limited liability partnership

And so there's a reason that most of these professional service firms at scale become partnerships.

They become LLPs.

So you have, I become a partner.

mckinsey i become a partner at the law firm i become a partner at the accounting firm because if you have a ton of very very smart motivated people they eventually will leave to start their own business or you have to show them a path where they can become an owner within the business they're in and this is just playing it out and so this is why i bring this up because a lot of people don't know what it looks like at scale like you have to bring in very intelligent people and have a system or incentive process that gives them a taste in the long run so that the opportunity or the risk adjusted return of them leaving versus them staying, it still makes more sense for them to stay, or at least for a good portion of them to stay.

They're limited partnerships.

They're LLPs.

And so that's because anybody, they have a track for eventually becoming an owner in the business.

And most service-based businesses that rely on expertise... have tracks for people to have small slices of ownership and they're willing to have a small slice of a $200 billion pie rather than start out on their own.

You've thought about what it's going to look like, what you're going to do.

What's your structure going to be? And probably it's going to be a limited company or an LLP.

That gives you corporate protection.

Some people do this as a sole trader without realizing that that takes away the corporate veil, the protection that they get.

Yeah, I might start.

We might start a new thing, LLP.

There's a bunch of investors have already asked us and approached us, so we'll see.

We'll see.

So really, we saw this come to rise in the 1970s and 80s with the rise of managed care organizations.

So over time, legislation was passed that allowed professional corporations, which still have a majority ownership by medical professionals, as well as LLCs and LLPs to own medical entities.

Hospitals were also given a carve out.

So as I said, over time, these pretty strict limitations were eroded.

So for our listeners, we have loan level pricing adjustments.

And these main grids are based on a When you look at the numbers within this pretty extensive grid, the LLP matrix considers everything from the highest scores over 800 and less than a 30% loan to value, which would be 70% equity, all the way up to I have less than 5% down and I've got a credit score below 639 or 659.

So it's a pretty extensive grid with just those two factors.

And whether you're a 30 or 15 year loan, there are many other pricing adjustments.

Yep.

So we look for every LLC, corp, GP, LPG, LLP, LLPC, all of the different in every state.

There are states like Nevada, Wyoming, where the registration requirements are much more lax.

And so you don't have to put your name as an owner necessarily.