Episode of My First Million with Sam Parr and Shaan Puri.
Transcript
Note: This transcript was auto-generated from YouTube captions. It may contain errors and lacks speaker identification. A full Gemini audio transcript will replace this.
Kind: captions Language: en have you seen what keith reboy is doing as his new startup no so you know who he is yeah so he’s the guy who uh uh he was like ex-paypal then he was the ceo of square he’s kind of a known investor founder’s fund then he started he’s a known [ ] like people think he’s a total [ ] on twitter super hilarious to follow because he’s a just absolute jerk to people um you know his like number one tweet is just like wrong the period and he won’t tell you why he won’t argue back he just calls you an idiot and then if you like try to argue he’s like this is why i’m i was more successful at the age of 27 than you are at 40. and he just like rips people like that and like who does that that’s nobody does that so i think that’s just like really crazy and entertaining to me um but anyways he’s doing so he did open door and what opendoor is is now is like a publicly listed company because they did us back and opendoes a multi-billion dollar company and basically it was like selling your house is a time-consuming and stressful process what if like the day you want to sell you could just sell your house right away give you a price you say yes or no and that’s what opendoor did so they basically would just buy your house and then they had a lot of data to know how much to buy your house for and then they were the brokers they could keep the broker fee for themselves buying and selling and then they would sell it within like 90 days hopefully and they do this in a whole bunch of markets like arizona and stuff like that and so they’ve done very well you know kind of like on paper and like zillow now like does the same thing to try to compete with them they kind of changed the way that the the business model of these big real estate companies worked where now like the money to be made is in basically like auto buying your bit auto buying your house and then reselling it for you and using a bunch of technology to do that anyways his new company he’s starting uh with with jake jack abraham is uh called open store and so we have open door and now you have open store i no they haven’t released a bunch of details but i think i know what it is which is it is open door for buying businesses so it’s the same idea for buying i think it’s going to be specialized in online businesses but maybe not um where basically you just say here’s my business and then they say here’s your offer we’ll buy it off you and um and so i don’t know if this is gonna be specialized like e-commerce roll-ups like a thrasio um i don’t know if it’s gonna be online and offline like um where did you learn about this and what what can i go is there a website yet uh they announced it so i heard about it a few weeks ago like six weeks ago maybe and i was like oh that’s super interesting how did you hear about this so somebody told me about it because their friend interviewed at the company and so that’s like the only way you could know about it because like when you’re interviewed they like kind of tell you the premise of the company and that guy was like oh dude you know keith was doing a new thing it’s basically open door for bit buying businesses and i was like oh that’s sick that’s a great idea because buying but selling your business is also just like is even more than buying a home in terms of time consuming stressful uncertain on what price you’re going to get uncertain what price it even should be and um and the marketplace is to do that online like buy biz buy biz sell or whatever that website is like.com they’re so like old school you know like on how they do that and so um so i think there’s like room for improvement there so i found that to be really interesting let me bring this up real quick which is it’s so crazy how often internet marketers who often are accused of being sleazy and many of them are i mean they’re accused of being that because they are but they’re often ahead of the game so for example email marketing email newsletters are all the rage right now uh scammy guys like i don’t think this guy’s actually scamming me but david d’angelo he used to sell dating books in the 1990s by having these long emails i just stole and copied from him um the other thing is paid memberships paid memberships have been a thing for decades now guys like greg your friend our friend greg is doing a paid community thing and greg’s like a cool guy um and so it’s like it’s like cool to do it um and there’s so many more and this is another one buying and selling businesses online has been a thing that internet marketers so for example flippa where you could buy affiliate websites that’s been a thing for years empire flippers is another one empire builders and if you go as empire flippers or empire builders i think those are actually two things but they but if you go to those websites you’re gonna a lot of people are gonna be immediately turned off you’re gonna think what the [ ] is this and [ ] startup guys like us we just come in i guess that’s what we are we just come in and we take this stuff that these guys have been doing for years and we just say put some lipstick on it yeah one 2.0 make it a flat beautiful color uh it’s so funny because like cool this sounds neat but this isn’t unique right uh yeah i think you know there’s no unique ideas really there’s you know remixes of ideas there’s old ideas that you make new there’s new platforms but but i think it’s cool and i think it could be big uh it’s one i’m going to keep my eye on then i saw another business like this so i started to put together a little bit of a pattern here and i said oh what is open door for x so what other parts of life and uh in the world could use instant liquidity because that’s what this is it’s basically taking something that was kind of illiquid like your house and it takes a lot of time to get liquid where you actually sell the thing and takes a lot of you know you got to like you got to move out you got to stage it you got to repaint it you got to get a broker you got to list it you got to do tours no instant liquidity we buy your house today don’t do any of that [ ] um same thing with your buying your business what else needs that and then i saw another one and this business is called um i grabbed the name but it’s basically doing this for used electronics it’s called backflip just got funded and backflip is basically saying we’ll instantly buy any of your used electronics and uh because that’s not a new thing either and and i think it’s awesome and so it’s not that it’s new it’s basically that there is a big swing being taken by people who are going to try to do this at scale using like the modern kind of internet marketing and models to do it and so like you know we buy gold or whatever what else does billboards cards you know like gift cards yeah exactly like um and there’s like a gift card there’s actually a gift card startup that’s crushes uh that that basically took the old bottle and just doesn’t know what’s it called raise i think raised yeah i’m i’m on their website right now i’m looking at raise.com holy [ ] i can look at the traffic and just tell you these guys are printing money yeah raise is gonna be like a billion dollar plus win uh and nobody even like hears about this company nobody talks about this company but you know super simple business of like you know gift cards the gift card business resale of gift cards essentially and so uh so anyways i’m interested in this open door for x which is basically instant liquidity for things that were pretty much interesting all right let’s play off that so houses okay there’s equity zen which i think is badass uh so equities then equity’s in kind of looks more like flippa than it does like open door meaning like it’s kind of hard to get in it’s kind of obtuse you got to like sign up to see [ ] not everything is there it’s like a 10-step process to do an investment it’s equity zen is not like it’s not robin hood on my phone where i can just like do my thing and so like secondary shares yeah it’s like a shitty name like i don’t know like it’s just bad all around and forge global was the other one it’s like also bad i don’t know i feel like somebody should do this better carter is trying to carter x is trying to do this better um right now which is like secondary shares of private companies yeah i’m not a fan of carta but um i could see them doing well but i’m not i’m not a fan of carter so i don’t know if i want them to be the best at this um angelus is also trying to do it there’s a bunch of people trying to do this second trying to do open door trying to do what they’re trying to do is a little bit different they’re just still trying to do the marketplace what opendoor did was different it wasn’t like open door wasn’t just another housing marketplace it was i will buy the thing off you right now because i know what i can sell it for um and i’ll i’ll i’m comfortable with this five percent spread that i will i will keep so you give up five percent of your upside but you get the certainty of it being done now and um and i’m comfortable in that five percent spread so somebody would need to do this for secondary shares would they just go you want to sell your your company stock done and then i will figure out how to re-flip this thing on the other side with my own spread so there’s a few people that have done this with furniture and furniture’s really hard because furniture doesn’t ship well yeah um but there is if you i don’t know if you know i mean i buy i like buying used furniture because you can get like 10 dollar couches for like three grand um and what’s oftentimes they’re really nice used furniture is not really a thing on the internet uh or at least it’s not hugely popular but you could i think there is still an interesting way you can do this with used furniture right um so i think training cards is one so i know a lot of people that have sports cards they collect it as a kid it’s in their attic somewhere it’s in a box they kind of heard of cards are worth something but they don’t like they don’t know what they have they don’t know what it’s worth they don’t have them graded they didn’t send them into psa and pay the money to get them graded so i think if somebody basically did the shoebox model where you basically say put it all in a shoebox and mail it to us and we will pay you for it uh we’ll do all the work of figuring out what it’s worth and then we’ll pay you you know 70 cents on the dollar for for what it’s worth and like today you’re getting nothing for it and like that that’s the and if if you don’t like our offer we’ll send it back and i think that somebody did that they could just hoover up all the long tail of like trading cards that are out there um that people are not doing anything with that they want to monetize that’s interesting okay so uh we’ve we’ve furniture is not that good trading cards are pretty interesting because it’s a lot easier cars everyone a lot of people do cars carvana does cars and i think that that is so sick they’re a multi-billion dollar is that the same model they use where they’ll just instantly buy your car off you yeah like they’ll buy it in a matter of minutes which if you told me this like years ago i’d be like no way that can’t be done but they made uh 5.6 billion dollars last year in sales so it worked okay so it’s working open door for cars working yeah yeah it totally works um what else is interesting what’s a huge thing like what’s what are some of the bigger assets that you possibly have in your life that you want to wow carvana’s market cap is 45 billion dollars holy [ ] yeah it’s working um what else is there i don’t know there’s gonna be some obscure [ __ ] like oh like life insurance policy payouts or something or like you know like something like that that i’m like i don’t even know that space but that makes sense it takes you know it’s something that you get or like social security like i know like my parents are getting to the age where they can collect social security like would they take a lump sum of all their social security now and you know at 70 cents or 72 cents on the dollar and then you know this company just collects the payments over time like probably i don’t know like there’s a lot of people who would make that trade dude did you know this so there’s this uh a company i have to go and look at what it is but you guys could probably google it actually but i think some banks do it like goldman will do it but if you have a winning lottery ticket they’ll buy it off you right and they’ll give you the money up front and it’s structured in such a way where they’re they’re still able to make their profit but they’ll buy lottery tickets from you like we’re talking like 10 million lottery tickets or seven figures uh i uh it’s kind of interesting people buy winning lottery tickets off of people that’s actually kind of an interesting one i would actually need to do some research how many people do how much money do you think is one in the lottery per year oh dude i have no idea i mean i feel like the weekly lottery the powerball every week is like you know between 50 and like 200 million dollars it’s like it’s like that’s that’s like on a weekly basis that it now it doesn’t get one every week that’s how it accrues and that’s how it gets bigger but like you know i don’t know you have the number in front of you i feel like it’s i don’t know no i uh no i i can’t find it there there’s 1600 lotteries created each year so there’s at least 1600 unique winners um no i don’t i don’t have the numbers but lottery tickets might actually be kind of interesting because you said the life insurance i’m like what do you wait to get paid for that you would take a discounted upfront payment lotteries is kind of is actually kind of interesting um and i do know that some banks actually do that right you know who else does that is whitey bulger you remember whitey bulger i’ve never even heard that those words in my life do you do you know the movie the departed yes you know jack nicholas’s character okay yes it’s modeled after whitey bulger he was a gangster in uh boston he was an italian or an irish mafia guy he uh or a mobster guy he ended up going to jail recently they found him and they um um he got beat to death in jail so it was like a crazy ending to the story of him he was america’s most wanted man for like 20 years and um anyway he as part of his story he won the lottery three times and the way that he did it is people who had won the lottery that in the neighborhood they would have to go to him and he would buy it from you and he would go and cash the ticket and uh so this is like a fame like the numbers game they call it that’s like a famous mafia thing i feel like i can rule the world i know i could be what i want to i put my all in it like no days off on the road let’s travel never looking back