Episode 56: Alternative Investments Opportunities with Denis Shapiro - Re release

July 7, 2021

In this exciting episode, I’ll share with you my interview with Denis Shapiro. Get to learn how you can build a steady cash flow portfolio including many alternative assets, such as Note and ATM funds, mobile home parks, life insurance policies, tech start-ups, Industrial property, short term rentals, and more.

Denis is a successful alternative asset investor and he helps accredited investors increase their income through alternative investments.

Tune in to this podcast to get the strategy you need to leverage yourself, create multiple streams of income, and build your wealth portfolio…and then you can decide whether you want to work forever (I probably will!) or turn your career into a lucrative hobby.

Hi, I'm Dr. Melva you're board certified radiation oncologist, and serial entrepreneur and investor. Welcome to the 1% code podcast. I help top income earners create multiple streams of income to support the career they love or the one they want to love. Again, learn more on the 1% code podcast. Hello.

Hello. Hello, and welcome to another episode of the 1% code podcast. I'm your host, Dr. Melva board certified radiation oncologist, serial entrepreneur, multi franchise, owner, and investor. And I'm so happy that you're joining me here today is I helped to educate you on creating a lucrative, passive income stream while still working your nine to five and today's episode.

I'm so excited that we are hosting Dennis Shapiro. Welcome to the show.

It's a pleasure to welcome. Welcome, welcome.

So let me introduce you to our audience. All right. So Dennis began investing in real estate in 2012. When the market was just beginning to recover from the GFC global financial crisis. For those of you not familiar, he built a cash flowing portfolio, including many alternative investments.

And I'm sorry, I'll turn it into assets such as note and ATM funds, mobile home parks, life insurance policies, tech startups, industrial properties. Short-term rentals and more. Wow. He co-founded an investment club for accredited investors in 2018. Following the success of his investor club. He launched SIH capital group S I H capital groups provides accredited investors with a simplified strategy to invest for passive income.

All right, Dennis. So tell me more about this and introduce yourself to that audience and let's get started. I'm happy to have.

Yeah, awesome being here. And I know that was a, that was a handful. So thank you for, for saying that. Uh, so I started investing, um, in, when I was only 14 years old, my oldest brother gave me a copy of rich dad, poor dad.

Uh, we come from a family where if you find something good, it's like your job to brainwash the rest of the family members. And to liking the same things that you do. So he read rich dad poured that he absolutely loved the book. He's like, he's like, dad, you got to read it. I read it. And I was very cynical.

I was like, oh, this guy's probably making more money on his talks and his, his, uh, speaking engagements and the, on the book than the stuff he's actually writing. But I think. We'll read the book. And I was like, you know what? I should buy my first asset. So I bought my first mutual fund. I was like a part-time job.

I was working, I was working like a pizzeria, an ice cream shop. I saved up like my first thousand dollars and I opened up a brokerage account. I remember statute at the time and the trade cost me $7. And I'm old enough to actually say, to pay for a trade. And I remember following that mutual fund for the whole year.

And I was like, oh, I'm just waiting to be rich. And it kind of never happened. So then I started, uh, getting into more of the traditional side of things and I was. The mutual funds. Isn't the answer? Well, maybe I have to learn how to individually pick stocks. So then I started following along Warren Buffett's and Peter Lynch's.

And I really went down that rabbit hole with the intentions of making a career out of stock baking. I really want to be the next Warren buffet who doesn't want to be the next one, right. Age 14, 14 through high school going into college. Um, so I had the fortunate and unfortunate, um, Timing where I went to a business school right.

In the smack of the global financial crisis. So I was literally going for job interviews and getting to the second or third round and then get like an email that the businesses, I mean, the company's no longer in business. So it was definitely an interesting time period. So I wanted my whole career to be in the equities place, went into the global financial crisis and said, okay, I got to pivot.

So I went straight from my MBA. And while, while I was in my MBA, I got recruited by the government and I was like, wow, it's really nice being recruited, but you know, you're in a financial crisis. I was like, I guess I'll go work for the government. And then I got my first paycheck and I was like, wow, not only is the government, my employer.

They're also my business partner because of the amount of taxes taken out. So that's when I got into alternative investments. I think I Googled, like, I think I got home with the first paycheck and I was like, how. Pay less taxes legally. I think that's what I searched for. And I kind of got into, well, you know, buying real estate is the answer.

So I got into real estate. I made every mistake known to man. You know, that was about 10 years ago. And in 10 years I've been slowly kind of transitioning from single family rental to more of the passive side, more of the note funds and ATM funds and life insurance policies. And I kind of got more deeper, deeper into.

Oh, God deeper, deeper into the rabbit hole, uh, in these last 10 years. Okay,

let me, let me kind of stop you there and ask a little bit. So a lot of my audience are high income earning professionals, doctors, lawyers, dentists. And in the question, or the thought you had that kind of propelled you into real estate is how do I legally pay less taxes?

So I think that's a question that a lot of my listeners can relate to. So let me ask you, have you, did you see. The benefit of doing that, where you started initially, or how have you made that transition from what you listed that you started at the beginning to what you're doing now? Was that a difference in the less taxes or is that more of a preference return on investment?

How, how did you make thattransition? So the. An alternate investment was a single family. Rental actually bought it from my oldest brother, which was big mistake. Had the highly recommend to your community, not to buy from family, your first property. I didn't know, market research did nothing, but I did do enough analysis where it was like, if I just hold onto this thing, I could even break even and lose money on this, but I'll save money on taxes, depreciation, and I'll be actively managing it, which helps with taxes.

So I did that calculus. I did, I didn't know a little bit at that time, but as I, as I progressed in my. Alternative investment career. Let's say I realized how tax friendly it can be. I hate the, I hate the term. Like if you are in the syndication world and you're looking at these private placements, that term like tax friendly is thrown out there as like a marketing gimmick.

And part of what you realize is that it's not really tax friendly. A lot of these alternative investments allow you to do the pass through depreciation. And what allows us to do is tax. A lot of your, your gains and tax deferring still requires a lot of planning, a great CPA and everything like that. So I don't want to go and say like, Hey, I discovered, you know, real estate and I never paid taxes again.

I made very calculated decisions initially, where I knew I would at least break even it was a terrible investment, but I did, it did fulfill the goal I wanted to, and as I got more knowledgeable in alternative investments, that's when I realized that with the right planning, it can be very. Friendly and deferred.

Okay. Okay. So I'm not as familiar with a lot of the, and maybe this will help my audience too. I know we know a lot about real estate syndications. When you look at passive investing, like for example, there are a lot of physicians in my audience or listening area who really don't want to be active investors and they're looking for passive income opportunities, but I'm just curious, as far as the ATM notes, mobile home parks, life insurance, policy texts, startups, how.

How are you doing that? And are you still doing that or is it all we real estate syndications. That's your focusnow? Okay, so that that's a great point. You don't want to be like a Jack of all trades. You want to have knowledge in certain areas I call up. So I'll start off with the fact that apartment buildings is core to what I do.

That is my bread and butter. And what ended up happening is while I was networking with other apartment building investors, because at that time I wasn't the operator. What I ended up having with these conversations where I would have a 30 minute call with someone to this. Maybe a different limited partnership opportunity, which is a hundred percent passive with another investor.

And the conversation will start off about what did he think about that operator? And then by the end of that conversation, he would say like, you know what? I had a really good opportunity and self storage and mobile home parks. And these are, these were asset classes that I didn't really know at the time.

But what I, what I realized is that apartment buildings are like a gateway kind of drug in that sense where a lot of the terms being used in apartment buildings are directly relatable to the other alternative derivatives. I call it, which is I would put apartment, apartment buildings. Self storage, mobile home parks, all of those.

Once you kind of see a private placement memorandum and one, and see a business plan in one, they're very transferable. So it's not that if you're an apartment building investor, you should go out and buy your own self storage facility. But if you're an apartment building investor, you'll be surprised of your ability to look at a self storage deal and being able to analyze it without ever seeing another self storage deal before.

Okay. Okay. And, and just with that said, is that something that comes across often for you where you're having the opportunity to look at apartments and self storage and the other ones in asset classes you mentioned?

Yeah, so I I've had opportunities where I've had the opportunity to join venture on a mobile home park.

Uh, I've had the opportunities main. My main operational opportunities always came from the apartment building side, but in terms of investments, Um, the investment opportunities as an LP, once you kind of go deep into the limited partnership side and you have maybe five to 10 operators and maybe a list of 10 fellow limited partners, you'll get presented with those opportunities all the time.

Um, A lot of that is why I wanted to write my book was to actually explain how relatable a lot of these alternative investments are, where if you put in the time to learn about apartment buildings, you actually have other opportunities as.

Okay. Okay. So for my listener out there, who has been career focused, you know, like for me, for example, as a board certified radiation oncologist, 14 years in student loan debt, and it was this transition to the freedom world, the entrepreneurial world, you know, tax depreciation, real estate, investor status, all, all of these, um, you know, terms, like you said, that reduce the legal tax load.

Where, where does someone start? Okay. So say someone has some money and they want to grow their money. Can you tell us more about, I know you talk about some of the platforms like LinkedIn, how, what is the language to learn about real estate on LinkedIn? How can we find these partners learn about it?

Where would you have them start?Sure. That's a great question. So I'd like to start off with, if you, that there's a common misconception out there of being a hundred percent. Right. You hear the term of over and over again, the problem is if you're a hundred percent passive without any education and knowledge, what you really are is a hundred percent gambling, right.

At that point. So I believe the first step for most people who will look into private placement, right. Uh, private security deals is to realize that these things are expensive, you know, just because you make a great salary. And just because you have a high net worth doesn't mean you should throw away what most cases, a minimum investment is 50,000 or more.

So that's the first thing to realize is that you should, you should gain the knowledge so you can protect those investments because they are great investments. Once you build up that knowledge. So how I recommend, and this is kind of how I did it. What I did with LinkedIn is you just literally go into your profile and just put real estate investor.

So you could, you could still have your main, you know, oncologist and everything like that. But also put in a section that says, you know, a real estate investor, or if you're looking for not real estate, uh, you know, uh, business, industrial, whatever the thing is just putting the words investor, because what happens is there are a whole slew of people out there in LinkedIn that kind of scour those, that, that type of verbiage in your profile.

And they'll reach out to. Okay. Now this does not mean you should be investing with those people. I just want to make that very, very clear is that they'll reach out to you and they'll try to take 15 minutes of your time, 30 minutes of your time. And honestly, most of that is spent. And most of that, you'll have to realize that, well, what it'll help you do is it will present you with the verbiage that you do need to learn the basics, right?

So let's say you get a new real estate operator and they're so excited. They see the fact that you put a real estate investor. They see the fact that you are a doctor. They feel like all that's prime targets for them. And they may have never done a deal in their life. They just did a coaching. Coaching class for two weeks, and now they're taken down this $8 million deal and they're reaching out to you and they're going to be super excited for that deal.

What you need to do is objectively listen to them and listen to the terms being used, because there's not a lot of them, but it's its own language. It's like when two medical professionals. They talk their own language. It's English, but good luck has a third party, bystander, you know, listening to that and trying to figure it out.

Right. We can't even read the scripts. There's a reason for that. So once you hear the language, write down what terms you didn't understand. After the call, thank them for their time, whatever you feel is appropriate. But then go look up those terms. Once you realize that you have a good grasp of those terms, then you could go to step two.

Step two is to start going out and networking with people. And usually that's as simple as going to a conference or a meetup. And I know this. This sounds really time-consuming. But if you go to one good conference and you network with five or six good investors, that's all the conferences you'll ever need to go.

If you truly want to stay passive, because now you have five people to call on a quarterly basis and see, Hey, I'm thinking I'm putting money in this deal. Have you ever heard of this operator? You know, it takes time to build up that relationship because that's not the first. Right. You're not going to go and start disclosing, Hey, this operator's terrible.

Cause you don't know who that person is, but if you go to a conference and the way that I tell people to understand which conference to go to is look who the speaker is. Right. If you want to be a hundred percent passive, you're not looking at you. Shouldn't be looking to build up a single family rental portfolio.

What you should be doing is looking, uh, where other operators of larger buildings are, are speaking at

right. I'm going to pause you right there just for anyone who's new and not doesn't know the real estate syndication, if you could just quickly and like a 32nd defined. Operator LPGP limited part, if you could kind of go through that for us.

Yeah, absolutely. So I'll start off with the, the term that's used. Most of the syndication syndication is just the pulling together of money. That's all it is now in a syndication. There's usually a general partner and the limited partner. So a general partner, this is their career. They go out, they find the building and they put the business plan together to maximize the value of that building.

Okay. The limited partners are usually the ones that are actually putting up. Okay. And they are very passive. They're the words limited actually means that they have limited liability and they have a limited, uh, so it's limited liability and. What's the other limited,

they have limited input also like their money investors, but they can't say no.

We want these types of windows in the apartments. Exactly.

So they have a very limited say, so they're not going to get sued for that building, but at the same time, it's not their business plan. They need to be investing in the business plan. So the moment, what I like to say is the moment that the limited partner wires, the money to the general partner, it is a hundred percent passive after that.

Okay. But the point to get to the point where you find the operator, where you do your due diligence of the operator, that's the active role. And that is the role that almost every, in every, even if you're a high net worth individual, they should either be the ones doing that homework beforehand, or really trust someone who's doing that work forthem.

Okay. And the definition of the operator you said is the one who is facilitating the.

Yes, they are at the ones actually putting together the deal. So they'll find the property. They'll go check out the property. They'll get the property on the contract. They'll make a nice presentation. They'll go through the securities attorney to actually put together the securities document.

There's a lot of work that goes, goes a hand. And then usually the profit is split. So the, usually the profit is the most usual, um, format is like a 70, 30. That means the limited partners would receive 70% of the deal and the general partner would receive 30% of the deal. Okay. In general

partner and operator or interchangeable, or those are two separate wordsinterchangeable.

Okay. So that's the same. So those are the three main terms we would need to know in a syndication to be intelligent,

uh, intelligent, just to start the conversation because the reason. It's important to know the lingo is because if you go to a conference and you know, nothing, what ends up happening is you're going to come off in a position of need.

And that's going to come off as that. You're looking for like a coach and a mentor versus going to a conference and saying, Hey, I am looking to place my money in and fellow investors. And if you could talk at least some of the lingo, people will more readily gravitate to that and be like, yeah, I'll exchange contact information with you.

I'll get on a call with you. You know, once every three months, you're not, you're not trying to get, make best friends are trying to do is create like a little small network. It's not huge. It's a small network of people that you can trust their unbiased opinion because in this world, if you're in, if you're an limited partner investor, when.

Could pitch these deals. It is literally them pitching you and it's their job to sell you on this deal. So you're going to get a very unbiased view of that deal. So your job is to be able to network with people that can take away shed some of that bias. Right.

Right. So you're going to get a very biased views is what you meant to say.

They'reright. You're going to get a very biased view from the operator, but you'll get a very unbiased view from fellow investigator,right? Yeah. And I think that's, uh, I think that's kinda just so we've my husband and I we've been investing real estate for almost 10 years now. And I would say that's definitely solid advice because when you don't come to the table prepared, you get other people, like you said, selling you things, or just saying whatever.

Like, for example, I was talking to a lender a couple of weeks ago and he kind of threw out like 80% LTV on multi-families and I'm like, um, really like, that's where it is. And then. Subsequent follow-up questions, just like bam, bam, bam. And he was like, okay, well, I was just throwing out 80% LTV arbitrary.

But because you asked that he gave me like a real answer, you know, it was kind of like, okay, like let's not waste our time here. I'm actually seasoned. And I don't know what it was. I said after, hello, that made him think I wasn't, but I definitely understand that. It's kind of like some people were in these sales positions where it's like, they don't really care unless you come to the table prepared.

So I think that's really good advice. Um, all right, so let's talk a little bit, and you talked about this a little bit. Someone who's looking to start their network from, from like zero. Okay. You talked about that on LinkedIn a little bit. Is there anything else you'd add to that? So are starting your network, if you haven't gotten into real estate investing or thinking aboutsyndications?

Yeah. So the, the LinkedIn part is literally just to learn the lingo and you can learn the lingo. You could bypass LinkedIn. And honestly just pick up a couple of books on investing in commercial real estate, and you'll pick up the same lingo. Uh, it's just, it's kind of better to have. Practice of talking to someone about it versus just reading it.

It's like a very different level of kind of like understanding it. And how is it used and everything like that. You're not going to get that from the book. The lingo builds up the, the, your. And to be able to actually establish the network. And then once you actually have five or six people, what I recommend is quarterly calls because obviously your time is precious.

Your investor, your community's time is precious. And the people that you're trying to network, like if you try to say, Hey, how about we get on a weekly call? You know, like, unless they have completely. No regard towards their time. They're going to say no. So you want to make a request. That's reasonable. I find that quarterly is very, very reasonable.

And then usually you'll know between the first real half-hour phone call. If this person's a good fit for your network, you all, you want to be honest. You don't want to waste your time. Like if, if someone only is interested in investing in franchises and you're only interested in investing in apartment buildings, that's probably not a very good fit unless you one day want to invest in a franchise.

Yeah. Connect with them, you know, and vice versa. But the chances are, if you're going to an apartment building conference, you're going to network with other apartment building investors. Right.

Okay. So let's kind of flip it a little bit, someone. So you've started your own syndication companies that correct.

How much startup capital did you need for that? Or did you start out as an operator and you have limited partners? What, how, how did you see.

So it was a very, very long journey. So after my single family home, I started investing in more passive stuff like the, like the ATM funds and the notes and everything was done from a limited partnership perspective.

I wasn't operating any of those deals. Okay. So it's also important to see how transferable the knowledges. So for example, I invested it in. Fond. And a note fund is basically a company that buys mortgages either in first or second position and then pays you a certain dividend. So I was, let's say I would invest in a note fund.

I would see a securities document. I would get practiced at looking at it and I'll go to the subscription documents. Now, when I go and invest in the ATM fund, even though it's a very different industry. It's the same type of securities document. It's the same type of like a verbiage, like what's a preferred return and what's not all of that is kind of very, very similar.

I was for 10 years, I was building up this portfolio of different, no funds and ATM funds. And what I realized was I kind of had a knack for it. And at first it was like, okay, I wanted to diversify from my traditional portfolio. I didn't like go out and say, I'm going to sell all my stocks and I'm going to go and invest it all into single family rentals.

What I did was I kept struggling to find income from my traditional portfolio where. Like a strategy where I'm going to go buy some utilities and mix it in with my low-cost index funds, the utilities would always on the perform. And then whenever there was a market correction, the utilities are supposed to be protected and they went down just as much as the regular market because of the way the algorithms are in play.

So I've tried the utilities, I started REITs and MLPs and all these different strategies and they always failed. What I realized is alternative side was. Much more consistent because these were private securities. They weren't traded on the market. Because what I realized is that the market has unlimited liquidity, which leads to unlimited volatility and volatility destroys,explain those two things from our audience, if they're completely volatility and liquidity.

So the first term is liquidity. Liquidity is always cited as a positive for the stock market. But to me, it's a hundred percent liquidity and negative. What that means is that basically you could almost trade it in. So if you start seeing red and you turn on CNBC and all these experts, right. Are telling you how the market's going to go down, down, down.

You might have no intention when you woke up to sell, but your emotional biasness will, will take you to the point where you're like, Hey, maybe I do need to sell to protect myself from. So that's liquidity liquidity means that you can basically trade in almost any time and get your money out of it. So like, because you have unbelief on unlimited liquidity, mostly unlimited liquidity, you know, this part's the night, half hour trading and stuff, but because you have unlimited liquidity that leaves on limited volatility, that means a stock to basically go as high or low as it, as it wants as the, the, the, the market demands, you know, there are stopped.

You know, places in place. I think it's a 10% limit and where the market stops trading, but more or less that's the case. So because you could trade at anytime that leads to really big moves, that's the volatility. And because of those big moves, it destroys the yield of those plays. Like, for example, if you.

If you invest in a bunch of reeds and you're getting 8% yield, right? And let's say you have two years where you, the written really moves, but you've collected 30%. You're really happy. However, in year three in month, one COVID happens and you're down 34%. All your. Because you've got very little appreciation in the stock price during that time, all your yield has gone in a matter of a day or two, right?

So that's where I realized that was like poisoned for income. I realized that traditional is great for appreciation. If I never look at the news and buy low cost, the next fund, I could never do that. But the alternative side, the private security side, that's where you can really get higher. So as I started, you know, coming up with, you know, what portfolio makes sense for me, I started building up more and more of these different alternative investments.

And as I started networking with. I networked with two people that kind of changed my life, where we realized where, Hey, instead of me doing one, one of these, uh, syndications, why don't we pull together and do a couple of these syndications? So what we did is we kind of by defacto started an investment club and that's when my kind of career took over because instead of one or two deals, we did like 12 deals in like a year or two.

And that allowed us to really test out certain theories and strategies and everything like that. Once we saw that there was success there. That's when I actually launched the sh capital group, which is basically a read, that's not traded on the stock market because that's what I was say. So

REIT the REIT comes up a lot for my audience, but some people may not be familiar.

Can you just define that a little bit? Cause it also the question that comes up a lot that I get asked is the difference between a rate versus a real estate syndication. So.

So a Rita's a real estate investment trust. And basically what it, what it's supposed to do is it's supposed to give the person exposure to the real estate world in with the ability to just trade it on the side. Okay. So they are private REITs as well. Um, which is kind of similar to something I created, but not exactly, um, that is different than a syndication because a syndication is you're buying into one, usually one LLC that controls either one apartment building or a collection, if you're doing like a syndication font.

So it is different because rates are subject to certain laws. Like they have to pay out a certain percentage of their profits as syndication is. So it's very, very different. Also syndications allow for pass through depreciation and reach the not. So it's a, it's also a tax. It's a certain, because you are literally as a REIT, you're a shareholder in the company as a syndication investor, you are a partner in the company and thatasset backing up your investment, correct.

Where you get thedepreciation.

Yes. And you get a schedule. K. And the syndication side, you don't get a schedule. K. Okay. Okay.

And the returns are muchdifferent, correct? They are because the returns are going to be, so the read is going to be subject a public rate that straight on the stock market is going to be subject to, well, how the stock price, how the stock market perceives it.

So for example, during COVID, right, the majority of REITs were. Exactly what the S and P 500 was down. And I think it was down to like 34% at one point. The reason is because algorithms are very, you know, they don't discriminate. If everything is going red, it's going to go red. However, the private side. So what happens is because a private security is based off, let's say one apartment building.

It's not easy to sell that apartment. Right. So the value of the apartment building is not going to change dramatically. So what ended up happening in the syndication world is when March happened, there was a huge pause. On market transactions, no one was selling or buying because what ended up happening is the buyers will look into like, oh, this is blood on the street.

We're going to come in and we're going to scoop up these apartment buildings for pennies on the dollar. The sellers are like, Hey, well, let's wait and see what's going on. We're not willing to give that discount yet. So what that disconnect actually caused basically no transactions to happen. So while the read side was down 34%.

The private security world, the syndications actually did not trade hands at all. So you actually had that, you know, there, that that's where the advantage of not being liquid at that time, because you couldn't trade it. You couldn't, you can't just sell your private securities like that. But because of that, you weren't looking at a negative 34% collapse in your market value.

Right. Wow. Okay. So this is all, this is all very good at. Oh. If everyone is listening and taking notes and maybe listening to this again. So let me ask you one more question. Let's talk about the fire movement. I know you're talking about what that misses out on. Tell me more about that movement and in your thoughts around.

So I had this, um, like, uh, uh, Tiffany, I was working, I think 70 hour work weeks. I was working for the government, uh, those all out of overtime. And I was just like a sock. I didn't have a family. I was like, ah, I got to keep working overtime, overtime, overtime. And I was a naturally, a really good saver, a really good investor.

And. When I found out that, Hey, if I save enough, so the fire movement stands for financial independence retire early. Basically the movement's been around for decades, but it's been popularized by a couple of big blogs, uh, in the last decade or so, where I think there was like more like the engineers. And they were like, well, Hey, you know, if we take a complicated topic like retirement and we boil it down to a simple formula that.

We could go for just a specific number and then everything else can kind of resolve itself. So what they realized is that because there was a famous study in the 1990s to call the trend in the study where as long as you don't spend more than on average, 4% of your total portfolio, your, and you have a certain amount of invested in the stock market.

Your savings should last you for your entire life. So the, this formula basically just comes down to, can you save 25 times your expenses, invest it and then live off that amount and adjust it accordingly. So that's kind of the financial independence retire early in, in like a very simplified version. So when I found out about this, I was like, wow, look.

I was like, wow. I told my number. It was going to be, you know, three X and it turned out to be only one acts that made me feel really, really good. It also was like, wow, there's a lot of people out there that actually save and invest because. Uh, there weren't many in my network that were doing that. Right.

So I kind of went in and I just dove in. Save even more like I D like I didn't go on a vacation five years prior and the thought of vacation didn't even like, come into my mind right afterwards. So I started really penny pinching. Like I went from like a 50% savings rate to like a 70 to 80% savings.

Right. So I was, you know, I was doing everything by the book. My numbers were growing. And when I realized was that my tunnel vision. Was not focusing on a, the journey, but be on the what after what's next. So it's like, okay. A lot of people in the fire movement, they'll be like, okay, oh, if I hit X number, I could quit.

And if I quit, what are you going to do? Right. So they always have this like set bucket list. So they say, well, I'm going to travel. And that's like, that's number one. They're like, if this was, you know, what does that, uh, now wheel of fortune, um, That, that game price, price, right? Like number one is always travel.

Always. Number two is like catch up on your like Netflix queue or whatever it is. And then like number three would be like, I'm going to homeschool and spend so much more time with my kids. And then what ends up happening is people travel and they realize that, Hey, you know, it's great, but I'm getting homesick.

I want to, I want to come home and then they catch up on the Q and a queue. Right. And there's nothing to catch up on. And then number three, they get their kids home for like two or three days. And they're like, how do I read this? Cool. Like, how do I do it? Like, this idea was great, but like having my kids, I'm not enjoying them because I'm, I have this pressure and everything.

Like, this is not what I wanted. And now you have all your kids in school and now it's like Denmark. Now you haven't. Your next chapter. And that's where I'm really fortunate because as my alternate investment deployer started building and I started networking with all these amazing people. And I was like, wow, you could do this.

You could get a control of your time, but you could also invest in businesses and do all these things, which allow you to be more charitable and you can be a greater part in the community and all of these little things that you don't need to just be like, Hey, I'm just quitting. It's. The next stage where I think it always misses.

Right, right.I like that. I think it's definitely an evolution. And kind of, like you said, I think that big, hairy, audacious goal kind of concepts, a lot of people and especially stop income earners. We don't think of that because for many of us to get in the career position where we are, that was it. And then once you got there, it was like, gosh, You know, and that's when he started talking about like the philanthropy and what other things can you do?

You know, and how can you accumulate more wealth so that you can do more of what you really care about? So I think that's awesome. Well, it has been a pleasure chatting with you. I think everyone has learned a lot. I know I've learned a lot. If we want to find more dentists, if anyone wants to work with you, where can we find you and work in the audience?

Reachout. Hey, thanks for having me. The pleasure has all been all mine. Uh, so my website is S I H capital group.com. Uh, if you go on it, I have two bridge versions of my book. I didn't, we didn't really talk about the book, but if you go on Amazon, it's the titles. The alternative investment Almanac expert insights on building personal wealth in non-traditional ways.

I wouldn't tell me a little bit about what that book is about. Yeah. So we knowthat. Yeah. So just some of the stuff that we mentioned, like apartment building, self storage and mobile home parks, what I realized was there was large communities out there that had misconceptions of what those terms are.

And they were like, oh, it's an ATM fund. That must be a Ponzi scheme. Right. So what I realized is. Throughout my years of networking is there is a collection of these assets out there that have very similar qualities where it allows you to transfer your knowledge over. And I just wanted to show investors out there that there was a way of, you know, having a traditional portfolio, but also building up an alternative portfolio and what are some of their options on the alternative side?

So that's where I, what I, each chapter is kind of unique where. One chapter will be on apartment building. So it'd be like 20, 30 pages on apartment buildings. And then you'll get into what's called ask the experts and there'll be two Q and A's of like to mobile, to apartment building operators, uh, just people in that space.

I think my apartment building space, they had like a hundred thousand units between the two of them that participated. So you see how the. Answered the exact same questions. And this way, if you read the chapter on apartment buildings and you say, wow, I really want to get, go. I really want to learn more about it.

I can now go and start listening to a podcast on apartment buildings. Or I could read a book because two of my guests, one of them already has a huge book on apartment buildings. So you could go in and actually. Yeah, their book and contact those operators. So that's how I want that to structure the book.

And at the same time, I also didn't want someone wasting their time. So if they didn't like the idea of apartment buildings, they don't have to read 300 pages to come to that conclusion. So they can kind of go on to the next asset class, like a life insurance policies, because everything, each, each asset class kind of has its own unique risk and reward profile.

So only the reader will know which asset class there'll be attracted to. So that's how I shaped out the book and on my website, if you go in and there's actually a bridge versions too, uh, there's an abridged versions of the Q and A's and there's a bridge version of the actual content. So if you go on my website, sh capital group.com and you sign up for my email list, you'll actually, you know, get those abridged versions.

Okay.Awesome. Awesome. Well, that definitely sounds like a great start, especially for someone. Looking to see if this is for them and what's for them. And you've, you've mentioned a lot of options, so that's awesome. Well, everybody go check out Dennis Shapiro. And when are you starting your podcast? Are you working on that20, 22?

I've been on a lot of podcasts. I want to do some YouTube videos on some of the stuff, but I, I find that hard enough to. Three kids to get on people's podcasts. I was like, I give you all the credit in the world, uh, for doing such a great job. I've, I've listened to a few of podcasts and I absolutely love them.

Thank you so much. How old are your kids? Five, three until,oh my goodness. Yeah, monitors seven, 10 and 13. So a little bit older. So yeah, we, we wish you luck and we liked your dad's out there. Well, thank you so much for being on. Podcast episode. I hope that everyone enjoys it. Please go check out his, look on Amazon and we will link that the link to the book is on your website as well, correct?

Yep. Okay. Awesome. Well, thank you everyone so much for listening to another episode of the 1% code podcast. I hope you learned a lot today and we'll see you on the next episode. Thanks for watching the snake. If you enjoyed this episode and you'd like to help support the 1% code five. Please share with others post about it on social media or leave a rating.

And I would love your five-star review to catch all the latest for me. You can follow me on all social media channels at doctor spelled out D O C T O R M E L V A at Dr. Melva. And I want to make sure that you, if anyone else, you know, that would benefit from the 1% code podcast is a member of my private community on Facebook.

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