Exploring Alternative Investment Strategies with Fred Moskowitz
Sep 24, 2024In the latest episode of "Keep What You Earn," Shannon sits down with Fred Moskowitz, an educator and bestselling author, to delve into the world of alternative investments. Fred, known for managing a mortgage note investment fund, shares his expertise on creating passive income through investments typically overlooked by the average investor.
Fred emphasizes that while traditional investment vehicles like index funds and 401(k)s are valuable, investors should consider a broader array of opportunities. Standard advice usually nudges people toward high-yield, low-cost index funds or maximizing retirement contributions. However, Fred believes it’s crucial to become aware of and explore other investment options once you've built some investment experience and capital.
Fred highlights the concept of cash flow investments that generate consistent income regardless of market conditions. Unlike traditional assets, which often require waiting for appreciation, cash flow investments provide regular returns. Even if the asset’s value declines, the investment keeps generating income. This makes them resilient and reliable financial strategies.
Among alternative investments, Fred points out real estate and mortgage notes as significant opportunities. While real estate investing is commonly understood, mortgage notes remain less known. Mortgage notes come with several advantages: they are backed by real estate, offering security; they are usually sold at a discount, which increases returns; and they often provide healthier returns compared to traditional investments, depending on your risk tolerance. By investing in mortgage notes, you can transition from making monthly payments to receiving them, effectively flipping the borrower-lender dynamic.
Fred and Shannon both stress the importance of educating yourself before diving into alternative investments. Fred suggests numerous resources—books, podcasts, seminars, and workshops—as a solid foundation. It's also crucial to decide whether you want to be an active or passive investor. Active investing requires more time and effort but offers direct control and potentially higher returns. On the other hand, passive investing, like investing in a note fund, lets you leverage a fund manager’s expertise while still reaping substantial returns.
A common concern is determining the "right time" to venture into alternative investments. Fred advises that there's no time like the present. Rather than waiting to graduate from simpler strategies, he suggests letting your curiosity and awareness drive your entry into these new investment spheres.
Both Fred and Shannon underscore the importance of surrounding yourself with knowledgeable people. Networking with experienced investors can accelerate your learning curve and expose you to insights and opportunities not covered in books and courses.
Starting small is another excellent strategy. Shannon mentions that dipping your toes into new investment waters, as she did with cryptocurrency, can help you learn the ropes without undue risk. Hands-on experience offers invaluable lessons that theoretical knowledge alone can’t provide.
Lastly, Fred champions the power of compounding, described by Albert Einstein as the "eighth wonder of the world." By reinvesting earnings into new assets, whether stocks, real estate, or mortgage notes, you can exponentially grow your wealth.
Shannon and Fred’s discussion provides a comprehensive guide to alternative investments, emphasizing education, timing, and an approach tailored to individual goals. While traditional strategies like 401(k)s and index funds are foundational, exploring a broader spectrum of investment opportunities can offer manifold benefits, from enhanced cash flow to better risk management.
Fred Moskowitz is an educator and best selling author who has trained countless investors from all walks of life on how to create passive income streams of their own. As a fund manager, Fred manages a mortgage note investment fund and is considered an industry veteran within the note investing arena. Fred teaches the concept that individual investors are able to step into the shoes of the lender, shoes of the lender, through note investing, and effectively "be the bank". Fred takes pride in collaborating with investors to help them grow and profit in the note space, as well as being a trusted and valued resource in the arena of alternative investments. His new book, titled "The Little Green Book Of Note Investing, has recently launched.
Instagram: @thefredmoskowitz
Facebook: @thefredmoskowitz
Website: www.fredmoskowitz.com
Get Fred’s book here: https://www.fredmoskowitz.com/the-little-green-book-of-note-investing/
What you'll hear in this episode:
06:14 Investments generate income while waiting, compounding profits.
07:20 Episodic advice is not personalized; choose freely.
12:57 Passive investing offers expert-driven rewards.
14:07 Experienced guidance important for successful investment strategies.
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