Ryan Daniel Moran talks with Jason Hartman about where to put money after selling a business. They cover real estate, dividend stocks, and control-oriented investments as ways to reduce risk and generate income from a large payout.
I want to put myself on the spot here and I want to tell you, you know this, that I sold one of my businesses. I got a nice big check.
Congratulations.
Thank you very much. I basically at 29, was, you know, I made it to the top of the mountain according to a lot, a lot of people's standards.
Most definitely. Most people would be considered hugely successful if they did that 20 years after you. So you're way ahead.
So for me, I am investing. I invest in web business, invest back into my existing businesses. I've invested into a couple of real estate backed funds. When the timing is right, I invest in dividend paying stock. Would you recommend that I change anything about that strategy? And are there other asset classes that you would encourage me to consider? Because I'm not the only person in our community who has come into a large windfall as a result of business success.
Oh, I've met some of your students and they've done incredible things. I mean, giant exits, we were talking about a couple of them this morning. I mean, it's just phenomenal what they've done. When I went to your capitalism event, I just couldn't believe the stories I heard from some of those people. So it's awesome. So when it comes to investing, I teach something I call the ten commandments of successful investing. And number three has definitely been the commandment that has struck a chord with the most people because almost everybody that has disobeyed this advice, including myself, and I still disobey it once in a while and usually regret it. Not always, but usually. And it is commandment number three, thou shalt maintain control. So when investing, it's not just about asset classes, as you mentioned, but it's about the vehicle you're using to be in that asset class. So for example, you could say real estate, right? And there's lots of ways to invest in real estate. You can invest in a fund, you can invest in, you know, someone's private placement memorandum for a deal. It can either be a blind fund or it can be a single property deal that they're doing. It could be a tenant in common deal. It could be a real estate investment trust or a reit. It could be, you know, a stock of any company that's essentially a real estate company. They're not always called that, but a lot of times that's what really they are. McDonald's would be a great example of that. Largest real estate owner in the world, apparently. And you can do it a lot of ways. But I like being a direct investor where I own and control the property directly. Because when you're a direct investor, you don't leave yourself susceptible to three major problems. Number one, you might be investing with a crook, okay? And you know, there's no shortage of crooks in every industry in every part of the world, right? That can simply rip you off. But number two, assuming they're honest, you might be investing with an idiot, okay? And just because they're so stupid, you'll lose your money, right? So assuming they're honest and competent, you pass those two hurdles. The third problem is they take a huge management fee off the top for managing the deal. And so when you're a direct investor, you eliminate most of those problems. You do create a new problem, though. The new problem is more work. You've got to be more engaged. You've got to be more involved as a direct investor. Sam.
