The Generations of Wealth

Mastering Passive Wealth: How to Invest Like Institutions with Pascal Wagner


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πŸ“Œ Overview

Derek and Pascal explore the world of passive investing, due diligence, long-term wealth strategy, and how everyday investors can model the same approach that major institutions use. Pascal explains how he vetted deals across 23+ investments, the role of understanding inevitabilities, and how his unique experience in venture capital shaped his investment philosophy. They also dive into macro trends affecting real estate, from industrial growth and medical facilities to low-income housing and why Airbnb might be a dangerous play.

Key Takeaways
  • Investing without a thesis is gambling β€” you must know why a deal will win over the long term.

  • Fear holds people back β€” especially when managing family money; process and due diligence remove that fear.

  • Venture capital is extremely high-risk β€” 9/10 investments fail and 80% of funds don't return capital.

  • Think in 10-year inevitabilities β€” crypto adoption, automation, robotaxis, AI, decentralization.

  • Institutional-style investing is accessible now thanks to democratized platforms.

  • Real estate plays Pascal is bullish on: industrial, triple-net, medical/assisted living, mobile home parks, and low-income housing.

  • Most investors lose by buying at the topβ€”don't follow the herd.

  • Your best investments will be the ones people told you were stupid.

Relevant Topics Discussed
  • How institutional investors perform due diligence

  • Comparing stocks, VC, and real estate risk profiles

  • Democratization of passive investing platforms

  • How to build a diversified cash-flowing portfolio

  • Long-term economic inevitabilities

  • The "silver tsunami" and aging population trends

  • Why Airbnb and multifamily may be in trouble

  • Building an investment thesis with confidence

  • Mistakes that cause investors to lose money

Why Should You Listen?

If you want to understand how wealthy families and major institutions build generational wealth, this episode gives you the roadmap. Pascal breaks down investing in a way that is simple, relatable, and actionable. Whether you're just getting started or already investing six figures, this conversation helps you think bigger, avoid common traps, and make smarter decisions with your money.

Time Stamps

00:00 – Welcome & Guest Introduction 01:05 – Pascal's background: Germany β†’ Florida β†’ Colorado 02:00 – Selling his startup & joining Techstars VC fund 03:30 – Managing his mother's inheritance after his father passed 05:15 – Learning institutional due diligence 07:10 – Differences between stocks, VC, and real estate 09:20 – Vetting operators vs. vetting your own deals 11:00 – Investing based on 10-year inevitabilities 13:40 – Venture capital explained for real estate investors 16:00 – High-risk, high-reward dynamics of VC 18:15 – Democratizing passive investing platforms 20:00 – How to start investing like Pascal (step-by-step) 22:15 – Derek & Pascal on mentorship and avoiding mistakes 23:40 – Outlook for 2026 and beyond 26:10 – Big-picture trends: crypto, AI, EVs 28:05 – Real estate areas Pascal is bullish on 30:20 – The #1 mistake investors make 32:30 – Final thoughts, resources, and sign-off

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