Better Returns: Invest Like a Pro

Breaking Barriers: Exploring Alternative Investments

June 07, 2023 Matt Hansen & Kunal Dewan Episode 24
Better Returns: Invest Like a Pro
Breaking Barriers: Exploring Alternative Investments
Show Notes Transcript

Join Matt Hansen and Kunal Dewan as they delve into the world of alternative investing and uncover the reasons why many people shy away from it. Using private placement memorandums and real estate syndications as prime examples, they shed light on the primary factor behind the fear associated with these investment types. They also highlight the benefits of passive investing while stressing the importance of taking small actions to unlock the potential of alternative investments.

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welcome to better returns where you will learn how to escape the volatility of the stock market by passively investing in real estate like a pro 90 of millionaires earned and maintain their wealth by investing in real estate we will share real-life examples from Savvy investors so you can do the same the show is for educational purposes only should not be considered legal tax or investment advice he still rides roller coasters with both arms in the air your host and my dad Matt Hansen welcome back to better returns how to invest like a pro this is another one of our bonus episodes kind of a fireside chat with one of my good friends Canal Dewan we're going to talk a little bit today about alternative investing and why people aren't doing it Canal why don't you kick us off today let's talk a little bit about you know why people are kind of fearful these things called private placement memorandums or real estate syndications the stuff you and I live in yes the world that we live in and a lot of people are scared to even peek inside this world and we have talked about this you know many times over coffees and to my friends into even on social media and the first question that comes up wait what is that so I mean that first question kind of answers everything that we're gonna talk about today is the lack of sufficient information you see I mean I'm I'm Indian right and there is a joke in our Indian culture that if you want to buy something buy gold first and everything else comes after this is like a historic investment guidelines in our culture just by gold just buy gold right and the reason and because of that I mean in India it said that the people the amount of gold in India at a retail level far exceeds any country in the world really so that gives you perspective that people invest in invest in in assets where there's sufficient information so gold has been uh old wise suggestions and Investments for the centuries right it's not even decades it's Century so people have enough information what it's still private if you think about it it's not an exchange per se you actually go and buy gold at a profit setting so people feel comfortable buying gold because they have seen people do that and they know what it means real estate syndication on the other hand is less than a decade load I mean this thing really came into Limelight after the tax cuts and jobs ACT people were doing it before don't get me wrong but it really became open with 506 C offerings where somebody can go and spread the word so I say the number one reason or the number one fear that people do not invest in private offerings like real estate syndications is because of lack of sufficient information what are your thoughts on that I would totally agree because again Wall Street isn't paid to promote this you don't have the big fidelities Vanguard all those big companies they don't want you to know you have Alternatives outside of the stock market and most of the people that are doing these syndications are folks like you know you and I that are like Savvy business people that figure out oh you know what we can help other people move their money from Wall Street to Main Street by passively investing an apartment build but we don't have the billion dollar budgets so just people aren't just aware this is an option in the ultra Rich have been doing this for years because they've got high paid CPAs and in um real estate lawyers and all the people like that that are telling them this is an opportunity this is what you should be putting your money in in addition to you know other assets so yeah I think this is really a good point it's just lack of awareness is why a lot of people don't do it I'd agree yeah and along those lines where the the rich and the ultra weldings they have these family offices yes who are actually doing these stuff exactly what me and you are doing at a smaller level you know and that information is so private that it never goes to a retail public and Retail public thinks that hey Wall Street is the way to go to do everything and build wealth and Legacies and Financial Freedom and all that but if nothing can be farther from the truth and that's where a lot of the fear comes from it's the fear of the unknown like you said people have known about Gold forever but that's that's still a separate purchase individual purchase you're buying gold it's just people haven't been normalized or socialized at oh I can passively invest in real estate and that's another thing that um some people the people that do know the value in real estate investing are maybe active investors they own four or five rental properties single-family home rentals now those are the people that understand the value of real estate but um the challenge is they don't want to give up control they want to be an active investor and not a passive let's talk a little bit about that about why people should be willing to passively invest what are your thoughts on that yeah yeah yeah so I want before we switch to that I want to share the thing very powerful thing you said right now the social element you know if if everybody is doing it then and human an individual feels comfortable that I'm safe right but on the other hand if nobody is doing it well the individual feels that I should the risk is not worth it right right so the second fear I would say it would be that the private offerings are not able to gain the mass of the momentum because it's private right because it's private it's two sides of the same coin because it's private it's very local within a group within the ultra well these or perhaps the super Savvy people but because it's private the other people do not even get to know about it right so the social element also plays a big role in creating that mass the momentum of spreading the water and I think that's where whereas people like me and you come in you know I mean you are over 100 million in assets under management right but yet you're not going out there and touting your horn that'll come this is the way to go but rather you just keeping it private because there's so much regulations yes right we check all the boxes when it comes to regulations right we don't talk about oh this is the return that you will get for sure or this we keep it hey let's do a due diligence these are the risks these are the rewards and once you have experienced an offering you know you become more savvy so it's that momentum that builds up from an initial Mass so going back to the question why should people start investing passively well because they need that initial Mass once they start investing passively in these private offerings they will slowly overcome the fear so uh it's a cash 22 you know you how do you overcome the fear well you overcome the fear by taking a small action and and the rest you will realize the advantage of a passive investing you know be it the control be it the money working for you and be it taking the tax advantages I mean we can go in in a million points why a family a person should move their money away from Wall Street into private offerings but I think it all starts with that little action and it really is once you discover it it's just a whole huge world I know you and I invest in lots of lots of um uh real estate deals just because we're in the loop that we find out about oh you know what there's a Land Development deal an entitlement deal in Texas well I'm in that Network so I get an opportunity that's going to make potentially 5x my money in the next four years but if unless you're in the loop in that socializing your group of friends you don't know those things I mean all sorts of Opera I think we've invested in probably 15 different type of private placements from Vineyards to mine mining royalties to startups Venture Capital stuff that unless you're in the circle you're not aware of those and it's just very disadvantaged if you're not because you don't have the opportunity to make you know two to five extra money over the course of you know the next four or five years and that's that's the thing that I you know I feel bad for people like you have no idea all these things open to you because you've never been present into it so it's it's kind of it's the old Catch 22 it's like you don't know about if you don't know about it you can't do it and that that's why we're here we're trying to share this information with people so they have other options outside of walls you know when you told me Matt many many months ago that you're thinking about starting a podcast and and spreading the word about this I mean I loved you for that man because what you just said right now 30 seconds ago about so many investment options and tell the world that Google beyond the stock exchange you can still be better off in these so many Avenues I mean that's the real I would say purpose on your podcast it's the purpose of meeting like this tell the world that there's another world world where me and you live in you know

um and that world is a whole lot better and it's it's private so connect the people learn ask questions and get rid of those fears by asking questions simply get educated the information is out there it's just uh reach out to Canal and I will help you out right in the right direction yeah and many times I've also seen Matt the action is not immediate what I mean by that is this like I got a call uh well actually I first got a message to get on a call because the individual had questions they had never heard about private offerings they have never heard about well wait I can put a hundred thousand dollars in in your deal and get cash flow and tax advantages like how does that work so that 30 minute call was just oh oh okay oh like literally that was the first call that didn't make the investment the first time but rather it kind of planted that seed so I when I say take action I'm not stalking taking action of putting money in there rather take action of connecting with somebody connecting with a professional who can answer your questions that is the action that me and you were talking about right now because you're talking about the fear and it's the knowledge that can help overcome the fear so take the action of getting more knowledge that is outstanding I can't even top that we'll call that a wrap for the day Canal thanks so much and hopefully people realize that okay there's other options out here um keep listening talking educating yourself and once you've educated yourself you're much more comfortable getting socialized in it oh you know what I can place money in a private placement memorandum with you know somebody I know like and trust that I've been following for a while and I'm comfortable that yes this person is going to take good care of my money so I think that's a wonderful message hopefully we're leaving with everyone today thanks again for your time kanal fantastic it's a pleasure man and that's a wrap thank you for listening to better returns brought to you by Hanson Holdings if you enjoyed this episode please leave a five star review because it helps others discover this valuable content if you would like to earn truly hands-off passive income go to where we help you invest in large apartment complexes to grow your families wealth see you next week with another awesome episode have a great day