Why Now is the Most Dangerous Time to Invest

by Dr David Phelps

by Dr David Phelps

I

‘ve got a little bit of a rant today, and it's because there are a lot of people in the markets today who have no business being there. 

 They’re in all markets – investment markets such as 

the stock market, Bitcoin, and even alternative investment markets like real estate. These people are raising capital from investors who are looking for yield, and trying to figure out where they should put their money.

It's a very dangerous place to be right now. I say that with full respect for whoever you are and whatever you may be doing in your investing right now. If you know what you're doing and you've got good help, then good for you. But how do you know? How do you really know?

In Freedom Founders, I'm finding more and more people are coming to us with a similar story. They've tried some other things on their own or through other people. They’ve tried different kinds of private equity investments or real estate syndications or funds, without having a clue as to what's good or what's not.

Here's the scary part: We have not even hit a correction yet. We have not seen a downturn. It's coming. We haven't hit it yet, but trust me. There are deals, syndications, funds, and other groups out there that have been raising capital for different kinds of platforms, and they're going down the tubes.

How could that be happening now when there hasn’t even been a downturn? Because they don't know how to vet opportunities or manage the due diligence on appropriate, cash flow producing projects. They get in over their heads. They don't know how to find deals. They don't have a good network, but the capital keeps coming. It keeps coming because people will throw their money at anything today trying to get yield.

But if you don't have a sound manager with whom you can invest or you don’t have the experience, now is the most dangerous time in the market cycle for you to be trying it on your own.

I've seen people who have gone out into the marketplace after taking a weekend course on how to become a real estate syndicator. All they had to do was go file some papers with an SEC attorney, then they could have their own fund and raise capital for anything they wanted! That’s a very dangerous situation.

How would you know this? How would you protect yourself in this situation? Do you know what vetting needs to be done or how to do it? Can you read those documents?

Of course not; that’s not your world. In Freedom Founders, we curate the best of the best. It’s what we do. Of course, nothing’s fail-safe, but we handle the due diligence that most people can’t. We do that to keep our members safe.

I implore you: If you don't know what you're doing, keep your money on the sidelines or put it somewhere that's very safe. 

That’s not going to serve you well for very long because of inflation, and you'll need to get your money working eventually. But until you know what you're doing (or can partner with people who do) and you’re ready to invest appropriately, be very, very careful. 

It's a dangerous world out there.
To your freedom!

P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think) :

1. Schedule a Call with My Team:

If you’d like to replace your active practice income with passive investment income within 2-3 years, and you have at least $1M in available capital (can include residential/practice equity or practice sale), then schedule a call with my team. If it looks like there is a mutual fit, you’ll have the opportunity to attend one of our upcoming member events as a guest. www.freedomfounders.com/schedule

2. Get Your Free Retirement Scorecard:

Benchmark your retirement and wealth-building against hundreds of other practice professionals, and get personalized feedback on your biggest opportunities and leverage points. Go to www.FreedomFounders.com/Scorecard to take the 3 minute assessment and get your scorecard.

3. Ready to Step Away?

“How Much is Enough?” This simple question keeps hard-working professionals at the hamster wheel of active income far longer than they need to be. Watch this free training, and discover a proven model for determining how much you really need before hanging up the handpiece! www.freedomfounders.com/training

4. Apply To Visit The Mastermind:

If you’d like to join dozens of dentists, docs, and practice professionals on the fast track to Freedom (3-5 years or less), visit www.freedomfounders.com/step-1 to apply for a guest seat.

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