Heidi Henderson (00:00)
Welcome to the Slash Tax podcast. I am so excited to chat with you. We are always talking about tax strategies. We're talking about not necessarily banking, it's finance and accounting and tax. Most people are looking at, hey, how can I save money? How can I be more efficient? And it's very interesting. We have a totally weird perspective because

as a specialty tax provider, we dig into the weeds on some unique things, but we aren't actually doing the accounting, we aren't actually doing the tax prep. So we have to rely on certain data and we have to rely on certain data points and accounting records and invoices and all kinds of things because what you get in is what you get out. Garbage in, garbage out. So...

We are very detailed as an engineering firm, but if the information we're provided isn't perfect, the data we send out isn't going to be perfect. And when it comes to accounting, kind of has to be like with taxes, it has to be perfect. It has to match to the penny. So that's my little bit of an introduction. And I'm excited to have the conversation with you.

so that you can share a little bit with listeners for this podcast, which is both CPA firms and accountants, but also a lot of real estate investors, a lot of business owners. And I know that what you're doing really carries a lot as it relates to real estate investors and your platform. So I wanna start with just allowing you to give your own introduction as to what your platform is. This is an intro to Baseline.

I'm really excited that we are launching a partnership with you guys because I see firsthand the value in the platform you have developed and you have built. And I know without a doubt that it is a really tremendous value add and just benefit to our clients. So it kind of helps our clients. There's nothing in it for me, aside from the fact that if they're using your platform, the data I get is so much better. And that helps me provide a better report on the backend. And so.

That's the roundabout way that this all connects and super excited to chat with you and learn more about the platform.

Mathias Korder (02:19)
Thank you very much Heidi for having me on your podcast and 3TS for having us and very excited about a partnership ⁓ You think you mentioned, you know that you know banking is not necessarily sometimes kind of the starting point around kind of know, keeping in the financial management but for us really is the core and So when we think about kind of the vision of what we're trying to deliver we break it down into like three core areas and and one of them at the starting point is

is really core round kind of just banking, right? Because this is money coming out, it's the money storage, it's the money going out, right? So it's where the transactions sit, it's the source of truth of your finances. And the first step that we've really focused on is driving consolidation of all these different tools that were built for small businesses, built for individuals, ⁓ real estate investors were using them, but they were highly fragmented, ⁓ many times not built for the real estate investor, right? We had folks that were using

Heidi Henderson (03:11)
you

Mathias Korder (03:19)
a few different bank accounts, Excel documents, Venmo to collect rent. Obviously, they were using a CPA, ⁓ calling many different brokers for insurance and lending. so there was this, everything was spread across everywhere, and things weren't consolidated. And at the same time, was no automation. So you basically had ⁓ a complete lack of confidence across how your...

Heidi Henderson (03:36)
Mm-hmm.

Mathias Korder (03:44)
core of your finances were set up. So Baseline brings all that together. Yes, we are a bank account. We offer expense management. We offer an automation of payments, both coming in and obviously payments that you spend and offer all sorts of controls around that. But we embed a booking platform directly into the bank account. It's designed around the tax code that real estate investors have. We think about the ways that real estate investors invest. And they have entities with multiple properties.

Heidi Henderson (04:03)
you

Mathias Korder (04:14)
want to be able to see kind of either portfolio or property level analytics and financials. And they want to prepare for taxes. And so the first step is obviously the utility of the bank account, the convenience and time savings that we drive from this consolidation. The second step really is how do we provide clarity? And that is providing our customers with a full view of their finances. And as you said, it's having that clean database.

Heidi Henderson (04:34)
Mm-hmm.

Mathias Korder (04:38)
⁓ to be able to then build assessment and find tax savings and other opportunities. And the third picture for us is called, we call action.

And this is something that we're actually kind of in the middle of building. ⁓ And the layer of action can only be done once you have a very clean financial picture, right? Once you have kind of your entity level financial structure, once you have a clear view of your P &L, you know, of your balance sheet, you have your assets depreciated effectively and in the most tax efficient manner. The action component for me is really leveraging all that data and actually

Heidi Henderson (04:57)
Mm-hmm.

Mathias Korder (05:17)
throwing the power of AI to then say, we have all this data. What are the opportunities? Can we increase rent? Oh, you have this asset that you haven't depreciated effectively. And you can definitely accelerate appreciation. If you compare different cost items,

and compared to benchmarks, they're way out of line. So how do we help you reduce some of those cost line items? And so, for us, we have today over 50,000 customers. can imagine we have over 250,000 P &Ls of properties. We can deliver a lot of intelligence back to our customer. And so we're very much in inning one and inning two and starting inning three, which is this inning of action and really being able to kind of almost be a CFO

Heidi Henderson (05:56)
Yep.

Mathias Korder (06:05)
in our customers' pockets. ⁓ Part of that will be baseline driven, but at the same time, we're gonna go find the best partners to offer our customers ⁓ services where they need it. Do they need to kind of reduce their insurance bill? Great. Hey, you haven't depreciated assets effectively. Let's plug in some of our partners here in a proactive way, in an intelligent way, to help them save on their taxes. And so...

Heidi Henderson (06:07)
Yeah, absolutely.

Mm-hmm.

Yeah, absolutely.

mean, because information is power. And I do a lot of presentations. I speak to a lot of real estate groups, a lot of masterminds, you know, it's tax. But the tax and all of the efficiencies of that are ultimately what pencil down to the ROI on a project. And I can tell you, I have asked thousands and thousands and thousands of investors in different rooms all over the country. Can you tell me what is your annual rate of return?

or ROI on your property. And there's like one person in every room that can answer that question. They do not have the data points and the analysis. They think they're doing well. They're like, well, I'm making enough to pay my bills or I'm cutting even here or there. Well, the depreciation helps or I haven't factored that in or whatever those pieces are. But it's fascinating to me that a lot of times what I find with real estate investors

is they're kind of just looking at the rental property. kind of, a lot of them get into it. Like they start with a rental. Maybe it was even their primary home. And then they ended up moving and thought, you know, instead of selling this, I'm just going to start to use this as a rental property. I joke that this sort of starts the addiction. And then you see this, this being addicted to the deal and people begin to acquire another property and another property and another property. And next thing you know, they've got seven or eight or nine or 10 plus rental properties.

And they're like, well, I mean, I think I'm profitable. you know, lot of people are like, well, you know, I don't really make that much money on them. think I'm break even, but they don't really know. And I find that fascinating. And so with your platform, just to clarify for listeners, your platform starts off as a banking platform, which I think is really interesting, but you are very hyper focused on real estate owners. Correct?

Mathias Korder (08:27)
we only work with real estate owners and operators. so even from the moment you open a bank account, we're going to be asking you how many properties do you have? What kind of strategies are you employing? And that will inform us. And we have a set of presets, and we're building more, that will automatically open bank accounts, what we call kind of property level accounts. We'll structure them by the different entities that you have. ⁓

Heidi Henderson (08:30)
Yeah. Right.

Mm-hmm.

Mathias Korder (08:54)
And if you're someone that is very profit first, we'll open kind of accounts for profit. We'll make sure you have segregated accounts for security deposits. If we know that you're saving up for a new deal, we'll create a savings account for that new deal or for whatever kind of ⁓ renovation project you may be working on. And so we ask you the right questions and kind of educate our customers as they come in into our accounts. And that helps us drive the automation. Because if we know we have accounts by property or we have accounts for different purposes, ⁓

Heidi Henderson (09:13)
Mm-hmm.

Yeah, right.

Mathias Korder (09:24)
We can then make sure that 100 % of your transactions that come through are automatically tagged at the moment of the transaction automatically for you.

Heidi Henderson (09:31)
Yeah. Right. So

let's get super granular here. So you guys are working with property owners and managers. You then can create like almost automated and very quickly, this is what I think is amazing, because I've done this myself and it is not easy. It's not fast either. Quickly open up bank accounts for every single property, every single individual LLC.

Mathias Korder (09:38)
Yeah.

Heidi Henderson (10:00)
all within the same login and platform. But beyond the banking, then you have all of the auto tracking and all of sort of the financial analysis for each of those all in one place. And so essentially the portfolio of real estate is now rolling into their whole portfolio combined and yet everything is segregated and can automatically track and assign to the right property.

Mathias Korder (10:26)
That's exactly right. You have an offer to join Baseline as a marketing team. That's exactly right. mean, essentially every single entity you open up a bank account for.

And then with a click of a button, you can open up different accounts for each property. We've already underwritten that entity. So we have here, we've opened up that account. takes a few minutes. It's all done online. And we've perfected kind of the onboarding and kind of the KYC and everything around how real estate investors structure their LLCs. So there's series LLCs, more complex structures. And so we've created an onboarding that kind of accounts and supports that. And then when you open accounts for each property, it's a click of a button.

Heidi Henderson (10:42)
Mm-hmm.

Mathias Korder (11:08)
And you can open different accounts for different purposes. We even have short-term rental customers that have an account for every listing. So you go into Airbnb, and you're every account, a separate account for every listings that you have. So then you know exactly how even you have a listings P &L view. You can look at it from a listings view or a consolidated view. And this just gives you a lot of clarity around your finances. And the most important thing is

Heidi Henderson (11:16)
Mm-hmm.

Yeah, it's so

cool.

Mathias Korder (11:36)
You're

not just trying to allocate things to properties, but you also want to then allocate them to, we have over 120 real estate specific categories. And we have today an AI that's like 95 % accuracy and we're looking to improve it even more in the coming months. It tags all your transactions to the right tax category. And if something isn't tagged correctly, obviously there's a review button so you can go and, you what used to take you an hour can take you now five minutes to review. If something is wrong, you go and switch the

there's a pop-up that's gonna come up and say, would you like to remember this setting going forward? So anytime you have a specific transaction and a specific value or a specific name, it'll automatically get tagged to that specific category for you. So it learns ⁓ if there are corrections needed. And this is just very early days. think we're gonna have a lot of advancements in this. ⁓ But that's the starting point, right? Having a bank account that...

Heidi Henderson (12:30)
Yeah.

Mathias Korder (12:33)
manages all your transactions in an automated way. So then we can get to the next part, which is the exciting part, which then you can say, now we can start optimizing and analyzing our finances. The bookkeeping work is...

Heidi Henderson (12:46)
Yeah,

empowers investors to become more profitable to then, I love having a savings account that you're taking XX profits and dropping that into another account. You're seeing that grow. The growth is aimed towards, okay, let's acquire the next property and let's continue to roll this. ⁓ I really haven't seen anything like it. It's a reason why I was real excited when we connected with you and your team.

From an investor standpoint, the questions I always think of as an investor myself and working with a lot of them, ⁓ what if someone already has, well, mean, people already have all of their accounts set up. They have different bank accounts or they have bank accounts set up for other properties and they own properties right now. How difficult is it to kind of onboard onto your platform?

Mathias Korder (13:31)
Yeah, that's a great question. every investor has a bank account, has a system of how things are done today. ⁓ We allow you to connect an existing bank account or many bank accounts directly onto Baselane. You can choose how many years of transaction data you want to import. so obviously live transaction will continue to flow through into Baselane from your existing bank accounts. But you can also say, want two years of my transactions from my existing bank relationships to come into Baselane. ⁓

tag everything for you as well, even though you may already close those tax years. And so you can start on base lane, but actually import all of your historicals ⁓ by doing that. If you've been using an accounting tool, whether you've been using QBO or Xero or even an Excel document where you've kind of been tracking your transactions, we have a way that you can import that information as well. So we have a few different formats. We have some clear instructions with click of a button to import them all into base lane. And then our AI will go and tag things that haven't been tagged as well.

Heidi Henderson (14:03)
Wow.

Really cool.

Mm.

.

Mathias Korder (14:31)
But we make it

pretty easy to get started. We don't see folks ⁓ sometimes doing everything all at once, but we have a success team. We can set up an onboarding call. We can support you ⁓ in getting it done, but it's extremely easy. ⁓ So it's something that we have. Over 50,000 customers that have started with us. We're probably going to end this year with over 100,000 customers. So we're growing pretty quickly. ⁓

Heidi Henderson (14:54)
It's crazy. Yeah.

Mathias Korder (14:58)
I think, obviously, the onboarding is essential, but we've done a lot of work to make it pretty seamless for our customers.

Heidi Henderson (15:05)
Yeah, yeah. It's from what I've seen, it's been amazing. ⁓ Another question I would have again, from my own experience and that of working with many investors, what happens with the investor who has been working on improvements and they've been renovating, they're getting ready to set it up as a rental and they have.

⁓ pocketful of receipts from Home Depot and some Zelle and Venmo transactions to their contractor and ⁓ paper receipts and things all over the place. Not necessarily the most organized and not a lot of structure to it. How difficult is that to manage and get someone in that place? And I asked this question again because I actually see this a lot and not to point fingers at anybody but...

You know, it's a difficult situation and it is so time consuming and overwhelming for clients who are in that situation. They're like, I have so much work to do or even two years of work to do to try to input all of these receipts and all this data. Do you have any seamless or fast way to do that and help that person get onboarded?

Mathias Korder (16:13)
Yeah, so I think we hopefully have the fastest way of doing this. And so if these were transactions that occurred on another bank account that was not Baselane, so you would connect that bank account into Baselane. So we pulled in your transactions. ⁓ If they were transactions that were made on Baselane, the transaction's already there, you would download our mobile app. In our mobile app, you would basically go into a button to say capture receipt. And you would just snap pictures of every single receipt you have. ⁓

Heidi Henderson (16:25)
Mm-hmm.

Nice.

Mathias Korder (16:40)
RAI will go and read that receipt and will automatically find the transaction that ⁓ that receipt is attached to and then attach it into that transaction. In some cases, ⁓ you may have added a receipt.

Heidi Henderson (16:50)
Nice.

Mathias Korder (16:55)
And there's something that is slightly different. And so we built a pretty elegant system where it'll show you everything that was automatically tagged and automatically matched. And there may be a few where there's some questions. So you can go and review them. And if the transaction isn't there, you can create the transaction if it's far in the past. Or you can correct it and make sure it's added to the right transaction.

If you have them already digitized, ⁓ you can drop over 100 receipts at a time, just in one go. And we'll go and scan all of them at a time and go and individually go and allocate them across each transaction. ⁓

We make it as easy as possible for you. Obviously, if you're using BaseLane and you're just getting started on BaseLane, will get, when you make a transaction, ⁓ it's much easier. can go and just, imagine you just left Home Depot, you would go and snap that receipt ⁓ with your phone on our mobile app and it automatically gets categorized into it. And even if sometimes you have these issues where like, ⁓ you make a transaction but it doesn't post for two days but you've already sent the receipt in, we'll hold on that receipt for,

seven days waiting for that transaction to appear and then match it. So the system has kind of found all the different edge cases and tries to make it as efficient as possible for you to kind of manage receipts and any kind of documents that you want to attach it to your transactions.

Yep.

Yeah, so would say we have a full team of real estate finance experts, ⁓ which is our support team that can answer. mean, these are folks that have been working with us for a very long time, and they're deep into real estate finances. They know how this works. And so ⁓ if you have a question around,

how to manage a transaction or how to manage your balance sheet, they'll be able to answer you. It's not just a support team that's built around solving a small problem you have. Our team understands real estate. Then we also have kind of a success team, which is I need to schedule a 30-minute Zoom call and jump on the phone with someone. ⁓ We have folks that are ready to kind of support our customers as they on board or starting to use new products if they need it. And then at the same time, we do work with a series of partners

whether they're CPA firms or partnership that we're launching. so, know, Basin is a collaborative platform. It's a place where, you know, it's not just

the owner operator of real estate, but you can invite a collaborator, whether it's a CPA, a bookkeeper, some virtual assistant onto the platform and can collaborate on it together. So we have a set of very simple kind of collaboration rules. actually building a set of advanced collaboration rules where you can give someone even access to set up a payment, but then you go in and approve it. And so you can set up like very rules around how you want someone to kind of support you on the platform.

Yeah, and maybe just to kind of add onto it, I think a lot of tech platforms, have a little chat bot where you can go and chat with them. ⁓ We have...

available on live calls. throughout the whole day, we have a full team that's available for a call. If you prefer to chat with someone, you can chat with someone live. ⁓ And so it makes it much better. Our team will, as you're talking on the phone, we have a platform that allows them to even see what you're doing on your computer. So they'll send you a quick request. They can actually see exactly what you're doing on their platform. can guide you. So it really makes it easier. Obviously, we have a help center, and we have a lot of self

things that can of just get off the shelf. And obviously we enable kind of an AI that goes and finds the right answers for you at a starting point, but you can easily get on the phone or chat with someone live.

I think the two things that for me are kind of the things that make you stay are one, it's the automation. When you start realizing like actually I used to spend so much time doing a lot of stuff, which is basically now just automated and actually it's much more accurate than I used to do it. And I think the other piece is once you have your finances in a very clean format, it's amazing what you start seeing.

And right now we do rely on our customers to do that assessment of, they can see their property performance, we give them that insight, but there's still decisions that need to be made. And so we want to bridge that gap from saying, we will be delivering the intelligence to you. And so I think coming soon,

we will be the ones that are delivering proactively where opportunities exist for you. No longer will you have to go and assess the numbers to say where the opportunities are. We will be telling you where there are opportunities. We'll be telling you, there are meaningful opportunities, whether it's on tax savings or insurance, on specific cost items, on increasing revenues. And we'll be the ones providing that. So it's kind of going from that convenience and automation to the clarity, but then really to the intelligence and the actions that you can take.

And I think that's, yes.

And I think the way we want to do it is this is going to be extremely personalized to every customer.

Obviously, we value our customers' privacy. So all of this is based off of our customers' information. We do use benchmarking across our existing customers to give customers indication of where there's opportunity. But I think with the power of AI today, and some people say we're in day 119 post-singularity, we can do a lot.

And already today, if I was to pull the finances of one of our customers and kind of leverage the power that an AI like Claude has, I could very easily already tell that customer where the opportunities are. But I want to embed it into a way that's conversational and a way that's proactive directly into kind of every single one of my customer's pockets. ⁓

And in a simple way, you don't want to overwhelm with analysis. What is the low hanging fruit and the opportunities that really are achievable ⁓ for our customers?

Yeah, I appreciate that question. think the short answer is that it was the right idea at the right time. And so the idea needs to also map to the timing of the market and the resources that are available. And so if you go into the of fintech, the early movers of fintech, especially in the neo banking world and the payments world, were, if you think of company like Chime, one of the first neo banks in the United States,

they went and built everything from scratch. They went and built kind of their KYC, their fraud, the connectivity into kind of a partner bank. had to build all of that connectivity, but it was a lot of work. They spent probably the first two years of what they did just building the infrastructure. And they were going after mass markets.

When we started Base Lane, and this was kind of the idea comes to fruition kind of towards the end of 2019, early 2020. ⁓

all this infrastructure starts to actually be available for others to start using it. And so there had been quite a lot of investment into fintech. And I think that's the wonderful thing of the financial market and it states how much investment goes into innovation. But there were leading platforms that we could leverage to connect into our sponsor bank. There were incredible payment platforms that we could write with minimal new code. There were fantastic platforms for

for fraud management, fantastic platforms for us to manage compliance. ⁓ So we said we can go build a bank that has actually focused on a niche. It's a niche that's 14 million in size, so it's a massive space. And we can do it in a short amount of time ⁓ with not that much money.

And so we had this idea, we raised kind of in the first kind of six months, we raised, I think it was $3.5 million, which doesn't sound like a lot of money to go build maybe the platform I've described, but obviously we've now raised over $40 million to continue building what we're building. And process today, I think we just crossed over $4 billion of payments on the platform.

this last month. And so, you know, we were able to start with something, but we were able to build quickly, right? Within the first year, we had, you know, accounts, had debit cards, we were able to, you know, send checks for our customers, we were able to kind of have an automated rent collection platform. And, you know, we were able to build, ⁓ you know, things pretty quickly.

And I think this idea comes from kind of prior job that I had. used to work at a company called the Boston Consulting Group. And we work with the largest financial service companies across the United States. And it was very clear in some of the work that I did there that each type of business in United States requires very different things from their financial service providers.

whether you're an e-commerce business, you're probably gonna need access short-term capital because you're managing inventory, right? If you're a doctor, you need upfront loans because you're buying all this machinery.

If you're a logistics provider, you have tons of drivers and cars and you need cards for them to go pay for gasoline and different things. Real estate investors are unique in themselves. We have very unique cash flow. These large monthly rent coming in, large expenses going out. You have multiple properties. There's a unique tax code, very unique insurance, very unique lending, very unique solutions on the tax side on how you depreciate assets. there's so many unique things that allow us to we can actually go build something that is very unique

unique and different from what Chase offers you than from what QuickBooks offers you and combine these two elements of the financial stack into one.

Yeah.

Mm-hmm.

Yeah.

Yeah, no, that's a great question. I think the specialization, how we call it verticalization, super important. If you were call, if you were a Chase customer and you called Chase and you said, have this fantastic cost segregation study from ETS, what do I do with it? That support agent probably would be lost. If you call our support agent, they're going to say, open up your assets and liability page for the property you just did it in. And here is exactly where you enter the cost segregation study analysis.

and

reports that you guys have provided and it'll take you five minutes to enter it, right? And that flows directly into your tax statement, into your tax report instantly. But to answer your question, so we've really started focusing on kind of the, of, I would say, five to 50 unit real estate investor. We call them the multi-property owners and operators of rental properties.

And that is kind of the core space that we operate in today. Obviously, we have customers that have a few doors as well, and they have this ambition to grow and really become a realist investor and have more properties. So they're looking for a platform to set them up for growth. ⁓

But we also have folks that have commercial rentals as well. And sometimes when you look at a real estate investor, like no real estate investors sometimes doing just one strategy. We have real estate investors that do some long-term rentals. They do mid-term rentals. We have a great partnership with a platform called Furnish Finder that we launched two months ago. And then we have customers that are doing short-term rentals and using Airbnb and VRBO. ⁓ And there are customers that do commercial. And then they do some fix and flipping. And so there's different strategies among

We listen investors and we really tried to cater to all of those amongst kind of the individual But we've had more larger investors come to us as well So we have you small institutional investors, which are small teams usually less than ten people And they want automation right? They don't want to go higher, you know four or five bookkeepers and Accountants on their team. They want to be able to have tools that give them power and so, you know, they use our platform And at the same time we've seen, you know quite a few property managers also use basically

And so property managers, ⁓ their complexity is increased because they're going and managing expenses on the property. They need to disperse owner statements to their customers, their landlords. And so there's a future where a property manager is using base lane, their customers are using base lane, disbursements of rent that they've collected are instant into the landlord's ⁓ account, and that owner statements flow

instantly. You're not waiting for a month or quarter to close and sending an owner statement. Now, ownership is alive. The transaction is happening and you're seeing that owner statement as a landlord, as an owner, ⁓ live from your property managers use base lane. I would say the world is, we want to own the individual real estate ⁓ operator and rental manager. And that's a pretty big space to go after.

Yes.

Yeah, 100%. So would say like 50 % of the assets on base lane are single family rentals, right? Single family homes. But we have tons of multifamily as well.

I've even seen some crazy use cases where folks have trailer parks of 100 RVs that they're renting out and using base lane. So there's lots of different use cases, but I would say 50 % are SFR and then you have, whether it's multifamily, condo, duplex, triplex and different types of rental assets. And think roughly 10 % is commercial on base lane. But usually it's someone that may have a mix across

mix of assets across a portfolio.

Yes, Yeah. ⁓

I've seen...

the use cases of BaseLane that have come through are wide. And so we've definitely had customers that have come and said, want specific ⁓ improvements to kind of your rent collection so that I can use self storage. And so we do have, we will start updating our rent collection to actually work not just for kind of monthly rent cycles and ⁓ residential real estate, but also to work for commercial, to work for other assets that you may want to just create automation of payments, right?

On the self-storage side, there's unique things that the customers would ask for. And so we've, yeah.

term.

Look, our aim is obviously to expand our reach to as many real estate investors as we can, right? Today, as I mentioned, we 50,000 customers by end of year. think we're on track to get to roughly 100,000 customers. So that's still a very small percentage of all the real estate investors that are out there.

And so growth is kind of at the front, our main priority at the moment, but at the same time, really focusing on developing our platform, as I mentioned, from this kind of convenience and automation and clarity to then being this kind of intelligence platform. And so first versions of that intelligence are coming out this year. ⁓ I think there's a few kind of feature gaps across specific strategies that our investors have that we also want to close down and improve.

I think we also want to kind of really enable our partners on our platform as well. And so we don't think of partnerships just of a link in your website. We think of partnerships as how do we build products that enable the partnership to work effectively? And so whether it's a partnership with ETS or a partnership with an insurance carrier or a partnership with a listings platform for midterm rentals, how do we really embed that into our platform, drive education around it? I can have an incredible,

assets into depreciation pages, part of my balance sheet. But if people aren't using it effectively, then it doesn't work. And so you have to drive education. You need to promote the right partners ⁓ so that the customers take advantage of all of the software that we built. And so there's a lot that goes into it.

Yeah, no, 100%. We're very excited for the partnership. think ⁓ we were recommended to you guys by a customer of ours that used a CPA firm that knew about you. So it's kind of through a lot of warm introductions from customers that have used your product. ⁓ And so I think the way that we see it is we need to capture the full financial journey of our customer. And I think cost segregation is a core component for many of our customers.

And we need to be able to of embed this within us and also at some point also automate it. So when we get a study from you, you can just drop in the file and all of that is going to be automatically downloaded and digested into your ⁓ balance sheet in a really clean way that then flows directly into your tax documents. And so this exists on different paper forms and most people are then heading it over to their CPI

And it sometimes is a lot of work that's not, know, a lot of manual work that your CPA is doing. And sometimes all that manual work prevents folks from doing things. folks know that it's actually just, you know, finding the best, you know, partner to work with. And then, know, Baseline is there to kind of help you with the other side of things, which is now how do you bring this into your finances and actually ultimately get that tax savings in a very

automated way, ⁓ more customers will do it. And it's also around educating them in the right moments in time. So today, if you go into our page where you can add different assets, when we ask you around how you want to depreciate that asset, we actually have a pop-up that says, do you have a tax segregation study? And how do you embed this into our plan?

Yeah. So whenever I talk to kind of our product team, ⁓ I always actually tell them that a customer needs to get value within the first five minutes. It's not 30 days. If we're not able to actually show significant value to a customer that comes onto Baselane in day one, we're not doing our job right. And so ⁓ from the moment that you come into Baselane, we're going to ask you questions about kind of,

who you are as a real estate investor. And within five to 10 minutes, you will have a bank account open. You will have it structured across the way that your real estate, across the real estate that you own and the strategies that you have. Another five minutes, you will have rent collection set up.

and every transaction you can go across the street and go to the ATM or go to the Home Depot and do a transaction that will automatically attack you. So I actually think the value is much quicker. And so the idea is that you will have organized and clean books and an effective system of how to manage your properties at scale by day one.

But I think if you don't deliver that, we're not delivering what we want for our customers. Obviously, by day 30, I think a customer has, by day one, the customer's already kind of made the decision, is baseline for me or not? So you need to be able to show a lot of value very quickly.

Yeah, so go to baseline.com and it's actually baseline.com slash engineered tax services. Apologies for making that incredibly long, ⁓ but you'll have to type that out. guess you'll link it as well. you can, you can quickly click on it. ⁓ So baselines core platform is free. And so the core platform obviously is, you know, our bank accounts or bank structure, our payments, our bookkeeping, you know, a rent collection product, all of that is free. ⁓ We then have ⁓ one paid tier, which is

we call baseline smart. Baseline smart includes a lot of the automations that I spoke about. It's $25 a month. You can pay annually. It's a bit less. But it's a lot of value for, I would say, for as many properties as you have and as many entities as you have. So you may have five entities. $25 a

That's correct. And many customers will ask us, well then how do you make money? Well, usually I respond to them, banks make money because we hold deposits for you and we make overnight interest on your deposits. We obviously share back quite a lot of interest with you on your savings accounts. We have debit cards and so obviously there's a small piece of interchange that the banks keep. ⁓ We process rent collection and we charge a small convenience fee for... ⁓

for processing that rent and it's charged to your renter. But obviously across kind of a large volume, we're able to kind of make revenue to continue building this product.

In one thing, there's also no hidden fees. Bank accounts make quite a lot of money on all sorts of hidden fees. so we don't charge any monthly fees just for not holding deposits. There's no minimum balance, no kind of just holding fee for the account. We do charge if you want a checkbook, but we charge you just at cost, whatever kind of the checkbook printer is charging us so you can order a checkbook if you need it. We do charge a small amount for wires if you hold less than $50,000.

dollars in deposits and we charge you a small amount if you are wanting to send a check from our build pick platform. So if you want us to cut a check and mail it for you, which most banks provide, we charge you a small amount. But these are small charges and the goal there is actually just to kind of charge you at cost. We really make money as we grow. We build deposits, we build payment volume for our platform and have more customers on base lane.

No, thank you very much. ⁓ My only closing comment is come check us out. You will see it's really easy to get started and ⁓ we'll save you a bunch of time. And you can go hang out with your children. You'll have time to have few extra days of vacation and really use time for a lot more valuable things than managing your transactions and categorizing your payment. So come check us out and I think you'll really enjoy what you see.

Yes, exactly. That's why all of us invest in estate, to have a bit of financial freedom.

Thank you very much.