker 41:34
For sure. So you guys sign up right now for you know, sort of an example of what happens let’s say if we liquidate the entire asset. So if we get somebody somebody that comes in and says, Hey, I really want to buy that, you know, let’s say that Pikachu illustrator card that was 220,000 is probably close to like 250, maybe 300 now and it’s actually actually a population of five and so You know, if somebody comes in and says, like, hey, I want to offer you, let’s say, it’s like, you know, let’s just use these numbers here, for example, you know, it’s it’s on the market is, you know, trading for $80,000 for whatever the example is, and there’s 2000 shares. So the share price currently would be $40. Um, if there was 2000 shares, if somebody comes in and says, Hey, I want to pay $125,000 for that thing, there’s like a 50% or so premium, sort of, like, comparable to somebody coming in and taking a public company private, for instance. And so they’d be might be a premium on shares, you know, aside from sort of, like, you know, cost to to wind down the company to do all the accounting and also this stuff, you know, the the, you know, you that would be factored into whatever the, you know, the payout per share prices, but you know, the proceeds from that sale would go toward the shareholders of that of that asset, pro rata so based on whatever their ownership happens to be. So, yeah, I mean, this is an oversimplified example. But you know, essentially that’s how it would work.
Unknown Speaker 43:11
So we understand you guys are that kind of beat the house? How does the house kind of keep the lights on and facilitate this marketplace? What’s what is the kind of asset management fee or
Unknown Speaker 43:24
so if you actually go to the next slide?
Unknown Speaker 43:28
Awesome. So So how does mythic markets make money ultimately? So number one is not from trading fees. So we are not a broker dealer and we cannot accept anything that even resembles a you know, a commission for trading. And so, so it’s not from that. So ultimately, our core business is going to be around sort of this premium subscription model that you know, we’ll be similar we envisioned to be like, like Robin Hood gold, if you’re familiar with Robin Um, you know, not necessarily like options trading and margin trading and stuff, but, you know, potentially pro trading tools, early access to the IPOs you know, and, and, you know, opportunities to, you know, visit the collection and experience the collection, and all kinds of other benefits that we are currently still putting together. And so, you know, with each IPO, there is a, you know, a nominal sourcing fee that is included, and that covers some of the costs to bring, bring that offering to market and generally like historically has been about 2%. And then, you know, we also co invest in every single deal so, you know, if you’re, although these are structured as like a series LLC and as a company and you know, intended to generate revenue, the mythic markets essentially co invest in each of these things as if you’re familiar with like a fund structure, sort of like a GP LP sort of relationship. But you know, this aligns our interests with the the investors as well and so we hold that until any kind of a liquidity event and then and then what’s called free cash flow ultimately this is serves as like a potential management fee and so, like for instance, you know, we intend to have these at like a gallery or show or sponsored or whatever it happens to be, and half of that revenue is split equally between the the series meaning like to run that business and then with the shareholders as a dividend. So for instance, if we take in $10,000 as part of like a, a gallery, you know, ticket sales or whatever it happens to be, um, you know, half of that would go to the as like a management fee, so like $5,000, and then half of that would go to the shareholders as a dividend and, and then probably paid out semi annually or annually. So still working that take Have a piece out, but I will say that we do not take any kind of a, you know, management fee on if the asset is sold. If that if that makes sense
Unknown Speaker 46:10
Unknown Speaker 46:12
Right. So So in the previous example like, you know that $5,000 like your I guess that, yeah, so like the $45,000 Delta, we’re not taking 25 of that, for instance. That is all generally going back to the the shareholders.
Unknown Speaker 46:28
So the sourcing fee in a way that’s, that’s kind of your your matchmaker fee or acquisition fee, what percent is that normally of the asset or is it more fix?
Unknown Speaker 46:40
No. So So it depends. But in general, historically, it’s been about 2%,
Unknown Speaker 46:47
which is pretty much in line with, you know, trading any kind of asset out there.
Unknown Speaker 46:52
Yeah. So again, this is not a trading fee of any kind. This is basically covering, you know, all of the legal expense, all of the expense of You know, basically going out and you know, transporting and you know, bring that to our vault and also this stuff to
Unknown Speaker 47:09
you know, cover some of those costs,
Unknown Speaker 47:11
but I will say that not just a bunch of dudes play magic cards you guys are
Unknown Speaker 47:15
right, exactly. So yeah, I mean that’s it’s, I would say I will say that like our actual fees are far greater than the sourcing fee would offset it’s something that we include to help cover some of those costs
Unknown Speaker 47:33
and this is interesting that you guys aren’t doing like the CO investing model when you so when you guys go into a deal you in a way you guys it’s like sponsoring an apartment deal. The general partner is also putting some money in the LP side. Is there a normal like minimum you guys will do have the the total money needed? Or is it you guys pick and choose to or
Unknown Speaker 47:56
so yeah. are offering documents. You’ll make mandate that we pick up a minimum of 2% in general, you know, it is far more than 2%. And so, you know, right now, like we are taking up to 10% but, you know, it just, it just depends on the, the, the offering. But yeah, I mean, I think like we’re averaging right now about, like, 8% as a co investment, but in general, like, if you look at any sort of fun structure, the GPS are putting in, you know, around like 5%.
Unknown Speaker 48:29
Exactly, exactly. And that’s what the teaching point I want to pull out, you know, for apartment buildings, different asset class, different type of investment altogether, but normally if like for like, a, like a newer operator, you know, you want to see more than 10 20% of skin in the game. I think five to 10% is for what most guys are doing. Um, but yeah, you know, right in line with with that guidance.
Unknown Speaker 48:55
Yeah, so like you said, This is totally our skin in the game and you know, incident, I mean, ultimately aligns our interests with all of the investors.
Unknown Speaker 49:05
Yeah. And I think that by aligning interests with them, you guys are cherry picking assets to bring into the collection, right? Like you guys aren’t going to pick up. I don’t know, like Captain America, right? There’s not going to be any more movies coming out supposedly. Well, I mean, who knows that that’s a guess. Right. But like, if that’s all indicated, you guys wouldn’t buy any of those assets. Right? I mean, I don’t know, what would be a good example.
Unknown Speaker 49:29
No, I mean, I think that like actually makes the, you know, if I were to speculate, I would, I would say that that probably increases the value of those assets.
Unknown Speaker 49:36
Oh, yeah. Yeah, you’re right. Right. So
Unknown Speaker 49:39
yeah, I mean, Captain America hugely popular. Not just that there is now a new Captain America. And so, although differs, the stories differ, you know, in terms of like the sequential order of who that Captain America is in the MCU versus like the comic books. Um, it there are still sort of the origin stories. Let’s say for this new Captain America. And so um, but like the original, like, the original is not going anywhere like ultimately like, you know if this new Captain America and all subsequent Captain America’s are popular or you know more even more popular that actually you know, I would say probably drives the the value of those earlier origin stories are as they continue like bearing that torch forward
Unknown Speaker 50:25
I think it proves my point I don’t know what the heck I’m talking about right as an investor but and that and that’s why I think this business model fixed because you guys know a lot more than us sitting here and therefore you guys should be making the decisions just like an apartment deal where I mean what are the LPS don’t know what’s happening in that market. A lot of times they haven’t visited the market themselves. They don’t know that, you know, you guys are just kind of driving the ship. Whereas another I mean, we just had the wind people on talking about that investment. Their business plan is different. So they’ll charge it just think of as a straight 2% 2.5% asset management fee. And they’re like, Look, you guys pick whatever you guys want, whether it’s garbage or really good or it’s trending upward or downward downwards. Look, we’re just here to facilitate your trade for you. Whereas I think you guys are cool investing side and you know, it can go up and can go down, but people like that they’re investing along with somebody who supposedly knows more than they do. But there’s a, you know, there’s a performance split, right? You guys get compensated when a deal goes well, as opposed to the other guys. They’re like, Look, you guys make your own decision. You guys are on your own. Oh,
Unknown Speaker 51:39
well, I mean, compensated in a sense, right? Like, because we’re co investing, like if the if the asset as well, like we do well. And so it’s in our best interest to like, pick Well, yeah. And so, um,
Unknown Speaker 51:52
I think they’re, I mean, I think like from an investor’s perspective, you can’t have both. You can’t have just a straight asset management fee and have these guys curate your investments for you. Exactly that for free.
Unknown Speaker 52:04
So I mean coming from venture venture capital like this is not unlike that right, like we have limited capital to make investments in startups and we want to make the best investments possible you know, for the potential of returning capital to our investors, which so you know that you’ve probably heard of like two and 20s for instance, you know, there’s the 2% you know, sort of annual management fee for like capital has been deployed and then 20% on any capital returned. And so um, you know, you align the incentives like us have some some operating capital but the real money comes in, you know, 10 plus years for that any particular fund that is, you know, returning more capital than it took in for that fund,
Unknown Speaker 52:51
and all the ultimate that’s how the platform that’s the that’s the overarching thing is going to get popular help people make money off of it for them. Them You know, have a good experience, I need to make money. So I guess that makes sense. While you guys drive the ship, and so in a way,
Unknown Speaker 53:08
yeah, I mean, I think like, ultimately, it sort of cuts both ways. We want to pick things that have historically performed well. You know, there are some probably, like flyer type bets on, you know, let’s say a comic book for a new franchise that hasn’t been proven yet. For instance, you know, will like nobody knew that Guardians of the Galaxy was gonna blow up like it did, like guardians is like, super obscure. And most people had no idea who the guardians were, but everybody knew who x men the x men were, I don’t know about you, but I used to watch that x men animated series as a kid has the world’s greatest sort of opening theme song. But the movies didn’t do half as well as let’s say Iron Man, even Iron Man was kind of like, obscure. And so I you know, I think like a lot of this is being driven by You know, what’s going on in pop culture today? You know, so, so we are trying to find assets that either head those off has historically performed and actually, in terms of historical performance, um, you know, has been moving up into the right over time. And so, you know, any investment you should generally look at, as, you know, being long on. And so we, you know, sort of provide data for as far back as we can get it, but at minimum of 10 years, so, like, I’ll say that, like, for instance, our last asset that closed as of this podcast about a week and a half ago, um, you know, is, is an asset that I think has been increasing about 28 or so percent year on year compounding, and so, yeah, it’s done pretty well.
Unknown Speaker 54:56
I will say, cool. Yeah, we um, good luck. Got a lot of insights out of Nori investing but you know, your, what you guys are up to, once you give you folks your contact information, or just the URL for to check this thing out.
Unknown Speaker 55:12
Sure. Um, so the company is called mythic markets, we are at mythic markets.com if get to the bottom, I think there’s probably a link there too. And yeah, so that’s my email, happy to talk to anybody who is interested in, in the platform, happy to answer any questions that you might have. And yeah, we’re excited to continue bringing, you know, all aspects of pop culture to you know, make that investable. And yeah, we’re we’re super excited to do it.
Unknown Speaker 55:44
Yeah, let me know something cool comes up like Thor’s hammer or something like that.
Unknown Speaker 55:49
So So I mean, there are there are that that may be a new sort of frontier for us, certainly. But I will say the next thing that we are preparing to launch is Amazing Fantasy 15 which is the very first Spider Man. And that’s super exciting for for us.
Unknown Speaker 56:05
I like a lot of like, Final Fantasy like, like the video game stuff like Chrono Trigger, and
Unknown Speaker 56:11
I’m a huge RPG fan myself. Yeah, and I could geek out with you all day on that.
Unknown Speaker 56:16
Yeah, but you guys aren’t trading any kind of that stuff.
Unknown Speaker 56:19
So you in terms of like the video games?
Unknown Speaker 56:21
Yeah, yeah, I’m not too big of a comic guy. I like the MCU movies for sure. But like, I like the video game. That’s what I grew up with. Right? I mean, everybody says, Oh, you live in Hawaii, sir. No, I was just some engineer guy who just had to study all the time. They made video games and ate junk food.
Unknown Speaker 56:41
I mean, video games is another like potential asset class for us. Right. So like, like, for instance, in original sealed, Super Mario Brothers, I think is like $100,000. As a fan of like Final Fantasy, I got introduced to it with Final Fantasy two Us two and three, four and six in Japan. And obviously seven sevens, the new remake is is out now, at least the first part of it, and you’ll continue to build renewed interest in in these franchises. And so yeah, just like the film’s like there’s a lot of stuff driving the popularity of these franchises today.
Unknown Speaker 57:23
I’ll tell you what, like know that Final Fantasy three? I don’t know what it was in Japan, but it was six. But like my game like glitched This is my claim to fame when I was before I turn age at 20 years. I had that gaming glitch, and you know that Paladin shield was Some Like It was like a super item. Right glitch and I got 99 of them. Nope.
Unknown Speaker 57:47
I bet that’s that’d be worth a lot of money.
Unknown Speaker 57:49
I don’t know if you could. Well, if you could sell digital assets back then. Probably right like that’s what happens sometimes when you use the Game Genie or I’m Maybe dating myself with that reference but oh yeah,
Unknown Speaker 58:03
yeah the whole Yeah, but this is there was no game Game Genie involved in this and it was just full on like luck of the draw. Right yeah,
Unknown Speaker 58:12
yeah, but cool man. Um we’ll geek out on this later but people are probably falling asleep interested
Unknown Speaker 58:21
but I appreciate y’all
Unknown Speaker 58:23
Thank you for having me. This website
Unknown Speaker 58:29
offers very general information concerning real estate for investment purposes every investor situation is unique. Always seek the services of licensed third party appraisers and inspectors to verify the value and condition of any property you intend to purchase. Use the services of professional title and escrow companies and licensed tax investment and or legal adviser before relying on any information contained here. Information is not guarantee as in every investment there is risk. The content found here is just my opinion and things change and I reserve the right to change my mind above all Else do your own analysis and think for yourself because in the end, you’re the only person who is going to look out for your best interests.