When speaking with potential investors, I want to be very clear about why I believe Financial Peace Investing can offer them unique value. “Why should I work with you? And what distinguishes you from the operators you invest in, or syndicators I have heard about?” Here are my responses, as well as some background information on Financial Peace Investing.
1. Passion
Investing is my passion, particularly in real estate. When it comes to creating a solid financial foundation in my early career, the Rich Dad book series was a fantastic resource for me. It inspired me to focus on passive income-generating investments, or “let your money work for you.” I set a goal to establish a profitable investment portfolio so I won’t need to work for a living all day long.
My wife and I lead a modest lifestyle, investing and saving money rather than going out of our way to buy material things. We compare investment to sowing seeds: the work is done now, and the benefits come later. I’ve spent time in investment meetups and clubs, online, and studying from others who have had success or acquired valuable insights. Having been in the real estate investing business for a long, I’ve always appreciated expanding my knowledge. I’m appreciative that my own business allows me to pursue my interests. To put it plainly, if something doesn’t excite you, you’re not likely to be good at it.
2. Objective:
In 2018, after actively participating in different markets for single-family rental properties and researching various real estate tactics, I entered the commercial real estate market via private equity syndication with multiple apartment syndicators. The benefits for investors in this domain were exceptionally tempting, with certain sectors, such as mobile home parks, apartments, and self-storage, routinely outperforming the stock market (S&P 500) over decades by roughly a factor of two and with reduced volatility.
It looked almost too good to be true, with tax breaks, appreciation, and cash flow all rolled into one. I consider myself fortunate to have learned about these commercial real estate syndication opportunities, which allow the establishment of actual assets that generate passive income.
This method relieved me of the challenges of being a small landlord managing single-family rental houses. Instead, I use a team’s experience to invest my money in projects that benefit me and create a good return, freeing my most valuable asset – time – to focus on what is most important to me.
Driven by a feeling of purpose, I ended my professional career in the semiconductor business, leaving Apple in 2021. I began homeschooling my sons and developing a Christian education ministry to prepare parents and children for productive lives in today’s tough culture. Later, I founded Financial Peace Investing, where I share my experiences to assist people live a more abundant life, rich in meaning, purpose, and impact, emphasizing that investing is a way to achieve life’s fundamental goals. I think that all investments are impactful, and my purpose at Financial Peace Investing is to assist people in making impactful investments in their lives.
3. Diversification.
When I first started in this sector, I understood I needed to spread out my assets. I wanted to invest in new places, collaborate with different operator teams, and experience different markets. So I started investing on my own, collaborating with multiple operators to better understand the business and uncover good possibilities while also reducing risk through diversification. Now, I’m working with numerous operators across the country, carefully evaluating potential in over ten markets across multiple states. This range of themes, places, and sponsors helps to diversify not only my investments but also those of my close friends.
4. First glance:
When my friends shared their success experiences with Financial Peace Investing, we gained more investors. I also worked with certain business partners. We work together on due diligence and market research, sharing ideas when assessing prospects given by operators. When operators bring deals, we collaborate to raise funds for them. This extra cash gives us an advantage, especially with operators who require a large amount of outside money rapidly for their transactions. We now get first glances at our operators’ deals as well as enough of allocation to ensure that the majority of our investors participate in them. Our scale also attracts attention from operators, and contributing $5 million to $10 million to projects has a significant impact.
5. Strong Deal Flow
We carefully choose niches, markets, and operators to ensure that you always have access to a variety of high-quality deals. We typically strive to share 5-8 opportunities per year. Our goal is to serve as your one-stop shop for broad and high-quality possibilities in a variety of marketplaces and specialties. This strategy assists investors in diversifying their portfolios, increasing income, and growing their wealth. Investors value the passive nature of these syndication arrangements, particularly those with busy lives and higher-priority occupations who are unable to devote significant time to researching, identifying, and evaluating prospects. With a strong deal flow, we ensure that opportunities are given when investors have the funds to invest, emphasizing the importance of timing in investment decisions.
6. Relationship Driven:
We value good business partnerships. Trust, particularly with sponsors, is critical for reducing risks and ensuring long-term success. When I invest, I begin with sponsors with whom I have previously worked and who have proven to be trustworthy. When I see they follow through on their promises, I introduce them to my investors. We choose sponsors who are specialists in their niches and markets, concentrating on what they do best. We eschew one-time partnerships and only work with sponsors who prioritize long-term relationships for mutual success.
7. Transparency and Open Communication
As an investor with us, you can expect regular information on the returns and project development for each syndication deal. This keeps you up to date on how the business is progressing, with timely updates compared to the original projection. We prioritize expressing to operators the necessity of developing trust with investors through clear and consistent communication, focusing on transparency and open communication.
8. Access to me
My company was founded on the aim of assisting people in achieving financial stability through education and investing opportunities. I believe in maintaining direct contact with my investors. I’ve been focusing on developing partnerships with sponsors and operators. The majority of the operational workload is borne by sponsors and operators who actively add value at the property level. This efficiency allows me to devote more time and effort to developing relationships with my investors. and I like helping them through investing options, assisting them in getting started, and monitoring their progress through monthly reports.
9. No added costs:
This topic comes up regularly when investors ask if I charge a fee or markup on their investments compared to if they approached the operator directly. The bulk of the investments we provide to our investors include our compensation in the operator’s financial model. As a result, you obtain the same deal and expected return as if you went straight to the operator.
10. Alignment with Investors:
Every offer I present to our investors is backed by my own money. I never share a syndication deal that I haven’t personally investigated, verified, and invested in. When I first launched the company, I knew I didn’t want to be the marketing arm for sponsors. In my work, I am in charge of completing due diligence, inspecting properties, analyzing business plans, and verifying that private placement offerings follow SEC and FINRA guidelines. Despite our strong relationships with these firms and the income we receive for raising cash, which may create a conflict of interest, Financial Peace Investing is not obligated by any contract to complete a certain deal or a specified number of deals. We frequently opt to collaborate with them because of their proven track record, concentration on their specialization and market, and regular replication of effective techniques. Based on my personal experience, I can confirm that the majority of these transactions fulfill or exceed expectations.
You can contact me via email (peter@financialpeaceinvesting.com) or by scheduling a phone conversation. Enjoy your investing journey!
