FHR #010 - Conservative Recession Investing with Jeremy Roll: how to wisely invest during COVID...

JEREMY LINKS:
jroll@rollinvestments.com

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IN THIS EPISODE BRYCE & JEREMY COVER:

The guest on today's show is Jeremy Roll
Jeremy is the founder of the Roll Investment Group and has been a real estate and business investor for 18 years.
Jeremy is a conservative investor
Jeremy also founded the non-profit ‘For Investors By Investors’ meetup group

EPISODE DETAILS:

Jeremy and Bryce talk about how to conservatively approach investments in today's social and economic landscape
Jeremy also focuses on how to avoid costly mistakes and maximize profits
He left the corporate world in 2007 to be full time passive cash flow investor
He manages a group of over 1000 investors in the US and Canada to seek passive managed cash flow investment in RE and business.
For Investors By Investors (FIBI) has the goal of networking and learning from other investors. It’s the largest group of public investor meetings in California.
Jeremy is originally from Montreal and got a MBA from Wharton school
Passive investing is about trading control for diversification; you leverage someone elses time and credit but give up control.
When Jeremy started he didn’t have time to be active so he went down passive route - not really on purpose but out of necessity
Jeremy advises that you need to be careful which route you choose to go down. You can get stuck down one direction after a couple of deals so make sure the path matches your personality.
An accredited investor is an SEC term to show whether you qualify based on net worth or income
Income qualification means that - if you file your taxes single - you have to have made at least 200K in the past 2 years and make the same this year. Or if joint 300K.
Net worth qualification means that you have $1million or more exclusive of the value of your home.
Don’t put all your eggs in one basket; you can still diversify if not accredited but split money and put it in different places.
Investing around Covid is a matter of patience, wait for the prices to fall and the panic to recede and then come in.
In Japan the debt to GDP ratio is off the charts - 40-50% of their budget goes to paying interest on the debt and the long term gap growth is predicted at 0-1%. They can’t properly grow the economy, and we’re looking at the same thing happening in the US.
In the recent crash oil went negative - people were paying customers to take it off their hands because they couldn’t store it.
This caused some US oil suppliers to turn off their pumps which are really tricky with the deep wells.
This could cause an over correction in the oil price later on - while the pumps are off we’re not putting any oil in storage so when demand goes up again there isn’t going to be much supply. This means that costs could go up higher than pre-crash.
As an investor, always do background checks - and every time you invest with someone check them too.
No matter how many times you’ve invested with them - things change.
A great time to invest is when people are scared in something - e.g. oil right now
Investing passively is challenging - got to do lots of networking to find opportunities.
Tips for working with others; always ask when their best time for emails is, then you can schedule emails and get a response when you need it.
Slow and steady wins the race, it’s not an overnight thing.