Why the Wealthy Avoid Stocks – And What They Invest in Instead with Dr. Allen Lomax

Good morning and welcome, wicked smart listeners. It's Chris Pree again, your host of the Smart Real Estate Coach Podcast. I want to remind you guys of a couple of things coming up because here we are sitting in March. Let's just say hypothetically, in a couple of weeks, you're going to be one quarter of the way gone into 2025. In other words, a quarter of the year is gone. So as I do every so often, are you a quarter of the way Towards accomplishing your goals, there's no wrong answer and there's no bad answer. The answer will just tell you where to go next. If your answer is oh shit no I'm not even close, then when would now be a really good time to get on the phone with someone? Whether it's us or someone else, it doesn't matter. In rip apart, what has been the blockage? What has been the stops? What has been the curveballs? What has been the constraints? And then figure out a strategy. It's that simple, guys. You don't have to reinvent the wheel. There's someone out there, whether it's YouTube, whether it's a coaching program, whether it's a community that can help you rip that apart and get you where you want to be. There's zero reason for you to be sitting there on or about roughly March 5th, the first week of March, saying, you know what, I'm not where I thought I'd be for the first 2 months. It's nonsense. We can get you out of that. If you want to chat with me personally, go to smartrealestatecoach.com/ Chris Pre-Call. I'll get on a call with you. All right. I want to introduce our next guest here because I've been hanging out with him for a few years now. Dr. Alan Lomax. He's got a PhD, get this, in organizational systems psychology. He's also a seasoned investor. Now, I love a couple things about his bio when I went over a few years ago. Number one, he empowers professionals and entrepreneurs and retirees to achieve financial security through retirement. And there's some cool things he does. We'll talk about that, uh, through Creative Retirement. Secondly, he's a seasoned investor and he went through a horrific 2008 crash. So I look at those 2 things like, okay, that's cool because we empower individuals and families to live the life of their dreams. He's empowering professionals, entrepreneurs, and retirees. I went through the 2008 crash. I think that's invaluable when coaching people. I wasn't It wasn't fun. I didn't, I'm not happy I went through it, but in hindsight, it's given me what I have today to help others just like you get through the normal ups and downs of real estate. It's going to keep happening, right? Well, Alan has the same thing, so I could go on and on and on, but he actually teaches, this is really cool. So within 60 days, and we'll talk about this in a second, he teaches you how to convert volatile, what he calls publicly traded and low-performing investments into stable, recession-resistant. Love that word. Another word I like to use. So we got a lot of parallels there into high-yielding assets that deliver 18-plus returns. Now, that's a pretty bold statement, guys. It also simultaneously helps you reduce tax liability. So I think we're going to open your eyes here in a big, big way, and you're going to love some of the conversations we get into.

Welcome to another episode of the Smart Real Estate Coach Podcast, your source for actionable real-life examples and advice to help you move to the next level of investing. Each week we help you make a quantum leap in your business, your finances, and/or your life. We want to help you take back control, help you thrive during chaos, and lead you through the current crisis to a better tomorrow. For more resources, check out smartrealestatecoach.com and be sure to give us a rating and review on your favorite platform.

Okay, Alan, so with that as a little backdrop, welcome to the show. Good to see you again for the— I don't know how many times we've been together.

A number of times. It's always good to see you. Delighted to be on your show.

Awesome. Awesome. I, um, as I just said in the intro, uh, there's a bunch of parallels with our stories the more we get to know each other. One is certainly the '08— I called it the debacle. You might have words for it, but, but share with us a little bit about what happened there because that'll pace the rest of the, the chat.

Yeah, that was not a good time for me. So for me, wealth building has never really been about accumulating assets. It's always been about something deeper. It's been about securing a lifestyle with the freedom that I want, creating impact and leaving a legacy. that enriches both humanity and the natural world around us. But I didn't set out to be an invested expert. My journey began in academia where with a PhD in organizational systems psychology, I dedicated about 30 years of working with personal and organizational transformation. And my retirement plans were really left in the hands of financial advisors who exclusively recommended public offerings, stocks and bonds, without considering alternative investments that could have provided greater stability and higher returns. Well, I started looking around for other investments and I found single-family investing, and so I began doing that and my wealth really exploded and everything was wonderful and great. Until 2008 hit and I realized I had made a whole lot of mistakes along the way and I was basically wiped out. So I had to start all over and I was 57 years old at that point in time. Not a pleasant time to be starting one's journey again, but there I was at rock bottom. And so I started looking around for different alternatives and I discovered through study, through masterminds, that the route for me was actually passive investing in private placements, primarily commercial real estate, largely multifamily. And through that, I found a path that helped me to develop wealth much more rapidly and in a way that was Much more secure than what I had been doing through the typical— what I was doing was actually buying properties, holding them for rent, and there's a lot of downsides to that. The risk is great. Single-family, when you have one vacancy, that kind of wipes out that whole investment. I was overleveraged. I didn't have reserves. And there's the advantages of going commercial are working with teams that know what they're doing, that are experienced, that are established, and that reduces the risk. It also gives me the opportunity to diversify across vast geographies as well as to diversify across syndicators. So it's been a good ride. We can take from there, go from wherever you want to go with this.

Well, I'd love to, like, if I'm the listener, I've chatted with you a little bit, but they obviously, let's say new listener. So let's talk about some of those things, right? That you do, maybe some examples, because I know you're pretty passionate about not just doing it for yourself, but helping others do that. So talk a little bit about the types of things We're talking about.

Sure, you bet. So I got into this really for myself and started using, I say I was totally and completely wiped out. Fortunately, I owned my home free and clear, and then there were a few assets that I was able to hang onto. It took about 7 years to reclaim that value in those properties, but once I had that, I had some equity to invest. And that's where I began my journey. Well, realizing that this was a wonderful way to go, I realized that I could help others to find their way to this. And people in academia, other professions are doing the same thing that I was doing. They're relying upon traditional financial advisors and they just don't have a path forward to really dynamically grow their wealth at a much more faster rate than they can through traditional processes. So I established Streams to Impact, which is a program that within 60 days can help people convert their investment, their retirement portfolios from the traditional public offerings that are volatile, that have low returns and put them into secure and stable assets that deliver over 18% annual return. And they also provide cash flow. So it's putting people into really what Those of us in real estate know that real estate is that ideal investment. It provides income, which is consistent cash flow produced from rental, provides depreciation, which is the tax reduction strategies, and it provides equity, which is placing the asset in a secure, stable asset. And then the appreciation that is the growth of the equity through both natural means just over time and through increasing improvements in management and in improving the properties. And then of course the last is the leverage, which is just controlling an entire asset with just a small amount of that investment. And all of this is done by the syndicators. They are the ones doing all of this daily work. We as passive investors, all we're doing is contributing the capital and then we get all of the benefits from that while someone else is doing all of the work. So it doesn't interfere with our lifestyle, it doesn't interfere with our trajectory in terms of our financial trajectories. It just enhances it and grows it at a much faster rate. So there's the, on top of all of these 5 ideal things, there's the tax liability reduction, protection against inflation. It is recession resilient and it provides diversification, which all of this adds up to risk reduction. It doesn't eliminate risk. Any investment is a risk, but it certainly reduces it. Provides a secure asset by attaching it to a tangible asset, and it is a stable asset that delivers high returns. So it is the pathway in is, you know, you can do all of this, of course, on your own if you want to go out there and develop the network that I have been developing over the last 4 years. If you want to go out there and private placement syndicators, if you can even find them. You can certainly do it on your own, or you can go the simple route and you can join Streams to Impact. Where do you want to take it from there, Chris?

This is great. Are there levels? I'm thinking again for the Wicked Smart listener side, are there levels of investment that are minimum that they should know about? And then obviously, How do they reach you? Just so I don't forget and then leave that off the table.

Okay. Yeah, thank you for that. Yes, your program is wonderful for people who don't have an established portfolio and you offer opportunities to start from scratch. This is not for people who don't have an established retirement portfolio. It takes at a minimum really $50,000 for any one investment. I really wouldn't recommend that people join our program unless they really, they already have at least $1 million in assets or they have a high income of $200,000 a year or more. So it's not for everybody, that is for sure, but it is for those who have an established portfolio and want to grow and expand on that. Why would you want to do that? Well, $1 million may sound like a whole lot, but that's not going to— if you retire at 55, even if you retire at 65 and you plan to live to 85 years or so, $1 million is probably not going to get you there. You need to grow those assets even more So how do they get ahold of me? Well, the easy way to do that is just go to highyieldblueprint.com and there they can download our blueprint, our guide to 60 Days to 18% Return, and they can schedule a one-on-one consultation with me. And in that consultation, we can make the determination whether the program is right for the viewers and listeners or whether they are right for our program. Either way, they will leave with a blueprint to develop their wealth and a way to overcome the challenges that are standing in their way. And however the outcome of that conversation goes, we'll leave as friends.

I love it. But I love it. What else? Go ahead. Sorry, I could juggle that.

Well, in terms of people who aren't familiar with private placements think that they're the riskier investment because that's what they've been told all their lives. But in actuality, stocks and bonds are some of the more riskier assets out there. They're as volatile as can be. Just this I guess it was yesterday, the stock market opened about 600 points down. By the end of the day, it had basically regained all that. And tomorrow, the bottom could drop out on it. And I have been told, I don't know if this is true or not, but that it isn't just Warren Buffett, but Warren Buffett has essentially taken all of his assets out of stocks and bonds and is holding them in tangible assets because He, like many of the other financial gurus that I follow and listen to, are doing the same thing because they see in the horizon not particularly good things for the economy. So they're putting them in intangible assets. And Tiger 21 is a peer network of ultra-high net worth individuals. You have to have $20 million in assets to even be part of this, but they do share their collective data on where it is that their members are investing. And they have, these high net worth individuals are putting their assets in private placements. 60 to 65% of their portfolios are in private placements. About 50% of that is real estate, and the other private placements are in startups and different various other other tangible assets. They have approximately 17 to 18% of their portfolios are in stocks and bonds. So do what the wealthy do if you want to grow your wealth. And then the Federal Reserve Bank of San Francisco conducted a 150-year longitudinal study looking at all the various different asset sectors and classes. And that study revealed that private placements through that whole 150-year period were the most stable and that they yielded better returns than any other investment sector. And Forbes has consistently reported that the vast majority of millionaires in the United States have made their millions through Private placements, real estate being probably the most predominant in that. So there's a lot to be gained from investing in private placements, and and we offer a solid, well-defined path to help people convert from the traditional stock bond markets to stable, secure. Investments that deliver high returns.

Okay. Who wants to be the next apprentice? Pretty interesting, guys. We started this apprentice program back as a July 4th, 2024 promo. That's where it started. And it was so incredibly effective. We were just going to run it for the summer. It was so effective immediately we kept it. It's in place now. And what is it? It allows you to get into the community, the Wicked Smart community, for less dollars than the QLS home study course sells for right now on our site. In fact, When you go to smartrealestatecoach.com/apprentice-pod, apprentice-pod, when you go there, you're going to see that as an apprentice, you're going to get over $13,000 worth of coaching, the possibility for you to touch base with us if you want to, 4 or 5 times a week. And it doesn't exist anywhere out there, frankly. That's why we did it. We did it for 2 reasons. One, no one is giving you the support out there. We keep hearing feedback, which is how this was born, that other educators are not giving support. They're just selling stuff. So it doesn't exist anywhere and nowhere in the real estate education or coaching space. And we want to help you do one thing— deals. So we've wrapped the support mechanism around this. We've allowed you to get into a Slack community with the other associates who previously were protected in Slack. And now you get to jump in there and experience that for 12 weeks. You also get to come to the In the Trenches boot camp, which is private. It's a chance to hang out with the family team and one of the coaches for 2 and a quarter days in our conference room, roll up his sleeves, get calls done, get deals done. If you come with leads, you leave with deals. Absolutely incredible. I could go on and on. Go to the website right now, check out more information about the Apprentice, and I'm going to give you the In the Trenches boot camp site because you don't have to become an apprentice. It just happens to be free with apprentice and associate. So 2 links I'm going to give you, super important. smartrealestatecoach.com/ittb-pod. That's going to give you some information about the boot camp. If you want to buy a ticket to the boot camp, it's more expensive, but you can just come check us out. About 1 or 2 people every time we run it do just that or become an apprentice and it's for free. smartrealestatecoach.com/apprentice-pod. Yeah, I remember, Alan, I'm sure you read it or saw it, but Tony Robbins' 3rd book of his trio on finances talked 100% about what you're talking about right now and highly endorsed that whole path. So yeah, I loved it. And he went into real estate pretty heavy there with the private placement. In your syndications that you vetted and seek out, are there any particular asset classes you gravitate towards or is it Balance? Like, how does that look just from a real estate standpoint? I'm curious.

Well, the bulk of our investments are currently in multifamily housing, and that's apartments by and large. We are really wanting to expand that to mobile home parks because they have a slightly better return on investments and they are one of the asset classes that are extraordinarily recession resistant.

Yeah.

And so we're looking for syndicators in that particular area. We're also looking into car washes and ATMs as alternatives for our investors. But our bread and butter, our foundation is probably always going to be multifamily.

Interesting. Yeah. And there's a ton of reasons why. And I love your— I love the mobile home thing. I always have been intrigued by it. It's not something, as you know, that I've delved into yet. Probably one of the few niches I haven't like torn apart yet, but I'll get there maybe in due time. Your podcast, I want to make sure we mention, I said it just in passing in your bio, but Streams to Income podcast, which I've been on or my son's been on. Um, that's a writer down, guys. I'd go subscribe to that association. Who you listen to, who you hang out with, who you let in mentally matters. So go and subscribe to that Streams of, um, Streams to Impact podcast, right? Am I saying it right?

Yeah. That is correct. You're saying it right. Zach has also been on there. So your son-in-law. Yeah.

I'll spam you right on. I appreciate that. Yeah. Alan, what did I not like? I was just going logically through, right? I'm curious always with with what you do. So what did I not ask that you might want to share, a nugget or something I missed perhaps? I want to make sure that they as a listener get the most value, obviously.

Well, my journey has not all, it's not just been a financial journey and this is all about like and trust. So people need to know me on a personal basis as well. And so my journey has been really In organizational development, I guess you could say I've gone from a coercion to a connection process. And through that process, I really— why is my company called State Talker Capital? Why is Streams to Impact, our insignia has a horse on it? Well, it is because of horses that I have made that that transition. I've always had a love of horses, and like many, I was introduced to what is called natural horsemanship, a system often praised for its effectiveness, but in practice, it's rooted in coercion and domination. I didn't know any other way, so that is how I spent many years with my horses until I discovered a philosophy That changed everything. And through the wisdom of insights of Stormy May's Autonomous Horsemanship and James French's, uh, Trust Techniques, I began to see horses in a new light, not as beings to be controlled, but as intelligent and sentient partners deserving of mutual respect. And this awakening led me to a deeper truth. The same principles that apply to Ethical investing, transparency, trust, empathic understanding, and unconditional positive regard also apply to our relationships with people and the world at large. And so a big part of why I'm building wealth and continue to build wealth is because we are in the process of establishing the Steve Tucker Foundation, which is a sanctuary for horses and humans, and at where we can come together to learn how to live in a supportive, non-coercive environment to help us all to grow and to develop and to leave behind a world better than the one that we came into.

Love it. Love it. And thank you for that candor, Alan, because you're right. If they're going to get to know you better, that's going to be an important component of what we're doing, what you're doing, obviously. Super neat. Anything else contact-wise they need to know other than your websites in the podcast that we hit as far as your contact information? Did we leave anything out?

The best place to go is highyieldblueprint.com and From there they can download our free guide and also set up a consultation appointment. And there's links to many other things there as well. But that's the place, highyieldblueprint.com.

Great. highyieldblueprint.com. We'll stick it in the show notes. And bare minimum, guys, Wicked Smart listeners, thanks for being on with us again today. And bare minimum, go get the blueprint, right? It'll open your eyes. Again, association and opening that brain a little bit to bigger and better things. Alan, thanks again, and always great to hang out. I'm sure we'll rekindle some encore interviews together again like we've been doing over the last few years. Thanks again.

Be wonderful. Good to be with you, Chris.

Thanks a bunch. Okay, Wicked Smart listeners, that does wrap up our time with Dr. Alan Lomax. Guys, I want to alert you to a few things here. I opened the show with, hey, are you where you thought you'd be? Let's let's kind of lock arms. We can help you. Well, I'd be remiss not to tell you a few ways to do that. We have our annual event coming up in October. I know it seems like it's far away, but it'll fill up quickly. It's in Boston. There's not a real estate event, guys, if you haven't attended ours, quite like what we do. And you go, yeah, people say that, right? But we're in the trenches. We're going to be doing live deals. We're going to have speakers that make an impact, not pitch you a bunch of nothingness. And We feed you at the highest level for 2 days. You're not going to get an event like this. QLS Live Event 2025. Go to smartrealestatecoach.com/qfspodcast. Get some more information there. The other thing I'd love you to do, if you haven't gotten my free books, there's no reason not to grab those. So again, I'm catering now to if you're brand new to the show, go to wickedsmartbooks.com/podcast. It's free, guys. And it's not, hey, get my free book. Oh, by the way, put in $20 of shipping because that's bogus. That's not free. You're going to get a free package from us and it's not going to just be one book. Let me just leave it at that. It will be bare minimum, as you can see over my right shoulder, Real Estate on Your Terms. It was revised post-COVID. If you don't have that, grab it for free. You don't have to go to Amazon. Last but not least, we have been connected with Seven Figures Funding for quite some time now. They will be speaking at QLS Live Event 2025. But I would encourage you now in the month of March to set yourself up both personally and business-wise with the proper credit, credit lines, 0% interest lines, lines tied to your business, not your Social Security number. Lots of cool things. Go to smartrealestatecoach.com. /7, the number 7, figures-pod. All right, that's enough pushing that stuff. I want to make sure you had the right resources, but go out and make it an outstanding rest of your quarter. Make it count. You got almost a month left so that at the end of the month you can say, hey, a quarter of the year is gone and I did kick ass in the last few weeks and I did schedule a strategy call and I did take action and things are looking different. Make it a great week. Hey guys, are you simply sick of juggling a dozen different software tools for your real estate business? I know I was and I know I'm not a tech person, so was frustrating. A subscription for this, you got a subscription for that, and they don't even work together out of the box. That's very frustrating, especially in the real estate world where your best time spent is going to be out in the field or on the phone with sellers. And now you're stuck hiring a tech guru just to make all that sync up. So let's ditch the chaos and let REI BlackBook handle everything. Automate your lead follow-up, track every deal, analyze things quickly for you, make offers all in one platform. In fact, with the Wicked Smart platform, we now have access, if you're in the Wicked Smart community, to all the other associates' properties. Can you imagine that? So you're brand new in the business perhaps, and your seller looks on your website and sees 20, 30, 40 properties, instant credibility. So you're going to get everything on REI Black Book from our custom workflows for lead generation all the way to closing. It has it covered. Try it today for just a buck. $1, guys. Visit smartrealestatecoach.com/reibb-dd. smartrealestatecoach.com/reibb-dd.

Thanks for listening to the Smart Real Estate Coach podcast. If you're ready to invest in yourself and take your investing to the next level, check out our 90-day jumpstart program by going to smartrealestatecoach.com/jumpstart. smartrealestatecoach.com/jump. That's smartrealestatecoach.com/jump, because now is the time to act boldly in this unprecedented market shift.