37 Ryan Parsons Protecting Your Alternative Investments
Bill Fairman (00:04):
Hi everyone! Welcome to another show with Bill, Wendy and Jonathan. So, we are part of Carolina Capital Management. And before I get started, make sure you like you share, you subscribe.
Wendy Sweet (00:16):
Bill Fairman (00:17):
You do the thumbs up thing. Any information that you need to know going forward. www.CarolinaHardMoney.com.
Wendy Sweet (00:23):
Tell all your friends.
Bill Fairman (00:28):
We are happy to have Ryan Parson of Heritage Capital. Listen, he has so many different entities. I don’t even know which one he does.
Wendy Sweet (00:39):
However, he is a dear friend.
Bill Fairman (00:40):
He is a wonderful guy. He is a trained financial planner, correct?
Ryan Parson (00:47):
That is right. We have a little bit of experience, Bill, with a few things called financial planning, I guess. At least that is what people would say we do.
Bill Fairman (01:00):
Ryan runs several funds and we will get into those later. But before we get started with any kind of fun talk, we will be talking about funds.
Wendy Sweet (01:11):
Disclaimer, disclaimer, disclosure.
Bill Fairman (01:12):
We are not selling any securities. This is education purposes only. If you invest in any fund, there is risk involved with any investment. Make sure you consult your financial advisor, and/or attorney, CPA, whoever you trust. You must read the PPM or your prospectus. Your mileage may vary. Okay. So, thank you so much for joining us, Ryan.
Ryan Parson (01:41):
It is great to be here with the three of you. I appreciate the invitation to join your podcasts here and I, you know, I think back to as, as long as uh, you know, bill and Wendy that you, you, I know him, the two of you and Jonathan over the last several months, I’ve gotten to know you since you’ve joined the Carolina Capital here. It’s been, you know, really an interesting journey when you look back really the last decade and these financial markets and you’re, you’re right bill, we, while we manage a lot of our own funds, it really is what we, what we do with investors. So at mile marker club, but that is really trying to help all of us as high net worth investors stay high net worth investors, especially when you have alternative investments, which I know are, you know, obviously you too run a great funds and the alternative investment space, we’re, you know, solely focused on alternative investments.
Ryan Parson (02:41):
And when you’ve decided to as an a high net worth investor and maybe for purposes of discussion today we kind of quantify that and puts you know, three to $30 million net worth investor up to maybe give some context here. When you’re in that space and you’ve decided to take full control back of your wealth, I E are not abdicating it to wall street, you’re not abdicating it to the New York stock exchange. You’re investing in funds like what you have at Carolina capital or what we have at you know, heritage capital USA for example, an alternative access point and the alternative investments, although that’s namely real estate too. And so the, the, it seems to be the shift, you know, as we are talking about this today, it’s been such a great bull run really the last 11 years. If you think back to 2008 when you, you know, when do you and I were just talking about this last, I think, I believe all three of us were talking about this last weekend at the freedom founders mastermind.
Ryan Parson (03:45):
We did. I did it. That’s exactly right. Is that, you know, we all became pretty wealthy this last decade, including the traditional markets have been good to those investors, which is the bulk of Americans because that’s all they have access to. It’s been really good and it’s created a lot of multimillionaires. You know, myself included. The real estate market has done really, really well. But I think as we all talk about in our various different masterminds and something we certainly talk very heavily with very succinctly what’s with our mile marker club members is it doesn’t last the these markets and you know, we, and probably where we’re at here I guess in March of 2020 are we on borrowed time and or the high net worth families that we serve, Jonathan, bill and Wendy, there is a very consistent sentiment out there and my own included the heyday is over.
Ryan Parson (04:41):
And if we’re kidding are we be kidding ourselves if we thought, Oh, this is just going to keep going and keep going and keep going. So that’s really probably the biggest premises that we, we are operating from today inside of the type of wealth strategy as we do. And have been working on, you know, with our members to stay financially free in the end, and continue to grow it certainly to the specification of the family’s wealth. But this idea of staying financially free is really, really a big deal. You know, I just had a tailor who works in our membership engagement department. I was just talking with her earlier this morning and she said, Ryan, have we been getting a lot of calls about, you know, the stock market doing its, you know, gyrations, you know, the, in this Corona virus that you know, is certainly a big buzz.
Ryan Parson (05:31):
And I don’t mean to diminish it by any means cause it is obviously real and it’s impacting families very directly in some cases really from a devastation perspective. But I said, no, Taylor, we haven’t gotten one call from our members. And, and she’s just said really? And I said, well right. If we’ve been hopefully doing our jobs well through our training and education platforms and our planning platforms and being able to constantly see the wealth unfold and advance that happening. You know, no one certainly would have predicted the Corona virus as we’ve all come to know it today. But you know, as our, as our good friend Mike big Mike talks about, you know, the black Swan event here is that, you know, you generally when you are an alternative investor and you’ve taken back the control to plan your own wealth, you have to build in some degree of what we call investment fluctuation reserves for the completely unknown.
Ryan Parson (06:31):
And you know, as it’s unfolding in front of all of us in real time today, you know, that unknown and you know, happens to be the coronavirus. And so it is unfortunate and as horrible as that is, it really is a stark reminder why we, especially as alternative investors that have taken back and wished to have control over our wealth. If we don’t engage in some of these, you know, really important wealth strategies and build those into your model and your family investment policy, black Swan events like this can be more devastating than just you know, the, the physical health concerns and you know, the economic concerns it will harm your portfolio and you know, potentially have to, you know, cause your financial independence to evaporate and you know, have to go back to work. And that’s a big, you know thing for our mile marker club members is that, you know, they’re largely already financially independent or are very close to being financially free and times like this, our stress testing it to make sure we can all stay financially free.
Ryan Parson (07:39):
And that’s really where I see a lot of this going. If I look at, you know, what the next decade might look like, hopefully not a whole decade of a downturn or complete volatility, but just this, this shift in the markets as we’re seeing. And so bill, I think that was one of your questions kind of at the beginning of how we do and help a family create that family investment policy to help manage or help give insights in terms of then what types of alternatives and access points of those alternatives seem to make sense based on, you know, their specifications. So those are probably the, you know, right? It’s kind of at the forefront of the things that are on our members’ minds of keeping going. Cause if you are trying to figure it out now, Oh my gosh, can I stay financially free when we’re having this type of market tribulation. Now is not the time to ask that question. If you have a plan for it, you are already too late. That is exactly right. And that is, you know, why even all of us as fund managers and Bill and Wendy, you guys do a great job. I know communicating with your investors and your Carolina Capital Funds is, we are always talking about what we see coming down the pike. As best as we can, as you said so eloquently, Bill, your disclaimer, which is absolutely true. None of us have a crystal ball. You know, we are just doing the best we can to try to stay as best ahead of these curves within our area of expertise that we all have and really as fund managers what we have to do for our fund and to do it and working in the best interest of our fund and all of our investors in our respective funds.
Ryan Parson (09:19):
So too, is it incumbent upon us as each an individual investor to run our own wealth like we would as a fund manager. In other words, what you have to run your own wealth at a professional standard. Yet, it is extremely difficult still today. You know, just part of why we do what we do because I could not find it even for my own wealth and our own family too, you know, to go find the who is the wealth, you know, the financial planner and using traditional speak that can help us with alternative investments. And all of us know that really doesn’t exist. But yet we also know we don’t want to just advocate it to Wall Street either. So you know, running your wealth like a business and like a, you know, we would as, as fund managers, you know, at a fund level, our wealth requires that too.
Bill Fairman (10:06):
Well this is part of the reason that we even do these podcasts and these video series is that there’s very limited access to this space for the general public. It’s unbelievable how many people don’t even realize you can self-direct your own IRA and get into these alternative investments. And you were saying earlier how one of your team members is asking you, you know, are you getting any phone calls about this? And you’re like, no. And it’s because you have educated investors and you do an excellent job of educating them. Tell me about, and by the way, that helps your stress level because you’re not having to field on these columns. And the other thing is, you know, your investors aren’t stressed about it because they know the path that they’re on. And these turbulent times in the stock market really aren’t going to affect them. Now they may have some allocation still in the stock market, but it’s not their total portfolio. Talk about how these events you, you put on where you’re educating or at least giving them the opportunity to come in and learn if they want to.
Ryan Parson (11:19):
So that idea bill that you’re bringing up about, you know, being educated is really a critical, critical piece. Frankly, I think it’s true for every American, whether you’ve gotten a $10,000 net worth or you know, a $10 billion net worth that education and understanding first and foremost, really nobody cares more about your money than you do. And the funny, your financial planner doesn’t, your CPA, your banker, your attorney, your stock broker, your, nobody cares more about your money than you do. And I think that’s a very common mistake that we’re taught to believe that, Oh, you know, turn it over to the stockbroker lecture 401k plan people, you know, they’re the experts. And while at some level that’s true. What we have to remember, you know, over in most markets it’s a little bit higher right now because the stock market has created multimillionaires. You know, just because of the increase in the valuation, but typically less than 5% of Americans have more than a million dollars of net worth and let alone to sustain $1 million of net worth over a long period of time.
Ryan Parson (12:29):
It’s just part of our education system in this country is taught, you know, and by the way, we’re taught not to talk about money, which is why I love this podcast that you two are doing. It’s, you know, it’s not taboo to talk about money and it’s what we can all do to help each other and support each other and learn. So this idea of education bill is very near and dear to our hearts and realizing that there is not a one size fits all approach to wealth. Well now traditional financial planning leads us to believe that you go to the stock broker and they ask you a couple of questions. Say they say here, do this. And it’s basically one of three models is what it boils down to. There’s really no customization to it. That’s not self directing by the way.
Ryan Parson (13:21):
And you know, I’ve got a story about that that I’ll share with you, I, but this idea of talking about wealth and education is really, really critical. I know bill and Wendy, you along to several masterminds. I do, you know, we are in masterminds together where you’re constantly talking about this and sharing. And if you’re a high net worth family today and you know, going to the stock market or traditional investments, bank CDs, maybe annuities, those types of things, kind of those traditional products, if you’ve made a conscious decision, you know, that’s not for me, your very first step is being able to get educated and not just, it’s not a onetime thing. School is never out of session, you know, cause otherwise if this moment you take your eye off the ball, you’re going to lose your wealth. It’s just how the game is rigged, so to speak.
Ryan Parson (14:11):
And so therefore it’s incumbent upon us. And bill, I think what you’re referring to our mile marker clubs, symposiums where you know, our existing members get to come together and we’re talking about and teaching, you know, these real elements. Does your, you know, whether it’s this, these black Swan events, you know, the tax laws, we’ve seen more tax law changes in the last 24 months. Than I can remember of anytime that’s directly impacted us, whether it’s self directed, IRAs, distribution rules, beneficiary rules, so on and so forth there. And those types of things are really, really critical to understand that. And you know, part of, you know, corporate America days before I hit my financial freedom now I guess almost a decade in that go go, thank God. And you know, it’s still a still there. You know, I got out of corporate America and you know, a decade later as I talked to some of my friends, if you will, back, you know, from that era of my life and talking about self-directed, it’s so interesting and this is true across the board that, you know, when people say, Oh, well yeah, I self-direct my IRA, you know, I can pick any stock off the New York stock exchange.
Ryan Parson (15:25):
That’s their idea of self directing. And I’m like, no, no nos, self-directed as we know it, as financially free, high net worth investors know it go, yes I can go invest on the stock I want to, but I can also invest in real estate. I can invest in private equity funds. You cannot call your stock broker in truly self-directed cause they’re going to say, no, no, no, no, no. You can’t do that. Self directed the traditional investment industry adopted self-directing and put their definition on it in response to what we all know is a true self directed IRA. And so that just that, that understanding of what self directing your wealth is is still vastly unknown, you know, in the mass, the marketplace as a whole. And you know, frankly with bill and Wendy, you’d soon certainly know my own story about it when I, uh, you know, hit my financial freedom.
Ryan Parson (16:22):
I left corporate America again almost a decade ago now was I had a 401k and I was with my employer for 19 years and being the good soldier and putting the max amount into the 401k, getting my company match thinking, woo, go, you know, money. And all this and that. And you know, I was young and so I was, you know, investing it, investing it aggressively and whatever, you know, traditional funding into planning says is an aggressive portfolio. And after 19 years, the day I walked out of the door and could truly self-direct it, bill, I didn’t have one more penny to roll out of my 401k than I had put in all of those years. More than a decades worth. Wow. Not one more penny you guys. And I wasn’t surprised. I wasn’t shocked. I wasn’t even mad at that point cause I knew what was happening. And that’s been, you know, again, almost a decade ago now.
Ryan Parson (17:22):
And then one of the biggest catalyst towards financial freedom. And remember guys, traditional financial planning says, well if you go long go the long term, you’re going to be okay. And you know, we as fund managers talk about that with our passive private investors too. You know, we’re investing for the long haul. It just has a completely different connotation because the long haul for me, you know, 15 plus years did nothing for me. Right? It did absolutely nothing. So I think the lesson there for me was yes, I was passive. Yes, I was for the long haul. Yes, I had turned it over to the supposedly experts. I did everything except I wasn’t watching it. I was not organized at all to really know what I was investing. I was not organized at all in such a way to be able to really understand, Hmm, what if I don’t want to wait until I’m 65 to actually become financially free?
Ryan Parson (18:23):
Because of course everyone tells it you gotta go to 65 and I never got to stop to really ask myself and cause therefore I wasn’t watching it. And that was really what stemmed what we know today at mile marker club and what we teach at our symposiums. Bill, what we, Wendy, you heard me talking about this and a lot of different contexts and venues is what we call wealth organization. And truly, you know, being organized with your wealth, especially with your alternative investments that you have to know the data. You’ve got to know your tax basis. By the way, I’m not a CPA. I don’t even play one on TV. I’m not a tax expert. But you know, if you’re not, what I have learned a little bit about taxes is that my CPA’s already telling me what already happened, I. E last year. It’s not about looking forward.
Ryan Parson (19:16):
You know, they, they can’t, no one can really ever tell me, well what, you know, how does this really play out? Especially with alternative investments because the traditional advisory, the traditional planning space can’t spell alternative. It can’t spell real estate the way we spell it right? And the way we control and once, so that’s a big part of what we teach and provide the tools to become really well organized to understand the confines of your wealth so you can make new forward looking decisions, right? And try to anticipate some of your taxes ahead of time and have more of a plan to then go back to your other advisors with and say, here’s what we’re thinking, here’s what we’re doing. Here’s some of the numbers that we’ve generally run. Now, what do you think, you know, in terms of this, so we’re always thinking about planning and being organized with living our own best life.
Ryan Parson (20:10):
You know, in the, you know, looking through the windshield, not looking through the rear view mirror, right? So that’s a, you know, a big, you know, a big part of what we teach in the, in the, you know, trying to spread the message as best as we can. And you two have been working with alternative investments and private investors as long as I have. It’s not for everyone. And what I’ve learned a little bit unfortunately is that it’s not for most people. Most people are not going to do this because the traditional way of thinking has got such a strong hold on them. They’re never going to step out. And it’s okay. It’s not for everyone, but it can be for anyone who wants it. And anyone who realizes that abdicating the wealth is a plan for no financial freedom. And you know, when the you, you shared at the freedom founders mastermind just last weekend at your talk, which was amazing.
Ryan Parson (21:13):
And I, I didn’t know some of those details, but it’s a very powerful story that you shared to go, you know, this stuff was happening around me and I wasn’t ready for it. Right. And you know, that was so powerful just for me to hear that just even a couple of days ago, Wendy, to remind me what is my why and what is my purpose? You know, getting financially free is one thing. Staying there is something completely different, but I’m grateful to be financially free, but my why is so much more about helping others, you know, get there and stay there. Assuming they’re willing to put the time and the energy and the effort towards it. And you know, so my why is really rooted on that of abundance, which was another big a talkie you’ve done along the way, Wendy, that is so powerful and I hope while you’re in a whole audience gets to hear you share some of those powerful and very potent stories because
Ryan Parson (22:11):
when you know, you come with the mindset of abundance and just and share, share, share, which we love to do around here. Maybe to a fault sometimes is that it’s the best way that I’ve learned to help keep all of us who want to truly be financially free and you know, stay financially free. You know, in our, in our good friend, you know, Dr. Phelps who runs freedom founders, talks about his other elements of freedom, you know, of time and health. But starting off financially free is, you know, a big first step and then making sure it allows you to get the rest of your freedoms that you want to be. And I, I’ve learned to do that bill through being very well organized. Understanding that advocating to wall street and not staying on top of your own money is a plan of disaster. It very rarely truly works. And so helping as many other people I experienced what I have been the good and the challenges and it’s, you know, it’s hard to say, you know, 401k’s but that’s my experience. That’s been my real life experience. So that’s why I get motivated and stay up late at night and get up early in the morning to talk about this and share my experiences to try to help others, you know, live their best life.
Bill Fairman (23:32):
Yeah. A 401k is still better than doing nothing. And it also depends on the timing. You’re getting free money from your employer. So are you telling me that you had, you got nothing more than what you put in and your employer or just you?
Ryan Parson (23:51):
Great question bill. I didn’t have anything more in there than what I had contributed over 15 years worth. But for my employer contributing and you know, paying the cost of the fees of the plan itself and you know there’s always going to be Feeser I would’ve lost money.
Bill Fairman (24:12):
Wow. Okay. All right. That said, what about these companies that offer a 401k but there is no contribution from the employer. So why I’m even bringing this up, you’ve discussed how difficult it is for some people to get into our space because it’s not traditional, it’s not the way the herd runs and you know, you start talking about it and then you typically have the normal amount of naysayers in your circle of influence and you really have to start surrounding yourself by people that are more apt to look outside the box and inside the box. Otherwise you’re just going to stay in that backing up savings and not really saving anything. And there’s, again, if you’re getting free money, do the 401k. I wouldn’t max it out. I would take my additional money and put it elsewhere. But if you’re getting free money, and again, it’s a timing thing. If, I can tell you if you were in a 401k in the last five years, you’ve made some money, but if you didn’t move it into something cash within the last, you know, before the last few days and all that, a lot of that was wiped out. I mean, it’s still a head from the last five years, but it could easily drop away. And notice, is it better to match that? not to even have that then
Ryan Parson (25:33):
Well, look, it’s a very legitimate question and quote unquote free money. Nothing’s free by the way, but are employers making some sort of contribution into it? It’s probably not a bad thing, but it probably, if that’s a good thing, it’s a very much a good thing, you know, to get that, that additional contribution dollars. But the bigger issue is really exactly how are you managing it. And you know, most 401k plans don’t let their employees take the money out while they’re still working in inservice. And that’s all part of the contrived system and so on and so forth. But the bigger issue, you know, our employers don’t want us to be too wealthy because we won’t work, most people won’t more. And also, you know, when you actually get financially free and you can truly call your own shots and you’re like, why?
Ryan Parson (26:30):
Why would you do that? But, but the bigger issue is, is that you have to have your own life’s purpose and you have to be able to clearly know what your why is and why are you doing things, you know, and my, you know, my why’s for leaving corporate America are long, very long list, you know, for all whole lot of reasons, but because it just didn’t fit in with my life of, you know, living out here in Colorado and traveling freely across the world, you know, when I want to and truly being able to surround myself with the exact people I want surrounded by myself. Exactly. My immediate team here at mile marker club are all handpicked, hand selected, our masterminds, you know, I want to personally select who I’m around and nobody else. And I know that might sound a little bit selfish, but it’s really important for our freedoms because from an investor’s perspective than just making the decision to go to alternatives or some portion of your wealth into alternatives, you know, we get the, the, the educate and making that decision is kind of the first step of that.
Ryan Parson (27:35):
And then keeping your skidding yourself and keeping yourself educated as another thing. But you know, I’m sure this happens to you guys all the time. It does with our own in our own family of funds too. You know, Ryan, what should I invest in and we’re not investment advisors, we don’t get, we’re not registered investment advisors, we don’t give investment advice, right? You have to understand is what do you need and what works and necessary for you. And we’ve got, you know, some ways to do that through our own experiences and you know, through the experiences of our other really sophisticated mile marker club members that we can benchmark against. But it’s really as an investor, being able to be educated and clear with your deal sponsors what you need and why you need it. Because then otherwise every deal is going to look like a good deal. And it’s the shiny objects and all. And it’s frankly at the end of this bull run, if we’re not already there, both in the real estate and the Altspace and the traditional markets is that a lot of that wealth is going to evaporate because the investors that haven’t kept themselves in school, so to speak and surrounded with the right community of other successful investors, they miss a key thing about selling high and buying low.
Ryan Parson (28:59):
Yeah. And you know, we’re not going to get into the whole thing of timing the market. But you know, a classic example in real estate, and Wendy and I’ve been talking about this for years too. I mean, we’ve all been buying real estate for, you know, nearly two decades now. And especially for that that we bought in 2009, 2010, 2011 those were bargain basement prices of single family homes or multifamily or commercial, you know, whatever type of real estate. Not all types of real estate, but you know, the kind of the, the classical, the single family homes. Well, you’re fast forward a decade later to 2020 those properties, the market has given a significant appreciation in those assets and our reds while to have gone up, certainly haven’t gone up at the same pace. You know, as a educated and well thought out and well planned in alternative investor.
Ryan Parson (29:56):
A lot of us have been selling those assets because yes, could it have kept going or could it keep going up? Yes. The reality of it is were harvesting the gains and you know, we’ve got other plans in place and there’s nothing wrong with that. But most investors, especially in the traditional markets, you know, when we were talking about 401k plans there, they never sell. They watch the ride up and everyone gets excited. oh it’s going to keep going. It’s going to keep going. Well, we know it’s not. And but the same applies with alternative investments too and you too deal with it in your funds. You know, if, if the market has given us some stuff beyond just our value add that we purposely set out to do with the asset, sometimes you’ve got to take those gains. And not just watch it go the other direction.
Ryan Parson (30:46):
Right. And so I think, bill, you’re to your question about, you know, how do investors do that? They, they’ve gotta be willing to take control and then they’ve gotta be willing to, you know, architect a plan that gives them the clarity that gives them the confidence and gives them the can do this, especially when you’re with a community of other investors who are also doing it and following a successful path. And you know, going against what the normal grain is. I forget the word you used there, bill, but the, it’s going against the grain least running with the herd. Thank you. You know, you know, I guess we can all argue we all run with a herd too. We just run in a herd in a different direction.
Wendy Sweet (31:38):
It’s a better herd too. You know, I liked the way you talked about the shiny object syndrome that people have and truly, you know, when you’re looking at investments and it looks like it’s too good to be true, it most likely is, you know, in that condo in Belis may not be the best investment for you. You know, it sounds sexy, but you know what’s really going on there. It’s you, you gotta be realistic with what you’re doing. Yeah. So some people, you know, they like these alternative investments but they kind of get crazy with it and they don’t, they’re not thinking, Hey, if I lost this money, would it matter? You know, if you can invest in that and you, the answer to that question is no, it wouldn’t matter if then do it, but it should matter.
Ryan Parson (32:26):
Well that’s right Wendy. And there is, you know, it’s back to having that plan and not just a cookie cutter stamp organized. Exactly. And knowing what you can withstand seeing that. Well, what if I lose that? I mean, I, I’d like my, some of my venture capital stuff, it’s, you know, out there it’s risky, but some of it’s just, you know, it’s fun and it’s interesting and you do that. Does, you know, is the core of my real estate portfolio and my income producing real estate portfolio is still very much intact. That keeps me financially free, keeps me sleeping very peacefully at night. You know, those cores are there and you know right now with where we’re at it look, you know, deal sponsors, alternative investment deal sponsors come out of the woodwork all day long and art, you know, your guys is inbox, my inbox are and you know, our respective investors or mile marker member’s inboxes are getting delusion.
Ryan Parson (33:24):
You know, it just inundated this and it makes it look, you know, and, and in this day and age with the, you know, the jobs act that really changed a lot of the marketing rules back in 2013 has given rise to a lot of this. And for the, the, the investor that’s really not connected to the right community or truly working with great deals, sponsors that get it, you know, like you guys do with you, with your funds. Yeah. They’re just going, wow, that looks good. Those returns look good. I’ll just go do that without any degree of what an investment policy is without really conducting due diligence, without most importantly knowing who you’re doing business with. You know, that stuff takes time. And, and when we’re in this age and everyone’s got a lot of capital, everyone’s felt a lot of success. We forget that, you know, sometimes we might make a wrong investment decision.
Ryan Parson (34:19):
I mean, I’m not perfect and in my own IRAs, you know, I’ve, you know, deals have not gone the way I thought they were going to and it’s rolling to happen. And if, but if you don’t go into this eyes wide open and have a plan for, you know, the things that aren’t going to go right, right. You will lose it. And that’s a common, you know, element that, you know, all of us as investors, again, no one cares more about our money than we do. And if you’re not organized, you don’t have a policy in place, you’re, I know what the outcome is going to be. I know almost 99% certain what the outcome is going to be and it’s not the, ultimately the outcome that we’ve worked so hard, you know, for our money to create for ourselves.
Bill Fairman (34:59):
Right. Right. Well said. You know, with, with most of the funds that we’re associated with, the friends in our community, they are more focused on, you know, keeping that wealth, preserving that capital than they are chasing yield. And it’s funny you mentioned that with all the, and I know there’s a reggae plus I hear advertised on satellite radio on a business news network and every time I hear it I cringe if you’re not making 18 to 21% return, you’re missing out and blah blah blah. Oh God, I wonder how many people are actually going to invest? They’re falling for it. They did. They might make 18 to 21% for a week for a little while.
Ryan Parson (35:46):
Yeah, exactly. And you know, again, do are those deals out there, they are out there. Could they be completely legitimate? They can be just how do you know what they are and you know, in the, in the worlds that we run in, in the worlds that we all play in here, bill, to your point, you know, when we’re so focused on preservation and then, you know, the, you know, predictable income stream associated with our real estate asset classes, it may not look sexy, but you know what, my financial freedom doesn’t need to be sexy
Jonathan Davis (36:26):
singles, singles and doubles. If you swing to get on base, you will eventually hit a home run. If you’re swinging for the, for the fence, for the home run, if you’re going to strike out a lot. Yeah, he was making a lot.
Ryan Parson (36:37):
capital rule right there. Yeah, it is. And again, it’s not that I don’t have some venture capital in my portfolio because I do and I like my venture capital stuff, but it’s not my day to day, you know, source of all of my income and, and these scary, well that’s right. Yeah. I’m not, I’m not, I’m good, but I ain’t that good. Um, you know, with that. But do I like to, you know, have some exposure to it? I do. And there’s also, you know, something to be said for realizing that, you know, the higher the net worth we are if you’re in this kind of three to $30 million net worth space. To your point Jonathan, um, you know, take a $5 million net worth portfolio, well 8% a conservative 8% returns. I get on a cash flowing real estate deals, whether that’s notes, whether that’s equity holdings, where however, the mixes that makes the most sense for you, there’s a lot of money.
Ryan Parson (37:35):
I mean, if it’s compounded, it’s even better than that. Right? Yeah, absolutely. And that’s, you know, having nearly, almost 20 years now of working with very successful high net worth alternative investors, that has been the very common theme that we’ve ultimately seen. And you know, I’ve got to watch it a little bit, you know, with my own family. Certainly how I’ve embraced it myself, you know, like this doesn’t have to be a double digit return. We all like bragging about our double digit wins when they actually happen. Not just on some proformer, some email that says it’s going to happen, but the double digits are for show that consistency is for the dough and that good consistent, predictable return is where the true financial freedom is added. So, you know, that’s what we, you know, are we where we like to hang out with a co underwrite and co-invest with, uh, with our members on, you know, those deals that are, you know, make sense to our specifications.
Ryan Parson (38:37):
You know, the last thing maybe I’ll say about it here too is the communities that we’re all a part of, and I’m not talking about the cities that we live in, I’m talking about our friends are the circles. Our network exactly is really, really critical because I know for, you know, the, the sponsors that we work with here at mile marker club and you know, bill and wendy, you two have epitomized this as really creating and architecting your deals to your investors specifications. Most times, and this is absolutely true in traditional investments, we have to take what they give us. And even in most alternatives, you know, the deal gets put in front of us. You got to take it or leave it when you’re involved in the right communities, the right circles, the right network. As investors, we get to have influence. And that’s part of controlling your wealth and creating greater predictability of your financial freedom in the passive cash flows.
Ryan Parson (39:40):
And so, you know, that’s a big thing that often gets overlooked. Cause again, you know, deals have largely been good. The market has corrected the errors of, of a lot. And that won’t happen. Yeah. It won’t happen forever. And so you want to be with solid quality deal sponsors that are open and talking and saying to their investors or their members, you know, what do we need now as we’re going? Because what we need now as we sit here in Q one 2020 I can tell you is a heck of a lot different than what we needed even, you know, three years ago this time and all we were doing. And so that that’s, that’s really an important part of not only getting to financial freedom but staying financially for you.
Wendy Sweet (40:26):
Yeah. So if somebody wants to learn more, I’m sorry, I’m just going to say I got a first, they only have a few minutes left that you wanted to talk about just to kind of the space it is before we get out of here and we want to hear about the mile marker club. Sure. More about that. So, well thank you.
Ryan Parson (40:47):
I love being able to talk with you and I guess I suppose maybe some people want to know, you know, and the manners that we actually do all of this stuff. So you know, what we’ve really we really strive for, we’ve got, you know, I’ve got a great, great team of fellow fund managers, you know, that we work with today between, you know, a colonial Capital management with our good friend Eddie speed, who we all know, Mike Zlotnik with tempo is really what we’ve been striving to do these last several years is bringing what we call a family of funds concept to our investors. In our mile marker club members. So it’s really rooted and you know, one of our funds, the heritage multi-sector fund is really rooted in the income based alternative, primarily real estate related assets. So you know, performing rental properties, performing secured loans to our opportunity or excuse me, more of a blend fund that combines those income, similar types of income deals, but with a high growth via longterm deals like, you know, maybe some ground up like self storage or that type of thing to a true growth fund that’s really doing, you know, large rehabs, longer term growth oriented projects.
Ryan Parson (42:03):
And, and that’s, you know, part of what, you know, our family of funds now are really designed to do today, bill and is we’re, you know, we’re constantly evolving again to meet the needs of our investors. You know, given the market conditions we have to work with. And so those are, you know, the heritage multi-sector fund one, the new tempo growth fund. I think bill is what you were referring there to, to allow that investor who likes funds as an access point. It’s not for everyone, but the fund is a, is a strong access point to get access to several deals and then you know, a nice diversified manner. So, uh, that growth fund has been that kind of helping us to round out that portfolio in the family of funds and, and really the, the mile marker club side of the house is about that wealth education, about that training. And then you know, for those members that want to go a little bit deeper and plug in with us from a strategy, coaching and really providing the tools to help you be your own best wealth and manager in your own best wealth advisor is really what mile marker club focuses on the needs of that and helping its members. Like I say, stay financially free through strong analytics, through strong financial plans, rooted in, you know, an experience of other high net worth families that have been really experienced.
Bill Fairman (43:25):
Right. How would you like to be contacted? What’s the best way to get in touch?
Ryan Parson (43:30):
I appreciate that gang. You know, our websites are probably the best way. Milemarkerclub.com is to go out and take a peek at our website. You can see a little bit more what we do on our deal flow side at heritagecapitalusa.com. Heritage side of the house is more of our deal flow and our deal architecture side mile marker club is more of our wealth strategy side. So our websites are probably a great place for someone to start if they’re interested in us and learning more.
Bill Fairman (43:57):
Well we’ll, we’ll have links already in place for, for the viewers. Ryan, thank you so much for all your time, but Hey,
Ryan Parson (44:04):
it’s, it’s my pleasure. Thank you to what you are all doing, to constantly be educating and talking about the, the, the vast world of alternative investments. It’s uh, I’m grateful for the relationship with the two of you. I’m grateful for how serious you take, you know, the management of other people’s money and it’s really impressive what you two do, how your entire organization does that. And I’m just, I’m grateful to be a part of your circle and to help out and, and serve your investors. However I can.
Bill Fairman (44:31): Well, we better get his chicken. [inaudible] have a great day. Thank you folks for joining us on our show. We’ll have another one coming up in about 10 minutes anyway, remember to share, like subscribe, thumbs up, and then CarolinaHardMoney.com is the website for us. Have a wonderful day. Thank you.