Kevin Harrington, Dave, & Walter Discuss Freedom Venture Fund I

Eric Wilson
November 12, 2020


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KevinHarrington, John Dessauer, Walter Novicki, Dave Seymour


Kevin Harrington  00:06

As ashark, I certainly understand prey and predator.


Dave Seymour 00:22

We areready to explode into the multifamily arena.


Kevin Harrington  00:37

I liketo see things that have I say continuity


Walter Novicki 00:46

I'mlooking for investments that are going to keep our investors safe and secure.


John Dessauer 01:02

Hi guys,my name is john does our We're here at beautiful champions walk apartment homesand beautiful Bradenton, Florida. I'm here with the leaders at freedom ofventure investments. I've had a chance to sit down with them, including DaveSeymour from a Emmys hit show flipping Boston, Master investor, Walter No,Vicki. And last but not least, Kevin Harrington, the original shark from SharkTank. This the hit show of ABC and CNBC. So we're gonna go through three majorthings here. Number one, we're going to be talking about some of the challengespeople are having with investing today and getting to retirement. Number two,why things like real estate, why things like investing in apartment homes, andfinally how those things can get you to retirement, possibly, when we'reamongst a lot of challenges today. So guys, let's get to it. So Dave, you know,from the Amy's hit show flipping Boston, let me ask you a question. Why getinvolved in this one multifamily apartment buildings? You're known as theflipping guy? Yeah, john, it's,


Dave Seymour 02:09

it'shot. This market is hot. Kevin, I don't know why you live down here. All thetime. Right? I got to get used to it. Look, I am I'm known as as the flippingguy, right? The star of a nice TV show flipping Boston. But here's the thing,the truth of the matter, john, is that I've always been involved in commercialreal estate man, I've always understood the power of cash flow, right? cashflow coming in on a consistent basis. You know, people know me as the flippingguy, because it was a good TV show. And I'm sure Kevin would appreciate thattoo. Right. And so you got to make a show? Well, commercial real estate isn'tshow worthy. It's not sexy, right. However, the market has demanded that we payattention to the commercial real estate marketplace. Now more than any othertime. So what I did was was I scoured the nation for some of the very, verybest in the business. I consider Walter to be the best in the business. Ipulled him into our company, and we are ready to explode into the multifamilyarena, especially down here in the Florida market.


John Dessauer 03:13

Perfect.Well, let me ask you this. Speaking about investing, the typical investor,yeah. What do you think, you know, let's say that they have a little bit ofmoney set aside for retirement. You know, what's their plan? What's thattypical investor going through with everything going on today?


Dave Seymour 03:29

You knowwhat, john, it's, I've been asked that question many, many times by manydifferent people to be frank with you. And here's what I've discovered is thisis that America tends to be sold to just one idea when it comes to retirement.We're probably all very familiar with the with the 401k that we got with ouremployer, right? You, we've probably all experienced at some point or another.And yet nobody ever seemed to ask questions about it. And I was always theperson who wanted to ask questions. Ah, right. As a firefighter and aparamedic, it was a good city pension was the plan. And the plan didn'tmanifest itself. So retirement today, and the average American family seems tohave a challenge when it comes to retirement look, some do and some don't. Iget it, there's no right or wrong. But what I noticed was this is that therewere fees that were being charged inside retirement accounts that very fewpeople know about. And when you started to look at what fees were doing toretirement, it created an opportunity for us to offer what are calledalternative investments. And an alternative investments obviously gives abetter rate of return than most other vehicles in the marketplace. Soinvestigate, understand exactly what's out there. And then take action on it isthe best advice I could give.


John Dessauer 04:41

Okay, soDave, let me ask you, uh, you know, you're talking about commercial real estateand you know, we're here at the beautiful multifamily home development here.But why apartment buildings why multifamily? Why not office buildings, why notread? You know, some of the others john,


Dave Seymour 04:57

greatquestions. Those are great questions, and they need To be asked, and the answeris very, very simply This is that if we look at what COVID has created societywise for us today, who ever thought that we wouldn't go to the wall, whoeverthought we wouldn't go to the office? So why would you want to invest in anasset class that looks like it's going to depreciate rather than appreciate?Because investors want appreciation, obviously, we want to protect theircapital going in, and then we want that appreciation. So it's real simple,john, multifamily commercial investing, as outperformed all other all othercommercial real estate asset classes consistently, when we do a 20 year lookback. So why wouldn't you want to be investing in a multifamily arena? If youhave the capital to do so? It just makes sense. JOHN,


John Dessauer 05:48

you'regoing where the attention is? right? Correct. Amanda?


Dave Seymour 05:51

Yeah,right. Yeah. Okay.


John Dessauer 05:51

Allright. Cool. Well, we're on that that line, what I'm always interested by,especially with everything going on today. Yeah. The average investor, youknow, there there have some challenges today, you mentioned COVID. Yeah. Whatare things like COVID? You know, all this, you know, stimulus and printingmoney? And what's with the general economy? The challenges there? What does theaverage investor what can they expect? Oh,


Dave Seymour 06:15

man,this seat just got a little hotter. Thank you for that, man. Look, we printmoney, right to solve an issue. The government has done the best it can or theworst that can depending on which side of the fence you're sitting on. And I'mnot going to play politics, but I will bring some common sense to the table.And the common sense is simply this is every dollar that is printed, devaluesthe currency devalues money. So what are people doing out there to hedgeagainst inflation? Because inflation chews up? retirements, inflation chews upvalues, it just it just the fact Yeah, so we're always looking at whateverlevel we invest that we're looking for opportunities to hedge againstinflation, hedge against the devaluation of the dollar. And we have identifiedmultifamily investing to be the perfect vehicle to do that. If an investor isout there looking at the landscape right now, let's be frank, they're scaredthat everything that was isn't Yeah, it's like Alice in Wonderland. Right noweverything that's up is down, everything is down is up. Yeah, well, thatcreates massive opportunity. So we put our investors in a position where weprotect principle, we hedge against the downside, accelerate the upside,because I can't compete with the whole economy. But I can definitely dial in myskill sets on this piece of the economy. So it makes sense.


John Dessauer 07:37

It doesmake sense. One of the things I always think about is the traditional ways thatpeople invest, you know, you mentioned the 401k, and, you know, even like IRAs,and things like that, let me ask you this question, What do you know? Or what'syour experience with those two things, the 401k plan, and say, an IRA, that youcould let our viewers know, that would make that'd be a game changer that makea difference.


Dave Seymour 08:01

Iremember the first time some I'm gonna, I'm going to talk directly to thepeople watching this because I think is important. I remember the very firsttime somebody said to me, I could take my own retirement dollars, and directthem myself. And what I learned as an investor was is it's kind of like ahidden secret. I mean, we know it, right. We know it. We've known it for years.But it's a hidden secret that there are vehicles called self directed IRAs,individual retirement accounts, and then also what's now called a solo 401k,which is where somebody can roll over a 401k account into a directable vehicle,so that they now choose what they're going to invest in. And the truth of thematter is, is you can only choose to invest in something if you want to standit. Yeah. Which is why we are so bullish for one of a better term on investing.And, and educating our investors into the asset classes that we have so thatthey can accelerate retirement


John Dessauer 08:54

sidenote quick, throw a wild card at you. If that's the case, why is it like WallStreet? And why is it you know, those?


Dave Seymour 09:05

JOHN,john, john, that's unfair, isn't fair? Look, I'm not gonna tear somebody downso that I can build myself up guys. I mean, it's just not in my DNA to be thatkind of a person. But what I will tell you is this is that we live in a societythat's capitalistic, right? We make money, Kevin's make billions of dollarswith the, with the with the product with the products of these bought to marketand that's fantastic that good products that people want. Well, this is thesame thing. Wall Street will not be talking about private equity real estatefunds, because Wall Street doesn't financially benefit from what I do, youknow, benefits from what I do. My investors join, my investors benefit. Theyadd the ability to be in a sandbox, if you will, at the highest level possiblein the commercial real estate world that most people will never have anopportunity to even look at, yet we find a way of bringing them in. So that'sthat's why Wall Street isn't buying an asset. sandbox cuz they don't make anymoney


John Dessauer 10:02

and youcut them out and that goes to your investors. Right? All right, last question,Dave. This is gonna be a



highlightnot so fun.


John Dessauer 10:10

I'mgetting personal on this. I know you got Yeah, you got three kids, you gotthree boys. So that's got to be a who just hanging out with you at home withthree boys? That's got to be awesome. Yeah, let me ask you this, what would youtell your three sons? If they even if they were accredited investors mean theyhad a certain level of income or a certain net worth? Yeah, what would you tellthem to give them the best chance chance at a quality retirement?


Dave Seymour 10:34

Look,it's it's about aligning yourself with a team. It really is, you know, freedomventure investments in the fund was created with the very, very bestindividuals so that people kind of align themselves with a team. If you thinkabout it, Kevin, and all the products that you bought to market, you didn't dothem all on your own. You bought them to market with a team. Walter, every timeyou've taken an asset, increase the value of that asset over time, you didn'tdo it all on your own. You did it with a team. Absolutely right. It's team teamteam. And when you identify the very, very best at any specific industry orprocess, then you find a way to get in with that team and identify with themright to accelerate. I always talk about acceleration of capital. Yeah, ifmoney is sitting still we know it's dying. Right? It's dying on the vine. YouYou have a moral responsibility to not kill capital, right? So find the rightteam is what I tell my boys always, you know, somebody said to me one time,show me who somebody gets their financial advice from. And I'll show you whattheir financial future looks like. That's good. That one got me. Yeah, that onegot me. You know what I mean? So that's what I do with my boys. I tell them tonot work in a business owner business and have the


John Dessauer 11:47

moneywork for them and have the money without him. Yeah, right. That makes a lot ofsense. That makes a lot appreciate it, man. Thanks. So as I said earlier, wehave the awesome opportunity to sit with one of the original sharks on SharkTank, Kevin Harrington. So, Kevin, I've been wanting to ask you this questionfor a while now. What's your take on the business climate today?


Kevin Harrington  12:08

Well,today, it's a great time to own a business. There's tremendous tax advantages.And let's talk about the technologies that exist, the Amazons of the world, allthese different kinds of software's that allow you to ship products, faster,track them, etc. It's unbelievable. And so one of the things I see in themarket, though, is people get stuck. They, they don't know what to do, where togo. And I just believe that, I mean, why is Shark Tank such a big show? Right?They want to come on, they want to pitch those sharks get, you know, be alignedwith them. And I think this is the challenge is people look for experts to helpthem. And I think now is the time to do it. So if you've got that idea, and youneed help to grow your business, get it started, because you've got theadvantages, tax wise, technology wise, but also the advantages of havingexperts, like the sharks and or mentors out there in the marketplace to helpyou do that.


John Dessauer 13:02

Okay.All right. You know, I can't imagine your life, everybody's got to be pitchingyou on ideas and businesses and that type of thing. So you're bombarded withthis. I'm curious, what gives you a reason to invest in a business? Why wouldyou want to invest in a business,


Kevin Harrington  13:20

one ofthe first things that I look for is the right team? I mean, think about it. Ifsomeone's pitching me for money, and I'm going to write that check. I got toknow what are they going to go do with that? investment? Right. So I want theright team. I also like an industry that has high demand, low supply, likewe're talking about, right, right. Dave is has been telling us all about themultifamily industry. And so this means also though, sharks, they want targetedreturns, right? I mean, we want to know that there's a business plan, there'sgoing to be some leverage may be scaling, you know, people come on Shark Tank,because they want to scale their business, they want all of those kinds ofthings, and ultimately, the growth and and the financial success that isavailable to them. So that that's really part of the process here. It allstarts though, with investing in the right team up front.


John Dessauer 14:16

SoKevin, you know, when I think of investing in businesses and investing inanything, investors have to think about risk. So I'm curious, what are some ofthe security features you look for in a business or in an investment that youwould take into consideration before investing?


Kevin Harrington  14:34

Sothat's a great question, john, I think when I look back at my life, I investedin a lot of risky things over the years. Now, fortunately, I was lucky, okay ona few of these because when you invest in a product, and it goes up, and thenit's done, there's no there may be no asset there to continue. It's sort of abell shaped curve, sales, sales, sales, then it dies, and you're dead. Well,with real estate, it's the exact Opposite Yeah, you invest in it in an asset,that hopefully it's always going to be worth what you paid. But maybe it'sgoing to appreciate as we've seen for years. And so that is the safety and thesecurity that I look for. And this is why I'm looking towards real estate now.Because for all the years I've been doing what I do, it's been crazy, and sortof gun slinging kind of an industry, billions of dollars, but I'm notrecommending anybody else out there, take my same path. Now, I'm taking thepath of safety and security, because when I focus on those two things, and theassets that are created, you know, again, we look for experienced team, we lookfor transparency, confidence in the marketplace, and this then is going to giveus better performance in the long run. So that so that's me, I'm looking forsafety, security, a great team better performance, and and not allowing folksthat are out there to end up with the wrong people.


John Dessauer 16:00

Yeah,yeah. Good. Good. info there.


Dave Seymour 16:04

I got tointerject there, because I loved what you said there was one word in that itreally hit me. And you talked about some transparency. Yes. And we've had theseconversations off camera, where there's not always transparency in a deal or ina market. Right. And that was one of the things that was very important to uswas the way we structured our fun. And our investor experience was to be fullytransparent with its own. Thanks for hitting that back. Because it's important,Kevin.


John Dessauer 16:30

SoKevin, you're on you're you hit the mark, there, you added some good input.Shark Tank is a perfect example of this. And even flipping Boston when you guysare you know that they're flipping houses, you're doing it for wealth building,when the people are coming on Shark Tank, and they're pitching new ideas.They're doing it for wealth building. So this idea of building wealth, thisidea of financial freedom is so important to so many Americans. Kevin, what doyou think is the main barrier why people can't get to financial freedom?


Kevin Harrington  17:02

I thinkthere's one main thing, it's the fear of taking risk. That's it. I mean, thinkabout it. And by the way, when somebody goes on Shark Tank, there's no riskthere. Because they're they're pitching for, for money from the shark. That's,that's not there's no fear there, because they just hope to get the investment.But on your own people are afraid to take that risk. And I say it's theinability to act now. And one of my first books I titled act now. And you knowwhy? Because people would come to me all day long. And tell me, I had that ideafive years ago, 10 years ago, and somebody took my idea. I'm like, No, you hadit. So did they, but they acted upon it. So now is the time really to act. AndI think that's it's the fear of taking the risk, the inability to act and beingafraid and you can't. And again, you get back to this team that has beenassembled here. The experts in this real estate area, you don't have to beafraid.


John Dessauer 18:01

Yeah,more. So you're on the board of advisors here at freedom venture investments.You know, I've known this guy for a long time. Why this team? Why this fun? Whythis group?


Kevin Harrington  18:13

Well, soI've obviously launched products and businesses, I've invested in hundredsalong the way, and maybe even more, but it again, I explained before productshave a bell shaped curve, right. And I like to see things that have I saycontinuity. Well, continuity is someone paying rent every single month that'sliving in your facility in your investment of a multifamily. Right. That'scontinuity. And that's also you get appreciation, tax advantages, and we'veused the word leverage, right. That's, that's another big part of of this. So Ithink that, you know, yes, sharks loved it to see this, but they're all ofthese things. But there was one other thing that was really kind of the icingon the cake for me to jump in with these guys. They're in my backyard. Yeah,here we are. I live in St. Pete, Florida. And, you know, we're more of the basegroup of guys looking to go find some real estate, do some deals, but we get tokick the tires, because we're right here. And so when I found out, Walterlives, minutes away, you know, maybe an hour and a half or something, I think,you know, and and and ourselves here, we I said this is a group that I can seemyself with long time.



Gotcha.Gotcha. Thank you. Thank


Dave Seymour 19:29



John Dessauer 19:30

So lastquestion. You've done so much, Kevin, you've had 5 billion that's when the B,by the way. But the $5 billion are credited to you for in sales. You've hadtons of people pitching you on products and services on Shark Tank andelsewhere. What kind of advice or what would you say to somebody that is alittle bit timid about moving forward taking a risk investing in an investmentor a fund like this?


Kevin Harrington  20:00

Well,I'll say this. And so yes, as as a shark, I certainly understand prey andpredator. Okay, so the biggest predator in this world, you know what it is? time?Yeah, people always run out of time, because they don't act now. And I, I justwant to say we've been through some tough times out there. There's marketconditions right now, the experts here that are part of this group that aregoing to be able to help the folks not just understand it, but respect the timenumber one, because you got a deal like that, right? And don't be nervousanymore, because we have brought the right folks and you get to kick the tireshere. And it's all about spending time with the right people, surroundingyourself with the right experts. And, and that certainly is part of what we'vedone. And as a shark, I want to say that I don't want you to be the prey. Okay,yeah, you need to jump in, trust the process here. And, and, and we're here tohelp you. So Kevin,


Dave Seymour 21:02

I had amentor of mine, like we've talked about mentorship. I had a mentor of mineearlier on in my career. And he said to me do something or don't? Right, right.He said, what would it be like? If you did, what would it be like if you didinvest at the highest level possible with my best team? Yes. Imagine that for awhile. Yeah. And then he said to me or don't. And if you want to keep ongetting what you've been getting, keep on doing what you're doing. And itsounds kind of cheesy, but


Kevin Harrington  21:29

youalways do what you've always done. You'll always get what y'all got. Right.Yeah. So now is the time


John Dessauer 21:34

Yeah,for sure. That's not bad for my kid from Oklahoma.


Dave Seymour 21:39

Oklahomavia London via West Virginia via Boston.


John Dessauer 21:43

Yes.That's cool. That's cool. So we're also here with, you know, what I call you,master investor. Want to know, Vicki, and you know, you've had a ton ofexperience in commercial real estate. And you guys are doing here with freedom,venture investments, and in particular fund one. How's that different fromeverything that you've done in the past?


Walter Novicki 22:04

That's agood question, john. I mean, I've been in real estate from various angles forover three and a half decades. Wow. Yeah. Two years, got a few years to gray.Yeah. And I've done quite a bit, as you said, in commercial, everything fromretail development up to hospitality. Now, what makes fun one different, greatquestion. What we're looking at now is we're looking at the multifamily arena.And quite frankly, that is where my heart is. I love that it's an exciting,exciting opportunity for us, not only because of what's happening in theeconomy in general, but also what's happening in the housing market. So it'screating opportunities for us. And we're in a position here being in the GulfCoast region to take advantage of a market that I've never seen this. Neverseen this before. Yeah, opportunities here.


John Dessauer 22:51

So Well,let me ask you this, you know, your Chief Investment Officer here at freedom,mentor investments? What are some of the things that you focus on in thatposition? What are you looking for in an investment itself?



Well,john, the first thing we're looking for is safety and security. And okay,that's the number one priority with us. So when I go out, I'm looking atinvestments, I'm looking for investments that are going to keep our investorssafe and secure. Now, the second thing that we're looking for is we're lookingfor core plus assets that allow us to bring some some very sophisticatedstructured financing the bear. Now that's going to do two things. Number one,it's going to properly capitalize the asset. The second thing it's going to dois it's actually going to improve cash flow, improved cash flow, improvedinvestor return.


Dave Seymour 23:36

Okay.Okay. So invest in return is paramount for you. Absolutely. guaranteeAbsolutely. Well, for the folks that are watching this, like you and I andKevin, on we all understand coal plus, right? Do me a favor one sentence tellthe people that are watching this, what does that mean for us as investors whenwe say coal plus?



Well,when we're coming in, and we're acquiring a property, excuse me a property or aproject that's at the core plus level? It's an asset that's already producing?Right? Okay, so it's an apartment complex like this, right? That is at 95%occupancy. So it's cash flowing? What we're doing is we're bringing in ourexpertise, we're bringing into professional management, okay, we're bringing inthe rehab specialist, they're going to help us number one, capture that 5% thatwe're missing. But number two, improve the product, bring it up to thestandards that needs to be at so that we could take rents to the market level.Increase an noi, what's that do increases value? Bingo.


Dave Seymour 24:31

So I hada conversation with an attorney locally, and I was trying to explain to himwhat it was, and I was giving him all of the language and the terminology. Andthe attorney turned around. He said to me, Dave, stop with all the terminology.I said, What's your problem, Kevin? His name was Kevin. He said, he said,basically, what you're telling me is, is this is like your TV show flippingBoston, only it's on steroids. And he really simplified it down. And that'sreally what we do. We take a complex Like this, increase the value throughrepairs management and tenancy, and that increases the value of the assets.



Ithought I'd just go out there. Appreciate you put it.


John Dessauer 25:11

Alrightguys, we got to get back to work. You guys,



come on,


John Dessauer 25:17

I tell astory, lots of different people when I was talking about this to you, I tellthe story of how I went to bed at 25. I woke up at 50. I know I don't look like50 Thank you. But I woke up at 50. And I realized how fast time passes kind ofgoes by what you said, Kevin? It's a predator. That's the big, you know. So myquestion was, is one of the hazards of somebody waiting to invest? What arethey missing out on? Or what would that stop them from getting possibly?



Well,it's 72 is what it comes down to the rule of 72. Okay, we all know it. It'smore than just a parlor trick, though. What the rule of 72 is, is it's theunderlying thesis of compounding interest. Albert Einstein said what he said,compound interest eight wonder of the world. If you wait, time is your enemy.You want to start now? Yeah, it could make the difference in a portfolio.Hundreds of thousands, if not millions of dollars.


John Dessauer 26:14

Yeah,that's you mentioned Albert Einstein. These are what is this one of yourfriends.


Dave Seymour 26:19

At theend of the quote, he said he who understands it earns it. Right. I didn'tunderstand it when I was working in the fire department. Right. So


John Dessauer 26:28

he alsodid some things with outer space and what Yeah, right, exactly. So let me askyou this. Well, what? What would you tell somebody if you were telling themwhat fun was fun one was a freedom venture investments in general, give us a30,000 foot look? Okay.



Well,you know, let me get the little disclaimer out there. And from an SECstandpoint, it is a reg d 506. c filing. Okay. So what that does is that doeslimit our audience to accredited investors only. So, you know, accreditedinvestor, single individual making over 200,000, married couple making over300,000, or somebody with a net worth over a million dollars, excluding theequity in a primary residence. Okay, so this is a fund that's targeted forthose people. Now, it's 100 million dollar offering. And what we're looking todo is we're looking to come into the Gulf Coast region, and take a very seriousposition. We see things happening in the economy, obviously, the alpha roomsCOVID, that's going to create massive buying opportunities at discounted pricesfor anybody that has to dry powder, the cash to get into the market. So we'rethere to take advantage of that. But when we look at what's happening withhousing, the demand in general, and then we take it to the Gulf Coast, youknow, we have 1000 people a day that are moving to Florida. Well, guess whatthey need? Yeah, they need places to live. Yeah, yeah. Yeah. opportunitieshere.


John Dessauer 27:53

Howwould somebody get involved what's their next steps from here, if they're, theywant to get involved in the fund. If you



go toinvest dot freedom ventures calm, okay. on that site, what you're going to dois you're going to have the opportunity to just register. Once you haveregistered, you're going to have access to everything that's on the site. Soyou can actually look at the private placement memorandum, which is thedocument that has all the you know, the the information, the details about thefund and the managers, okay, you're also going to have opportunity to go in andlook at the SEC filings. So what I recommend you do is go in, get registered,take a look at the document, and then Schedule A 30 minute meeting with one ofour team members.


John Dessauer 28:30

Okay, soinvest that freedom put a link down below. Yeah, for you. Yes. Itmakes it returns go this way. Gotcha. Well, great, guys. I just want to thankyou so much for taking the time. I know it's helped so many people talk notonly about investing in general, but investing in real estate, in particularmultifamily, through the fun of making gay guys gave a lot of insight. Andagain, I just appreciate your time.


Dave Seymour 28:59



Kevin Harrington  29:00

Thanks.Great to be here. You know what I really love. This is a great team that's beenassembled. And again, that's what sharks look for. Look for that team and we'veassembled it and we're excited.


John Dessauer 29:12

Great.Thanks a lot, guys.