High Returns vs. Capital Preservation (What’s Better?) ep. 402

REady2Scale - Real Estate Investing

2024-10-22

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Are you chasing high returns at the expense of protecting your capital? Or is there a smarter way to balance both? In this episode, Jeannette Friedrich, Director of Investor Relations at Blue Lake Capital, shares insights on the delicate balance between pursuing high returns and ensuring capital preservation. Drawing from years of experience and real-world examples, Jeannette provides practical advice for investors on how to grow wealth without taking unnecessary risks. Key Takeaways: -Understanding the Temptation of High Returns: Why high returns come with high risks, and what you need to ask before diving into such investments. -Capital Preservation Defined: The importance of protecting your initial investment and how it plays a key role in building long-term wealth. -Risks of Chasing High Returns: Common mistakes investors make, including ignoring unrealistic expectations and assumptions in underwriting. -Benefits of Capital Preservation: Why conservative, stable investments tend to perform better in uncertain markets and help grow wealth steadily over time. -Balancing High Returns and Capital Preservation: How to diversify your investments to enjoy the best of both worlds—risk-taking for higher rewards and safeguarding wealth through preservation strategies. -The Importance of Due Diligence: Why examining a sponsor’s track record and the investment’s exit strategy is crucial before making any financial commitments. Tune in to learn how to navigate the fine line between risk and reward, and set yourself up for long-term financial success! Are you REady2Scale Your Multifamily Investments? Learn more about growing your wealth, strengthening your portfolio, and scaling to the next level at www.bluelake-capital.com. To reach Ellie & the Blue Lake team, email them at info@bluelake-capital.com or complete our investor form at www.bluelake-capital.com/new-investor-form and they'll connect with you. Timestamps 00:00 Introduction: Returns vs. Capital Preservation 00:29 The Temptation of High Returns 01:25 Understanding Capital Preservation 02:01 Risks of Chasing High Returns 04:33 Balancing High Returns and Capital Preservation 08:46 Conclusion and Investment Tips Credits Producer: Blue Lake Capital Strategist: Syed Mahmood Editor: Emma Walker Opening music: Pomplamoose #investing #capitalpreservation #realestateinvesting Learn more about your ad choices. Visit megaphone.fm/adchoices