Capital Gains - Capitalism.com

Full show notes at https://capitalism.com/ D-Class properties can appear to be an unattractive asset class to many investors. But while they can often seem risky, the requirement for low-income housing continues to rise in America, and with the right property management strategy they can be highly proffitable investments. Listen to today's show to hear how Tyler Sheff has successfully invested in D-Class multi-family properties. He explains how to find these D-Class property opportunities in the first place, how making changes that improve the lives of your tenants increases profit over time, and what to look out for in these alternative assets. Key Takeaways What D-Class properties are and why they are a good investment opportunity Converting D-Class properties into a safe, clean places to live How making the lives of these marginalized tenants better can also be profitable Connect with Tyler Sheff Hear more from Tyler at cashflowguys.com. On Facebook On Twitter On LinkedIn Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn --> Subscribe to the Capital Gains Podcast on Apple Podcasts

Full show notes at https://capitalism.com/ You can organize your schedule how you want. Rod uses a paper planner that contains pictures that have been in there for 19 years. Some are pictures of material items (like cars) that he wanted and ended up purchasing because of the success he gained. Some are pictures of the people he is grateful for, like his children. That paper planner focuses Rod on what he wants, not what he doesn’t want. If you don’t want conflict, focus on how you can help make peace. If you don’t want to be in debt, focus on how to make money. Visualize what you want and give yourself a clear explanation of why those things matter to you and visual reminders you won’t escape. This means that even with major setbacks - like the loss of wealth from an economic crash - you have the right mindset to build back to success. Key takeaways: Having the right mindset is essential for success Put time into determining what you want to do in life Stay focused on what matters

Full show notes at https://www.capitalism.com/ Justin Cooke used to build online businesses himself. But after selling some in an effort to scale up profits in his line of work, he stumbled into a new field: creating and managing a marketplace for buying and selling the type of businesses he had been making. Through his Empire Flippers marketplace, Justin connects sellers of online businesses with buyers. It’s a business that is still in its infancy as the market for the trading of online businesses - sources of passive cash flow for savvy investors - continues to grow. Taking a number of cues from real estate, Justin shares with us the past, present, and future of online businesses as investments. Key takeaways: Online businesses can be a great investment for wealth growth Trading in online businesses as assets is like trading in real estate The market is in its infancy, with lots of exciting growth ahead Connect with Justin Hear more from Justin at https://empireflippers.com/podcasts/. On Twitter On Facebook On LinkedIn Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn --> Subscribe to the Capital Gains Podcast on Apple Podcasts

Justin Cooke used to build online businesses himself. But after selling some in an effort to scale up profits in his line of work, he stumbled into a new field: creating and managing a marketplace for buying and selling the type of businesses he had been making. Through his Empire Flippers marketplace, Justin connects sellers of online businesses with buyers. It’s a business that is still in its infancy as the market for the trading of online businesses - sources of passive cash flow for savvy investors - continues to grow. Taking a number of cues from real estate, Justin shares with us the past, present, and future of online businesses as investments. Key takeaways: Online businesses can be a great investment for wealth growth Trading in online businesses as assets is like trading in real estate The market is in its infancy, with lots of exciting growth ahead Connect with Justin Hear more from Justin at https://empireflippers.com/podcasts/. On Twitter On Facebook On LinkedIn Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn --> Subscribe to the Capital Gains Podcast on Apple Podcasts

Charles Hugh Smith wonders if we will have enough paid work in the future, and what will happen if we won’t. Automation is becoming more and more widespread, but does it offer a sustainable economic model for the future? Today’s episode of Capital Gains offers a glimpse of Charles’ provocative alternative system, as well as his thoughts on what the smartest investing approach is to an economy attacked by massive deflation. As an investor, you have to ask yourself what’s tradable and what’s not. In the future, there will still be an economy for high-touch value services that AI cannot provide. Learn from Charles Hugh Smith what the advantages of cryptocurrencies are and choose to be an active, disruptive participant. Full show notes at http://capitalism.com Key takeaways: Where should investors put their money before automation takes over Key advantages of cryptocurrency A promising alternative economical system Connect with Charles Hugh Smith On Facebook On Twitter On Linkedin Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn --> Subscribe to the Capital Gains Podcast on Apple Podcasts

Investing in real estate for the first time can be daunting. But with expert advice, there’s no need to go in blind. On today’s episode of Capital Gains, we are joined by Joe Fairless, real estate investor and host of the world’s longest-running daily real estate podcast “The best real estate investing advice ever”. Joe will be sharing his advice for taking the leap into multi-family investment properties, and how to choose the right investment options for you. Key takeaways: How to move from single-family homes to multi-family property investments How master lease investments can be beneficial The key to knowing where to invest Investing in a value-add property The best real estate investing advice ever Connect with Joe Fairless You can tune in to Joe’s daily podcast at www.joefairless.com Joe Fairless on Twitter Joe Fairless on Facebook Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn   --> Subscribe to the Capital Gains Podcast on Apple Podcasts

Real estate investment is in an awkward time at the moment. There have been great returns for the past eight years, but there is now a lot more volatility. With many investors predicting an impending correction or recession, is now really a good time to be putting money into real estate? On this episode of Capital Gains, we’re joined by the managing principal and co-founder of Alpha Investing, Ross Reagan. He explains how his company helps clients find real estate investments that stay valuable even in a downturn. He also shares how senior homes and self-storage are the investments to be making—if you want your investments to be recession-resistant. Having built Alpha Investing from the point of view of an investor, Ross and his team give all of their clients the personal touch. Building trust in relationships has helped Alpha Investing to grow organically. Hear how you can make your first investment into this space, and how you can make cash flow no matter what the market does. Key takeaways: Investing for an impending economic downturn Senior housing and self-storage as recession-resistant investments Building trust between investors and investment managers Connect with Ross Reagan Go to www.alphai.com for more information on private equity real estate investments. Ross on LinkedIn Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn

First-time investments can be daunting, especially for the risk adverse. But understanding the real estate market and the types of investments available will help you make the best choice. On today’s podcast Capital Gains host, Jonathan Twombly, is interviewed by Okeoma Moronu for The Happy Lawyer Project podcast. Jonathan shares his insight into the real estate market and how you can make a safe, sound investment that, given a little time, can offer a great return on investment. Key takeaways: The benefits of real estate investment Is buying a home a good real estate investment? The difference between an active and passive real estate investment Making an investment as part of a syndicate What return can you expect from real estate investment? Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn Connect with Okeoma Moronu Find more episodes of The Happy Lawyer Project podcast at TheHappyFamilyLawyer.com On Twitter On Facebook On YouTube On LinkedIn

Full show notes at https://capitalism.com/can-control-investments-financial-freedom-w-jake-stenziano-gino-barbaro/ When Jake and Gino met in 2010, Jake was working in pharmaceutical sales and Gino was running a restaurant. They both knew they could do more. After discussing their mutual interest in real estate investment, they came together to make a partnership. In this episode of Capital Gains, Jake and Gino discuss why multifamily apartments are the best investment option if you want control over your assets, the three aspects of investment which you have to get right, and how to source the best deals. They knew when they started that they wanted to create wealth and gain financial freedom. By building their business over the past few years, they have both reached a point where financially they don’t have to work, but they love doing it. Discover how to make huge gains in multi-family investments by listening to the podcast, and hearing how Jake and Gino have done it. Key takeaways: Why you have more control over your investment with multi-family apartments The three things you have to do right when investing How to source multi-family investment deals Connect with Jake and Gino Visit Jake and Gino’s website at www.jakeandgino.com. On Facebook On Twitter On LinkedIn Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn

There are plenty of traditional long-term investment opportunities out there, but where do you look for something different? Is it possible to invest without paying the fees for an active manager? Global X Funds has a solution which allows you to personally track your investments using Exchange Traded Funds (ETF). It is the latest technology within asset management. In this episode of Capital Gains, we talk to Jay Jacobs, Global X Funds’ Director of Research. He tells us how picking an asset class isn’t the only option you have as an investor. They look at themes and trends, diversify the pool your investment goes into, and generate a huge profit for you. Their approach throws out the rigid grid of asset classes and looks at what themes will be disrupting the economy over the next couple of decades. Listen to how you can change the way you invest and don’t forget to subscribe for more great content on making the most of your money. Key takeaways: Exchange traded funds - the latest technology within asset management Investing in themes based on demographics How analyzing data can predict future profit Connect with Jay Jacobs For more information on Global X, head to https://www.globalxfunds.com/research/ Jay Jacobs on LinkedIn Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn

Blockchain is the technology behind cryptocurrencies and allows any two parties to send and receive money and value without the need for intermediaries. In this fast-growing market, how do you identify the true investment opportunities over all the hype? William Mougayar is an investor, researcher, and advisor who is an expert in blockchain and cryptocurrencies. In this episode of Capital Gains, he explains why you shouldn’t believe everything you read and discusses the two major players - Bitcoin and Ethereum. Hear how blockchain is less risky than our regular banking system, and William’s predictions on the future of currency worldwide. Key takeaways: Removing intermediaries from transactions with blockchain technology The financial growth of the blockchain market Bitcoin vs. Ethereum - the two dominant blockchains and investment implications Connect with William Mougayar For more information on making the right investment decision with cryptocurrency, go to William’s blog at http://startupmanagement.org/blog/ William Mougayar on Facebook William Mougayar on Twitter William Mougayar on LinkedIn William Mougayar on Medium Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn

Michael Blank believes in the law of the first deal. Once your first deal is done, the second and third come easily. On this episode of Capital Gains, he explains why multi-family properties are like an ATM machine. It doesn’t matter how much you earn or how much you have in the bank, the key to being financially free is to generate a large passive income. Michael talks about how to achieve this, and how he is coaching others to as well. When he was in his mid-30s and working in the software industry, he read Rich Dad Poor Dad and it shifted his entire mindset. He threw away his career and started focusing on earning a passive income from real estate. Michael began by flipping houses, but his big idea was restaurant franchises. His idea was to plow his net worth into restaurants, but it didn’t go well. He lost 95% of his net worth, and describes that time as a “very painful process”. He calculated that he would need 50 houses to make a great passive income. That was too many transactions. Michael reevaluated his strategy and started focusing on multi-family, and made his first deal in 2011. Key takeaways: The law of the first deal: Once your first deal is done, the second and third come easily Why multi-family properties are like an ATM machine Real estate investment without the tax burden through IRAs Connect with Michael Blank Head over to Michael’s website for more information and coaching on investing in multi-family properties: http://www.themichaelblank.com/ Michael on Facebook Michael on Twitter Michael on YouTube Michael on Google+ Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn

If you haven’t yet invested in commercial real estate, there’s a huge cash flow which you could be missing out on. Real estate has been a cornerstone of wealth generation for a long time, which is what prompted Jilliene Helman to create RealtyMogul.com. It is now possible to make a generous passive investment without being an accredited investor thanks to the technology which Jilliene has developed. Realty Mogul came from a belief that more people should have access to commercial real estate, and since being established five years ago they’ve grown to a marketplace of 125,000 investors and have completed $300m in transaction volume. How do you take the first step into this kind of investment? Jilliene and her Investor Relations team have one on one communication with investors to help you, and she shares with us some advice on how to make a big return from commercial property. Key takeaways: What is passive commercial property investment? The growth of crowdfunding Market trends and advice to commercial real estate investors Connect with Jilliene Go to RealtyMogul.com for more advice on moving into commercial real estate investment and to sign up for your free account. Jilliene on Twitter Jilliene on LinkedIn Connect with Jonathan Twombly Find more great content from Jonathan at www.twobridgesmgmt.com. Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn -> Subscribe to the Capital Gains Podcast

Entrepreneurs looking for lucrative and impactful investments have an opportunity to solve the mortgage crisis and make massive gains. Serial entrepreneurs Rick Allen and TJ Osterman are seizing that opportunity. They believe in this real estate investment strategy so much that they’ve built an online tool to help other investors get in the game. In this episode of the Capital Gains podcast, Rick and TJ show how it’s achievable by detailing their own success and explaining the process for other investors who want to enter this lucrative market. Why Invest In Non-Performing Mortgages? For the past five years, they have been purchasing non-performing mortgage loans and returning double-digit profits. Not only that, they have given low-income families the opportunity to keep their homes removing the stress and low confidence that comes with being on the brink of a foreclosure. Purchasing these seemingly unattractive loans is an opportunity that more and more investors are exploring, and there are educators, resources, and technologies which open the world up to anyone interested in moving into this attractive space. But, how easy is it to get into? Rick and TJ talk to us about the strategy, how to make that strategy successful for you, and making social responsibility a component of your business. Earning A Substantial Yield from Untapped Inventory Five years ago, Rick and TJ were offered the opportunity to purchase their first small balance mortgage loan when a bank agent called them and asked if they wanted a frame duplex. The property had $100,000 of debt attached to it, but they took a chance and bought it for $8,400. The first five properties they invested in within this market went so smoothly, they couldn’t believe how easy it was. They were contacting borrowers and offering to take their vacant properties off their hands, arranging foreclosure agreements, and paying them for their time. In one case Rick and TJ acquired a vacant property from a lady who was happy to hand over the keys in lieu of foreclosure. They gave her $100 for her time and sold the property for $28,000. From contacting the borrower to selling the house, the whole process took 15 days. The discounts on a mortgage note can range anywhere between 20-50% and can cost from $25,000 to $150,000. Why are the discounts so big? Because no institution has the ability to handle them. The discounted purchase of the mortgage means that Rick and TJ are able to offer a lowered rate for the borrower. In this episode of the podcast, they say that they have sometimes initially been out of pocket as they work to build the trust with the borrower. But because of the cut-price they paid out, in the beginning, they are able to create an affordable home for the borrower and still make a double-digit profit from their investment. Creating Affordable Home Payment Plans For Struggling Americans   Rick and TJ soon learned that the reward from investing in mortgage notes was more than just financial. The unexpected but emotional impact of helping buyers to keep their homes was huge. Rick and TJ are passionate about their business because it has the ability to improve the lives of thousands of homeowners. That’s why they launched paperstac.com. Rick and TJ created paperstac.com to help people find buyable mortgage notes. With around $400bn of unpaid principal balance non-performing loans still waiting unclaimed, it’s a market with massive financial and emotional gains to be had. Borrowers have had the fear of losing their home hanging over them, and investment serves as an opportunity to remove that fear with an affordable housing plan. The pair has the goal of saving 10,000 low-income family homes in the future. Learn more in this episode of the Capital Gains podcast. Connect with Rick and TJ Visit CloudCapitalManagement.com for more information on their fund if you are interested in learning more as a passive investor. Check out Paperstac.com where you can buy and sell mortgage notes and learn more about what’s available. More to come soon on the Money With Meaning website: mwmfund.com Richard Allen on LinkedIn Richard Allen on Facebook Richard Allen on Twitter TJ Osterman LinkedIn TJ Osterman on Twitter Papterstac on Twitter   Connect with Jonathan Twombly at www.twobridgesmgmt.com Jonathan Twombly on Twitter Jonathan Twombly on LinkedIn

In 2006, a year after selling his first successful internet business, Mark Daoust was on the verge of going broke. No savings, no rainy day funds, nothing for retirement. Since successfully exiting his first venture, a content-based website called Site Reference, his next projects had not been working out and was hemorrhaging money. It was at this point, on the brink of pennilessness, that the sale of his friend’s web hosting business was closed - a deal he had brokered after the experience of selling his own company the previous year. With the commission he made from the sale, Mark went on to start Quiet Light Brokerage, Inc., a marketplace for buyers and sellers of internet businesses, which has conducted over $100million in business transactions over the last 10 years. Mark discusses the returns available to buyers of existing internet businesses, as well as the risk that comes with buying them. He also shares some very important guidelines for both buyers and sellers of online companies. Listen in for Marks’ stories and advice after his 10 years in the business. They include a lawsuit and some of his favorite deals that Quiet Light Brokerage has put together. Lessons learned in the early days When selling online businesses, finding buyers is the easy part, says Mark. Investors are always looking for new opportunities, so building up that side of Quiet Light Brokerage was less of a challenge. The more difficult part in the early days was preparing a business for sale. It’s an area that business owners looking to exit often don’t get right. This was one of the most important things Mark learned early on - understanding what motivates buyers to buy and what information they need to make an acquisition. Sellers are often very proud of the products and systems they have built and focus on these areas during the sale. However, buyers are interested in making a return on their investment and so the information sellers present needs to be shown through that lens. So Mark and his team set to work making more compelling cases for their clients. That meant showing more than a simple P&L statement. It meant monthly reports going back three years, dissecting the accounting and financial sides of the business. It also meant highlighting the growth potential and analyzing the threats that the company faced. And finally, it was about communicating what the asset was and why it was worth investing in. Online businesses are all cash flow based -- there is no physical asset that you can sell if the business fails --  and so presenting it correctly is vital. They also learned pretty quickly the processes needed for keeping clients’ information safe while providing proper access to potential buyers. Preparing to sell Mark breaks down the process of preparing a business for sale into four categories: Get into the buyer mindset -- buyers buy for ROI. This return comes in two parts: The financial return. Online businesses typically sell for multiples of 2.5-3.5 times earnings so buyers are looking at around a 33% annual return. The lifestyle associated with owning an internet-based business. Being able to work from home with a very light team is a big draw for investors. So when buyers are evaluating the ROI, what do they want to see? Firstly, they want to see that it is not a risky investment. Online businesses are inherently risky and buyers need to be aware of that, but from the seller’s perspective, it is about clearly identifying and mitigating areas of risk. What are the areas of risk? Are there any factors of dependency in terms of a technology or platform, e.g. is the business dependant on Google rankings or is it entirely based on Amazon? Changes to these platforms could have huge implications on the profitability of a company that is dependant upon them. Once these risks and dependencies are identified, the seller must come up with systems to mitigate those risks. Growth Buyers want growing businesses, not declining ones, so is it growing currently? Outside of that, what areas of future growth have not yet been explored? Using tangible, tested experiments and examples is much better than hypotheticals here. Transition How easy is it for the business to transition to a new owner? This often comes down to ‘key man’ dependencies -- if the success of the business is tied to a personal brand or a key partnership between the owner and a supplier, then that complicates the process of purchasing a business. Documentation Clean financial records and documentation of the business is the easiest area to control, and often the lowest hanging fruit for sellers to look at to increase the value of their business. What are you getting when you buy an online business? Most of what you’re buying is good will, says Mark. Often buyers will ask, ‘should I build this instead of buying it?’ In some cases, it does make more sense to build, but by purchasing an existing business, you are buying the brand, the reputation, the relationships and partnerships that come with it. You’re also buying all the decisions that went into getting it to where it is today. What worked and didn’t work along the way. And the systems and automation that has been built to run a lean online business. Generally the more staff a company has and the more systems and procedures that are in place, the higher the value is likely to be. It’s worth noting that the more staff members there are, the more friction is created in the transfer of ownership. And the more processes that are in place and well documented, the more attractive an acquisition is. What online business a good fit for you? Outside of the risks within the business you’re buying, is there anything you should know about yourself to identify what sort of business you should purchase? Firstly, it’s important to understand if you want to buy a big or a small online business. After his first exit, Mark bought two businesses for low five-figure sums and it became clear that the work he needed to put into them was not worth it for the money they were returning. So it’s important to match the scale of the acquisition with what is worth your time and effort. Secondly, know what your strengths are and invest in something where those strengths are an asset. For example, if you’re great at negotiating deals with vendors, look for an e-commerce company where that skill is valuable. Don’t enter the world of a software as a service company where you’ll have to become good at working with developers creating new product features, which may not be a skill you already have. Online businesses as passive income sources It’s true that many online business owners have created companies that create mid-six figure bottom lines that take just 10 hours of work per week to maintain. In Mark’s case, for instance, he was able to take his entire family out to Europe for a month while working remotely from his phone without impacting his businesses at all. Mark does stress that it takes a lot of work to get to that passive level, with a lot of automation, good people, and strong processes in place to allow it to run seamlessly. A buyer shouldn’t expect to be able to walk into an acquisition that is immediately passive and low maintenance, some ground work is always necessary. But it is possible to get there relatively quickly -- and doing that is all about systems and procedures. You can reach Mark and his team at www.quietlightbrokerage.com

We all hear stories of highly lucrative angel and venture capital investments. But without an existing portfolio and a Rolodex full of Silicon Valley contacts it can be hard to identify the right opportunities. So what are the telltale signs of a founder or company that is destined to succeed? Or the warning signals of one that isn’t? And how do you meet them in the first place? To find out we spoke to Tristan Pollock who, after successful exits from his two previous companies -- Social Earth and Storefront -- has made the move into the venture capital world. Tristan is the entrepreneur in residence and venture partner at 500 Startups. 500 Startups is the world’s most active venture firm based in San Francisco with nodes and investments across the globe, with nearly 2,000 investments in their portfolio since starting out six years ago. In this episode we talk about Tristan’s successful exits from his two companies, Social Wealth and Storefront; his transition to venture capitalist and advisor to startup businesses; and what green and red flags he looks for when evaluating new investment opportunities. Entrepreneur in residence This is a title we’re seeing more often in the venture capital world, says Tristan. Typically, the entrepreneur in residence (EIR) will be brought in on a salary or stipend to assist the firm with their portfolio and in evaluating new potential investments. Usually, the firm will also be investing in the EIR’s next company. This is all a part of the 500 Startups program but in addition, their EIRs will spend time with their accelerator program, advising younger founders and companies on a weekly basis. The 500 Startups accelerator program Through this four month program, Tristan predominantly helps startups in three main areas: Growth For the first two to three months, the focus is on trying every growth experiment possible and on testing and iterating on every available acquisition channel. Storytelling In the last month or two, the focus shifts to how the startups are pitching their companies. This can be a challenge for founders at first because they are so deep in the weeds of their product that it can be difficult to take a step back and simplify their story. Investors need to be able to quickly understand what is interesting about them and what differentiates them from other companies. It’s also important to be able to communicate the problem or pain that a product solves. People need to feel a pain, says Tristan, in order to adopt a new product -- as an investor, or as an end user. Fund raising As part of the program, founders will be introduced to the investor network in San Francisco and coached through the process of finding funding. Bootstrapped vs. venture funded Tristan has experienced both forms of entrepreneurship. His first successful company, Social Earth, was self-funded. Whereas Storefront, his following venture, was backed by 500 Startups and went through their accelerator program. There is no one-size-fits-all route. Some founders want to maintain control of their companies and stay true to their vision for the product.   Others feel that there are skills that they need or a network they need to build, which they can only get access to through an incubator or accelerator program. Tristan describes the 500 Startups accelerator program as an important part of getting him and his company up to ‘San Francisco’ speed, as he calls it. Tristan Pollock’s entrepreneurial story Tristan is a Minnesota kid. He and his co-founder Erik Eliason bootstrapped their first business, Social Earth, with no outside funding and without an existing network. Before Huffington Post’s ‘Impact’ section, there was a huge gap in reporting positive news around the solutions affecting social change. Around the same time, social entrepreneurship, purpose before profit, and the ‘triple bottom line’ were becoming widely recognized terms. They launched Social Earth, a content business, which grew organically and became the leading source of news in the social impact niche and a strong brand, allowing them to be their own bosses and work on a project they really cared about. Three years in, they were approached by a number of potential buyers and sold the company to 3BL Media, which gave them the funds to transition into their next company, Storefront. After taking a break, the co-founders got back together. While walking the streets in Minneapolis and speaking to friends and family, they noticed a trend of vacant storefronts. It turned out that 10% of stores in the US are sitting empty. At the same time, the pop-up retail trend was growing. Many small businesses who couldn’t commit to five-year leases, were looking for short term rentals to hold art exhibitions, launch a fashion brand, etc. Triston and Erik saw an opportunity to create a marketplace to bring these two needs together. In the summer of 2012, they tested the idea in their local area as a basic MVP (Minimum Viable Product) while interviewing for AngelPad, a San Francisco accelerator. They were accepted into the program and at three days notice moved over to California and spent 10 weeks sleeping their four person team in a one bedroom apartment, hacking the first version of Storefront together. After the accelerator program, they reached demo day where they had the opportunity to pitch their new product to investors in just three minutes. Through networking at the event and setting up meetings, they went through a period of five investor pitches per day and were able to close a round of $1.6million in March 2012. They successfully sold the company in 2016 to a French company called Oui Open who was expanding globally and wanted access to the US. After this experience, Tristan wanted an opportunity to give back to the entrepreneurial community, and so came to join 500 Startups. Identifying early stage startups for investment With financial projections and limited quantifiable information, it’s more of an art than a science at the early stage. Tristan talks us through the flags he looks for. Chief among them at this point is to look at the founders and core team. One of the first and most obvious signs is previous experience and past successes. If a founder has proved that they have what it takes to execute by grinding it out on something they care about, then you can feel more confident about their next venture. Listen in to the interview for more. Red flags Tristan relies on pattern recognition to identify warning signs of an inexperienced or untrustworthy founder. Things like: Being very salesy in meetings; A combative relationship with their co-founder - perhaps they haven’t been working together very long; or A know-it-all character that isn’t easily coachable or is closed off to feedback. Instead, he would prefer to see a strong sense of empathy from a founder that can empower people and inspire diverse teams. Tristan has written an article on Silicon Valley etiquette which you can read over here. He has also compiled a list of some of the strangest pitches he has seen, which are certainly red flags. Investing in startups for the first time 500 Startups offers a course through Stanford called VC Unlocked, which can be a good starting point. Outside of that, it’s important to start building a network around VCs and founders that you trust to get introductions to potential opportunities. When you’re starting out as an angel you will need to piggyback on other people because your check size is smaller. You’ll want to get in on opportunities early with founders that have some of the positive signals mentioned above. You may not invest in the first opportunities you are exposed to, but they will give you a valuable learning experience. In many cases, investing in startups is similar to investing in real estate. You may want to have 25-50 investments in your portfolio to increase your odds of one of them bringing a positive return. It’s important to appreciate the passion, grit, and resilience that founders need to display in order to create their companies and so fostering a relationship of respect between investors and founders is key. You can reach Tristan on Twitter @Pollock or his website.

Today’s guest, Paul Moore, left a successful career at the Ford Motor Company to create financial independence through entrepreneurship. He successfully exited several businesses over the years and is now in the process of building a platform for investing in multifamily real estate. Paul is a co-founder of Wellings Capital and author of the book “The Perfect Investment: Create Enduring Wealth From Historic Shift In Multifamily Housing.” In this episode, Paul talks about how difficult it is to find good investment opportunities in the current environment -- particularly when your objective is to preserve capital. He also talks about the surprising ‘big why’ behind his investment business, so tune in to hear what that is. Investing in multifamily housing What are class B and class C properties? Paul’s business, Wellings Capital, purchases class B and C properties to update them, brings on investors, updates the buildings to standard, increase rents and returns a profit for those investors. But what is a class B or Class C property? Typically commercial sized apartment buildings from the ‘70s, ‘80s, and ‘90s in Paul’s case, they fall into two categories: Class B A class B property is typically outdated. Between 10-30 years old they (not always, but usually) have some level of functional obsolescence or that are in some way dated. Class C A class C property might have some additional things going against it. For example, it could be in a less desirable area. Or it could be very outdated or have some major deferred maintenance required on it. How Paul got into the real estate business After getting his engineering degree and MBA, Paul went to work at Ford headquarters for five years. He enjoyed his time there but wanted more. He knew that he was built to be an entrepreneur and so set about creating a life of independence with a classmate and colleague. Together they started an HR outsourcing company. Fast forward another five years and their Detroit-based business had sold to a publicly traded company. With his new found freedom, Paul moved his young family out to Virginia and became involved in flipping houses, building homes, and rental properties. Having caught the investment bug, he began experimenting. In 2010 he put some of his money into oil and gas in North Dakota. While visiting the area with his partner, they noticed there were limited places to stay, so they decided there was an opportunity to build a multifamily property. The project did well, but Paul later realized the risks associated with the volatility of the oil and gas market. After they had sold the asset, and following the oil and gas boom, the value took a nosedive. This combined with other experiences -- such as a Hyatt Hotel development that didn’t work out as he had hoped -- convinced Paul to avoid development in future, which led him to the current strategy of Wellings Capital. The transition to value add, multifamily properties In 2013 Paul and his partners came across 37th Parallel Properties out of Richmond Virginia. Rather than building a portfolio from the ground up, they decided to partner with 37th Parallel who mentored them into the business through their programme, which is how they got started. Wellings Capital as a group are extremely risk averse and so are as yet to find their first, perfect multiplex investment. Risk aversion As has often been mentioned on the podcast, when investing in real estate, you must invest for cash flow and base your projections on the current market conditions and assume that they won’t improve. Paul’s philosophy is to shoot for singles and doubles rather than swinging for the fences. His group opts to invest in large and growing markets. They have a 24-point screen for markets and look for things such as: A positive net population migration Low unemployment Diverse economy Job growth Income growth They look to avoid: Areas dependent on a military base where a change in government can dramatically change the outcome States like California, Nevada, Arizona, and Florida that have seen more volatility in real estate prices before, during, and after the recession Investing in large markets also gives them access to a choice of property managers, which is a key part of their formula. What Wellings Capital looks for in an investment property Paul looks for stabilized properties. He stays away from properties with less than 85-90% occupancy. Paul also avoids buildings with things like aluminum wiring, asbestos, lead paint, etc. Underwriting metrics When they are underwriting a deal financially, the metrics that they’re looking for include: A debt service coverage ratio of 1:1.5 or better (typically the banks look for a ratio of 1:1.3, giving themselves a 30% margin of safety) A break even occupancy of 80% or less - meaning anything above this level of occupancy they have a strong positive cash flow A cash-on-cash return of 5-10% net to the investor (growing over the years) A total return of 14-20% or more (total return includes the cash-on-cash return, plus the principal paydown, plus appreciation) Aside from forced appreciation, Paul is looking for appreciation of equity. This has two leverage factors. These two factors combined can allow properties to appreciate at a good rate. The simplest of these is leveraging with debt: If there is a 67% loan to value ratio, the equity is being leveraged at a 2:1 ratio. The second is related to net operating income. For example: If rent is a $1 and the cost of managing the property is 50¢, we have a 50¢ net operating income. If you raise the rent by 5%, it goes to $1.05. The net operating income has now been raised by 10% because we have reached a 55¢ margin over the original 50¢ margin. Wellings Capital look for properties where they can raise rents to see a net operating income increase of 20% or more for a strong ROI. The challenges in finding these deals Given Paul’s strict criteria, it is a challenge to find suitable opportunities. This is due to a number of reasons: There are a lot of new players entering the market The cities that they target draw a lot of attention and so there is increased competition They are not willing to take on smaller or larger properties than what they are already targeting because of the model they operate There is a lot of competition from foreign investors who are willing to simply break even and lose out on a profit in order to move their money into the American Dollar Paul’s surprising ‘why’ One of the things that Paul and his partners at Wellings Capital are passionate about is stopping human trafficking. If you take the record annual profits of GM, Nike, Starbucks, and Apple combine them and multiply that number by 2, that is the approximate revenue generated by human trafficking in the world. It’s a $150billion business. They are working with organisations like Harvest Home, Exodus Cry, to provide funding to fight the human trafficking industry. Find more information about Paul You can find Paul’s book, “The Perfect Investment” on Amazon. You can also visit the Wellings Capital website.

There’s a lot of talk about a forthcoming economic downturn. People can’t seem to wait for the bubble to burst. I even told Capitalism.com founder and CEO Ryan Moran on his podcast, Freedom Fast Lane, that investors should take caution in the current market because real estate prices are incredibly high. That’s why it made perfect sense to talk to someone who’s been through an economic meltdown holding a significant real estate portfolio, and have him share what got him through it. Damion Lupo used a Visa credit card to pay for his first house. He bought up 150 homes in seven states in the five years leading up to the tsunami that was the Great Recession in 2008. It was this experience that led Damion to realize that riding the wall street roller coaster isn’t the best way to take control of his financial future. So he set out to solve this problem for himself and others by establishing a financial technology business called Total Control Financial. Here are three important tips from Damion to take away from this episode: Why you should look into alternatives to the traditional 401k; What having total control of your financial freedom should look like; and Why we shouldn’t wait until we’re at retirement age to create and live the life we want.

The world of the future isn't as far off as it may seem, which is why we pose the question -- how will automation impact investors in the future? To address this massive question, today’s episode features a deep discussion between myself and Charles Hugh Smith about what it will mean for investors when automation dramatically reduces the number of jobs for humans to do. Smith is the owner of the Of Two Minds blog where he writes about economic trends. The blog is ranked No. 7 by CNBC as one of the top alternative financial sites on the Web. What can investors do now to prepare for economic changes driven by innovation? Is there a clear answer? To find out, tune in to this episode of the Capital Gains podcast. Subscribe on iTunes, Stitcher or Google Play to get the latest episodes downloaded directly to your device!

Take it from someone who has sold over $1 billion in real estate -- we are at the top of the market, and investors looking to buy now should take caution. Pat Hiban is a former real estate broker turned investor. He's best known as the host of his own podcast, Real Estate Rockstars, which interviews the top real estate agents around the country. In this interview for the Capital Gains podcast, Hiban shares his views on the right way to go about investing in real estate, where we currently are in the market cycle, and what that means for the real estate investing climate. At Capitalism.com, we believe the key to financial freedom is building a business and investing the profits. If you've already built a business and are looking to learn the ins and outs of alternative investing opportunities from real experts, you must subscribe to the Capital Gains podcast. Each episode is jam packed with investment strategies - beyond stocks, bonds and mutual funds - to help you build wealth.

Today's guest is a true self-made man. A pioneer in the realm of website investments, Ace Chapman. In this episode, we explore how Chapman found himself investing in his first website way before most people realized this was even possible. Chapman got started 17 years ago buying websites. He left college to pursue website development against the wishes of his parents. Chapman also talks about how the website investments business has evolved over the past two decades. It's a truly fascinating story that I guarantee you'll love. Subscribe to the Capital Gains podcast on iTunes!

Jason Hartman has built a real estate empire, purchasing hundreds of single-family homes around the country since he was just 19 years old. In this episode of the Capital Gains podcast, Hartman shares how his marketing skills helped him build his own real estate empire, and helped him create a business around helping others invest in real estate. Hartman also teaches investment, and makes it possible for people like you invest in turnkey properties without having to put together the deals or the management teams yourself. I hope you enjoy today's interview as much as I did. I'm really inspired now to try to replicate the success he's created. If you like this episode, please subscribe to the podcast, and be sure to leave us a positive rating and review.

Today's guest is John Roy, the country's leading broker and consultant in parking lots and the head of JNL Parking. In today's podcast, John tells us how he got his start in parking lots while he was a student — buying some dilapidated houses across the street from the Notre Dame football stadium, tearing them down and putting in parking lots instead. And he also tells us why you should never do what he did to get started.Instead, like other real estate assets, John says to go for the current cash flow. John has been featured on CNBC as a parking industry expert. He's co-written a book on parking acquisitions, and serves on the Board of the National Parking Association. John is often a featured guest speaker for the National Parking Association and other events throughout the country. John specializes in teaching parking asset valuation. He helps investment groups acquire parking assets. He's a Certified Parking Professional (CPP), earned a bachelor's degree in finance from San Diego State University and an MBA from the University of Notre Dame. Learn about the highly fragmented market of parking lots from John Roy in this episode of the Capital Gains podcast.

Today's guest is Kevin Bupp, master mobile home investor and host of the Investing for Cash Flow podcast. Kevin shares with us how the real estate crash nearly wiped him out as an investor in single-family homes, how he successfully worked his way through those tough times, and how he has come out on top as one of the top mobile home investors in the country. Along the way, Kevin tells us just why he loves investing in mobile homes so much, and how you as an investor can get involved too. If you like this podcast or know someone who would, please share it! And be sure to subscribe on iTunes and follow us on Facebook.

Whenever an artist, like a musician, creates a work, they create a valuable asset with an income stream called a royalty. Royalties can be bought and sold, and are a unique investment. If artists want to convert the unrealized value of their royalty stream into present cash, they can sell it on Royalty Exchange, an online marketplace for buying and selling royalties. And today's guest is Jeffrey Schneider, president of Royalty Exchange.   Investors have discovered what great assets royalty producing intellectual property like music can be. And they come to Royalty Exchange to buy those assets. Listen to the full episode on Capitalism.com for details on how investors purchase royalties from artists and the benefits of these investments, as well as the different types of assets available.

Today's guest is Nicholas Coriano, who can only be described as a true self-made man. Nicholas owns Homescape LLC, a holding company for his various investment interests. Which include domain names, and eCommerce development, coins and precious medals, and raw land. Nicholas truly embodies the audience of the Capital Gains podcast. Tune in each Tuesday for a new episode of the Capital Gains podcast, presented by Capitalism.com.

Now, I'm willing to bet that you didn't realize that a lawsuit is an asset for the plaintiff. If the case is very strong, it's a very valuable asset. Since the 1980s, people have been investing in lawsuits by advancing the cost to the plaintiff in return for an agreed portion of the award or settlement. Today's guest is Jay Greenberg, co-founder of LexShares, which funds litigation. Before he co-founded LexShares, Greenberg worked in Deutsche Bank's tech investment banking group. There, Greenberg focused on merger and acquisition advisory, debt and equity financing (primarily for enterprise software), tech services, and fintech companies. Subscribe to our podcast on iTunes and read more about the Capital Gains podcast on Capitalism.com.

Welcome to the Capital Gains podcast! I'm your host, Jonathan Twombly. Today's guest is Scott Meyers, the owner of Self Storage Investing. Scott has an amazing story having worked his way up from buying $30,000 houses to bigger multi-family deals and then into self storage. Scott is now one of the countries leading experts on self storage investments, with a portfolio of more than 4,000 units around the country. Tune in to this great episode and more at Capitalism.com!

In this episode of the Capital Gains podcast, Jim Bronstein of Marine Business Advisors shares why investing in marinas and boat yards could be worth your while. Jim has been in the boat yard and marina business for more than 35 years as an operator, investor, consultant and investment advisor. On today's show, he tells us how the marina business has grown from a mom and pop hobbyist endeavor to a serious investment asset that's highly sought after by real estate investors and private equity firms alike. If you're interested in how to invest in marinas, there's no one better to know than Jim Bronstein. Check out more episodes of the Capital Gains podcast at Capitalism.com.

Welcome to the Capital Gains podcast with Jonathan Twombly. Today's guest is Christie Pitts, a venture development manager at Verizon Ventures. Christie talks about corporate venture capital and how it differs from traditional venture capital. In particular, she explains, corporations seek to invest in early-stage companies were the deal not only makes sense from a financial perspective but the target company is a strategic fit with the corporation's overall business interests. Listen to the Capital Gains podcast each week at Capitalism.com.

Today's guest is Steve Waldman, president of Ground Lease Capital Partners. Now, if you're not into real estate, I'm willing to bet that you never knew you could buy a piece of land without buying the building on top of it, and then give the building owner a lease allowing the building to be on the land. Well, it's called a ground lease, and Steve Waldman has made a career out of them, helping building owners increase their returns by stripping the land piece from the property and helping his own investors make returns by owning that land. In this interview, Steve walks through the process of exactly how you make money doing this kind of ground lease deal.

Today’s guest is Angela Lee. Angela teaches leadership and strategy and entrepreneurship at the Columbia Business School here in New York City. She's also the founder of 37 Angels, an angel investing network that trains women to invest in technology startups. Catch more episodes of Capital Gains at Capitalism.com.

With more than 30 years in the metals business, Peter Hug, Kitco's head of precious metals trading, has seen everything from the Hunt brothers' attempts to corner the silver market in the 1970s, to the great bull run for gold after the 2008 financial crisis, to the steep drop in prices that followed. Tune in to this episode to learn about investing in precious metals and catch more Capital Gains at Capitalism.com.

Today's guest is Justin Cooke, co-founder of Empire Flippers, a marketplace for buyers and sellers of operating online businesses. Online businesses, from simple informational pages creating revenue with Google ads, to more sophisticated platforms selling physical products through Amazon, have hit the radar screen for investors. From small investors looking to buy a job running an established web business, to website flippers who create value by massively increasing traffic and conversions, to private equity funds looking for new asset classes with strong yields, many people are now looking at existing online businesses as the next great investment category. Tune in to this episode to hear Justin Cooke explain why, and find more episodes at Capitalism.com

In today's episode, Team Valor International owner Barry Irwin talks about racehorse ownership, how investors can make and lose big money investing in thoroughbreds and how smart investors invest in racehorses the same way venture capitalists invest in startups. One things clear from this interview: investing in racehorses isn't child's play. Learn more about investing by subscribing to the Capital Gains podcast and visit Capitalism.com.

Today’s guest is Mark Podolsky, the original land geek himself. In this episode Mark Explains how he set himself free from a hated investment banking career by learning how to buy and sell raw land. Mark is now the country’s leading expert on how to buy raw land for pennies on the dollar, sell it fast and make profits of 300, 500, and even 1,000% in just a few weeks. Best of all Mark does it from the comfort of his own home working only a few hours a week.  Learn more about the Capital Gains podcast at Capitalism.com.

Today's guest is Joe Stampone, an expert in real estate investments, a partner at Atlas Real Estate Partners here in New York City, and the original student of the real estate game. In this interview, Joe and I go deep into why real estate should not be considered a passive investment, the only way we know how to make it passive and why investing in apartments beats investing in single family homes every time. Find more episodes of the Capital Gains podcast on Capitalism.com.

Investment diversification is an important topic for any serious investor, mainly because you don’t want to have all of your investment eggs in the same types of baskets. That’s where alternative funds come in. An alternative investment is an asset that is not one of the conventional investment types, such as stocks, bonds, or cash. For that reason, it’s not an area of investing typical investors are familiar with, which is why I invited Sang Lee to come on the show. Sang is with DarcMatter, an online platform that deals almost exclusively with alternative investment assets, making them available to any accredited investor. On this episode of Capital Gains, you’re going to learn why alternative investments are a smart move when it comes to investment diversification and how the DarcMatter platform works. Are your investments diversified enough to be safe in a downturn? Most investors understand the need to have their assets and investments diversified. When risk is spread out over a number of sources your assets are less vulnerable to market changes and fluctuations. But most investors are not aware that with the digital age there are new opportunities for investment that were previously unavailable to average investors. That’s where DarcMatter comes in. It’s an online investment platform that focuses on alternative investments. On this episode, I spoke with Sang Lee, CEO and Founder of DarcMatter about how the platform makes uncommon investments a reality for average investors. You’ll be intrigued by how the platform works and what it has to offer. If you want to diversify your investment base, there’s a new way to do it. The traditional investment portfolio doesn’t usually include much in the way of international assets, but online platforms like DarcMatter are changing all of that. In your DarcMatter account, you can diversify your investor base by accessing both domestic and international LPs. But you won’t be doing it in the dark. You’ll also be able to streamline your investor interactions and track all communications through the dashboard. And you don’t have to worry about compliance issues either. DarcMatter’s system has you covered, ensuring that everything is done above board. You can find out more about the platform by listening to this conversation I had with Founder, Sang Lee. You can now have direct access to alternative investments. The digital age has brought many changes to the traditional business models of the past - Uber, Airbnb, and others are changing the landscape of the way we do business and procure services. The same is happening these days in the realm of investing. Companies like DarcMatter provide transparent access to pre-vetted hedge-fund managers, private equity funds, venture capital, and other group funds to help you take advantage of opportunities that may have seemed out of reach before. Sung Lee, CEO and Founder of DarcMatter is my guest on this episode of Capital Gains. Now it’s easy to find vetted alternative investment opportunities. When you login to the DarcMatter interface you’re able to browse investment opportunities using built-in search features that allow you to drill down into the exact areas and niches you are interested in pursuing. And the system keeps in mind how you’ve completed your investor profile, suggesting funds based on your personal or client risk profiles and investment preferences. It’s a tailor-made alternative that you’re able to do online, on your own. You can directly indicate your interest in a particular fund, allocating as you please. You’ve got to find out more about this amazing platform and the investment diversification that’s possible using its powerful features. Find out how Sang Lee and his team have designed DarcMatter to be both effective and easy to use, on this episode of Capital Gains. Outline of This Episode [1:01] My introduction to Sang Lee of Dark Matter. [1:28] The industry of alternative funding and how Dark Matter fits in. [4:21] Who are the end users of Sung’s company? [7:51] Why many advisors are leaving institutions these days. [8:54] How funds become part of this particular investment platform. [11:16] What an investor might walk through to use the platform. [13:42] The investment minimums on the platform. [17:05] How Sung began his company. [20:00] How DarcMatter changes the game for investors and funds. [23:43] The trajectory the company has been on and where it’s headed. [26:15] What investors can expect the first time they login to DarcMatter. [28:13] Forecasting the next 5 to 10 years for DarcMatter. [29:43] Why alternative funds are an exciting area for growth opportunities. Resources & People Mentioned www.DarcMatter.com http://blog.darcmatter.com - The DarcMatter Blog Ask(at)DarcMatter.com DarcMatter on Twitter DarcMatter on Facebook DarcMatter on LinkedIn DarcMatter on YouTube Jonathan's Websites http://TwoBridgesMgmt.com http://www.TheMortarBlog.com Connect with Capitalism.com Website: http://capitalism.com/ On Youtube On Facebook On Twitter On LinkedIn

If you haven’t heard about Bitcoin, the first example of cryptocurrency, you’re not alone. Over 10,000 times per month people are Googling the question, “What is Bitcoin?” I’d heard about Bitcoin a number of times but still felt like I didn’t have enough of a handle on what it is and how it works, so I decided to invite an expert on the subject to talk with me for the podcast. On this episode, I chat with Trace Mayer, one of the leading experts on the Bitcoin phenomena. He’s not only going to tell us what Bitcoin is, but also how it works, why it’s becoming more and more popular as a form of currency, and how you can get in on the Bitcoin movement. How can a currency be digital in the first place? Everything we’ve ever known and used as a currency has been tangible, something we can hold in our hands. But Bitcoin is changing all of that. Now you can transfer value - money, as easily as you transfer a file to someone over email. Only it’s encrypted using the same industry leading standards that many banks and financial companies use so that the value is kept intact, safe from the eyes and hacks of crooks who might want to exploit or use it themselves. Every transaction is tracked. Ownership of every coin is known. And it’s gaining ground worldwide. Find out what Bitcoin is and how it works by listening to this conversation with Trace Mayer. What is it that gives Bitcoin its value? What’s to keep techies from simply inventing more? When I first began this conversation with Trace Mayer I was a bit skeptical about the Bitcoin technology. But the more I got into the topic with him the more I understood that my skepticism was based on the fact that I didn’t understand the technology enough. As Trace began to explain to me how Bitcoin was first invented and the safeguards that have been built into it to ensure that its value is inherent and can’t be lost, it all started to make sense to me. You can learn more about how the Bitcoin system works and why it’s thought to be the currency of the future, on this episode. Could the government ever make Bitcoin difficult or illegal to use? Much of the fear surrounding Bitcoin has to do with the fact that it’s a completely new way of doing things when it comes to exchanging value in a transaction. Nobody really knows what the United States government or any government for that matter will do in attempts to regulate it, modify its use legally, or restrict it altogether. My guest today, Trace Mayer thinks that any steps that governments take should be to support and encourage the use of digital currencies like Bitcoin because it’s a more secure and stable currency than any that has ever existed - and makes exchange across currencies even easier. You can hear Trace’s argument and learn how Bitcoin is growing in value almost daily, on this episode of Capital Gains. What happens to Bitcoin of the electrical grid goes down? One of the biggest areas of vulnerability for any digital asset (computers, smartphones, online systems of any kind, etc.) is its dependence on a functioning electrical grid. Should something happen to bring down the infrastructure of a nation, or the entire globe (think natural disaster or effective EMP attack) then Bitcoin would be impossible to transfer and use. When I asked Trace Mayer about this possibility he had a very interesting answer that I think will get your wheels spinning. You can hear what he has to say about it on this episode. Outline of This Episode [1:08] My introduction of Trace Mayer and the issue of Bitcoin as an investment. [2:22] What is Bitcoin and how is it used? [4:22] What is it that gives Bitcoin value? [8:20] How Bitcoin value can be proved instantly by digital means. [10:44] The limited supply of Bitcoins: How do we know it’s true? [13:44] Can Bitcoin be gamed or compromised technologically? [16:46] The risks to Bitcoin. [18:34] Competitors to Bitcoin and why they don’t threaten Bitcoin’s value. [21:00] The incredible advantages that being first gives. [25:15] Could the government make Bitcoin difficult to use? [27:53] Trace’s book and the premise of it. [32:38] How could you get involved in the Bitcoin market? [38:00] Trace’s beginning experience with Bitcoin. [42:13] The risk of losing Bitcoin should the electrical grid go down. Resources Mentioned Bitcoin Knowledge Podcast BOOK: The Great Credit Contraction www.WeUseCoins.com Jonathan's Websites http://TwoBridgesMgmt.com http://www.TheMortarBlog.com Connect with Capitalism.com Website: http://capitalism.com/ On Youtube On Facebook On Twitter On LinkedIn

Every investor wants a good return on his/her money. But is social impact something that you should be concerned about when it comes to where your funds are invested? For some years now certain individual investors have been concerned about the companies included in mutual funds, etc. for the sake of ensuring that they are not financing companies they are averse to supporting. But can it be done on a wider basis? Can social impact be a driving force behind not only a company but an investment fund? That’s exactly what we have in Bridges Ventures and today I’m talking with Brian Trelstad, partner of the firm to find out what Impact Investing is and how it’s becoming one of the more sought after ways of investing these days. What IS an impact investment? One of the basic questions I had to ask my guest today was this: What IS impact investing? Brian Trelstad is a partner at Bridges Ventures, an investment fund that aims specifically at investing in companies that are not only socially conscious but more so, are aimed at particular social issues that they want to address through the success and profits of the company. Those are the kinds of companies that are of great interest to Brian and the Bridges Ventures team because they are not only profitable and viable investment opportunities but are also making a difference in the world on a broader scale. Learn more about Impact Investing on this episode of Capital Gains. Intentionality and accountability make the difference in Impact Investing. When I asked Brian Trelstad what makes one recipient of a person’s funds a charity and another an Impact Investment he was quick to point out two things that define the difference: Intention and accountability. The Bridges Ventures team seeks out investment opportunities that are specifically aimed at a societal problem that the profits of the company are intentionally aimed at addressing. But they also look at the ways the company in question is aiming to support their favored cause and how they plan to be held accountable to do it. It's very different than charity giving. Find out more about the social impact of impact investing on this episode. Is there a trade-off between a company having social impact and being profitable? When you hear of a company like Tom’s Shoes that makes a huge investment in meeting the needs of people in specific areas of the world, do you ever wonder how much the profitability of the company is hurt because so much of their labor, materials, and shipping costs are spent producing products that will realize no profit at all? I asked my guest, Brian Trelstad if there is a trade-off between social impact and profitability and was pleasantly surprised at his answer. You can hear how he responded by listening to this episode. Does an Impact Investment fund bring in the same type of returns traditional funds do? Since this is a show about investing it seemed natural to me to get a feel for the rate of return socially conscious companies realize in comparison to companies that are not intentionally aimed at such causes. But I also wanted to know how an investment fund like Bridges Ventures - one that invests only in socially impactful companies - fares when compared to other more traditional investment funds. You’ll probably be surprised to hear the great rates of return the Bridges team sees through their investment philosophy. You may also be impressed with the extra levels of due diligence in which the Bridges team engages to ensure that every investment is as close to a guaranteed winner as it can be. Brian shares the Bridges Ventures approach to social impact and Impact Investing on this episode. Outline of This Episode [1:03] My introduction of Brian Trelstad, partner at Bridges Ventures. [1:51] What does Bridges Ventures do and how does Impact investing work? [5:24] What exactly IS Impact Investing? [7:05] How does Impact Investing differ from charity? [9:11] What’s the difference between an Impact Investment and an investment in a company that happens to be socially beneficial things? [13:20] How Bridges Ventures evaluates a potential investment. [16:32] What makes a business and its potential impactful enough to be funded? [19:57] What Bridges Ventures brings to the table to help impactful businesses succeed. [23:02] Is there a trade-off between philosophy and profitability? [29:36] How do the financial returns of Bridges Ventures funds compare to others? [35:15] What might make a real estate investment impactful? [37:21] Concern for the people of the neighborhood when developments go in. [39:30] Who Bridges Ventures investments are aimed at and how you can get involved. Resources & People Mentioned Bridges Ventures Tom’s Shoes

John Livesay is known as “The Pitch Whisperer.” He coaches startup founders who are seeking funding in how to best prepare their pitches to get maximum response. He knows the realm of pitching for funds inside and out, not just for the sake of getting money but also in terms of what investors are really looking for in startups and in their founders. If you are at all interested in learning how to be more effective in pitching your idea to investors, or are an investor who is looking to gain more knowledge about how to assess startups and their founders, this episode with John is going to be of great benefit to you. Your idea may be good. But if you can’t effectively pitch it to investors it’s hopeless. There are many product and business ideas that could probably make a significant impact on their target market and truly meet a legitimate need. But they never see the light of day because the people behind the idea are not good at packaging and presenting it to the people who could make it happen - investors. If you want your investment pitch to be the most persuasive and successful it can be, you need to know my guest on this episode, John Livesay. John generously shares a wealth of insight from his work with startup founders and investors to help you understand what goes into a great pitch and how you can become skilled at giving a pitch to investors. Be sure you listen. Best practices for preparing your investment pitch. Many founders or business owners try to pitch their idea to investors without the proper preparation - both of their idea and of themselves. John Livesay has developed a very specific process that walks startup founders through the stages of preparation that can make their pitch compelling and persuasive - but he also helps the person presenting the pitch craft the right stories, develop their personal mindset, and hone their speaking skills to make the presentation go off without a hitch. The number of founders he’s helped get their ideas funded is impressive. You’ll enjoy hearing his story on this episode of Capital Gains. Why you need to pull investors in with stories instead of pushing them with information. You may have some very compelling data or facts that show the veracity and need of your product or service. But if you can’t convey it in a way that shows that the idea will meet real needs and that YOU are the person to make the idea come to life, you will have a hard time convincing investors that it’s worth their time and money. John Livesay insists that every founder he leads through crafting their perfect pitch develop stories that draw the investors in. You can find out how he does it in this episode. The best investment pitch advice: Ask for advice instead of money. One of the things I asked John Livesay on this episode was how startup founders can best go about pitching their ideas to investors. He said the single most important thing is that the founder learns to ask for advice, not money. When you ask for money you’ll typically only receive advice. But when you ask for advice you’ll not only get a lot of questions and interest, you also open the door for the potential investor to learn more about your idea and get excited right alongside you. That often brings investment offers - which is what you want in the first place. Outline of This Episode [1:02] I’d like you to meet my guest today, John Livesay - the Pitch Whisperer. [3:00] How John came to realize that startup founders needed help pitching their ideas. [8:44] The types of startups John has worked with and what he’s looking for. [9:30] The process John’s clients walk through - 8 online modules. [11:12] How John vetts his clients. [13:03] The types of things John’s clients learn in his process. [16:49] Best practices for preparation for a pitch or presentation. [18:10] What investors should be looking for in a potential investment opportunity. [22:44] What is important when it comes to the value of the team and the value of the concept? [23:24] How you can better prepare your pitch and identify potential investors. [25:28] Why you need to pull people in with stories instead of pushing them with facts. Resources & People Mentioned www.JohnLivesay.com Judy Robinett - www.JudyRobinett.com The Successful Pitch podcast www.Graphlock.com Jonathan's Websites http://TwoBridgesMgmt.com http://www.TheMortarBlog.com Connect with Capitalism.com Website: http://capitalism.com/ On Youtube On Facebook On Twitter On LinkedIn

If you want to know how to become an angel investor you need to hear this conversation. I chat with Kathleen Murray, a businesswoman and angel investor who stepped into the world of angel investing on her own, supporting a startup company in the wine industry that she still works alongside today. Interestingly, she isn’t sure she would invest in the company again if she was starting over and you can hear her explanation in our conversation. Kathleen is a person who is very clear about the risks and rewards of angel investing and has a great way of describing the process, including how to get started as an angel. If you’re interested in the possibility of investing in startup companies, Kathleen has a helpful perspective on her own journey that can help you consider all the options, so be sure you listen. Why would you NOT invest in a company you’ve already invested in, if you could do it over? In this conversation with Kathleen Murray, an experienced angel investor, I learned how she got started in angel investing through a relationship with a company in the wine industry. In the course of our conversation she said that if she had it to do over again, she isn’t sure she would invest in the company in the first place. Why is that? It has to do with the long-term nature of the investment, the constant infusion of cash that’s been required to keep the company profitable, and the lack of a clear exit strategy for her investment. You can hear all the details on this episode of Capital Gains. Are angel investments good for income or is all about the exit? One of the things I was curious about when talking with Kathleen Murray was whether angel investments are typically income producing or if the profitability is typically realized at the end of the investment period. Kathleen was quick to point out that seldom is a startup company able to realize the kind of profits that enables investors to be remunerated in an ongoing manner. The funds that are put into the company are used to make it become profitable, not to enable quick profits - and there is a very clear difference. You can hear Kathleen’s clear and simple way of explaining the role of an angel investor on this episode. Who should and should not get involved in angel investing? If you’ve ever wondered whether or not angel investing is for you, my guest Kathleen Murray has some very clear questions she suggests you ask yourself to determine if angel investing is a good fit. Do you have extra income you don’t mind losing if a deal doesn’t work out? Are you excited about business and supporting new businesses? Are you eager to help new entrepreneurs who have great ideas? Are you willing and able to provide counsel, advice, and coaching? These are just some of the questions Kathleen shares so be sure you listen to get the entire list of things she says you should consider. If you want to become an angel investor you need to go in with your eyes wide open. Kathleen Murray says that angel investing is not for the faint of heart and not for those who want a passive investment. Angel investing requires a good deal of time - in the beginning stages it's spent going through a thorough due diligence process to ensure the investment is in your best interest, and once the investment is made, walking alongside the company founders helping them think through and navigate the challenges of starting a new business. Kathleen does a great job of outlining the commitment and time it takes to be a truly helpful angel investor on this episode. Outline of This Episode [1:02] My introduction of Kathleen Murray of The Executive Forum Angel Investment Group. [2:10] How Kathleen got into angel investing in the first place - and her first experience investing in a startup company.. [5:00] The 3 main things Kathleen considers when checking out an investment opportunity. [8:40] Are angel investments good for income or is it all about the exit? [11:14] Who should and should not get involved in angel investing? [14:08] How can an investor get involved in an angel investing group? [16:23] How Kathleen founded The Executive Forum Angel Investing group. [17:34] The types of Kathleen likes and doesn’t like. [20:30] The reason Kathleen looks for companies to be addressing a real, lasting pain point. [24:12] A disappointing experience Kathleen had that you can learn from. [25:56] The importance of going in with your eyes wide open if you want to become an angel investor. [27:45] What’s the difference between an angel investor and someone who invests money in a friend’s company? Resources & People Mentioned Kathleen on LinkedIn: https://www.linkedin.com/in/kathymcmorranmurray www.McMorranStrategists.com

If you’ve heard the term “angel investor” but haven’t been sure exactly what it’s about, this is the conversation for you. On this episode, I chat with Jim Sullivan, an experienced businessman who has only been working as part of an angel investing group for just over two years at the time of our conversation. He’s the perfect guy to explain what angel investing is, how investing groups come together, how they assess potential investment partners, and what they are aiming to achieve in the end. I think you’ll really enjoy hearing Jim’s perspective on what it means to be an angel investor. He’s even got some advice on how to get started in angel investing, so be sure you make the time to listen.  Why would an individual investor join an angel investing group? Of course, anyone who has the money to invest in startup or first stage companies is able to do so. But doing so on your own can be very risky. An angel investing group is a partnership of individual angel investors who agree to work together to consider, assess, and advise early-stage startup companies in search of funding. The members of the group share the load of examining the risk VS reward of investing in the various companies and together make the decision to invest or not. It’s a great way to share the burden needed to make truly smart investing decisions. Jim Sullivan of The EF Angels investing group helps us understand how it works and is my guest today, on this episode of Capital Gains. How does an angel investing group find its investment partners? When you consider that there are always new companies looking for investment capital and that there are always investors who are looking to invest in promising new ideas and technologies, it may seem that getting those two parties together is a simple thing. But it’s really not. On this episode of the Capital Gains podcast, Jim Sullivan shares how he and his angel investment group make the first contact with potential startups through personal connections, introductions, and more. It’s proof that relationships and connections matter in business and you can hear how Jim and his group follow up with those first-time introductions to establish investment partnerships, so be sure you listen. Why does an angel investing group perform “due diligence?” Imagine someone you don’t know approaching you at the local coffee shop. The person tells you about his brand new company, the incredible ways he believes it will change a specific high-tech field, and asks if you have the funds to become an investor in what he’s doing. Would you be interested? Most investors wouldn’t simply because they don’t know enough about the person, his company and product, what stage of development and marketing he’s at, and is likely at least a bit ignorant about the market the product or service is targeting. In short, there’s been no  “due diligence” performed to ensure that the risk is one that is acceptable. Jim Sullivan is my guest on this episode and he explains what his angel investing group does in terms of due diligence so you can better understand how an angel investor makes decisions to invest or not invest. The first things to consider if you want to be an angel investor. When I asked my guest, Jim Sullivan what he recommends for the person who is intrigued by the idea of becoming an angel investor, he responded by saying that the first thing a person needs to consider is that they have a certain “risk threshold” - a level of risk beyond which they are unwilling to go. He recommends you know what your personal risk tolerance is and that you get your head around the idea that angel investing has no guarantees. You have to be prepared for the possibility that in every deal you may walk away with none of the money you’ve invested. It’s for this reason that Jim believes that angel investing is not for everyone and why he shares the kind of temperament that he believes is most suited to being an angel investor, on this episode. Outline of This Episode [0:41] My introduction of Jim Sullivan, angel investing, and more. [1:03] Why Jim sees himself as a builder, investor, and operator. [2:17] How Jim entered the angel investing field. [5:44] The point at which Jim began investing his own funds in companies. [7:21] How do deals come in to an angel investing group? [9:31] The criteria Jim looks for in a potential angel candidate company. [15:29] The next steps with an angel group. [21:30] What does “due dilligence” mean within an angel investing group? [27:27] What are good things for startups to spend their capital on? [32:13] How to balance gut reactions from disciplined approaches. [36:03] The different types of dilution in angel investing and their effects. [41:00] What’s a disciplined approach to getting into angel investing? [46:53] How you can connect with Jim. Resources & People Mentioned Connect with Jim on LinkedIn JMS(at)HGHoldingsLLC.com The EF Angels GUST Point Pickup StateBook Jonathan's Websites http://TwoBridgesMgmt.com http://www.TheMortarBlog.com Connect with Capitalism.com Website: http://capitalism.com/ On Youtube On Facebook On Twitter On LinkedIn

Creative real estate investing is not a typical concept you hear about. But Nav Athwal is not your typical tech founder. He has over a decade of experience in real estate as an attorney, broker, and investor. Nav lectures at UC Berkeley Law School and the Haas School of Business, is a frequent contributor to Forbes, and is often featured on CNBC, Bloomberg, and Fox Business. In this episode of the Capital Gains podcast, I talk with Nav about his online real estate investment platform RealtyShares. It’s created to bring investors and real estate companies together to make investments and funding seamless. We talk about how the platform was built and got started, how it works, and the kinds of people who best benefit from being a part of the platform. Crowdfunding for real estate investment and funding? Yes. It’s true. It was only a matter of time before the investment world - and in particular the real estate investment world - caught up with the way that technology and crowdfunding have changed so many other fundraising ventures. RealtyShares is an online platform that enables investors and real estate companies needing funding to come together to cooperate on vetted, verified deals that are poised to make money for everyone involved. On this episode, you can hear how Nav Athwal and his team have put the platform together and why Nav believes it’s on the cutting edge of the real estate investment strategies of the future. Invest in real estate for as little as $5,000. Really. Talk about creative real estate investing - this is it. When you sign up for a free account to become an investor with RealtyShares you are able to invest in amounts as low as $5,000 in projects or deals that have submitted all their details and financials - about the deal and the company overseeing it. Those companies are vetted and eventually approved by the experts at RealtyShares. It’s a great way to get started in real estate investing that is free of much of the risk that can happen in unverified deals. Nav Athwal shares how the RealtyShares platform is growing by leaps and bounds because of its simplicity and ease of use for investors, on this episode of The Capital Gains podcast. RealtyShares is making it possible to get into real estate investing much sooner. The average real estate investor has to work hard to save up a significant chunk of cash before he/she is able to get in on an investment deal. But Nav Athwal and the team at RealtyShares has made it possible for would-be investors to invest as little as $5,000. It’s possible through the platform’s ability to pool funds from a variety of investors to fund projects that exist within the RealtyShares database so that the real estate developer or company is able to get the funds they need from a variety of sources. The RealtyShares platform only earns 2% of the initial amount invested and the returns on the actual project are what provide the dividend to the investors. Find out more about how RealtyShares works on this episode. Diversified real estate investing with only $5,000? Yes, it’s possible. Because the RealtyShares platform combines the investments of many individuals or entities to fund development projects, they are able to spread out the funds of individual investors to mitigate risk. In other words, the money invested is used in more than one project. That makes the possibility of losing an entire investment smaller and the returns more likely. Of course, the RealtyShares team cannot and does not guarantee specific returns but the concept has built-in components like diversification that make it much safer for the average investor. RealtyShares is a great idea and is poised to change the real estate investing world forever. It’s truly creative real estate investing. Outline of This Episode [1:08] My introduction of Nav Athwal of RealtyShares. [2:05] How investors and real estate companies are connected through RealtyShares. [3:19] Nav’s background as engineer, attorney, and real estate investor. [7:40] How Nav put together the plan and team to launch RealtyShares. [10:36] What the landscape was like when the platform was first started. [16:45] How the initial fundraising effort was so successful (convincing investors). [29:20] What kind of investors can use the platform and what’s the minimum investment? [34:40] Are “family office” investors looking for different things than typical investors? [37:14] The RealtyShares diversified fund and how it works. [41:51] Who is an ideal individual investor for RealtyShares? [44:50] How you can connect with Nav. Resources & People Mentioned Realty Shares http://Twitter.com/NavAtwal invest@realtyshares.com or raise@realtyshares.com   Jonathan’s Websites http://TwoBridgesMgmt.com/ www.TheMortarBlog.com  

When you think about real estate development you typically think of the big apartment complex being built in the trendy part of town or the company that’s putting in a new neighborhood down the street. It seems overwhelming to think of taking on a project of that magnitude, but like anything else in life, you can learn how to do it if you approach it the right way. Today’s guest is Steve Olsher, an online personality, author, and entrepreneur who has spent a good deal of time as a real estate investor - and he did so by organizing development projects like the ones I mentioned earlier. How did he do it? Steve tells the story on this episode of Capital Gains. Making money through real estate development 3 different ways. As Steve Olsher got started in real estate development he spent time watching what people did who had been doing it for a long time. Through observation and lots of questions, Steve discovered that there are ways to make money at almost every stage of a development project - from the initial closing all the way to management or sale of the project. When I heard him say that it got my attention so I asked Steve how it’s possible. If you want to hear his answer you’ll have to listen to this episode. And I promise you won’t be disappointed. Steve sees real estate investment opportunities every day as he drives down the street. Steve Olsher lives in southern California, one of the most expensive real estate markets in the United States. Yet, every day as he drives down the street he sees development opportunities that he is confident could make money. How could that be true? Steve’s background in real estate development is what enables him to see how the changes in neighborhoods and communities, coupled with the existing properties can be leveraged into multi-family unit properties that could even include retail space. That kind of development not only meets the needs of the people moving into a popular area like southern California but it also spurs economic growth. You can hear more about Steve’s insights into real estate investing through development, on this episode. Here’s how you can get started in real estate development. After hearing Steve Olsher’s story on this episode I was very curious how he would advise those interested in the possibilities offered through real estate development to get started. So I asked him. His answer was very practical. He says if he was starting all over he’d first do the work it took to meet people who are already overseeing developments in his area. He'd get to know them and find opportunities to come alongside to watch and learn. The benefit of seeing the development process in action when you have no cash involved is unparalleled and powerful. Learn how to make those connections that will help you take the first steps into real estate development by listening to this episode. Steve Olsher’s new idea for monetizing small followings on social media. While Steve Olsher has had a lot of experience investing in real estate developments, that’s not all he’s done. Most people know him from his books or his podcast. It’s in that realm that Steve has been thinking most recently. He’s starting to believe that a handful of people with smaller followings on social media could leverage their small following in a cooperative effort with others who also have small followings. Their combined efforts could produce a monetary benefit as a result. He’s not giving away a lot of details at this point but Steve expects that he’ll have something to show the public by the end of 2016. If you’d like to hear more of the ideas Steve’s mulling over, you can hear all about it on this episode. Outline of This Episode [1:08] My introduction Steve Olsher. [1:34] Who Steve is and what he does (from his own lips). [3:35] How Steve followed each step that was put in front of him over time. [7:17] The path from teen club owner to liquor sales online. [13:40] How Steve made the most of his ownership of liquor.com after the bubble broke. [16:59] Steve’s steps into writing and radio as a means to add value. [22:15] Where Steve’s entrepreneurial spirit comes from (his opinion). [26:20] The importance of learning the difference between what you want and what you need. [31:20] How Steve got started in real estate investing. [37:20] How developers can make money on deals in 3 different ways. [42:27] The things Steve sees daily that are investment opportunities. [44:40] What Steve suggests for those wanting to get into real estate development. [47:10] Ideas for monetizing a small social media following. [50:24] Steve’s secret ambition (that will no longer be secret after he shares it). [52:30] The best place to reach out to Steve if you feel your story would fit his podcast. Resources & People Mentioned Steve’s Book: What Is Your What? Contact Steve about his new opportunity: Steve(at)SteveOlsher.com BOOK: Journey to You BOOK: Internet Prophets www.SteveOlsher.com - Steve’s personal website Reinvention Radio Podcast (Steve’s show) www.Liquor.com Prodigy - Compuserve - AOL (early web companies) Simon Sinek Lewis Howes Jordan Harbinger   Jonathan’s Websites   http://TwoBridgesMgmt.com/ www.TheMortarBlog.com

Multi-family real estate was not the first real estate investing experience for John Cohen. He has been investing in real estate since 2010 and started out purchasing tax deeds and tax liens, doing $3,247,000 in real estate transactions in 2013. He switched his focus to multi-family properties and joined a group that closed $70 million worth of transactions in one year. Prior to his involvement in real estate, John was a licensed (series 7 and 63) stockbroker but decided that real property investments were far less speculative than the stock market. On this episode, you’ll get to hear why John’s company invests in multi-family properties exclusively, how MF properties are safer investments in a turbulent economy, and what he recommends to those who are eager to invest in the multi-family niche of real estate. Why is multi-family real estate such a great investment? Many investors who are trying to build consistent monthly cash flow understand the advantages of rental properties. There's nothing better than having tenants pay your mortgage as you make money on their occupancy of the property they’re paying off. But what happens if the property winds up vacant for a period of time? What happens if the renter is delinquent on their rent payments? Headaches, that’s what! Multi-family properties are almost immune to those issues because the overhead and cost of the property is spread out over many streams of income - the individual renters. On this episode John Cohen will tell you why multi-family real estate is so attractive to him and how you can benefit from being a multi-family investor. How do you find a good multi-family property? John Cohen has been investing in multi-family properties for some time. That makes him the ideal person to tell us how to find and invest in multi-family units. On this episode, he gives away his specific strategies for researching a potential real estate market, the exact tools and websites he uses to do his analysis, and drives home the importance of building a good network of brokers and professionals on the ground in the prospective market where you're going to invest. You won’t hear hands-on, relevant advice like this anywhere else, so be sure you listen if you’re at all interested in investing in multi-family real estate. Why you need to do your homework on location in the market you’re considering. If you’re considering a multi-family investment property in a city that is not familiar to you, say in Charleston, SC, what are the steps you should take to make sure you understand the local economy and real estate market? John Cohen says there’s only so much you can do online or over the telephone. You’ll eventually reach the point where you need to take a trip to the prospective city to look things over yourself. When you do, there are people you need to meet, specific questions you need to ask, and certain data you’ll need to accumulate from local offices. If you don’t know how to do those things, you’re in luck. John Cohen is on this episode to walk you through it step by step. How can you invest in multi-family properties if you’re brand new to real estate investing? One of the questions I asked John Cohen toward the end of this episode of the Capital Gains podcast is how a person who has little experience, and maybe even a smaller amount of cash to invest, can actually get into some real estate investment deals. John’s company specializes in setting up multi-family investment deals and includes a variety of investor types in those deals, so he was happy to give us the full scoop on how it can be done. If you are at all interested in investing in multi-family real estate, John’s got some valuable information for you. Outline of This Episode [1:08] My introduction of my friend and business competitor, John Cohen. [2:17] What are emerging markets and “value add” properties? [3:47] John’s road to real estate investing. [7:20] What is a Cap Rate and why does it matter in real estate investing? [11:00] What is meant by a “syndication deal?” [16:32] Why John focused on multi-family properties over everything else. [24:19] The types of markets John invests in and the things that attracts him to them. [26:00] How John researches possible investment areas (specific tools he uses). [29:00] Building relationships with brokers and investors in a new area. [32:15] Putting himself on the chopping block, getting outside his comfort zone. [35:53] The advantages and disadvantages of direct ownership Vs being a passive investor. [38:41] How beginning investors can get into REI deals. [45:07] Cautions about working with property managers (and benefits of good ones). [46:25] What is tax deed and tax lien investing and how does it work? [49:57] The importance of a big “why” in real estate and what John sees as his “why.” Resources & People Mentioned JC Property Group, Inc - John’s company Contact John Cohen: JohnC(at)JCPropertyGroupInc.com www.EcoDevDirectory.com U.S.Census Data Bureau of Labor Statistics Jonathan’s Websites http://TwoBridgesMgmt.com/ www.TheMortarBlog.com

The venture capital world is growing by leaps and bounds and companies like Flybridge Capital Partners are fueling the tech and innovation behind many of the things that are transforming the world. In this conversation, I talk with Jeff Bussgang, general partner at Flybridge Capital Partners about a variety of things surrounding the venture capital space, including how he got started, what his company looks for in a startup company, and how they assess the leadership and team to make a wise early stage investment. What IS an early stage investment company? Early stage investments are nothing more than the money provided to promising companies that are not yet producing their products or services but have made significant headway toward the development or distribution of it. The money they receive is often referred to as “seed money” - the money used to enable the development, marketing, and progress of the company to move it toward profitability and sustainability. On this episode, Jeff Bussgang shares how his interest in the entrepreneurial world led him to become general partner of an early stage venture capital firm, and why startup funding is so exciting. What is a venture capital investment firm looking for in a startup? When I asked Jeff Bussgang what the team at Flybridge Capital Partners is looking for in an early stage company he gave me a number of criteria they look at to show them there is promise in the company: Innovative potential, leadership and team, the Pied Piper effect, and more. If those sound a bit vague, don’t worry. As you listen to this episode you’ll get a very clear understanding of what each of those things is and why Jeff and his team consider them vital to discerning a good investment from a bad one. It’s all on this episode of the Capital Gains podcast. The Pied Piper effect is something startup founders need - at least in this case. If the team at Flybridge Capital Partners is going to get behind a startup financially they want to see that the primary leader of the startup company possesses what they call a “pied piper” quality. That means he/she is a person who is a natural leader and attracts the interest of people to the projects they are working on. Jeff Bussgang points to the fact that we all know people whose ventures and projects are naturally of interest to us - and it’s because of who the person is and how they are wired that we are attracted. You can almost smell the excitement and potential because they are a person who tends to make things happen. Find out more about this elusive but tangible leadership quality, on this episode. If you can’t connect with me through a mutual connection, I’m not that interested. Jeff Bussgang understands that networking and connections are a huge advantage when it comes to making a company or cause successful. So much so that he’s generally unwilling to have serious conversations about funding a startup if their team did not approach him through some kind of mutual connection. He’s convinced that people who know how to make and utilize connections are also the people who will be able to build the relationships that will equip their company for future success. You can hear Jeff make the case himself on this episode. Outline of This Episode [1:04] Introduction of this week’s guest, Jeff Buskin. [1:54] The types of companies Jeff’s group invests in and what they look for in a winner. [6:50] The “winnowing” process Flybridge uses when evaluating potential companies. [10:50] Signals that a founder or leader is a “Pied Piper” who can build the company. [13:18] What does it mean to be an “early stage” investor? [18:54] Niches Flybridge tends to invest in. [21:58] Sectors on the horizon that Jeff and his team are watching carefully. [24:00] Why Flybridge has a geographic bias toward Boston and New York. [25:23] Why relationships matter so much to Flybridge. [31:23] Jeff’s path to Flybridge. [36:58] The tendency toward entrepreneurism: Is it innate? [39:03] Successes the company has had and what they have learned. Resources Mentioned Flybridge Capital Partners - Jeff’s investment company. On LinkedIn On Facebook On Twitter On Pinterest Code Academy Bitsight DataXu MongoDB Jibo Robotics Zest Finance Omni Physical Storage Upromise http://TwoBridgesMgmt.com www.TheMortarBlog.com   Connect With Capitalism.com Website: http://capitalism.com/ On Youtube On Facebook On Twitter On LinkedIn

If you want to learn how to network with the people you most need to meet, nobody can teach you how to do it more effectively than my guest today, Judy Robinett. I came to know about her through reading her book, “How To Be A Power Connector.” Through the book, she opened my eyes to a systematic way to connect with people that influenced my thinking significantly. I invited Judy on the show to talk about her book, but also to share her experience in the angel investing niche - which is significant. Those are two ways you’ll benefit greatly from this conversation, so I hope you take the time to listen. As soon as you learn how to add value to people quickly, you get noticed. Networking used to be nothing more than going to business meetups and exchanging business cards. But even back then, those who knew the “secret” recognized that it wasn’t about being at the meeting to blast out your name and business to others, it was about adding value. Judy Robinett says that those who learn to add value to people quickly, get noticed quickly - and it’s that kind of attention that puts you on their radar in ways that can move your business endeavors forward. Judy unpacks that principle and a whole lot more on this episode, so be sure you listen. Do you know how to get a warm introduction to someone you need to know? It’s so much easier to start a conversation with someone you need to meet if someone they already respect or work with introduces you to them. That’s called a “warm introduction” and it’s not always something that’s easy to come by. But Judy believes that anyone can learn how to get those kinds of introductions - to almost anyone on the planet - if they know how to go about it. On this episode, she shares her two “golden questions” and tells you how to use them to make connections with the people who matter. You won’t want to miss this simple but powerful tip. It’s so obvious it’s embarrassing that I hadn’t thought of it before. Anything you need is attached to people. You need to connect with them. Judy Robinett points out that since the average person knows 600 people, it’s likely that almost everyone you meet is connected to someone that would be beneficial to you or your business. Said another way, the resources and introductions you need the most are only a few relationships away. But you have to know how to go about discovering those relationships and how to go about getting the warm introduction you need. Judy is a pro at doing that and in this conversation he tells me some of the ways she has gone about connecting with high profile people in all industries, government, and more. Don’t ask for help right away, ask how YOU can be of help. One of the foundational principles of power connecting is that you play the long game. Patience is indeed a virtue. Find out what other people do. What are their dreams? Then think of the ways - through your resources and connections - that you can advance what THEY are doing. In this way, you become an asset to them that they won’t easily forget. When the time comes that you need to ask for a favor or introduction, they’ll respond in light of the value you’ve already provided to them. In other words, they’ll trust your motives because you’ve already been generous to them - and they’ll be eager to help. Judy Robinett is my guest today and she shares a lot more tips like this one, on this episode.     Outline of This Episode [0:24] My introduction of Judy Robinette and this episode. [1:38] Judy’s path to becoming an entrepreneur and influencer. [6:00] How Judy learned how to develop her power connecting skills. [8:22] The 5-50-100 rule for establishing and maintaining connections. [10:30] Judy’s two golden questions for strategic networking. [12:52] How should a startup founder go about finding capital funding? [16:30] What is a warm introduction and how do you receive one? [19:59] What is a “good deal” to an angel investor? What are they looking for? [22:37] How an advisory board fits into a startup/investment scenario. [27:20] What an investor could do to become familiar with angel investing. [31:31] What it means to do “due diligence” when checking out a startup company. [34:47] What are angel investing teams looking for in investing partners? [41:26] How to respond to a deal that comes to you privately. [44:27] Judy’s biggest mistakes in angel investing and what she learned from them. [47:12] Big projects Judy has in the works. [49:38] How you can connect with Judy. Resources & People Mentioned www.JudyRobinett.com Crack The Funding Code (Judy’s funding course) Judy(at)JudyRobinett.com BOOK: How to Be A Power Connector SkullCandy BOOK: Winning Angels CircleUP Quora DaisyClip www.TheMortarBlog.com

Seed funding in a specific niche. My guest today is Razi Karim, CEO of Bayside Venture Partners. Razi and his team focus specifically on investing in early stage companies that they see as potential successes in T.I.M.E. - Technology, Intelligence, Media, and Entertainment. Razi sees their company as a “Micro VC” company, an early stage accelerator. On this episode, you’re going to hear Razi describe the many ways his company comes alongside early stage companies to both advise and fund them toward the path to success. Invest early at low cost. That’s the strategy that Razi and his team follow as they consider startups that are in need of early stage investing. They want to make wise decisions about whether to invest in the company of course, but once they do make the decision to fund a company they want to do so in a way that allows them to ride the wave of success as the company raises funds, builds out its infrastructure, onboards users or clients, and begins to make a splash. You can hear how Razi guides his company through everything from initial conversations to negotiations, to full on seed funding in an early stage company, on this episode of the Capital Gains podcast. Red flags in startup companies that will prevent seed funding. Naturally, every seed funding source is going to have its own criteria for what would remove an early stage company from funding consideration. Razi ????? and his team have discovered that there are a handful of things that indicate that the company or its team are not quite ready for the kind of support that Bayside Venture Partners (Razi’s company) are able to give. If you’re an early stage company that will eventually seek funding, you’d do well to know Razi’s list so you can do everything possible to be an attractive opportunity for your investors when that time comes. You can hear his suggestions on this episode. How should you approach a possible investor to seek seed funding? The world of venture capital and seed funding is new to most startup founders so it’s good to have an experienced voice that can speak to the issues involved. Today’s guest, Razi Karim gives a handful of suggestions to teams that are seeking or will soon be seeking investments in their early stage company. His suggestions range all the way from team dynamics and business model to already existing customers or users, as well as the attitudes he looks for in the leaders of new companies that tell him they will be a great partner to work with. If you have funds to invest in early stage companies, what should you do? Many people who are actively investing are tired of the stock market, don’t believe in the return on bonds, and are open to other options. If that is you, it’s entirely possible that you could invest your funds in early stage companies. Razi Karim suggests that you find a group that invests in companies like you are interested in that has a track record of experience and good returns. The company's team should also have an eye toward identifying and evaluating the talent and opportunities that early stage companies bring to the table. You can learn more about how you can go about seed investing, on this episode of The Capital Gains Podcast. Outline of This Episode [1:07] My introduction of Razi Karim and his company Bayside Venture Partners. [2:04] What is a Micro VC? [2:33] Understanding the terms used in venture capital investing. [5:14] The types of companies Razi looks at to invest in. [7:58] The growth and status of Razi’s investment company: Invest early at low cost. [10:59] Razi’s process of looking for and investing in an appropriate company. [14:46] Signals Razi looks for in potential investment opportunities. [18:10] The percentage of deals Razi takes on compared to those he considers - and the things that makes a company stand out as a winner. [19:33] The product VS the team. Which is more important? [23:41] The advisory services Razi’s company provides and where it fits as a service. [27:50] How Razi got into angel investing in the first place. [31:35] What is an accelerator and how does it work? [34:26] How Razi advises startup founders to approach possible investors. [36:44] What should a person do if they have money to invest and are curious about venture capital investing? [40:50] Lessons learned on the journey. [43:20] The vision and future of Razi’s company - as he sees it. Resources & People Mentioned Razi Karim’s company - www.Bayside.io RK (at) baside (dot) io www.TwoBridgesMgmt.com www.TheMortarBlog.com  

Becoming a successful entrepreneur. It’s a vague dream most of us have that we’re not really sure how to define. We have that entrepreneurial itch, we’ve even build a small business of our own, but we don’t really know what it takes to make it to a level of true success. Tony Coretto is a guy who knows what it looks like and what it takes to achieve it. Tony and his partner began a business together without a lot of experience or savvy in the world of startup businesses. But as they learned in the school of hard knocks they discovered some timeless principles and strategies that made their business flourish. So much so that they sold it for big money and Coretto is now investing in real estate, dabbling in angel investing, and lots more. Building a marketing firm from the ground up with little experience. Coretto and his partner didn’t really know what they were doing when they first started their marketing firm. They had mostly done contract work for others and inherited a big client from someone they had worked with in the past. That client opened their eyes to the possibilities of building something more significant and the journey began. On this episode of the Capital Gains podcast I’m speaking with him about the challenges they faced as the business grew, what they did to find the right team members, the psychological challenges of transitioning from part of the team to leader of it, and much more. Anyone who wants to become a successful entrepreneur will learn a lot from this guy. He is one. It’s true. You need to hire slowly and fire quickly. As his company was growing, Coretto and his partner realized that the main thing holding them back from more growth was the two of them. They were the only ones doing the work for their clients and simply had no more bandwidth to add more. Their first step was to outsource some of the work to contractors, which worked for a while and helped them grow to the next level. But in time they came to see that full-time employees were the next step toward greater success. When they begin the process they learned very quickly that you have to take your time to ensure that you hire the right people. And if somebody is not working out, you need to do something about it quickly. You can hear the hard lessons learned from this successful entrepreneur’s climb to the top, on this episode. From trying to buy businesses to trying to sell his. When his business kept growing, Coretto and his partner began to entertain ideas for how they could grow their income and one idea was buying other related businesses. They were just at the point of exploring those possibilities when other business leaders began approaching them about buying their business. It wasn’t something they had thought about but figured they’d better consider it. Long story short - they sold the business for a tidy sum and today are doing the things they love to do - travel, family time, and more. Sounds like a dream entrepreneur success story, doesn’t it? You can find out how they did it, on this episode. What do you do after you sell your successful company? For my guest today that was a very valid question. He actually enjoyed building and running his business and felt that he had to find something to engage in that kept him sharp and built toward the future. He had already begun investing in real estate a bit and decided to crank up his investing quite a lot. That’s lead to the creation of a holding company, many rental properties, and possible land and real estate purchases in Costa Rica. You can hear what Corretto is up to and how he got there, on this episode. Outline of This Episode [0:25] My introduction to today’s guest, Tony Corretto. [1:52] Why I wanted to have Tony on the show. [2:20] Tony’s background and how he got into business. [6:11] How Tony and his partner landed their first clients and built repeatable systems. [11:11] How did they guys know to build the systems that made things work? [13:00] The realization that team members had to be hired. [15:21] How hiring team members changed the business. [24:14] Advice for those about to take on new employees. [32:17] From growth and success to the decision to sell. [35:20] Tony’s role once they sold the company and the desire to move on. [37:09] The first steps after selling the business. [38:40] The projects Tony is working on now: A holding company. [45:42] Tony’s future plans for real estate investments - possibly in Costa Rica. [50:03] Angel investment opportunities and the challenges faced. [1:02:19] Tony’s latest “Sharpen the Saw” project. [1:04:06] Tony’s personal “secret ambition.” [1:05:18]  How you can connect with Tony. Resources & People Mentioned BOOKS: The 7 Habits of Highly Successful People TCORETTO(AT)optonline(dot)net Connect With Capitalism.com Website: http://capitalism.com/ On Youtube On Facebook On Twitter On LinkedIn  

Medical marijuana is big business. Or at least it’s going to be. Think back to what happened to the alcohol industry once prohibition was lifted. Many companies sprang up overnight and the financial boom it was for smart investors was unheard of. The medical marijuana industry is poised to present a similar opportunity - only this time it offers an additional bonus - the use of cannabis as medicine is truly helping people (unlike alcohol). On this episode, Jonathan Twombly chats with Asher Troppe of Tress Capital about the opportunities that exist now and others that are coming as cannabis is becoming legal across the United States and even the world. Isn’t it just pot? Or is there really such a thing as medical marijuana? It’s easy to be skeptical about something that has come on the scene as quickly as the legalization of marijuana has. And with recreational use being pushed forward right alongside the medicinal uses it’s no wonder the average American is slow to accept the idea. But research and actual case studies are showing significant medical uses for marijuana that can’t be denied and those who are interested in investing in things that truly help others have an opportunity to both help and profit financially at the same time. This episode unpacks the legal and medical issues and paints a great picture of the opportunities that exist for savvy investors. Many medicinal cannabis related companies are already thriving. Every state in the United States has its own laws and guidelines for the use and production of medicinal cannabis, but it’s only a matter of time before common standards are created and enforced regarding the potency and use of it as medicine. The State of California has already passed a law that will soon require laboratory verification of the potency of medicinal marijuana. There are already companies that conduct lab testing to determine THC levels in medicinal cannabis - and they only serve about 5% of the medicinal market at this time. What’s going to happen when the regulations go into effect? Those companies will boom. The good news is, your investments could too. Find out more on this episode of Capital Gains. Tress Capital exclusively invests in medicinal marijuana based companies. It stands to reason that as regulation and law begin to legitimize the use of marijuana as a medicine that investment companies will step in to provide funding for the cannabis related companies out there and opportunities for investors. Tress Capital is one of those investment companies and on this episode you’ll get to hear from co-founder Asher Troppe about how Tress Capital is carefully positioning itself as one of the leading investment firms in the industry - and doing so from the standpoint of credibility and trust. It’s a great and revealing conversation. Where is the cannabis industry headed in the next 5 years? It’s impossible for anyone to predict exactly what will happen in any industry. Investment forecasters have proven that to be true over the years. But all signs point to rapid and continued growth for the cannabis industry for the foreseeable future. With legalization spreading across the U.S. and more effective regulations coming into place each year, the need for companies and capital in the industry are going to become more and more in demand. Find out how you can get in on this growing industry at almost the ground floor, on this episode of Capital Gains. Outline of This Episode [1:52] Who is Asher Troppe? [3:01] The legal issue currently surrounding cannabis use. [3:34] Comparing legal usage numbers to medical usage numbers. [5:07] How cannabis is being used medicinally these days. [9:15] How are cannabis dosages regulated when used medicinally? [11:38] Where is the marijuana sourced for medicinal products? [15:11] The state of the U.S. banking industry as it relates to cannabis financing. [19:52] Asher’s background and how he got into this field. [27:01] How you can personally research this issue. [28:08] What Tress Capital is investing in. [39:15] How Tress Capital is institutionalizing their approach. [43:49] Asher’s view of where the cannabis industry is going in the next 5 years. [48:08] What’s on the horizon for Tress Capital? [49:45] Advice for those wanting to invest with a capital group like Tress Capital. [51:29] How a company in the cannabis industry should approach Tress Capital. Resources & People Mentioned Tress Capital The Cole Memo SC Labs www.TwoBridgesMgmt.com www.TheMortarBlog.com Connect With Capitalism.com Website: http://capitalism.com/ On Youtube On Facebook On Twitter On Youtube On LinkedIn