It’s quite surprising how often institutions tend to underestimate the “little guy”.
Currently, we witness institutions continuing to overlook the potential of those who might be considered “small players.” For a significant stretch of time, the spotlight has been on the elite, accredited individuals with substantial net worth.
Navigating Financial Turbulence
As a commercial airline pilot, I belonged to the category typically of non-accredited professionals, earning a modest income ranging from $60,000 to $150,000 annually.
My frustration was clear, coming from the lack of promising investment avenues available to me. The opportunities were limited to the company-provided 401k plan, the details of which I admit I didn’t entirely comprehend.
My investments were limited to predetermined stocks that were considered safe by the company.
Honestly, I had no idea where my money was headed. It all revolved around market trends – a volatile game where success depended on the unpredictable shift of the market.
I witnessed many fellow pilots lose significant amounts during major market downturns.
The reason behind their financial setbacks became clear to me: a lack of investment in what I call “real assets.“
Not only something that provides income, but also other benefits that protect your capital.
In real estate, for example, you have Cash Flow, Appreciation, and Depreciation, which offer tax benefits, as well as leverage
“Don’t you think it’s interesting that Bank of America will give you a loan on a 300-unit apartment complex? Yet, they will not give you a loan to invest in their own stock.”
Single-Family Home to Multifamily Ventures
At the age of 25, I was fed up. I didn’t believe in the company’s programs, and I decided to start investing in real estate on my own. I began with a single-family home and converted it into a crash pad. I rented out the other bedrooms to pilots to cover the mortgage, expenses, and then some.
The problem was that this wasn’t scalable.
My second investment was a four plex, which opened my eyes to the possibilities of what are called multifamily apartments.
A four plex is not considered a commercial property, but I could taste the true potential of having hundreds of units on the same block.
This Was Exciting!!
Keep in mind that, at that time, the jobs that allowed individuals to mark syndicators online had not yet been created or established, forcing me to navigate my real estate journey alone.
But there has to be a better way!!
My Powerbase
I found Grant Cardone on YouTube and made the decision to give up my seniority and career to work for one of the greatest entrepreneurs in the US.
Grant was not only an entrepreneur, but he was also a successful real estate investor. He would actively seek out large multi-family apartments, with over 200 units, and keep them within his close circle of friends and family — sometimes never selling them.
2014’s Game-Changing Shift
“2014 was a pivotal shift in the syndication world due to the Jobs Act, which allowed sponsors to raise capital from platforms such as Instagram, Facebook, YouTube, etc., for both accredited and non-accredited investors. This opened the door for them to introduce investment opportunities through their platforms, enabling people to contribute as little as $5,000 or as much as $10,000,000+ in order to gain access to high-quality institutional-grade deals.
As a result, a realization occurred: more individuals were drawn to the idea of investing in tangible assets, demanding transparency and wanting to see where their investments were housed. This shift marked a departure from conventional investments like stocks, bonds, and company-established 401k plans.
