Using Cash Flow To Cut Risk

The Health And Wellness Shift

Medical Tenants Inside Fitness Clubs

Barn Caves Amenities And Investor Demand

Pivoting With Demographics And Timing

The Big Data Behind Wellness

SPEAKER_00 0:20

All right, everybody. So I'm going to talk a little bit about the health and wellness side and the gym aspects of what we're doing at not only uh Barncaves, but what we're doing right now. I'm sitting in a gym in Lake Havasu that we opened a month ago, and we're already halfway of where we want to be to debt service the gym in one month. That is a direct reflection on the data and what it is we planned on and a good investment because if we're within a month on opening any business, we earn 50% revenue of where you need to be on debt service, you're gonna get larger check writers, you're gonna get private equities, you're gonna go take the company public. And it's a big, big movement to say that. So, and for those of you that are pretty sophisticated, I think you'd agree. Uh, what we're doing, and not only at this, this literally, I'm sitting in the gym now, what we're doing is we're bringing that same health and wellness data and component to the barn caves. But the best part is that this gym I'm sitting in is only three miles from the barn caves gym. So as soon as that gym is built, I'm taking all of these members and already running, generating business, all of the equipment that we've already paid for and move it into the gym and generate cash flow to mitigate risk for my investors. So when you already have a running business that's going to move into a space in which you're going to build, your risk drops and it creates cash flow. So therefore the building now has immediate value, right? So it's like this I'm gonna build a strip mall. And in that strip mall, I'm gonna go to Staples, Ashley Furniture, and I'm gonna go to Albertson's, right? It's a bring in a grocery store. We know as an investor and as a bank, if I go to Albertson's and Staples and Ashley Furniture and they give me an LOI plus a million dollars in escrow, the likelihood of us debt servicing and making the payment on that building is high. And so, therefore, an investor andor a bank is going to come forward and helping me fund the project and get it built because I have cash flowing businesses that are going to make sure that we're debt servicing the loan that's on the building. So it mitigates risk. And by implementing those strategies is really important. But I want to drive deeper into the data that supports health and wellness. Now, as we all know, baby boomers are the largest generation with all the wealth, and they're the most frail at the moment, are becoming more frail. Healthcare, it is just the way it goes, is continuing to grow, and is is arguably the most fastest growing asset in the world. So right now you're seeing more money being dumped into that space as an example. I was headquartered out of Nashville for many years. Uh, there was more startup capital and technology for healthcare out of Nashville than anywhere in the country. I learned a lot about where the world was going, all the way down to medical devices and certain devices for, you know, heart valves. And I mean, I was knee deep with these people that are creating the investment strategy and knee deep with the engineers doing these things, um, really understanding what's happening, where the world is going, and also seeing where the capital is being deployed. So when you look at what also happened with the 2020 uh pandemic and what's kind of being more popular now with doctors and physicians, you know, educating their clients to go focus on, you know, working out and eating right. Um, you're seeing inside our pitch deck, it even shows some data supporting, you know, the whole farm to table. More organic eating is becoming you know larger and larger. It's growing by 10% a year, or maybe even more at this point. Um the health and wellness and um the organic modalities are becoming more popular, the red light therapies, IV therapies, blood work more often, um, uh, you know, more of the preventative healthcare practices down to peptides, which is a big deal, amino acids and proteins, um, pain management, spinal decompression, all of these things are becoming more and more popular. And it is the fastest growing aspect within the healthcare community. What you've seen when you look at larger public companies, like let's say Lifetime Fitness, you know, they have like a bar and a restaurant, and they have kids' club, and they have salons now, and they have all these great amenities inside their fitness clubs. We were approached by a private equity, private family office that's out of Chicago that left Big Pharma during the 2020 chaos, and they got backed by a lot of private equity that now is seeking boutique, you know, private gyms like ours, and they're coming in and taking up a space and they're leasing a space where they would then service the members and bring in their own patients, you know, from the community to deal with all of those, uh, all of those uh modalities. Again, more of the true health and wellness peptides, stem cells, blood work, you know, all of those things. It's becoming more popular. So they're coming into the space, paying an operator like me to rent some of the space, which creates cash flow from us as a business plan. It shows that we have consistency in cash. And now we have another tenant inside the building, right? Not just a gym that's generate the income. You have another tenant which gives you more stability. It's a medical tenant, which gives you more stability and gives you more credibility. It's more stable. Um, it's just a better practice for anybody who's opening any type of, for example, uh office, uh uh medical offices that are becoming more like Wii workstations is becoming extremely popular. And that's gonna go up across the country. That's actually something we'd love to get into at some place, at some point, is to build medical office and bring in smaller operators to at least those spaces. So we're ultimately doing that, but within our own gyms, and that is gonna be about 30 to 35% of our overall nut that we need to make every single month. So, you know, it's things like that that we're bringing to the table. And when you listen to the community, when you talk to the members here and they go, wait, hold on, you're bringing pain management and peptides and blood work and IV therapy and red light therapy and saunas and you know, um, all of the other modalities, people are going, we want in. And they take insurance. You know, mind you, this year, these are MDs, physician assistants, there's nurses. They have all these people that are in here. And again, it's a private practice, but it's ultimately a consistent open door of people that are trying to take their health and wellness serious. So, therefore, those modalities are gonna be very popular for that particular community. That is the data supporting that is unbelievably impressive. And that's the direction we plan on going with this space. So, think about that from the barn cave side. We're bringing in health and wellness, bringing in medical tenants into a space that's already generating income that's gonna go into the building when we build it in phase one, and we're gonna already cover our nut or overhead and provide additional cash flow for any cost overruns if we need it for the barn caves. But it's also now a beacon, it's a footprint, it's an anchor for the residents that are gonna own those barn caves and what amenities that are associated to becoming a resident or an owner of that community. And the out of the 93 units, 40 of them are already accounted for by investors that have already written checks and chose their units. And these are people that are friends or become friends of mine and family in some cases that love that package. They're going, this is unbelievable that this even exists. So you're telling me that I don't have to pay for this in my HOAs. I have no liability because you separated the gym from the residents. The gym is open to the community and generates the cash flow. I have a pool that's designed like Club Drift in Dubai or Beach Club Drift in Dubai. So you have that amazing PR. And then you have all of these other, you know, holistic kind of components to it with a 40,000 square foot gym, all brand new equipment. You have, you know, uh steam rooms and you have cold plunges and you have all the locker rooms and all that cool stuff that's more like a resort spa style that is part of the Barn Caves community. So the movement is becoming big, not just in the game, but clearly for this community. And that's why we're getting the support that we're getting. But yet the business practice, in my opinion, is solidified and generating cash flow before we even open up the gym. So the main gym. So we got proof of concept. I'm sitting in the building now. We're within one month, we generated 50% of what we needed in revenue. I think we're on the right track. So I just want to give you guys a little sliver of what it is we're doing, what we're seeing, and why we're going down that road. I named the company Paradigm a long time ago. You need to pivot, you need to shift. And right now with the chaos, you got to be frugal, but you got to watch the data. You need to know which way the world's going. And again, if you look at baby boomers in the middle of their generation, retirement is 2033. We're going to be at the middle of that retirement community at 2020 or 2033. We have plenty of time and a really good run to watch and understand the spending habits of that generation and hover around that space. I think we do really well. All right, guys, I'm going to give you guys some data. So Joe just sent me this for us to take a look at. And you guys, you guys know how Joe is. Joe's a data nerd with me. So here we go. McKenzie. So I'm giving you data. These are publications. Okay. Data. McKenzie, future of wellness. Wellness is now two trillion dollars global, is a two trillion dollar globe market driven heavily by millennials Gen X redefining health as daily lifestyle. Number two, Global Wellness Institute report. Okay. Wellness economy projected to hit 9.8 trillion by 2029. Let's go back. Hear what I just said. Current market data, globally, 2 trillion by 2029. The global projection is 9.8 trillion in the next three years. I have to say it again. Right now, 2 trillion across the world in 2029, 9.8 trillion, and that's global wellness institute. Okay. Let's keep going. Wellness real estate is one of the fastest growing sectors, 15% projected growth per year after year. Health and wellness, so gyms and or larger gyms and uh and apartments. Think about apartments, how big, you know, um dog parks, right? Dog parks are becoming more popular. We put dog parks in our stuff. We have two dog parks, in fact, at the barn caves. We know where it's going, and what you have to do is you have to move towards that and continue to build with what people are looking for. Okay, here we go. Let's keep going. So again, 15% growth in health and wellness and real estate. That also includes, I want you guys to look this up. Delos Wellness. Dalos is actually a private equity firm. Two partners left Goldman Sachs. They've raised hundreds of millions of dollars. They have circadian rhythm lighting, hospital grade filtration air, and and uh water filtration systems now going into all the living spaces, offices, or what have you. It's called Daylos Wellness. Take a look at in fact, they own the the uh uh the well building standard. It's a it's a point system for building buildings now. Um, so that'll give you an idea. They bought they they went down, I think they started in 2011. They're all over the world, all over Dubai. Uh Daylos Well, I know them very well. You guys will hear me talk about it. In fact, I am actually well certified. You'll see it in my email uh chain. Okay, here we go. Um, global fitness industry report. Woo! This is a good one. By the way, I haven't read this yet. This is what Joe just sent me, so I can do this, okay? So Global Fitness Industry Report 2025. So this is last year. Memberships up six percent year after year, revenue is up eight percent, and industry consideration essential, no uh, no, not optional. Meaning that it is absolutely across the industry that you're seeing an 8% growth per year, and memberships are up by 6%. So ultimately, even though it's up six percent, people are spending more money on their health and wellness inside that space. That's something that you want to take away. Uh, let's see. Number four, US fitness industry outlook from 2025 to 2030. 77 million uh 77 million Americans have gym memberships. Industries, this industry continues steady and long-term growth with a consideration of 9% growth. About right. Massive adoption, stable and scalable demand, and number five, fitness market data 2026. Global fitness industry, 257 billion, boutique fitness 51 billion, and the growth and the fastest growing sector is 79% of the younger consumers prioritize wellness. That is absolutely insane. Boutiques are are the fastest growing gym uh in membership. So again, more smaller gyms, not the public gyms, the lifetime or not the lifetime fitnesses, but like the um, you know, the equinoxes, the LA fitnesses, the all the other like big box ones, right? They're just not doing so well. Um, okay, let's see. Number six, gym spending and demand 2026. Gym spending is up 19% year after year. 86% say gym access is crucial to their goals. So that's why we have uh 24-hour access off of an app. They're saying 19% of gym spending is more is now going towards household uh year after year. So again, household income, 19% of that income is starting to go towards health and wellness. That's that's a that's a heck of a data point. Um, L E K fitness market membership, 77 million plus visits up 8%. So they're even tracking visits. How many people are actually showing up more and more to the gym? 8% increase. Um, shifts are told uh towards mental health. We all know that's like a thing, right? I mean, the most trending social media platforms right now are all about mental health and coaches and all that fun stuff. So mental health is one reason, longevity and lifestyle uh optimization, uh, which is perfect. Number eight, uh Gen Z driving gym boom. Okay, this is it says news. I don't know, is it is it a is that a is that an actual publication?

unknown 14:13

It's the from the Guardian.

Closing Thoughts And Next Steps

SPEAKER_00 14:14

Oh, it's from the Guardian. Okay, so here we go. So number eight, Gen Z driven, uh driven, Gen Z is driving the gym boom. Okay, so that's from the Guardian um uh publication. Record gym membership growth, fitness replacement, nightlife, and social environments. Now, if you guys look at like uh alcohol sales, it's down significantly. Vegas is the one that kind of reports that, and it's down quite a bit, but you're seeing uh people are drinking less, they're partying less, the nightlife and nightclubs are dying off, and people are going towards health and wellness. So it's a Gen Z, it's a millennial and Gen Z um movement and trend, which is killer. Well, guys, and I do what I gotta cut you loose. I have an investor coming for a site walk. Um, I'm actually 10 minutes late. So hope you guys enjoyed this. I have a lot more coming, and I'll keep giving you guys those data points with real sources that you can track, but I really appreciate you guys listening in. On to the next. If any of this segment was of value to you, I encourage you to take a look at some of the other webinars and what it is that we're doing as a firm. I manage a$100 million debt fund now, which is a distressed asset fund. I do a lot of things and private equity from equity opportunities and development and identifying materials all the way down to opening up gyms. We just opened up a gym in Lake Havasu. We'd encourage you to take a look at the Family Office Society website, see what type of product that we're bringing to the town, and look how fast we ramped up with memberships and showed proof of concept of way the world is moving, but we use the data to support our decision making with that investment. We'd love to continue to encourage you to watch what it is we're doing and how we're mitigating risk through these unique times. I really appreciate the opportunity to earn your business. And if there's something that you guys want me to touch on or talk about or topics, feel free to DM, right, you know, right on this post. Let me know what it is you'd like for me to touch on so I can go ahead and give you more value and continue to hit some of the things that matter most. So thank you very much for watching. We'll see you soon.