I’m still plowing away at the CFA, derivatives, alternative assets, technical analysis and so on.
My day job is a whole lot to handle…plus a new member of the family, but I’m making it happen.
I’ve been trading emails with a lawyer that specializes in real estate investments.
Basically my view is this:
With capital markets, I need a track record, employment experience, and big time networking to get anywhere. I have a day job and I don’t know what I don’t know there. I want to get into a place I can learn and learn and learn and then hang my own shingle.
Real estate is a different story. I’m doing well there. I’ve made connections in specific markets with the right people. And it’s very scaleable. I am so confident in the strategy that I am trying to set up a guaranteed pay out structure.
Basically you invest (loan) capital to the real estate arm of my fund and you get a guaranteed annual payout on principal. Easy. No complex lawyer speak or terms.
You’re getting nothing in yield from the treasury, CDs, or your savings account. I can beat that with a guarantee. The upside is the fund keeps everything over and above the guaranteed payout. In a lot of ways it’s like a private loan and less like an investment pool.
However anytime you pool money then you stand the risk of running afoul of a regulator.
So I’m working out the legal black holes.
Each asset buy and sell would have its own vehicle…but you don’t care about the details. You just want your guaranteed return.
I’m working out how to break down accredited and non-accredited investors. There is a whole bunch of non-accredited capital out there and regulations have moved to make it easier to access.
This is another benefit of self contained asset offerings. No mixing of accredited and non-accredited investors.
I’m zeroing in on a guaranteed 5% return annually for a lock up of 5-10 years.
If it’s paid out annually then obviously it’s not CAGR but it’s still better than anything you can find in the guaranteed world.
This may wind up not being worth it, but the strategy works and is scaleable for now and has a very appealing risk reward profile.
I’ll share details of the strategy with those that are interested.
Good investing to you!