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Has anyone experience with Dean Vagnozzi's financial plan?

Home Personal Finance and Budgeting Has anyone experience with Dean Vagnozzi's financial plan?

  • Avatar Larry Ragman 
    Participant
    Status: Other Professional
    Posts: 614
    Joined: 08/30/2018

    Came through my email is a figure of speech. I know the project manager working on this specific project. Like I mentioned, this is one that I’m familiar with in the real estate industry. There are similar deals across all industries e.g. medical, oil and gas, etc etc.

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    I for one would be interested in your thoughts on how a person who has just reached a point in his or her investment trajectory to be able to undertake private equity can find introductions to good opportunities in private equity. Some financial advisors trade in this space, new crowd funding sites offer some opportunities, and obviously your situation in which you know the players puts you in a strong position. But what is the best way, or at least an effective way to break-in to private equity?

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    Hi Larry, finding good private equity deals through networking is the best option (I know – shocker). As an individual investor, there are a number of options 1. Work directly with private equity firms, or 2. work directly with companies/individuals seeking the investment. Both present challenges that make finding a good deal a bit harder. One of them is having enough capital, established private equity firms would often seek a hedge fund or private equity firm that invests in other equity firms (called funds of funds). Think of a group buying and merging 20+ GI practices. It requires a hefty investment. However, sometimes private equity firms can offer portions of those deals directly to their clients after a big portion of the deal is secured (think bank loan to cover 30%, equity fund to cover another 30%, and then offer 10% to individual investors). Another challenge is finding deals you are comfortable with. The advantage of working with a middle-man (private equity firm) is that they have the capital and manpower to curate deals, and for that as you would expect there is a fee.

    Now, there is always a way to improve your networking and exposure. This can be done through various avenues. For instance, join a chamber of commerce, reach out to friends in finance, register as an accredited investor with firms that would work with the kind of capital you have available, join the axial market (great source for networking and seeing deals).

    Does this help?

     

    I haven’t seen one private equity offering that I’ve wanted to invest in.

    If I wanted to lend to a developer I could do it directly @ 9-12% pa. I would get my lawyer to draft a mortgage over the property and stump up the short term capital for a year or so. But I think real estate liquidity may well have peaked and there’s a reason developers are finding it harder to get financing.

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    If you lent to a developer you would want a mortgage over the property and they would want 500k+ not 50k to make it worthwhile. .

    A situation would be if you had a block of land the developer wanted to buy. They may not have the funds to develop after buying it from you for say 2M and need a further 1M. You would sell the property to them, get a mortgage over it and lend them 1M @9-12%. And invest the remaining.

    Private equity I presume would take a cut in all this and you would get to invest 50k but have no mortgage over the property and get 8% or less. A critical thing to me is security and having a first mortgage over the property.

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    Hey Dont Know mind – becoming a lender is another way (of many) in which you can invest in real estate. I find that it can work for smaller deals such as the ones you described. You are right, private equity firms would take a cut for finding the deals and managing the investment. But you can also invest directly with the individual or company seeking the investment and minimize cost. That would really be up to 1. finding a suitable investment, and 2. having the opportunity to join such investment with amount of capital at your disposal.

    All,

    I provided the example of a real estate deal because it is the most recent private equity deal I’ve been exposed to and can validate as a reputable investment. With that said, my post is about private equity investment and not about real estate investments.

    Of note, I’ve explored realtyshares and I think it might work but I would personally not invest in it. In my experience, good deals are not advertised.

    Good day to all!

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    Yes, thank you for taking the time for a thoughtful reply.

    Larry

    #166724 Reply
    Liked by Tim, Marvin.Gallo
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3030
    Joined: 09/18/2018

    @larry
    “But what is the best way, or at least an effective way to break-in to private equity?”

    May I edit your query? Change “or” to “and”?
    Just say “no thank you”.

    #166738 Reply
    Avatar Kamban 
    Participant
    Status: Physician
    Posts: 2484
    Joined: 08/01/2016

    My friend committed $75k and when I last checked only $25k has been drawn, but it was returning 8%.

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    Curious to know if he parked $75K with them but did they pay 8% for the whole 75K or just for the 25K that was drawn. If the latter, the remaining $50K in the account was sitting idle and earning 0% interest. Or was it put in a money market account earning 1.5-2.0% interest from which they could draw the money from?

    #167370 Reply
    Avatar Kamban 
    Participant
    Status: Physician
    Posts: 2484
    Joined: 08/01/2016
    But I sometimes wonder if I am overly conservative. I definitely prefer to learn the answer from the experiences of others.

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    It all depends on your other investments. I never invested in alternative investments till I was secure that I had fully funded my retirement and savings for college education for my child with the usual stock market investments. Only with the extra savings after that did I venture into the non traditional investments. I could lose it all but still not have to worry about being underfunded for retirement.

    Some like to risk their money in these so call guaranteed ventures earlier on in their life. A few strike the mother lode but most end up like the vast majority of the gold rush miners of 1848-55.

    #167371 Reply
    Avatar Larry Ragman 
    Participant
    Status: Other Professional
    Posts: 614
    Joined: 08/30/2018

    My friend committed $75k and when I last checked only $25k has been drawn, but it was returning 8%.

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    Curious to know if he parked $75K with them but did they pay 8% for the whole 75K or just for the 25K that was drawn. If the latter, the remaining $50K in the account was sitting idle and earning 0% interest. Or was it put in a money market account earning 1.5-2.0% interest from which they could draw the money from?

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    Those are the right questions, I think. The 8% was at an annual rate on only the funds drawn (e.g., cash on cash return of 2% in one quarter etc on the $25k). The remaining $50K stayed fully invested at MS. I actually don’t know how my friend has it invested, but the key point is that it is not pulled out into a separate MM account or anything like that.

    #167379 Reply
    Avatar HiramMD 
    Participant
    Status: Other Professional
    Posts: 1
    Joined: 04/08/2019
    #204996 Reply
    Avatar Scopemonkey 
    Participant
    Status: Physician
    Posts: 92
    Joined: 12/28/2017

    So everyone should have gotten this response then:

    “Came across your post on the white coat investor forum pertaining to my company, “A Better Financial Plan”. I am sending the same email to everyone that commented on it with the same exact response. Some of the comments were sarcastic. Some were not.   Here are some bits of info about what we do at my firm. I make ZERO guarantees.  Never have.  But the 4 investments we have offer higher returns with less risk than anything you can find on wall-street and without using annuities.  It is that simple.   You can be the judge.  Somebody said that because I have an “affiliate” section of my website that means I am paying people to say nice things about me.  Unreal. My affiliate section pertains to the hundreds of advisors across the country that pay me to teach them what I do. It is that simple.  We have a few investments that traditionally require a lot of capital to get involved with…which is why you won’t find them at Vanguard….or any other traditional cookie cutter advisor.  We worked with one of Philadelphia’s largest law-firms to put an infrastructure together to allow like minded investors the opportunity to pool their money to take advantage of these proven investments that have historically delivered much better returns with a lot less risk.  Simple.  Traditional advisors are restricted by a broker dealer telling them what they can offer their clients.  I am not restricted.  I am NOT a stock broker.  I CAN’T sell you any mutual fund or stock.  I am an entrepreneur.  Spend some time watching these clips.  If they don’t make you want to meet with us to learn more than then is nothing else we can say except that I wish you luck. We have no shortage of clients that we echo what you hear below……click on these links or copy and paste them into your browser…. https://vimeo.com/deanvagnozzi/review/267248161/869e0281f4    (our clients) https://vimeo.com/deanvagnozzi/review/265430971/944f66cc31   (my attorney)https://vimeo.com/deanvagnozzi/review/250185486/603cf28336   (about me) Please visit our website to learn more, http://www.abetterfinancialpaln.com. Our office number is (484) 425-7393. My personal email is [email protected] if you have questions. Have a good day”

     

    anyone suddenly feeling the FOMO …….

    There’s nothing you can do for me right now Dean. Have a good day.

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    I contacted his office about 8 mos ago after hearing his radio ad (I live about 1/2 hr from his office), then watched every one of his videos and learned about the 4 product lines he sells.  Life settlement investing is widely done now, including various companies bundling these policies as funds.  But I agree with another poster here about the “morbid” factor, especially as a doctor, and there are definite risks.  He also invests in legal settlements, basically staking a litigant with funds to bring a lawsuit that might not otherwise be brought.  After listening to his videos and watching him, I didn’t find him someone I’d risk assets with, even if I were to consider these alternative investments; if you watch his videos closely and are a careful “reader of people” like a good doctor should be, you’ll come to your own conclusion as to why.

    Agree with most everyone on this stream that good investing should be rather boring.

    #205052 Reply
    Avatar Nugget 
    Participant
    Status: Retired
    Posts: 1
    Joined: 07/19/2019

    YES!

    My wife and I have been dealing with Dean Vagnozzi’s firm for three years. We were skeptical at first. Did our homework then invested a small amount in a life settlement. Since that first investment have moved more money out of the crazy stock market into some other options they offer. We have averaged over 13% per year for the last three years. With some of the products we are receiving a monthly deposit directly to our bank account. Have staggered the investments so we receive a deposit about every two weeks. $$$ Enjoying early retirement thanks to Dean Vagnozzi.

     

    #231861 Reply
    Avatar Kamban 
    Participant
    Status: Physician
    Posts: 2484
    Joined: 08/01/2016
    YES! My wife and I have been dealing with Dean Vagnozzi’s firm for three years. We were skeptical at first. Did our homework then invested a small amount in a life settlement. Since that first investment have moved more money out of the crazy stock market into some other options they offer. We have averaged over 13% per year for the last three years. With some of the products we are receiving a monthly deposit directly to our bank account. Have staggered the investments so we receive a deposit about every two weeks. $$$ Enjoying early retirement thanks to Dean Vagnozzi.

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    Thank you for that really glowing review of his investments as being less crazy than the stock market. 🤣

    #232080 Reply
    Liked by Scopemonkey

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