How long have you been investing as an accredited investor?

I have been investing as an accredited investor for a minimum of 15 years. 

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

Make sure to diversify. I go by an old “rule of thumb” to not invest more than 5-8% in one specific investment, and definitely no more than 20%. 

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

My preferred market is real estate. I am invested with several different mortgage pools, diversified between residential and commercial including REO’s, apartment buildings, mobile home notes, and Secured Income Group’s Offering. Overall, I have averaged about an 8% return. 

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

I like to do my own due diligence research, and I like to meet with the management to interview and make sure their investment strategy/practices align with my views. 

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

I did invest with an OC company investing in apartment buildings which turned out to be a “Ponzi scam”. I did pull out of the stock market in 2005, and have concentrated my investments in real estate ever since. 

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

My investment strategy is the same with IRA funds with no noticeable differences. 

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

Yes, I do own a self-directed IRA with IRA Services. I am overall very happy with their services. I would advise to be aware of all fees involved when choosing a custodian to work with. 

What has been a good source of investing ideas over the years? How do friends, network of other investors, Wealth Advisor, Financial Planner, CPA, articles, publications factor into your decision?

I do my own research reading articles, and speak with investor friends regarding potential opportunities. Overall, I trust my gut and make a decision. 

What has your experience with SIG been like? 

I was able to research the group and meet with Max and the team and called on references to learn about their personal experience with the company. I liked SIG’s business philosophy, that they are local and responsive to my questions. I do like the software used to keep me updated about my investments. 

Richard W.

Independent Insurance Broker