Q+A with Adnan Mustafa

How long have you been investing as an accredited investor?

I have been investing as an accredited investor for 7 years. 

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

I would advise to do your homework and diversify.  Start slow, and tread lightly.  Diversify as you gain experience and confidence. 

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

My diversification strategy has led me to invest in a restaurant, residual income from a previous business, contract work and rental property income. I consider stocks too volatile and require too much attention. 

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

I consider the security of the investment, its liquidity and the return on investment, balancing all 3 factors as a part of my decision. 

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

The worst was the lack of action to reinvest funds from a 401k rollover and considered the returns that could have been made if I would have invested sooner. My best investments have been investing in hard money loans. However, I would highly encourage thoroughly vetting the organization you choose to invest with. Using Secured Income Group has worked very well for me as well as funding individually sourced hard money notes on my own. Each has its own level of security when it comes to preserving your investment.  I do both, because I like what SIG offers when it comes to security and return on investment and therefore I diversify with both.

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

I take a little more risk with retirement funds, and consider longer-term strategies.  I consider passive income returns differently funded with after-tax funds,  and consider the consistency of ROI based on future capital needs. 

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

I did invest in establishing a solo 401k Solo Trust account, which allows me to self-direct my own IRA investments.  This allows me to invest in many other assets other than the traditional stocks and bonds through a managed 401k and worth the $1000-$1500 initial investment of setting up the Trust account with Broad Financial.

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 use all of those sources, including news articles, friends and colleagues.  I use common sense with applied with experience. I take note of other experienced investors ventures and evaluate some of my decisions based on their successes and failures. 

What has your experience with SIG been like? 

I am confident in my experience with SIG.  I consider myself a conservative investor and I do like the fact that the office response is timely, personal and that the office is local.  I am looking forward to future reporting updates, including past history milestones and portfolio performance.

Adnan Mustafa

General Contractor