How long have you been investing as an accredited investor?
I have been an investor with SIG for 3 years.
How have you achieved passive income in this protracted low-interest rate environment?
I am not one to invest in stocks and bonds. Historically I have stayed with real estate and finance, purchasing legacy assets and other types of loans.
What factors do you consider most before deciding on an investment?
Preservation of capital, risk to yield analysis (the threshold is unique to each individual), legal protection and maintaining a diversified payout structure.
Many of our investors re-invest 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?
I live by the advice that the #1 best return is investing in yourself and your business. I have been engaged in that philosophy early on. I have invested in a third party to manage the servicing end of my portfolio, freeing up my time so that I can proactively manage and research other opportunities.
Do you own a self-directed IRA? If so, what has been your experience with your self-directed IRA custodian?
I own a self-directed IRA with Equity Trust. They are a good company and inexpensive. They allow a wide range of investments. Self-Directed IRA’s are the best thing ever. The benefits are highly advantageous, especially to a self-employed business owner.
Do you invest differently with your IRA or retirement account vs other funding sources?
Typically the investments funded with IRA funds are longer term in nature and are invested with mutual funds or the SIG Debentures.
What advice would you give to a newly minted accredited investor regarding investing?
The most important consideration to me is preservation of principal. Take time for the due diligence needed to research the company/investment. Be proactive and look at all options. Once that is done, don’t be afraid, but keep your eye on the investment(s) to stay on top of it.
What has been some of the worst and best investments you have made as an accredited investor?
My best have been the real estate investments, including SIG and purchasing loans at discounts. The worst have been individual stock purchases.
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?
Being in the financial arena, I use friends and other industry contacts when needed to assist in evaluating the yield to risk profile on some investments. It is smart to have multiple points of contact that you trust. I have never been a fan of paying an advisor in a low yield environment, being that their compensation structure may not be aligned with my goals. Those with less experience may find it helpful to use a low fee portfolio manager.
What has your experience with Secured Income Group been like?
My experience with SIG has been a “10”. The best part is that it is completely passive with a great fixed yield and quarterly income. I trust the overall investment strategy and the diversification of the investment. It is not 100% of my portfolio, but I have a good portion invested with the team at SIG.
CEO & Founder, ‘Northern Star Mortgage Fund’