Karen and I created our Global Investor Alliance (GIA) to help corporate professionals, small business owners and entrepreneurs become data-and-analytics-driven real estate investors.
With diverse investment portfolios that protect and grow their income from their profession or business in the most tax-efficient way possible.
But the seeds of GIA were actually born from the hamster wheel of the corporate grind.
Karen and I were both holding well-paid corporate jobs that were helping us to slowly (but surely) grow our nest egg in the hopes of a comfortable retirement.
Like many Americans, for decades we had taken the simple route of investing all of our time in producing one major income stream (a job) and funneling all of our money into our companies’ 401(k) plan investments.
This ‘hope investing’ approach is based on a hope that you’ll eventually amass enough of a nest egg from 401k savings, parked exclusively in stock market mutual funds, to live out your retirement in relative comfort.
But we soon realized that this most popular route is not always the best one.
Any control we had over our money was relinquished the moment we handed it over to the public markets or our financial advisors.
We were really just crossing our fingers and hoping that the market didn’t experience a massive correction (or worse, a recession) right as we were due to retire. Recall 2008 anyone? You must have friends, family, colleagues as we do that were on the cusp of retirement then until 40% of their portfolio value disappeared overnight.
Again, ‘hope investing’ is a crap shoot every time. Sometimes you win, most times you lose.
Almost no one I knew had actually built a million-dollar nest-egg through stock market investing and kept it through the long haul of our boom and bust economic cycles.
Any millionaires we knew who were the ‘real deal’ picture of financial success - the ones enjoying comfortable lives and true security in their retirement finances - were involved in real estate.
But it wasn’t just my super high net worth (HNW) business-owner friends who were seeing success in real estate.
In fact, I could count a handful of friends or colleagues who’d used their corporate jobs to funnel money into real estate investment syndication deals and were continuously keeping their ‘day job’ income working for them to make more money.
Still, despite what some “gurus” might lead you to believe…real estate is a long game.
It is also the most powerful investment class I know of for shielding capital gains and growing tax efficient income. So, we could see real estate was a fundamental element in building our successful investing formula.
Our real estate journey began with investing in Single Family Homes.
As one of the most basic human needs according to Maslow’s Hierarchy of Needs - shelter - we thought this was the golden ticket.
And actually, for a while, it was.
We received regular rental income from 24 rental properties in 4 states that covered any mortgage and maintenance expenses, plus a bit left over for each property we rented out.
Soon enough, between us, we'd built up a solid portfolio of investments and were generating upwards of $12,000 per month in free cash flow from our deals - we felt like we’d finally cracked the code!
Life was good until...
...A tenant moved out and we lost income for 6 weeks while finding a new one.
...And then someone stole the Air Conditioning unit costing us $3,500 in expenses.
…And then our property manager placed a drug dealer tenant into one of our houses, having his dad co-sign the lease as he had no regular income to show. A neighbor kindly threw a Molotov Cocktail through the front window and burnt the house down to get them out the neighborhood. A $55,000 expense (only half covered by the Insurance company).
…And then winter caused a landslide and we needed a new retaining wall. $20,000 expense, yikes!
…And then Hurricane Irma arrived and wiped out income on a property for 5 months!
We had escaped the volatility of the stock market...only to drop ourselves right into the volatility of the single-family-rental market instead.
Upon looking for a way out, that’s when we stumbled upon the real golden ticket:
Multifamily Real Estate!
High-demand, easy to finance for leverage, you can foster a more consistent class of tenants, and professional property management support commonly exists at scale.
This was the yellow-brick road to Real Estate fortune we had been searching for.
We began to invest heavily into Multifamily property, and eventually, it started to pay off.
Soon enough, we were making real money from our multifamily investments, and we had finally cracked the code for predictable, consistent income.
After multiple false starts, we’d finally done it!
But every portfolio requires balance...we needed to diversify to protect the wealth we were building.
Although we could generate predictable, consistent, and increasing wealth from our multifamily properties, we were still heavily invested in the US markets and wanted diversification that would balance our multifamily portfolio risks.
Organic Coconuts, Panamanian pineapples, and delicious Colombian limes.
That was our ticket to diversification.
We had already invested in one of the most basic human needs - a place to live - the next foundational aspect of Maslow Hierarchy to invest in was another basic human need:
But we didn’t want to compound our diversification problem by continuing to invest solely in US farmland and agriculture projects.
We believe (like Ray Dalio) that it’s imperative to invest in overseas assets to protect against downside US economic risks and to capitalize on higher growth assets as developed societies age and young, emerging countries’ rise accelerates.
After extensive research and due diligence, on markets, products, and agricultural asset development teams in Latin America, a few of our favorite food investments were made in
→ A Pineapple farm in Panama
→ A Premium Coffee Farm in El Salgar, Colombia
→ An Organic Coconut farm in Monteria, Colombia
→ And a Lime Packhouse in Apartado, Colombia
No resilient investment strategy is one-dimensional. We created a well-rounded Real Estate and Agricultural investment portfolio to grow and protect our wealth in the most tax-efficient way possible - all through investing in real, global assets.
We hadn’t simply leapfrogged from Stocks into the Real Estate market, bringing with us the same burden of volatility.
We were able to enjoy a comfortable life, away from the grind of the corporate world, and thread travel into our investment lifestyle through our overseas deals.
Even more than that, we had set up a secure future - both for ourselves with a stable retirement fund, and for our children through the inter-generational legacy Real Estate investments they’ll inherit.
And yet - even then - we realized there was a problem...
We had gained control of our wealth-building, but we couldn’t help but think of many of our close friends and colleagues who were still stuck slaving away at their draining corporate jobs, betting on the stock market exclusively to give them a lucky break.
Many were endlessly pumping money into pension pots in the hope of building a retirement fund that would outlast them. That ‘hope investing’ strategy – remember?
And that’s where our Global Invest Alliance (GIA) grew from a seed of an idea to a full-blown fruit of passion we had to grow.
Throughout our Real Estate journey, Karen and I have been indebted to the mentors we hired, the courses we studied, and the masterminds we joined that helped us to become the experienced real estate investors we are today. We still continue to invest in our education and relationships
We’ve seen firsthand just how important the mentorship of someone more experienced can be and, with GIA, we want to return the favor…pay it forward in a sense.
We want to help would-be Real Estate investors dodge the same pitfalls we fell into.
And ultimately, we want to help give others the tools to use the power of Real Estate to create real, lasting wealth that affords them the security, predictability, and peace of mind that almost no other income source can bring.
To us, the Alliance is more than just a pool of investors with capital…
It’s a growth-minded community of people from many backgrounds and countries, each on a mission to learn and apply a proven model for investing in core wealth-building assets that ensure financial security over the long haul.
Collaborating to grow our collective investing experience with each new deal, we really believe that the community is the backbone of what makes the Alliance so valuable.
So as long as we’re still alive and able to show up for our members, we’ll continue to help them on their journeys to achieving their vision of financial freedom through Real Estate and Agriculture - whatever that vision may be.
If you’re interested in talking live with one or both of us…about Global Investor Alliance, the education and investor portal, how to join the community, or just talk real estate and investing strategies of all kinds, then head over to this page to chat to us.
- Peter & Karen
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