Are you curious about how you really earn from alternative investments? In this episode, you’ll learn all about the waterfall feature, the structure that tells you who gets paid, when, and how in private deals like real estate funds and other non-traditional investments. 

From getting your original investment back, to earning your preferred return, and then splitting profits with the sponsor, understanding these layers is important to spotting good deals and protecting your interests. Plus, you’ll hear questions to ask sponsors and learn how to spot hidden fees and potential conflicts of interest.

If you’ve ever puzzled over terms like "preferred return," "catch up," or "carried interest," this episode is for you!

Key takeaways:

• Understanding Waterfall Structures: Learn how profits flow from return of capital, to preferred return, through catch up, and finally carried interest.
• Evaluating Sponsor Alignment: Learn which layers sponsors often don’t reach, how fees can eat into returns, and what information to request to help you make your assessment.
• US vs. European Models: Discover why the American “by deal” and European “whole fund” approaches matter..
• Fees, Transfers, and Market Rates: Recognize common issues like sponsors moving assets between their own funds or layering on avoidable fees.

Ready to learn how alternative investments really pay out? Listen to the latest episode and let’s grow your wealth, unconventionally.

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Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.

In this final part of a two-part episode, we continue our discussion about the ins and outs of building Accessory Dwelling Units (ADUs) which are becoming increasingly popular in backyards as extra living space for extended family, overnight guests, or as a way to generate rental income. 

Tom Mulhern, co-founder of AzADU, joins us to break down the real numbers behind building an ADU, explore financing options, and common surprises that pop up during construction. With rising home prices and changing family needs, ADUs are gaining traction as a versatile, value-adding alternative in residential real estate. If you’re curious about expanding your living space, investing in multi-generational housing, or eyeing ADUs for rental income and long-term value, this episode is a can’t-miss.

Three Key Takeaways:

• Financing ADUs Requires Creativity: Most homeowners opt for HELOCs, cash savings, or funds from family home sales; traditional construction loans are less popular due to complexity.
• Expect the Unexpected: Installing an ADU can come with surprises—think abandoned septic tanks or tough utility connections. Working with experienced builders who anticipate surprises is crucial!
• Legal Landscape is Evolving: Recent changes to state laws make it easier to build ADUs, but every lot and municipality has its quirks. Work with local experts to navigate zoning, setbacks, and building codes.

Learn more about AzADU’s floor plans, standard features, and cost breakdowns, or for personal consultation with Tom Mulhern and his team: https://www.az-adu.com/

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  • Website: www.mefinancial.net

Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.

Accessory Dwelling Units (ADUs) are transforming family living as more people are building ADUs to care for parents or make space for grown kids.

 If you’ve wondered about converting a garage, adding a modular unit, or starting fresh from the ground up, then tune into this episode! We discuss the real costs, challenges, and benefits of building an ADU. In this two-part episode, we are joined by expert Tom Mulhern, co-founder of AzADU, to explain the real costs, legislative changes, and why most ADUs are actually built for families and not as rental income. 

Key Takeaways:

• ADUs Are More Than Instagram DIYs:  Reality TV and social media make ADUs look easy, but there are a multitude of complexities including permitting, plumbing, electrical, and zoning. Building an ADU is a significant undertaking that requires understanding local ordinances and construction realities.
• Family First, Rentals Second:  Contrary to media hype, most ADUs are built for multi-generational living, not rental income. Rising costs have families consolidating, using ADUs to keep loved ones close and reduce housing costs, while also freeing up larger homes for sale in the market.
• Cost Factors Go Beyond Size:  Building an ADU is expensive on a per-square-foot basis, but compared to buying a full home in central locations, it can be an affordable alternative. ADU costs are driven mostly by kitchens, bathrooms, and utility connections. Modular and container homes aren’t always cheaper, given site prep, sanitation, and retrofitting requirements. 

Be sure to catch part two of this episode where we’ll talk financing and more strategies for unconventional investing as we dive deeper into the cost breakdown, financing options, and rental income potential for ADUs.

Contact Tom Mulhern at AzADU: https://www.az-adu.com/

Take the quiz - How Alternative Assets Can Fit in Your Portfolio 

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• YouTube: youtube.com/@theunconventionalinvestor 
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• Instagram: instagram.com/michelle.e.moses 
• Website: www.mefinancial.net

Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.

Appreciate what you have and where you are because gratitude is the real wealth. In today’s episode, Michelle gives her perspective on the book The Gratitude Diaries by Janice Kaplan with a focus on the chapter about money. With honest, personal reflections and practical advice, this episode encourages listeners to adopt a more grateful outlook in their financial journeys and highlights how privilege can shape our attitudes about wealth and competition. As you chase your financial goals, remember to be thankful for your journey, your support network, and every break that you were given along the way.

Top 3 Key Takeaways:

• Gratitude Goes Beyond Hard Work: Success isn't just about hustle. Many advantages—family support, legal protections, educational opportunities, even a helping hand—play a role. Taking a moment to recognize these factors keeps us grounded.
• Competition vs. Collaboration: The scarcity mindset isn't helpful. There are enough clients, opportunities, and wealth for everyone. Focusing on collective abundance, rather than competition, changes how we approach business and money.
• Giving Is More Memorable: Studies show acts of generosity stick with us far longer than spending on ourselves. Whether it's gifting, helping others, or offering a deal, these moments create lasting wellbeing.

If you're interested in alternative investment strategies or just want to chat about gratitude, feel free to connect!

Take the quiz - How Alternative Assets Can Fit in Your Portfolio 

Ready for the next step?

• Subscribe to the Podcast: pod.link/1671924778
• Don't forget to leave a review!
• Follow Michelle for more financial tips: 
  • YouTube: youtube.com/@theunconventionalinvestor 
  • Facebook: facebook.com/theunconventionalinvestorpodcast 
  • Instagram: instagram.com/michelle.e.moses 
  • Website: www.mefinancial.net

Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.

Did you know that you can invest in ART and add this alternative asset to your portfolio? Find out how you can own a piece of culture and legacy and diversify your portfolio, all while supporting emerging and established artists. 

In this episode, we explore the unique world of art as an investment vehicle. Clare Baukham, founder of Clear Art Reserve, joins us to explain how fractional ownership lets you hold a piece of world-class art, why art can beat the S&P 500, and how cultural assets can build long-term wealth.

Key takeaways:

• Fractional investing opens big doors: With Clear Art Reserve, investors can own fractions of blue-chip, mid-career, or even emerging artists’ works—without needing millions to get started.
• Art isn’t just for the ultra-wealthy: Whether you’re new to alternative investments or looking to diversify beyond real estate and stocks, fine art can combine cultural appreciation with long-term growth potential.
• ·Expertise matters: Selecting art with true upside requires deep market knowledge and a strong network. Relying on a specialized advisory team (instead of guessing or following trends) can give you an edge and help mitigate risks.

Whether you’re an experienced investor looking for your next strategic move or simply curious, this episode promises valuable insights into a truly alternative and unconventional investment.

Curious about adding art to your portfolio? Check out Clear Art Reserve and explore a new way to build wealth through culture.

• Website: https://www.clear-art-reserve.com/
• Instagram: @clarebaukham / @clearartreserve

Take the quiz - How Alternative Assets Can Fit in Your Portfolio 

Ready for the next step?

• Subscribe to the Podcast: pod.link/1671924778
• Don't forget to leave a review!
• Follow Michelle for more financial tips:
  • YouTube: youtube.com/@theunconventionalinvestor 
  • Facebook: facebook.com/theunconventionalinvestorpodcast 
  • Instagram: instagram.com/michelle.e.moses 
  • Website: www.mefinancial.net

Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.

Learn the habits and mindset of financially comfortable people that set them apart from everyone else. As I've worked with clients over the years, I've had the privilege of working with many "millionaires next door" — the people who aren’t flashy, but are intentional about their spending, saving, and how they view money. 

In this solo episode, I break down the behaviors and beliefs of people who are financially comfortable and what we can learn from them.

Key Takeaways:

• Mindset Matters: The most financially comfortable people have a positive expectation that "it will work out." They approach money and life with optimism instead of perceived powerlessness or a victim mindset. This positive outlook brings positive results.
• Intentional Living, Intentional Spending: It’s not about flashy cars or chasing every trend. Wealthy clients are intentional about their spending and saving habits, funding what matters most to them, and keeping regular saving as a non-negotiable part of their routine.
• Ownership & Long-Term Thinking: They take responsibility for learning about financial tools and avoid the "get rich quick” schemes. Successful investors continually educate themselves, make decisions with their long-term goals in mind, and never vilify those who have achieved financial success.

Whether you're seeking alternative investment strategies or simply want to understand what sets financially confident people apart, this episode offers practical insights and thoughtful stories to help you take control of your financial future. Listen to the full episode, or book a consult to see how we can achieve your financial goals together.

Take the quiz - How Alternative Assets Can Fit in Your Portfolio 

Ready for the next step?

• Subscribe to the Podcast: pod.link/1671924778
• Don't forget to leave a review!
• Follow Michelle for more financial tips: 
  • YouTube: youtube.com/@theunconventionalinvestor 
  • Facebook: facebook.com/theunconventionalinvestorpodcast
  • Instagram: instagram.com/michelle.e.moses 
  • Website: www.mefinancial.net

Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.

Have you thought about becoming a hard money lender for a real estate fix and flip? In this week’s episode, I talked with Mike Bonn from The Cash Flow Company to learn his business model for short-term lending secured by real-estate. This alternative investment strategy puts you in the seat of the lender while keeping things straightforward and secured by real assets.

Key Takeaways:

• Direct Lending, Real Security: Investors’ names are on the loan documents, not a pooled fund. That means direct control and security over your investment—plus, the potential to foreclose or sell the property should things go south.
• Flexible Entry Points: No hefty minimums required! Whether you want to lend $15,000 or $2 million, you can start at a level that fits your goals and risk tolerance.
• Attractive Returns, Simple Structure: Historical returns have ranged from 8.5% to 10%+, typically double what’s available from CDs or money market accounts. And there are no ongoing management fees eating into your profits.

If you’re looking to diversify outside the stock market and want to do it in a way that gives you more control and transparency, this episode is a must-listen.

To read more about The Cash Flow Company - https://thecashflowcompany.com/

Listen to the episode that was mentioned - “How to Use Self-Directed Accounts to Invest in Alts with CNB Custody”

Take the quiz - How Alternative Assets Can Fit in Your Portfolio 

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• Subscribe to the Podcast: pod.link/1671924778
• Don't forget to leave a review!
• Follow Michelle for more financial tips: 
  • YouTube: youtube.com/@theunconventionalinvestor 
  • Facebook: facebook.com/theunconventionalinvestorpodcast
  • Instagram: instagram.com/michelle.e.moses 
  • Website: www.mefinancial.net

Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.

Is industrial real estate a smart place to put your money? In this episode, we explore what today’s market means for investors seeking steady, dependable returns.  

With over 35 years in industrial real estate, Becknell Industrial is bringing its tried-and-true strategy to accredited investors who seek reliable alternatives to stocks and bonds. I sat down with Becknell's CFO, Clay Thelen, to discuss what makes Becknell stand out, explain the rationale behind the new fund, and discuss why long-term, low-leverage industrial real estate might fit into your portfolio.

Top three takeaways:

• Long-Term, Mission-Critical Investments: Becknell specializes in build-to-suit industrial assets—think warehousing, light manufacturing, and distribution facilities for blue-chip tenants like Abbott Laboratories. These are designed, built, managed, and owned in-house, for consistency and commitment.
• Income & Accessibility: The new Becknell Industrial Income Trust offers monthly distributions with a 5% annual yield, an early investor bonus, and a minimum investment of $25,000. As an equity investment (not just debt), you gain ownership in high-quality, income-producing real estate.
• Industry Tailwinds: With e-commerce growth and U.S. manufacturing reshoring, demand for industrial space is surging—even as new supply tightens. This creates a compelling environment for stable, long-term returns.

To read more about Becknell Industrial - https://becknellindustrial.com/

Take the quiz - How Alternative Assets Can Fit in Your Portfolio 

 Ready for the next step?

• Subscribe to the Podcast: pod.link/1671924778
• Don't forget to leave a review!
• Follow Michelle for more financial tips:
  • YouTube: youtube.com/@theunconventionalinvestor 
  • Facebook: facebook.com/theunconventionalinvestorpodcast
  • Instagram: instagram.com/michelle.e.moses 
  • Website: www.mefinancial.net

Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.

Private credit is one of the hottest alternative investments right now, and Yrefy has a truly innovative investment that serves both sides of the transaction - borrowers and investors.

Laine Schoenberger, Chief Investment Officer and Managing Partner at Yrefy, joins me to explain their platform. Yrefy helps borrowers trapped by private student loan debt while offering accredited investors attractive, non-correlated returns. Laine shares the stories behind their clients, explains how their underwriting process works and explains the advantages for investors, including flexible terms and steady, fixed interest rates.

Top three takeaways:

🔹 Real Impact for Borrowers: Yrefy’s program isn’t just about numbers; it’s changing lives. By negotiating down distressed private student loan debt and refinancing at affordable, fixed interest rates (average 3.9%!), borrowers get a custom solution that restores their credit and financial dignity.

🔹 Investor-Friendly Structure: Accredited investors can participate with as little as $50K, picking their preferred term (1-5 years) and enjoying fixed, non-correlated returns up to 10.25%. There’s also a feature that provides flexibility if early liquidity is needed.

🔹 Transparent, Human Approach: Every loan is handled in-house, borrowers are required to prove their seriousness before funding, and Yrefy’s average default rate is low (around 2%).

Private credit that genuinely “does well by doing good” — this is a case study in how investors and borrowers can both win.

To read more about Yrefy - www.yrefy.com

Take the quiz - How Alternative Assets Can Fit in Your Portfolio 

Ready for the next step?

• Subscribe to the Podcast: pod.link/1671924778
• Don't forget to leave a review!
• Follow Michelle for more financial tips:
  • YouTube: youtube.com/@theunconventionalinvestor 
  • Instagram: instagram.com/michelle.e.moses 
  • Website: www.mefinancial.net

Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.

If you’re tired of managing properties or just looking for smarter ways to grow your wealth, this episode is for you. In this solo episode, I discuss 1031 exchange strategies that don't include rolling your investment into the same kind of real estate.

Here are my top 3 takeaways:

•  1031 Exchanges Aren’t One-Size-Fits-All

You don’t have to trade one rental property for another. You have more flexible options, including investing in managed real estate solutions.

• Explore Delaware Statutory Trusts (DSTs)

With DSTs, you can 1031 into professionally managed commercial properties (like hotels or office buildings), so you get “mailbox money” without the headaches of property management.

• Mineral Rights

A little-known 1031 option: oil and gas mineral rights. You can swap your investment property for the rights to land resources and earn ongoing royalties—plus, these assets can be passed down to heirs!

For more detail on 1031s, please listen to the previous episode with Michael Velasco (Ep 82)

Take the quiz - How Alternative Assets Can Fit in Your Portfolio 

Ready for the next step?

• Subscribe to the Podcast: pod.link/1671924778
• Don't forget to leave a review!
• Follow Michelle for more financial tips:
  • YouTube: youtube.com/@theunconventionalinvestor 
  • Instagram: instagram.com/michelle.e.moses 
  • Website: www.mefinancial.net

Disclaimer:

The information discussed in this podcast is for educational and informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, investments, or financial instruments. Private placements and alternative investments are speculative and involve significant risks, including the potential loss of your entire investment. These investments are often illiquid, meaning they may not be easily sold or converted to cash, and investors should be prepared to hold them for an extended period of time. These opportunities are typically suitable only for accredited investors and may not be appropriate for all listeners. Always consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.