Episode 26: Marcus New - Investing in Tax Efficient Private Equity with InvestX

show Feb 09, 2018

Marcus New is the CEO of InvestX which allows accredited investors to participate in the late-stage of private businesses like Spotify, Dropbox, and Uber. One of the significant challenges is how does one get in on an IPO and more importantly can you invest early in a technology company. They typically invest in these companies three years before there initial IPO. They look for companies with growth, high revenue, and a global footprint. They can be in medical information, big data security, cloud computing and many others in the technology sector.

They have launched two funds one in Canada and the other in the United States. The fund is set for four years, and they typically make investments in 10 to 15 different companies in the first year. They then redistribute the profits back to investors over the years two through four. This structure gives investors a speedy return from these private growth equity investments. InvestX structures their Funds with Tax Efficiency in mind for...

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Episode 25: Gaining Knowledge Rapidly in any Industry or Asset Class

show Feb 05, 2018

So many people inquire how I am able to learn about an industry/asset class. One way is by attending the leading industry conferences. The dominate conference is that of Cambridge House International lead by Jay Martin. Therefore, while in Vancouver I was able to spend time with Jay to let him share more about his company and how you can benefit.

Jay discusses how the Cambridge House company got started as the Diamond Investment Conference in 1993 by his father Joe Martin. He took over the reins from his father in 2010 and expanded the business during the Bear Market. His team works very hard to make things work in one of the worst markets. Their operation is very lean and efficient.

This year they have 333 booths and companies in attendance at the Vancouver Conference. Today they have three different mining and investment conferences each year with one in San Francisco. They have technology conferences as well in Vancouver and Toronto.

He describes the unique challenges in taking...

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Episode 24: An Aussie Real Estate Investor Dominating the US Multifamily Apartment Sector

real estate Feb 02, 2018

Reed Goossens founded RSN Property Group here in the US and has been hitting it out the ballpark.

Reed compares the various real estate markets of the United States with his home country of Australia. He really encourages Americans to take advantage of the many opportunities that are available to those in the United States.

He has focused on second-tier properties in cities where there are strong demographics and productivity. These are places like Texas, North Carolina, and parts of Arizona. He has a background in structural engineering and project management which has helped him build a successful business.

He is involved in several significant apartment building acquisitions. They look for properties that have been well maintained and held for long periods of time in areas with strong demand. They want 90% occupancy and buildings that can get good financing options through Freddie and Fannie.

They keep rents just below market norms and in line with the typical economic...

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Episode 23: The Lancaster Men – Successful Investing like the Amish/Mennonite

show Jan 29, 2018

Gena introduces three amazing men from Lancaster, Pa. They are Peter Zook, Marcus Zook, and Matt Byler. They are all investors in several asset classes and successfully run businesses.

Peter is in the storage and garage manufacturing business, and he works with his four brothers and his father. They each have different roles in the company and various investing strategies. He works in the dispatching and permits side of the business where he coordinates with customers. As an investor, he invests in real estate and junior mining.

Mark works in the office with the family. His primary source of income is from the business. He takes that money and invests in real estate for the tax benefits. He likes the junior mining space as the real estate market is pretty hot. He is also excited about the crypto space.

Matt grew up Amish on a dairy farm; he points out that he only has an eighth-grade education. He now has a trucking business and delivers the types of buildings that the Zook...

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Episode 22: Eric Tait – Financial Freedom Thru Accredited Investing

show Jan 26, 2018

Eric is a physician and is invested in real estate, thru hotels, small apartments, and single-family homes. He is also the founder and fund manager of Vernonville Asset Management. He wanted to diversify his income beyond the stock market. He looks for market problems with which to offer opportunities through teams of competent people. He feels diversifying across asset classes, and geography is essential.

Mr. Tait discusses accredited investing which he learned about from the Rich Dads Guide To Investing. You have to understand these financial terms, risks, and concepts to find where the best deals are located.

Historically doctors are taxed quite high, and most are now employed and thus have no deductions. You end up giving half your salary to the government. He helps people figure out solutions to this issue through LLC’s etc. LLC’s let you move to the right side of the quadrant as investors. There are many tax benefits in this area.

He says, “From day one I...

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Episode 21: Bill Sheriff - Golden Predator

show Jan 22, 2018

Bill discusses the company Golden Predator where he is chairman and his wife is C.E.O. They both work in different parts of the company. He focuses on geology while she handles the corporate affairs. He discusses their Three Aces Project located in the Yukon.

At the project, they have added a lot of infrastructure over the past couple of years including 20km of roads, a bridge, and a new camp. This is to reach areas and confirm the previous owner’s findings. The property has 13 square kilometers of anomalies, and they have drilled 300 holes as part of the exploration.

Mr. Sheriff has two geology degrees and handles the technical details. His wife also works with the First Nation communities in the region. They are a big part of the population where they work, and it’s important to create lasting value. For that reason, they have a very proactive position with these groups to help create business opportunities. He says, “Many of the permitting issues companies...

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Episode 20: Elizabeth Braman - Real Estate CrowdFunding

show Jan 19, 2018

Elizabeth is Senior Managing Director for the real estate crowdfunding company RealityMogul. They match active real estate investors with passive investors who are looking for opportunities. RealityMogul has grown having raised significant venture capital, and they now have 85 employees. Everything they do is done online through their website because it’s easier and cheaper. Plus investors get to monitor their investments and get access to new opportunities. They only work with real estate deals and are not involved in any other market. Their primary investment areas are office, retail, industrial and multi-family real estate.

She discusses two types of accredited investments they offer. These are Private Placements and 1031 Exchange offerings for those investors that want access to deal flows. 1031 Exchange Offerings take advantage of the IRS tax code which permits real estate investors to avoid tax hits at the time of sale. Essentially you can postpone your tax liability.


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Interest Rate Projections for 2018

bonds interest rates money Jan 19, 2018

Last week I wrote a blog about the last decade.  If you missed that, feel free to read it via this link.

So you ask, Gena why are you talking about interest rates again?  Well, because for the past 12 months or more, I have received at least a dozen or more opportunities which have neglected to project higher interest rates in their business plans. 

When I see this it makes me cringe and probably the reason my doctor has cautioned me to be careful about my blood pressure.  Its as if people have forgotten that one of the most important parts of investing is the cost of money which is derived from interest rates.

Please make sure that when you send opportunities for me to invest, please project higher interest rates upon exit.   Don't use the words "value added" just because you are painting the building and installing new windows and doors.  My definition of Value Add is that I will get all my money back and keep the asset via a...

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Episode 19: Bill Trimble - A Seasoned Investor

show Jan 15, 2018

Bill discusses his trading history. He started in the early 1980’s as a stockbroker and then moved into venture capital. Since 1989 he has been focused on the resource sector and other asset classes that are publicly traded. When a trade goes against what you anticipated you should be prepared to sell and cut your losses. He says, “There are great opportunities all over the world.”

He discusses what happened in October 1987 when he learned the hard way about leverage. In a matter of 48 hours, he lost everything that he had made, and many of his clients took losses. To this day he doesn’t use leverage due to the risks involved.

Asset classes are being distorted by large crowds of people with very little knowledge. There remain massive amounts of excitement. Some of this excitement surrounds the cannabis and cryptocurrency markets. He sees similarities between cryptocurrencies and the dot.com bubble. Greed is running rampant, but it could still be in the...

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Episode 18: Laura Stein - The God Mother of Mining

show Jan 12, 2018

Laura Stein is the most amazing woman. I gave her the nickname of “The God Mother” of mining. I have a philosophy that if you want to know about an industry, go find the one who is the most informed and connected. Well, that is Laura Stein. I am honored that she allowed me to spend a few moments interviewing her while in San Francisco. Laura rarely does interviews, so this was a very special treat and once you hear Laura’s story about how she got involved with mining it will make your hair stand up on your arms. Here is just a brief synopsis of what I was fortunate to gather from our conversation.

Laura’s father was originally from Russia near Romania. Before WW2, his family had over a hundred relatives, and after the war, only four remained. Those four managed to escape to Switzerland and then onto Israel. They were able to do so by using gold to bribe the military. As a child, she viewed gold as a safety net and has always had an interest in it.


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