Insider Deal Lessons 2023 Transcription:
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This is the Investor Mindset Podcast. And I'm Steven Pesavento. And for as long as I can remember, I've been obsessed with understanding how we can think better, how we can be better, and how we can do better. And each episode, we explore lessons on motivation and mindset for the most successful real estate investors and entrepreneurs in the nation. I've invested significantly into my own networks to be able to bring phenomenal opportunities to my clients, but also be able to invest my own capital into those kinds of opportunities. So I'm living this this is the reason that I go and attend conferences, and have great advisors and invest my capital into growing myself personally, and it's something that you absolutely 100% can do.
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So I'm just returning from attending two of the largest investment expos in the country. First being one focused on multifamily, the National Multifamily Housing Council, also known as NMHC. This is the largest event of investment brokers, operators and managers in the country, all who are managing institutional multifamily assets. And then second, I went directly to another event called nape, the North American Prospect Expo focused on bringing together the best brokers, operators, and managers in the oil and gas space. Truly diving into the details of what's happening within the energy sector right here in North America, both were phenomenal events full of incredible lessons around what's happening in the market, where the opportunities are, and getting access to some unique opportunities that are typically unavailable others. And with that, I want to share three lessons that I took away attending some of the largest investment expos in the country, with some actions that you can take in order to apply these on your investing journey. So let's get into it first, investing is about having access to insider knowledge, insider knowledge is having a strong understanding of the individual investment classes, strategies and markets that you're going to be investing your capital into. This is understanding the details of what goes into making a great deal, where the risk profiles are, and how operators are able to overcome those risk profiles to be able to create a better risk adjusted return, which is just a fancy way of saying to be able to create a better deal. And for you, as the investor to be able to identify what are those great deals. So as I'm sitting and I'm talking with an operator who has, you know, 10s, of 1000s, of units of multifamily under operations, I'm listening, and I'm hearing some very unique perspectives when it comes to the multifamily space. And I'm able to understand that this individual because of the size of their portfolio, they have some insider knowledge about what's happening in their specific markets. And as a result, now I'm able to use that information when going out and applying it to investments that we're making at Vaughn Finch. So it's very important to be able to understand not only the basics of an investment, which is the baseline of what you need to understand when you're going out and investing passively into an opportunity. But it's also getting extremely deep into the understanding of that asset class so that you can truly identify what is a better deal versus another. And this leads directly into number two, which is insider deals come from insider relationships. And at the end of the day, what we're looking for when we're investing is getting access to Insider deals, because these types of insider deals end up leading to a much higher likelihood of success and getting you to your end goal, whether that be being able to create income, whether that be able to create appreciation and growth, or whether you have some other goal of being able to preserve your wealth and capital, it comes down to having access to deals that are typically unavailable to others and that are better fit towards getting you where you want to go in order to hit your targets. So these insider deals that come from insider relationships, and oftentimes you have to have insider knowledge in order to be able to identify that this deal is really the deal. That's the right fit for you. And so, where do these insider relationships come from? They come from going out and attending conferences. They come from being a part of communities, and really being a part of the industry for a long period of time. And it's through these relationships that end up leading to opportunities that are rarely seen by others. So insider knowledge, when we're looking at understanding insider knowledge, it really comes down to, if you're investing in a multifamily deal, for example, it's understanding the details of that individual market that the property is located in, and the sub market and understanding what the growth pattern looks like and what the expense pattern is in that specific market for that specific type of opportunity, and how the properties are valued there locally. And really, where is the tides turning? What type of things are happening in that local market that are gonna end up leading to an opportunity for great growth? An example is, you know, if you were in Austin, five years ago, six years ago at this point, and you knew that Tesla was looking at moving its headquarters there. And you were able to know that all of these different companies are looking to build different facilities in different areas within that specific market, you would have insider information that would end up leading you to be able to invest in or around those, those new offices or plants, which would allow you to create a much stronger return in comparison with the amount of risk you're taking. And so this kind of insider information is illegal in traditional markets. If you're having and doing insider trading, you're, you're making investments based on knowledge that you know that other people do not know publicly, you're gonna end up like Martha Stewart, you're gonna end up going to jail. But that's what's so beautiful about the alternative asset class as a whole, is that it's truly built with the opportunity to take advantage of that insider knowledge, to be able to know what others don't know, and be able to get better deals, off market deals, better priced, financing, any of these things can end up leading to an insider deal that's going to end up setting up you to be able to hit that target that you're looking for. So the third lesson really comes down to how do you go about getting access to insider knowledge, and insider relationships so that you can start investing in insider deals? Well, this really comes down to paying to play, you're going to either pay with your time, or you're going to pay with your money. So if you're paying with your time, you're diving into books, you're interviewing people, you're learning lessons in order for you to absorb all of this knowledge, and you yourself are going to go out there into that individual market and look to apply that knowledge locally, in order to start being able to connect with insider relationships that ended up leading you to having insider deals, you can absolutely go about doing this taking years or decades in order to build the relationships and the opportunities that end up getting you to that end goal. Or you can invest your capital into great advisors who have access to those types of insider opportunities. So that looks like joining great communities of other like minded investors, who now as a result of being a part of that community, you can get access to Insider deals, you can go and attend conferences, where you're going to meet and be able to connect with these individuals that may have access to these kinds of opportunities that you're not going to be able to see elsewhere. But it's really important if you are connecting directly with those individuals, that you have enough knowledge to be able to vet and understand is this deal one that's actually going to fit my overarching plan. So you can pay to play, you can exchange your time, effort and energy to become that expert yourself. Or you can hire an expert, or work with an expert or partner with an expert by investing into their opportunities, or getting access to their deal flow by joining communities and working with these types of folks. This is exactly the reason why I attend some of the largest investment expos in the country, is because I have been developing and have built that insider knowledge, over a decade of working within the Investment Industry been able to understand and learn well, what makes a deal. What do I like about it? What do I not like about it? What risks have I personally experienced? What experience have I seen others and I've invested significantly into my own networks to be able to bring phenomenal opportunities to my clients, but also be able to invest my own capital into those kinds of opportunities. So I'm living this this is the reason that I go in 10 conferences and have great advisors and invest my capital into growing myself personally. And it's something that you absolutely 100% can do. And this is what you have to decide for you is what is the right amount of time, effort energy that you can put into coming up with and developing that insider knowledge those insider relationships, and what is the best His path towards fast tracking that for your personal situation as an operator owner, somebody who's driving my own portfolio as well as driving portfolios for others, investing hundreds of 1000s of dollars into these communities has been phenomenal for me to be able to bring those opportunities back to those people who know like and trust me. And for you, you'll want to find out what is the best path to success so that you can start investing and actually hitting those targets that you're going after. With all of that I'd love to know down in the comments, tell me how do you go about finding insider knowledge and insider deals that end up leading you to be able to hit your investment goals. If you liked this video, make sure you hit the like button if you don't like it, make sure you leave down in the comments what you don't like and hit that subscribe button if you're just joining us for the first time. Thanks so much and I look forward to seeing you on the next episode. Today's episode is sponsored by von Fitch capital. If you're interested in investing alongside me in the same type of real estate opportunities that I personally invest in, then head over to Vaughn Finch capital and join their private investor network. You can do so at Vaughn finch.com/invest. Join me on that next deal. I look forward to seeing you on the inside.
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