Category: How To Retire Well | Self Directed IRAs

Estimated reading time: 6 minutes

Rental property investing is a popular strategy for generating income and building wealth over time. However, not all rental properties are the same, and different strategies may suit different investors depending on their goals, preferences and risk tolerance. There are three main types of rental property investing: short-term, mid-term and long-term. Understanding how each work and becoming familiar with some of the different benefits and drawbacks can help you see how they can be lucrative alternative investments, individually or when combined to create a diversified portfolio.

Short-term Rentals

Short-term rental property investing involves renting out a property for a few days or weeks at a time, usually through platforms like Airbnb or VRBO. This strategy can generate high returns per night, as well as tax benefits and flexibility in managing the property. However, it also comes with higher costs, such as cleaning fees, maintenance expenses, insurance premiums and occupancy taxes. Also, short-term rentals are subject to market fluctuations, seasonal variations and regulatory changes that can affect the demand and profitability of the property.

One of the many advantages of short-term rentals is the higher rental income generally associated with these types of investments. Short-term rentals can charge higher rates per night than long-term rentals, especially as vacation rentals in popular tourist destinations or during peak seasons. They also offer flexibility by allowing the owner or manager to adjust the availability and pricing of the property according to market demand and personal preferences.

Short-term rental investing also comes with some challenges and risks. Short-term rentals simply require more maintenance, cleaning, marketing, and management than long-term rentals. They may also incur higher operating expenses with utility bills, insurance premiums, and fees from the rental platforms. These types of rentals are also subject to different laws and regulations in different jurisdictions, which may limit or prohibit their operation, as we’ve seen become an issue for some states across the US. Some homeowner’s associations or landlords may have rules against short-term rentals. Also, since short-term rentals are more sensitive to seasonal fluctuations, economic downturns, natural disasters, pandemics, and other factors, travel demand can sometimes be affected which inevitably will also affect a short-term rental in your investment portfolio.

Mid-term Rentals

Mid-term rental property investing involves renting out a property for a few months at a time, usually to corporate clients, students or travelers who need temporary accommodation, or displaced homeowners after a disaster. This strategy can provide steady rental income and lower vacancy rates than short-term rentals, as well as lower costs and less hassle than long-term rentals. However, it also requires more marketing and screening efforts to find suitable tenants, as well as more legal and contractual obligations to protect the property and the landlord.

Like short-term investments, mid-term rentals can charge higher rates than long-term rentals, as they offer more flexibility and convenience to tenants. Mid-term rentals can also avoid vacancy periods by adjusting the prices according to the season and demand. But, also similar to short-term, mid-term rentals require more maintenance and cleaning than long-term rentals as well as higher utility bills, insurance premiums, and management fees. Mid-term rentals also face market uncertainty over other types of rental strategies, because mid-term rental investing depends on the demand and supply of the rental market, which can vary depending on the season, location, and economic conditions. Mid-term rentals may experience lower occupancy rates or reduced income during off-peak periods.

Long-term Rentals

The last type of rental method covered in this article is long-term rental investing. Long-term rental property investing involves renting out a property for a year or more at a time, usually to residential tenants who sign a lease agreement. Many investors like this method, as it can offer consistent cash flow and passive income, as well as appreciation and equity growth over time. But long-term rentals come with their own drawbacks, too, such as more responsibilities and risks which can include tenant management, property maintenance, repairs and renovations, taxes and fees, and potential eviction issues. If the investor does not want to take on these duties, then paying for the services of a property manager or property management company is another expense.

Arguably the biggest advantage of long-term investment properties is the positive cash flow an investor can usually expect. In most cases, long-term rentals generate consistent monthly income from rent payments, which can help cover the mortgage, taxes, insurance and maintenance costs of the property. This can also provide a hedge against inflation, as rents tend to increase over time. Because long-term rentals can appreciate in value over time, depending on the market conditions, location, demand and supply factors, this can increase the net worth and equity of the investor and provide an opportunity to sell the property for a profit in the future.

While some may like the fact that rentals can be held for extended periods of time, others might see the illiquidity as a negative. Long-term rentals are not easily convertible into cash since they require time and effort to sell. This can limit the flexibility and mobility of the investor, making it harder to access the equity in the property in case of an emergency or a change of plans. This is certainly something to consider for self-directed IRA investors who may be needing to take distributions They also might not be the best choice for those who want to take a more passive investing approach, because long-term rentals require ongoing management and maintenance, which can be time-consuming and stressful if the investor has to deal with tenants, repairs, vacancies, legal issues, regulations and other challenges that come with being a landlord.

Understanding the Right Strategy for You

You may find that one type of rental strategy suits you more than another, or you might be thinking, “Wow! All of those sound like they have something unique to offer” and be interested in trying all three. While some could argue that it’s best to start with one rather than jumping in headfirst all at once, it’s certainly possible.

One way to combine these three types of rental property investment strategies is to allocate different properties or units to different strategies depending on their location, features and market conditions. Let’s say that an investor owns a condo in a tourist destination that is rented out short-term during peak seasons. Then, they use this same condo as a mid-term rental during off-seasons. At the same time, they also have a single-family home in a suburban area around the same location that is rented out long-term to a stable tenant. In this example the investor has diversified their income sources and reduced their exposure to market volatility utilizing all three rental strategies.

If taking on all three at once seems overwhelming, real estate investors may also switch between strategies for the same property or unit depending on the changing circumstances and opportunities. For example, an investor may rent out their property long-term until they find a good deal to sell it for a profit, or they may rent out their property short-term until they find a reliable tenant to sign a long-term lease. This strategy works different than the first example, but still gives an investor the chance to maximize their returns and optimize their asset.

As you can see, rental property investing is not a “one-size-fits-all” approach, but rather a combination of different options that can be tailored to fit different situations and financial goals. By understanding how each work, the pros and cons of each type, and combining them in creative ways to create unique opportunities, investors can achieve their desired outcomes and enjoy the benefits of real estate investing!

Rental properties can also be held in a self-directed IRA. Learn more about holding short-term rentals in your IRA in our blog article. If you are interested in learning about the tax advantages of holding rental properties in your self-directed IRA or have any questions, schedule a 1-on-1 consultation with a Quest IRA Specialist.

Estimated reading time: 6 minutes

It is impossible to escape the headlines.

Inflation is at a 40-year high. A recession is coming. A recession is here. What will America look like in the next year or two?

However, economic recessions are not new for the United States. Since World War II, the US has been through 12 recessions with an average economic contraction of 2.5%, an average unemployment rate increase of 3.8%, and an average duration of 10 months.

So where are we in the economic cycle right now?

In my search for the answer, I realized that even the brightest economists do not agree on where we are in this market cycle or when a recession will hit. This means to be a savvy investor, we must learn the guiding principles for investing so we can navigate any market cycle…even perilous ones.

7 Principles to Invest By

When you study the greatest financial minds, you find that they rarely time the market. Rather they subscribe to a set of investing principles to allow them to make money in almost any market and spend as much time in the market as possible.

Capital Preservation

Most investors have heard of Warren Buffett and his two rules of investing.

“Rule #1: never lose money. Rule #2: Don’t forget rule #1.”

The first step to investing in any market conditions is to invest in hard assets where your capital invested cannot go to zero. (This is THE main reason I love real estate investments.) As an extension of this principle, you want to invest in asset classes where you can control the value of the asset. This means investing in assets that are their value on net operating income or expected gross income not on the whims of the stock market. Additionally, any asset that you invest in must be well capitalized with capital expenditure and operational reserves to mitigate loss and to keep the need from selling in a down market unnecessarily.

Cash Flow

Another principle of conservative investing is to invest in assets that have multiple streams of income that begin from day one of owning the asset rather than waiting for cashflow to kick in months later. When an asset has immediate cashflow, like rental income, this indicates that the asset has an element of stability in today’s market. Another way to protect the cashflow is to ensure that there are several rental comps in the area that are higher than the subject rental property so you can be competitive in the market should you need to adjust rents. And like rule #1, around capital preservation, you want to ensure that the asset is well capitalized from day one to mitigate any sort of loss and to protect the current cash flow on the asset.

Equity Growth

There are two types of equity growth: natural market growth and forced equity growth. Ideally, you want to invest in assets that takes advantage of both levers if possible. To tap into market growth potential, and since you personally cannot control it, you need to invest in real estate properties that are in areas of the United States where the population is growing, jobs are growing, incomes are growing, jobs are diversified, poverty is coming down, and crime is coming down. You want to stack the investing cards in your favor. To take advantage of forced equity growth, you need to look for assets where you can raise the income on the asset, decrease the expenses associated with the asset, or add additional streams of passive income to the asset. The real power is when you can pull all three of those net operating income levers at the same time!

Tax Benefits

One pillar of conservative investing is to invest in assets that have tax benefits associated with them (the IRS is incentivizing investment to solve a problem). Again, this is another reason I love being a real estate investor. When you invest in real estate you can create paper losses through depreciation, including accelerated depreciation and bonus depreciation. These losses can help shelter taxation on income the asset generates.

Another tax benefit of investing in real estate is the 1031 exchange, also called a like-kind exchange. One of the major benefits of doing the 1031 exchange is the ability to defer the tax on capital gains and to avoid depreciation recapture. The tax benefits of real estate are one of the most powerful builders of wealth.

However, how important are the tax benefits if you are investing in alternative assets through a Self-Directed IRA (SDIRA)? Glad you asked!  The SDIRA account itself already has tax advantages built in, so any depreciation will remain in the account itself and not pass through to you as the individual. Additionally, SDIRAs cannot participate in a 1031 exchange (they don’t need to save on tax). When you invest in real estate through an SDIRA, you really do not need the tax benefits anyway!

Inflation Hedge

An inflation hedge is an investment where the decreased purchasing power of a currency results from the loss of its value due to rising prices either macro-economically or due to inflation. When you invest in a real estate asset, you can periodically increase your income that you are earning and pass through your expense increases to the end customer. For example, with multifamily properties, such as apartment buildings, you can adjust your income annually at lease renewal. With self-storage property, you can adjust your income monthly. For express car washes and hotels, you could adjust your income daily if you like. Being able to respond to the market to protect your purchasing power is one of the most powerful aspects of any commercial real estate business.

Leverage

Another pillar of conservative investing is understanding how to safely arbitrage the interest rate environment to use leverage safely to amplify wealth. In today’s rising interest rate environment, we are in the cycle where fixed rate debt that covers the term of the hold on any project is KING and short-term floating rate debt should be used with immense caution. If you come across an operator using floating rate debt, ensure that the debt has a cap and that the project has been underwritten to that cap for the duration of the hold. Since this type of debt is short-term, ensure the operator has also purchased extensions to the debt term upfront to cover the hold period, and has multiple avenues for a successful exit should their debt strategy fail.

Invest with Experts

Without a doubt, the most important conservative passive investing pillar in this market or any market is to invest with experts that you know, love, and trust. While most investors are drawn to deals with high returns, the success of any deal hinges on the operator’s execution. So be sure to invest with a team that has knowledge of the investment strategy, a track record of positive performance, the ability to secure credit and lending for high quality assets, the ability to reliably pool investor capital to close and manage the asset, and a professional team to source, acquire, operate, and reposition any deal in their portfolio on your behalf. Finding such an operator makes you not only feel confident that they can preserve your initial investment and execute their business plan, but you also get your time back… your most nonrenewable resource.

Is a Recession in the Future?

Some economists predicted that a recession would begin in Q4 2022 and last through 2023 and be a shallow yet prolonged contraction. Other economists challenged that the real recession would not realize for another 18-24 months.

So, what does 2024 and beyond hold for us? I truly do not know.

As a student of history, I believe that success leaves clues. And successful investors made money through all 12 modern recessions… and these seven principles of building wealth were the key to their investing confidence.

What are yours?

 

About the Author:

Whitney Elkins-Hutten is the Director of Investor Education at PassiveInvesting.com, a private equity firm with $1.4 billion in assets under management, including 3500 multifamily units, 6600 self-storage units, and 30 car washes. To date, PassiveInvesting.com has achieved an LP ARR of 29%, an LP IRR of over 26%, and a 56%+ increase in asset valuation in three years or less.

This guest article was originally published Nov. 18, 2022. Whitney Elkins-Hutten will be joining us as an educator at Quest Con Live: Women in Alternative Investing on Nov. 17, 2023. To learn more about this event go to QCL Registration.

 

Estimated reading time: 4 minutes

Investing comes with countless benefits, many of which we have discussed in previous blogs, but it also comes with risks. Being able to understand what to look for before entering into a new investment can save you a lot of time and money when it comes to those investing risks. One of the best things anyone can do is perform proper due diligence on their new potential investment.

What is Due Diligence?

Due diligence is the step-by-step process an investor takes to help protect their IRA from fraud and to determine if it is the right investment for their retirement funds. Due diligence is what forces you to uncover the facts about the investment and any potential risks, so you can make an informed decision. There are two types of due diligence: that which is done on the investment itself and the other which involves thoroughly vetting the one offering the investment.

It’s crucial to not only look at the investment itself and determine if it is worth it, but to also consider who you may be entering into business with, as well. Sometimes you may be confident in the investment, but still have hesitations about the investor. If you are ever nervous, you should always investigate further.

Why is Due Diligence Important?

It is important to be more cautious when you are investing your IRA funds. Doing due diligence ensures that you don’t make the wrong decision and jeopardize your future retirement. One bad investment could greatly affect your retirement savings.

With self-directed IRAs, you can invest in real estate, notes, private placements and more, so it is even more important to perform due diligence on these types of alternative investments. When you invest in a mutual fund, you can look at the prospectus and view the fund’s history. When you invest in alternative assets, you are in the driver’s seat. The IRA custodian is not allowed to provide tax, legal, or investment advice. You find the deal, usually through networking, and it’s up to you to thoroughly vet the investment. You may be approached with an investment opportunity that sounds amazing, but what do you really know about this potential real estate investment or the sponsor that is pitching the deal to you?

The reason investment fraud succeeds is because people are lured into emotional decisions by the scammer without first completing their due diligence. Investing in things you are familiar with and know very well can help lessen the risk of fraud, since you will be very aware of what to look out for. For example, if you are a real estate professional, you can use your experience to invest in rental properties.

Doing Due Diligence

The due diligence process begins with asking yourself broad general questions. It then narrows down to specific questions about the investment depending on the type. Asking yourself questions like, “does the investment offer make good business common sense?” or “how exactly does this investment strategy create above market returns?” If you can’t explain it, there’s a risk of fraud.

Top 10 warning signs of investment fraud:

1. It promises “guaranteed” returns;

2. It promises high returns for little or no risk;

3. It’s being pitched by a leader in your community or a fellow group member, such as ethnic, racial, religious, or other groups;

4. It involves a reverse merger stock or your money has to be sent overseas;

5. It involves “break-through” technology;

6. It’s tied to a current natural disaster;

7. It’s unregistered, or it’s being pitched by an unregistered adviser or salesperson;

8. It lacks documentation, such as prospectuses, offering statements, or financial reports;

9. It’s difficult to understand; and/or

10. The pitch comes with high-pressure sales tactics that push you to purchase immediately.

Ask all of your questions and expect straightforward answers. Review financial records if applicable. If you are buying real estate, go to site and view it yourself. Do not let trust, friendship, or emotion get in the way. When you do not understand the investment, continue to ask questions until you do. This is your money, and you should feel comfortable with your investment decision.

Once you have evaluated the investment, it is then time to evaluate who you are entering business with. What is the track record of the person pitching the investment? Look into the performance of their other investments? Have they been honest and upfront about the risks of this investment. Have they thoroughly answered your questions, or tried to pressure you to act quickly? Look for any red flags and then take the time to investigate them thoroughly. If something sounds too good to be true, it probably is.

It’s true that all investments have risk and there is always a constant battle between risk and reward. If at any point during the process you find that the investment has too great a risk for the amount of return or has a high probability of fraud, then you should stop the process and move on to another investment. Prepare a due diligence checklist to ensure that you did not miss asking any important questions.

The more you know about the investment the better you will be able to judge whether the risks are balanced by the reward and whether investment fraud could be possible. If you ever have questions about doing your due diligence or investing in your self-directed IRA, give a Quest Trust Company a call at 855-FUN-IRAS. To learn more about how to get started investing with a self-directed account, schedule a 1-on-1 consultation with an IRA Specialist by clicking HERE.

Estimated reading time: 6 minutes

When is the right time to start saving? Is it when you are young or when you’re a bit older? Is there even a right time? No one’s situation is the same, and when it comes to your investment journey, each investor’s path will look different. For some, investing in a retirement vehicle like an IRA in your 20s can be a smart move for building long-term wealth and securing a comfortable retirement. For others, it might make more sense to wait until they’ve established themselves and have a solid footing with the means to be able to invest comfortably. But, for those ready to take the leap in their young years, saving early can provide more financial freedom during your retirement.  

Investing in your 20s 

Investing in your 20s can set the foundation for your financial future and starting in your 20’s provides an extended time horizon before retirement that others may not get by starting later in life. By saving in your 20s, you allow your investments more time to grow through compounding. Compounding means that your investment gains generate their gains, creating a snowball effect that can significantly increase your wealth over time. Starting early allows you to contribute smaller amounts over a more extended period to reach your retirement goals. As you have more time for your investments to grow, you can take advantage of smaller, consistent contributions rather than having to contribute larger sums later in life. Here’s a tip! Set up automatic contributions to your IRA. Regular, consistent contributions make it easier to save consistently and take advantage of dollar-cost averaging, which can help mitigate the impact of market fluctuations. Here’s what you can do with a small-dollar IRA! 

Younger individuals generally have a higher risk tolerance, which is your ability and willingness to handle fluctuations in the value of your investments, because they have more time to recover from any potential market downturns. Embracing a slightly riskier investment strategy in your 20s can potentially lead to higher returns over the long run. Assess your risk tolerance level. Since young investors have more time to recover from losses, they can afford to take on higher risk investments that have the potential for higher returns. Even if the market experiences significant downturns, you have decades to make up for those losses through subsequent growth. Of course, while having a higher risk tolerance is advantageous for young investors, it’s essential to strike a balance and not be overly aggressive in investment choices. Diversification is key. Read more about how you can make sure you’re doing all you can to diversify your nest egg HERE! 

Investing in your 30s 

As you get older, your goals may start to shift a little and you’ll begin thinking about different considerations. Investing in your 30s presents a unique set of considerations as your financial situation and responsibilities may have evolved since your 20s. Your 30s offer a pivotal time to build on the foundation set in your 20s and make significant strides towards achieving your financial goals. As you get older, life events may come into play, making it challenging to allocate funds towards retirement.  

Similar to starting in your 20s, those investing in your 30s still typically have lower financial commitments, fewer dependents, and may not have substantial liabilities like mortgages or significant debt. This financial flexibility allows them to give more of their income to investing, just as someone in their 20s. But as they turn the corner into their 30s, financial goals may have shifted. They may be thinking about buying a house, starting a family, or advancing a career. They may also be thinking more about long-term financial objectives rather than just short-term and have more flexibility to adjust their investment strategy accordingly. 

Someone in their 30s may consider increasing the rate at which they invest, aiming to save a higher percentage of income to accelerate their progress toward financial independence and retirement goals. Retirement goals might now include additional family members, like spouses and children, and thinking about the new financial responsibilities that came come along with a family to support is extremely important. They may also open education accounts for their children if they’ve started families.

But for those investing in their 30s, one of the biggest things that can hold an investor back is not ensuring that they have an adequate emergency fund to cover unexpected scenarios that might require a hefty amount of living expenses. An emergency fund can provide a safety net during unforeseen circumstances which can not only help prevent you from having to dip into long-term investments, but also the money you’ve set aside for retirement investing. 

Investing in your 40s and 50s 

Advancing to your 40s and 50s brings new considerations, such as retirement readiness and estate planning, urging investors to really think about their financial strategy if they haven’t yet. For investors that are just starting in their 40s, they might have more money to work with to allow them to invest more, and for those that have been investing for years, most are generally at a point where they are investing comfortably. These investors may be conducting regular reviews of their retirement portfolio to ensure it aligns with those goals and changing financial circumstances. For those in their 40s and 50s that are really looking to get the most of a retirement account, they should be optimizing their tax strategy – passive investing works great for those that are busy with their day to day, busy lives. 

Remember that certain IRAs have catch up contributions that allow for additional IRA contributions if you are over a certain age. They vary from account to account, but individuals aged 50 and above can make catch-up contributions to retirement accounts, taking advantage of new ways to optimize their retirement savings that weren’t possible before, like understanding the tax implications of various retirement accounts and what could be expected in the next years to come. Investing in your 40s and 50s requires careful planning, but even if you haven’t taken that leap, it’s not too late to secure a comfortable retirement. 

Investing in your 60s and beyond 

Lastly, investing in your 60s once again introduces new considerations, opportunities and sometimes challenges, too. Since you are past the age of 59 1/2, you can take distributions all through your 60s! This provides a great opportunity for those who have been waiting to get their tax-deferred or tax-free money. But at this age, scammers love to come out of the woodworks and take advantage of those getting older that might not be as aware of the latest tactics used for fraud. Common tactics can include spam emails, phishing, and even just being pushy with their requests can sometimes be cause for alarm. At this time, you might be thinking about setting up your estate plan and revisiting your beneficiaries. Make sure you have exit strategies for investments in place, too! 

Investing at different stages of life is a journey that offers distinct challenges and opportunities. Starting in your 20s provides the advantage of time, enabling the power of compounding to work in your favor. As you move through your 30s, 40s, and 50s, reassessing goals, increasing contributions, and adjusting risk tolerance become crucial to stay on track for a secure retirement. Finally, in your 60s, the focus shifts to capital preservation, generating reliable income, and planning for potential healthcare expenses.

Throughout life’s various stages, seeking professional guidance, staying informed, and adapting your investment approach can ensure a successful financial future, allowing you to enjoy the fruits of your diligent and strategic investing efforts in the golden years of retirement. Remember, each phase is an opportunity to build a strong financial foundation and create a legacy that will benefit you and your loved ones for generations to come. To learn more, be sure to schedule a free consultation or open your account today!

 

Estimated reading time: 5 minutes

Networking plays a vital role in the world of investing. It not only helps you expand your professional circle but also opens doors to potential investment partners, valuable insights, and exciting opportunities. However, it’s essential to approach networking strategically to maximize the benefits of networking! With events in full swing and webinars on the rise after COVID, face-to-face interaction is slowly becoming an art in itself. Making sure you know all the key tips and guidelines to ensure you’re networking the right way with other investors is crucial, enabling you to forge meaningful connections and meet potential investment partners.

Whether you are a new investor that is trying to build a fresh network, or you have been investing for years with a large circle of financial friends, there are always ways to improve how you connect with others in the investment world. In the past few years, there has been an influx of online events where investors don’t have the opportunity they once had to shake hands and talk in-person. Instead, there are new opportunities online events present, like the chance to connect with others that are not joining locally, and much more. But the most important thing to remember before you start networking is that you must define your goals before diving into networking activities. What do you hope to achieve through networking? Is your goal to find potential partners, gain market insights, or establish yourself as a thought leader? Always clarify your objectives as this will help you focus your efforts and make the most of your networking opportunities.

 6 Tips to Network the Right Way

Once you have a clear goal, make sure you come prepared to network! Although it’s where most deals start, it’s not always just about the conversation. We’ve created a helpful checklist to ensure you’re networking the right way.

1. Look the Part. When networking with other investors, it’s important to present yourself professionally. Dress appropriately for the occasion, whether it’s a formal event or a casual meetup. Your attire should reflect your industry and convey confidence. Remember, first impressions matter, so pay attention to grooming, body language, and overall demeanor!

2. Know Who You’re Talking To. Before attending networking events or engaging in conversations, research the individuals or companies you are likely to meet. Familiarize yourself with their background, investment interests, and recent activities. This knowledge will enable you to tailor your conversations, ask relevant questions, and demonstrate your genuine interest in their work. Prepare a few thoughtful and open-ended questions to initiate discussions. These questions can revolve around the other person’s investment philosophy, recent challenges, or their perspective on industry trends. Actively listen and show genuine interest in their responses.

Here are some example questions you can use to get a conversation started!

• “What kind of real estate investing strategies or niches are you currently focused on?”
• “How long have you been an investor?”
• “Have you attended any real estate investment seminars or conferences recently?”
• “Are you actively seeking new investment opportunities?”

3. Have a Track Record of Examples, if possible, or a “Look Book”. Having a portfolio or a look book showcasing your successful investments or previous projects can be a powerful tool during networking. Be prepared to present your portfolio or look book in a concise and compelling manner, highlighting key results and demonstrating your expertise.

4. Conduct Due Diligence. Networking is not just about making connections; it’s also about ensuring that you align with trustworthy and reliable partners. Familiarize yourself with the due diligence process, including conducting background checks, analyzing financials, assessing market potential, and verifying references. Demonstrating your due diligence skills will give others confidence in your decision-making abilities.

5. Come Prepared with Contact Information. Bring business cards with your contact information and any relevant professional marketing material. These materials will help you leave a lasting impression and provide a convenient way for others to recall your discussion afterward.

6. Leverage Online Platforms. Utilize professional social media platforms like LinkedIn to connect with investors, join relevant groups, and engage in industry-related discussions. Create a compelling profile highlighting your investment expertise and actively share valuable content to showcase your knowledge. Online forums and communities focused on investing can also be great platforms for networking and knowledge sharing.

Finding Networking Events

Once you have defined your alternative investment goals and have the proper understanding of what is needed to network to the best of your ability, now you can begin finding places to put your knowledge into action. And where can you do that? Industry events and conferences are excellent opportunities to connect with fellow investors.

Research and identify relevant events related to your investment interests or industry by either searching on the internet or asking your financial friends about potential events. Sites like Meetup, Eventbrite, BiggerPockets, and even individual company websites can provide a multitude of events that are often tailored to specific investor needs. Additionally, custodians like Quest Trust Company often offer free events, online and in-person, to encourage networking, too. These gatherings can feature panel discussions, keynote speeches, and networking sessions, offering you a chance to engage with like-minded professionals and meet potential investing partners. As mentioned in our top 5 tips though, be proactive, approachable, and prepared with business cards or contact information to exchange if you attend them!

Lastly, joining investor associations and organizations can provide access to a vast network of individuals with similar investment interests and events, private and open to others not in the network. Look for local or national groups that cater to your investment niche or goals. These associations often host meetups, seminars, and online forums where you can interact with fellow investors, share experiences, and build relationships. Active participation and contributions within these communities will help you establish credibility and expand your network.

Remember that successful networking requires a genuine interest in others and consistent effort. By networking the right way, you can enhance your investing journey and open doors to exciting opportunities in the future. If you ever have a conversation about Self-Directed IRAs and don’t know how to answer all the questions, not a problem! Send them our way. When networking at events and investors association, it’s helpful to have the contact information for a Quest Trust IRA Specialist easily accessible in case you are talking to those who may want more information than you can provide. If you ever have questions, you can always contact an IRA Specialist by calling our office at 855-FUN-IRAs, so get out there and network!