There seems to be minimal downside to having a small exposure to Gold and Silver. While we are not advocates of Gold and Silver as investments, we do think they can be used as an insurance vehicle. As you accumulate more excess capital, deploying some as a hedge against a Black Swan event becomes more logical.

The Fees Charged, as a Percentage of Total Return are Much Higher than Appear at First Glance. In a typical deal, the Private Equity company can keep 25% or more of the total profits without having to put up a dollar of their own capital. They’re smart people and they know how to structure deals to their advantage. That’s why they’re so rich.

Investing in RE projects with even moderate leverage can add risk that many investors don’t take into account. We know several very experienced, wealthy RE investors who experienced unnecessary pain and duress when their loans came due at inopportune times. Stress that was avoidable if they weren’t trying to maximize their yield.