Episode 346: 12-10-15
On this week’s show, Keith Lampi talks investing with Inland Private Capital Corporation, Dr. Heidi H. Allespach shares tips on how to survive the holiday stress, and Jim Angleton discusses beating cyber threats and what it takes to stay safe online.
Inland Private Capital Corporation
Keith Lampi is President & Chief Operating Officer at Inland Private Capital Corporation (IPCC). Throughout his 14 year tenure, Lampi has helped to shape IPCC into a market leader in the private real estate securities industry.
As President of IPCC, Lampi is responsible for directing the company’s strategic growth plans, while ensuring that Inland’s core principles, including its investor-focused approach, are reflected throughout the organization.
During his career, Lampi has been involved in over $4.6 billion in real estate transactions across retail, office, industrial, student housing and multifamily property types.
Holiday Stress Tips
Our special UHealth guest is Dr. Heidi H. Allespach, Ph.D., Director of Behavioral Medicine and Associate Professor. Allespach is a UHealth behavioral health specialist who works in the Miller School of Medicine’s Department of Medicine.
Allespach’s main specialty areas within behavioral medicine are chronic pain, addiction, physician wellness and teaching office-based cognitive behavioral stress management interventions.
We discuss holiday stress tips.
Beating Cyber Threats
Jim Angleton, CEO of Aegis FS, discusses the future of the cashless society and the Bitcoin concept – with some cyber security tips tossed in for good measure. We discuss the dark web, deep web, ransomware and more.
We discuss beating cyber threats and protecting yourself, your business and your loved ones.
Episode 346: 12-10-15 (To download, right-click and select “Save Link As”.)
Jim Fried: All right South Florida and the world, welcome to more Fried on Business. I’ve been given a thought to be a little calmer and a little bit more laid back but then I said: ”No way”. So let’s get rolling. We’ve got a great show for you today, we’ve got investing with Inland Real Estate Private Capital Corp. based in Chicago, huge owner, lots of properties. We’re going to talk to them about all kinds of different things they’re doing. It’s really interesting. Then around the corner, we’re going to talk with our UHealth special guest, she was here last year, she’s here again. Love having her on on holiday season, Heidi Allespach, Ph.D., she’s the Director of Behavioral Medicine. We’re going to talk about staying calm, stress-free or reducing the stress for holidays and then, one of my favorite guests, Jim Angleton, the CEO of Aegis Financial. We’re going to talk about bit coin, dark web, all kinds of scary stuff that I can’t even think about. So, AC, time to get started, you take it, I’ll take it back. We’re going to have a great time. Stick with us here on Fried on Business on 880 the biz, where money talks.[commercial break]
Jim Fried: We are back and we’re back with Keith Lampi. Keith is the President & Chief Operating Officer of Inland Private Capital Corporation. They call it IPCC. He’s going to talk to us today about private placements and 1031 exchanges. Thanks for joining us today, Keith. Can you tell me a little bit about your business and I understand that you’ve been with IPCC since 2001. Well done to you.
Keith Lampi: Thanks Jim. I’m happy to be here. Thanks for having me. IPCC, I guess it takes a step back, sort of Inland Group of company which is a very large spanning commercial real estate from that. It’s been in business for about 45 years and the Inland Group is involved a number of areas of the commercial real estate investing arena. We have a property management division, we have a group that specializes in land development, a commercial real estate lending arm, we have a brokerage group, we even have a real estate school. So we really are very broadly entrenched in the real estate arena.
Jim Fried: Yes, but you’ve missed the best part.
Keith Lampi: I was getting there, yes, the part that we’re here to talk about today, and I’m most excited about is IPCC. I mentioned I started in 2001. That was actually the same year IPCC was founded and kind of organized as its own enterprise and really we’re the division that is really set, our business objective is set for to acquiring offer properties to investors in a fractional ownership style vehicle. So we pre-purchase and in some instances package programs and allow investors direct access to invest in those programs as fractional loaners and it’s been a really exciting growth engine within the Inland Organization. Our product is specifically designed and tailored to accredited investors so high network investors and it’s been a great couple of years for us. We’re excited to be here and talk more about it.
Jim Fried: That’s super. But I was alluding to the fact of who your founders were. I think it’s just a great story. Maybe we can get in the cold to bring them one time and talk about how you guys got started by – I just got to say it – handful of school teachers. I think that’s the great story.
Keith Lampi: It is a great story. It’s kind of one of the great American success stories. Four school teachers really founded a company in a very grass roots fashion, they began investing in real estate and raise capitals from friends and family and in some instances, other school teachers and the principals at certain point and it really just snowballed and their success grew into the large spanning enterprise that the Inland Group is today. And you fast forward 45 years, these four owners have been involved in over 40 billion in acquisitions, raised over $20 billion in capital from outside investors, we have a nationwide footprint, we manage properties across 48 states. So it really has grown into one of the major real estate enterprises throughout the country.
Jim Fried: That’s what I wanted to hear. To me that’s a great story too and it really provides the underpinning and the real snapshot of your corporate culture and why you look out for your investors because golly gee, you guys were those guys just a few years ago.
Keith Lampi: It really does. It transcends throughout every organization and it really molds the way we evaluate opportunities for our investor base and putting our own skin in the game and track record on the line each time, we put together a real estate program so the culture really does resonate throughout the entire organization.
Jim Fried: That’s a powerful message. So let’s talk to some accredited investors. IPCC, you guys offer 1031s and private placements. Can you explain the difference between those two types of products?
Keith Lampi: Sure can. 1031 exchanges, any time we offer a 1031 exchange it is structured as a private placement. So in certain instances they’re one and the same. Ultimately, we’re structuring private offerings for accredited investors. Many of them are designed to qualify as replacement property for investors that are looking to complete a section 1031 exchange. So they’re structured in the fashion where if you’re a property owner you sell your real estate holding, you’re looking at the capital gains, tax that you may face when you sell appreciated real estate and you’re looking for a place to reinvest those proceeds to ultimately defer that capital gains tax through section 1031 of the tax code. Our structure qualifies as an alternative to a reinvestment opportunity. However, that’s not where the story ends. So many of our private placements, whether they’re structured as 1031 vehicles or they’re not, some things that accredited investors also consider as a cash alternative. It’s a defined property or pool of properties, many high network accredited investors really kind of enjoy the idea regarding doing due diligence and kicking the tires that relates to any particular real estate offering. And what we’re ultimately doing is we’re buying properties at the same scale that a lot of the large [inaudible 00:11:20.24] and many other institutional platforms are purchasing them. We’re structuring it in this fractional ownership vehicle and that gives your accredited investor the opportunity to invest in $100,000, $200,000, $300,000 increments and still buy the same institutional quality real estate that many of the large scale buyers are looking at.
Jim Fried: So you’re letting main street operate like Wall Street with your Wall Street type infrastructure. I think that’s great. Many of the people out there that are either accredited investor, they have a variety of different needs and desires, it’s up to their advisor that kind of help them with all that. But is your focus on growth or income or even how about capital preservation? Where does all that fit in?
Keith Lampi: All of the above, our investment thesis is I would say more primarily focused on providing consistency in income and capital preservation. Growth and capital appreciation are certainly components to our investment thesis, all these, they’re important but secondary objectives. So, when they really boil it down and every deal a little bit different but most of what IPCC is out there in the market kind of targeting are stabilized assets where we’re buying in primary and secondary markets. We’re buying assets that have relatively high occupancies. If it’s commercial asset with the commercial tenant, we’re looking and underwriting strong credit profiles, long term leases, so you really have that infrastructure that allows you to project and predict a long term stable income stream and that really kind of resonates with our investor base. But we have to do a good job of striking the balance between consistency and income and also capital preservation fundamental. So, we’re looking for growth in addition to the income that our properties generate.
Jim Fried: Either somebody’s identified that they want to invest in a fractional real estate product or they’ve done a 1031 and they want to get involved with some of your 1031 products. How does somebody find out how they can invest in one of your products? What’s the channel for an accredited investor to get additional information if they’re interested?
Keith Lampi: We follow a whole sale distribution approach. So we do not sell our interest direct to the end user, direct to the investor, we package all of our private placements as securities offering so they are regulated by FINRA and the government bodies that regulate securities offerings. So, all of our offerings are distributed through a broker dealer network which has financial planners, financial professionals that have the appropriate security’s licensing to advise clients on which offerings are more appropriate for them. They’re doing suitability tests, they’re looking at concentration in real estate versus other asset classes and really that’s the distribution channel that we sell our products through. So the main take away bottom line here is we do not sell our products directly.
Jim Fried: If somebody wants to find out more about you, I guess they have to – I’m going to use the fancy term for a minute – they have to talk to their RA, I guess that’s registered advisor, right?
Keith Lampi: Registered investment advisor, their financial planner whose licensed with a broker dealer, any firm that has signed an agreement to distribute our products can tell them more and they can learn more about Inland Group.
Jim Fried: Let’s give them a reason to ask some more questions. Why don’t you tell me a little bit about IPCC’s growth since you joined the organization and why don’t you tell me a little bit about why this type of investment is improving? I think I know but you’re the expert.
Keith Lampi: Sure. It’s been interesting. I mentioned we started this company in 2001 and it really was a very steady organic growth story from 2001, 2009. We obviously know what happened later in 09, we hit a pretty major macro-economic pick-up in bumping the road, we saw very deep rooted recession and what came to be post-recession was very interesting and actually very rewarding for us at the Inland Private Capital side of the business. What we saw is our track record of performance really held up throughout that economic downturn, many of our competitors kind of went by the way side and we were left with an industry that was rebuilding, was growing and we were leading the charges that relates to market share and track record of performance. So the past several years, in fact the past two have really been major growth years for us. I think a lot of that has a lot to do with our nimble approach to asset selection and identifying opportunities. It goes back to the product we offer. We offer a defined asset of defined pool of real estate investments and that infrastructure allows us to be very nimble and read the market, assess where we see opportunity and pulse on it and bring that to the market place or to the end user, the investor at the end of the day. And that allows us to evolve our portfolio structure, bring a variety of different asset classes to the market place, modify our approaches that relate to financing and our cost structure and the market place has really rewarded us for that growth. So it’s kind of where things stand today and we’ve reemerged as an enterprise post-recession, bigger and better than we were going in.
Jim Fried: I look at the assets that you’re buying because I’m lucky enough to be on your distribution list and I see assets that are relatively defensive with a little bit of protection against increasing interest rates and things like student housing, regular, apartment projects, anchored retail in good locations with limited exposure to – I’ll call it – the internet. So it seems to me like you’re really calibrating your portfolio to play good, solid, offensive defense, is that the term?
Keith Lampi: That’s a good way of putting it. Our approach has been really to provide a menu of options to the market place so we don’t want to be a one, two, three trick pony, we’ve really made it a corporate objective to provide a variety of asset types, a variety of leverage points. Because one asset might be perfectly suited for one investor and might be completely wrong for another and by having a wide variety of offerings that allows investors to place their chips, place their bets and asset allocate accordingly throughout our menu of options and again, it served as well. Today, we manage a very diverse nationwide footprint across 44 states. We manage over 400 assets on behalf of private capital investors.
Jim Fried: You’re getting out ahead of me because I wanted to tease the next segment because we’re going to have to take a break in a minute. So how big is your reach as far as total dollar value? You talked about 400 assets, we’ve only got about a minute. Tell me a little bit about how big you are right now. Then we’re going to talk about the other side of the break the type of assets you’ve got and maybe give people a couple of examples. So, Keith, how much invested do you have right now in cash wise?
Keith Lampi: We’re raised about $2.4 billion in equity from investors. Many of our programs on average are about 50% leverage so our portfolio size, in fact we just hit a major milestone, we’ve offered over $5 billion in assets to investors over the past 12 or so years.
Jim Fried: High five.
Keith Lampi: It was a great milestone for us that we’re very excited about.
Jim Fried: Listen, I think that’s a great place to take a pause. The folks in the control room, AC, he knows how to handle this. So we’re going to take a breath. I’ve given them a cue, AC is going to pick it up, he’s going to take it, he’s going to play us some music and then we’ll be right back after this short break with more on Inland and their products. Back after this.[commercial break]
Jim Fried: We are back with Keith Lampi. He is the president and chief executive, I’m sorry, Chief Operating Officer – I always give people a promotion on the show – of Inland Private Capital Corporation, they do private placements, 1031s, they work with accredited investors. So Keith, we talked a little bit about your history, we talked a little bit about your size, let’s talk a little bit about Miami. Have you guys invested anything in Miami yet?
Keith Lampi: We have actually. We did a deal in Miami dating back to 2010. It’s was kind of a hybrid office/data center leased to Diebold which is the large ATM machine company.
Jim Fried: So can you talk a little bit more about that? Because it sounds to me like that again provided you with a little bit of security and a little bit of upside.
Keith Lampi: It did. It kind of fits the mold from a net lease investing perspective, it was newly constructed facility at the time, so now it’s about five years old. We had a long term lease that the financials of Diebold were obviously something that we viewed as compelling, well located piece of property, about 19 000 square foot facility. And we actually structured that offering without any leverage so we purchased it, we owned it out right and investors are enjoying a very nice rate of return purely tied to the rents that Diebold is paying under their lease.
Jim Fried: So how good deal was that? $20 million? $15 million?
Keith Lampi: It was actually a little bit smaller, it was about, just the hair over $8 million.
Jim Fried: So it really is a good size investor deal. But it’s still a deal with that kind of credit that most individual investors probably even wouldn’t have gotten with that. You guys are our there, you’re known to close, you got that certainty of execution air about you. It’s sounds to me like you’re a broker’s favorite client. Let me ask you this, we’re towards the year end, the beginning of 2016, what real estate sector is IPCC looking at for 2016?
Keith Lampi: I’d say near term we’re going to be very focused on assets with operating characteristics. We’ve been a big buyer of multi-family here over the past couple of few years. That’s really fits the mold for us, any asset where we can create net operating income and a wide growth, rent growth but also managing our expenses. That’s what excites me, that’s what I think a company like Inland can really deliver value to investors through the nuts and bolts of operating real estate. Something we’ve been doing since the beginning of times, since the beginning of our inception and that really is what I think it does a competitive edge throughout the market place. Multi-family is kind of a key sector for us, we’ve looked at several others that fit the mold, have similar operating characteristics, specialty sectors like self-storage, student housing, even assets within the health care arena, medical office buildings, so we have been fairly diverse in our approach to asset selection. And we’re not abandoning the long term net lease, net lease retail, sector that we’ve done a lot of in the past, that is a portion that’s going to continue to be a component of the menu of options we deliver to investors. But assets with operating characteristics I think if there’s a one line answer that’s what I’d give you.
Jim Fried: What’s really interesting to me is that you’re mentioning all of these asset classes that all of the smart money managers I know are trying to accumulate for their own private family portfolios. So it sounds to me like you’re allowing – I’ll say it again – main street to have the same access that Wall Street usually gets. Seems really really cool.
Keith Lampi: It is, it’s exciting to us to be able to provide that opportunity to investors that would otherwise not see these types of investment opportunities and again, the diverse approach I think has really served us well. We’re not just focused on deal flow and acquisition volume but the track record of performance is something we hold in very high regard to the extent we can buy numerous sectors that allows us to really cast a wide net, read the market and identify opportunities as we see them. We’re never in a position where we have to buy anything, we’re kind of canvasing the market place and looking for values that make sense to us.
Jim Fried: All right, Keith, I think we’ve only got a limited amount of time left. We’ve got a little bit more time, it’s great. I love it how AC is really communicating to me. So let’s talk a little bit about what markets you’re looking at right now. What markets are really of interest to you, Keith?
Keith Lampi: We’re painting it with kind of broader strokes that growing market that has strong population growth, income growth across the spectrum, all sectors that really this kind of translates for us, we’ve had a fairly heavy concentration in Denver over the past couple of years that’s been a good market for us. The Tampa market is another area we really establish kind of a foot hole with our multi-family portfolio, there’ve been a variety of markets throughout Texas, most of the major markets in Texas, Austin, San Antonio are too that we’ve been doing a lot in. But really market-wise, we’re relatively agnostics to individual markets. We’re looking at what research reports are suggesting as the catalyst that’s going to drive rent growth and income growth and population growth and that’s really what we used to guide our asset selection process.
Jim Fried: I know a lot of the investors I work with, they talk about the smile of the United States from the upper north-east to the upper Pacific north-west and through the south. You guys are located in the Mid-West. What are your thoughts about the Mid-West?
Keith Lampi: Mid-West is a several markets that we’ve been active in, we’ve done a lot in Minneapolis, Chicago, depending on the county that you’re investing in can sometimes provide healthy opportunities so we’re not opposed to the Mid-West, we’ve dabbled here in our homeland and a lot of that is sector driven. Where we may see opportunity in the multi-family sector we maybe see less in the storage sector, it really does depend on the deal and the asset type at the end of the day.
Jim Fried: If people want to get more information about this stuff I guess that they’ve got to go to their registered agent, right?
Keith Lampi: Correct. Just to reiterate. These are security’s vehicles, they’re sold through the broker dealer network, through license professionals that typically have a security’s license and are in the position to advise clients on variety on aspects of investing from concentration to suitability all the was down the spectrum. So best way to get more information is to touch base with your financial planner, your financial professional that advises you on these types of investment ideas.
Jim Fried: We’re running out of time and I want to thank you so much for your time. I want to thank also Nicole for arranging this and of course Rich Jurick for putting this together too. I hope you’ll come back and give us more information on the next show.
Keith Lampi: I’d love to. I hope you’ll have me one day.
Jim Fried: We’ll invite you back, I promise as long as you say high five to my good buddy Mike Shear up there.
Keith Lampi: I’ll do it.
Jim Fried: All right. AC, this is yours, we’ll be back after this with more Fried on Business.[commercial break]
Jim Fried: I feel nice like sugar and spice, that’s our cue to go back to our doctor, Dr. Heidi Allespach, Ph.D., she’s an Associate Professor of Clinical and Family Medicine Community Health and Medicine at the University of Miami, Miller School of Medicine. She teaches doctors how to calm you down when you go to their office, she’s going to try to help me stay calm this holiday season because I got to tell you, Doc, people say I might need that. Welcome to the show.
Heidi Allespach: I don’t know what gives them that idea, Jim. You’re so mellow and relaxed.
Jim Fried: I’m very laid back all the time. Tell us a little bit about your background, how you treat doctors at Jackson and stuff like that because I think it’s important that people see – I talk about collaborative medicine – that’s you?
Heidi Allespach: Yes. I work with the most amazing team in the world. Our physicians here at the University of Miami are amazing at UHealth. So what I do is basically my role, I’m a UHealth doc, but I work in affiliation with Jackson. I train the residents and fellows communication skills and professionalism and really teach them about taking care about themselves, physician wellness, I do that with the Office of Graduate Medical Education here. We run groups for the interns from all the different specialties to help them prevent burn out so that they can then go on to provide the best care possible to our patients and also see patients with the family medicine and internal medicine residence and will start doing that with the surgery residence too, and doing co-counseling business where I teach the patient stress management and the residents learn specific techniques then that they can then teach to more patients and so on and so on. So it’s a really neat thing, they’re using it for themselves as well, for their own stress.
Jim Fried: Do you need like a subject?
Heidi Allespach: Sure, come on over.
Jim Fried: We’ll talk about that afterwards. I’m sure a great example but not really the common usual regression to the mean. You’re teaching the doctors how to de-stress, you’re teaching some of the patients how to de-stress, we all read in popular culture and popular stuff that stress is like the big cause of disease. So help me understand how some of the things you’re doing are leading to some positive outcomes. What’s a good example?
Heidi Allespach: On emotional level our patients and the residents too report, well patients report feeling less depressed, less anxious, more confident, happier in general because they’re getting the care, they’re getting a lot of good care from their physicians which they always do. It’s very meaningful to them when their physician teaches them these strategies and takes time to do that. On a physical level we see decreases in blood pressure, we see decreases in pain and also patients are more likely to take their medications as prescribed because they’re happier, they feel better. So they want to take better care of themselves. So those are just some of the things that we see, we’re seeing a lot of good stuff.
Jim Fried: I want to give you something here. You’re going to write it down, it’s on tape so it’ll be the first time anybody has probably ever heard of this. But this is something that certainly is here in Miami-Dade County and probably more across American other big cities. I have what I call pre-traumatic stress syndrome. I just look at the high way and freak out, gets me all tense and I know you guys all your offices look at malfunction junction over there. I know it’s great thing for the transplant institute too but right now let’s talk about stress. Somebody is at their desk. They just looked at the way’s map, they see that they’re going to have to climb in and battle their way for an hour and a half to get home and feed the kids. How does somebody stay calm and be a better member of society?
Heidi Allespach: I think we touched on this during our last talk but-
Jim Fried: We did, I’m still troubled, come on.
Heidi Allespach: Basically, practicing acceptance. We can either fight the situation. So the situation is the way it is, there’s traffic. And unfortunately, I’m a Miami native, I grew up here-
Jim Fried: Where did you go to high school?
Heidi Allespach: Coral Gables.
Jim Fried: North Miami Beach, let’s continue.
Heidi Allespach: That’s awesome.
Jim Fried: Yes, but we’ll talk about this when you try to calm me down.
Heidi Allespach: We will. So I’ve seen traffic get progressively worse and this year I think it’s worst than it’s ever been. And you try to lead a little earlier but there’s still going to be traffic. So having that expectation, there’s going to be traffic and I can’t do anything about it. Because we can’t. So just practicing acceptance and saying ”You know what? I’m going to just do the best I can, I’m not going to give the traffic the power to control me and ruin my day and cause my blood pressure to sky rocket through the roof and I’m just not going to let that happen today. I’m going to start over today right now to deal with the situation differently”. And take some deep breath and listen to some great tunes or book on tape and just say ”You know what? I’m doing the best I can and I’ll get there when I get there”. And that’s basically the only way we can do it and still remain sane.
Jim Fried: High five to you. I actually found the spot channel. I used to listen to Watercolors but that’s too much. I need the spot channel, kind of glide between the things. ”That maniac, he’s got a problem, I don’t want anything to do with him”. So now let me ask another question. We only got a couple of minutes left. Somebody is shopping, they’ve gotten over their pre-traumatic stress syndrome, they went over to the ”Aventorture” Mall, somehow they found the parking, Aventorture. They found themselves a parking space on the top in the back over there. Hopefully they don’t get dinged or banged up or injured. So now they’re going to walk in, they’re walking around, what do they do? They’re freaking out, the whole place is geared towards getting them gassed up. What do you do?
Heidi Allespach: Shop online.
Jim Fried: I love this lady.
Heidi Allespach: I’ll say something really quickly since I don’t have a lot of time left, but I’d love to talk about holiday stress because that’s something I know well and have worked through myself. We need to wake up and keep it simple and we go on this automatic pilot during the holidays and we just do all these things and continue to do same old things, expecting different results, going to the mall and then feeling miserable and eating too much and drinking too much. So we really just have to wake up and say ”You know what? I need to reevaluate all traditions and if those aren’t working for me anymore, whether they’re familial traditions, whether they’re what we do during the holidays, our routines”; We need to say ”What are my goals for this holiday season? To be happy, peace and good will, to experience that, have my family be happy” and then say ”Are the behaviors that I’m doing right now, are those leading me towards my goals or they’re moving me away?” And it is a latter, we really need to reevaluate these all traditions and come up with some new ones where we’re consciously choosing not to spend this much, not to drink this much, not to eat this much. To shop online, to some there are stores that at the mall, but to do it online instead to avoid the traffic so we can spend more time with the people we love. I hear a lot of patients and a lot of my co-workers and friends, they say ”I need to get presents for my adult children” and I say ”Maybe this year they’re getting all stressed out about that” and I say ”Maybe this year for your adult children and for the adults on your list maybe you guys can do something different and re-create a new tradition so perhaps contribute to each other’s favorite charity or as a family I’ll go to a homeless shelter or to the humane society and pet some animals or do something where you’re giving and not receiving and teach that to your adult children instead of getting a gift with gold bow on top”. Things like that.
Jim Fried: Dr. Heidi Allespach, do I say that right ever?
Heidi Allespach: You are.
Jim Fried: Okay, great. My favorite Coral Gables high cavalier, I want to thank you so much for being on the show. We got to go out, we got to meet. You are just the positive energy, the queen of white light, that’s who she is.
Heidi Allespach: Thank you. You’re going to be one of our subjects, you already volunteered so you can come over to treat your pre-traumatic stress.
Jim Fried: You like that? Wasn’t that a good one?
Heidi Allespach: That’s very good.
Jim Fried: Great. We’re going to talk more about that with Dr. Allespach. She’s going to get a grant to study me and my pre-traumatic stress syndrome. Who’ll report back next year? You’re the best, Doc. Thanks so much for joining us and being such a great sport today.
Heidi Allespach: Thank you, happy holidays, Jim.
Jim Fried: Happy holidays, Doc. We’ll be back after this with Jim Angleton talking about the dark web and the evil stuff on the internet. Back after this.[commercial break]
Jim Fried: We’ve got one of my favorite regulars back, Jim Angleton. He’s CEO of Aegis FS. We’re going to talk about the future of the cashless society, Bitcoin, dark web, ransomware, every other thing you can think of that scar the you know what out of me. Jim, welcome back.
Jim Angleton: How are you doing Jim? And to your 12 million viewers, welcome everybody and I was listening to you tonight discuss about Lauren’s Kids and I want you to know something right now. You know that popular game that everybody is going to go and buy for their kids that’s called ”VTEC”? Guess what? It’s gotten hacked.
Jim Fried: What does that mean, it’s got hacked?
Jim Angleton: It got hacked just along with XBox too. And recently what we’ve seen in the Aegis cyber social media reconnaissance department is that the nefarious folks in the deep and the dark web that lurk out there, the child pornographers, the pedophiles have all been out there busy and what they’re doing is they’re targeting now the little kids’ toys that are all electronic technology driven toys. And when the parents go online to register and then to sync it with the company, what happens? The bad guy is now looking into that account. First of all, they get mom and dad’s credit cards and then they get little junior’s name and you know his nickname, what they want to call him. Then what they do is they sell that information in pools of 100, 200 names, telephone numbers, email addresses, credit cards-
Jim Fried: Have you told this to Ron?
Jim Angleton: ..deep and dark web for between $100 and $1,000. Then 20 minutes later, somebody buys that pod of stolen information and then it just gets out there and proliferate and before you know it, your son’s Social Security number or your daughter’s Social Security number is well known. And then what they do, they go to the Internal Revenue Service and they file a fake online tax refund or they file a tax return to get a refund or they use mom and dad’s information and then they clone it out there. So you know something parents, everybody that’s in a drive time and everyone that’s in the internet listening to the great Jim Fried Business hour, two hours on 880. Folks, be careful. When you buy that technology equipment make sure, make darn sure you’re careful when you think it, be sure that you use a, and go to your bank and get what’s called a single use online account so you don’t have to really use your actual credit card.
Jim Fried: Single use debit cards?
Jim Angleton: Every bank will give you for free a single use online credit card number and what that really means is, let’s say you have a MasterCard or Visa credit card with your bank. And it has the normal number on it. Your bank will give you what’s called a single use online account number. Every time you go online to Amazon, eBay or go register with Apple or anybody else, you use that one number, but it’s an algorithm. And each time you go to buy something Jim, or to your listeners, or you go to register, that number is actually changed into a different algorithm number each time you go out there and your established original credit card number is never released. So the bad guy does not know your real account number. And the cool thing is that if you go to return something, what happens is you use that same single use online account number and it’ll actually credit your actual either debit card or credit card. How’s that for a starter, Jim?
Jim Fried: Jim, we’ve only got a couple of minutes left. I only have two minutes left. So I’m going to have to cut you off and ask you if you’ll come back after New Year’s to scare the crap out of us again.
Jim Angleton: Why not? You know that’s what we do. So little quick plug, Aegis has this great cyber social media reconnaissance group and what we do is we watch your company out there and make sure that no one is dissing your company or stealing your information or cloning it and hurting your company. So whenever you want, give us a call 305-710-2000 and Jim, thanks for having me on. Love you man and I got to say something – congratulations 12 million viewers. Fabulous.
Jim Fried: Thank you so much, Jim Angleton, cyber snoop, protector of the weak and weary. Thank you so much for being on the show, Jim.
Jim Angleton: Take care, everybody and Merry Christmas and Happy Hanukkah everyone. All the best.
Jim Fried: Peace, Jim. I want to thank our guest Jim Angleton, they guys from Inland and of course Dr. Heidi Allespach, my favorite cavalier from the University of Miami health system talking to us about staying mellow, KIND Snacks, South Florida Business and Wealth Magazine, CCIM, UHealth, Warren Henry Automotive, The NFL Alumni, The Miami Marlins, EarlyShares, Xpresso Marketing, Social Media 305, Lauren’s Kids, Magnum Energy Solutions, The Bergstrom Center for Real Estate Studies and Engineered Tax Services. Thank you all. Go to our Facebook page, like our show, tell your friends, join our community, give us feedback and comments, tell us who you want to hear from. Tag me on Twitter @JimFried, the show is Fried on Business, Facebook, LinkedIn, Youtube, websites get lots of hits all the time. If you missed the show, it’ll be on our website www.friedonbusiness.com real soon. This is Jim Fried for Fried on Business. Look for us next week on 880 AM next Thursday at 6:00. Why? Because I love doing this. Why? Because I’m going to have the head of Related Group, Carlos Rosso. We’re going to talk about making urban places, we’re also going to have, who else? Larry Zinn, we’re going to talk with is Lamborghini guy and one other really great guest. So go to our Facebook page, I did all that, I did the part about liking me. So remember, this is not a rehearsal, this is your life. The person that wants to do something finds a way, the other finds an excuse. Now go out there and make it happen. Thank you 10 million fans, thank you so much, love you all, protect yourselves. See you soon. Happy holidays.