YOUR DAILY REAL ESTATE INVESTMENT SHOW
July 26, 2022

How To Use Your IRA To Invest In Real Estate with Dan Kryzanowski

How To Use Your IRA To Invest In Real Estate with Dan Kryzanowski

In this episode of Cash Flow Pro, we talk with Dan Kryzanowski, capital advisor at BV capital and Founding Vice President of Rocket Dollar. Dan is originally from Scranton, Pennsylvania. His dad was a high school principal, and his mom was a...


 

In this episode of Cash Flow Pro, we talk with Dan Kryzanowski, capital advisor at BV capital and Founding Vice President of Rocket Dollar. Dan is originally from Scranton, Pennsylvania. His dad was a high school principal, and his mom was a social worker. He was on the traditional investment route when he found himself at a wedding with other investing men and learned about flipping houses and using your retirement dollars.

 

Dan now lives in Austin, Texas, and has raised millions of dollars across multiple channels, including accredited investors, family offices, and investment advisors. He specializes in niche segments, such as industrial and self-storage, complimented with a deep knowledge of tax-advantaged investing. 

 

 

In this episode, we discuss:

 

  • First steps to investing with IRA
  • Self-directed IRA, SEP IRA & the solo 401 K HQRP Nu
  • Opening a Roth IRA
  • Perks of a physical asset

 

Let’s find out how to use our retirement money for passive income!

 

Find your flow,

Casey Brown

 

Resources mentioned in this podcast:

  1. https://bvcapitaltx.com/
  2. https://www.rocketdollar.com/
  3. https://www.linkedin.com/in/danielkryzanowski/
Transcript

Casey Brown  00:00
All right. Hey there and welcome to today's episode of cash flow Pro, real estate investing podcast and YouTube channel. I am here today with Dan Christian ASCII of BV capital and also founding vice president of rocket dollar. Rocket dollar is a self directed IRA company, I'm obviously going to let Dan get into what it is, what it is not how it works, and so on and so forth. Because one question that we get all the time, it's almost like it's almost like nonstop, really, probably at least once or is I have an IRA, I've been told that I can possibly use it to buy real estate or whatever, you know, the likes of a one off asset or in a fun? Either way, you can control it. Let's say that. And with that question, I said, Dan, the man Dan, I need you to come on the podcast and let's do some explaining. And let's see where we go from here. So, Dan, welcome to the show. How are you today?

Unknown Speaker  01:07
Awesome. Casey, great to be with you all today. And I love your background. I know I've beautiful teal door here. But you know I'm putting my stuff over the pretty for now.

Casey Brown  01:19
Yeah, I had to do something to dress the the old moneymaker here, you know, as like, well, they're not really going to care anything about looking at me. So why don't we give them something nice to look at, especially those of you that are watching on video. So So Dan, tell us a little bit about yourself. I know we've met time or two. We've obviously talked on LinkedIn several times. Tell us a little bit about yourself. So the audience have some context where you came from what you got going. And then man, I want to spend a lot of time talking about how people get from point A to point Z on figuring out how to use their own IRA to buy real estate.

Unknown Speaker  01:56
Absolutely. So you know, I grew up in Scranton, Pennsylvania. Dad was a high school principal mom was a social worker. So I feel like a lot of us Gen Xers and older folks out there. Go work max out your 401 K and living a good life. And, you know, to be honest with you up until 2008, I was living the dream did my undergrad at Wharton. My politics for the day. I say I rode with Trump Jr. and then I played on little Saint little league field as Biden probably about 100 years. But you know, all good stuff. And yeah, you know, it was in the northeast, GE Merrill Lynch. And I've always had a feeling there was something a little bit more out there particularly for my retirement than, say, the fidelity or 2060 Target fund. With investment men in a wedding asked this gentleman what he does, and he said, I flipped houses. I said, that's great. He's like, what does that mean? He said, Well, 15% I'm like, interesting. And then he said, Did you know you can use your retirement dollars. And for me, this is kind of one of the world's you know, the big lightbulb went off. And I said, Wow, that must be a lot of money, which we've learned is in literally in the $10 that is not like to say not yet in private assets that could be used for you know, for us as individual benefit of owning a piece of real estate. So some quick background on how I got into it. And then from there, for the past decade, we've been in Austin, Texas. So I like to feel I was doing crowdfund or the Jobs Act, you know, investing little chips and a whole bunch of different real estate plays for about the past decade before even some of the crowdfunding sites and some other folks that I've known respected, whether it's self storage, or their asset classes, raising capital for them. So I've really enjoyed it fitted from being around this ecosystem for about the past decade. And two stops, which I think are relevant for our chat here today. One was which being early on at rocket dollar, an advisor investor, number one as we really look to democratize the ability to have a self directed IRA, a solo 401 K. And then ultimately, also, I am licensed under BBK, for dealer out of Dallas, Texas, so some, you know, good real estate, are you. Absolutely great to be here with you?

Casey Brown  04:15
Yeah, well, we're certainly glad to have you. And again, I want to I know, we're not going to be able to unbox the whole theories and ideas and how to do you know, a lot of the but I want for folks to get some, some type of a beginning idea of where they need to begin when because I know as I told you, and I'm working towards educating myself in this whole space as well and and recently we have some family that has decided to take the dive and, and go into the self directed world. And so I just know that like there was there's money out there That's earmarked as you and I had said. So just like you said, you got 401k You got IRAs, you got annuities, you've got just on the list goes on and on and on. SEP IRA, you know, we all hear all of these terms all of the time. Now, how does one what's the first step somebody needs to take if they're like, man, I've been putting my money into this program all these years, what is the first step somebody needs to take to say, Man, I want to take that money. And I want to put it into an apartment building that somebody is syndicating at 123 Main Street?

Unknown Speaker  05:39
Yeah, I mean, I think the first step is, you know, today, listening to the bear is a huge first step. I mean, it doesn't behoove big Wall Street to tell you about this, so you don't hear about it. The second thing is just to be aware of I think, the rules and they're pretty basic. You know, what can you do with this pool of money? No life insurance, no collectibles? No thing is not you or your linear family. So what is that? Primary residence, not a place you're gonna go to on the weekends, not a beach house, you know, that grandma and grandpa's stay and not your kids lemonade, stand startup, everything else, maybe cannabis on the side, you can do with your retirement dollars, and for the past 50 years, invest in passive in real estate has been, you know, the most common transaction. So I think from here, just the awareness of it. And then secondly, as you have ties with rocket dollar, to things where there's no space, and I hate to call it an FAQ. But sure, there's a lot of questions and answers, but it really gets down with graphs and such to, to get a feel of how this works. And you know, whether it's rocket, or another shot book, a call with one of the experts here to say, here's my situation, you know, do I qualify? And the answer, majority of time is yes to open an account, almost always, if you have a US address at least a self directed IRA. And then for our self employed friends, or realtors, etc. The question is sure, should I consider a solo 401 K, which all are sequels, the more powerful of the two accounts. So this is kind of the chain of how it goes. And then finally, particularly if you're gonna be an active investor, I would look for two things. One is accounts that offer checkbook control. So for us old folks on here, yeah, it's like a checkbook, you invest in what you want, when you want. visa vie, having a third party, I just say checking in with mom and dad before you can go. And then finally, just from a pricing structure, I think a lot of it is hey, what's simple, we got a lot of tech behind it, is it a flat pricing? Are you going to charge me every time I do a transaction? Or if the value of my assets go up? So those are some of the questions I would ask and

Casey Brown  07:48
do. So when we step by step, go back one, one notch there. What I mentioned with all the different types of accounts, the IRAs, SEP IRA, 401k, annuities, blah, blah, blah, are all of those eligible to be moved to a self directed? And I'm gonna say a self directed situation, because is there? Is it specifically a self directed IRA IRA, or is it what is?

Unknown Speaker  08:23
No, there's two types of accounts. So let's work backwards. So the self directed IRA, SEP IRA, that's kind of the Gator a term that's been around forever, most or with custodian selects of a rock Qatal would do a checkbook control, self directed IRA. The other the solo 401 K, also known as the individual 401k, some folks called the HQRP. By default, this is you managing plan abiding to the rules that we just talked about. So we can talk on contributions and such later. But going back to your question, what can go in? The most basic example, you know, in layman's terms is your old 401k So you worked at company ABC, there was a 401k You left they moved to Fidelity or Vanguard and a rollover IRA. Yes, that money can move into a self directed account, a tsp for military friends out there. Set annuities not as much annuities. There's a lot of detail and a lot of different plans, some insurance plans, but you know, generally speaking, I'd say from move money that you're going to transfer a rollover, think of your old company's 401k And then from contribution. It depends, frankly, if you have qualified self employed income and are doing the solo 401k route, or not for how much that you can potentially contribute.

Casey Brown  09:44
Okay, so you can continue to contribute even after it's moved over to a self directed IRA, right?

Unknown Speaker  09:53
Absolutely. Yes. And, you know, I think now we're up to 7000 ish for us. directed IRA with the solo 401. K, this is just say a husband, wife team. Without w two employees, you can be well over 100,000 in a year. So let's just say also for a rockstar realtor, you know, right off the bat like your, your W two friends, you're contributing that, you know, call it 20,000 or so. And then in addition 20% of your net earnings here, so it's very much,

Casey Brown  10:36
that's post tax money, but then it grows, tax. So this

Unknown Speaker  10:42
you can, you can, but there's a Roth. So in the world of self directed IRAs, you can contribute pre tax, if you're under a certain income limit, you can do a self directed Roth IRA, a separate thing you can do as a Roth conversion, meaning you would open up a self directed IRA, traditional pre tax and then move into a Roth. That said, let's say right now, a lot of times, I would go back to your current custodian and do your contribution to were there and then say go Roth IRA to Roth self directed IRA, with the solo 401k. What I love about this is that you can have two checking accounts, one for pre tax traditional, and then another one for Roth, we're literally on the spot, you can do a Roth conversion. So let's just do let's just have a basic example here on the solo 401k. Let's say, you know, you make 300k is a rockstar realtor, you're one woman shop, you know, right off the bat, you defer the 20,500 like your W two friends, if you ever 50 can add another 6500 And then 20% of your net earnings here. So let's just say your middle equation, you can contribute 60,000 Right off the bat, and that's your respect. You know, kind of rollover or transfer in from previous 401 K's. Okay. And then here, once the account is funded, let's just filling in the startup, I'm gonna invest 10k, you do that, Robin? Next time, it's a 1099. r, you'll pay taxes on the 10,000. But the spirit of any investment when you do in Roth conversion, you want to pay taxes on the little seed today, not the big tree in the future.

Casey Brown  12:25
Okay, so grows tax deferred.

Unknown Speaker  12:28
If you do a Roth, yes. Yeah, those tax deferred to do a Roth actually paying the taxes today, not in the future. Just to be clear, a traditional aka pre tax. Yeah, you are gonna pay that balance in your 60s or 70s. So it's the rules are the same from a high level of traditional versus Roth.

Casey Brown  12:47
Okay, so, yeah, all right now, with that, the limits and everything. So you go out, you earn $2, you decide you want to invest one, you take one, you take that dollar, you put it into a Roth, then you take that, then you Where did where does somebody go to open a Roth, they have to go to a financial consult, or a financial advisor right?

Unknown Speaker  13:10
Now, this is a, this is a great misconception to open a Roth, so once again, it's based on income limits, if you want a Roth IRA, and that's whether it's a Roth IRA or self directed. The nice thing here is once again, another thing that they don't teach, even in business school here is that yeah, the likes of a rocket doll or one of these custodians, you can open an account and contribute directly into a self directed IRA. So you don't have to go I'd say another stop on the train. As you know, I'm to your point, hey, I work for a company and I need a financial advisor and like Google, I want to invest in you know, a private real estate deal. Now I gotta open a self directed over here.

Casey Brown  13:52
Thank you come directly to self directed company. Opened it all up?

Unknown Speaker  13:57
Correct? Yes. And then obviously, if they had money in there, fidelity Vanguard, etcetera, combine it. Exactly. Yeah. And, you know, there's some detail this and everybody's personal situation. So I don't want to give a blanket statement. But you know, the point here, I think that we're showing is that you don't need the typical sort of middleman to set it up. And frankly, you know, with the likes of a rock, the dollar the setup side, I think it's five minutes, you know, everything is tech friendly. You sign friendly, there will be a few weeks as things get processed the checkbook portion of your account, but that initial point it's not like as some people think, well, I got to spend a few hours a little financial advisor, old school sign things Bum Bum bum in the process is streamlined from there.

Casey Brown  14:36
Yeah. Okay. And that's, that's, that was the point I was wanting to get to. So somebody goes out works, earns $2 decides they want to invest one, they take one, they bring it to rocket dollar, start a Roth IRA, take that $1 A couple of weeks goes by and take that dollar and they can go buy dollars worth of real estate. Now, again, I know there's some technicalities and stuff about how the money goes wasn't how it comes back, and so on and so forth as far as as far as keeping it tax, keeping the gains tax deferred. That makes perfect sense. So it's like it's really streamline from beginning all the way to buying the real estate with the money. And that I think is is the biggest. And let's be honest, the financial industry in general, I feel like is, when you get way down into the weeds of it, it's very, very simple. I think they've done a very, very good job of overcomplicating everything, in order to create confusion, because we all know that confusion equals profits. Now, with that being said, I'm not suggesting that we unbundle the entire financial industry, and say that there's not some things that go on that you definitely need certain people for. But at the same time, when we, when we start getting advisors on board was saying, hey, these real estate syndications and these real estate investments are viable. These are actual things you can invest in instead of just investing in a in a because I don't even know. So if I go out today, if I go out today, get a financial advisor, and I tell that financial advisor, I want to buy X number of shares in such a such fund. I'm they get? I mean, what's the commission on that? 10%? I don't know,

Unknown Speaker  16:40
you got my blood boil on here that I had to turn the camera off just because of, you know, that sort of situation? It's a lot. You're right. And, you know, the question is, and I value everybody doing what they do for their livelihood. But you know, you wonder what some of that information you can also get from a quick Google search online, so it does. It definitely varies. I mean, no doubt, no doubt about it here.

Casey Brown  17:10
I hope I got your blood boil, and in a good way. You did my friend, not a not a way where you're upset with me because I'm just we just try to dig through and find out what's best for the listeners and what's best for, for people to be able to you know, because the thing is, is that that that, you know, when I when I was I was serious three licensed years ago, when I first got out of college and realized it was very difficult to not only was the risk on commodities so high, it was virtually on a loss was almost unpalatable period because it was the margin calls and so on. But anyway, it was big, it was a deal where I got licensed, and I was like, Yeah, I'm gonna go out, I'm gonna help some farmers take care of their hedging and their risk analysis. Man, the time involved versus the $40 commission for selling one contract was absolutely not even anywhere near but we took an oath or we took a whatever it was signed a pledge, whatever the case was to, to not quote unquote, churn for commissions, that means go in buy something, you, there's a possibility that people could go in, if you're in a fund and go buy shares of three different color companies, and then sell them and buy and sell them and buy and sell them and claim to be creating gains for their investors, when in fact, the gains are on the commission side of the trade. And again, we all sign a pledge, we take an oath, whatever it was to not do that. Now, with that being said, I feel like that pledge or that, that idea, basically just lengthen that process of turning commissions, it basically says, okay, hey, we're not going to turn them real fast, we're going to take him, we're going to confuse the hell out of them. And then we're going to put all their money into this, this, this, this and this, and then on top of that, Dan, you know what we're gonna do, then we're going to claim you can invest in real estate with your retirement money, because Hale taxes, lead it all up. You don't even want to do that. Just Just leave your money here with me. Just leave it here with me. And I'm all you know what I'm saying. And that's what I was just I was I was so enamored at the idea. I'm sorry, I'm taking your time talking. But I feel like I'm trying to, to, to give some justification to, Hey, you don't just because you have a self directed IRA does not mean you have to go out and buy or invest in real estate period. But you know, what it does do? It gives you control. It gives you the idea that, hey, and I remember that when I graduated college, and I went out there and I was like, Alright, I know I gotta go start up, I gotta go start a retirement account. That was that was the firt you know, that was one of the first things that we're gonna start our time together. You're gonna start working, here we go. We go in there and they give you these, these, these this list of funds that you can put whatever percentage you want to put in there. Did they give you this prospectus which by law has to be given. And, and it's an it's an it's this. So I walk out of the financial advisors office with a two foot pile of papers, the of which probably 98% of I walk right out and dump them right in a dumpster, because who the hell wants to sit and read all that stuff. And not only that, when you got all the way down to it, these funds were coded, they were coded letters and such and such fun q 123, to the X day, and it's just like, there's so much confusion there. But what it boils down to is, is they're funneling all this money into one spot. And then they're putting it into a corporation, the same as you could be putting your money into a real estate deal, where you can go out and you could see it, you can smell it, you can look at it, you can talk to it, you can take pictures next to it, you can do whatever the hell you want to do with your piece of real estate. Now, I'm off my soapbox, I think. Now, I'm gonna give you a chance to get the hell back up on your soapbox.

Unknown Speaker  21:07
And I love what you shared. And you're right. So a lot of folks what one may do with your personal money, let's say you bought a piece of land you bought a rental house at the beach, a lot of folks to your point case think that well, retirement dollars are sacred and have to be in some mutual fund or this diversified. This opens up the curtain on the Wizard of Oz to say no, in reality, what I shared the limitations before but basically whatever you want to do passively as a passive hands off investor. With your piggy bank checking account money you can now do with your retirement funds. And that's super, super powerful. So outside of to your point, real estate, you can see feel touch right here. I mean, my personal portfolio, I've invested in female entrepreneurs, I've invested with folks on the other side of the track. So all so I'm seeing that impact now not that I'm 75. And you know, finally pulling out of my 401k or 72, with RMDs. I'm active. I'm active in deals that I believe that give me diversification. So I feel real estate is a strong asset. So I've been able to do this with visa vie, you know, sitting in some fun somewhere with companies that you're right, the stack is this big, and I don't have the time, effort or energy. Or, you know, a lot of times frankly, natural interests. There's not many, you know, stock analysts out there. Most folks Joe Jane America are not they real estate, there's, you know, friendly wanna support, there's a private loan. The beauty here is knowing you can tap into a portion. There's not an exact number or what percentage that you want for your self directed account. So super, super powerful. And I always like to give a fun example, a colleague of mine just retired from American Airlines, you know, bought a condo in the Caymans had a million dollars in his 401k. And said, you know, the next 1234, I'm in building five, I'm gonna buy a condo, and each of those and they're literally he can walk up and down the street, see his retirement collect the rent check.

Casey Brown  23:13
And that's and see. And that's, that's the other part of this is, is exactly what you just said the other part of of these, this, this whole fun thing or like, like, again, one of the big retirement companies you walk in, sit down on their desk, and they confuse the hell out of you Tanji pile of papers and send you out. But with the real estate, so So here's the this was another thought that I had. And again, we're not covering much of the of the team, easy stuff. But so the thing is, is that if I take my retirement account, and I go buy, like a Cola company stock, for instance, is obviously going to be a portion of a fun, whatever, that that in theory that that cola stock could go to zero. I mean, right. And part of the real estate, my justification for investing in real estate is there's always dirt, it's all built on dirt. And if you don't have any of this, you have the lock that all of this set on Now You likely had insurance and you likely had other things that protect the building and structure itself. But the thing is, is that show me an insurance that that a Cola Company has or or a chair manufacturer or a microphone may show me an insurance policy that they have that's going to protect your investment.

Unknown Speaker  24:45
Yeah, great point. I mean, you're right and we have seen examples where stocks have gotten close to zero and and you know, just to obviously any, any asset, any experience. You know, think of a ground up development, there are certain things that could go Along with an inexperienced, you know more so an inexperienced operator that said, You're right. Sir, you know, they're not making any more of it. And you hear that in certain real estate some? Well, things are so attractive. So the other thing I really like in this market, so there's a lot of volatility, you know, high yield stocks. Okay, high yield, high dividend, but let's just say the stocks trading at 10 and goes down to eight. Well, yikes, you know, that went down 20%. Even if your yield originally call, it was 5%. So you're down to Europe, 50 cents, obviously, the stock could go up, maybe maybe not over time. Whereas in real estate as a passive investor, let's say same deal, you know, you invest it, keep the numbers, okay, in a syndication, you kind of keep that at par, you're a lot, you're waiting for sale. Once again, things especially on a development, there could be some issues but with with a validated, I think verified operator. is is it's almost like a bond in a way that your principle really doesn't change until sale. And a lot of times with a value add, you're gonna get dividends distributions with them.

Casey Brown  26:14
And hey, man, show me any real estate trend that you want to show me I don't care if you show me the derivative of something. Show me a real estate trend that has ever over time shown a negative return at the end. You can like we always use this example people talk about, you know, back in 2006. I say we I my listeners hear this all the time. Dan, I'm going to tell it to you go back to oh six. Right. There was never going to be another bad day. The market was ultra ultra. Like everybody was like, Oh my gosh, this is like we're in heaven, right? Oh, 708 come around the corner and punched us right in the gut. And all of a sudden, now your real estate is worth 25% Less right? Now remember, oh six was the highest real estate you know, we were in a boom like everything was just booming. Now 2022 Fast forward to 2022. So we started oh six we had Oh 910 11 Where things we're in, if he tell me a single piece of real estate right now that you know of that you would not immediately without virtually little due diligence take at 2006 is price. The highest price than it ever was in oh six. We since have had what we all know to be a quote unquote, financial disaster period, whatever. And, again, there's not a there's not anything out there that somebody wouldn't take a tooth at the price that it wasn't oh six. And I say all of that because it brings back to the point. You know, we're and how many companies? Did people invest in through whatever funds are broke out of business sold off the assets to pay the bankruptcy trustee since then. And that's that's my argument, guys. That's and that that, Dan? I mean, I know that has to be the crux of your all's argument for why people need to not only have self directed IRA, but be investing in real estate.

Unknown Speaker  28:34
Yeah, I like to go back because what folks tend to do on retirement dollars is real estate. It's land it's a rental. Why not do that with your retirement dollars? You could it's legal. It's been around for 1520

Casey Brown  28:51
That's the there again, it's the financial lobby the financial industry lobby.

Unknown Speaker  28:57
Yeah, I mean, this sort of post COVID world I mean, I'm not a successful tech talker yet but you know, a lot of us are here we're sharing this education. shows I've noticed what warms my heart is I'm here in Austin, Texas, we have a weekly lunch and monthly evening dinner. You know, many folks that are you know, heads down nine to five doctors, engineers, etc. Well, they're in shows when they could under sneaking up during the lunchtime. So as I said the you know, the the curtain has been pulled on the Wizard of Oz right now it says folks, I've had a fair number of friends who they said, You know, I want to retire early and get to 10,000 doors. Well, the staff, a lot of them say what is this thing called passive investing? Oh my gosh, I can use my retirement. I've had this I just left here in Austin Dell after 20 years. I have a million dollars. Yes. You can use that to start to get to know some sponsors at a very intimate level. So you know the wave is coming. I says the younger generation builds up these assets. You know, I'm happy we're talking about the solo 401 K, with a lot of these folks self employed The solo que is a great account a great way to your retirement to invest in stuff that you once again are passionate about and or see feel, hear, touch, etc. Which one's going real estate is one of those. Obviously, Sharon, and I've been fortunate to be invited to a fair number of family office shows, and these guys, even in front of open doors will say, you know, we have less than 10% of our portfolio in stocks and bonds, we've made this through, you know, private company and real estate. Yeah, that's, you know, that's been, you know, the boldface headline for hundreds of years here. So,

Casey Brown  30:37
yeah, and that's and I think the, the more that, that the word gets out, and is spread among, among, listened to just like listeners to my podcast and listeners to any other any other idea of just saying, you know, take control of your financial future. Because otherwise, your financial future, AR is in the hands of people who I can assure you you can't get in contact with if you have an issue. You can't pick up the phone and call the CEO of, of any of the cola companies that I've as that's just kind of been what I've stomped on here in this podcast, but but take, you know, or even if you invest in a real estate investment trust, pick up the phone and call the guy and say, Hey, man, what's going on with this apartment building, because I can guarantee you, you're gonna get a voicemail, and you're probably not gonna get a call back. So not saying that all syndicators can stop and call you. But during your quarterly meeting with them, or your quarterly webinar or quarterly web meeting with them, you ought to be able to get the answer to quite a few of the questions that potentially you have. And so I say all of that. I know Dan, we didn't even get to BV capital and the stuff there. So I'd like to give you just just, you know, honestly, man, I feel like the production here has been has got if it does nothing more than just get people to say, Hey, I'm going to take back control of my stuff. of the money that I earned. You know, I feel like we've had a win if we can get some of that. Some people to just that.

Unknown Speaker  32:16
Dynamite. And, you know, we talked about like, versus trust, want versus do. It's, uh, you know, we're not saying do not 100% of your portfolio, kick a number. That's and a lot of times, I mean, case, I'm sure a lot of folks that you talk to on a regular basis, they're gonna kind of triangulate all these conversations and say, Yeah, great, you know, come I come with you at 100k Sure. And you know, maybe that's 10% of their million 401 K, you can start there is my point. Yeah. Faith, if you have 10k And you know, you you're heading hardest to do different things with crowdfunding and to get a feel. And that's the way that you kind of get the feel of the market. I think that's a pretty fair number

Casey Brown  33:00
one, you made a comment earlier about just getting to know some sponsors. Yeah, get get get out there and get to know that's what we did when we set up our fund was we got out and got to know some sponsors, you know, because we get to know these people on a human level, like, Hey, man, what, what's your favorite beer? Or what's your what do you like doing on the weekends or whatever, you know, that kind of stuff.

Unknown Speaker  33:24
And there's so a funny and then a secret. You know, the funny you're right, in the private investment world, a lot of sponsors, they do regular basis. And what it is, it's to go to sit at a bar at a barbecue and talk. We're not It's not heavy pitching, it's just cool. To town or once a quarter. You know, the principles fly into town. I know some of the shops are your funders and these guys are road warriors. Not a heavy sell, just saying, Hey, guys, what's going on? What are you thinking about? What can we be doing better? And you know, lo and behold, after a few of these, the trust builds up, they're likely to bring a friend along. So, you know, that's just one thing, I think, right that we do on the private side. Secondly, here's my little secret for folks is the great benefit. Using your solo 401k. self directed IRA is sponsors. So I go hold back the light versus trust analogy. Yeah, trust is mutually when money moves. That's a lot of great sponsors. It's difficult to get into their sixth, seventh, eighth, ninth 10th deal. Why is that people in the first five deals had a great experience, they say, Yeah, I'm going to double down or at a zero. So in this weird way, the best of breed sponsors, you don't really hear about them till they're, you know, the deals kind of consummated or sold. So this is a really good way if you you know, have a good feeling about a sponsor to probably get in at their minimum and I know sponsors tend to have flexibility. first experience with different custodians providers like rocket dollar, but also flexibility may be on you know, The initial amount that could be put in especially, let's say, have a random, your minimum set 50, I have a random 40,000. In my Roth IRA, a lot of sponsors are going to say yes to that. Yes. Going forward. So just a brief example, a good way to get I think, folks that you really want to bet on. And then finally, for diversification here, and, you know, Casey, I admire what you guys do a lot, because it's, I think you've picked great asset classes. You know, I'm obviously, I feel industrial from the investor hat provides that same level of comfort and diversification also, as we hit the 2020s over the next few years. So I think the what you guys do in terms of your diligence, what you've offered in your fund is also warm and comforting for folks that just want to dip their toe, but you know, not even a single deal. Not even a single sponsor, but a fund. This is also a really good first step on assets with your retirement dollars. Sure,

Casey Brown  35:52
sure. Yeah. And I know that I want to do another show written a relative, short, short timeframe of and have you explain, because we don't have a lot of industrial talk here. And I've got some some pretty sizable questions that, that need to be covered as far as like, not not not for myself in my fund or our fund, you know, for my me and my investors necessarily. But for those out there who might consider, you know, the, the idea that they could be in industrial type properties. Especially if, because, you know, there's just there's a lot of stuff that we Americans. That's what some of the burning questions that I've got. So, Dan, I want to first off, I want to thank you for your time today. I know you're you're probably one of the busiest guys I know, as far as as far as the hats that you wear and the moving around that you do and, and the places in the country that we always see you at. But real quick, what is and I'm gonna ask you the couple of questions that we ask every guest that comes on the show just just for the the human element to give to the listeners so that they know we're not just talking heads, right? What is the best book that you have recently read or currently reading?

Unknown Speaker  37:06
Yeah, so two books are Ray Dalio changing world or air and then I Friedman, The New York Times author of the storm before the calm for anybody with even a little bit of left brain out there, I think you're really going to enjoy these epic. Listen, we're in the 2020s. The US is doing a certain cycle. And to give away a little bit of Friedman's there's a 50 year economic cycle and 80 year kind of political socio and the 2020s is the first time they're converging. I think everybody on this, you know, will enjoy it.

Casey Brown  37:39
Good. Awesome, man. That's, that's really good. So and another part of our human element, what is the best vacation or a dream vacation that you have either taken or hoped to take? Oh,

Unknown Speaker  37:51
so taken and I caveat this to the world I would go to again before seeing something new is Turkey. Ah, yeah. And we did. We visited four cities in Turkey, actually, honeymoon, not because of the honeymoon. It's just a really cool. The converse was the history. Yeah, Istanbul, the congrats,

Casey Brown  38:19
friend that lives in Istanbul and he just keeps, he's like, man, you have to come visit. And I'm like, alright, but people that if people we Americans have this tendency to believe that people that close to the Middle East, blow up all the time stuff and come my wife that it's safe. No, it's safe. Let's go.

Unknown Speaker  38:41
It's, you know, like anywhere. And I think everybody wants to do you know, it's working hard doing well for their families, and you get a few bad apples in any culture, but it's from a historic perspective and everything else. It's really cool. And if you want to surprise your sweetheart cap and Dokey in the middle of the country, it's mean folks who are living in caves up until about 50 years ago, their Airbnb rented K have the snow coming down and then you know, what's their drink? I think it's called Rocky feels like a Rocky Balboa if you drink too much.

Casey Brown  39:12
You'll Oh man. That's see that's and a lot of people talk about like, like, going to the beach for the sun. Right? That's why people go to the beach because they want to sit in the sun. I want to go places where I can be immersed in culture. Like, like, I want culture. I want cultural experiences. I want to learn, like how do these people, where do they shop? What do they eat? What do they do? What did they do for fun? What do they watch on television? What are they? And Turkey just seems like it's so full of so many different cultural aspects.

Unknown Speaker  39:46
Yeah, I think I was jazzed up on the black tea for a while but we did in our short time there I mean, and invited us into his younger guy into his house for the the treats. Afternoon culture, the calling of prayer. I think it's beautiful. I think it's awesome. Sure. So much other, like straight con people were very open I felt to kind of ask anything and get their take, you know, being kind of the center, literally of the geographic universe, but also across multiple religions and everything. It was just awesome to have very open conversation and get get. You know, like anything, we had a dynamite experience and

Casey Brown  40:25
yeah, awesome, man. Hey, Dan, tell the listeners real quick if they heard something they'd like to reach out and ask you what's the best way for them to get in touch with you?

Unknown Speaker  40:34
Absolutely. So as many I'm pretty active on LinkedIn, send me a direct message, you know, say, Hey, I heard you and Casey talking. I love to talk a little bit more. You know, no surprise, I joke if you can spell it, you can get a decrease analysis. A little bit of coin off a rocket dollar. But you know, also for some of our aspiring sponsors out there folks that are thinking of the one two punch definitely reach out to me. You know, there's I think certain programs that an education underneath the rock Itala umbrella efficiency,

Casey Brown  41:04
man and I tell you what, Dan, I you know, the little bit that I've learned from you over the our short time that we've talked and met and you know, we saw each other in Denver, and there's just a lot of different things, but I can vouch for for Dan's want to get out and touch and talk and, and be involved and help. I can vouch for 100%. So, Dan, again, thank you so much for your time. I want to just thank the listeners for their time as well. I know we've gone a little over what we typically do, but don't forget listeners. If you like what you heard today, please run down, scroll down and give us a five star review. Don't forget to subscribe to the podcast and leave us a review if you've deemed that it's necessary. But Dan, thanks again and I hope everybody has a wonderful rest of the day.


Transcribed by https://otter.ai