Want Money Got Money with Sam Kamani

24: Insights from the founder & president of a private lending bank - Jeremy Hill

October 07, 2020 Sam Kamani, Jeremy Hill
Want Money Got Money with Sam Kamani
24: Insights from the founder & president of a private lending bank - Jeremy Hill
Chapters
Want Money Got Money with Sam Kamani
24: Insights from the founder & president of a private lending bank - Jeremy Hill
Oct 07, 2020
Sam Kamani, Jeremy Hill

My guest today is Jeremy Hill a 🇺🇸 Seattle based investor. He is the Founder & Managing Partner of JB Capital. 

Jeremy has been in the real estate, investment banking and advisory business for over 20 years.

JB Capital is a direct private lender providing responsive, creative capital solutions to privately held, middle market companies and small corporate borrowers.

JB Capital has three quarters of a billion dollars in transactions and advisory work for growing companies across North America. 

Key topics discussed in this episode.

👉 How Jeremy got starting in private equity and merchant banking

👉 What successful founders do differently

👉 Where opportunities exist in the post covid world

👉 How founders should think about getting investment


You can find out more about JB Capital here:-
http://jb-capital.com
https://twitter.com/gojbcapital
https://www.linkedin.com/company/jb-capital-management/

and you can connect with Jeremy here:- https://www.linkedin.com/in/jeremy-hill-a0350a3/


Book recommendation:-

10X by Grant Cardone https://www.amazon.com/The-10X-Rule-Grant-Cardone-audiobook/dp/B005DGW34C/ref=sr_1_1?dchild=1&keywords=10x&qid=1601881793&s=books&sr=1-1

Billion $ whale https://www.amazon.com/Billion-Dollar-Whale-Fooled-Hollywood/dp/031643650X


Podcast recommendations:-

Andy Frisella - MFCEO

Dean Graziosi Podcast

Oprah podcast

Goldman Sachs podcast

If you enjoyed this episode then please subscribe, I will be interviewing other successful founders and investors to provide you a shortcut to success.

Follow instagram:- https://www.instagram.com/wantmoneygotmoney/

Show Notes Transcript

My guest today is Jeremy Hill a 🇺🇸 Seattle based investor. He is the Founder & Managing Partner of JB Capital. 

Jeremy has been in the real estate, investment banking and advisory business for over 20 years.

JB Capital is a direct private lender providing responsive, creative capital solutions to privately held, middle market companies and small corporate borrowers.

JB Capital has three quarters of a billion dollars in transactions and advisory work for growing companies across North America. 

Key topics discussed in this episode.

👉 How Jeremy got starting in private equity and merchant banking

👉 What successful founders do differently

👉 Where opportunities exist in the post covid world

👉 How founders should think about getting investment


You can find out more about JB Capital here:-
http://jb-capital.com
https://twitter.com/gojbcapital
https://www.linkedin.com/company/jb-capital-management/

and you can connect with Jeremy here:- https://www.linkedin.com/in/jeremy-hill-a0350a3/


Book recommendation:-

10X by Grant Cardone https://www.amazon.com/The-10X-Rule-Grant-Cardone-audiobook/dp/B005DGW34C/ref=sr_1_1?dchild=1&keywords=10x&qid=1601881793&s=books&sr=1-1

Billion $ whale https://www.amazon.com/Billion-Dollar-Whale-Fooled-Hollywood/dp/031643650X


Podcast recommendations:-

Andy Frisella - MFCEO

Dean Graziosi Podcast

Oprah podcast

Goldman Sachs podcast

If you enjoyed this episode then please subscribe, I will be interviewing other successful founders and investors to provide you a shortcut to success.

Follow instagram:- https://www.instagram.com/wantmoneygotmoney/

Jeremy Hill: [00:00:00] And so I think that there's something for entrepreneurs that are successful.

[00:00:03] It is, is that. They're resilient. They just, they find a way it is for, for it to just be water off their back. I think that's one, I think the second thing too is that you, you have to learn how to live. In the eye of the storm, right? Like there is there always going to be distractions. They're always going to be things that is that say, you know, Sammy, just, you shouldn't go to this meeting or it doesn't matter.

[00:00:31] Or, you know, you're either going to invest into payroll or you're going to pay yourself. Or, and if you don't pay yourself, then that means you and the wife and kids are eating top ramen again this month or something. Right. You know, Right. You're always going to be in a situation to where there's trade offs and things to distract you from what you're, where you're going and successful entrepreneurs figure out a way to kind of live in the eye of the storm.

[00:00:56] Sam Kamani: [00:00:56] Hello, dreamers and action. Degas. Welcome to another episode of want money. Got money podcast. I'm your host, Sam Kamani. 

[00:01:04] And my guest for this episode is Jeremy. Hello? Jeremy Hill is the founder and president of JB capital. Now JV capital is a merchant bank that provides creative tailored solutions through provision of capital strategy and operational support. 

[00:01:23] so Jeremy, Val come to the show is great to have you here. I've been waiting to talk with you and learn more about you. Um, so yeah, Jeremy, what are you up to these days and what are you excited about these days? 

[00:01:36] Jeremy Hill: [00:01:36] Oh, I'm excited about a lot of things, right. And now I'm excited.

[00:01:39] It is that it is no longer raining in Seattle and the sun has come out and, you know, sometimes we get to find simple pleasure. So I'm certainly excited about that, but. Uh, definitely excited about it. You know, what it is that we're seeing, uh, you know, not only in the economy and the change in that, the craziness of as that's going on amongst COVID, you know, anytime it is that there is a, um, you know, a big market shift or market change, there's always an opportunity.

[00:02:05] And. Yeah. And maybe disguised as something else that we weren't planning, but, um, I am confident that that for you and your business and what you're doing and me and mine and the guys that is, that are listening to this, that there's going to be new ways. It is that we're going to begin to adopt and change and move or businesses towards that.

[00:02:25] We, that we wouldn't have thought about before. If we weren't forced. Because of all this coping craziness to begin to think this way. And so I'm seeing some changes in my business that I'm really excited about. And so, uh, you know, looking forward to see what tomorrow holds that's 

[00:02:40] Sam Kamani: [00:02:40] great. Um, 

[00:02:41] Jeremy Hill: [00:02:41] and talking about your business, 

[00:02:43] Sam Kamani: [00:02:43] um, would love to know a bit more about JV capital and what does JB capital do and how you got involved with 

[00:02:50] Jeremy Hill: [00:02:50] it?

[00:02:52] Sure, absolutely. This is the wonderful working at home. Right? There's my security system with the dog barking. 

[00:03:01] Sam Kamani: [00:03:01] That's all good. . 

[00:03:02] Jeremy Hill: [00:03:02] So it's, you know, it reminds me any more. So now, Uh, you know, there's what 18 months ago, or so there was all of the conversation going on around Brexit.

[00:03:12] Right? And so I remember watching this interview, I remember watching this interview. It is with. Somebody was doing an interview with BBC and all of a sudden his, his, you know, baby comes and the wife is going crazy and grabbing him. And, you know, the guy was just.

[00:03:28] Mortified. It was mortified. Right. And now that's just Tuesday, right? Like I know everybody know Betsy, you know, Doug's right. Yeah. Whatever else. Right. So forgive me for that. So for me in my business, so JV capital, I have been in the investment banking and advisory business for about 20 years. And so, uh, our primary business really had been in advising companies that were past the friends and family, mom and dad, rich uncle round of raising money.

[00:03:56] But they really weren't yet to a point to where they could warrant it attention from anybody with any real capital. And so we did about three quarters of a billion dollars in transactions and advisory work for growing companies across the country. A lot of success, a lot of fun made a lot of money, made a lot of great about a year ago.

[00:04:13] Um, we made the election. That is where I made the election to move out of the middle and form basically our version of a private bank. So now, rather than advising these, these. Families and family offices and different private funds. We're writing the checks off of my balance sheet and our investor's balance sheet.

[00:04:30] So all that means in a long winded way of saying it is we operate like a private version of a commercial bank to where we're making credit investments loans across North America is to growing businesses. We love getting involved. It is with, with good people that are doing great things. 

[00:04:48] Sam Kamani: [00:04:48] Oh, that's that's fantastic.

[00:04:51] Um, does JB capital only, um, give as a loan or does it also take a stake in the company? A bit like a venture capital firm, which takes a stake in the company as well? 

[00:05:05] Jeremy Hill: [00:05:05] Yeah, really? I mean, so there's, there's kind of two philosophies, right? There's yes, no equity or debt. Right. I executive in my brain, right.

[00:05:13] I've always in my brain, uh, tended to look at things more through a debt lens. Right. So just like you said, there's there's venture capital, private equity and angel investors in a number of different ways to just looked at things as a lender. So for us in our fund, I don't make equity investments. I make debt investments.

[00:05:33] Um, sometimes our debt investments will have, you know, warrants or something attached to it. So there's a little extra. Uh, um, you know, something that may come from us acting like we have equity, even though we really don't. Um, and really that is to hopefully ideally create a degree of kind of parody with us as wanting to be something more than just a lender.

[00:05:55] Right. Like, I don't, I don't want to just rent you money. Like I, I want to hopefully have more of a. A catalytic effect on what it is that you're doing with your business. Like, if, if, if the only thing it is that I'm providing Sam for his business as a checkbook, um, and I don't provide any other value than I shouldn't be giving you money and you shouldn't be taking it.

[00:06:16] Right. Like there needs to be more than that. And so hopefully we do a really good job of that. Excellent. 

[00:06:22] Sam Kamani: [00:06:22] And what sort of, um, businesses do you support that this sort of capital or what sort of businesses do you guys invest in 

[00:06:29] Jeremy Hill: [00:06:29] generally? Sure. So, uh, four buckets of capital. So number one, technology and technology enabled services.

[00:06:36] So think about software technology, machine learning, artificial intelligence, these, you know, company. And he said this that are moving that way. It is, that are using that type of technology, uh, in order to solve. Large boring, robust business processes, right? Like I like that world, uh, and where that's going, um, more of a catch all would be kind of business and business service.

[00:07:00] This is, so these are a professional services company. So think about a law firms, CPA firms, financial practices, insurance businesses, wealth management, business, that kind of a thing. Yeah. Um, and then two in that business business service side. Um, I really like, uh, consumer products and kind of food and beverage.

[00:07:16] I really like that place as well. Um, the third would be healthcare. And so in the healthcare space, um, we are, we are, I'm not really interested in, uh, drug development, life sciences, biotech, drug discovery. There's here in the States. There are there's candidly just. Far too much regulation that is early on to do this.

[00:07:37] And it's, and it's really kind of a big binary outcome. It's gonna work really big or it's gonna fail really big. And there's plenty of other guys that they're smarter than me to figure that out. So I don't pretend to do that. So for healthcare, I like. Uh, the kind of the healthcare MSA space. So, uh, you know, you own 20 optometry clinics and you want to buy open 20 more in California or something like that.

[00:08:02] Like, I like that business. I like the, the walk-in medical triage clinic, the 1-800-DENTALS, the emergency clinics. It is that you see in the corner, those are typically good cash cow type businesses, um, that need to grow. Right. So I like that world. Um, I love the med tech and health tech space. So the kind of the intersection of technology with healthcare, um, and then obviously with everything going on, that's code would the telehealth space has grown dramatically over the last 12 months.

[00:08:32] Um, we've made some investments in that space probably the last 10 years or so. And now that's. Definitely. Yeah, it's taken off crazy. Um, and then the last and final bucket is real estate. Um, and so about 15 to 20% of our overall portfolio allocation is in real estate. The other 80% is in normal commercial businesses.

[00:08:52] And so this is really meant to operate like a private version of a commercial bank to where, you know, the majority of our assets are. Normal commercial businesses, you know, Sam's coffee shop or restaurant or software business, whatever it is. And then, you know, you've got a real estate project as well.

[00:09:08] And so ideally for our investors creating not only a geographic, but an industry, diverse portfolio of assets, that's generating cashflow for our investors. So hopefully we're out of that. 

[00:09:22] Sam Kamani: [00:09:22] Fantastic. So you are, it is a diversified are quite agnostic in the industries that you invest because it's quite a wide 

[00:09:30] Jeremy Hill: [00:09:30] range.

[00:09:31] Yeah, it is. And, and candidly it's meant to be an and for us, I think, you know, as a lender now, I think private equity can do it different, right? Private equity or venture capital can do it different. Cause you can have a venture capital fund that's focused specifically on early stage software businesses or early stage tech or whatever it is as a lender.

[00:09:50] We have a little bit more flexibility in, in, I don't really care. Sam's businesses, software, healthcare, real estate, or, you know, beverage business, or one thing or another. Cause I'm, I'm, I'm just renting money for a little bit. Right. And so, um, my capital is really meant to be kind of temporary, right? It's it's for those businesses that is that the bank can't quite get its arms wrapped around, but you know, traditional private equity, uh, or larger private credit from an institutional approach, they, they really can't afford to pay attention to.

[00:10:25] So if you don't need to borrow 50 million, you need to borrow five. Yeah. Well, it's, you're in this kind of, you know, you're in purgatory, right? You're not in financial heaven, but you're not in financial hell and you, you know, you need somebody in just to kind of help you through that. And we 

[00:10:39] Sam Kamani: [00:10:39] bridge that gap.

[00:10:40] Jeremy Hill: [00:10:40] Yeah, we do a pretty, yeah, we do a really good job of that. 

[00:10:44] Sam Kamani: [00:10:44] No, that, that makes, that makes sense. I do have a question about, you know, I mean, maybe it's just me. I, I always saw, um, Tech startups as a much higher risk investment compared to say like a physical, you know, the just clinic you say, um, like a chain of clinics or something like that.

[00:11:05] Um, how do you price the risk or how does that work? 

[00:11:12] Jeremy Hill: [00:11:12] Yeah. I mean, so the, you know, the, the, the venture model, they're kind of the earlier stage tech model, you know, is really, I mean, it's different than where we're at. Right. And so I think one of the things, especially for startup guys and a lot of guys in your audiences yeah.

[00:11:26] That are listening, it's really important to understand. For you who you're asking money from. So if you're going to go raise money, Sam and Jeremy's software businesses, whatever it is that we're doing, right. If you're going to go raise money or we're going to go raise money. It, we really need to understand what, how we want it, that money to work.

[00:11:47]do we want that money to work in equity? Which means we're going to give up a percent of our business for, you know, Joe, the rich guy or venture capitalists to give us money, or are we wanting to try to see if we can, uh, borrow money for a little bit based upon, you know, the progress of our business and it's, and it's.

[00:12:02] In my mind, it's it's equities like marriage that is like dating. Right. You know, like, yeah. If I'm, if I'm borrowing money and a year from now, we don't get along. We don't have to date anymore. Right. That's fine. Right. But if, if Sam and Jeremy are, are raising money through, uh, you know, a venture capital firm and a year from now, I don't like you.

[00:12:21] Well, now it's kind of like you're in a bad marriage and it can be, it can be difficult to unwind that, right. You know, it can be expensive or it can, I mean, candidly could kill your business. So it's important for people to understand who they're talking to. And so, you know, the venture guys are really looking at stuff that are typically a little bit more early stage, ideally.

[00:12:43] Right. And they're looking at coming in and having their capital. For equity, I'm going to take a percent of ownership your business. They're looking at their capital coming in and actually having that capital ideally turn around and provide somewhere between a, a seven to a 10 times return on their money, invested in about a three to four year period of time.

[00:13:06] And so everybody's heard the old adage of, you know, the, the, the venture capital, the guy that looks at a hundred businesses, it is to get down to 10, to write one check. And of the 10 checks that he writes, you know, five or six of them are total garbage and they lose all their kids who are three of them do.

[00:13:21] Okay. And maybe one or two of them, they just shoot the lights out on. And, and they're hoping for those ones that is that they shoot the lights out on to make up for their losses on the other things. And so. For me, we can't afford to have any deals go bad. Right? So we, we, you can never map to a hundred percent perfection, but whereas a, a venture guy be mapping to a 40 or 50%, you know, default rate for lack of a better word that, that it's not going to go.

[00:13:53] Well, we mapped to like a 2% default rate. So it's, it's really just, it's a different philosophy and how it is that we look at things, how it is that we price risk. Um, and so for us, that's kind of how they work for me. I'm looking at, you know, kind of 11 to 13, maybe 11 to 15% is my cost of capital. Right?

[00:14:16] So I'm not equity, but I'm not your local bank either. Yeah, it's very interesting, 

[00:14:22] Sam Kamani: [00:14:22] very entrance first time. Um, I am interviewing someone who is, um, doing what you are doing. Cause most of the times I have interviewed people. They are, um, from the traditional, um, angel fund type or a VC, you know, just a VC background or even a public VC like government funded, VC.

[00:14:43] A few countries are starting to have that like government support for startups and all that. So it's, it's very interesting to find all these different places. And as you say, you guys are so different to just a traditional bank,  

[00:14:57] Jeremy Hill: [00:14:57] doing what 

[00:14:58] Sam Kamani: [00:14:58] you are doing, you would have met so many, , founders, , or intrepreneurs of small businesses and startups and all sorts of people.

[00:15:07], In your view, what do you think makes some founders or entrepreneurs stand out compared to others? 

[00:15:17] Jeremy Hill: [00:15:17] No, it's, it's, that's a fantastic question. And you know, I think a couple of things is, you know, number one is there's probably resilience. Like this is yeah. This is, this is going to command more from you than you think.

[00:15:33] And so you've had a couple of successful exits and I'm sure that you've advised and been friends with a number of people. And there's that, there's that thought of, if I would have known what it was going to take to get here, I don't know if I ever would've started. Right. And so I think that there's something for entrepreneurs that are successful.

[00:15:53] It is, is that. They're resilient. They just, they find a way it is for, for it to just be water off their back. I think that's one, I think the second thing too is that you, you have to learn how to live. In the eye of the storm, right? Like there is there always going to be distractions. They're always going to be things that is that say, you know, Sammy, just, you shouldn't go to this meeting or it doesn't matter.

[00:16:21] Or, you know, you're either going to invest into payroll or you're going to pay yourself. Or, and if you don't pay yourself, then that means you and the wife and kids are eating top ramen again this month or something. Right. You know, Right. You're always going to be in a situation to where there's trade offs and things to distract you from what you're, where you're going and successful entrepreneurs figure out a way to kind of live in the eye of the storm.

[00:16:46] Right? You find that little piece of sunshine in the middle of the thunder and the lightning and the crazy right. Um, Then I think the last thing really is too, is you, you surround yourself smart people. I am, I am smart enough to know. That I am exceptional at three or four things, which means I'm pretty, half-ass at about three or 400, right.

[00:17:13] So I need to bring other people around me, whether they're friends or employees or partners or advisors it is that can, that can help make up for my shortcomings. And a lot of times entrepreneurs want to. Bring other people around them that think just like them. Yeah. So, so then it becomes a kind of an echo chamber.

[00:17:39] Yeah. Sam and I always agree. He's just like me. He's a great guy. I'm a great guy, you know, and, and that doesn't, that doesn't move the business the way that it needs to be. 

[00:17:48] Sam Kamani: [00:17:48] Yeah. Look, I love that. The code that you just said, I had to make clips out of this. It is the thing that you say that successful entrepreneurs are comfortable with living in the eye of the storm and, and, you know, and a lot of them even thrive living in that sort of, 

[00:18:08] Jeremy Hill: [00:18:08] um, 

[00:18:09] and 

[00:18:09] Sam Kamani: [00:18:09] that has.

[00:18:10] Absolutely been my experience as well, talking with pretty much three founders every single day for the last year and a half. And that is that people who have come through through the most adversity, I find them the most interesting to talk with because. 

[00:18:31] Jeremy Hill: [00:18:31] They haven't been thinking about the guy that you interviewed tomorrow.

[00:18:33] You're interviewing this guy and he says, well, you know, Sam, I, I started my business. I met with one investor. He gave me $20 million. And then the next day we had a hundred customers. And by Friday, like I was totally rich. Right. Like who cares? I hate that guy. Nobody wants to hear 

[00:18:51] Sam Kamani: [00:18:51] the thing is what questions do I ask that person?

[00:18:54] I have nothing to ask. It's like, it's all sorted for him. Or you just inherited, you know what? Oh, I just inherited 20 million. And so I never even had to go and do the fundraising, never had to. Face any questions that the investors asked me. So there's nothing to talk about, but yeah, but it is, it is very, very interesting out of all the investments you have made, what is the one or two that have really stood out for you or have performed much better than your expectations?

[00:19:27] Jeremy Hill: [00:19:27] You know, I think really, and this is, and this is gonna sound cheesy, so forgive me. But I think the. The single best investment it is that I have ever made, um, uh, is in myself. Yeah, yeah. Is in myself. It's that? I was, I, I, for as long as I can remember, I have always been. Uh, reading. I have always been, uh, you know, before there was podcasts and audio books, I was always listening to a book on tape or listening to a seminar or going to a Tony Robbins deal or going to any, anything, anything, just, just, just investing into myself and into me.

[00:20:06] I bring into my psyche and those types of things, right? Like if you. You know, everybody is concerned with, with losing weight and getting thin and having bigger muscles and looking better in a bathing suit, all these kinds of things. And, and they, and they're willing to diet and go to the gym and do all this kind of thing.

[00:20:22] The things that they forget is that you also need to do mental pushups, right. And those, those mental pushups are. Come through listening to things like this, come through listening and learning on a podcast or going through a seminar, buying a book or reading a book or watching a unit YouTube. And, and I've always done well with that.

[00:20:42] Um, so I've invested there and then I've invested really heavily into my friendships and into my relationships. And a lot of the folks that is, that were business relationships 20 years ago. We're best friends now. And, and these people become your friends. They become your advisors. They become your psychologists.

[00:21:02] They, you know, they write in there that for me by far has been the best thing I've ever spent. Time and money in. 

[00:21:11] Sam Kamani: [00:21:11] Oh, yeah. I cannot agree more. Your network is your net worth. 

[00:21:17] Jeremy Hill: [00:21:17] That's exactly right. 

[00:21:19] Sam Kamani: [00:21:19] Yes. And your network enables you to be in the right place at the right time. If you are just isolated, you have no.

[00:21:27] Connections, no network. It is very hard to position yourself in the right place at the right time. That's what I have experienced in my last 20 years of, for hundreds of jobs and navigating, but being successful in business is because of my networks that I developed over time. And that's what I realized.

[00:21:46] Every single opportunity I've got is just because of my networks and the relationships I've developed. And yeah, I mean, That's that's perfect. Um, how did you get started into what you are doing now? It's like, it's not a traditional route for 99% of the people, or even more probably 

[00:22:08] Jeremy Hill: [00:22:08] that's exactly right.

[00:22:09] You know, for, for me, candidly, it was kind of by accident, to be honest with you. I, um, I had gotten into the real estate business, so this is 20 years ago. Now I've gotten into the real estate business. Um, I grew up to where it is that, uh, uh, my father and grandfather were both in the construction and architecture business.

[00:22:26] And so I've been on a job site since I was a kid. And I love watching buildings come together and love watching the tractors move dirt. And I could just sit. I just love it, man. It's great. Um, but I got on the real estate business here in the state of Washington and in about six months, I was totally bored.

[00:22:42] You know, there was about 25,000 different real estate brokers, and now there's 25,001, right. And everybody's smarter than the guy next door or down the street or whatever. And I thought, this is, this is a stupid business. And, um, it's not a stupid business. It's a great business. I mean, I've got lots of friends that are in that business and been wildly successful.

[00:23:02] It just wasn't the right business for me. And so, so I was meeting with a developer one day and we were talking about, about, you know, just him and he had a good reputation and. Uh, um, we get to talking and I said, well, you know, tell me about this next project. And he starts telling me he goes, but I think I'm going to list it with so and so, and I said, well, I'm not, I wasn't interested in listing your business.

[00:23:23] I just wanted to get to know you. And he's like, well, what do you mean? You're not interested in listing? And so we just, you know, because I wasn't there trying to hustle him, we just became friends. And so I, through the course of the conversation, I asked him, I said, well, Jeff, how are you? How are you financing all of this?

[00:23:40] And he says, Oh, well, you know, we have a little bit of our own money in the banks giving us a little bit. We have some investors that we have to go out to and so on and so forth. But for this next project, I'm about half a million dollars short. And I said, well, do you want, do you want help with that? And he said, well, yeah, And I said, well, you know, let's talk about the project and see what you need.

[00:23:58] And let me, let me see if I can help. And so in about three weeks, three or four weeks, I raised him half a million dollars. Um, I didn't charge him anything because candidly, I was too dumb. I didn't even know I was supposed to. Right. And so I was like, well, that was kind of neat, you know, learning and doing something else.

[00:24:12] And then maybe a month later, three weeks later, I get a call from another developer who says, Hey, Jeff, my friend over here told me that you helped him raise some money. I've got another project. It is that I'm working on. Do you think it is that you could help me? Uh, maybe. So I go and I sit down and have lunch with a guy and he kind of goes through the whole story and he says, well, Hey, I'm looking you know, for this.

[00:24:34] And I'm kind of short, you know, seven or 800,000 bucks. And do you think you can help me? I think so. And he goes, well, what do you think this should look like? And I'm like, well, you know, from all of my experience for two weeks that I've been doing this or whatever it was at the time, I'm like, I think that it should kind of look like this and it's going to cost something kind of sorta like this.

[00:24:55] And he says, okay, well let's do it. Okay. I'm not sure what we're going to do. Right. And he says, well, what do you, what do you charge? Huh? Well up until, up until now I charge nothing. Right. And so I'm like, well, agents are charging 3%. So, um, it's it's I charged 3% and he goes, okay, I can do that. Great. Do you have a contract or something you could send over?

[00:25:17] Sure, buddy, happy to send you one. Right. And so we kind of shake hands and I'm leaving and he goes, Hey, by the way, what's the name of the company?

[00:25:27] Uh, uh, JB capital MI, right? JB, JB capital. And he goes, Oh, I've heard you guys. And I was like, yeah, sure. You have, Oh my God. Right. And so we got to shake hands and I get in the car and I jumped on the phone with my attorney and I said, Hey, I, I think I just started a business. And he's like, uh, okay. And so I kind of tell him what happened and he's like, Oh my God, do you have any idea what you're doing?

[00:25:56] And I'm like, yeah, kinda. And I said, but look, I need a contract today. Cause I got to send it to this guy. And here's what it needs to say. And Oh, by the way, you need to go form a new company called JB capital and it's gotta be JB capital. Cause that's what I told this guy it was called. Right. And so like so many people.

[00:26:17] That, that I've worked with over 20 years and that your experience and the guys that is that listening so many people, just, they want everything to be perfect and it's not going to be, it's just not. And so the key thing to learn, just, just start this, just, just, just put your record, fill it out and then put your left foot out and just, just start and keep going.

[00:26:42] Like you, you, you have no idea what's going to happen. Just, just go. And that's, that's obviously what's happened to us and it's been, it's been wonderful. 

[00:26:51] Sam Kamani: [00:26:51] Quick question. Super interesting story. How did you so many questions? How did you raise that first half a million? 

[00:27:00] Jeremy Hill: [00:27:00] I'm just, you know, I'd been in business for a while.

[00:27:03] I knew a bunch of people and then just, I started calling my friends. Hey, have you heard of this builder, right? Yeah. I've heard of that guy. He's got this project. That is it. He's working on it. He's a little short on this. This is kind of what it is that they're trying to do. Do you want to meet him? Yeah.

[00:27:14] Yeah, maybe great. Let's go on. Right. Like, I didn't know what, I didn't know. Like I was too dumb to be smart. Like, I didn't know that I should have had a presentation and marked out cash close and show them here's your return and here's your risk. And didn't know any of that. I was like, he builds really cool stuff.

[00:27:34] Sam Kamani: [00:27:34] Yeah, 

[00:27:34] Jeremy Hill: [00:27:34] wanting to build some more of that really cool stuff and he needs some help. Sam, do you want to come help him with me? Uh, maybe. Okay, well, let's go meet, right? Like I just, all I was good at was selling the other guy, like was selling the fact that he was cool. He had a good reputation. He built good houses.

[00:27:52] You get me, I'm just a dummy in the middle, right? Like, I, I just, I'm really good at, at playing the dating game. Like, let me take your good thoughts and your good ideas and your good thoughts and your good ideas in YouTube should meet. Yeah. 

[00:28:08] Sam Kamani: [00:28:08] That's that's excellent. You know, what I really admire about this story is that you had no hesitation in going out and.

[00:28:18] Just calling someone and asking them for this. So many people, so many like tech startup founders, if they're from technology, they are really scared of sales. And a lot of the things in life is just sales. Whether you're asking someone to marry you or asking your kids to go to bed early or, or whatever it is, there's this sense.

[00:28:39] You're just selling your ideas, your vision, your inspiration, whatever it is all the time. And, and you had that initiative, that courage, um, you were proactive in that and. I feel like that has played a role and you probably has never had that hesitation. I don't know. Like, um, even now that you do the same thing pretty much.

[00:29:01] Um, but if, if you stop at that, then it's very 

[00:29:04] Jeremy Hill: [00:29:04] hard to, okay. Yeah. I mean, it's you, everybody needs to find something. It is that, that. They're so excited about, or they're so impassioned about that. They just want to tell, they want to tell the story. They want to share the story that they believe in it. And, and really at the time when it started, I really had no agenda.

[00:29:25] Okay. I wasn't trying to, you know, go get somebody or sell them. Right. I was just, this guy needed help and I was just trying to help him. And, and, and that. 20 years later turned into a really nice business. Right. But it didn't start with that. I think, you know, a lot of tech entrepreneurs are trying to say, Hey, if we can build this widget and do this and do this, we could immediately go raise $50 million and then we could go public and we'll sell for a billion dollars.

[00:29:49] And then I can finally get my yacht and my supermodel. Like dude, like something to the process of solving problems. And we're the earlier stage guys. You, you do not want to take the mindset. It is to where you're going out, trying to meet with a hundred investors because in that business, the thing is that I learned for the earlier stage stuff is that if you ask for money, you're going to get advice.

[00:30:15] Yes. And if you ask for advice, you might actually get some money. Yeah, right. And so it's, there is a, there is a pragmatism to early stage tech deals that you need to start develop and kind of your army of advisors around you. Whether they invest or not, you can't go at it with that mindset. You need to say, Hey Sam, I'm working on something.

[00:30:38] Here's what it is that I'm doing. I'm super excited about this. We see the need here. I really like your opinion because you've done XYZ, whatever it is. I'd really like your opinion, what it is that we're doing to make sure it is that not only are we telling our story the right way, but I wanna, I want to make sure it is that we're really identified the niche.

[00:30:54] It is that we think we have, right. Because if Sam has built and sold two companies or 20 companies or whatever it is, You know, something, I don't know. So let me show you what I'm thinking and have you poke holes and all of that is just, and that's like, that's like a free university education. It 

[00:31:10] Sam Kamani: [00:31:10] is 

[00:31:11] Jeremy Hill: [00:31:11] right.

[00:31:12] Sam Kamani: [00:31:12] Absolutely. Is that is once again. Excellent. Excellent advice. 

[00:31:19] Jeremy Hill: [00:31:19] You are a 

[00:31:20] Sam Kamani: [00:31:20] reader and you read a lot. And so I'd love to know where do you think the volt is going in the next five years in, in your point of view? Um, what are the key sort of changes happening in whether it's economy or business or anything like that?

[00:31:38] Yeah, 

[00:31:38] Jeremy Hill: [00:31:38] well, God, you know, that's, that's a big question. I mean, that's a big question. I think, you know, here in the States, I mean, so, so globally, I mean, the things that is that we're going to see is that we're going to continue to see a push towards technology. Right. Like technology is not going to go backwards.

[00:31:56] Like we're not going to go from the iPhone back to a Motorola flip phone that doesn't have a game that's not going to happen. Right. Um, you know, so I think it is that we're going to see obviously continued progression in technology. Um, a lot of it's going to be around communications, right. You know, if you look at what's happening towards, with even zoom, right?

[00:32:16] Like zoom a year ago was kind of an irritant. And now it's you and Ascension it's essential. We're on 20 zoom calls, right? So five years from now, there's going to be. Either an iteration of a zoom that is going to be, you know, 10 times as fast, and it's going to be more kind of a three D so you and I are actually going to sit across a desk or a conference room together.

[00:32:37] So it will be more three dimensional rather than how it is it. We're looking at it now. Um, I can see communications being heavy. Um, the other thing is that I can see as I can see it is that we're going to get into a world from a technology standpoint to where I don't think we're going to be in an AI world yet, but machine learning.

[00:32:59] Uh, and simplifying a lot of things. It is that have less human touch. I can see that becoming more and more prolific. Um, energy is going to continue to be a, um, huge, right. We, we obviously, you know, the Tesla's of the world and this kind of thing are going to cross, you know, a number of different spectrums for whatever it is that Elon does.

[00:33:18] Um, to anything else. I think we're going to continue to see that. And then I think we're going to continue to see advancements in healthcare, both from a drug development and drug discovery side of things, to even just normal, you know, you know, nutritional health. Right. Absolutely living longer. Like, I mean, think about when you and I were kids, I'm 45 years old when I was 15 years old.

[00:33:39] If I met a 45 year old guy, like he was an old fart, right. Like that's an old guy, right. Like, yeah. Out 45, dude. I like, I can keep up with my kids. I'm just as young as they are. Right. So when I are going to live to be 90 and it not be a big deal, right. Because of those. So I see a lot of, I see a lot of that.

[00:33:58] I think so far. Um, the concerns I think that you see as you look at concerns on kind of a geopolitical standpoint across the country, kind of what's going on and how people are dealing with COVID. So obviously geopolitical concerns. It is significantly with what's going on in the United States with our elections.

[00:34:14] No tonight, we're having a, I think our first debate between Trump and Biden that's who knows how that's going to go. Right. So there's, there's a lot of, there's a lot of unrest globally. It isn't. So it's going to be interesting the next two or three years, really what happens in how countries, uh, um, are beginning to deal with each other.

[00:34:37] So it's interesting to see what happens there. So. 

[00:34:41] Sam Kamani: [00:34:41] No. That's great. Before we go, I have these three sort of quick five questions. The first one is what is the book that you are reading right 

[00:34:50] Jeremy Hill: [00:34:50] now? The book of visit I'm reading right now is twofold. Number one, I'm reading a 10 X by grant Cardone. Yes. I'm also reading a billion dollar whale.

[00:35:01] A billion dollar whale is about the, uh, Oh, whatever the guy is, the Malaysian guy that is ripped off the government. Malaysia. I know dolo Jolo. 

[00:35:11] Sam Kamani: [00:35:11] Yeah. Is that what's that dude? He's finding some movie as well or something. Oh yeah, yeah, yeah. 

[00:35:18] Jeremy Hill: [00:35:18] That's right. 

[00:35:21] Sam Kamani: [00:35:21] Yeah. 

[00:35:22] Jeremy Hill: [00:35:22] Yeah. And so it's like a, I don't even know what it was, however many billion dollar, you know?

[00:35:26] Sam Kamani: [00:35:26] Yes. Yeah. It wasn't a one Malaysia or something. I forgot. Yeah. I forgot the scam, but I will lots of 

[00:35:33] Jeremy Hill: [00:35:33] Malaysia, Malaysia, right. It was basically taking the wealth of the country. Oh God. Yeah, yeah. Yeah. Those are my two books that I'm reading right now. 

[00:35:42]Sam Kamani: [00:35:42] yep. Is there any podcasts that you recommend. 

[00:35:45] Jeremy Hill: [00:35:45] Yeah, I am sure like you am voracious in podcasts, right. And so there's a couple, it is that I'm listening to. So, uh, I listened to, again, gaming AndyFrisella he has the, the MF CEO project.

[00:35:57] I like that. It's pretty hardcore for most people. Um, and it's really just kind of attitude and success in a number of different things, but. Um, it's not for the faint of heart. So I like that. Um, I listened to a guy named Dean Graziosi and the real estate side of things. So he ended up messaged back and forth a number of times he's down in Arizona.

[00:36:16] Super good guy. Uh, listen to those, listen to some finance podcasts, you know, a Goldman Sachs podcast. I like that. Um, there's actually a really good podcast. Candidly it's Oprah. Oprah has one called master class and it's like a 25 minute behind the scenes interview with, um, actors and politicians and the singers and songwriters.

[00:36:38] And it's kind of this. You know, old school Barbara Walters from like the sixties and seventies interviews with the rockets, Justin Timberlake and Simon cowl and Tyler Perry. And I just, I love hearing those stories. Those are just, those were fantastic to me. Yep. Well, those are a couple 

[00:36:57] Sam Kamani: [00:36:57] I'll take, some of them are, of course I've heard of like I'm Dean Graziosi and, and yeah.

[00:37:02] I mean, he's very, very popular in, in the whole enterprise, um, set of groups and stuff. Um, final one. And that is if you had unlimited time, money and resources, what would you build or what would you work on? 

[00:37:18] Jeremy Hill: [00:37:18] Wow, unlimited time, money and resources. You know, candidly, I think I'd solve a lot of the problems I'm trying to solve right now.

[00:37:25] You know, I, uh, I've never seen what it is that I do is work. And so I work seven days a week. It drives my wife crazy. Cause it just, for me, it's enjoyable. So, um, I love working with businesses and entrepreneurs and making sure it is that we're giving them the, the firepower. It is that they need to achieve the things that are important to them.

[00:37:43] And if I had an extra a hundred million dollars in my bank account, I would do the same thing. I would maybe take a different vacation or drive a different car, but I would do the exact same thing it is that I'm doing now. I just I'm. I love that. I love solving problems. So I would do what it is that I'm doing.

[00:37:59] Just maybe on a bigger scale. 

[00:38:01] Sam Kamani: [00:38:01] Yeah. That is, that is great. It's yeah, that's perfect. I mean, I'm the same, I've worked seven days a week because I love my work. It's not really work. It's fun. In fact, sometimes when you go for holiday with kids and stuff, and then you come back and I am waiting to go back to work to the Lexan distress, 

[00:38:22] Jeremy Hill: [00:38:22] my wife and I are on holiday and we're we're in the Caribbean or we're somewhere else.

[00:38:26] Or whatever, and it drives my wife crazy because two days after I'm there, I'm like trying to buy the Slurpee stand in The Bahamas, you know, like I wonder how many Slurpees he sells. It drives her crazy. Drives her crazy. No, no. 

[00:38:39] Sam Kamani: [00:38:39] I completely understand. And sympathize with you. Yeah, that's great. Um, I have, I've linked to your LinkedIn and your website.

[00:38:50] Um, Is there any other way, people can reach you connect with you or follow you. 

[00:38:57] Jeremy Hill: [00:38:57] Sure. Absolutely. So, you know, outside of our normal well social channels, you know, we, we started a podcast earlier this year called the Jeremy D. Hill show. You can find us there if you like. And so I would love to share that with your audience.

[00:39:11] If they have say Apple, Google, Spotify, everywhere else, or does it, you go find the Jeremy B. Hill show. And then if you need anything too, I'm just jeremy@jb-capital.com. Your listeners are more than welcome to reach out, you know, as friends or if they have questions on anything, we're happy to do what we can to help.

[00:39:26] Sam Kamani: [00:39:26] Sure. I'll put all these links in the description of wherever this goes. So thank you so much, Jeremy, for coming here and giving us all this knowledge and insight into your world and into the world of private equity and funding and loans and everything. So thank you once again. 

[00:39:44] Jeremy Hill: [00:39:44] Oh, I loved it. Sam, thank you so much for having me on.

[00:39:46] I had a great time.

[00:39:47]Sam Kamani: [00:39:47] You so much for listening to this episode of one money, got money with Sam Kamani, 

[00:39:53] hope you enjoyed the show and got some valuable insights that would help you in your startup or your business. Yes. If you haven't already please subscribe and rate the show on your favorite platform, it would be excellent, extremely helpful.

[00:40:08] And I just cannot tell you how much I would appreciate that.

[00:40:11]