Bridger's Note… To My fellow Wall Street RebelsHope you have had as stellar of a week as I have.
Just to fill you in on what this is, once a week I will be sending out a value-packed newsletter that's filled with market updates, tips, and strategies.
So let's dive into issue #1:
*Note: We are not selling or soliciting a security in any way, shape, or form. This content is for entertainment purposes only and is not financial or legal advice*
Hey friends - It really is possible...
People start businesses for many different reasons…
Some start them out of desperation... others, just want to make some quick cash
Some want to change the world and revolutionize an industry... others, could care less about the money & fame, but just want to do something they are passionate about.
After my 7th business venture, I was starting to believe that there wasn't a business that would allow me to feel completely satisfied in business.
Either the business was positive cash flowing and I totally hated it, or I was loving it, but the business model just flat out stunk.
I'm here to tell you today that It really is possible...
Launching my first fund alongside a platform that helps others start their first fund has enabled me to live the life I want to.
Funds are difficult to get off the ground, but once they are, they are extremely lucrative.
As for Investment Fund Secrets?
I don't need the money, but the satisfaction that comes knowing that I have been able to assemble the knowledge needed to radically change someone's life is MORE than enough.
The world puts so many unnecessary constraints and expectations on ambitious financiers...
Even if you are working in Private Equity or Venture Capital right now, people will still laugh if you tell them you want to launch your own fund.
I can't tell you how many people (even some of my closest friends) scoffed when I told them I was going to launch a fund.
Now those laughs turned into admiration, and a handful of them have called me up and asked to work for me saying that they "believed in me the whole time".
I'm assuming you've experienced the same thing, and if you haven't, you will with time.
Enough drama though, I want to give you some applicable advice to launch your fund, no matter what type of business you are in - again, no matter what type of business you are in.
That might not make sense - but read to the end and you can start applying it today!
My Fund Launch Formula has successfully guided hundreds of aspiring fund managers towards their lifetime dream: Becoming a Fund Manager.
Let's talk today about the first step in our Fund Launch Formula - which is contrary to what most people think:
Step #1: Find the Deal
You're probably thinking, what?!
You don't have to do the legal work first or raise the money first?
Nope- first go find an awesome deal, and we'll teach you what to do from there!
And in order to find a good deal, you'll first need to know what type of fund you want to start. So let's backtrack a bit.
Obviously, you are most likely to have success in the industry that you have the most experience or knowledge in. Look at most common fund types along with my estimated difficulty of scaling without prior experience:
Real Estate Fund | Simple
Quick recap: Buy & Flip or Buy & Hold residential, multifamily, and commercial properties. Explained further on Youtube.
Debt Fund | Simple
Quick recap: Issue loans to entities in need of capital - most common are bridge loans or hard money loans to Real Estate Shops or Entrepreneurs.
Forex | Moderate
Quick recap: Trade currency on the foreign exchange markets.
Hedge Fund | Intermediate
Quick recap: High risk, leveraged trading strategies. Most commonly with public equities or indexes.
Venture Capital | Difficult
Quick recap: Invest money into new & emerging companies or technology. Seed money or Series A - D rounds.
Private Equity | Expert
Quick recap: Buy and trade developed companies that are not publicly traded. Often executed by infusing large amounts of capital to grow the business. Learn further on Youtube.
While these funds are the most common, these most certainly aren't the only types of funds...
You can start or scale a fund with pretty much any business model. A fund model is just the means in which you can scale a business or project!
If you have a business that delivers cookies to someone's door, most people think that the only way to scale that business quickly is through a franchise model...
A fund model is actually the better route to take because you retain equity in your business. Investors do take profits, but not ownership!
I have heard of some super wild funds before, but the fund model can be used in basically any business format!
At Investment Fund Secrets, we have worked with people in all the models mentioned earlier, but also in SO many others like crypto funds, obscure lending funds, amazon delivery funds, and others!
Again, almost all types of businesses can be scaled through a fund model! Awesome right?!
Well, that's all for today- look out for my next email talking about why Step #1 is to Find the Deal.
If you don't want to wait until next week - you can also hop on a free call with one of my coaches to help you strategize and figure out your next steps.
Go crush it out there
- Bridger Pennington
The Quick and Dirty Rundown… The Headlines that apply to you
JPMorgan Sets Aside More Than $10 Billion to Cover Coronavirus Loan Losses
Quick Summary: A typhoon of defaults are coming… but they aren't here just quite yet. The nations' biggest banks are all setting aside massive dollar amounts to cover the loan losses.
This means that there will be some attractive deals on the horizon. Guess how long the real estate market hit its low after the 2008 Financial Crisis? 3 years later. Don't think we are on the up and up quite yet.
SEC Rule Proposal Would Slash Number of Investment Managers That Need to Report Quarterly Holdings
Quick Summary: So if you hold any securities for anybody else... like a Hedge Fund or an RIA… you just saved some serious time and $$$. The SEC just said you don't have to publish your quarterly filings!
VC Daily: Venture Investing Active Amid Pandemic, Led by Growth Deals; Medly Health Grabs $100 Million for Digital Pharmacy
Quick Summary: Dollars are still moving despite the pandemic. The question is, are investors throwing their money at sinking ships?
Market Trends… To Think About
COVID-19 cases are starting to jump. This promotes Info Tech as a leading candidate this year.
They are primed for success as companies are being forced to go mobile. This is a huge win for some, and a heavy blow for others.
Understand the Trends…
In order to be a successful fund manager, you have to pay close attention to the trends.
People are spending more time either online, or outdoors. Have you tried getting a camping spot lately? Or booking a Cabin in a remote lake town?
Just because people canceled their cruise this July, doesn't mean they haven't re-booked for next year, right?
Also, when someone goes and buys a tent… you can bet they'll soon be getting some other camping equipment too.
And when a family spends big $$$ on camping, they surely need to validate that purchase and go again next year.
But don't be a bandwagoner…
Look at Softbank's Technology fund. They have been watching the information technology space for years, but they got lazy.
They just started throwing capital onto anything that was 'revolutionary' or 'disruptive' and they shoveled billions of dollars into companies like WeWork and they ended up losing disturbing amounts. One cannot assume that the assumptions are always modeled correctly.
Historical performance is not indicative of future returns. Period.
We always say that the first thing you should do is to find a good deal, right?
Well even if you hit a home run on your first type deal, that doesn't mean that that investment philosophy is entirely sound.
Don't go and jump on the first type of deal because it looks like the one that you made a lot of money on. Be sure you understand the space that you are in, and have thoroughly vetted the various types of risk that can stress your investment.
What I Recently Read.... So You Don't Have To
Never Split the Difference by Chris Voss and Tahl Raz
Why it's relevant…
When launching your first or fifteenth fund, you have to be able to talk to people. I'm going to say about 90% of conversations come down to selling & influencing.
Even in casual colloquial conversations, one is often convincing the other that what he/she has to say is important and that they should also think like they are.
Well what happens when you have two people selling to each other?
Negotiations.
This type of conversation is vital in running and scaling your fund. This book teaches you how to be better with negotiating and conversing.
Overview…
Chris Voss worked as the chief negotiator for the FBI.
He recalls on countless stories throughout the book to demonstrate what he has learned about negotiation tactics.
Before this book, negotiating religiously relied on Roger Fisher's "Getting to Yes", which talks about why a salesman should always get their buyer to say "Yes" because it's positive reinforcement.
In contrast, Chris Voss proved that this can just be a smoke screen to get you to leave. Instead, try and get to "that's right".
This is done by asking open ended questions.
Open ended questions make the other person feel like they are in charge of the conversation, when in reality you are… because you asked the question!!
The 3 Key Takeaways…
- When there is conflict or disagreement, practice tactical empathy and labeling: "It sounds like you feel XYZ… because of XYZ___, is that right?"
- Ask good calibrated questions, while remaining friendly, and not creating conflict:
- How would you like me to proceed?
- What are we trying to accomplish here?
- Be nice. Well at least don't be an a-hole.
ALSO: We've been pumping out some brand new content, which you can consume here: |
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| | | | | | | | | | | Disclaimer:
All Information Shared Are The Sole Thoughts and Opinions Of The Author. Do Not Take Any Information As Legal Or Financial Advice. You Should Seek A Certified Accountant And A Professional Legal Team Before Taking Any Further Action
**We are not selling or soliciting a security in any way, shape, or form. This content is for entertainment purposes only and is not financial or legal advice** |
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