The Money Mondays - AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103

Episode Date: January 6, 2025

We have Pavan Agarwal as our guest today. He's the CEO of a very influential mortgage company, and he's here to share his insights into the financial sector, the secrets to his success, and the future of AI in finance... --- Pavan Agarwal is a highly accomplished entrepreneur and the CEO of a leading, influential mortgage company. With a keen understanding of the financial sector, he has transformed his business into a driving force in the industry. Known for his strategic vision and leadership, Pavan has guided his company through significant growth, earning recognition for his innovative approaches to mortgage solutions and his commitment to delivering value to clients and stakeholders alike. --- Like this episode? Watch more like it 👇 Making BILLIONS in the Mortgage Industry: https://youtu.be/La2_0fLB62g He Built a $500M Real Estate Empire with NO MONEY: https://youtu.be/w4SBQS0gtd0 Making Millions with Real Estate Investing: https://youtu.be/OQO9hhGQf6I Jimmy Rex's Million-Dollar Real Estate Strategy Revealed: https://youtu.be/OWADoFktfHQ Watch ALL Full Episodes Here: https://www.youtube.com/playlist?list=PLs0D-M5aH-0IOUKtQPKts-VZfO55mfH6k --- The Money Mondays is a business podcast here to teach you how to make money, invest money, and donate money by showcasing some of the world's most successful people and how they do the same. Hosted by serial entrepreneur Dan Fleyshman, the youngest founder of a publicly traded company in history, this money podcast gives you an exclusive behind the scenes look at how the wealthiest celebrities, entrepreneurs, athletes and influencers make, invest and donate money. If you want to learn more business and investing while you work to improve your financial life, you're in the right place! Subscribe: https://www.youtube.com/@themoneymondays?sub_confirmation=1 Dan Fleyshman, The Money Mondays Learn more here: https://themoneymondays.com Watch all the podcast episodes: https://youtube.com/playlist?list=PLs0D-M5aH-0IOUKtQPKts-VZfO55mfH6k Let’s Connect... Website: https://themoneymondays.com Podcast: https://podcasts.apple.com/us/podcast/the-money-mondays/id1663564091 Twitter: https://twitter.com/themoneymondays LinkedIn: https://www.linkedin.com/company/the-money-mondays/about/ TikTok: https://tiktok.com/@themoneymondays FB: https://www.facebook.com/The-Money-Mondays-110233585203220/

And Angel AI, she will talk to you like a friend. And you ask her financial questions. You can ask her, can you get me qualified for a mortgage? 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. So if it says, Dan, you approved to buy this ranch for $10 million.

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 to you as check. I would, I would anyways give you that long for $100 million. All right. So there's a warranty that comes with it. So we're the only financial services company that can issue a warranty like that. Ladies and gentlemen, welcome to the Monday 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 and you guys have been there every step of the way. Out of those weeks, out of those hundred, those hundred two hundred three weeks We've been top ten for 95 of those weeks and top hundred 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 notice We've been running this for ad free for over a hundred episodes now So on the money Mondays as you guys guys know, we cover three core topics, how to make money, how to invest money, how to give away to charity. You might hear noise in the background because we are inside of an RV motor home right this second at Blacksite Ranch or

better known as the Wild Jungle. 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. So we're gonna 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. That's why I like to tell people what you're in for, how long is this gonna be,

so you can make decisions on your timing and travel schedule. All right, without further ado, our guest today has built major companies in very, very different categories from the mortgage industry to AI. So we're gonna have a lot of fun here today going through asking very specific questions about investing, building businesses, philanthropy, etc. So without further ado, Pavan, if you can give your quick two-minute bio so we can get straight to the money. Immigrant came here when I was little and my father was in real estate.

So we bought and sold real estate. I cleaned the toilets, painted the house, mowed the lawn, did everything back when we were, 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 and I started building technology and I was he commissioned me at 11 to build all the technology with a mortgage company. That's what I did. I was good at algorithms and seeing patterns where there aren't any patterns and that kind of leads right into AI because that's what you know

machine learning is all about is patterns, pattern recognition. And so it's really you know 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? It's a byproduct of good AI. And so we formally incorporated the AI company in 2012, 2013. Oh, wow. People couldn't even spell AI back then. 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. We digress, yes. So yeah, I know. So in 2013, we moved to Puerto Rico from California. I grew up in SoCal, went to UC Irvine. And we moved to Puerto Rico and we incorporated the AI company in Puerto Rico, because it's just an incredible tax structure. 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 structure is incredible. And here's the amazing, a lot of people don't realize this, but the Puerto Rico government will give you 50% back. So every dollar you spent in R&D in Puerto Rico, you get 50 cents back from the Puerto Rico government. 50, five zero?

Five zero. Whoa. Right, so that's in. All right guys, I gotta go. Yeah. Right, so literally, you don't have to go, half your capital raise problem is solved simply by being in Puerto Rico. It's fascinating. Right, go, you know, half your capital raise problem is solved simply by being in Puerto Rico. It's fascinating. Right? Because, you know, just imagine if you need $10 million,

five million is coming from the government. It's like, you know, do it. It's there. Most people don't know about it. So I'm glad we're getting that message out. And second, so when we moved to Puerto Rico, 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. And we hired local Puerto Rico talent. And 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 you know long process I mean decades of data science of building the 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, you know, nothing worthwhile is built overnight, right? And it takes a lot of patience and you gotta fight through everyone who's telling you you're crazy. Everyone's telling you you can't do it. And, you know, personally in my life, it's kind of like, you know,

it's the experience I had was like, 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. And I always just think like, you know, we can do really big things. 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 why do you think you can do it and so forth. And the ultimate reality is that as long as you don't fall into that trap, you can do it.

Everyone can do it. And most people fall in the trap of the naysayers. And that's, I think it's a shame. And I think the current pop culture education system doubles down on it. And most kids are discouraged. You know, it's like, it's like guardians of the galaxy, no, guardians of the galaxy, the other one.

The Avengers? No, no, no, Hitchhiker's Guide to the 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. Kids are slapped for thinking they can do anything.

And if we just think out of the box and say, no, you can do anything, and just pursue it. Most of the time, you'll actually succeed if you actually just stick with it. So let's first start on the mortgage side of things. So I just got the mortgage space this year with our mutual friend Joseph Chalabi. Talk us through, I just started this year, you've been doing it for decades. Why is the mortgage space important? How do loan officers, are they making money out there?

Tell us about loan officers. Because a lot of people have been messaging us about working in the loan office space and I want to be able to explain to them, is it good? Is it exciting? Is it worth it? It's hard work. Right. Now, the thing is like for a couple of years, 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 or real estate market was booming.

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 hundreds of thousand dollars. I mean, you didn't have no, without any effort, you didn't have no anything. You just because there was just- You're just picking up the phone, everyone's calling you. Right. Right. And so that spoiled the industry. People thought, you know, I'm supposed to

make 200,000 a year. Yeah, exactly. Well, people making a million dollars a year without very little training and experience and ability. They were just making a lot of money. 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? Which is consistency, following up with your clients, staying in, you know, making yourself relevant, marketing yourself, differentiating yourself, right?

The basics of any business, right? It's what made you successful, what makes all the businesses you own successful, because they spend so much time defining who they are and communicating that. 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 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. And it's 12, 18 hours a day of nonstop work.

And that's how you become a top producer. And in this market, there's top producers and there's no producers. There's nothing in between, right? And so, you know, just you gotta get out of the delusion that there's easy money anywhere. There's no such thing as easy money. Right?

Once in a while you get lucky, like a bunch of loan offers got lucky in 2020, 2021. But that, you know, some people just got in the business that time, just timed it right, got in, and made a lot of money and got out. Okay. That's like winning the lottery, right? But in life, most of the money is made by just staying consistent and just keep doing

it and keeping the hard work and then just wait for the, you know, when it rains, just wait for it to rain and then you catch all you can at that point. Like Bitcoin waiting for a decade and finally hits it. Exactly. Okay, on the AI space, as you mentioned, AI has been around for decades and decades and decades. 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.

Hundreds and hundreds and hundreds and hundreds of billions of dollars a month is being invested into the category from venture capital, Silicon Valley and Wall Street. Why do you think so much money, time and energy is finally going to AI this year? Yeah that's a great question. So you know like I said the first AI, you know fully driven AI loan product that we did was in 2018 and in 2018 you know my concept well my concept for what we're doing has always been like, you know, since like mid 2000, I saw that the only real future is chat. 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 the reality. That's the reality. That's what it's going to be. Right. And so 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. Right. So I, so I was, we've been building that out and, and it's complicated to do something as data intensive as a mortgage and as complex and so many things can go wrong in that process. Do it entirely by chat is very hard and very complicated. So we rolled this out in 2018 and then we were laughed at because that was back when

Facebook's metaverse was going to take over. Like everyone everyone's like what are you doing? Chat is is old stuff, old technology. What are you guys doing investing so much money in chat when everyone thinks everyone's headed to 3D virtual reality. I'm like no they say no one's that's not gonna you know. My vision was that's not going to take off kids don't wanna wear goggles around the whole day long. Right, kids like it quick and fast. So, you know, so while we were doing that, then all of a sudden chat GPT came out, right?

And it was like, what, three years ago now, where it hit the scene with 3.0, and it's suddenly now, chat and the whole idea of talking to an AI got into people's consciousness. So I thought it was like tremendously helpful. And so let's talk about what makes chat GPT possible. Why did chat GPT 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. similar. And I noticed he has some llamas out there. And that was llama 3.3, I think. So why does, why did chat GBT becomes, why was it even possible? And a lot of people don't realize that, that the real breakthrough didn't come from OpenAI. The real breakthrough

came from a paper that Google published in I think 2015. And it's called Attention is All You Need. And that was a breakthrough in how to do language processing specifically, but I think in general applies to most complex problems that an AI would have to deal with. And it cut out most of the overhead of processing a large amount of data. And so with that breakthrough paper and then OpenAI applied it extensively and then created ChachiPT 1, 2, and then 3, and 3 was actually good enough to capture the imagination of

the larger market. And so it took that final 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 ChachiPD 3.0 came to the scene, right? Look how long it takes. Technology doesn't happen overnight. It feels when you're the consumer of it,

you suddenly see, oh, there's a new thing called ChachiPD. No, it was, it takes a long see, oh, there's a new thing called chat. You know, it was It's take a long process before it's actually relatable when you can take science and make it relatable where people can can Understand it in an everyday way. It takes us a big investment just like just like with Bitcoin. Yeah, you know, I mean That's the paper original original Satoshi's, before Satoshi's paper, there's another paper that defined the whole idea of decentralized ledgers and then that one failed, there was another coin that came out and failed, and then Bitcoin came out, right? I mean, this is 20 plus years in the 2014. It was 340 bucks for Bitcoin at the time. 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. It was a company

called Robocoin, but it ended up selling. Those ATMs are now everywhere, right? They're gas stations, liquor stores, malls, et cetera. Okay. So on the investing side of life, you have a lot of options. Why spend so much time investing into the AI space? Like, why do you invest your money, your time, and your energy into the AI category? Well, actually, 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, mostly buying and sometimes selling, but mostly buying and holding. the houses and buying is mostly buying and sometimes selling, but mostly buying and holding. And there's a few times where I looked at whatever you owned a property, I said, this

property is too much trouble. I sold it and I went back and I said, I never should have sold it. Never should have sold it. 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. No matter what. Commercial, residential, Airbnb, rental, blah, blah, blah, blah, blah, selling.

Because they bought it for 400 grand, it went up to 600 grand. They crushed it up 50%. That 600 grand is worth a million now. I bought this building for 6 million, I sold it for 8 million, I'm a genius. It's worth 11 million now. 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 home prices in California

fell 50%, 60%, right? And I remember you go through Laguna, Laguna Gale, Laguna Hills, right? And those million dollar, two million dollar homes were selling for 600,000. Wow. You know, and people were walking away from their mortgages. Another eight million. Exactly. And I was advising those homeowners, like if you can 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, 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? And population keeps rising, right? You know, and then 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. Credit disappeared overnight. I said, you know, that's gonna get fixed. The government is pouring so much money at it,

it's gonna get fixed. I said, you should go out'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. They want to loan you expensive money, I promise. And that's what my family did. We went and bought a lot of real estate from 2008 to about 2012. It was the best buys ever. We were getting, you know, like at land cost, zero value given to the improvement.

This is like no brainer. Just buy as much as you can all right, so No, and recently we just bought a bunch of Property in Texas You know a lot of low-income housing by someone in Oklahoma. This is it's just amazing. It's great returns. It's a lot of work sure Yeah, I spend you know it's been a month in Texas driving around looking at real estate and talking to the neighbors and doing the math. Yeah. But you know, it's fun. It's fun work. It's a game. It's like real life monopoly. Right. Yeah. So what Pavan

just mentioned about the supply and demand was really interesting. There literally is no more beachfront property. If you think about it, there's no more beaches being made just the way it is. 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. What's also interesting is, and especially in somewhere like California or New York, certain areas that we are a couple million units behind from apartments, houses, etc. 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 a lot higher at 81 and 83. 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. 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 Slurpees Plus now we got RFK running the FDA which is gonna 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. We had one gym that you might have to drive 15 miles to and no one carried because there was no cell phones. Now everyone's obsessed with working out. So I say that because if your kid lives to 106, 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 lived 106, they need 30 or 40 years of money saved up. Where before, sad to say, you only needed like five or 10 years because people mostly passed away at, let's call it 73 to 83 years old. 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 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. A lot of construction companies went bankrupt during the shutdown as well. When you just compound all this together there's no catching up for California and a lot of other cities of actually having enough units. Why does that matter to you? Well supply is not growing fast enough. Well, the demand keeps growing. What happens to the price? 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. 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 like, hey we're doing four million in revenue, would you invest a hundred K into our company? Like when someone's pitching you as an investor, what do you look for in an entrepreneur or in their business? Well real estate is really simple. You just look at the cap rate and it's a simple math and you know whether it's a good trade or not. I mean 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. 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, right? Because a million things can go wrong. If you buy 10 properties, one of them could be a total write-off because of, you know, some insurance problem, lawsuit, whatever, right? So you got to always have that cap rate. So that's the simple thing on real estate, on investing outside of real estate. I like to invest in things I control, so that basically boils down to my own companies and I put the money in. You bet on you. Yeah. Well, I mean, and if I look at it, a good trader should always look at the situation

impartially, dispassionately. 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 how does the business model stand on its own. And so like with my AI company, I'm looking at the business model is, hey, we're going to lift 2 billion people across the world that are unbanked today into the, forget banking, straight into the decentralized economy and get them financially fluent and financially educated.

And I'm looking at this as a huge potential. And I look at the tech, I look at my engineering team's capability, look at the tech, look at the vision, I say, hey, this is going to work and it is working and it's like, it's not like, you know, pie in the sky, right? There's a lot, I see a lot of mistakes and very smart people, very capable executives have made big, big mistakes in buying companies because they get enamored by the excitement, right? They get enamored by the potential of what can be and without taking a hard look at what it is, right?

So if it, so like the famous example is like Quik or Oats buying Snapple for a billion dollars which was a $900 million write-off, right? So they got so excited about I want to be in the beverage industry and I think Snapple is the next Coca-Cola killer and they were paid for it. And so you got to always keep your emotion checked. That's why you got to look at your trade ideas, what you're investing, what you're buying in completely without emotion and just look at the deal as is. 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? Well first of all, if you believe in your brand, you better wear it all the time. 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. He saw my son Yeah, right My wife wears it everyone my family wears it and you know people like passion

If you're not passionate about your brand, right and sometimes, you know, I get some people will even still will mock me Like, you know, come on guy, you know, give it up. It wasn't a while a while you know I'm like I love what I do right I work as because I just love it and I think the brand is cool I mean I truly believe the brand is like super super cool so so you know be proud of it right and again that goes to back to what I said in the beginning is there's too many people is gonna say you're being sure you know whatever you're you're over overthinking stuff so anyway so what is it what does it do oh yeah I forgot the question you love it so we can love it too see how much he loves it yeah so what it's very simple like you'd simply chat with it okay and

it's just like chatting on whats WhatsApp with your with your best friend, except you chat to Angel through the Angel AI app. And Angel AI, she will talk to you like a friend, and you ask her financial questions, you can ask her, can you get me qualified for a mortgage? Can you, one of the things that does is repair your credit, which is an amazing story of people, Many people have used it. And credit repair isn't just for low income people. 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.

My own story is like years ago, before I had Agile AI, one of my properties had a cable box and that canceled and they said, don't return the cable box. The next thing I know, I got a collection of my properties had a cable box and that, you know, canceled in this. They don't, don't return the cable box. The next thing I know, I got a collection of my credit report. Of course. Right. And, and 184 bucks. Right.

So, yeah, exactly. So then I gave, gave it to him to my accounting department and a human being dealt with the cable company went back and forth. Hours and hours and hours. Yeah. Right. Right. Now, if I, if that happened to me today, I would just tell Angel take care of that and the

AI will go non-stop relentlessly after the creditor, in that case was the cable company, until it was resolved. So another example is Suga Shain Moseley, and I know you know him well as well. He was on a flight with me before we released it to the general public. We were on a flight together and I was telling him, hey, we've got this great new product coming out, you know, it's credit repair and so forth, 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. He pays everything cash, right, because he doesn't like to deal with creditors.

And the reason is because they messed around with him in the past, and then they messed up his credit. So when he heard about this, he on his own went into Angel AI and told Angel what the problem was. And she repaired his credit. His credit score went up to like, you know, whatever, 700 now. And so, and he told me then I

met him a few months later and he said it worked I said what worked so he talking about he's like yeah and he's like I went into angel AI and it and it fixed my credit and it was so easy Wow right so I mean that's a true story I mean it's not easy he's a true customer I didn't pay him to do that it's just like it does it so people going going in, you know, getting the credit repaired, they ask for a mortgage approval. It gives you a mortgage approval on the spot, right? And whatever it tells you, like it's so accurate, right? Whatever it tells you, I put my money behind it. So if it says, 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, 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 to buy this ranch. And if it did the calculations wrong or if it messed up and it wasn't supposed to say it, you've all heard about AI hallucinations, right? When AIs go off the rail and say silly things, this AI doesn't hallucinate so if she did if angel if angel I hallucinated and says dad here's a hundred million dollars he has a hundred million dollar loan and if she did guess what I would write you a check I would I would anyways give you that loan for hundred million dollars all right so there's a warranty that comes with it 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 if you go to buy a house you put ten thousand, twenty thousand dollar deposit right escrow deposit and you don't know like you know if you if the if the loan doesn't come through it's gone right right so or you you write a purchase contract with the contingency right and now if you're the seller of the property one guy says I'm gonna buy pay all cash no contingency and another guy says

I'm gonna pay you more Maybe I'm 10% I'm gonna pay 10% more than the guy with all cash, but I have a contingency for the loan The seller is more likely gonna go with the all cash offer because he knows it's gonna close right 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 the cash buyer wins, right? And so low income people get shut out of the housing market, okay? However, if you went into Angel, if you went into 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? You could have a 580 credit score FHA borrower, right? Working two jobs, you know, just enough to make the mortgage payment, right? And you'll get that warranted approval so you can make that offer with no loan contingency Okay, so so now You're same as cash Okay, and so this this is like opens the door wide open for a lot of communities. I've been left behind so as a result We published our data for the last several years and we've dropped

We've been double the approval rates effectively. So we can demonstrate now with we have the data that says our 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. So we literally like I think black borrower approval, you know, were like three, one out of three black borrowers were being declined and after, and one out of like five white borrowers are being declined. Okay and after applying Angel AI, it went from one out of three black

bars to one out of five, just like, just like white bars. Right. So, um, so the, the, the, the impact, the social impact is, is amazing. So are there companies that partner with it or is it 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 consumers, it's consumer based and it also we work through other lenders. Got it, okay. Okay so if you're a mortgage broker you can and I know Joe Shelby's company uses it a lot because they

originate they work for the consumer and then they use angel AI and then and then you can broker it and it comes in through My finance company perfect because anyone here's a beauty of angel anyone can use it So any lender any bank can use it right? But if you want that that% trusted warranty, then you deliver it through Angel to my finance company because the warranty is only good if the loan comes here. Can back it up. Got it. All right. So let's talk about the philanthropy side. Why do you think that companies or even households should have a philanthropic, like a charity component to their lives? Well, I have a philanthropic, like a charity, components in their lives?

Well, I have a much broader view of philanthropy. I think philanthropy should be a part of everything we do every single day, right? So it is how we exist. And so you should start by, if you're going to be in business, you know, your answer to why am I in business shouldn't be because I want to get rich and I want to have a ranch like Dan. I guarantee you if he's going to business with that mindset, you're going to fail. Well, there's some people who don't, but they usually don't do anything worthwhile. So, if you need to go into business with who I'm gonna help and how am I gonna help them, right? And how can I give them the maximum value, 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 that is not

generally available in the market, okay, you've achieved one of the major goals of philanthropy, right, and business philanthropy I think is the best form because it's never-ending, never-ending circle, right, so for example that's why when with Angel AI we give credit repair for free, right, I mean you know it's credit pair services cost like $200 a trade line and stuff like that. I mean it's awful. The people who and usually people who are not paying those those kinds of money for credit repair they can't afford it as it is what got them in

trouble. Right. And so we basically offer free the only thing you pay for is the cost of credit report like the our actual, but the whole thing is free. So now that's a form of philanthropy, because I'm just literally helping a lot of people. 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. I'm investing in my customers. I'm investing in my customers. And we'll eventually build a big ecosystem. And the same thing, the next thing we're rolling out is very, very low cost payday loans. So payday loans are insane. Again, they're like 200%, sometimes 600% effective interest rates. And for people with modest means, like people who can't really afford that. So they're trapped in the clutches of these money traders and they can 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. I'm investing one time to build the AI. It's an investment. I want to deliver payday loans at very low interest rates, which is basically my cost to borrow the money from the banks plus the risk of default. So it's very, very low. So now 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, 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,

you're going to get your credit billed. Because we will report it to the credit bureaus as a positive trade line. Right? So, it's a lot of the reason you're getting payday loans because you don't have the credit. Right? And if you don't have credit, you can't do, get regular financing.

Right? So, we're actually creating this sort of stair step. Right. Give you the tools, give you the education, because Angel has a big education component. You can ask all kinds of financial questions and then and then get the assistance that you need. Right. So that's so so

philanthropy is integrated into our business model. We start by giving and building relationships and helping, right? And we invest in you. We hope, 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, I get you into a low-cost lending system. Now you're actually saving money instead of paying all your savings into a money lender. And then you go from saving money, right, now you've built up enough and you're building credit. Now you've saved up enough money for a down payment, which by the way, a lot of people don't realize you can in 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 And this is it's incredible and people don't know about it. And so but you just need some credit, right? So we help you build a credit We help you clean up your past debts, and now you're ready to buy a house. And now instead of burning all this money and rent and whatever, now you're actually, we're going back full circle, now you own real estate.

And you're getting wealthy. And that's a full economic system, full cycle, right? Start from point A to get you to, you know, point Z, right? And one platform to get you there, right? And that's the story of my family's life, right? I mean, when we came, I mean, literally my dad had a hundred dollars, right? And the reason he had a hundred dollars,

that's all he could, the Indian government would let you exchange at that time. Right? So you come to the country with $100 and, you know, fortunately, you know, by God's grace he got into real estate. Sorry. So for the last question, I ask 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.

So 100 years from now, 200 years from now, however long it takes for you, Pavan finally sadly passes away. But in July, I, mortgage company become worth billions and billions and billions of dollars. What percentage do you leave to your children? Uh, you know, it's, I don't even think about that. I don't leave it to, I'll put it this way. Whatever we have, whatever you have, whatever I have, whatever anybody, whatever you have, right?

None of this belongs to you, right? It doesn't belong to... it belongs to God, and we're just stewards. So who's going to run it? Who's's gonna manage this opportunity once I'm gone? It's gonna be who is the best capable of managing it, right? It may be my kids, may not be my kids. I don't know yet. Right, so it's because if someone can't manage it without the 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 by investing and helping

right then then There was the point of all this right? So part of my job as a steward as Like God is giving me this Right not because I'm smart or anything, it's he's giving this because for whatever reason he's decided I'm a capable steward. Right, it says my job is to give it to the next person who's capable of steward.

I don't know if that answers your question. Definitely not the same answer as you. Yeah. 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.

Just go to angelai.com, A-N-G-E-L-A-I.com. And right there in the top, you can just ask her a question. And if you wanna find me, you can just, the first question you can ask her is, connect me with Pavane. Oh, cool.

And she'll send me a text message that somebody wants to talk to me. That's so fun. Right. So. All right guys, this is one of those episodes where you're gonna wanna listen to twice because there's things that he was breaking down

that are very different than most of our episodes. Check out Pavan across social media, check out what he's doing with Angel.ai, and it's not just for you. You're gonna 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. So check out the app, check out Pavan, and most importantly, have discussions with your

friends, family, and followers about money. We grew up thinking it's rude to talk about money, but obviously we now know it's rude to not talk about it. We have to understand debt, 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?

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. That's just part of reality. It's 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.

We have to understand our credit scores and debt and FICO and all those things. We have to discuss it. And that's why it's very important for us for you to share this podcast, discuss it with your friends. Check out Pavan, Angel AI, and we will see you guys next Monday on the moneymondays.com.