How long have you been investing as an accredited investor?

I have been an accredited investor for 20 years now.

How have you achieved passive income in this protracted low-interest rate environment?

I only invest in what I know and relate to. I would never invest in some secret formula that might be the next new scientific thing because I don’t relate to it.

After doing some basic research, I like to invest in things I know and can touch and feel and understand.

I would rather stick with something that is familiar to me that has a lower return, than take a huge risk and invest in something with a higher return.

My basic thinking, for example, is that I would invest in something like Tootsie Rolls because I know what it is, I’m familiar with it and can touch and feel it. My simpleness is what has kept me on track all these years.

If someone I knew brought up a new investment idea, I wouldn’t be opposed to it, since I am familiar with them and trust their judgement enough to at least look into it.

I actually had a guy ask me if I wanted to invest in new makeup studios coming out soon and because I don’t know the industry and did not know the guy that well, I did not go through with the deal even though it would have been a 28% return on my investment. You have to go with what you are familiar with.

What factors do you consider most before deciding on an investment?

Trust and returns.

For example, I trust my mortgage family guy. He has found investment opportunities for me that I was not very familiar with at the time, but because I trusted him and my financial advisors, I had no problem doing the deal. Surround yourself with people you trust and who create high-yield investment opportunities for you.

What have been some of the worst and best investments you have made as an accredited investor?

The worst investment I got caught up in ended up being a potential ponzi scheme. I lost around $57,000 in that one. I’m not sure what my best investment has been but Secured Income Group has been really good and very reliable.

Many of our investors reinvest in their business or create side businesses in relation to their primary business. Have you done this with your primary business and how has this paid off?

Yes I have done this and the results have been wonderful. I’ve done this through some rental properties and a captive insurance company.

Do you own a self-directed IRA? If so, what has been your experience with your self-directed IRA custodian?

I use a large firm and do not have a self-directed IRA.

Do you invest differently with your IRA or retirement account vs other funding sources?

Yes, I invest completely different with each account. When I invest with my IRA, I make sure it is a very safe and secure investment.

The investment is normally not as risky and high yield whereas my other accounts are more aggressive and yield a higher return. This has lead to a really balanced portfolio.

What advice would you give to a newly minted accredited investor regarding investing?

My advice would be to just be patient. Have confidence and remember that short term goals are not what win in the end.

What has been a good source of investing ideas over the years? How do friends, network of other investors, wealth advisors, financial planners, CPA’s, articles, and publications factor into your decision?

The best source of investing I have found is friends and referrals rather than going through a typical financial planner.

In terms of articles, I read a lot, whether it is the WSJ, or articles on investing, I just try to make sure I am educated on both sides of the political spectrum to know where my investments are at.

What has your experience with Secured Income Group been like?

I have been in an investor since 2008 and have been completely happy with them. I love the fact that they are consistent; consistent with the people and my investment. More than that, I am getting good money back with the high yields being offered.

Thank you Dave for your time and candidness doing this interview!

You bet, anytime! 

 

Dave Walker

CEO, ‘Walker Brothers’