A seasoned investor explains why someone with a million dollars shouldn't go it alone in private markets. Find a partner with 2-3 years of experience in the specific asset class, someone who can actually operate the deal. Learning real estate or private equity takes years you don't have.
Can I ask you a couple questions?
Uh, wow, I knew that already. Um, oh, that's good advice.
Let's say you just came into some money, right? You're a new investor, you made it or you inherited it. What's the best advice you would give to someone, you know, investing outside of the, the public markets, outside of stocks and bonds?
Yeah, I would find somebody that has invested like you want to invest and partner with them. Say, hey, can I invest alongside you? Because it takes so long to figure out. If you got a million dollars, it's going to take you 2, 3 years to figure that out. If you got a big check and you don't have a lot of time, Find somebody with a lot of time, a lot of expertise, a lot of experience, and find somebody that really knows how to operate a deal. That's what you really want to focus on.
Do you have a kind of a target net worth number that you're going after? What is financial freedom to you?
Yeah, more. It always goes up. So here's the challenge. You know, when you got money, you want to surround yourself with people that are where you want to be. So if you listen to Dave Ramsey, he's going to give you advice for if you got $1 million. But Dave Ramsey does not invest like that. So you want to invest like the ultra wealthy do. You want to invest in real estate, businesses, private equity. That's where the wealthy really invest. They're only putting about 20, 25% in the stock market. That's an okay investment, but that's not really going to make you wealthy. You want to invest in businesses, and commercial real estate is a business. You want to figure out what your number is, create enough passive income to cover your expenses, and then focus on your lifestyle. Focus on partnerships, relationships, and don't let your lifestyle outgrow your passive income.
