How to Start out as a Non-traditional Investor w/Denis Shapiro
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Jeremy Dyer welcomes Denis Shapiro to discuss the significance of education and due diligence in alternative asset investments, the understanding of tax implications in real estate syndications, and strategies for portfolio diversification.
Denis began investing in real estate in 2012, when the market was just beginning to recover from the global financial crisis. He went on to build a cash flowing portfolio that includes many alternative assets, such as note and ATM funds, mobile home parks, life insurance policies, tech start-ups, industrial property, short-term rentals, and more. He also co-founded an investment club for accredited investors in 2019. Leveraging these successes and the lessons learned throughout his career, Denis launched SIH Capital Group, an alternative investment fund that provides accredited investors with a simplified strategy to invest for passive income.
CONNECT WITH DENNIS SHAPIRO!
Website: https://sihcapitalgroup.com/
LinkedIn: https://www.linkedin.com/in/denisshapiro/
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Importance of Education and Due Diligence
Denis emphasizes the critical role of education and due diligence in investment decision-making. Whether actively involved in real estate ownership or considering passive investment opportunities, he stresses the need for thorough research and understanding of key investment principles to mitigate risks and maximize returns.
Tip #2: Leveraging Podcasts and Other Resources
Denis highlights the value of podcasts and other resources in gaining insights into various investment opportunities. By listening to industry experts and engaging with educational materials, investors can expand their knowledge base and make informed decisions about alternative assets.
Tip #3: Understanding Alternative Investment Opportunities
Denis underscores the importance of understanding alternative investment opportunities beyond traditional asset classes. He discusses the dynamic nature of investment landscapes and advises investors to look beyond past performance, considering factors such as economic trends and market conditions.
Tip #4: Evaluating Real Estate Syndications
Denis debunks misconceptions about real estate syndications, emphasizing the active role investors should play before committing funds. He urges thorough due diligence on operators, market conditions, and investment structures, highlighting the need for proactive engagement throughout the investment process.
Tip #5: Assessing Tax Benefits and Implications
Denis discusses the tax benefits and implications associated with alternative investments, particularly focusing on real estate syndications. He highlights the importance of understanding depreciation recapture and tax implications for limited partner investors, recommending further exploration of tax-related topics for informed decision-making.
Tip #6: Diversifying Investment Portfolio
Denis advocates for diversifying investment portfolios beyond traditional assets, exploring alternative investment opportunities such as real estate syndications, notes, and ATM funds. By diversifying, investors can spread risk and potentially enhance returns, leveraging a broader range of investment vehicles.
Tip #7: Adapting Investment Strategies
Denis discusses the importance of adapting investment strategies based on evolving market conditions and personal preferences. He shares insights into transitioning from ATM investments to private lending, highlighting the benefits of maintaining control and clarity in investment returns amidst changing investment landscapes.
Tip #8: Building Relationships with Investors
Denis emphasizes the value of building relationships with investors and providing transparent communication and support. He shares avenues for connecting with potential investors, such as through his company's website and educational resources like his book, fostering trust and collaboration in investment endeavors.
Tip #9: Avoiding Overstated Investment Claims
Denis cautions against overstated claims regarding investment opportunities, particularly in relation to tax benefits. He discusses common misconceptions surrounding tax benefits in investment deals and advises investors to scrutinize claims and seek clarity on tax implications to make well-informed investment decisions.
Tip #10: Remaining Vigilant in Investment Processes
Denis underscores the importance of remaining vigilant throughout the investment process, from initial research and due diligence to ongoing monitoring of investment performance. By maintaining a proactive approach and continuously educating oneself, investors can navigate complex investment landscapes with confidence and resilience.
