In this episode, Avi talks to Mohit Tater, one of the operators for the Empire Flippers (EF) Capital Fund. They discuss his investing background and the various sites he has acquired. They also dive into the operations of EF Capital, and how Mohit works with his team to run a bunch of sites.
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📝 Show Summary & Insights
Approach by EF Capital
Mohit has had a relationship with the team at EF Capital for some years. This led to EF Capital approaching him to see if he’d like to join them as an operator. That's no surprise, considering Mohit’s extensive experience in the website investing field.
At the time, EF Capital were looking for 5 operators for their first batch of sites. Two operators would run FBA businesses and the other 3 would handle content businesses. Mohit was among those running content businesses.
The Deals
At the start, each operator had around $1-2 million, and they set out to raise an amount equal to that.
EF Capital (EFC) would then tap into their investment network and raise money for the 5 deals based on what the 5 investors set out to achieve. EFC determined how much money they would raise based on what each investor was doing, and their goals.
Currently, Mohit's fund is complete, and he is now looking to acquire around 5 different content sites.
Operations & Profit Splits
The content operators may only acquire sites from Empire Flippers. This means they are searching for viable sites in the Empire Flippers Marketplace.
Mohit will then operate these websites and online businesses with his existing team.
The net profit is apportioned 3 ways: 60% goes to investors, 30% to the operator, and the last 10% to Empire Flippers. This distribution ratio also applies to any capital gains when a site is sold.
Empire Flippers handles all communication with the investors. The operators don’t necessarily need to contact the investors, and Mohit may not know them. This allows the operators to run their businesses and websites freely and easily without having to worry about establishing and maintaining investor relations.
Empire Flippers essentially takes care of all investor relations and management, and raises the necessary capital for the operators. The operators then handle all business operations.
Mohit put down 7% of the $1 million capital raised, which is $70,000.
Mohit’s Plan
The plan for the future is to have bigger raises, with the next step at $2 million. This will allow the operators to be involved in larger deals and to acquire more businesses.
What’s important now, however, is to initiate the whole process and get a foot in the door.
Dividends will be paid quarterly to investors, starting in Q3 or Q4 of 2021.
Mohit has a team of 18 people to help him run the different content sites. Most of the team is remote, with an office in New Delhi. There are 2 tech people, 5 site managers (with great SEO experience), 5 junior SEOs, 4 writers, 1 HR, and 1 SEO project manager. The team also has a few interns.
Mohit prefers his site managers to have prior experience handling a site. He leans towards people who run and manage their own sites. However, Mohit admits that it is difficult to find people like this.
He often looks for people with good experience, but who have hit a plateau and are looking to grow further. Mohit provides them with the avenues for learning and sharpening their skills.
In terms of acquiring sites, Mohit says that he isn’t looking for any niche in particular.
The businesses will be sold in around 2 to 3 years on the Empire Flippers marketplace, with EF taking a commission from those sales.
Resources
Website: blackbookinvestments.com
Guest Info
Mohit’s email: mohit@blackbookinvestments.com
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Cheers,
Juliet
