Ryan Parsons, Heritage Capital USA, joins Wendy, Bill, and Jonathan in today's show.
Education for how to look after your wealth, how to handle Back Swan events and how to grow your wealth is constant. If you take your eye off what's happening, you risk losing your wealth.
Heritage Capital USA members have worked hard to earn their place in the Mile Marker Club, and gain exclusive access to their unique deal flow. These families trust Heritage Capital USA. These families depend on us. That’s why they vet deal operators just as carefully as they vet deals, and why you, as a deal operator, will have to work hard to earn their trust, to earn their investment and to create for them investment value in your company.
https://www.heritagecapitalusa.com/
Heritage Capital USA began over 20 years ago with Ryan Parson seeking alternative investment opportunities for himself and his family. Though the family has grown, the process has not. Nor has the primary goal: to help family members efficiently create and protect generational wealth.
Ryan and his family continue to invest in many of the deals offered to Mile Marker Club members. It’s this notion of being “down in the trenches” as a group – that our members never have to go it alone – that makes the combination of the Mile Marker Club and Heritage Capital USA so special. Ryan and his team truly put their money where their collective mouth is, and members appreciate that.
Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground up Construction Loans" for investors only in NC, SC, GA, VA and TN (some areas of FL, as well).
As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.
-----------------------------------------------------------Heritage Capital USA members have worked hard to earn their place in the Mile Marker Club, and gain exclusive access to their unique deal flow. These families trust Heritage Capital USA. These families depend on us. That’s why they vet deal operators just as carefully as they vet deals, and why you, as a deal operator, will have to work hard to earn their trust, to earn their investment and to create for them investment value in your company.
https://www.heritagecapitalusa.com/
Heritage Capital USA began over 20 years ago with Ryan Parson seeking alternative investment opportunities for himself and his family. Though the family has grown, the process has not. Nor has the primary goal: to help family members efficiently create and protect generational wealth.
Ryan and his family continue to invest in many of the deals offered to Mile Marker Club members. It’s this notion of being “down in the trenches” as a group – that our members never have to go it alone – that makes the combination of the Mile Marker Club and Heritage Capital USA so special. Ryan and his team truly put their money where their collective mouth is, and members appreciate that.
Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground up Construction Loans" for investors only in NC, SC, GA, VA and TN (some areas of FL, as well).
As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.
Bill Fairman (00:04):
Hi everyone! Welcome to another show with Bill, Wendy and
Jonathan. So, we are part of Carolina Capital Management. And before I get
started, make sure you like you share, you subscribe.
Wendy Sweet (00:16):
Thumbs up.
Bill Fairman (00:17):
You do the thumbs up thing. Any information that you need
to know going forward. www.CarolinaHardMoney.com.
Wendy Sweet (00:23):
Tell all your friends.
Bill Fairman (00:28):
We are happy to have Ryan Parson of Heritage Capital.
Listen, he has so many different entities. I don't even know which one he does.
Wendy Sweet (00:39):
However, he is a dear friend.
Bill Fairman (00:40):
He is a wonderful guy. He is a trained financial planner, correct?
Ryan Parson (00:47):
That is right. We have a little bit of experience, Bill,
with a few things called financial planning, I guess. At least that is what
people would say we do.
Bill Fairman (01:00):
Ryan runs several funds and we will get into those later.
But before we get started with any kind of fun talk, we will be talking about
funds.
Wendy Sweet (01:11):
Disclaimer, disclaimer, disclosure.
Bill Fairman (01:12):
We are not selling any securities. This is education
purposes only. If you invest in any fund, there is risk involved with any
investment. Make sure you consult your financial advisor, and/or attorney, CPA,
whoever you trust. You must read the PPM or your prospectus. Your mileage may
vary. Okay. So, thank you so much for joining us, Ryan.
Ryan Parson (01:41):
It is great to be here with the three of you. I appreciate
the invitation to join your podcasts here and I, you know, I think back to as,
as long as uh, you know, bill and Wendy that you, you, I know him, the two of
you and Jonathan over the last several months, I've gotten to know you since
you've joined the Carolina Capital here. It's been, you know, really an
interesting journey when you look back really the last decade and these
financial markets and you're, you're right bill, we, while we manage a lot of
our own funds, it really is what we, what we do with investors. So at mile
marker club, but that is really trying to help all of us as high net worth
investors stay high net worth investors, especially when you have alternative
investments, which I know are, you know, obviously you too run a great funds
and the alternative investment space, we're, you know, solely focused on
alternative investments.
Ryan Parson (02:41):
And when you've decided to as an a high net worth investor
and maybe for purposes of discussion today we kind of quantify that and puts
you know, three to $30 million net worth investor up to maybe give some context
here. When you're in that space and you've decided to take full control back of
your wealth, I E are not abdicating it to wall street, you're not abdicating it
to the New York stock exchange. You're investing in funds like what you have at
Carolina capital or what we have at you know, heritage capital USA for example,
an alternative access point and the alternative investments, although that's
namely real estate too. And so the, the, it seems to be the shift, you know, as
we are talking about this today, it's been such a great bull run really the
last 11 years. If you think back to 2008 when you, you know, when do you and I
were just talking about this last, I think, I believe all three of us were
talking about this last weekend at the freedom founders mastermind.
Ryan Parson (03:45):
We did. I did it. That's exactly right. Is that, you know,
we all became pretty wealthy this last decade, including the traditional
markets have been good to those investors, which is the bulk of Americans
because that's all they have access to. It's been really good and it's created
a lot of multimillionaires. You know, myself included. The real estate market
has done really, really well. But I think as we all talk about in our various
different masterminds and something we certainly talk very heavily with very
succinctly what's with our mile marker club members is it doesn't last the
these markets and you know, we, and probably where we're at here I guess in
March of 2020 are we on borrowed time and or the high net worth families that
we serve, Jonathan, bill and Wendy, there is a very consistent sentiment out
there and my own included the heyday is over.
Ryan Parson (04:41):
And if we're kidding are we be kidding ourselves if we thought,
Oh, this is just going to keep going and keep going and keep going. So that's
really probably the biggest premises that we, we are operating from today
inside of the type of wealth strategy as we do. And have been working on, you
know, with our members to stay financially free in the end, and continue to
grow it certainly to the specification of the family's wealth. But this idea of
staying financially free is really, really a big deal. You know, I just had a
tailor who works in our membership engagement department. I was just talking
with her earlier this morning and she said, Ryan, have we been getting a lot of
calls about, you know, the stock market doing its, you know, gyrations, you
know, the, in this Corona virus that you know, is certainly a big buzz.
Ryan Parson (05:31):
And I don't mean to diminish it by any means cause it is
obviously real and it's impacting families very directly in some cases really
from a devastation perspective. But I said, no, Taylor, we haven't gotten one
call from our members. And, and she's just said really? And I said, well right.
If we've been hopefully doing our jobs well through our training and education
platforms and our planning platforms and being able to constantly see the
wealth unfold and advance that happening. You know, no one certainly would have
predicted the Corona virus as we've all come to know it today. But you know, as
our, as our good friend Mike big Mike talks about, you know, the black Swan
event here is that, you know, you generally when you are an alternative
investor and you've taken back the control to plan your own wealth, you have to
build in some degree of what we call investment fluctuation reserves for the
completely unknown.
Ryan Parson (06:31):
And you know, as it's unfolding in front of all of us in
real time today, you know, that unknown and you know, happens to be the
coronavirus. And so it is unfortunate and as horrible as that is, it really is
a stark reminder why we, especially as alternative investors that have taken
back and wished to have control over our wealth. If we don't engage in some of
these, you know, really important wealth strategies and build those into your
model and your family investment policy, black Swan events like this can be
more devastating than just you know, the, the physical health concerns and you
know, the economic concerns it will harm your portfolio and you know,
potentially have to, you know, cause your financial independence to evaporate
and you know, have to go back to work. And that's a big, you know thing for our
mile marker club members is that, you know, they're largely already financially
independent or are very close to being financially free and times like this,
our stress testing it to make sure we can all stay financially free.
Ryan Parson (07:39):
And that's really where I see a lot of this going. If I
look at, you know, what the next decade might look like, hopefully not a whole
decade of a downturn or complete volatility, but just this, this shift in the
markets as we're seeing. And so bill, I think that was one of your questions
kind of at the beginning of how we do and help a family create that family
investment policy to help manage or help give insights in terms of then what
types of alternatives and access points of those alternatives seem to make
sense based on, you know, their specifications. So those are probably the, you
know, right? It's kind of at the forefront of the things that are on our
members' minds of keeping going. Cause if you are trying to figure it out now,
Oh my gosh, can I stay financially free when we're having this type of market
tribulation. Now is not the time to ask that question. If you have a plan for
it, you are already too late. That is exactly right. And that is, you know, why
even all of us as fund managers and Bill and Wendy, you guys do a great job. I
know communicating with your investors and your Carolina Capital Funds is, we
are always talking about what we see coming down the pike. As best as we can,
as you said so eloquently, Bill, your disclaimer, which is absolutely true.
None of us have a crystal ball. You know, we are just doing the best we can to
try to stay as best ahead of these curves within our area of expertise that we
all have and really as fund managers what we have to do for our fund and to do
it and working in the best interest of our fund and all of our investors in our
respective funds.
Ryan Parson (09:19):
So too, is it incumbent upon us as each an individual
investor to run our own wealth like we would as a fund manager. In other words,
what you have to run your own wealth at a professional standard. Yet, it is
extremely difficult still today. You know, just part of why we do what we do
because I could not find it even for my own wealth and our own family too, you
know, to go find the who is the wealth, you know, the financial planner and
using traditional speak that can help us with alternative investments. And all
of us know that really doesn't exist. But yet we also know we don't want to
just advocate it to Wall Street either. So you know, running your wealth like a
business and like a, you know, we would as, as fund managers, you know, at a
fund level, our wealth requires that too.
Bill Fairman (10:06):
Well this is part of the reason that we even do these
podcasts and these video series is that there's very limited access to this
space for the general public. It's unbelievable how many people don't even
realize you can self-direct your own IRA and get into these alternative
investments. And you were saying earlier how one of your team members is asking
you, you know, are you getting any phone calls about this? And you're like, no.
And it's because you have educated investors and you do an excellent job of
educating them. Tell me about, and by the way, that helps your stress level
because you're not having to field on these columns. And the other thing is,
you know, your investors aren't stressed about it because they know the path
that they're on. And these turbulent times in the stock market really aren't
going to affect them. Now they may have some allocation still in the stock
market, but it's not their total portfolio. Talk about how these events you,
you put on where you're educating or at least giving them the opportunity to
come in and learn if they want to.
Ryan Parson (11:19):
So that idea bill that you're bringing up about, you know,
being educated is really a critical, critical piece. Frankly, I think it's true
for every American, whether you've gotten a $10,000 net worth or you know, a
$10 billion net worth that education and understanding first and foremost,
really nobody cares more about your money than you do. And the funny, your
financial planner doesn't, your CPA, your banker, your attorney, your stock
broker, your, nobody cares more about your money than you do. And I think
that's a very common mistake that we're taught to believe that, Oh, you know,
turn it over to the stockbroker lecture 401k plan people, you know, they're the
experts. And while at some level that's true. What we have to remember, you
know, over in most markets it's a little bit higher right now because the stock
market has created multimillionaires. You know, just because of the increase in
the valuation, but typically less than 5% of Americans have more than a million
dollars of net worth and let alone to sustain $1 million of net worth over a
long period of time.
Ryan Parson (12:29):
It's just part of our education system in this country is
taught, you know, and by the way, we're taught not to talk about money, which
is why I love this podcast that you two are doing. It's, you know, it's not
taboo to talk about money and it's what we can all do to help each other and
support each other and learn. So this idea of education bill is very near and
dear to our hearts and realizing that there is not a one size fits all approach
to wealth. Well now traditional financial planning leads us to believe that you
go to the stock broker and they ask you a couple of questions. Say they say
here, do this. And it's basically one of three models is what it boils down to.
There's really no customization to it. That's not self directing by the way.
Ryan Parson (13:21):
And you know, I've got a story about that that I'll share
with you, I, but this idea of talking about wealth and education is really,
really critical. I know bill and Wendy, you along to several masterminds. I do,
you know, we are in masterminds together where you're constantly talking about
this and sharing. And if you're a high net worth family today and you know,
going to the stock market or traditional investments, bank CDs, maybe
annuities, those types of things, kind of those traditional products, if you've
made a conscious decision, you know, that's not for me, your very first step is
being able to get educated and not just, it's not a onetime thing. School is
never out of session, you know, cause otherwise if this moment you take your
eye off the ball, you're going to lose your wealth. It's just how the game is
rigged, so to speak.
Ryan Parson (14:11):
And so therefore it's incumbent upon us. And bill, I think
what you're referring to our mile marker clubs, symposiums where you know, our
existing members get to come together and we're talking about and teaching, you
know, these real elements. Does your, you know, whether it's this, these black
Swan events, you know, the tax laws, we've seen more tax law changes in the
last 24 months. Than I can remember of anytime that's directly impacted us,
whether it's self directed, IRAs, distribution rules, beneficiary rules, so on
and so forth there. And those types of things are really, really critical to
understand that. And you know, part of, you know, corporate America days before
I hit my financial freedom now I guess almost a decade in that go go, thank
God. And you know, it's still a still there. You know, I got out of corporate
America and you know, a decade later as I talked to some of my friends, if you
will, back, you know, from that era of my life and talking about self-directed,
it's so interesting and this is true across the board that, you know, when
people say, Oh, well yeah, I self-direct my IRA, you know, I can pick any stock
off the New York stock exchange.
Ryan Parson (15:25):
That's their idea of self directing. And I'm like, no, no
nos, self-directed as we know it, as financially free, high net worth investors
know it go, yes I can go invest on the stock I want to, but I can also invest
in real estate. I can invest in private equity funds. You cannot call your
stock broker in truly self-directed cause they're going to say, no, no, no, no,
no. You can't do that. Self directed the traditional investment industry
adopted self-directing and put their definition on it in response to what we
all know is a true self directed IRA. And so that just that, that understanding
of what self directing your wealth is is still vastly unknown, you know, in the
mass, the marketplace as a whole. And you know, frankly with bill and Wendy, you'd
soon certainly know my own story about it when I, uh, you know, hit my
financial freedom.
Ryan Parson (16:22):
I left corporate America again almost a decade ago now was
I had a 401k and I was with my employer for 19 years and being the good soldier
and putting the max amount into the 401k, getting my company match thinking,
woo, go, you know, money. And all this and that. And you know, I was young and
so I was, you know, investing it, investing it aggressively and whatever, you
know, traditional funding into planning says is an aggressive portfolio. And
after 19 years, the day I walked out of the door and could truly self-direct
it, bill, I didn't have one more penny to roll out of my 401k than I had put in
all of those years. More than a decades worth. Wow. Not one more penny you
guys. And I wasn't surprised. I wasn't shocked. I wasn't even mad at that point
cause I knew what was happening. And that's been, you know, again, almost a
decade ago now.
Ryan Parson (17:22):
And then one of the biggest catalyst towards financial
freedom. And remember guys, traditional financial planning says, well if you go
long go the long term, you're going to be okay. And you know, we as fund
managers talk about that with our passive private investors too. You know,
we're investing for the long haul. It just has a completely different
connotation because the long haul for me, you know, 15 plus years did nothing
for me. Right? It did absolutely nothing. So I think the lesson there for me
was yes, I was passive. Yes, I was for the long haul. Yes, I had turned it over
to the supposedly experts. I did everything except I wasn't watching it. I was
not organized at all to really know what I was investing. I was not organized
at all in such a way to be able to really understand, Hmm, what if I don't want
to wait until I'm 65 to actually become financially free?
Ryan Parson (18:23):
Because of course everyone tells it you gotta go to 65 and
I never got to stop to really ask myself and cause therefore I wasn't watching
it. And that was really what stemmed what we know today at mile marker club and
what we teach at our symposiums. Bill, what we, Wendy, you heard me talking
about this and a lot of different contexts and venues is what we call wealth
organization. And truly, you know, being organized with your wealth, especially
with your alternative investments that you have to know the data. You've got to
know your tax basis. By the way, I'm not a CPA. I don't even play one on TV.
I'm not a tax expert. But you know, if you're not, what I have learned a little
bit about taxes is that my CPA's already telling me what already happened, I. E
last year. It's not about looking forward.
Ryan Parson (19:16):
You know, they, they can't, no one can really ever tell
me, well what, you know, how does this really play out? Especially with
alternative investments because the traditional advisory, the traditional
planning space can't spell alternative. It can't spell real estate the way we
spell it right? And the way we control and once, so that's a big part of what
we teach and provide the tools to become really well organized to understand
the confines of your wealth so you can make new forward looking decisions,
right? And try to anticipate some of your taxes ahead of time and have more of
a plan to then go back to your other advisors with and say, here's what we're
thinking, here's what we're doing. Here's some of the numbers that we've
generally run. Now, what do you think, you know, in terms of this, so we're
always thinking about planning and being organized with living our own best
life.
Ryan Parson (20:10):
You know, in the, you know, looking through the
windshield, not looking through the rear view mirror, right? So that's a, you
know, a big, you know, a big part of what we teach in the, in the, you know,
trying to spread the message as best as we can. And you two have been working
with alternative investments and private investors as long as I have. It's not
for everyone. And what I've learned a little bit unfortunately is that it's not
for most people. Most people are not going to do this because the traditional
way of thinking has got such a strong hold on them. They're never going to step
out. And it's okay. It's not for everyone, but it can be for anyone who wants
it. And anyone who realizes that abdicating the wealth is a plan for no
financial freedom. And you know, when the you, you shared at the freedom
founders mastermind just last weekend at your talk, which was amazing.
Ryan Parson (21:13):
And I, I didn't know some of those details, but it's a
very powerful story that you shared to go, you know, this stuff was happening
around me and I wasn't ready for it. Right. And you know, that was so powerful
just for me to hear that just even a couple of days ago, Wendy, to remind me
what is my why and what is my purpose? You know, getting financially free is
one thing. Staying there is something completely different, but I'm grateful to
be financially free, but my why is so much more about helping others, you know,
get there and stay there. Assuming they're willing to put the time and the
energy and the effort towards it. And you know, so my why is really rooted on
that of abundance, which was another big a talkie you've done along the way,
Wendy, that is so powerful and I hope while you're in a whole audience gets to
hear you share some of those powerful and very potent stories because
Ryan Parson (22:11):
when you know, you come with the mindset of abundance and
just and share, share, share, which we love to do around here. Maybe to a fault
sometimes is that it's the best way that I've learned to help keep all of us
who want to truly be financially free and you know, stay financially free. You
know, in our, in our good friend, you know, Dr. Phelps who runs freedom
founders, talks about his other elements of freedom, you know, of time and
health. But starting off financially free is, you know, a big first step and
then making sure it allows you to get the rest of your freedoms that you want
to be. And I, I've learned to do that bill through being very well organized.
Understanding that advocating to wall street and not staying on top of your own
money is a plan of disaster. It very rarely truly works. And so helping as many
other people I experienced what I have been the good and the challenges and
it's, you know, it's hard to say, you know, 401k's but that's my experience.
That's been my real life experience. So that's why I get motivated and stay up late
at night and get up early in the morning to talk about this and share my
experiences to try to help others, you know, live their best life.
Bill Fairman (23:32):
Yeah. A 401k is still better than doing nothing. And it
also depends on the timing. You're getting free money from your employer. So
are you telling me that you had, you got nothing more than what you put in and
your employer or just you?
Ryan Parson (23:51):
Great question bill. I didn't have anything more in there
than what I had contributed over 15 years worth. But for my employer
contributing and you know, paying the cost of the fees of the plan itself and
you know there's always going to be Feeser I would've lost money.
Bill Fairman (24:12):
Wow. Okay. All right. That said, what about these
companies that offer a 401k but there is no contribution from the employer. So
why I'm even bringing this up, you've discussed how difficult it is for some
people to get into our space because it's not traditional, it's not the way the
herd runs and you know, you start talking about it and then you typically have
the normal amount of naysayers in your circle of influence and you really have
to start surrounding yourself by people that are more apt to look outside the
box and inside the box. Otherwise you're just going to stay in that backing up
savings and not really saving anything. And there's, again, if you're getting
free money, do the 401k. I wouldn't max it out. I would take my additional
money and put it elsewhere. But if you're getting free money, and again, it's a
timing thing. If, I can tell you if you were in a 401k in the last five years,
you've made some money, but if you didn't move it into something cash within the
last, you know, before the last few days and all that, a lot of that was wiped
out. I mean, it's still a head from the last five years, but it could easily
drop away. And notice, is it better to match that? not to even have that then
Ryan Parson (25:33):
Well, look, it's a very legitimate question and quote
unquote free money. Nothing's free by the way, but are employers making some
sort of contribution into it? It's probably not a bad thing, but it probably,
if that's a good thing, it's a very much a good thing, you know, to get that,
that additional contribution dollars. But the bigger issue is really exactly
how are you managing it. And you know, most 401k plans don't let their
employees take the money out while they're still working in inservice. And
that's all part of the contrived system and so on and so forth. But the bigger
issue, you know, our employers don't want us to be too wealthy because we won't
work, most people won't more. And also, you know, when you actually get
financially free and you can truly call your own shots and you're like, why?
Ryan Parson (26:30):
Why would you do that? But, but the bigger issue is, is
that you have to have your own life's purpose and you have to be able to
clearly know what your why is and why are you doing things, you know, and my,
you know, my why's for leaving corporate America are long, very long list, you
know, for all whole lot of reasons, but because it just didn't fit in with my
life of, you know, living out here in Colorado and traveling freely across the
world, you know, when I want to and truly being able to surround myself with
the exact people I want surrounded by myself. Exactly. My immediate team here
at mile marker club are all handpicked, hand selected, our masterminds, you
know, I want to personally select who I'm around and nobody else. And I know
that might sound a little bit selfish, but it's really important for our
freedoms because from an investor's perspective than just making the decision
to go to alternatives or some portion of your wealth into alternatives, you
know, we get the, the, the educate and making that decision is kind of the
first step of that.
Ryan Parson (27:35):
And then keeping your skidding yourself and keeping
yourself educated as another thing. But you know, I'm sure this happens to you
guys all the time. It does with our own in our own family of funds too. You
know, Ryan, what should I invest in and we're not investment advisors, we don't
get, we're not registered investment advisors, we don't give investment advice,
right? You have to understand is what do you need and what works and necessary
for you. And we've got, you know, some ways to do that through our own
experiences and you know, through the experiences of our other really
sophisticated mile marker club members that we can benchmark against. But it's
really as an investor, being able to be educated and clear with your deal
sponsors what you need and why you need it. Because then otherwise every deal
is going to look like a good deal. And it's the shiny objects and all. And it's
frankly at the end of this bull run, if we're not already there, both in the
real estate and the Altspace and the traditional markets is that a lot of that
wealth is going to evaporate because the investors that haven't kept themselves
in school, so to speak and surrounded with the right community of other
successful investors, they miss a key thing about selling high and buying low.
Ryan Parson (28:59):
Yeah. And you know, we're not going to get into the whole
thing of timing the market. But you know, a classic example in real estate, and
Wendy and I've been talking about this for years too. I mean, we've all been
buying real estate for, you know, nearly two decades now. And especially for
that that we bought in 2009, 2010, 2011 those were bargain basement prices of
single family homes or multifamily or commercial, you know, whatever type of
real estate. Not all types of real estate, but you know, the kind of the, the
classical, the single family homes. Well, you're fast forward a decade later to
2020 those properties, the market has given a significant appreciation in those
assets and our reds while to have gone up, certainly haven't gone up at the
same pace. You know, as a educated and well thought out and well planned in
alternative investor.
Ryan Parson (29:56):
A lot of us have been selling those assets because yes,
could it have kept going or could it keep going up? Yes. The reality of it is
were harvesting the gains and you know, we've got other plans in place and
there's nothing wrong with that. But most investors, especially in the
traditional markets, you know, when we were talking about 401k plans there,
they never sell. They watch the ride up and everyone gets excited. oh it's
going to keep going. It's going to keep going. Well, we know it's not. And but
the same applies with alternative investments too and you too deal with it in
your funds. You know, if, if the market has given us some stuff beyond just our
value add that we purposely set out to do with the asset, sometimes you've got
to take those gains. And not just watch it go the other direction.
Ryan Parson (30:46):
Right. And so I think, bill, you're to your question
about, you know, how do investors do that? They, they've gotta be willing to
take control and then they've gotta be willing to, you know, architect a plan
that gives them the clarity that gives them the confidence and gives them the
can do this, especially when you're with a community of other investors who are
also doing it and following a successful path. And you know, going against what
the normal grain is. I forget the word you used there, bill, but the, it's
going against the grain least running with the herd. Thank you. You know, you
know, I guess we can all argue we all run with a herd too. We just run in a
herd in a different direction.
Wendy Sweet (31:38):
It's a better herd too. You know, I liked the way you
talked about the shiny object syndrome that people have and truly, you know,
when you're looking at investments and it looks like it's too good to be true,
it most likely is, you know, in that condo in Belis may not be the best
investment for you. You know, it sounds sexy, but you know what's really going
on there. It's you, you gotta be realistic with what you're doing. Yeah. So
some people, you know, they like these alternative investments but they kind of
get crazy with it and they don't, they're not thinking, Hey, if I lost this
money, would it matter? You know, if you can invest in that and you, the answer
to that question is no, it wouldn't matter if then do it, but it should matter.
Ryan Parson (32:26):
Well that's right Wendy. And there is, you know, it's back
to having that plan and not just a cookie cutter stamp organized. Exactly. And
knowing what you can withstand seeing that. Well, what if I lose that? I mean,
I, I'd like my, some of my venture capital stuff, it's, you know, out there
it's risky, but some of it's just, you know, it's fun and it's interesting and
you do that. Does, you know, is the core of my real estate portfolio and my
income producing real estate portfolio is still very much intact. That keeps me
financially free, keeps me sleeping very peacefully at night. You know, those
cores are there and you know right now with where we're at it look, you know,
deal sponsors, alternative investment deal sponsors come out of the woodwork
all day long and art, you know, your guys is inbox, my inbox are and you know,
our respective investors or mile marker member's inboxes are getting delusion.
Ryan Parson (33:24):
You know, it just inundated this and it makes it look, you
know, and, and in this day and age with the, you know, the jobs act that really
changed a lot of the marketing rules back in 2013 has given rise to a lot of
this. And for the, the, the investor that's really not connected to the right
community or truly working with great deals, sponsors that get it, you know,
like you guys do with you, with your funds. Yeah. They're just going, wow, that
looks good. Those returns look good. I'll just go do that without any degree of
what an investment policy is without really conducting due diligence, without
most importantly knowing who you're doing business with. You know, that stuff
takes time. And, and when we're in this age and everyone's got a lot of
capital, everyone's felt a lot of success. We forget that, you know, sometimes
we might make a wrong investment decision.
Ryan Parson (34:19):
I mean, I'm not perfect and in my own IRAs, you know,
I've, you know, deals have not gone the way I thought they were going to and
it's rolling to happen. And if, but if you don't go into this eyes wide open
and have a plan for, you know, the things that aren't going to go right, right.
You will lose it. And that's a common, you know, element that, you know, all of
us as investors, again, no one cares more about our money than we do. And if
you're not organized, you don't have a policy in place, you're, I know what the
outcome is going to be. I know almost 99% certain what the outcome is going to
be and it's not the, ultimately the outcome that we've worked so hard, you
know, for our money to create for ourselves.
Bill Fairman (34:59):
Right. Right. Well said. You know, with, with most of the
funds that we're associated with, the friends in our community, they are more
focused on, you know, keeping that wealth, preserving that capital than they
are chasing yield. And it's funny you mentioned that with all the, and I know
there's a reggae plus I hear advertised on satellite radio on a business news
network and every time I hear it I cringe if you're not making 18 to 21%
return, you're missing out and blah blah blah. Oh God, I wonder how many people
are actually going to invest? They're falling for it. They did. They might make
18 to 21% for a week for a little while.
Ryan Parson (35:46):
Yeah, exactly. And you know, again, do are those deals out
there, they are out there. Could they be completely legitimate? They can be
just how do you know what they are and you know, in the, in the worlds that we
run in, in the worlds that we all play in here, bill, to your point, you know,
when we're so focused on preservation and then, you know, the, you know, predictable
income stream associated with our real estate asset classes, it may not look
sexy, but you know what, my financial freedom doesn't need to be sexy
Jonathan Davis (36:26):
singles, singles and doubles. If you swing to get on base,
you will eventually hit a home run. If you're swinging for the, for the fence,
for the home run, if you're going to strike out a lot. Yeah, he was making a
lot.
Ryan Parson (36:37):
capital rule right there. Yeah, it is. And again, it's not
that I don't have some venture capital in my portfolio because I do and I like
my venture capital stuff, but it's not my day to day, you know, source of all
of my income and, and these scary, well that's right. Yeah. I'm not, I'm not,
I'm good, but I ain't that good. Um, you know, with that. But do I like to, you
know, have some exposure to it? I do. And there's also, you know, something to
be said for realizing that, you know, the higher the net worth we are if you're
in this kind of three to $30 million net worth space. To your point Jonathan,
um, you know, take a $5 million net worth portfolio, well 8% a conservative 8%
returns. I get on a cash flowing real estate deals, whether that's notes,
whether that's equity holdings, where however, the mixes that makes the most
sense for you, there's a lot of money.
Ryan Parson (37:35):
I mean, if it's compounded, it's even better than that.
Right? Yeah, absolutely. And that's, you know, having nearly, almost 20 years
now of working with very successful high net worth alternative investors, that
has been the very common theme that we've ultimately seen. And you know, I've
got to watch it a little bit, you know, with my own family. Certainly how I've
embraced it myself, you know, like this doesn't have to be a double digit
return. We all like bragging about our double digit wins when they actually
happen. Not just on some proformer, some email that says it's going to happen,
but the double digits are for show that consistency is for the dough and that
good consistent, predictable return is where the true financial freedom is
added. So, you know, that's what we, you know, are we where we like to hang out
with a co underwrite and co-invest with, uh, with our members on, you know,
those deals that are, you know, make sense to our specifications.
Ryan Parson (38:37):
You know, the last thing maybe I'll say about it here too
is the communities that we're all a part of, and I'm not talking about the
cities that we live in, I'm talking about our friends are the circles. Our
network exactly is really, really critical because I know for, you know, the,
the sponsors that we work with here at mile marker club and you know, bill and
wendy, you two have epitomized this as really creating and architecting your
deals to your investors specifications. Most times, and this is absolutely true
in traditional investments, we have to take what they give us. And even in most
alternatives, you know, the deal gets put in front of us. You got to take it or
leave it when you're involved in the right communities, the right circles, the
right network. As investors, we get to have influence. And that's part of
controlling your wealth and creating greater predictability of your financial
freedom in the passive cash flows.
Ryan Parson (39:40):
And so, you know, that's a big thing that often gets
overlooked. Cause again, you know, deals have largely been good. The market has
corrected the errors of, of a lot. And that won't happen. Yeah. It won't happen
forever. And so you want to be with solid quality deal sponsors that are open
and talking and saying to their investors or their members, you know, what do
we need now as we're going? Because what we need now as we sit here in Q one
2020 I can tell you is a heck of a lot different than what we needed even, you
know, three years ago this time and all we were doing. And so that that's,
that's really an important part of not only getting to financial freedom but
staying financially for you.
Wendy Sweet (40:26):
Yeah. So if somebody wants to learn more, I'm sorry, I'm
just going to say I got a first, they only have a few minutes left that you
wanted to talk about just to kind of the space it is before we get out of here
and we want to hear about the mile marker club. Sure. More about that. So, well
thank you.
Ryan Parson (40:47):
I love being able to talk with you and I guess I suppose
maybe some people want to know, you know, and the manners that we actually do
all of this stuff. So you know, what we've really we really strive for, we've
got, you know, I've got a great, great team of fellow fund managers, you know,
that we work with today between, you know, a colonial Capital management with
our good friend Eddie speed, who we all know, Mike Zlotnik with tempo is really
what we've been striving to do these last several years is bringing what we
call a family of funds concept to our investors. In our mile marker club
members. So it's really rooted and you know, one of our funds, the heritage
multi-sector fund is really rooted in the income based alternative, primarily
real estate related assets. So you know, performing rental properties,
performing secured loans to our opportunity or excuse me, more of a blend fund
that combines those income, similar types of income deals, but with a high
growth via longterm deals like, you know, maybe some ground up like self
storage or that type of thing to a true growth fund that's really doing, you
know, large rehabs, longer term growth oriented projects.
Ryan Parson (42:03):
And, and that's, you know, part of what, you know, our
family of funds now are really designed to do today, bill and is we're, you
know, we're constantly evolving again to meet the needs of our investors. You
know, given the market conditions we have to work with. And so those are, you
know, the heritage multi-sector fund one, the new tempo growth fund. I think
bill is what you were referring there to, to allow that investor who likes funds
as an access point. It's not for everyone, but the fund is a, is a strong
access point to get access to several deals and then you know, a nice
diversified manner. So, uh, that growth fund has been that kind of helping us
to round out that portfolio in the family of funds and, and really the, the
mile marker club side of the house is about that wealth education, about that
training. And then you know, for those members that want to go a little bit
deeper and plug in with us from a strategy, coaching and really providing the
tools to help you be your own best wealth and manager in your own best wealth
advisor is really what mile marker club focuses on the needs of that and
helping its members. Like I say, stay financially free through strong
analytics, through strong financial plans, rooted in, you know, an experience
of other high net worth families that have been really experienced.
Bill Fairman (43:25):
Right. How would you like to be contacted? What's the best
way to get in touch?
Ryan Parson (43:30):
I appreciate that gang. You know, our websites are probably
the best way. Milemarkerclub.com is to go out and take a peek at our website.
You can see a little bit more what we do on our deal flow side at
heritagecapitalusa.com. Heritage side of the house is more of our deal flow and
our deal architecture side mile marker club is more of our wealth strategy
side. So our websites are probably a great place for someone to start if
they're interested in us and learning more.
Bill Fairman (43:57):
Well we'll, we'll have links already in place for, for the
viewers. Ryan, thank you so much for all your time, but Hey,
Ryan Parson (44:04):
it's, it's my pleasure. Thank you to what you are all
doing, to constantly be educating and talking about the, the, the vast world of
alternative investments. It's uh, I'm grateful for the relationship with the
two of you. I'm grateful for how serious you take, you know, the management of
other people's money and it's really impressive what you two do, how your
entire organization does that. And I'm just, I'm grateful to be a part of your
circle and to help out and, and serve your investors. However I can.
Bill Fairman (44:31):
Well, we better get his chicken. [inaudible] have a great
day. Thank you folks for joining us on our show. We'll have another one coming
up in about 10 minutes anyway, remember to share, like subscribe, thumbs up,
and then CarolinaHardMoney.com is the website for us. Have a wonderful day.
Thank you.
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