Behind the Beard | September 15th, 2021
Something I'm Reading:
I’m re-reading some parts of “The Wealthy Gardener” by John Soforic. I always come back to this book and it touches on some of the core principles of building wealth, prosperity, financial wisdom etc. It’s written in the perspective of a father to a son and is a good read for anyone interested in financial freedom.
Something I Teach:
The difference between a 506b and a 506c! When raising money, there are several “exemptions” that real estate investors can utilize to bypass some crazy expensive and strict investment rules from the SEC. One of those is the 506b and one is the 506c. The 506b allows you to raise money from pretty much anyone - regardless of their net worth. The 506c only allows you to raise money from accredited investors (read what that is here if you don’t know). However, the 506b doesn’t let you publicly advertise your raise, but the 506c DOES allow you to publicize it. That’s why at ODC - we choose 506c, so I can talk about raising money on podcasts and social media!
Something Cool I Own:
I bought some pans a while ago called Hexclad pans and Heather and I love them! We have a couple. They ain’t cheap but they’re the best - don’t stick, easy to clean, and all that good stuff. I rave about them a lot :)
P.S. If you’re new here, I’m not an affiliate for any brands/products I mention in this section. Just sharing things I own and really like!
Something I Photographed:
Each week I share a photo I snapped in the previous week. Sometimes serious. Sometimes random and funny. Maybe a selfie once in a while. Just because.
Took Rosie on a daddy/daughter date to the arcade and to see the new Paw Patrol movie. Multiple times she exclaimed, “This is the best day of my life!!” Lesson and challenge for parents: be intentional about one-on-one special times with your kids. If you don’t plan it, it won’t get done.
Something I'm Excited About:
I’m excited for two things this week!
1). I’m giving away a free week stay in my condo here in Maui!! If you’re reading this, you’ve probably already entered since you had to sign up “Behind the Beard” as one of the “steps.” If you have no idea what I’m talking about, check out my post here. I’m picking a random winner this Friday (9/17) so stay tuned.
2) Open Door Capital is launching Fund 5 next week and I am PUMPED! When I first started ODC, I set a goal to have $50MM in real estate in three years. Two years later and we have over $200MM in assets under management AND we have distributed preferred returns to our investors every quarter. Lesson: Set goals and get a team and system in place to hit those goals! If you're an accredited investor and wanna invest, keep an eye out next week for more info! Since you're on a loyal BTB subscriber, you get early access to invest before we launch the fund to the general public.
Something I Can Answer:
Each week, I'll be answering one question from someone on my BehindTheBeard textletter! Want your question answered? Submit it by simply replying to this text!
Question: “What are your thoughts on turnkey companies for a newbie or for someone that doesn’t have a lot of time to invest? -Anthony & Michael
Turnkey providers are real estate companies who find, rehab, rent, and manage the property for you where all you have to do is get the loan and “own” it. Sound too good to be true? Sometimes it works out great, but other times the turnkey company has fudged the numbers or over exaggerated their ability to manage the property. This may lead to you encountering the same issues non-turnkey investors face. Overall, I like the idea of turnkey as long as you realize you are pretty much paying full retail price for the convenience. Therefore, your return will likely be much lower than if you had done the work yourself to find a great deal. One side note is always be sure to run your own numbers on a property - never rely on the turnkey company’s math. Good luck!
Your Friend,
