TGCI 98: Moving from spending 24 years in Public Financial Services industry to Private Investments.

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Episode 98: Moving from spending 24 years in Public Financial Services industry to Private Investments.

Copy of EP #18 - 2 Guests


In today’s episode, Pancham interviews Ted Greene – an investor relations manager at Spartan Investors.

Ted definitely knows the ins and outs of the industry as he has been an investment adviser for 24 years. After managing bond portfolios, he steps up his game as he recently transferred to dealing with portfolios in private investments with Spartan Investors!

In this episode, listen as Ted will share everything that he learned from his years of experience! He will share key pieces of information he got from his journey and why he transitioned to handling private investments portfolio.

You’ll get tons of value from this show as he will also share his formula when investing with examples that could help you – a rookie investor – understand deals more!


Listen and enjoy the show!

Pancham Gupta
Screen Shot 2021-02-08 at 10.12.56 AM
Maurice Philogene

Tune in to this show and enjoy!

Copy of Quote #00 - 1 Guest

Timestamped Shownotes:

  • 1:50 – Pancham introduces Ted to the show
  • 2:42 – His financial advisor experiences throughout the years
  • 5:08 – Why you shouldn’t look at past trends when building your portfolio
  • 7:53 – Diversifying your portfolio by strategically investing
  • 14:07 – How he calculates for self-storage deals
  • 23:58 – Their recession-resistant strategy amidst the pandemic
  • 25:11 – How his analogy of boulders, rocks, and sand contributed to his success
  • 28:36 – Taking the Leap Round
  • 28:36 – Why his 1st investment didn’t go as expected
  • 31:26 – Fears he overcame when investing
  • 32:44 – Why investors shouldn’t hesitate to ask questions
  • 35:36 – Ted’s contact information

3 Key Points:

  1. Don’t look at the past market trends and assume that it will always continue that way.
  2. Don’t invest in only one deal. Diversify your portfolio by investing in small amounts in various industries.
  3. Compute how much will be the increase in an asset and its net operating income to identify a good deal.

Get in Touch:

Read Full Transcript


Welcome to The Gold Collar Investor Podcast with your host, Pancham Gupta. This podcast is dedicated to helping high-paid professionals to break out of Wall Street investments and create multiple income streams. Here is your host, Pancham Gupta.

Hi, this is Joe Fairless. If you wanna diversify out of Wall Street investments, then listen to The Gold Collar Investor Podcast.

Hey, this is Mauricio Rauld, founder and CEO of Premier Law Group and if you are serious about investing in real estate, listen to The Gold Collar Investor podcast with Pancham Gupta.

Robert: Hi, there. I’m Robert Helms, host of The Real Estate Guys Radio Program and if you want to have better results in your life, you gotta put better ideas in your mind. You’re in the right place here at The Gold Collar Investor Podcast.

Pancham Gupta: Thank you for joining me today. I really appreciate you for tuning in. Have you ever been contacted by a financial advisor to help you invest your money? If you have not, I can tell you that they have a specific approach to help you plan your finances.  They will start asking you a list of questions and those are standard questions and based on the answers that you will give, they will try to come up with a financial plan for you. I have had multiple financial advisors reach out to me over the last decade, most of the time, after I finished answering their questions, they told me that I have done good with the planning so far. Now I need to do A B, C etc., etc. Most of these advisors are registered investment advisors and they have certifications that they need to have.  They will discuss creating a bond ladder, investing in a diversified portfolio of stocks, having a life insurance, protecting your family with different things and different buckets. You know, they will put everything in these different buckets. Whether you agree with the approach or not. It is a good experience to do at once. You don’t really have to go with what advice they give you, but it’s a good experience. So today we have someone who has served as RIA, registered investment advisor for 24 years and have recently moved to private investment space. Ted Greene served in the financial services industry as a Discretionary Portfolio Manager and Chief Compliance Officer, started a company facilitating private investments in IRA accounts, which they sold to Yield street in 2019. In 2020, he joined Spartan Investment Group and became a Manager of investor relations. Ted, welcome to the show.


Ted Greene: Glad to be here.


Pancham Gupta: So excited to have you on the show today, you know, are you ready to fire up my listeners break out of Wall Street investments?


Ted Greene: sir, yes, sir.


Pancham Gupta: That’s great. So, Ted, I know you have very diverse background, you know, you’ve been in the industry for quite some time. Can you tell her tell my listener about your background, and more importantly, the person behind that background?


Ted Greene: Thank you for having me. Thank you for the opportunity and to your listeners. And thank you for tuning in to both of us. So, in college, yes, yellow Pacific, there were a couple of Merrill Lynch investment advisors that came and presented to my college class and I was aching to do an internship. And so, I did. And that turned into 24 years of being an investment advisor for Maryland at UBS and was the Chief Compliance Officer in there for a while for an IRA. So, I have a little bit of scar tissue, I have a lot of familiarity with the industry. The good news is there are fantastic people that pack the halls of the walls of the firms on Wall Street, and but I’m glad to be with Spartan Investment in group as the Manager for Investor Relations and enjoy working with interesting, smart, educated, passive investors that are looking for a little diversity. 


Pancham Gupta: That’s great. So, at your career at Merrill, were you actually the investment advisor who was advising people? Or did you have that role at some point? 


Ted Greene: Yeah, I was a financial advisor beginning in 1993.  In I think it was 1999, I attained the Discretionary Portfolio Manager status. And that carried across to UBS financial services where I was a first Vice President and Discretionary Portfolio Manager and the registered investment advisor that I was a compliance officer for I was a producing compliance officer in charge of due diligence for private investments, such as, you know, Spartan investment Group or other syndicators that were looking to raise funds from our client base. So yeah, I’ve worn the hat I’ve seen behind the wall. It’s a fascinating industry, both public and private investments. I think people are a little less familiar with the private investment. You know, everybody understands, you know, buying a few shares of their favorite stock buying a few units of their favorite private investment, it’s a little different. But there’s a lot of similarities between the two.


Pancham Gupta: I’m actually very curious that you now mentioned this, that you’ve been part of their discretionary portfolio. And then now you move on to this. Before you were validating or evaluating all these companies like Spartan Investment Group, now you work for one, and what is your, you know, experience and learnings? What have you from managing a portfolio of, let’s say, paper products to managing private investments? And what advice or suggestions you have for an investor who’s actually listening to the show? And is a passive investor? Like how can you think about his private portfolio?


Ted Greene: I think the biggest lesson that I learned in 24 years on Wall Street, is to not look in the rearview mirror. and extrapolate that going forward with the assumption, this is how it always is. There are rules to investing that are being bent right now a little bit by way of the fed by way of pushing assets into the bond market and those assets spilling into other asset classes. So, it’s not just the stock market that is elevated, placing assets, and having a darn good reason to place assets in any category. Now, you really want to, you want to have a well-diversified portfolio, you want to understand what your downside risk is. And you do not want to just assume that because the last 10 years, the Fed has been supporting the markets, don’t just assume that’s going to continue, because I’ve got a lot of scar tissue from the 90s, turning into the early 2000s and the dot com. bust and boy, get shivers just thinking about it, but okay. So back to the point, what’s one observation, one key observation is don’t look in the rearview mirror and extrapolate his choice, it will always continue this way. Because it won’t.


Pancham Gupta: Got it and people who are thinking about their private investments now building their private portfolio of investments, like, you know, investing in, let’s say, one of your company’s deals like, you know, self-storage facility or an RV park. And people if you have not listened to the show, this is Ted from Spartan. and we have had Ryan Gibson, who is the CIO and also Scott Lewis, who’s the CEO of the company at different shows, Scott talked about RV parks and Ryan Gibson talked about self-storage. So, if you have not listened to those shows, I will highly encourage you to go back and tune in, check out those shows. And so yeah, going back to the question, Ted, what would you say to a budding investor who is, let’s say, 35, to 40 years of age, has been investing in stock market, now found out about private investments and has been building their portfolio? How should they think about private investments or layer that up?


Ted Greene: Yeah, so the reward we seek is always commensurate with the risk we’re willing to take. And to reduce our risk, we diversify. And I’ve been telling investors that since the early 90s, over the last couple of years, maybe even for the last decade, we’ve all to a degree, lost track a little bit of the notion of taking your age, put a percent sign behind it. And that’s the percentage of your investment base that you should have in a bond portfolio. But you know, investors think, wait a minute, you know, if I go buy bonds for five years, what am I getting? You know, you can hardly get one and a half percent. So how do you handle that? What do you do with that? How do you build a bond ladder, which, by the way, building a bond ladder, and putting this out there early, because I want to hover on this throughout our talk today. But the lowest risk method of building a bond portfolio is to buy individual bonds with controlled maturity. So, if you have, let’s say, a half million dollars, you put $50,000 into either a bond or a portfolio, a mixture of bonds that mature with one year maturity, you do the same for years two through 10. So, you have a bond ladder, synonymous with the rungs on the ladder. So now, you can’t really go do that. I mean, you could, but you’d be getting about 1%. So, the bond surrogate or a replacement for a bond is something that I talk about with our investors frequently. We’re not registered advisors. We don’t give investment advice, but there’s some synergies to talking with investors. they’d become your friends, they hit your holiday card list and you know, they become your peer group. So just because we’re not licensed and we don’t give tax or legal advice, either, but you know, these conversations come up frequently all the time. And after a while, investors just trust you. And, you know, our hands are in. So anyway, the notion of how do you go about building out the one surrogate, that conversation comes up a lot. And so, whether it’s industrial, multifamily, retail, which, you know, retail is kind of slipping a little bit, maybe, maybe storage, and RV parks is catching some traction from that sector, but making what I would say, are relatively small bets. And by that, I mean, it doesn’t matter what the guy down the hall, or the gal down the hall is doing for position size, when they invest in multifamily where people love to talk big numbers, when it comes to building out a portfolio, have a collection of vetted, reasonably well thought out, like well thought out strategic investments and invest the smallest amount that that sponsor will take, unless you’re worth five or $10 million. Don’t let your ego get in front of you, you know, put 50,000 on the table. But keep track of when those maturities are due to come up. So that you’ve got for us, you know, we’ve got five year life cycles on most of our assets. So, if you’ve got a quarter million dollars from some options, that vested in you’ve liquidated, don’t put it all in one deal, do $50,000 increments, do various industries, find a handful of sponsors. So that’s a fancy $20 word when a deal sponsor or a syndicator, we build storage and RV parks, but find a handful of sponsors that you know, like and trust that you can put $50,000 in and keep track of what your maturities are, so that each year, you’ve got some money coming due. And that’s a well-built bond surrogate portfolio. Think about this and really put like, try to envision yourself in this situation, the late 90s. When everything’s going great, turn into the early 2000s, or 2005, six and seven, when everything’s going great turns into 2009, 10 and 11. When you know there’s blood in the streets. So, if you’ve done your homework early on, you’ve made small incremental deaths, you’ve built out that surrogate bond portfolio where a laddered staggered maturity of private investments, you’ve got maturities coming do, you know, a $50,000 investment, it matures. But it also pays off with a 40% capital gain, you’ve been picking up the 7% preferred. If you slow down, listen to some advisors go really slow and really think through Okay, well, how can this go bad? How can I mitigate things going bad? You know, who’s in charge of the syndication? Who’s the backup guy to take charge or gal to take charge? If you know, guy number one or two, or both? You know, get into trouble on an airplane accident or what have you. I’m just I’m thinking just disaster scenario, this thing so that whatever happens, you’re okay. But know, this, what we see in the background for the last 10 years, it won’t continue. I don’t know what it’s going to look like in 10 years going forward. But it’s not going to be the mirror same scenario going forward. So, the stock market at some point is going to have trouble, interest rates are going to do something different than just said, basically zero. So, and this is a great opportunity to think through and plan for that. I really went down the trail on that one, but


Pancham Gupta: No makes sense. I 100% agree with you. And the way stock market is going right now. There seems to be no looking back and it’s up and then every single day, we hit a new high. And that Fed has to play a big part in that. You know, what’s happening in this queued fundamentals that’s happening for a very long time. But no, I definitely agree with you on what you’ve said. So, going back to now, let’s switch gears and talk about your self-storage one of these deals. Let’s take an example of a deal that you recently closed. I know you do self-storage facilities with the value add development component, right, where you have a land there where you can develop more units and overall increase the NOI. So, tell us more about that. And how do you evaluate a deal like that? And you know if we can take an example that would be great.


Ted Greene: Sure. So, because Burton does do some 506 B offerings and 506 B offerings are available to non-accredited investors.


Pancham Gupta: So, 506 B is just a legal term for SEC thing B means buddy, you need to have a preexisting relationship. So, you cannot raise money from people who you don’t know. So that’s what 506 B, go ahead, sorry, I cut you off. 


Ted Greene: No, the danger in a conversation like this is acronyms start to fly around. And then the person that really needs to understand gets left behind. So, thank you for the catch. It’s very appropriate. Yeah. So, I can’t refer to those legally. I can’t speak to those. And recently, we’ve done some of those. So, let me address the question from the in general. 


Pancham Gupta : All right, yeah, let’s do that.


Ted Greene: Yeah. So, our method, we’re a small market player $50 million purchase price or less. Ideally, there’s going to be available land that comes in the transaction, where we can build more storage.  It takes about 18 months to get the permit, it takes about a year to build the storage, it takes another year, year, and a half to get that thing ironed out leased up. So, you’re collecting those rents. But what you’re doing there is you’re increasing the net operating income. And this is key whether or not Spartan enters anybody’s life that is listening to this podcast, here’s one key piece of information. And if you take one thing from today, this is it. The way you calculate in storage, the storage in general, the way you calculate the market value, or the increased value for a property is that delta that net operating income delta, divide that by a conservative cap rate, and a conservative cap rate is a higher cap rate. The numerator is the increase in NOI, the denominator is let’s go with point 08, or an eight cap. If we wanted to be aggressive, we put it down where things really are five and a half, five and a quarter, we passed on a I think it was a $35 million opportunity about four months ago, and it was in the high fours, let’s just call it eight for to be conservative, but NOI divided by your eight cap. and that’s the increase to the value of the asset. So, if you can, if you buy a $5 million, or $10  dollar storage facility, if you can increase by 30%, let’s say the available storage at that location, that’s a real mover on price. So same pricing assumptions, we’re probably going to increase that property by a value of 40%. Okay, now let’s, let’s think a minute, what did we talk about a few minutes ago, the notion of don’t just look at the stock market in the rearview mirror and just assume that’s going to continue for the next 10 years. But at the same time, we also put the idea out there, you can take your age, put a percent sign behind it. That’s the age old rule of thumb, that’s what you should have in bonds, or bond surrogates. So, we can’t buy it doesn’t make sense right now to buy a five year bond, does it make sense to buy or invest in a five year syndicated deal, or deals plural from a handful of syndicators, a handful of people that you’ve come to know, like and trust, maybe one of your friends has done business? You ask them, you know, what have you done? So piggyback from some of those relationships. But anyway, the point is, if you’re buying something where there’s a 35, or 40% increase to that property value, and you’re picking up a 7% preferred rate of return or an 8%, preferred rate of return, and pinch him, I know, you want to stop and say, let’s define the pref. So why don’t you take the pref? And then I’ll take the mic back?


Pancham Gupta: Sure. The profit rate is basically something that the investors make, before general partners make any money, people were running the deal. And if for some reason, the pref is not met during the lifecycle of the deal, it gets accrued in the following year, and then the following year until it’s -told-.


Ted Greene: Beautiful. So, for investors who don’t yet have a bond portfolio or a bond surrogate portfolio, you know, we’re talking about there’s two pieces here, we’ve got the potential for a 40% capital gain at the end of the deal and that applies for Spartan, you know, that applies in multifamily that applies to industrial to read the, you know, all the way great, everything’s going to have that component of potential for a game supported by increasing cash flow. We manufacture that by hopefully buying a property where we can build, you know, maybe 20 or 30% additional square footage compared to the original. Let’s say we had one of our recent transactions, 100,000, 103,000 square feet, and we’ve got the horsepower to put in About 30,000 additional square feet. So, so anyway, the pref gets paid, the investor gets that first.  Annualized roughly 7%,. Seven to 8%. for us, it’s going to be similar to other deal sponsors, usually that ramps up a little less than 7% in year one, and we plan for that. And then it’s we load things a little bit heavier in years two through five, because we want to get paid part of the operating profits that are earned while the project is ongoing. So once the capital account is set at $100,000, and we got plenty of reserves for the project, if there’s more rental income coming in Spartan gets that and in all syndicators are looking to do that same thing. That’s nothing. There’s no secret sauce for Spark, but back to your point in the pref coming in, and there’s a capital gain. So, if interest rates rise, and here, we’re getting to the point now, if interest rates start to rise, and I don’t hear what I’m not saying, I’m not saying rates are going to rise in the next year or two, but if they do, if we have inflation, and rates start to rise, you know, bonds are pegged interest rates, and those bonds will come down in value as rates rise. There’s that inverse relationship. So, if you look at a bond portfolio right now, of individual municipal bonds, you’re going to have a lot of 110 and 115. What does that really mean? That means that bond is priced at $1,100, or $1,150, because it was issued in the past with a coupon of let’s say, four, interest rates came down. Now that bond is trading up. And here’s the point, if the yield to maturity on that bond, yield that’s closer to one, it’s going to lose value as it comes due at $1,000. So, you’re, you’ve got a good look and coupon on that statement. And usually, the coupon is the furthest number to the right on that monthly statement you’re thinking for love it, maybe it’s a tax free money that was 20 years, when you bought it That thing is going to crater in value. So, if it’s priced at 115, it’s valued at 1150. But it’s gonna pay off in 1000. Yep, you’re gonna lose some money. The point is, with private investments that have that are paying a pref and are building additional net operating income that’s going to support that thing, no matter what happens, and you know, I, I looked at the stock market before we got on, today’s the sixth, crazy things are happening in Washington DC right now we’ve got someone was shot in


Pancham Gupta: the sixth of January, just finally today,


Ted Greene: In the capital is it this is a volatile time. So anyway, the point is, no matter what is happening in the world, if your private investments are intending to throw off additional more and more cash that supports the value, you may have a rise in interest rates, but that increasing cash flow supports the value if the investor has done their homework, and they’ve spread out their maturities and those investments are maturing every four or five years and continuing to pay off and pay you your invested capital back. Plus, a gain, plus the bonus, depreciation which offset the passive income that you receive. You know, things could be a lot worse than having a portfolio of boring, sleepy storage, industrial multifamily. They all make sense. They all make sense, in my opinion.


Pancham Gupta: 100% agree with you. And that’s exactly I think your way of explaining this is pretty cool bond portfolio. I come from FinTech Wall myself. And, you know, so I actually really like your analogy on how you are comparing it to a bond ladder. So that’s, that’s cool. That’s very good. So cool. Thank you for all that Ted. And now let’s move on. I have two questions that I want to ask you. They are totally not related to anything we have discussed so far. There are a different.  Number one question I have is because of COVID-19, have you guys change your strategy, or it’s stayed the same before the COVID hit?


Ted Greene: We have not changed our strategy. I would like to think that there was some intentionality to that by way of Scott, Scott Lewis, and Ryan Gibson.  Scott’s a retired army captain who had a command in combat and is accustomed to thinking disaster scenario and how do we manage those situations? And it’s just it’s fortuitous that that Ryan and Scott have thought ahead and decided the sandbox we’re gonna play in is, has been thus far, carefully selected words there. It has been thus far proven to be recession resistant. There is no asset class that’s bulletproof. There’s no asset class that’s bulletproof, but it’s seemingly recession resistant. So far, because of Scott and Ryan’s thinking ahead, we  really haven’t been affected, now knock on some wood or you know, something -funny- just because you never know what’s coming around the corner. But so far so good from that perspective.


Pancham Gupta: That’s great. Cool. Nice second question for you, our last question, actually, before we move on to the second part of the show is, do you have a morning routine that you follow? If so, what is it? And does it contribute to your success?


Ted Greene: You know, that’s really interesting. Yes, I do. And I learned this may be 20 years ago that I’m showing my age. I’m in my early 50s, by the way, I learned years ago, decades ago, late in the day, look over your day and clean things up in the morning. For me, I want to triage things from three perspectives. What are my boulders? What are my rocks and What’s my sand? So, in the boulders, the analogy is a backpack and it’s funny you this is a surprise question and you caught me off guard but yeah, you know, so the big thing the boulders that those are the things that have to get done that day and so first things first.  In the morning, I look at my day What do I have to get done? The rocks, what’s important to get done but it’s not critical. And then the sand is you know the things that fill in you get the point? Yeah, boulders are mission critical. My days ruined if I don’t get this done. Rocks and sand in the morning for me mentally, I’m the sharpest you know, I can grind out the exercise at the end of the day, but mentally triage my day. That’s what I’m trying to say. Sorry. Really go on long. 


Pancham Gupta: Yeah, no, thank you. Thank you for sharing that. So, we’ll be back after this message. Do you ever feel overwhelmed by the thought that you have no time after work, and family time to learn about investing? Do you feel left behind that you are not putting your money to work for you? Do you want to create passive income, but you do not know where to start? If so, I have good news for you. I have created an investor club which I call The Gold Collar Investor Club for accredited investors. I will be putting together investing opportunities exclusively for this group. These are the opportunities where I have done my part of the due diligence for you and will be investing my own money alongside you. If you are interested, please sign up on I repeat,  I will reach out to schedule a 30 minute phone conversation to discuss your investing goals. Once you sign up, this can be a good opportunity to diversify and take some chips off the hands of Wall Street to produce some cash flow. And in case you are wondering, what is an accredited investor, accredited investor is someone who has earned more than 200,000 as filing single, or more than 300,000 filing jointly for the last two years. Another way to qualify as an accredited investor is if your total net worth is more than $1 million, excluding your personal home. It includes your stocks, 401, K’s, IRAs, cars, etc. Just not the equity in your personal home. If this is you, I would highly encourage you to sign up. So, Ted, let’s move on to the second section of the show which I call taking the leap round.  I ask these four questions to every guest on my show my first question for you as when was the first time you invested outside of Wall Street?


Ted Greene: For me that was 2008 which as your listeners are probably starting to piece together. That’s the real conviction that comes from don’t just assume that what you’ve seen in the past is going to continue in the future. 2008 was an inflection point in our country’s economy. The Great Recession, as it has been referred to, and that was four years of, of brutality. And in 2008, I got involved with a group that was trying to start a cogeneration power plant and the more money I had sunk into that project, the more I realized how serious it was. And after my dear wife and I passed a million dollars invested and we knew this thing was still in need of a lot of attention, time, and money. You know, it got really serious, which I think a lesson to draw from that is let somebody else build the scar tissue and learn all the tough lessons when investing, just piecing this together on the fly. But there’s a lot of legitimacy to being an owner of single family homes that are being rented out. There’s a lot of legitimacy to that, and I’m not downplaying that at all, but at some point, you hit your maximum ability to maintain some balance to interact with your tenants to care for your assets to visit with your spouse or your partner, to engage with your kids to get some exercise that you know. So, at some point, because we don’t all have the time to go learn all the lessons about running a cogeneration power plant, while doing other things, there’s merit to putting that burden and that responsibility on a syndicator by giving them a piece, maybe in 3% positions of your net worth, if you’re worth $4 million, you know, invest in three to 5%, increments, and ladder those things out, as we’ve mentioned. Anyway, back to the question was 2008. It bit me in the backside pretty hard, lost some money. You know, my dear wife is still with me. We went to high school together, we’ve got two kids together, and, and there’s life after a failed business venture. It’s alright. 


Pancham Gupta: You know, I actually this might be my answer to my third question as well, which I can ask before I go to the second question, which is, is this the one investment would you say that did not go as expected for you? Yeah,


Ted Greene: Yeah, that’s correct. Yeah. 


Pancham Gupta: Okay. Yeah. No, I, I what I will say is that these are the things that you do and then you learn these are real world seminars. So, I totally feel that, and it just makes you stronger. Okay, so my second question, what fears did you have to overcome before you actually started, or even thought of investing in this this project?


Ted Greene: You know, I’m one of those that I think I can do anything.  Learning a new industry while being a Discretionary Portfolio Manager on Wall Street, that I knew it would take a lot of time and attention and energy. But I figured you know what, I got a job at Merrill Lynch out of college, managing retirees life savings. If I can do that, I can learn how to run a log through a chip or make a wood chip, run that through a turban, make steam and turn it you know, which of those two is hard, how hard can it be,? I didn’t really think through if we have a major recession, and nobody’s building homes, you can’t get a log. Back to the question. I didn’t really weigh how serious at the amount of time and attention that would take to pull this hat trick off. I guess one way to say that is in my youth, I was fearless. I’m fearful now. a healthy dose of optimism. But yeah, when things go wrong, they can go really wrong in the business world.


Pancham Gupta: Right, thank you for sharing that. My last question for you is, what is one piece of advice would you give to people who are thinking of investing in main street that is outside of Wall Street?


Ted Greene: Yeah, you know, don’t be hesitant to ask questions about the legality of the offering. And here’s what that really means is pension, as you mentioned, the 506 B versus the 506. C, there are state and federal regulatory filings. And here’s an interesting term people will hear exempt it’s, it’s a 506 B exemption. Here’s what that means. It is exempt from the filing requirements of a publicly traded security. But with a 506 B or a four a 506. C, both of those are exemptions under regulation D, they’re still filings, the syndicator still has to do that. Here’s an interesting, I’m off in the weeds. Give me just another minute Pancham. This is, here’s the definition of a private investment. For the series seven exam in the series 65 exam, both of which I take the example is consider investment in a cow and you hoped to profit from the sale of the milk of the cow. That’s the example that the state and the federal regulators put out there for everybody to know. So, if anything you do over and above a riskless rate of return in the stock market. If it’s a business venture, such as you and your buddy, you’re going to go buy a home, fix it up and flip it legally, that is supposed to they’re supposed to be a notice filing with the state and the SEC, within which the investors live. So, if somebody in Wisconsin, someone’s in New York, you’re supposed to do the blue sky filings in both. So anyway, back to your question. Don’t be afraid to ask questions about the legality and the permissibility of the investment and kick the tires, ask a friend who they’ve invested successfully with, piggyback on some of those natural relationships that you have where maybe it’s your parents or your parents friend, they’ve spent 10 years getting to know a syndicator, that syndicator is your first stop. That’s where you need to go first. So, ask for referrals and kick the tires and it’s your money. Don’t be afraid to ask tough questions.


Pancham Gupta: Exactly. 


Ted Greene: I get excited about this kind of stuff pensions. Sorry for going on.


Pancham Gupta: No. Absolutely, that’s a great point. and you know, in summary, what you’re saying is that make sure you understand the people you’re investing with, and also the offering that you have understand the legalities. And don’t be afraid to ask tough questions. 


Ted Greene: It doesn’t make sense. Like, is it intuitive? Does it make sense? 


Pancham Gupta: Absolutely. Right. Yeah. Right. Well, thank you, dad. It’s been great. how can listeners connect with you if they want to reach out and find out more about you or the company? 


Ted Greene: So, my last name is Greene. I have an E on the end of green. I’m on LinkedIn and my first name is Ted T E D. So, you can find Spartan-Investments  on the internet. You can find Ted Greene on LinkedIn. We’ve got a YouTube page and it is packed with bonus depreciation. And what do you do with your K one? And how do we do a cost segregation study? And ah, so anyway, you can find us on YouTube, you can find us on the internet. Yeah.


Pancham Gupta: Great. Thank you, dad for your time today. It’s been great.


Ted Greene: Thank you, sir. It’s been a real pleasure. And thanks for letting me run on and on and on. Like, like an old man.


Pancham Gupta: No, you did great. And I loved your bond example and all the things that you shared and also you’re in a boulders, roads and rocks and sand analogy on your day. That was all good. Thank you so much for your time.


Ted Greene: My pleasure. Thank you.


Pancham Gupta: I hope you got some value from what Ted was explaining regarding bond ladder, how you can replicate that in using the same methodology but using the private investment space and do come out much, much more positive. I hope you got some value from it. If you have questions do not hesitate to email me at p as in That’s p as in Paul  This is Pancham signing off. Until next time, take care.


Thank you for listening to The Gold Collar Investor Podcast. If you love what you’ve heard and you want more of Pancham Gupta, visit us at and follow us on Facebook at The Gold Collar Investor. The information on this podcast are opinions. As always, please consult your own financial team before investing.

Copy of EP #18 - 2 Guests

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