The Point of More Returns Podcast

Episode 13: Real Estate vs. Buying a Business - The battle of the better investment

Episode 13: Real Estate vs. Buying a Business: The battle of the better investment
Welcome to Point of More Returns with your hosts: The Masked Investor and WEALTHfaire. In episode 13 the co-hosts delve into the timeless debate of real estate investment versus buying a business. They explore the advantages of real estate, such as passive income streams and potential appreciation, while also delving into the drawbacks, including the need for substantial capital and market fluctuations. Conversely, the episode highlights the appeal of purchasing a business, citing opportunities for active involvement and potential for larger returns.
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc. before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
Intro – 00:28
The pros of buying Real Estate – 1:52
Obtaining Capital: Ease of traditional financing – 2:20
Real Estate is “Passive Adjacent” – 3:04
Selling the asset leads to a simple exit – 04:25
Real Estate is tangible and has a clear business model – 5:29
The cons of Real Estate – 6:31
Is there a true ease of lifestyle? 7:26
Endless opportunity to improve the business vs needing to find another property – 10:31
Returns from Real Estate are (generally) less than small business acquisition – 10:42
Additional pros about (SMB) Small, Mid-Sized Businesses 
Ability to Add value – 13:43    
Freedom to create a deal structure that works – 15:20
Creative control – 16:19
Cons of buying (SMB) Small, Mid-Sized Businesses 
The skill set required and level of risk involved – 17:00
Discussion about recourse vs. non-recourse loans – 18:06
This is NOT financial advice, speak with a licensed financial professional – 22:10
Closing – 22:57   

Episode 12: Grifter’s Gimmicks: Know your Metrics, Save your wallet

Episode 12: Grifter’s Gimmicks: Know your Metrics, Save your wallet
Welcome to Point of More Returns with your hosts: The Masked Investor and WEALTHfaire. In episode 12 the co-hosts break down the financial metrics that matter. Oftentimes the marketing from fake gurus tout large numbers of success or performance metrics that mean nothing to grab your attention. We identify the metrics that matter and the ones that do not. 
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc. before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
Episode Introduction - 00:30
Why this episode is important - 1:23
Gross Rents vs. Cash Flow - 2:22
Total Portfolio Performance: 4:34
KPIs, What is that - 6:01
Real Estate Key Metrics - 6:05 
Book with financial ratios for real estate: 11:55 
Benchmarking to an Index - 12:53

Episode 11: Fake Financial Guru Red Flags: Our thoughts on Scammers and Grifters

Episode Description
 
Episode 11: Fake Financial Guru Red Flags: Our thoughts on Scammers and Grifters
Welcome to Point of More Returns with your hosts: The Masked Investor and WEALTHfaire. In episode 11 the co-hosts talk about the landscape of online financial education media outlets and methods to protect yourself. Identifying red flags and doing research on individuals you intend to do business with are a few best practices.   
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc. before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
Episode Introduction - 00:20
Discussing a specific Grifter: 1:32
Wall Street and the Chinese Wall policy: 2:35
Measuring Investment Performance: 4:29
Identifying red flags: 7:10
Tactics to protect yourself: 17:22
Parting thoughts: 19:18
 

Episode 10: No Bank Loan, No Problem: How to buy a business with no bank loan

Welcome to Point of More Returns with your hosts: The Masked Investor and WEALTHfaire. In episode 10 the co-hosts talk about how to obtain financing to buy a business when traditional options like bank loans are not available. What are the other financing options: Creative financing, seller financing. 
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc. before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
Episode Introduction - 00:20
What is the first step to take: 02:15
Creative financing: 03:20
Motivated sellers: 04:25
Due diligence and negotiating terms: 06:48
Typical terms for seller financing: 12:15
What is an Earn out: 14:23
Additional creative financing solutions: 17:10
Firms that help secure business financing: 23:19
How co-host WEALTHfaire structured his deal: 26:54
Parting thoughts: 28:58

Episode 9: $1M Commercial Real Estate Deep Dive

Episode 9: $1M Commercial Real Estate Deep Dive
Welcome to Point of More Returns with your hosts: The Masked Investor and WEALTHfaire. In episode 9 the co-hosts talk about a commercial real estate deal they were considering purchasing. They discuss in detail about why or why not they are pursuing the deal.  
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc. before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
 
Episode Introduction - 00:20
Why are we talking about this deal - 01:02
Deal Description - 02:02 
The cap rate on the deal - 03:38
Other deal red flags - 04:12
Does the traffic (number of cars driving past the property) make the deal more attractive - 09:55
What is the price you would pay for this deal and how do you come up with your purchase price - 14:54
What tools (such as financial models) do you use to analyze your deals - 19:02
Not doing a bad deal is just as good as doing a good deal - 20:33
What makes your financial models so great -  21:12
What differentiates us at Point of More Returns - 21:52
We are accessible for questions and comments - 24:02 
 

Episode 8: How to find a deal that’s worth it (Buying a Business)

Episode Description
 
Episode 8: How to find a deal that’s worth it (Buying a Business)
Welcome to Point of More Returns with your hosts: The Masked Investor and WEALTHfaire. In episode 8 the roles are reversed and WEALTHfaire interrogates the Masked Investor to screen potential businesses to buy on the spot! The Masked Investor reviews each deal and details why he would or would not invest in those potential deals and highlights his investment strategy. 
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc. before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
Episode Introduction - 0:20
Roles Reversed  – 0:39
The Masked Investor’s investment strategy for buying businesses – 1:07
Investment Criteria - 5:18
Reviewing a deal - 6:00
WEALTHfaire picks a deal for The Masked investor to review on the spot - 8:14 
What are “multiples” or “times cash” mean when buying a business - 12:13
Sites used to look for businesses to buy - 2:56
Summary - 20:01
Closing - 20:21
 

Episode 7: How I Find Potential Real Estate Deals in Minutes

Episode Description
 
Episode 7: How I Find Potential Real Estate Deals in Minutes
Welcome to Point of More Returns with your hosts: The Masked Investor and WEALTHfaire. In episode 7 the Masked Investor challenges WEALTHfaire to review real estate deals on the spot! WEALTHfaire reviews each property and details why he would or would not invest in those potential deals and highlights his investment strategy. 
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc. before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
Episode Introduction - 0:20
Initial Screens for Real Estate Deals  – 1:01
Why creating an investment thesis and investment checklist is important  – 1:17
Detailing the Investment Checklist – 1:40
The 1% Rule (Rule of Thumb) - 2:43 
Some of the rental software used to analyze deals - 3:15
Analyzing the operational expenses - 4:03
NOI (Net Operating Income) and Cap Rate - 6:07
Freestyle Real Estate Deal Analysis #1 - 7:33
Freestyle Real Estate Deal Analysis #2 - 11:58
Fed Interest Rate Forecasts for 2023 - 13:35
Deal success depends on the strategy - 14:32
Summary - 16:23
Closing - 20:21

Episode 6: Going Nuclear to reach your Goals (Part 1)

Episode Description
 
Episode 6: Going Nuclear to reach your Goals  (Part 1)
Welcome to Point of More Returns. In episode 6 we use the phrase “Going Nuclear!!” which means going all in on your goals with a laser focus. We discuss the impact this strategy has on your life and your business. We debate if going nuclear helps you reach your goals faster and the risks associated with such an approach. We discuss the pros and cons of going nuclear, our own experiences going nuclear and examples of high performing entrepreneurs who have also overcome extreme measures to achieve success. Does going nuclear enhance your self development and expedite your path to success? All of these answers are covered in this episode.
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
Episode Introduction - 0:22
What does “Going Nuclear” mean?  – 1:43
Examples of successful entrepreneurs going nuclear  – 3:57
Explaining our experiences of going nuclear – 5:59 
Are you being deliberate? – 7:14
Pros and Cons of Going Nuclear – 9:12 
The Benefits of Going Nuclear – 9:39
The importance of delayed gratification – 13:18
The Cons of Going Nuclear – 15:31
Recent study (Wealthcare Financial) of US citizens needing 3M to retire – 22:14
Going nuclear is unsustainable over time  – 26:36
Example of Going Nuclear community – 27:43
What are some ways to work towards going nuclear? – 28:59
Additional examples of going nuclear success stories – 33:24
 
Article Source: Yahoo! Finance “Thanks to Inflation, Gen Z and Millennials Will Now Need $3M in Retirement Savings To Live Comfortably”

Episode 5: The Electric Vehicle Mandate and Auto Disruption

 
Episode 5: The Electric Vehicle Mandate and Auto Disruption  
Welcome to Point of More Returns. In this episode 5 we discuss the California zero emissions electric vehicle mandate and the potential impact/disruption on the automotive industry. How are traditional automakers going to respond? Will there be a shift in vehicle production and what does the new automotive industry look like? What other industries and businesses will be impacted?
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
Episode Introduction - 0:50
The Electric Vehicle/Gas car legislation in California by 2035 – 1:54
Will other states follow suit? – 2:42
 Impact from an investment, risks, consumer impact – 3:05
The status of the current auto market – 4:28
When will the US convert to majority electric vehicles on the road? – 6:08
The ripple effect of electric cars impact on other industries – 8:22
Cathy Wood of ARK anticipates 45M EVs will be sold in the next 5 years (Barrons.com) – 10:51
Charging Stations – 14:23
Who are the key players in the electric vehicle movement – 17:41
What happens to the future price of EVs with increased production? - 19:03
Challenges of EV production with lithium batteries – 26:18
The solar panel movement may also pick up – 30:12
Going nuclear!! – 33:25

Episode 4: The Inflation Reduction Act

Episode Description
 
Episode 4: The Inflation Reduction Act 
Welcome to Point of More Returns. In episode 4, we discuss the potential investment opportunities within the Inflation Reduction Act. What is the Inflation Reduction Act? What is the impact of this bill on the economy and small business owners? The Fed has increased interest rates in the past month. Economists are assuming there will be additional interest rate hikes. 
Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc. before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 
Episode Introduction - 0:50
Firms sometimes use changes in legislation for investment opportunities - 1:18
Summary of the Inflation Reduction Act - 2:09
Electric Vehicle Credit - 4:01
How the electric vehicle credit could impact demand and other industries and where to spot potential opportunities - 8:15
Is the US ready for a high demand of electric vehicles? - 10:19
Additional industries impacted by high electric vehicle demand - 13:19 
Inflation Reduction Act’s impact on corporate tax - 15:59
Corporations can no longer “Double Report” their financial statements - 19:44
Excise tax on corporations’ stock buy backs - 20:26
Taxation of digital cash payment apps - 25:02
Drug prices in the Inflation Reduction Act - 29:55
 
Terms used in this episode: 
EV - Electric Vehicle 
PEG - Private Equity Group 
Stock Buy Back - Also known as a share repurchase. Allows corporations to buy some of its stock, which reduces the shares outstanding.