Is your financial advisor really looking out for you?
Many investors question whether their FA has their best interests at heart. But seeking out alternative investments on your own can be scary, especially if the stock market is all you’ve ever known.
So, what can you do to learn more about alternative investments like self-storage, cryptocurrency, ATMs or real estate? And can you achieve financial freedom in just a few years as a passive investor?
Spencer Hilligoss is a former technology executive with a 13-year track record building high performing teams across five companies. He and his wife, Jennifer, achieved financial freedom through passive investing in multifamily and other alternative asset classes.
Today, Spencer serves as Cofounder and CEO of Madison Investing, a platform that helps busy professionals generate passive income through vetted real estate investments.
On this episode of Financial Freedom with Real Estate Investing, Spencer joins Garrett and me to explain how he educated himself around alternative investments like mobile home parks, data centers and multifamily syndications.
Spencer discusses the framework he and Jennifer created to make good investment decisions, describing what they look for in a deal and how they vet an operator.
Listen in for Spencer’s insight on breaking into a new asset class and find out where he sees opportunities for investors in 2023 and beyond!
Key Takeaways
How Spencer got into passive investing in real estate
- Burned out after 13 years working in tech
- Bought local rentals for passive income
What inspired Spencer’s shift to multifamily syndications
- Realized no such thing as fully passive rental
- Devoured 400+ podcasts in 18 months
- Concluded cashflow is key to de-risking life
How Spencer overcame fears re: alternative investments
- Created framework, deal must meet criteria
- Assess operator, market and business plan
5 things Spencer and his wife look for in an operator
- Track record (including failure response)
- Approach
- Team
- Communication
- Values
Spencer’s process for vetting multifamily operators
- Get face-to-face on Zoom or in person
- Build rapport and demonstrate seriousness
- Explain WHY behind questions
Some of the alternative investments Spencer has explored
- Turnkey rentals
- Self-storage
- Mobile home parks
- Medical office
- Crypto
- ATMs
- Industrial
- Data centers
- Multifamily
Spencer’s insight on the pros and cons of turnkey rentals
- Property manager and tenant built in
- Turnover kills financials
- Tenants can be hard on property
Spencer’s process for breaking into a new asset class
- Set goals for money
- Look at fundamentals of cashflow vs. growth
- Explore tax benefits
Spencer’s advice for aspiring passive investors
- Worry less about exact timeline
- Set goals and start taking action
Where Spencer sees opportunities for investors in 2023
- Discounted/distressed commercial real estate
- Debt funds
Related Articles
First Steps Passive Investors Need to Take
Create Your Vision Map for Financial Freedom as a Passive Investor
What Kind of Mindset Do I Need to Have as a Passive Investor?
Connect with Spencer Hilligos
Connect with Michael Blank
Apartment Investor Network Facebook Group
Email [email protected]
Resources
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Purchase Michael’s Syndicated Deal Analyzer
Access Michael’s Free Resources in the Freedom Vault
Review the Podcast on Apple Podcasts
Financial Freedom with Real Estate Investing by Michael Blank
Spencer on Financial Freedom with Real Estate Investing EP186
