Aug. 12, 2025
119: Don't invest in private equity until you watch this...
Eight years ago, I was stuck in a Manhattan office despite having millions in the bank. Today, I’m unemployed by choice because my portfolio—40% private equity—covers all my living expenses. But before you jump into private equity, you need to know the four benefits that convinced me to invest heavily… and the four costly mistakes that nearly wiped me out.
Transcript
WEBVTT
00:00.311 --> 00:06.754
[SPEAKER_00]: Eight years ago, I was trapped in a Manhattan office despite having millions in the bank.
00:06.995 --> 00:16.779
[SPEAKER_00]: Today, I'm unemployed by choice because the income from my portfolio, which is forty percent private equity, covers all of our essential expenses.
00:17.020 --> 00:19.541
[SPEAKER_00]: But before you rush into private equity like I did,
00:20.061 --> 00:23.804
[SPEAKER_00]: There are four critical mistakes that could cost you everything.
00:24.144 --> 00:29.067
[SPEAKER_00]: I lost three hundred thousand dollars learning this the hard way so that you don't have to.
00:29.407 --> 00:40.935
[SPEAKER_00]: In this video, I'll show you the four benefits that convinced me to go forty percent private equity and the four risks that nearly white me out and how to tell good deals from disasters.
00:41.235 --> 00:43.636
[SPEAKER_00]: Here's what most people get wrong about building wealth.
00:43.936 --> 00:48.898
[SPEAKER_00]: They think they need ten million dollars in index funds to live off of their investment.
00:49.078 --> 00:51.759
[SPEAKER_00]: That's the lie that's keeping high earners broke.
00:52.159 --> 00:56.380
[SPEAKER_00]: Save twenty five times your expenses and withdraw four percent forever.
00:56.580 --> 01:04.243
[SPEAKER_00]: You've heard it before, but that math traps you in accumulation mode for decades while your wealth sits there doing nothing.
01:04.643 --> 01:08.645
[SPEAKER_00]: Let me show you what I mean by telling you about my own journey.
01:08.945 --> 01:11.846
[SPEAKER_00]: I made my first million through three IPOs.
01:12.386 --> 01:14.687
[SPEAKER_00]: Splunk, Yext, and GitLab.
01:15.507 --> 01:28.252
[SPEAKER_00]: At the Splunk IPO, I watched my expected one point five million turn into three point three million in five minutes as the stock price jumped from seventeen to thirty four on the NASDAQ screen.
01:28.532 --> 01:29.273
[SPEAKER_00]: But here's the thing.
01:30.053 --> 01:40.596
[SPEAKER_00]: Even with millions in the bank, I was still trapped in that Manhattan office, disappointing my family every Friday night because my wealth wasn't working for me.
01:40.976 --> 01:43.217
[SPEAKER_00]: The breakthrough came when we moved to Austin.
01:43.857 --> 01:49.918
[SPEAKER_00]: We sold our California home and bought our primary residents plus five single family rental homes.
01:50.218 --> 01:55.920
[SPEAKER_00]: Those five homes generated enough income to cover a good portion of our housing expenses.
01:56.380 --> 01:57.240
[SPEAKER_00]: That's when they clicked.
01:57.480 --> 01:59.301
[SPEAKER_00]: This is how this whole thing works.
01:59.701 --> 02:07.044
[SPEAKER_00]: Assets generate actual income, not just hoping for appreciation, but managing real estate myself wasn't all its cracked up to be.
02:07.285 --> 02:12.447
[SPEAKER_00]: That's when I went deep into the world of private equity and found people that do this.
02:13.227 --> 02:15.308
[SPEAKER_00]: and only this at scale.
02:15.708 --> 02:18.209
[SPEAKER_00]: Get the income without the management.
02:18.609 --> 02:23.530
[SPEAKER_00]: Private equity offers four things that public markets simply can't match.
02:23.950 --> 02:25.751
[SPEAKER_00]: First, real cash flow.
02:26.151 --> 02:28.312
[SPEAKER_00]: Instead of hoping for two percent dividends,
02:28.832 --> 02:36.437
[SPEAKER_00]: My very first private real estate equity deal paid me two thousand three hundred dollars a quarter while growing my original principle.
02:36.737 --> 02:39.039
[SPEAKER_00]: That's real income you can live on.
02:39.259 --> 02:41.220
[SPEAKER_00]: Second asymmetric returns.
02:41.661 --> 02:47.865
[SPEAKER_00]: One multi-family fund I invested in returned two point three X my capital and three and a half years.
02:48.105 --> 02:50.927
[SPEAKER_00]: Your stock portfolio can't do that consistently.
02:51.647 --> 02:58.254
[SPEAKER_00]: skilled operators in niche markets can deliver these kinds of multiples when they know their space.
02:58.755 --> 03:00.717
[SPEAKER_00]: Third tax efficiency.
03:01.398 --> 03:08.525
[SPEAKER_00]: Real estate private equity offers depreciation and cost segregation that can offset your passive income.
03:09.370 --> 03:18.018
[SPEAKER_00]: Last year, I had a hundred and eighty thousand dollars in distributions, but I only paid taxes on forty thousand dollars due to depreciation benefits.
03:18.438 --> 03:21.621
[SPEAKER_00]: The fourth is true diversification.
03:21.761 --> 03:30.609
[SPEAKER_00]: Most high earners and especially tax professionals are overexposed to a single stock or sector, especially those working for equity compensation.
03:30.949 --> 03:34.953
[SPEAKER_00]: I was guilty of this too and had seventy percent of my wealth in tax stocks.
03:35.213 --> 03:40.837
[SPEAKER_00]: Private equity gets you into tangible, cash-flowing assets that don't move with the stock market.
03:41.097 --> 03:44.379
[SPEAKER_00]: Remember, money is made through concentration.
03:44.719 --> 03:47.861
[SPEAKER_00]: It's preserved and grown through diversification.
03:48.301 --> 03:51.083
[SPEAKER_00]: But here's what nobody tells you about the risks.
03:51.564 --> 03:55.106
[SPEAKER_00]: And this is where I personally lost that three hundred thousand dollars.
03:55.226 --> 03:57.307
[SPEAKER_00]: This is my most expensive education.
03:57.607 --> 04:02.531
[SPEAKER_00]: I invested three hundred thousand dollars in what looked like a rock solid ATM fund.
04:03.091 --> 04:24.480
[SPEAKER_00]: great returns experienced operator ten year track record the sponsor had been delivering twenty two percent cash on cash returns like clockwork and trusted investors including somebody who had respected who'd been in PE for twenty years worth thriving with it I started smart with a hundred thousand dollars their minimum
04:25.300 --> 04:33.381
[SPEAKER_00]: Eighteen months in, those monthly distributions were so consistent, so reliable that I got comfortable, too comfortable.
04:33.881 --> 04:39.482
[SPEAKER_00]: I broke my own cardinal rule about position sizing and through in another two hundred thousand dollars.
04:39.702 --> 04:44.083
[SPEAKER_00]: Why spread risk across multiple deals when this one was printing money?
04:44.343 --> 04:45.944
[SPEAKER_00]: Fast forward to twenty twenty four.
04:46.364 --> 04:54.265
[SPEAKER_00]: The operator started mismanaging the business in the entire hundred thirty five million dollar fund collapsed into court proceedings.
04:54.745 --> 04:56.706
[SPEAKER_00]: The monthly payments stopped.
04:57.527 --> 05:00.749
[SPEAKER_00]: I entire three hundred thousand dollars is gone forever.
05:01.269 --> 05:06.032
[SPEAKER_00]: That's when it learned that in private equity, comfort is the enemy of discipline.
05:06.873 --> 05:11.276
[SPEAKER_00]: The moment you break your own risk management rules because something feels safe.
05:12.397 --> 05:14.338
[SPEAKER_00]: That's exactly when you're most vulnerable.
05:14.559 --> 05:22.585
[SPEAKER_00]: Here are four risks you want to fully consider before pulling the trigger on your first or next private equity deal.
05:22.805 --> 05:24.666
[SPEAKER_00]: First, illiquidity.
05:25.347 --> 05:29.470
[SPEAKER_00]: Your money is often locked up for three, five, seven years.
05:29.970 --> 05:32.012
[SPEAKER_00]: And there's no secondary market to bail you out.
05:32.612 --> 05:34.614
[SPEAKER_00]: with that ATM deal I told you about.
05:34.994 --> 05:39.338
[SPEAKER_00]: When that went bad, I couldn't just sell and cut my losses like you can with stocks.
05:39.819 --> 05:42.561
[SPEAKER_00]: I had to watch it die slowly over twelve months.
05:42.982 --> 05:51.449
[SPEAKER_00]: Even worse, many deals have capital call provisions, meaning they can demand more money from you during the whole period if things go sideways.
05:51.850 --> 05:52.731
[SPEAKER_00]: You're committed
05:53.431 --> 05:54.392
[SPEAKER_00]: whether you like it or not.
05:54.832 --> 05:56.212
[SPEAKER_00]: Second, high minimums.
05:56.773 --> 06:01.035
[SPEAKER_00]: Many deals require fifty thousand dollars to a hundred thousand dollar minimum investments.
06:01.335 --> 06:04.136
[SPEAKER_00]: Some funds want two hundred fifty thousand dollars or more.
06:04.857 --> 06:05.857
[SPEAKER_00]: This isn't Robin Hood.
06:06.257 --> 06:10.179
[SPEAKER_00]: You can't just start with a hundred dollars in dollar cost average your way in.
06:10.539 --> 06:13.161
[SPEAKER_00]: This creates a concentration risk problem.
06:13.301 --> 06:21.605
[SPEAKER_00]: If you have five hundred thousand dollars to invest in the minimum is a hundred thousand dollars, you can only diversify across five deals maximum.
06:21.945 --> 06:24.966
[SPEAKER_00]: That's not enough diversification for this level of risk.
06:25.287 --> 06:29.208
[SPEAKER_00]: In a great portfolio, position size is foundational.
06:29.509 --> 06:30.769
[SPEAKER_00]: Third is manager risk.
06:31.489 --> 06:35.851
[SPEAKER_00]: Your return depends entirely on the skill and integrity of the operators.
06:35.951 --> 06:38.693
[SPEAKER_00]: And you have zero control once you wire the money.
06:39.373 --> 06:41.795
[SPEAKER_00]: picked their own sponsor and you could lose everything.
06:42.175 --> 06:43.676
[SPEAKER_00]: I learned this the expensive way.
06:43.896 --> 06:45.557
[SPEAKER_00]: The sponsor controls everything.
06:45.798 --> 06:52.422
[SPEAKER_00]: They choose the properties, manage the renovations, decide when to sell, and handle all of the financing.
06:52.702 --> 06:58.166
[SPEAKER_00]: If they're incompetent and experienced or worse dishonest, your money is gone.
06:58.607 --> 07:00.028
[SPEAKER_00]: And unlike public companies,
07:00.808 --> 07:03.030
[SPEAKER_00]: There's minimal regulatory oversight.
07:03.310 --> 07:05.492
[SPEAKER_00]: The fourth is complexity.
07:06.012 --> 07:09.755
[SPEAKER_00]: These aren't simple investments where you can just look at a stock ticker.
07:09.895 --> 07:21.484
[SPEAKER_00]: You need to understand the business model, the local market, dynamics, capital structure, the renovation timeline, the exit strategy, and the sponsor's track record.
07:21.745 --> 07:25.407
[SPEAKER_00]: Most people wing it because they think, oh, real estate simple.
07:26.168 --> 07:27.169
[SPEAKER_00]: and then they get burned.
07:27.509 --> 07:33.732
[SPEAKER_00]: You're essentially underwriting a business plan created by people you've never met in markets.
07:33.772 --> 07:37.594
[SPEAKER_00]: You don't know using strategies you might not understand.
07:37.874 --> 07:42.076
[SPEAKER_00]: Here's the big lesson after twenty plus private equity deals.
07:42.836 --> 07:49.540
[SPEAKER_00]: Success in private equity comes from having a system, not from luck or trying to find the next hot deal.
07:49.880 --> 07:54.603
[SPEAKER_00]: After those early mistakes, I developed what I call the wealth ops framework.
07:54.963 --> 07:58.805
[SPEAKER_00]: I started treating my wealth like a business where I'm the CEO.
07:59.106 --> 08:02.928
[SPEAKER_00]: This framework has three phases, architecture.
08:03.488 --> 08:07.392
[SPEAKER_00]: where you lay out the blueprint of your wealth management business.
08:07.692 --> 08:12.537
[SPEAKER_00]: You define your financial vision, investment thesis, and strategic goals.
08:12.877 --> 08:13.998
[SPEAKER_00]: The second is build.
08:14.398 --> 08:18.402
[SPEAKER_00]: This is where you construct the essential systems and infrastructure.
08:18.923 --> 08:24.508
[SPEAKER_00]: You'll hire your team and establish the right entity structures and implement your tech stack.
08:24.828 --> 08:25.189
[SPEAKER_00]: run.
08:25.209 --> 08:35.361
[SPEAKER_00]: This is where you systematically deploy capital using specific criteria for operator selection, deal analysis in a curated network.
08:35.742 --> 08:40.207
[SPEAKER_00]: You track performance and optimize like a business with quarterly reviews.
08:40.668 --> 08:42.729
[SPEAKER_00]: Here's what this framework delivered for me.
08:43.049 --> 08:55.536
[SPEAKER_00]: Over the past three years, despite not having a W-to job, my network has grown from six million to seven million while generating fifteen thousand dollars monthly in distributions.
08:55.916 --> 09:03.079
[SPEAKER_00]: It's because I have a system for ensuring I get into the right deals and that they align with my wealth goals.
09:03.520 --> 09:05.901
[SPEAKER_00]: Here's what most people don't realize.
09:06.441 --> 09:08.462
[SPEAKER_00]: We're in a unique window right now.
09:08.943 --> 09:15.046
[SPEAKER_00]: Interest rates are creating distrust opportunities in real estate and business acquisitions.
09:15.606 --> 09:19.749
[SPEAKER_00]: But they're also making the cost of waiting extremely expensive.
09:20.609 --> 09:25.953
[SPEAKER_00]: Every month you're sitting in cash or low yield investments, you're losing purchasing power.
09:26.233 --> 09:34.798
[SPEAKER_00]: This could be the difference between retiring at forty five versus working until sixty five between being trapped by your wealth
09:35.378 --> 09:36.738
[SPEAKER_00]: versus being freed by it.
09:37.198 --> 09:49.161
[SPEAKER_00]: Look, I could have stayed in that safe world of index funds and four percent withdrawal rates, but I would still be sitting in that Manhattan office, disappointing my family every Friday night.
09:49.782 --> 09:55.143
[SPEAKER_00]: Waiting until I was sixty-five to actually live, private equity, wind on right.
09:55.883 --> 10:03.169
[SPEAKER_00]: has the ability to turn your fidelity account balance into meaning, monthly cash flow for your family.
10:03.529 --> 10:17.760
[SPEAKER_00]: If you have one to thirty million dollars in net worth and you're tired of being trapped by your wealth instead of freed by it, I've created a free master class that breaks down the exact wealth ops framework that runs my micro family office.
10:18.100 --> 10:23.545
[SPEAKER_00]: Go to wealth ops.io, but only if you're serious about becoming the CEO of your own wealth,
10:24.165 --> 10:26.807
[SPEAKER_00]: in your areas stop playing the accumulation game.
10:27.067 --> 10:35.813
[SPEAKER_00]: In the meantime, you can check out this video to get a detailed breakdown of what a micro family office is and why it's so powerful.
00:00.311 --> 00:06.754
[SPEAKER_00]: Eight years ago, I was trapped in a Manhattan office despite having millions in the bank.
00:06.995 --> 00:16.779
[SPEAKER_00]: Today, I'm unemployed by choice because the income from my portfolio, which is forty percent private equity, covers all of our essential expenses.
00:17.020 --> 00:19.541
[SPEAKER_00]: But before you rush into private equity like I did,
00:20.061 --> 00:23.804
[SPEAKER_00]: There are four critical mistakes that could cost you everything.
00:24.144 --> 00:29.067
[SPEAKER_00]: I lost three hundred thousand dollars learning this the hard way so that you don't have to.
00:29.407 --> 00:40.935
[SPEAKER_00]: In this video, I'll show you the four benefits that convinced me to go forty percent private equity and the four risks that nearly white me out and how to tell good deals from disasters.
00:41.235 --> 00:43.636
[SPEAKER_00]: Here's what most people get wrong about building wealth.
00:43.936 --> 00:48.898
[SPEAKER_00]: They think they need ten million dollars in index funds to live off of their investment.
00:49.078 --> 00:51.759
[SPEAKER_00]: That's the lie that's keeping high earners broke.
00:52.159 --> 00:56.380
[SPEAKER_00]: Save twenty five times your expenses and withdraw four percent forever.
00:56.580 --> 01:04.243
[SPEAKER_00]: You've heard it before, but that math traps you in accumulation mode for decades while your wealth sits there doing nothing.
01:04.643 --> 01:08.645
[SPEAKER_00]: Let me show you what I mean by telling you about my own journey.
01:08.945 --> 01:11.846
[SPEAKER_00]: I made my first million through three IPOs.
01:12.386 --> 01:14.687
[SPEAKER_00]: Splunk, Yext, and GitLab.
01:15.507 --> 01:28.252
[SPEAKER_00]: At the Splunk IPO, I watched my expected one point five million turn into three point three million in five minutes as the stock price jumped from seventeen to thirty four on the NASDAQ screen.
01:28.532 --> 01:29.273
[SPEAKER_00]: But here's the thing.
01:30.053 --> 01:40.596
[SPEAKER_00]: Even with millions in the bank, I was still trapped in that Manhattan office, disappointing my family every Friday night because my wealth wasn't working for me.
01:40.976 --> 01:43.217
[SPEAKER_00]: The breakthrough came when we moved to Austin.
01:43.857 --> 01:49.918
[SPEAKER_00]: We sold our California home and bought our primary residents plus five single family rental homes.
01:50.218 --> 01:55.920
[SPEAKER_00]: Those five homes generated enough income to cover a good portion of our housing expenses.
01:56.380 --> 01:57.240
[SPEAKER_00]: That's when they clicked.
01:57.480 --> 01:59.301
[SPEAKER_00]: This is how this whole thing works.
01:59.701 --> 02:07.044
[SPEAKER_00]: Assets generate actual income, not just hoping for appreciation, but managing real estate myself wasn't all its cracked up to be.
02:07.285 --> 02:12.447
[SPEAKER_00]: That's when I went deep into the world of private equity and found people that do this.
02:13.227 --> 02:15.308
[SPEAKER_00]: and only this at scale.
02:15.708 --> 02:18.209
[SPEAKER_00]: Get the income without the management.
02:18.609 --> 02:23.530
[SPEAKER_00]: Private equity offers four things that public markets simply can't match.
02:23.950 --> 02:25.751
[SPEAKER_00]: First, real cash flow.
02:26.151 --> 02:28.312
[SPEAKER_00]: Instead of hoping for two percent dividends,
02:28.832 --> 02:36.437
[SPEAKER_00]: My very first private real estate equity deal paid me two thousand three hundred dollars a quarter while growing my original principle.
02:36.737 --> 02:39.039
[SPEAKER_00]: That's real income you can live on.
02:39.259 --> 02:41.220
[SPEAKER_00]: Second asymmetric returns.
02:41.661 --> 02:47.865
[SPEAKER_00]: One multi-family fund I invested in returned two point three X my capital and three and a half years.
02:48.105 --> 02:50.927
[SPEAKER_00]: Your stock portfolio can't do that consistently.
02:51.647 --> 02:58.254
[SPEAKER_00]: skilled operators in niche markets can deliver these kinds of multiples when they know their space.
02:58.755 --> 03:00.717
[SPEAKER_00]: Third tax efficiency.
03:01.398 --> 03:08.525
[SPEAKER_00]: Real estate private equity offers depreciation and cost segregation that can offset your passive income.
03:09.370 --> 03:18.018
[SPEAKER_00]: Last year, I had a hundred and eighty thousand dollars in distributions, but I only paid taxes on forty thousand dollars due to depreciation benefits.
03:18.438 --> 03:21.621
[SPEAKER_00]: The fourth is true diversification.
03:21.761 --> 03:30.609
[SPEAKER_00]: Most high earners and especially tax professionals are overexposed to a single stock or sector, especially those working for equity compensation.
03:30.949 --> 03:34.953
[SPEAKER_00]: I was guilty of this too and had seventy percent of my wealth in tax stocks.
03:35.213 --> 03:40.837
[SPEAKER_00]: Private equity gets you into tangible, cash-flowing assets that don't move with the stock market.
03:41.097 --> 03:44.379
[SPEAKER_00]: Remember, money is made through concentration.
03:44.719 --> 03:47.861
[SPEAKER_00]: It's preserved and grown through diversification.
03:48.301 --> 03:51.083
[SPEAKER_00]: But here's what nobody tells you about the risks.
03:51.564 --> 03:55.106
[SPEAKER_00]: And this is where I personally lost that three hundred thousand dollars.
03:55.226 --> 03:57.307
[SPEAKER_00]: This is my most expensive education.
03:57.607 --> 04:02.531
[SPEAKER_00]: I invested three hundred thousand dollars in what looked like a rock solid ATM fund.
04:03.091 --> 04:24.480
[SPEAKER_00]: great returns experienced operator ten year track record the sponsor had been delivering twenty two percent cash on cash returns like clockwork and trusted investors including somebody who had respected who'd been in PE for twenty years worth thriving with it I started smart with a hundred thousand dollars their minimum
04:25.300 --> 04:33.381
[SPEAKER_00]: Eighteen months in, those monthly distributions were so consistent, so reliable that I got comfortable, too comfortable.
04:33.881 --> 04:39.482
[SPEAKER_00]: I broke my own cardinal rule about position sizing and through in another two hundred thousand dollars.
04:39.702 --> 04:44.083
[SPEAKER_00]: Why spread risk across multiple deals when this one was printing money?
04:44.343 --> 04:45.944
[SPEAKER_00]: Fast forward to twenty twenty four.
04:46.364 --> 04:54.265
[SPEAKER_00]: The operator started mismanaging the business in the entire hundred thirty five million dollar fund collapsed into court proceedings.
04:54.745 --> 04:56.706
[SPEAKER_00]: The monthly payments stopped.
04:57.527 --> 05:00.749
[SPEAKER_00]: I entire three hundred thousand dollars is gone forever.
05:01.269 --> 05:06.032
[SPEAKER_00]: That's when it learned that in private equity, comfort is the enemy of discipline.
05:06.873 --> 05:11.276
[SPEAKER_00]: The moment you break your own risk management rules because something feels safe.
05:12.397 --> 05:14.338
[SPEAKER_00]: That's exactly when you're most vulnerable.
05:14.559 --> 05:22.585
[SPEAKER_00]: Here are four risks you want to fully consider before pulling the trigger on your first or next private equity deal.
05:22.805 --> 05:24.666
[SPEAKER_00]: First, illiquidity.
05:25.347 --> 05:29.470
[SPEAKER_00]: Your money is often locked up for three, five, seven years.
05:29.970 --> 05:32.012
[SPEAKER_00]: And there's no secondary market to bail you out.
05:32.612 --> 05:34.614
[SPEAKER_00]: with that ATM deal I told you about.
05:34.994 --> 05:39.338
[SPEAKER_00]: When that went bad, I couldn't just sell and cut my losses like you can with stocks.
05:39.819 --> 05:42.561
[SPEAKER_00]: I had to watch it die slowly over twelve months.
05:42.982 --> 05:51.449
[SPEAKER_00]: Even worse, many deals have capital call provisions, meaning they can demand more money from you during the whole period if things go sideways.
05:51.850 --> 05:52.731
[SPEAKER_00]: You're committed
05:53.431 --> 05:54.392
[SPEAKER_00]: whether you like it or not.
05:54.832 --> 05:56.212
[SPEAKER_00]: Second, high minimums.
05:56.773 --> 06:01.035
[SPEAKER_00]: Many deals require fifty thousand dollars to a hundred thousand dollar minimum investments.
06:01.335 --> 06:04.136
[SPEAKER_00]: Some funds want two hundred fifty thousand dollars or more.
06:04.857 --> 06:05.857
[SPEAKER_00]: This isn't Robin Hood.
06:06.257 --> 06:10.179
[SPEAKER_00]: You can't just start with a hundred dollars in dollar cost average your way in.
06:10.539 --> 06:13.161
[SPEAKER_00]: This creates a concentration risk problem.
06:13.301 --> 06:21.605
[SPEAKER_00]: If you have five hundred thousand dollars to invest in the minimum is a hundred thousand dollars, you can only diversify across five deals maximum.
06:21.945 --> 06:24.966
[SPEAKER_00]: That's not enough diversification for this level of risk.
06:25.287 --> 06:29.208
[SPEAKER_00]: In a great portfolio, position size is foundational.
06:29.509 --> 06:30.769
[SPEAKER_00]: Third is manager risk.
06:31.489 --> 06:35.851
[SPEAKER_00]: Your return depends entirely on the skill and integrity of the operators.
06:35.951 --> 06:38.693
[SPEAKER_00]: And you have zero control once you wire the money.
06:39.373 --> 06:41.795
[SPEAKER_00]: picked their own sponsor and you could lose everything.
06:42.175 --> 06:43.676
[SPEAKER_00]: I learned this the expensive way.
06:43.896 --> 06:45.557
[SPEAKER_00]: The sponsor controls everything.
06:45.798 --> 06:52.422
[SPEAKER_00]: They choose the properties, manage the renovations, decide when to sell, and handle all of the financing.
06:52.702 --> 06:58.166
[SPEAKER_00]: If they're incompetent and experienced or worse dishonest, your money is gone.
06:58.607 --> 07:00.028
[SPEAKER_00]: And unlike public companies,
07:00.808 --> 07:03.030
[SPEAKER_00]: There's minimal regulatory oversight.
07:03.310 --> 07:05.492
[SPEAKER_00]: The fourth is complexity.
07:06.012 --> 07:09.755
[SPEAKER_00]: These aren't simple investments where you can just look at a stock ticker.
07:09.895 --> 07:21.484
[SPEAKER_00]: You need to understand the business model, the local market, dynamics, capital structure, the renovation timeline, the exit strategy, and the sponsor's track record.
07:21.745 --> 07:25.407
[SPEAKER_00]: Most people wing it because they think, oh, real estate simple.
07:26.168 --> 07:27.169
[SPEAKER_00]: and then they get burned.
07:27.509 --> 07:33.732
[SPEAKER_00]: You're essentially underwriting a business plan created by people you've never met in markets.
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[SPEAKER_00]: You don't know using strategies you might not understand.
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[SPEAKER_00]: Here's the big lesson after twenty plus private equity deals.
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[SPEAKER_00]: Success in private equity comes from having a system, not from luck or trying to find the next hot deal.
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[SPEAKER_00]: After those early mistakes, I developed what I call the wealth ops framework.
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[SPEAKER_00]: I started treating my wealth like a business where I'm the CEO.
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[SPEAKER_00]: This framework has three phases, architecture.
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[SPEAKER_00]: where you lay out the blueprint of your wealth management business.
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[SPEAKER_00]: You define your financial vision, investment thesis, and strategic goals.
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[SPEAKER_00]: The second is build.
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[SPEAKER_00]: This is where you construct the essential systems and infrastructure.
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[SPEAKER_00]: You'll hire your team and establish the right entity structures and implement your tech stack.
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[SPEAKER_00]: run.
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[SPEAKER_00]: This is where you systematically deploy capital using specific criteria for operator selection, deal analysis in a curated network.
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[SPEAKER_00]: You track performance and optimize like a business with quarterly reviews.
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[SPEAKER_00]: Here's what this framework delivered for me.
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[SPEAKER_00]: Over the past three years, despite not having a W-to job, my network has grown from six million to seven million while generating fifteen thousand dollars monthly in distributions.
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[SPEAKER_00]: It's because I have a system for ensuring I get into the right deals and that they align with my wealth goals.
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[SPEAKER_00]: Here's what most people don't realize.
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[SPEAKER_00]: We're in a unique window right now.
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[SPEAKER_00]: Interest rates are creating distrust opportunities in real estate and business acquisitions.
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[SPEAKER_00]: But they're also making the cost of waiting extremely expensive.
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[SPEAKER_00]: Every month you're sitting in cash or low yield investments, you're losing purchasing power.
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[SPEAKER_00]: This could be the difference between retiring at forty five versus working until sixty five between being trapped by your wealth
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[SPEAKER_00]: versus being freed by it.
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[SPEAKER_00]: Look, I could have stayed in that safe world of index funds and four percent withdrawal rates, but I would still be sitting in that Manhattan office, disappointing my family every Friday night.
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[SPEAKER_00]: Waiting until I was sixty-five to actually live, private equity, wind on right.
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[SPEAKER_00]: has the ability to turn your fidelity account balance into meaning, monthly cash flow for your family.
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[SPEAKER_00]: If you have one to thirty million dollars in net worth and you're tired of being trapped by your wealth instead of freed by it, I've created a free master class that breaks down the exact wealth ops framework that runs my micro family office.
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[SPEAKER_00]: Go to wealth ops.io, but only if you're serious about becoming the CEO of your own wealth,
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[SPEAKER_00]: in your areas stop playing the accumulation game.
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[SPEAKER_00]: In the meantime, you can check out this video to get a detailed breakdown of what a micro family office is and why it's so powerful.
