You should then determine which market you will be investing in. Now, most people will scratch their heads and say, “Edwin, are you talking about the Stock Market or the Real Estate Market?” In the world of sophisticated investors, we understand that there are THREE markets you can invest in. Yes THREE. While the general public understands the term “Market” refers to the Stock Market, I want to expand and deepen your understanding. Think of each of these Markets as an “umbrella” and under these umbrellas there will be different primary assets, sub-assets, and strategies to invest in these markets.

Takeaways

- Education is crucial in real estate investing, particularly understanding the capital stack and the different markets and asset classes.

- Being comfortable with being uncomfortable is essential for success as an entrepreneur.

- Surrounding yourself with mentors and a supportive network is crucial for guidance and accountability.

- Grit and determination are necessary qualities for overcoming challenges and achieving goals. Patience and wisdom are crucial in decision-making as an entrepreneur.

- Continuous education and surrounding yourself with mentors are essential for success.

- Taking action, even when you're not 100% ready, is important for growth.

- Understanding the difference between debt and equity investments is crucial in real estate.

- Investing in syndications carries risks, and proper education and due diligence are necessary.

- Being remembered for generosity and pushing forward the gospel is a meaningful goal.

I trust this will add value to your and your journey to building, protecting, and preserving your families generational wealth.

Debt is also very well known by every investor. Most investors see debt as a way to leverage their existing equity. For example, if an investor has $1,000,000 in equity, they could generally leverage that equity 4x. So, in this case, someone could get a loan for $4,000,000, put down their $1M, and buy a $5M property. Simplistic, but the point is made.

I believe that education is critical. Knowledge and awareness of these 5 categories will go a long way in helping you truly diversify your investments, stay ahead of the investing cycles, and be able to pivot when one strategy or market begins to turn. Over the next five blogs, I will deep-dive into each category (to the best of my ability) and lay some groundwork for you so that you can elevate your investing game, make wiser, more informed decisions, and truly become sophisticated with your investments.

It is a hard balance to generate passive income from private mortgage investing yet at the same time maintain the freedom of time you are looking for. One of the best ways for an investor seeking passive income via passive investing is to invest through a company like Blue Bay Fund, which allows us to handle all the trouble of running a private lending business.