Ep.104 Alternative Assets in a Self-directed IRA or 401K
Directed IRA Podcast
Introduction
Matt Sorensen and Mark Kohler are co-hosts of the Directed IRA podcast. This week they're talking about alternative assets, which is pretty much everything besides the stock market. The ultra high net worth invest 81% of their dollars into alternative assets for those with $50 million or more.
An Incredible Alternative Asset Summit- Here are some of the key takeaways and how it can directly apply to Self-Directing!
- When vetting an investment sponsor (syndicator, fund manager) ask them about a failure or problem they’ve had on an investment/asset. If they don’t have one, they’re either not being transparent or they haven’t had enough experience in what they do to be investing with them. You want to hear about a struggle they’ve had and how they handled it. Veena Jetti
- The middle market of commercial real estate has tremendous opportunity. Smaller deals below $5M are taken by wealthy individuals and entrepreneurs while large deals over say $20-50M are taken by large institutions, this leaves a huge opportunity in the “middle market” of $5M to $20M as the buyer pool is limited. Chris Loeffler
- Banks are a business focused on their assets and revenues, they will be foreclosing if borrowers can’t pay and won’t be cutting deals as rates for commercial loans are resetting and rising. This is opportunity for investors. Find bank officers (eg linkedin search) and get to know bankers who handle these troubled loans and assets. Search for bankers with REO and special services in their job titles. Jonathan Morris
- Find the best pros in your market (real estate agents, mortgage officers, title agents/attorneys, home builders/contractors) and network with them as someone who can solve problems and come up with your funds or private money to make creative deals and transactions work. John Shekarchi
- Hospitality assets have been distressed by lack of bank lending/financing and covid restrictions but operators who can transform deeply discounted properties have significant upside (e.g. adding weddings and experiences to resorts to get rooms pre-booked and under contract over a year out). Josh McCallen
- Stock market investing is about beating the person on the other end of a trade and trying to be the smartest in the market. Real estate investment success isn’t about being the smartest or beating someone else, it’s more determined by creativity and hard work on deals on properties and opportunities that are all unique. Jamison Manwaring
- Angel investing requires at least 10 investment positions as many investments will fail entirely while a couple can return a modest return and you’re hoping that at least one investment brings a significant return that makes up for the failures. Lisa Walker
- Investor portfolios with alternative assets are proving to add more yield and less volatility than traditional stock/bond portfolios. Michael Bradley & Brandon Scott
These are from memory and summarized. They’re 💯 but not exact quotes. Continued in comments. What were your takeaways?
Don’t miss the opportunity to elevate your investment strategies and stay ahead of the competition. The 2023 Alternative Asset Summit Recording is now available for purchase, and it’s your key to unlocking invaluable insights from industry experts and thought leaders. https://shop.matsorensen.com/
Directed IRA Homepage: https://directedira.com/
Directed IRA Explore (Linktree): https://linktr.ee/SelfDirectedIRA
Book a Call: https://directedira.com/appointment/
Other:
Mat Sorensen: https://matsorensen.com & https://linktr.ee/MatSorensen
KKOS: https://kkoslawyers.com
Main Street Business https://mainstreetbusiness.com
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