I see a lot of investment ideas,
I get a lot of information about

alternative investments from the
marketplace. My clients, I

prepare about 100 PPM a year.
And I review probably about 200

other alternative investments,
just to keep abreast and make

sure that I'm providing the best
service to my clients. And also

for my own deals. It is rare
that something jumps out at me

as such a great and creative
idea as what we're going to talk

about now. Now, this is not a
pitch for anything of mine, I'm

not doing this, I'm not
responsible for it. And they're

not a client. I just thought it
was a brilliant, brilliant idea

for an investment and kudos to
them.

So with that kind of play up,
you must be wondering what it is

that I'm talking about? Well,
first, before I reveal the make

the big reveal on which
investment, I think is just

brilliant. I let's talk a little
bit again about founder

investment theory. It's the drum
I bang all day long, that is

absolutely critical. federal
investment theory can almost be

boiled down just into one word
story, the story that your

investors are getting about your
investment, what is it that

makes it compelling for them to
invest? Now we also can break

that down into four, two
components, one of which is the

story. The first one is the
strategy. What's the general

strategy that's taken place? Is
this a value add? Is this

appreciation as a cash flow?
What is it? The second is the

philosophy that's taken? Why
it's a this is a good

investment, what this asset
class is, things like that. The

third is the risk tolerance
level. So is it low? Or is it

high? Some people like to invest
in very safe assets with very,

very stable safe returns, some
people like High Risk High

Return assets. And the fourth of
course, is that story. So

without further ado, I'm going
to talk about what I think is

one of the most creative ideas
for using an exempt offering for

an investment in an alternative
investment space. masterworks.

masterworks is a regulation, a
offering that's put out there to

raise money for investing in
art. It is a incredibly great

idea. I mean, who wouldn't want
to own some of the masterpieces

that they invest into? Banksy,
Sam Gillean Andy Warhol. Yeah.

Oh, we Kazuma. And I totally
butchered her name, and I

apologize. But these are some of
the great works of our time that

an even have before our time. I
mean, they've got a Monet, how

cool is that? You can own a
piece of that and then take part

in the appreciation. So that's
the whole idea behind

masterworks. So their strategy,
of course, is just pure

appreciation. This is not a cash
play. This is something where

you buy one of into one of these
pieces of art, and then it's

sold at some point. Oops, how it
works. So they've got a whole

mechanism here, they purchased
the art, they scrutinize it.

They do the whole period, the
whole period three to 10 years.

You can also trade and shalt
sell your shares because it's

taking place under Regulation A.
So extremely cool idea very cool

strategy. Obviously, the
philosophy is art, art

appreciates. Art is actually a
very good asset class that's

oftentimes ignored, because the
asset prices are so high and it

is such a illiquid market. But I
think what masterworks has done

here is they've liquefy the
market as much as they can

possibly be liquefied, and in
such a great compelling way.

Risk tolerance, I mean, fairly
safe to say that Banksy

paintings are going to be worth
a fortune, and going to be worth

even more. So I think it's
pretty safe to say that it's

going to be a very safe asset
class. nothing's guaranteed, but

in general, pretty, pretty safe,
low and good returns. I mean, on

some of these paintings, these
are reasonable returns. I mean,

even on a more classical
painter, like Claude Monet,

you've got a 9.2% return which
Yes, isn't stellar, but for that

low risk tolerance level It's
right there in the in the in the

play. So very cool. And really,
at the end of the day, it's the

story. How cool is this? So
under each of them that you can

also see, let's see, how did I
do that they have descriptions

of all the different paintings
that they've done. They have

what their the estimated sales
are they have an investment

thesis that describe the work to
you, but this picks why they

chose it and why they think it's
going to be have these kinds of

returns. Really, here's the
bottom line, these guys, kudos

to you. They're not a client of
mine. I'm not invested in them.

I don't get anything for saying
it. But I thought it was such a

great example, to bring to you
have a clear example of a fit

that I think is so unique and
compelling. Wow, great job,

guys. Now, that said, we do lots
of Regulation D work for our

clients, I would love to see my
clients bring me something that

is as cool as this or nearly as
cool as this. That said, there

are a lot of deals that people
are working on my clients

included, that can be this cool,
that have a unique vision, but

they also haven't crafted it
because they haven't spent the

time to think about what their
their fit is. So it all starts

with fit if you want to be able
to get investors into your

project with little friction.
Founder investment theory is the

way to do it. If you'd like to
talk about your Regulation D

offering, I would be happy to
talk with you and see if we can

help you not only put together
all the compliance work that

needs to take place PPM
operating agreements

subscription agreement filing in
the forum de state notices under

blue sky laws, but also help you
with that fit and how you can

talk communicate better with
your investors.