Pavan Agarwal
Appearances
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
and angel ai she will talk to you like a friend and you ask your 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 says dan you're approved to buy this ranch for 10 million dollars and if it 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 a check
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And I was advising those homeowners, like, if you can... If you can bear through it, don't get caught up in the momentary, oh, I can rent for less right now.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
That and then look at the overall macroeconomics. There's a fixed amount of land and population keeps rising. And you have to understand why it crashed. 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, that's going to get fixed. The government is pouring so much money at it. It's going to get fixed.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 at land cost, zero value given to the improvement. This is like no brainer, just buy as much as you can.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And recently we just bought a bunch of property in Texas, a lot of low income housing, bought some in Oklahoma. It's just amazing, it's great returns. It's a lot of work. I spent a month in Texas driving around looking at real estate and talking to the neighbors and doing the math. But it's fun. It's fun work. It's a game. It's like real life Monopoly.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Plus now we've got RFK running the FDA, which is going to make America healthy again.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
It's a simple math and you know whether you need to, whether it's a good trade or not. 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. The cap rate, I look at minimum cap rate at 10%. If I don't get 10% cap rate, I'm not touching it because a million things can go wrong.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
If you buy 10 properties, one of them could be a total write-off because of some insurance problem, lawsuit, whatever. So you got to always have that cap rate. So that's a 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. Better than you and your team.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
If I look at it, a good trader should always look at the situation impartially, dispassionately. Right. So even when I was trading my own assets, I'm looking at the asset, my company or whatever the business model is. I have to look at this. How does the business model stand on its own? Right.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And so like with with my company, I'm looking at the business model is a we're going to lift two billion people across the world out of you know, that are unbanked today into the, forget banking, straight into the decentralized economy and get them financially fluent and financially educated, right? And I'm looking at it as a huge potential.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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. And it is working. And it's like, it's not like... you know, pie in the sky, right? I see a lot of mistakes and very smart people,
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 like the famous example is like Quaker Oats buying Snapple for a billion dollars, which was a $900 million write-off, right?
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Because 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 overpaid for it. And so you've got to always keep your emotion in check. That's why you've 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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. He saw my son. My wife wears it. Everyone in my family wears it. And, you know, people like passion. If you're not passionate about your brand. Right.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 he commissioned me at 11 to build all the technology for the mortgage company that's what i did i was good at math i was good at algorithms and and seeing patterns where there aren't any patterns
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And sometimes, you know, some people will even still will mock me like, you know, come on, guys, you know, give it up once in a while. You know, I'm like, I love what I do. Right. I work because 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And again, that goes back to what I said in the beginning is there's too many people is going to say you're being, you know, whatever you're, you're over overthinking stuff. So anyway. So what is it? What does it do? Oh, yeah.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Yeah. So 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. 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?
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
One of the things that it does is repair your credit, which is an amazing story. 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
like my own story is like you know years ago before i had angel ei um one 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 day i know i got a collection of my credit report of course right and and 184 bucks right so credit goes down yeah exactly so then i gave to gave it to to my accounting department and a human being
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
dealt with the cable company, went back and forth.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Right. Now, if that happened to me today, I would just tell Angel, take care of that, and the AI will go nonstop, relentlessly after the creditor, in that case was the cable company, until it was resolved, right? So another example is Sugar Shane Mosley, and I know you know him well as well. He was on a flight with me before we released it to the general public.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
We were on a flight together, and I was telling him, hey, we've got this great new product coming out. It's credit repair and so forth, and I told him how it worked. And this guy's made hundreds of millions of dollars. I mean, he's a very wealthy man. He pays everything in cash. Because he doesn't like to deal with creditors.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And the reason is because they messed around with them 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 he told me, and I met him a few months later, and he said, it worked. I said, what worked?
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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, he's a true customer. I didn't pay him to do that. It's just like, it does it. So, people going in, you know, getting the credit repaired, they ask for a mortgage approval.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
It gives you a mortgage approval on the spot. And whatever it tells you, it's so accurate. Whatever it tells you, I put my money behind it. So 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 AI hallucinated and said, Dan, here's $100 million. Here's $100 million loan. And if she did, guess what? I would write you a check.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
i would i would anyways give you that loan for 100 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
That's why any financial transaction is so stressful. Because if you go to buy a house, you put $10,000, $20,000 deposit, escrow deposit, and you don't know. If the loan doesn't come through, it's gone. Or you write a purchase contract with the contingency. 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...
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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, The mortgage company is a subset of the AI company. It's a byproduct of good AI.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
I'm going to pay you more. Maybe I'm 10 percent. I'm going to pay 10 percent more than the guy with all cash. But I have a contingency for the loan. The seller is more likely going to go with the all cash offer because he knows it's going to 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Right. They get discriminated against because.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
the cash buyer wins right and so low-income people get get shut out of the housing market okay however if if you went into angel 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 you could you could have a 580 credit score fha um borrower right working two jobs you know just just enough to to make the mortgage payment right
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And you'll get that warranted approval so you can make that offer with no loan contingency. So now you're the same as cash. And so this opens the door wide open for a lot of communities that have been left behind. So as a result, we published our data for the last several years, and we've doubled the approval rates effectively.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
So what we can demonstrate now, 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, so we literally like, I think black bar approval, uh, you know, we're like three, uh, one out of three black bars were being declined.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Um, and after, after, and, and one out of, uh, um, like five white bars 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 borrowers. Right. So, um, so the, the, the, The impact, the social impact is amazing.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 service or is it all consumers coming on and downloading yeah well it's consumers it's consumer based and it also we work through other other lenders okay okay so if you're a mortgage broker you yeah you can and I and I know Joe Joe Shelby's company uses it a lot
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Because they originate, they work for the consumer, and then they use Angel AI, and then you can broker it, and it comes in through my finance company. Perfect, okay. Because anyone, here's the beauty of Angel AI, anyone can use it. So any lender, any bank can use it.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
But if you want that 100% 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 it is how we exist. And 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 ranch like Dan.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
I guarantee you if you go into 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,
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And so we formally incorporated the AI company in 2012, 2013. Oh, wow. People couldn't even spell AI back then.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
who i'm going to help and how am i going to help them right and and how can i give them the maximum value um 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 you've achieved one of the major goals of philanthropy.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And business philanthropy, I think, is the best form because it's a never-ending circle. So, for example, that's why with Angel AI we give credit repair for free. Credit repair services cost like $200 a trade line and stuff like that. It's awful. Usually people who end up paying those kinds of money for credit repair They can't afford it as it is, is what got them in trouble, right?
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And so we basically offer free. 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
right 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 is i'm investing in the relationship right i'm investing in my customers right and and we'll eventually build a big ecosystem right and the same thing where next thing we're rolling out is is very very low cost payday loans
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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. They never get out of that poverty. They're always paying the interest and never saving money. So I said, you know what?
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
The AI can do the whole thing. I'm investing one time to build the AI. That'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 I don't plan on making any profit on that service.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 we digress. Rabbit hole. We digress, yes. So in 2013, we moved to Puerto Rico from California. I grew up in SoCal. I went to UC Irvine.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
So we can lend money out, not make any profit, 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, is when you get a paid loan through Angel, you're going to get your credit built because we will report it to the credit bureaus as a positive trade line.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
right so a lot of the reason you're getting paid 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 so we're actually creating this this sort of stair step right right give you the tools give you the education because angelia 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 to learn
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Philanthropy is integrated into our business model. We start by giving and building relationships and helping. We invest in you. We help you rise up above your current economic situation. 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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. 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 incredible and people don't know about it.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 to buy a house. 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 and you're getting wealthy. And that's a full economic system, full cycle.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Start from point A to get you to point Z and one platform to get you there.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
right and 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 and the reason he had a hundred dollars because 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 and you know fortunately you know by god's grace he he got into real estate
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
You know, 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, none of this belongs to you. It belongs to God, and we're just stewards. So who's going to run it? Who's going to manage this opportunity once I'm gone? It's going to be who's the best capable of managing it.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And we moved to Puerto Rico and we incorporated the AI company in Puerto Rico because it's just an incredible tax structuring company. 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
It may be my kids, may not be my kids. I don't know yet. So it's because if someone can't manage it and continue to grow it in a way that it continues to help more people and keep the underlying basic values
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
philosophy that you got to start by by investing and helping right then then what's the point of all this right so part of my job as a steward as as as like god is giving me this right not because i'm smart or anything is he's giving this because for whatever reason he's decided i'm a capable steward right my job is to give it to the next person who's capable steward
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
I don't know if that answers your question.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
It's really simple. 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. And if you want to find me, the first question you can ask her is connect me with Pavan. Oh, cool.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
I would anyways give you that loan for $100 million. So there's a warranty that comes with it. So we're the only financial services company that can issue a warranty like that.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
5-0? 5-0.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Right. So that's an... All right, guys, I got to go. Right? 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. Because, you know, just imagine if you need $10 million, $5 million is coming from the government. It's like, you know, do it. It's there.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 advantage 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, you know, local Puerto Rico talent.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 long process. I mean, 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, you know, nothing... Nothing worthwhile is built overnight.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And it takes a lot of patience. And you got to fight through everyone who's telling you you're crazy. Everyone's telling you you can't do it. And 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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, you know, 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And most people fall into the trap of the naysayers. And that's, I think it's a shame. And I think the current pop culture education system
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
doubles down on it and and most kids are discouraged you know it's like uh it's like guardians of the galaxy now guardians of the galaxy the other one uh vendors no no hitchhikers hitchhikers that's the one i was thinking about where where if you have an original thought it's it slaps you right and and that's the system kids are slapped for having original thoughts kids are slapped for thinking they can do anything um and if we just think out of the box and say no you
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
You can do anything. And just pursue it. Most of the time you'll actually succeed if you actually just stick with it.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
It's hard work. The thing is, for a couple of years,
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
um you know especially i mean most of 2020 right since uh 2010 to 2020 was a good time for loan officers because interest rates were low the real estate market was booming and then and then in the covet period it was amazing i mean the i think we did five trillion dollars in one year of business so literally if you had a license you were made you know hundreds of thousand dollars i mean didn't had no without any effort
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
You didn't have to know anything. You just, because there was just- Just picking up the phone when everyone was calling you. Right, right. And so that spoiled the industry. People thought, you know- It's easy.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Yeah, exactly. Well, people were 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
work yeah right which is consistency uh following up with your clients staying in you know making yourself relevant marketing yourself differentiating yourself right the basics of any business right this is what made you successful and 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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, you know, 12, 18 hours a day of nonstop work. And that's how you become a top producer.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 got to 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 officers got lucky in, you know, 2020, 2021. But that, you know,
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Some people just got in the business that time, just timed it right, got in and made a lot of money and got out. That's like winning the lottery. But in life, most of the money is made by just staying consistent and just keep doing it and keep doing 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.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 for what we're doing has always been like since like mid 2000, I saw that the only real future is chat. And because I looked at my kids, my kids don't wanna be on the phone. They don't wanna do anything.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
They communicate everything through chat. And I said, whatever the kids are doing,
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
that's what's that's the reality that's the reality that's what'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 i was always we've been building that out um and and it's complicated to do something as as
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
as data intensive as a mortgage and and as complex and and and so many things can go wrong in that process to do it entirely by chat is very hard and very complicated so uh and then so we roll this out in 2018 when and then we were laughed at because that was back when um 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 what are you guys doing investing so much money in chat
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
when everyone thinks everyone's headed to 3D virtual reality. And I'm like, no, that's not going to, you know, my vision of that's not going to take off because kids don't want to wear goggles around the whole day long. Right. Kids like it quick and fast. So... So while we were doing that, then all of a sudden ChatGPT came out.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 tremendously helpful. And so let's talk about what makes ChatGPT possible.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Why did ChatGPT suddenly come to the scene and other similar, and I noticed you have some llamas out there, and that was llama 3.3, I think. So why did ChatGPT become, why was it even possible?
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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 okay and that was a breakthrough in how to do um
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
how to do language processing specifically but i think in general applies to most um most complex problems um that an ai could have would have to deal with and it it cut out most of the overhead of processing a large a large amount of data.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And so, with that breakthrough paper and then OpenAI applied it extensively and then created, you know, ChatGPT 1, 2, and then 3, and 3 was actually good enough for, to capture the imagination of the larger market. And so, it took that final Like, packaging of this science has been developing for so many years.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
I mean, if you think about 2015, the paper comes out, and it was, what, 2020, 2021, when Chachi PD 3.0 came to the scene, right? Look how long it takes. You know, technology doesn't happen overnight. It feels, when you're the consumer of it, you suddenly see, oh, there's a new thing called Chachi PD. No, it was... It takes a long process. Before, it's actually relatable.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
When you can take science and make it relatable where people can understand it in an everyday way, it's a big investment. Just like with Bitcoin. You know, I mean, that's the paper, original Satoshi. Before Satoshi paper, there was another paper that defined the whole idea of decentralized ledgers. And then that one failed. There was another coin that came out and failed in the end.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And then Bitcoin came out, right? I mean, this is 20 plus years in the making. Right. It doesn't happen overnight.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
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. Nice. And there's a few times where I looked at whether you owned a property, I said, this property is too much trouble and I sold it.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
And I went back and I said, I never should have sold it. Never should have sold it.
The Money Mondays
AI is REVOLUTIONIZING Financial Services Forever w/ Pavan Agarwal 🤖 EP103
Yeah, I mean, 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 Niguel, Laguna Hills, right? And those million dollar, $2 million homes were selling for $600,000. Wow. And people were walking away from their mortgages.