We talk about a lot of concepts on Wealth Formula Podcast related to personal finance and sometimes it can be overwhelming: especially for the newbies in our community. So let me summarize the basics.
First, make sure you are protecting your family against the economic fall out of unexpected death. Estate planning, including life insurance, is critical. I am a firm advocate of cash value life insurance such as Wealth Formula Banking to also allow your defensive moves like insurance to help you amplify your wealth.
Next you need asset protection. You don’t want to be a lawsuit or creditor away from bankruptcy. Cover your assets as they say. Get in touch with someone like my attorney, Doug Lodmell, sooner rather than later.
Finally, the Wealth Formula ethos is to invest in real assets that not only make you money but also mitigate your tax burden. In my humble opinion, the ideal investment for this purpose is to invest in apartment buildings.
I have searched high and low for investments that offer comparable yield with the same risk/benefit profile as investing in value-add working class apartment buildings in fast growing markets. I can’t find anything that comes even close.
Even real estate development doesn’t really make sense to me right now. The yields are no better than what I’m getting on value-add apartment buildings with a fraction of the risk.
We have also seen the resilience of apartment building investments in the hands of competent operators. Pandemics, deep recessions, and eviction moratoriums aside, we have fared quite well and investors are seeing that first hand.
And now, we are out of immediate danger and the economy is growing at an incredible rate. Fiscal and monetary policy combined with pent-up demand for goods and services is creating an economic boom that, in my opinion, will be the second coming of the roaring 20s.
I believe we are just at the beginning of one of the best times to make money in decades. I also believe that people who invest as much money now into real estate will be very happy in a few years if those properties are improved and managed competently.
Sitting on the sidelines is a guaranteed way to lose money. Why? Well, along with that real economic growth, we are also going to see some significant inflation. Your money in the bank is, therefore, guaranteed to lose value.
If you are in our accredited investor club, you are going to start seeing our rate of acquisition pick up quite a bit for all of the reasons cited above. It’s GO TIME!
To help you understand why that is, I interviewed Dave Steele, co-founder and principal of Western Wealth Capital. Dave has been in real estate for three decades and has been extraordinarily prescient in his forecasts.
If you want to know why I think it’s “go time”, make sure to listen to this week’s episode of Wealth Formula Podcast!
David is an entrepreneurial executive who has offered leading-edge investment opportunities to thousands of individual investors in both Canada and the United States. From 1997 to 2001, David was CEO of International Properties Group Ltd. (IPG), a TSX-listed real estate company that purchased apartment buildings and converted them to condominiums. While at IPG, David developed and operated a wealth management division, which helped thousands of individual investors acquire more than 85 projects and 7,000 properties throughout North America. Those investment properties continue to generate passive investment income today. David has been actively involved in the growth of the Entrepreneurs Organization (EO), a non-profit organization that now has over 7,500 members worldwide. From 1993 to 1994, David served as EO’s International President. David has a Bachelor of Commerce degree with a major in finance from the University of Calgary.