AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103

Speaker 1 And Angel AI, she would talk to you like a friend, and you ask it financial questions. You can ask her, can you get me qualified for a mortgage?

Speaker 1 Can you, one of the things that does is repair your credit. It's so accurate, right? Whatever it tells you, I put my money behind it.

Speaker 1 So if it says, says, Dan, you approved to buy this ranch for $10 million.

Speaker 1 And if it did the calculations wrong or if it messed up and it wasn't supposed to say it, guess what? I would write you the check.

Speaker 1 I would anyways give you that loan for $100 million. dollars

Speaker 1 all right so there's a warranty that comes with this so we're the only financial services company that can issue a warranty like that

Speaker 1 ladies and gentlemen welcome to the money mondays and happy new year this episode is coming out right around the first week or second week of january so i'm very excited to be here with you guys in 2025 this should be episode i think 103 or 104 which is very exciting that we're over a hundred episodes episodes and you guys have been there every step of the way out of those weeks out of those 102 103 weeks we've been top 10 for 95 of those weeks and top 100 of all podcasts on the planet every single week after the third week because of you guys for liking commenting subscribing etc it's really important to us when you can do those things because as you've noticed we've been running this for ad-free for over 100 episodes now So on the Money Mondays, as you guys know, we cover three core topics.

Speaker 1 How to make money, how to invest money, how to give it away to charity.

Speaker 1 You might hear noise in the background because we we are inside of an RV motorhome right this second at Black Sight Ranch or better known as the Wild Jungle.

Speaker 1 This podcast will be under 40 minutes, between 33 and 38 minutes for your listening pleasure because the average workout is 45 minutes. The average commute to work is 45 minutes.

Speaker 1 So we're going to keep this episode under 40 minutes so you listen to the whole thing because part of the reason on our rankings is because we have a 93% listen-through rate for you guys.

Speaker 1 That's why I like to tell people what they're what you're in for, how long is it going to be, so you can make decisions on your timing and travel schedule.

Speaker 1 All right, without further ado, our guest today has built major companies in very, very different categories from the mortgage industry to AI.

Speaker 1 So we're going to have a lot of fun here today going through, asking very specific questions about investing, building businesses, philanthropy, et cetera.

Speaker 1 So without further ado, Pavan, if you can give your quick two-minute bio so we can get straight to the money.

Speaker 1 Immigrant came here when I was little and my father was in real estate. So we bought and sold real estate.

Speaker 1 I cleaned the toilets, painted the house, mowed the lawn, did everything back when we were kids and then we started a mortgage company and I started building technology and I was he commissioned me at 11 to build all the technology for the mortgage company.

Speaker 1 And that's what I did. I was good at math, I was good at algorithms and seeing patterns where there aren't any patterns.
And

Speaker 1 that kind of leads right into AI because that's what machine learning is all about is patterns, pattern recognition.

Speaker 1 And so it's really, you know, it's mortgage and the AI, as you said, are two different companies. And in a way, in my perspective, is the mortgage company is a subset of the AI company, right?

Speaker 1 It's a byproduct of good AI. And so

Speaker 1 we formally incorporated the AI company in 2012, 2013. Oh, wow.

Speaker 1 People couldn't even spell AI back then.

Speaker 1 Well, you know, AI has been around since the 50s. And I can make the argument that the Enigma machine used in World War II is AI.
But that's, we digress.

Speaker 1 We digress, yes.

Speaker 1 So,

Speaker 1 yeah, no, so in 2013, we moved to Puerto Rico from California. I grew up in SoCal.
I went to UC Irvine.

Speaker 1 And we moved to Puerto Rico and we incorporated the AI company in Puerto Rico because it's just an incredible tax structure

Speaker 1 and the best place in the world to start a tech company because as you know tech companies are all about capital gains and when you incorporate in Puerto Rico there's no capital gains so definitely think about that you guys listening and starting a tech company and so forth amazing talent in Puerto Rico and the tax tax structure is incredible and here's amazing a lot of people don't realize this but the Puerto Rico government will give you 50% back.

Speaker 1 So every dollar you spent in R D in Puerto Rico, you get 50 cents back back from the puerto rico government 50 50 50 whoa right all right so that's a

Speaker 1 yeah

Speaker 1 right so so literally you don't have to go you know half your capital raise problem is solved simply by being in puerto rico it's fascinating right because you know uh and just imagine like if you need ten million dollars five million is coming from the government it's like you know do it it's there most people don't know about so i'm glad we're getting that message out yeah um and um

Speaker 1 second,

Speaker 1 so when we moved to Puerto Rico,

Speaker 1 amazing tax advantages all around, but the most important thing, the biggest reason is like, hey, we're going to build this tech company, we're going to build it in Puerto Rico.

Speaker 1 And we hired, you know, local Puerto Rico talent.

Speaker 1 And

Speaker 1 most of that, the real engineering behind Angel AI is built by the talent that we hired in Puerto Rico. And so it's been a

Speaker 1 long process. I mean,

Speaker 1 decades of data science, of building the knowledge base to drive the AI, followed by the engineering to get it to run. And then we did our first transaction through it in 2018.
So

Speaker 1 nothing worthwhile is built overnight.

Speaker 1 And it takes a lot of patience. And

Speaker 1 you got to fight through everyone who's telling you you're crazy.

Speaker 1 Everyone's telling you you can't do it. And, you know,

Speaker 1 personally, in my life, it's kind of like, you know, it's the experience I had was like,

Speaker 1 you know, I'm always like thinking big. I'm always thinking, you know, I remember my dad used to call me a dreamer when I was a kid.

Speaker 1 And I always used to think like, you know, we can do really big things.

Speaker 1 And the challenge is most people don't think big. And they're going to turn around and they're going to tell you that you're crazy or you're foolish.
And, you know, why do you think you can do it?

Speaker 1 And so forth

Speaker 1 and and the ultimate reality is is that as long as you don't fall into that trap

Speaker 1 um you you can do it everyone can do it and because most people get fall fall into the trap of the naysayers and and that's

Speaker 1 i think it's a it's it's a shame and and i i think the current um pop culture uh education system doubles down on it and and most kids are discouraged you know it's like uh it's like guardians of the Galaxy.

Speaker 1 No, Guardians of the Galaxy, the other one. Inventors? Yeah, no,

Speaker 1 Hitchhiker's Guide to Galaxy. That's the one I was thinking about.
Where if you have an original thought, it slaps you, right? And that's the system. Kids are slapped for having original thoughts.

Speaker 1 Kids are slapped for thinking they can do anything.

Speaker 1 And if we just think out of the box and say, no,

Speaker 1 you can do anything

Speaker 1 and just pursue it. Right.

Speaker 1 Most of the time you'll actually succeed if you actually just stick with it.

Speaker 1 So, let's first start on the mortgage side of things. So, I just got in the mortgage space this year with our mutual friend Joseph Shalabi.

Speaker 1 Talk us through I just started this year, you've been doing it for decades. Why is the mortgage space important and how do loan officers are they making money out there?

Speaker 1 Like, tell us about loan officers because a lot of people have been messaging us about working in the loan offer space. And I want to be able to explain to them: is it good? Is it exciting?

Speaker 1 Is it worth it? It's hard work, yeah, right.

Speaker 1 Now, the thing is, like, for a couple of years, um, you know, especially, I mean, most of 2020, right, since 2010 to 2020 was a good time for loan officers because interest rates were low, the real estate market was booming.

Speaker 1 And then in the COVID period, it was amazing. I mean, I think we did $5 trillion in one year of business.
So literally, if you had a license, you were made, you know, hundreds of thousands of dollars.

Speaker 1 I mean, didn't.

Speaker 1 had no, without any effort. You didn't have to know anything.
You just, because there was no. Just picking up the phone, everyone was calling you.
Right, right.

Speaker 1 And so that spoiled the industry. People thought, you know.
It's easy. I'm supposed to make $200,000 a year.
Yeah, exactly. Well, people were making a million dollars a year without very little

Speaker 1 training and experience and ability. They were just making a lot of money.

Speaker 1 And then, of course, everything suddenly, as quickly as it turned on, it turned off just as fast. And now we're back to a real-world mortgage industry, which is a lot of hard work, right?

Speaker 1 Which is consistency,

Speaker 1 following up with your clients, staying in, you know, making yourself relevant, marketing yourself, differentiating yourself, right? The basics of any business, right?

Speaker 1 It's what made you successful, what makes all the businesses you own successful is because they spend so much time defining who they are and communicating that.

Speaker 1 And that's the key for a loan officer. You have to define who you are.
You have to communicate that. You have to have continuous, clear.

Speaker 1 communication with your clients, pick up the phone, answer those emails, read every email, understand it, pay attention, be a professional, right? It's hard work.

Speaker 1 And it's, you know, 12, 18 hours a day of non-stop work. And that's how you become a top producer.

Speaker 1 And in this market,

Speaker 1 there's top producers and there's no producers. There's nothing in between.

Speaker 1 And so

Speaker 1 just you got to...

Speaker 1 Get out of the delusion that there's easy money anywhere. There's no such thing as easy money.

Speaker 1 Once in a while, you get lucky, like loan office, a bunch of loan officers got lucky in 2020, 2021.

Speaker 1 But

Speaker 1 some people just got in the business at that time, just timed it right, got in and made a lot of money and got out.

Speaker 1 That's like winning the lottery, right? But in life, most of the money is made by just staying consistent

Speaker 1 and just keep doing it and keep doing the hard work and then just wait for the,

Speaker 1 you know, when it rains, just wait for it to rain and then you catch,

Speaker 1 catch all you can at that point. It's a bit like Bitcoin waiting for a decade and it finally hits it.
Exactly.

Speaker 1 Okay, on the AI space, as you mentioned, AI has been around for decades and decades and decades.

Speaker 1 Why do you think that now, this last two years in particular, that it became all the rage? Everyone's talking about it, everyone's thinking about it.

Speaker 1 Hundreds and hundreds and hundreds and hundreds of billions of dollars a month is being invested into the category for venture capital, Silicon Valley, and Wall Street.

Speaker 1 Why do you think so much money, time, and energy is finally going to AI this year? Yeah,

Speaker 1 that's a great question.

Speaker 1 So, you know, like I said, the first AI,

Speaker 1 you know, fully driven AI loan product that we did was in 2018.

Speaker 1 and in 2018 you know my concept well my concept for for what we're doing has always been like

Speaker 1 you know since like mid-2000 um i saw that the only real future is chat um and because i looked at my kids my kids don't want to be on the phone they don't want to do anything they communicate everything through chat and i said whatever the kids are doing that's what's that's the reality that's the reality that's what it's going to be right and so my my whole my whole vision of this was I want a consumer to go in and talk to my system through chat and get everything done on a chat interface.

Speaker 1 So we've been building that out.

Speaker 1 And it's complicated. To do something

Speaker 1 as data-intensive as a mortgage and as complex

Speaker 1 and so many things can go wrong in that process, to do it entirely by chat is very hard and very complicated.

Speaker 1 So we rolled this out in 2018 when, and then we were laughed at because that was back when,

Speaker 1 you know, Facebook's metaverse was going to take over. Like, everyone, everyone's like, what are you doing? Chat is, is old stuff, old technology.

Speaker 1 What are you guys doing investing so much money in chat when

Speaker 1 everyone's headed to 3D virtual reality? And I'm like, no,

Speaker 1 that's not going to, you know, my vision of that's not going to take off because

Speaker 1 kids don't want to wear goggles around the whole day long.

Speaker 1 Kids like it quick and and fast. So,

Speaker 1 you know, so while we were doing that, then all of a sudden ChatGPT came out. Right.
And it was like, what, three years ago now where it hit the scene with 3.0.

Speaker 1 And

Speaker 1 it's suddenly now

Speaker 1 chat and the whole idea of talking to an AI got into people's consciousness. So I thought it was tremendously helpful.
And so let's talk about what makes ChatGPT possible.

Speaker 1 Why did ChatGPT suddenly come to the scene and other similar and I noticed he has some llamas out there and that was llama 3.3 I think

Speaker 1 so why does why did chat GPT become

Speaker 1 why was it even possible and a lot of people don't realize that that the real breakthrough didn't come from open AI the real breakthrough came from a paper that Google published in I think 2015 and it's called attention is all you need

Speaker 1 okay and that was a breakthrough in how to do um

Speaker 1 how to do language processing specifically but I think in general applies to most

Speaker 1 most complex problems that an AI could have to would have to deal with and it it cut out most of the overhead of processing a large

Speaker 1 a large amount of data and so with that breakthrough paper and then OpenAI applied it extensively and then created you know ChatGPT one two and then three and three was actually good enough for to capture the imagination of the larger market.

Speaker 1 And so it took that final

Speaker 1 packaging of the science that's been developing for so many years. I mean, if you think about 2015, the paper comes out, and it was like 2020, 2021 when ChatGPT 3.0 came to the scene, right?

Speaker 1 Look how long it takes.

Speaker 1 Technology doesn't happen overnight.

Speaker 1 It feels when you're the consumer of it, you suddenly say, oh, there's a new thing called ChatGPT. No, it was been, it takes a long process before it's actually relatable.

Speaker 1 When you can take science and make it relatable where people can

Speaker 1 understand it in an everyday way, it takes a big investment, just like with Bitcoin.

Speaker 1 That's the paper, original Satoshi's, before Satoshi's paper, there was another paper that defined the whole idea of decentralized ledgers, and then that one failed.

Speaker 1 There was another coin that came out, failed, and then Bitcoin came out, right? I mean, this is 20-plus years in the making.

Speaker 1 It doesn't happen overnight. Nope.

Speaker 1 I remember I was installing the very first Bitcoin ATMs into casinos back in 2014. It was $340 for Bitcoin at the time.

Speaker 1 And trying to explain to the governor, the mayor, casino owners why they should have a Bitcoin ATM. They thought I had three heads, right? Trying to explain it back then.

Speaker 1 It was a company called RoboCoin, but it ended up selling.

Speaker 1 Those ATMs are now everywhere, right? Gas stations, liquor stores, malls, et cetera. Okay.
So on the investing side of life,

Speaker 1 you have a lot of options. Why spend so much time investing into the AI space?

Speaker 1 like why do you invest your money your time and your energy into the ai category well actually i i invest a lot of my money in real estate i love real estate because remember what i said in the beginning we grew up as kids cleaning houses and buying and mostly buying and sometimes selling but mostly buying and holding nice um and

Speaker 1 you know there's a few times where i looked at whatever you owned a property i said this property is too much trouble and i sold it and i went back and i said i never should have sold it never should have sold it so funny before you go on so the one thing the recurring theme here, every time I interview someone in the real estate category, their only regret in life is selling.

Speaker 1 Yeah. No matter what.
Commercial, residential, Airbnb, rental, blah, blah, blah, blah, blah. Selling.
Right. Because they bought it for $400,000, it went up to $600,000.

Speaker 1 Woo-hoo, they crushed it up 50%. That $600,000 is worth a million now.
Oh, I bought this building for $6 million. I sold it for $8 million.
I'm a genius. It's worth $11 million now.

Speaker 1 Their only regret ever, every single time, is selling. Sorry, go ahead.
Yeah, I mean, you know, we were in the mortgage business in 2008 when

Speaker 1 home prices in California fell 50%, 60%, right? And I remember you go through Laguna Nagal, Laguna Hills, right? And those million-dollar, $2 million homes were selling for $600,000. Wow.

Speaker 1 You know, and people were walking away from their mortgages. Another $8 million.
Yeah, exactly. And

Speaker 1 I was advising those homeowners, like, if you can. Bear it through.
If you can bear through it, I mean, it's like, don't get caught up in the momentary, oh, I can rent for less right now. It's like,

Speaker 1 you live on the you live on the side of a mountain over the ocean that and then and look at the overall macroeconomics there's a fixed amount of land right right and population keeps rising right you know and and then and you have to understand why it crashed right it crashed because of a sudden dry up of credit There was no buyers because no one could borrow money.

Speaker 1 Credit disappeared overnight. I said, you know, that's going to get fixed.
The government is pouring so much money at it. It's going to get fixed.
I said, you should go out and buy.

Speaker 1 They want to loan you expensive money, I promise.

Speaker 1 And

Speaker 1 know that's what my family did we went and bought a lot of real estate from 2008 to about 2012.

Speaker 1 uh it was the best buys ever right we were getting you know like at land cost i mean zero valley given to the improvement like this is like no-brainer just buy as much as you can all right so

Speaker 1 um no i mean and recently we just bought a bunch of uh

Speaker 1 um property in texas um you know a lot of low-income housing bought some in oklahoma this is it's just amazing it's great returns uh it's a lot of work. Sure.

Speaker 1 I spend, you know, I spent a month in Texas driving around looking at real estate and talking to the neighbors and doing the math.

Speaker 1 But, you know, it's fun. It's fun work.
It's a game. It's like we're a life monopoly.
Yeah. So what Paban just mentioned about the supply and demand was really interesting.

Speaker 1 There literally is no more beachfront property. If you think about it, there's no more beaches being made, just the way it is.

Speaker 1 And so beachfront property in this example, The reason it's going to keep going up is the supply does not grow, but the demand does.

Speaker 1 What's also interesting is, and especially somewhere like california or new york certain areas that we are a couple million units behind from apartments houses etc

Speaker 1 and people are living a lot longer and people don't talk about this part before when we grew up parents lived to around 73 to 75 years old 75 for women 73 for men now it's about a lot higher at 81 and 83.

Speaker 1 but your children if you're listening to this are probably lived to over 100 some of them 105 110 120 god bless them because when we grew up every corner was 7-Eleven, Burger King, and McDonald's.

Speaker 1 Now, there's Whole Foods, Erewhon, smoothies, cold plunges, saunas, mental health awareness. We didn't have any of that stuff growing up.
We had burgers and smoothies and 64-ounce Thurpees.

Speaker 1 Plus, now we got RFK running the FDA, which is going to make America healthy again. And we didn't have an Equinox in Every Corner and 24-hour fitness.
Like, it didn't exist as kids.

Speaker 1 We had one gym that you might have to drive 15 miles to, and no one cared because there was no cell phones. Now, everyone's obsessed with working out so i say that because if your kid lives to 106

Speaker 1 that's probably why this podcast exists they have to invest they have to own real estate they have to have way more capital because if they want to retire at 65 to 75 but they live to 106 they need 30 or 40 years of money saved up

Speaker 1 Where before, sad to say, you only needed like five or 10 years because people mostly passed away. Let's call it 73 to 83 years old.

Speaker 1 And so on the real estate side, if there's millions of units behind, and there's no chance of catching up, by the way, because there's not enough wood, not enough labor, not enough metal, not enough refrigerators and air conditioning units and little pieces of metal, like there's so many things that are behind schedule or not coming for a lot of construction companies.

Speaker 1 A lot of construction companies went bankrupt during the shutdown as well.

Speaker 1 When you just compound all this together, there's no catching up for California, a lot of other cities of actually having enough units. Why does that matter to you?

Speaker 1 Well,

Speaker 1 supply is not growing fast enough. Well, the demand keeps growing.
What happens to the price?

Speaker 1 You've seen it happen with Bitcoin, you've seen it happen with real estate, and you're going to see it continue to happen with real estate simply because of supply and demand. Okay,

Speaker 1 when you decide when people are approaching you for investing in real estate, investing in AI, investing in yourself and your businesses, how do you make a determination if someone wants to pitch you on a startup company or a business?

Speaker 1 Like, hey, we're doing 4 million in revenue. Would you invest 100K into our company? Like, when someone's pitching you as an investor, what do you look for in an entrepreneur or in their business?

Speaker 1 Well, real estate is really simple. You just look at the cap rate, and it's a

Speaker 1 simple math, and you know whether you need to,

Speaker 1 whether it's a good trade or not. I mean,

Speaker 1 I don't ever invest in real estate saying with the hope that this is going to appreciate by 20% in the next so many years.

Speaker 1 I look at appreciation as a bonus. Okay, the cap rate, you know, I look at minimum cap rate of 10%.
If I don't get 10% cap rate, I'm not touching it.

Speaker 1 Because a million things can go wrong.

Speaker 1 If you buy 10 properties, one of them could be a total write-off because of

Speaker 1 some

Speaker 1 insurance problem, lawsuit, whatever.

Speaker 1 So you got to always have that cap rate. So that's the simple thing on real estate.

Speaker 1 On investing outside of real estate, I like to invest in things I control. So that's basically boils down to.
my own companies and put I put the money in and you know

Speaker 1 yeah well I mean and and if I look at it you know a good trader should always always look at the situation, you know, impartially, dispassionately.

Speaker 1 So even when I was trading my own assets, I'm looking at the asset of my company or whatever the business model is. I have to look at

Speaker 1 how does the business model stand on its own.

Speaker 1 And so like with my AI company, I'm looking at the business model is, hey, we're going to lift two billion people across the world out of,

Speaker 1 you know, that are unbanked today

Speaker 1 into the, forget banking, straight into the decentralized economy and

Speaker 1 get them financially fluent and financially educated.

Speaker 1 I'm looking at this huge potential, and I look at the tech, I look at the tech, you know, I look at my engineering team's capability, look at the tech, look at the vision, I say, hey, this is going to work.

Speaker 1 And it is working. And it's like, it's not like, you know, pie in the sky.

Speaker 1 I see a lot of mistakes and very smart people,

Speaker 1 very capable executives have made big, big mistakes in buying companies because they get enamored by the excitement, right?

Speaker 1 They get enamored by the potential, what can be, and without taking a hard look at what it is,

Speaker 1 right? So it, if it,

Speaker 1 so like the famous example is like Quick Roads buying Snapple for a billion dollars, which was a

Speaker 1 $900 million write-off, right? Because they got so excited about, I want to be in the beverage industry, and I think Snapple's, you know, is the next Coca-Cola killer.

Speaker 1 And they overpaid for it.

Speaker 1 And so you got to always keep your emotion in check. That's why you got to look at your trade ideas, what you're investing in, what you're buying in, completely without emotion.
And just

Speaker 1 look at the deal as is.

Speaker 1 So on your hat and on your shirt, it says Angel AI. Please explain what is that company? Why is it important? Why are you branded head to toe with Angel AI?

Speaker 1 Well, first of all, if you believe in your brand, you better wear it all the time. I love it.
That's number one. I mean, you got to be all about your brand.
So I wear it all the time. My kids wear it.

Speaker 1 He saw my son.

Speaker 1 My wife wears it. Everyone in my family wears it.

Speaker 1 And, you know, people like passion. And if you're not passionate about your brand, right? And sometimes, you know,

Speaker 1 some people will even still will mock me, like, you know, come on, guy, you know, give it up. It wasn't a while, you know.
I'm like, I love what I do, right?

Speaker 1 I wear it because I just love it and I think the brand is cool. I mean, I I truly believe the brand is like super, super cool, so so you know, be proud of it, right?

Speaker 1 And again, that goes back to what I said in the beginning: there's too many people who are going to say you're being,

Speaker 1 you know, whatever, you're over, overthinking stuff. Um,

Speaker 1 so anyway, so what is it? What does it do? Oh, yeah, I forgot the question. You love it,

Speaker 1 so we can love it too.

Speaker 1 See how much we love,

Speaker 1 uh, yeah. So, what it's it's very simple: like you simply chat with it.
Okay. And it's just like chatting on WhatsApp with your best friend, except you chat to Angel through the Angel AI app.

Speaker 1 And Angel AI, she will talk to you like a friend. And you ask it financial questions.
You can ask her, can you get me qualified for a mortgage?

Speaker 1 One of the things that does is repair your credit, which is an amazing story of people, many people who have used it. And credit repair isn't just for low-income people.

Speaker 1 It isn't just for people who don't know how to manage their credit, but everyone can use it because it's a personal assistant.

Speaker 1 My own story is, you know, years ago before I had Angela, I,

Speaker 1 one of my properties had a cable box and that, you know, canceled it and they said, don't, don't return the cable box. And next thing I know, I got a collection of my credit report.
Of course.

Speaker 1 Right? And 184 bucks. Right.
So

Speaker 1 yeah, exactly. So then I gave it to my accounting department and a human being dealt with the cable company, went back back and forth hours hours

Speaker 1 right right now if I if I had that happened to me today I would just tell angel take care of that and the AI will go non-stop relentlessly after the

Speaker 1 the um

Speaker 1 the creditor in that case was the cable company until it it was resolved right so another another example is is Shoshe Mosey and I know you know him well as well

Speaker 1 he he was on a flight with me before we released it to the general public we were we were on a flight flight together, and and I was telling him, Hey, we got this great new product coming out, you know, it's credit repair and so forth.

Speaker 1 And I told him how it worked. And you know, this guy's made hundreds of millions of dollars.
I mean, he's a very wealthy man. I mean, he pays everything cash, right?

Speaker 1 Because he doesn't like to deal with creditors. And the reason is because they messed, messed around with him in the past, and then they messed up his credit.

Speaker 1 So, when he heard about this, he on his own went into Angel AI

Speaker 1 and told Angel what the problem was,

Speaker 1 and

Speaker 1 she repaired his credit. His credit score went up to like, you know, whatever, 700 now.

Speaker 1 And so, and then he told me, and then I met him a few months later, and he said, it worked. I said, what worked?

Speaker 1 I said, what are you talking about? He's like, yeah. And he's like, I went into Angel AI and it fixed my credit.
And it was so easy. Wow.
Right. So, I mean, that's a true story.
I mean,

Speaker 1 he's a true customer. I didn't pay him to do that.
It's just like,

Speaker 1 it does it. So

Speaker 1 people going in, you know, getting the credit repaired, they ask for a mortgage approval.

Speaker 1 It gives you a mortgage approval on the spot.

Speaker 1 And whatever it tells you,

Speaker 1 it's so accurate, right? Whatever it tells you, I put my money behind it. So if it

Speaker 1 says, Dan, you're approved to buy this ranch for $10 million. I don't know how much you paid for it, probably more than $10 million.
But if it says, Dan, I'll give you a loan for $10 million,

Speaker 1 buy this ranch.

Speaker 1 And if it did the calculations wrong or if it messed up and it wasn't supposed to say it,

Speaker 1 you've all heard about AI hallucinations, right?

Speaker 1 When AIs go off the rail and say silly silly things, okay, well, this AI doesn't hallucinate. So if she did,

Speaker 1 if Angel AI hallucinated and says, Dan, here's $100 million, he has a $100 million loan,

Speaker 1 and if she did, guess what? I would write you a check.

Speaker 1 I would anyways give you that loan for $100 million.

Speaker 1 So there's a warranty that comes with it.

Speaker 1 So we're the only financial services company that can issue a warranty like that because every other bank or financial services company you use mortgage company whatever you don't know whether the money will be there until the money is there that's why any financial transaction is so stressful right because you if you go to buy a house you put ten thousand twenty thousand dollar deposit right esque deposit and and you don't know like you know if if if you if the if the loan doesn't come through it's gone right right

Speaker 1 So, or you write a purchase contract with the contingency, right? And now, if you're the seller of the property, one guy says, I'm going to pay all cash, no contingency. And another guy says,

Speaker 1 I'm going to pay you more. Maybe I'm 10%.
I'm going to pay 10% more than the guy with all cash, but I have a contingency for the loan.

Speaker 1 The seller is more likely going to go with the all-cash offer because he knows it's going to close.

Speaker 1 And so what happens in the market is like lower-income people, people who need government financing, like FHA and VA loans, especially veterans, right? They get discriminated against because

Speaker 1 the cash buyer wins, right? And so low-income people get shut out of the housing market.

Speaker 1 However, if you went into Angel,

Speaker 1 if you went to Angel AI and asked for an approval, she gives you an approval, that approval comes with a warranty. So now you can make that offer, right?

Speaker 1 You could have a 580 credit score FHA.

Speaker 1 borrower, right, working two jobs, you know, just enough to make the mortgage payment, right?

Speaker 1 And you'll get that warranted approval so you can make that offer with no loan contingency.

Speaker 1 Okay, so now

Speaker 1 you're same as cash. Okay, and so this is like opens the door wide open for a lot of communities that have been left behind.
So

Speaker 1 as a result,

Speaker 1 we published our data for the last several years and we've dropped or actually we've doubled the approval rates effectively.

Speaker 1 So

Speaker 1 we can demonstrate now now with we have the data that says our

Speaker 1 approval rates for black borrowers and veterans and Hispanic borrowers are almost the same, and in some cases the same as the approval rates for white borrowers across the country, right?

Speaker 1 So, so we literally, like, I think black bar approval, you know, were like three, one out of three black bars were being declined.

Speaker 1 And after, after, and one out of

Speaker 1 like five white bars are being declined okay and after

Speaker 1 applying angel ai it went from one out of three black bars to one out of five just like just like white borrowers all right so um so the the the the impact the social impact is is amazing

Speaker 1 so

Speaker 1 are there companies that partner with it or is it

Speaker 1 like tell me through like the business side of it is it all consumer based or should businesses be utilizing as well to offer a service or is it all consumers coming on and downloading the app well it's it's consumers it's consumer based and it also we work through other other lenders got okay okay so if you're a mortgage broker you uh uh you can and i and i know joe joe shelby's company uses it a lot because they they they originate they work with the consumer and then they use angelai and then and then you can broker it and it comes in through my finance company perfect okay because anyone here's the beauty of angelai anyone can use it so any lender any bank can use it.

Speaker 1 But if you want that 100% trusted warranty,

Speaker 1 then you deliver it through Angel to my finance company because the warranty is

Speaker 1 only good if

Speaker 1 the loan comes here. Can back it up.
Got it. All right.
So let's talk about the philanthropy side.

Speaker 1 Why do you think that companies or even households should have a philanthropic, like a charity component to their lives?

Speaker 1 Well,

Speaker 1 I have a much broader view of philanthropy. I think philanthropy should be a part of everything we do every single day.

Speaker 1 So it is how we exist.

Speaker 1 And so you should start by, if you're going to be in business,

Speaker 1 your answer to why am I in business shouldn't be because I want to get rich and I want to ranch like Dan.

Speaker 1 I guarantee you, if you go into business with that mindset, you're going to fail.

Speaker 1 Well, there are some people who don't, but

Speaker 1 they usually don't do anything worthwhile.

Speaker 1 So

Speaker 1 if you need to go into business with

Speaker 1 who I'm going to help and how am I going to help them,

Speaker 1 and how can I give them the maximum value,

Speaker 1 the best economics to my customer. Because if you can deliver the best economics to your customer and give them a service and a product that is not generally available in the market,

Speaker 1 you've achieved one of the major goals of philanthropy. right? And business philanthropy, I think, is the best form because it's

Speaker 1 never-ending circle, right? So, for example, that's why when with Angel AI, we give credit repair for free, right?

Speaker 1 I mean, you know, it's it's it's credit repair services cost like $200 a trade line and stuff like that. I mean, it's awful.

Speaker 1 The people who, and usually people who end up paying those kinds of money for credit repair,

Speaker 1 they can't afford it as it is, is what got them in trouble. Right.
And so we basically offer free.

Speaker 1 The only thing you pay for is the cost of credit report, like our actual expenses, but the whole thing is free. So now that's a form of philanthropy because I'm just literally helping a lot of people.

Speaker 1 And I get nothing out of it. I did a big investment in building the AI to do it, but I'm not getting any direct immediate result.
But what I am acquiring is I'm investing in the relationship.

Speaker 1 I'm investing in my customers.

Speaker 1 And we'll eventually build a big ecosystem.

Speaker 1 And the same thing where the next thing we're we're rolling out is is very, very low cost payday loans. Right.

Speaker 1 So so payday loans are are are insane. Again,

Speaker 1 they're like 200%,

Speaker 1 so sometimes 600% effective interest rates. Right.
And for people with modest means, like people who can't really afford that, so

Speaker 1 they're trapped in this in this in the clutches of these these

Speaker 1 money traders and they can never get out. They never get out of that poverty.
They're always paying the interest and never saving money. So I said, you know what? The AI can do the whole thing.

Speaker 1 I'm investing one time to build the AI. That's an investment.
I'm going to deliver payday loans at very low interest rates,

Speaker 1 which is basically

Speaker 1 my cost to borrow the money from the banks plus

Speaker 1 the risk of default. So it's very, very low.

Speaker 1 So now

Speaker 1 I can, so I don't plan on making any profit on that service, okay? So we can lend money out, not make any profit, okay,

Speaker 1 and immediately lift a lot of people out of poverty. And the other thing that we're going to do with our payday loans is when you get a payday loan through ANGEL,

Speaker 1 you're going to get your credit built because we will report it to the credit bureaus as a positive trade line. Right.

Speaker 1 So it's a lot of the reason you're getting payday loans because you don't have the credit.

Speaker 1 And if you don't have credit, you can't do get regular financing.

Speaker 1 So we're actually creating this sort of stair step, right?

Speaker 1 Give you the tools, give you the education, because Angelia has a big education component, you can ask her all kinds of financial questions,

Speaker 1 and then get

Speaker 1 the assistance that you need.

Speaker 1 Philanthropy is integrated into our business model. We start by giving and building relationships and helping, right?

Speaker 1 And we invest in you. We

Speaker 1 help you rise up, you know, above your current economic situation. And then, so, you know, let's say you're a wage earner and you're living on payday loans today.

Speaker 1 I get you into a low-cost lending system. Now you're actually saving money.
Instead of paying all your savings into

Speaker 1 a money lender.

Speaker 1 And then you go from saving money, right? Now you've built up enough and you're building credit.

Speaker 1 Now you've saved up enough money for a down payment, which, by the way, a lot of people don't realize you can,

Speaker 1 and right now we have programs in 49 states or 48 states where you can literally buy a house with no down payment, like zero down.

Speaker 1 It's incredible, and people don't know about it. And so, but you just need some credit, right? So we help you build the credit.

Speaker 1 We help you clean up your past debts, and now you're ready to buy a house.

Speaker 1 And now instead of burning all this money in rent and whatever, now you're actually going back full circle. Now you own real estate.

Speaker 1 And you're getting wealthy.

Speaker 1 And that's a full economic system, full cycle.

Speaker 1 Start from point A to get you to

Speaker 1 point Z, right? And one platform to get you there.

Speaker 1 And that's the story of my family's life.

Speaker 1 We became, I mean, literally, my dad had $100.

Speaker 1 the reason he had $100,

Speaker 1 that's all he could, the Indian government would let you exchange at that time.

Speaker 1 So, you come to the country with $100, and

Speaker 1 fortunately,

Speaker 1 by God's grace, he got into real estate.

Speaker 1 For the last question, I asked this every time, and I've never ever gotten the same answer, and I can already feel I'm not going to get the same answer right now.

Speaker 1 So, 100 years from now, 20 years from now, however long it takes for you, Pavan finally sadly passes away.

Speaker 1 But in July I, mortgage company become worth billions and billions and billions of dollars. What percentage do you leave to your children?

Speaker 1 You know, it's, I don't even think about that. I don't leave it to

Speaker 1 I'll put it this way:

Speaker 1 whatever, whatever we have, whatever you have, whatever I have, whatever anybody, whatever you have, right, it doesn't, none of this belongs to you, right?

Speaker 1 It doesn't belong to, it belongs to God, and we're just stewards, right so so who who's going to run it who's going to manage this this opportunity once i'm gone it's going to be who's the best capable of managing it right it may be my kids may not be my kids i don't know yet right so so it's it's because if someone can't manage it without the

Speaker 1 and and continue to grow it in a way that it continues to help more people and keep the underlying basic philosophy that you got to start by investing and helping, right? Then

Speaker 1 what's the point of all this? So part of my job as a steward,

Speaker 1 as like God is giving me this,

Speaker 1 not because I'm smart or anything, he's giving this because for whatever reason, he's decided I'm a capable steward.

Speaker 1 My job is to give it to the next person who's a capable steward.

Speaker 1 I don't know if that answers the question. Definitely not the same answers.

Speaker 1 Okay, so tell us where can they find Angel AI? Where can they find you? Where can they find the mortgage company? Tell the listeners where they can find all your stuff. It's really simple.

Speaker 1 Just go to angelai.com, a-n-g-e-l-a-i.com. And right there on the top, you can just ask her a question.

Speaker 1 And if you want to find me, you can just, the first question you can ask her is, is connect me with Pavan. Oh, cool.
And

Speaker 1 she'll send me a text message that somebody wants to talk to me. That's so fun.

Speaker 1 All right, guys. This is one of those episodes where you're going to want to listen to twice because there's things that he was breaking down that are very different than most of our episodes.

Speaker 1 Check out Pavon across social media. Check out what he's doing with Angel AI.
And it's not just for you.

Speaker 1 You're going to have friends, family members, coworkers, et cetera, whether it's now or in the future that may need the service or may want to talk to the angels and find out things about the financial markets.

Speaker 1 So check out the app. Check out Pavon.
And most importantly, have discussions with your friends, family, and followers about money.

Speaker 1 We grew up thinking it's rude to talk about money, but obviously we now know it's rude to not talk about it.

Speaker 1 We have to understand debt, finances, finances, taxes, bank accounts, how to manage a checkbook. What is it? Does a checkbook even exist anymore? Should I do auto payments? Should I rent?

Speaker 1 Should I lease? Should I buy? There's so many questions that we have, and we all thought it was rude to talk about it, but we have to talk about it. It's just part of reality.

Speaker 1 It's a part of our day-to-day that we have to be able to pay for things. We have to pay for bills.
We have to be able to save up money.

Speaker 1 We have to understand our credit scores and debt and FICO and all those things. We have to discuss it.

Speaker 1 And that's why it's very important for us for you to share this podcast, discuss it with your friends. Check out Bavon, Angelai.
And we will see you guys next Monday on themoneymondays.com.