This week I’m going to let you in on a little secret… how YOU can invest the same way the super rich do. 👉👉Learn About Our New Waymaker Fund - https://www.vonfinch.com/waymaker How do the highest income earners and ultra rich invest their wealth into real estate? In this episode I go into this specific strategy and demonstrate how it provides bigger returns, reduces risk and produces much higher consistency of income and outcome in their investing business. I dive into this, and much more, to show you how YOU can apply this exact same strategy to your business and start seeing those amazing outcomes in your portfolio as well. Hit subscribe to join the Investor Mindset community and grow your investing knowledge today. Let’s get connected!
This week I’m going to let you in on a little secret… how YOU can invest the same way the super rich do. 👉👉Learn About Our New Waymaker Fund - https://www.vonfinch.com/waymaker
How do the highest income earners and ultra rich invest their wealth into real estate? In this episode I go into this specific strategy and demonstrate how it provides bigger returns, reduces risk and produces much higher consistency of income and outcome in their investing business.
I dive into this, and much more, to show you how YOU can apply this exact same strategy to your business and start seeing those amazing outcomes in your portfolio as well.
Hit subscribe to join the Investor Mindset community and grow your investing knowledge today.
Let’s get connected!
KEY TAKEAWAYS
1. It’s all about getting connected. Get connected to the top tier operators and people with a track record.
2. Wealthy investors are looking for top tier operators because they’re looking to reduce risk.
3. There’s nothing worse than working with an operator that is learning on your dime.
4. Another great point about working with top tier operators is that they’re usually very conservitive with their underwriting and trying to overdeliver for their investors.
5. One of the most important advantages of investing in a fund is that diversification is key. You’re going to be able to invest in multiple properties across multiple markets which is going to lead to a more consistent and predictable outcome.
6. Another important factor of investing in funds is that you’re able to leverage the power of the group. Which means buying a larger property and reducing risk.
7. One of the best reasons out of all of the above is that you’re able to leverage the operators credit.
8. Getting connected with these top tier operators can be very tricky if you’re not in the right circles. However, there are firms like us, Von Finch, who have built these connections already and can provide our clients with access.
BOOKS
The Passive Investing Playbook - https://theinvestormindset.com/passive
LINKS
Learn more about investing with Steven at https://theinvestormindset.com/invest
Join the MultiFamilyMBA and get exclusive free training: https://theinvestormindset.com/mfmba
Learn About Our New Waymaker Fund at https://www.vonfinch.com/waymaker
Steven: [00:00:00] How do the highest income earners and ultra-rich invest their wealth in real estate? Well by following this specific strategy, they're able to see much bigger returns, reduce the risk and end up having a much higher consistency of income and outcome in their investing business. And so we're going to get into that and more, so that you can understand how you can apply this exact strategy, model it for yourself and start seeing some of the same type of outcomes in your portfolio, you're not going to want to miss it.
INTRO: This is the Investor Mindset Podcasts and I'm Steven Pesavento. For as long as I can remember, I've been obsessed with understanding how we can think better, how we can be better, and how we can do better. And each episode we explore lessons on motivation and mindset from the most successful real estate investors and entrepreneurs in the nation.
Steven: [00:00:58] If you're someone who's interested in investing in institutional quality multifamily opportunities, then I highly encourage you to listen up, we're very excited to announce that we've partnered with one of the top tier institutional operators in the country who has over a million units under management, over $1 billion of assets under management. And this team is coming together with a specific purpose to buy units across nine different cities within the Sunbelt region from Charlotte to Denver, and from Dallas to Nashville, and multiple cities in between, they have a proprietary business plan to be able to go purchase these high quality B class assets, reposition them, and roll them up over the hold period to actually turning this into the first faith driven [00:01:47 Unintelligible] in history, which means that actually going to exit this by selling this as a rit. And it's an incredible opportunity to not only make phenomenal income, but to be able to make an impact by driving real change within communities, by being able to help build stronger apartment communities. One of the biggest problems that we're seeing in our country today is an epidemic of loneliness, over 75% of men and women are feeling lonely, often or always in their life right now. And over 54% of people in apartment complexes don't have any friends that are within their complex, but the group that is a part of this organization is a specialist in building real quality communities and ends up having those numbers go from 54% not having any friends within the community to 75% of people having friends within the community and ends up leading to significantly better business outcomes, as well as better communities and better lives for the residents. So if this sounds like something that you're interested in investing in, and you're an accredited investor, I encourage you to learn more by going over to vaughnfinch.com/waymaker. And you can find out a lot more, and you can have an opportunity to request access to this opportunity. And I look forward to being able to serve you and continue to serve all the people we're going to make an impact on through this investment.
Steven: [00:03:12] Welcome back to the Investor Mindset Podcast. I'm your host, Steven Pesavento. And each week, we share mindset tips and investing strategies to help you take your business and life to the next level. And today we're going to be diving into a topic that is super important. And it's this whole idea of understanding how you can invest the same way that some of the highest income earners invest their money, and the core to this strategy is really getting connected, it's getting connected to the top tier operators in the business, the people who have a track record of experience, and understanding who has access and how they can get involved in investing in those deals. And oftentimes it comes down to one of two directions either this high net worth individual who has a family office, essentially a business setup to manage their wealth, or they work with fund managers or others who have these existing relationships and they have an opportunity to invest directly into those funds and directly with those operators. And the reason that they're looking for these top tier operators, the reason that they're looking to take advantage of the network that these fund managers have is specifically because what they're looking to do is reduced risk, and they're looking for diversification. And one of the reasons they're looking for that is they want to be investing with operators that have 1000s of units of experience under their belt. Oftentimes, some of the operators they're investing with have millions of units of experience, they're looking for operators that have put hundreds of millions of dollars to work and seen results. And sometimes are even talking about billions of dollars and the reason that it's so important to invest with excellent experienced operators to invest with people who have already been there and already done it is that they've learned from their past experiences and they can apply those lessons learned onto the current investments. There's nothing worse when you're an investor than investing with an operator that is learning on your dime. And so they are oftentimes these ultra-high income earners are oftentimes looking for investors who have existing track record, who have existing track record in those markets in particular, and that they've got the right people in place to be able to make sure that they can execute that business plan on time, on budget and be able to deliver the kind of returns they are looking for.
Steven: [00:05:42] The other big benefit of working with these institutional style operators is that oftentimes, they're ultra-conservative in their underwriting, meaning they're always trying to undershoot their expectations and over deliver for their investors, because for them, they understand that reputation is key. That's the reason they were able to get to have the kind of experience that they have, and what they're often doing is they're underwriting in a way that is reducing what that return looks like on paper so that in the long run, they're able to over deliver, and ultra-high income earners absolutely love that. So one of the first advantages, one of the most important advantages of investing in funds, whether that's an individual property fund, a fund that's investing with one property, or whether it's a diversified fund that's going to invest in multiple properties, is that diversification is key, that you're able to invest your funds across multiple different properties in different markets, and potentially even with different operators. So what this can lead to, and it often does, is a more predictable outcome, a more consistent outcome, and therefore, exactly what you're looking for in your investment portfolio, you're looking for more consistency, and to be able to predict what is going to end up coming out the other end. And so by being able to diversify, you're able to spread out that risk across multiple different investments and not only that, you're investing with operators that have significant experience and track record to be able to back that up. The second thing that is really important, and a really big advantage of investing in these kind of funds and falling in the same footsteps of these high income earners is being able to leverage the power of the group, being able to leverage that investment to be able to purchase a much larger property, and the benefit of purchasing a much larger property is that you're actually building diversification of income into each investment property that is purchased. So you can see a difference between five units, or five leases versus say 100 leases versus say 3000 leases, there's actually significantly less risk having 3000 leases, because if one person doesn't pay on five leases, it's going to have a much more significant impact, then say one person or even 10/20 people not paying with 3000 leases, you end up diversifying that income stream across all of those different units, and therefore ends up again, leading to more consistency, more predictability of outcome. And then finally, the third and I think one of the coolest, if not one of the strongest benefits is that you get to leverage that experience, we talked about. And some of that experience comes with leveraging those operators’ credit. So when an operator has millions of units of experience, they're able to much more effectively solve problems, they oftentimes have much more relationships in the industry and are able to leverage those relationships to be able to buy bigger and better properties at a better price. And finally, the other big benefit is leveraging the credit access that they have. So not only because they've got all that experience, they have this network, they're oftentimes able to borrow at a lower interest rate, which gets passed on, the benefits of that gets passed on to the investor. But all of that credit risk is being tied directly to that owner, that operator, not the investor, meaning the investors liability is limited specifically to the amount that they invested, and as a result of that, that ends up again, reducing risk, and really sets up the investor for a much better outcome in the end.
Steven: [00:09:30] Fortunately, there are firms like ours, like Vaughn Finch and others who have built a network of top tier operators from around the country, and they've negotiated special terms to be able to bring these kinds of opportunities to their investors. So not only do we have the ability to give access to our private investor network, but we have the ability to bring access and be able to lower those investment minimums so that people have opportunity to get involved and still stay diversified, still be able to invest in multiple different funds and multiple different properties. And so if this sounds like something that would be interest to you, if this sounds like something you'd like to learn a little bit more about, then I highly encourage you to reach out, you can shoot me a message directly on almost any platform, or you can head over to vaughnfinch.com, and you can scroll to the bottom and you can register to invest. By registering to invest, you're going to have an opportunity to learn a little bit more about the kind of opportunities that we bring. So if you're an accredited investor, and you feel like investing in these kinds of institutional quality deals could make a difference for you and your portfolio, then I highly encourage you to reach out and I look forward to speaking with you. So let me know down in the comments below, or on social media, what has been your experience investing in institutional quality funds? What have you learned? What have you loved? What have you taken away? We'd love to hear from you down below, and I just want to say thank you guys for joining us on another great episode. It's so important for you to keep learning and keep taking action. So if this spoke to you in any way, I encourage you to make sure you reach out and find out how you can learn more about investing in deals just like this. And I'm grateful to be able to serve and we'll see you guys in the next episode.
OUTRO: Thank you for listening to The Investor Mindset Podcast. If you like what you heard, make sure to rate, review, subscribe and share with a friend. Head over to theinvestormindset.com to join the insider club, where we share tools and strategies from the top investors and entrepreneurs and how to take it to the next level.