July 21, 2022

How to Select The Right Investment Vehicle - Billy Keels

Billy Keels
CEO and Founder FGCP

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The perfect investment vehicle doesn’t exist.


I should know…First I thought it was stocks, then mutual funds, then my qualified retirement plans, then real estate…Until one day, I realized that the answer was right in front of me…


By the time you finish today’s episode of @The Going Long Podcast you’ll collapse time frames so that you can get to your investing destination much faster than I did…


By the time you’re done taking in this interview you’ll be able to answer these questions and so much more:


- What’s the process to select your investment vehicles?

- How do you come up with your criteria for investing?

- Do you want to take an active or passive role investing?


If you haven’t already, make sure that you #subscribe to the podcast and leave an #honestreview.


#billykeels #goinglongpodcast #longdistanceinvesting  #podcasting #podcasts #growingtogether #buildingcommunity #teamworkmakesthedreamwork


Watch full episode on YouTube: https://youtu.be/REbZnhFINgU

Episode Transcript


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Billy Keels


Billy Keels  00:00

Today's conversation is sponsoredby first generation Capital Partners. If you're an accredited investor and youwant to know about how we're helping other accredited investors keep more oftheir income, go to first gen cpe.com forward slash going long.



You're listening to the goinglong podcast with Billy keels, the number one podcast for long distance realassets investing.


Billy Keels  00:22

So welcome back once again togo along podcast with Billy keels, we're back for another one of our soloepisodes continuing to deliver on the promise and making sure that we aregiving you this not just the strategy, but the tactics and the actions. And alsoreally, what are some of the things I'm thinking about? What are some of thethings that that we have seen, that we know can help you get to your goals andyour dreams much faster. And so also want to make sure that we're recognisingthe honest written reviews because you continue to take time. And so today,we're gonna highlight another one of our honest written reviews, and then we'regonna get into today's conversation. So today's honest written review comesfrom m k l, a, p 111. And talks about not always you can invest in yourbackyard. So it goes on to say not everyone should invest where they live,because we got a whole world of opportunities to live in and or invest. Billyis a perfect example. He brings so many great guests to constantly keep showingthat it's possible, and that it's not very hard, I highly suggest to everyonewho does not want to invest in their backyard. So I want to say a big thank youto MK L A, P 111. Really appreciate you continuing to share that. And alsolisten, if you want to have your name and your honest written review sharedwith literally people in over 30 countries, we're in a with a podcast, it's inthe top 1.5% of podcasts globally, then make sure you leave us your honestwritten review. Once again, we also take this because it helps to make thepodcast even better, being able to adapt and do things like we're doing today,which is helping you get to your right destination for your investments. Andtoday, we're going to take a little bit further than we had episode 229 gonnarecommend if you have not listened to Episode 229, you go back there, check itout, because it's also going to help set the foundation for today'sconversation because where we left off last time, really was selecting theright destination. And by the time we finish today's conversation, it's goingto be a brief conversation, not only will you have a number of new ideas how toselect the right vehicle, but I'm going to give you some very specific tacticalactions that you can take today to start to gain even more clarity. So onceyou've gotten a chance to get clear on the destination, and once again, we wereusing the the the idea of being able to retire in your 40s. And being able todo that. And we talked about how to do that. Specifically, I said if you if youwant to find out more about the specific concrete steps that we walk through,go back and listen to episode 229. It's really brief, but it's going to be veryhelpful to continue to get you to continue to build today. So one of the thingsthat happens is, you know, you have this specific destination. But maybe youdon't know how to get there. And one of the things that I like to say typicallyis if we use a destination like a wonderful, amazing city, like Barcelona,there are a number of ways to get to Barcelona, if you are living in on theeast, or the West Coast of the United States, for instance, if you will, if youdon't feel comfortable getting in a plane, maybe you want to go from and itwill say the bay area of San Francisco, you're going to drive in a car all theway to New York, when you get to New York, you're going to views the book,you've used the car, now you're going to use a boat, because you want to get ona boat from New York, and you're going to take that to Lisbon, then once youget to Lisbon, you're going to get on a high speed train, and you're gonna gofrom Lisbon to Madrid. And then from Madrid, you're gonna get on a scooter. Andyou're gonna go on the scooter from Madrid to Barcelona, different ways to getto Barcelona, but you've finally gotten to the destination. That's one way. Theother way is, well listen, you feel very comfortable flying. And so you decidethat you're going to get in a high speed train from the Bay Area. And you'regoing to take that to Chicago. And then from Chicago, you're going to get on aplane, and you're going to go nonstop from Chicago to Barcelona. Both of theseways are completely legitimate to get to Barcelona. And you've used the vehiclethat you felt the most comfortable with getting to Barcelona, it's verysimilar. When you look at how you're going to select the right vehicle for youto get you to your investment destination. thing that happens is usually whenyou don't have a criteria, you don't really know which vehicles you feel the safest.And so because you have that lack of clarity on which vehicles you feel safe inor don't, then it creates more sense of insecurity. When you have a sense ofinsecurity, well, you typically don't do anything you stop, you're stopped andyou're stuck where you are. Because you that may be one of the ideas or theremay be another idea is that every single vehicle sounds fantastic becauseyou're listening to different podcasts, you're watching different videos, andeverybody makes it sound like it's super amazing. And that's the vehicle thatyou should take. And the reality is when you're terrified either because youhave a lack of clarity or because every single thing looks and sounds great.Well, it's going to lead you to the same end In game, it means that you'reprobably not going to take any action. Because either think sounds too bad oreverything sounds too good. So what I'd like to do is share a couple ofquestions that you may want to ask yourself to help you start to gain clarity,get rid of the high highs and the low lows so that you can start to select theright vehicle and or vehicles. Because personally, I believe that there is noone vehicle that gets you to your destination, it is the combination of thenumber of vehicles that you feel comfortable with, with the teams that you feelcomfortable with, and or the person who is actually doing the work. Sosolutions, let me give you a couple of very simple questions that you can askyourself to start to take action. The first thing I would say is, what role doyou want to play in terms of the investment? And what I mean by that is, take alook at do you want to be someone who is very active? Do you need to be able topick up the hammer to go to the property to go to the investment? To see thatall the time? Or are you someone who feels comfortable? Being able to vet ateam and be able to invest passively with others? That's a real question. Andit's a real understanding. And I'll just use my own example in the verybeginning. And I think everyone knows, I opted to invest directly because Iwanted to actively invest. I wanted to have the ownership because I needed theexperience. I know that about myself, this is a lot that it's going to beimportant to understand who you are as a person. Do you need to gain theexperience first? Or do you feel comfortable with relinquishing that directresponsibility actually vetting the person, the team and then being able toallow them to do the work? That's the first question, I believe that you needto get really clear on and be really, really honest with yourself. It doesn'tmean that if you decide to be active, that you can't become passive laterprobably means that you're going to recognise all the work and the hard workthat goes into it. And you're going to gain a perspective for it that youeither want to continue down that path, or maybe you're going to want tochange. That's the first thing. The second thing I would say is, after youunderstand whether it's you want to be active or passive is how well do you understandthe vehicle that you're looking at? What I mean by that is, we talk a lot hereabout real assets. And there are a number of different real assets that you canlook at, do you understand how things work from a real estate perspective, thefact of the matter, you understand the business model, there are rents thatcome in those rents then have different operating expenses that come out, youneed to pay for repairs, for maintenance, for taxes for insurance, you haveteams of people that you need to pay lots of different operating expenses, fromthat brings you to your net operating income. And then if you have a mortgageor some type of debt, you need to pay that debt. And then everything else afterthat, more or less, you get a chance to keep and or redistribute to others. Ifyou understand that business model, you understand that asset type andfantastic very similar thing, if you're looking at self storage, or mobile homeparks, very similar business models, if you're looking at something that if you'relooking to invest in other hard assets, maybe something like an ATM machine,well, you understand that people go to machine they pay, they have specifictransaction fees. And if you understand that may be something that you want todo as well. Maybe you want to be a mom and pop and type of shop that getsstarted, you own those machines, or maybe you want to invest with someone else.Or you may be someone who works in the energy space. And you understand thatthe production of new oil and gas, it's by barrels and those things happen. Andwhen you when you are producing that, then that creates return. So depending onwhich and I just use these as examples. But these are many other examples. Anyof the other examples of things that you invest in, it could also be paperassets, that may be your thing, definitely not my thing, but it may be yourthing. It's understanding the business model and how comfortable you feel withthat. And then understanding how those different vehicles can help you. Meaningif you're looking at something that is traditionally a passive income stream,ie the IRS says that it's his passive income by very typical things like rentalreal estate royalties, in you're looking for that because you like the way thatit creates consistent returns as well as has a lower tax structure than maybethat's where you want to go. If you're someone who is a high wage earner, youare not a real estate professional and you are someone who is enjoying nothaving to do the work, you like consistent returns, and you also like nothaving to pay high taxes? Well, you may want to look at something like theenergy space because that is something that will allow you to achieve thegoals. And that's these are models that you understand. And these are benefitsthat you're specifically looking for. And then from there. And lastly, like Isaid, I want to keep this very tactical, what are the different steps that youneed to take to actually move to action because if you answer these questions,but you don't take action that really doesn't help you very much because you'reultimately you want to be able to take action, be able to take action on theinformation that you have so that you make the most informed decision possibleand then be able to move towards As your goal, you may find that when you movetowards a goal, it's not the one you want. And so you pivot, you move to dosomething else. Or you may decide that that's the thing that you want to do,and you want to continue to move forward. So let's get into some of the verytactical steps that you can take to actually move forward to start to takeaction. Because if you don't take action, then there's a very slim to nopossibility that your current situation will change. So we've talked about someof the questions that you want to ask yourself. But let's talk about also towhat are some of the very concrete steps that you can take from this point toactually start to move forward in action. So we use one of the examples andmaybe you want to written you listen to the podcast, you've thought about,Okay, listen, I like the place that I'm living in. But this is not the rightplace for me. So you want to find out what is the what are the steps that youcan take, and you want to learn from someone else's mistakes so that you don'tmake the same mistakes and being able to set up your long distance investmentsystem and those processes. One of the very first things that you can do istoday, right now go to Billy keels.com, forward slash seven mistakes, thatwill, you will get a chance to get a guide that's going to share with you themistakes that I made, so that you don't have to make those same mistakes as itrelates to going out and creating your long distance investing machine. Also,the next thing is for someone today who is a high wage earner, you are someonewho is looking to create consistent future returns, you don't have to do all ofthe work. And you're also looking to reduce the amount of income tax thatyou're paying. Well, in order to do that, one of the great ways that you canfind out is take action right now, and go to first gen si p.com forward slashgoing long, there's a there is a guide, we're going to talk to you about thingsthat you can do to actually start to get more informed and be able to takeaction so that you can once again, select the vehicles get more informed on thevehicles that are right for you, and be able to then start to create movementforward so that you can help to change your situation. So like I said, one ofus these conversations to really be very like strategic, but then also give youvery tactical actions that you can take so that you can start to move forward.So with that, hopefully this has helped you to get more clarity around how youcan go out and select the right vehicle for you for your for your family sothat you ultimately can get to that destination that we talked about. So shouldit today's conversation is going to leave you with lots of new ideas. We'd loveto know what those ideas or those thoughts are. We'd love to get your honestwritten review as well as your feedback. So if you want to take a second to dothat would be greatly appreciated. Don't forget, I'm going to be sharing thesehonest written reviews across literally people that are in 30 plus countries,and over, you know, 1000s 10s of 1000s of downloads, which is going to be greatfor you to also get that get that visibility and share with everybody. Solisten, while you're working on that stuff. I'm gonna go ahead and prepare forthe next conversation. So go out and make it a great day and thank you verymuch. Trust that you enjoy today's conversation and once again, today'sconversation was sponsored by first generation Capital Partners. If you're anaccredited investor want to find out more about how we're helping accreditedinvestors to gain their personal freedom even faster. Go to firstgencp.comforward slash going long.

Billy Keels
Founder & CEO of FGCP
Billy is on a mission to share a roadmap and opportunities with other extremely busy, high-paid professionals on how to find financial freedom through investments. Listen in to learn how!
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