“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” - Franklin D. Roosevelt, U.S. president
If you are taking the time to read this, you might be catching on to a growing realization; your savings may be safer and earn more profit when invested in a private investment versus the traditional route of owning stocks and bonds. What do I mean by a "private investment"? I am talking about investing with those hard-working neighbors, local business owners, and developers in your community or across the country.
Forget Wall Street
Let's forget the guys in their sharp suits working for the big name financial firms whom funnel all of your savings to Wall Street. We have all been there, once you're invested with them, you never know what international calamity or presidential tweet is going to send your portfolio into the tank. Plus they never seem able to fully describe their fees... Why not partner with someone who is calling the shots and has direct control of an investment? Or why not invest in a project that can affect your local community, a favorite vacation or retirement destination?
Where do I sign up?
Now you might be thinking "sure this all sounds great, but why have I never seen these opportunities" or "why haven't I heard my friends or family recommend these types of investments?". After many years of discussing these opportunities with newcomers, I think the biggest hurdle is building trust with whomever you are investing with. When you go in on a private investment, you are blazing a new trail. There are not hundreds of people who have come before you earning mediocre returns. This extra risk is quickly mitigated by doing a bit of due diligence before hand and gathering information on the track record of the sponsor (leader of the project) you are investing with.
CNBC's hit show, 'American Greed', and the likes of Bernie Madoff, have sensationalized the idea that if you stray from the norm, and out of your broker's or employer's miniscule basket of offerings, you will most likely be taken by one of the millions of con-artists patiently lying in wait. I propose a different perspective. What if these con-artists were actually vastly outnumbered by experienced professionals who genuinely want to help you earn the most possible on your savings? Each week at JW Equity Partners, we meet with small business owners, operators, and real estate developers, who excel at what they do but are limited by the need for more capital.
The popularity of these types of investments has also always been constrained to a certain extent due to SEC regulations. The SEC appropriately mandates by law that the opportunities not be advertised to the general public. But that's not the only reason you haven't heard about them. Once a savvy investor has dipped their toe into these alternative investment forms and realized the returns I am alluding to, they don't call the newspaper, but they do call all of their closest family and friends.
Overall, we believe that private investment opportunities are oftentimes more secure and can average higher returns than public offerings such as stocks, mutual funds, ETFs, and bonds. This is why we want to increase awareness and help more people optimize their investments.
DISCLAIMER: The author is not a licensed securities broker or dealer and subsequently none of this information should be construed as financial advice but merely the opinions of the author. Any actions taken based on these opinions are taken solely at the risk of the investor and the author shall not be held liable for any resulting losses.