“A wise person learns from their own mistakes, but a genius learns from the mistakes of others.”

The most powerful thing you can do as a passive investor has nothing to do with IRR.

It has nothing to do with cap rates.

And it definitely has nothing to do with chasing the shiniest deal on the internet.

I’ve learned this the hard way, and I’ve seen it play out over and over again with successful investors.

If you’re a passive investor and you’re not actively talking to other passive investors, you’re leaving one of your biggest advantages on the table.

Let’s break this down.

1. Deals Don’t Matter If You Don’t Trust the Operator

Here’s the reality most people don’t want to admit.

Everyone in finance is selling something.

Myself included.

If I’m bringing you a deal, I believe in it.

Other operators believe in their deals too.

But how do you actually know if a deal is good?

If you’ve never invested with that operator before, you don’t have any real data.

You’re relying on pitch decks, projections, and promises.

And while referrals help, they’re often biased.

Operators will naturally send you their biggest fans.

Sometimes that’s family.

Sometimes it’s people who have a financial incentive to say nice things.

The real gold is third-party validation.

Someone who has no dog in the fight.

Someone who isn’t getting paid if you invest.

When another passive investor says,

“I’ve worked with this group for ten years, they’re phenomenal, and I’d invest with them again

tomorrow,”

that carries weight.

And the opposite matters just as much.

When someone tells you,
“I would never invest with those guys again,”
that insight can save you years of frustration and six figures of capital.

This is exactly why we created the Wealth Forum.

We get 20–30 high-net-worth investors in a room, in person, a few times a year.

We share deal flow.

We share what worked.

And just as importantly, we share what didn’t.

That kind of transparency is rare, and it’s incredibly valuable.

2. Passive Investing Is a Relationship Business

A lot of people think passive investing is about finding the “best deal.”

In reality, it’s about finding the best people.

Most private investments don’t advertise.

They’re not running Facebook ads.

They’re not blasting commercials like Wall Street firms do.

There are legal reasons for that.

And because of that, deal flow is largely private and relationship-driven.

I know one very successful passive investor who does this full time.

All he does is invest passively.

And he spends 20 to 30 hours every single week on calls with other investors.

Not operators.

Other investors.

He’s asking questions.

He’s comparing notes.

He’s learning who’s solid and who’s not.

That’s his edge.

Formerly, I was a registered investment advisor.

I’ve seen how Wall Street works from the inside.

They spend billions every year on marketing.

Private investing works the opposite way.

It’s quieter.

It’s slower.

And it rewards people who build real relationships.

This is why local meetups can be helpful.

If you live in a mid-sized or large city, there are investors meeting regularly.

Now, meetups can be hit or miss.

There are usually a lot of new people.

A lot of tire-kickers.

And not always a lot of high-net-worth investors.

That’s where national conferences and curated masterminds really shine.

You get into rooms with people who are actively deploying capital.

People who are serious.

People who want to talk about what’s actually happening behind the scenes.

That’s where the learning curve compresses.

3. Your Network Gives You Do-Overs You’ll Never Get Alone

Most of us can point to at least one investment we wish we could redo.

A deal we shouldn’t have joined.

An operator we trusted too quickly.

A structure we didn’t fully understand.

The problem is, real life doesn’t offer many do-overs.

What it does offer is learning.

And the fastest way to learn is through other people’s experiences.

When I talk to investors, I don’t just ask about wins.

Wins are easy to talk about.

I ask,
“What didn’t work?”

“What would you do differently?”

Those answers are priceless.

There’s a quote I love:
“A wise person learns from their own mistakes, but a genius learns from the mistakes of others.”

That’s what a strong network gives you.

It gives you people you can call and say,
“Hey, I’m looking at this deal.”

“Have you seen something like this before?”

“Would you do this again?”

It gives you perspective.

It gives you protection.

And it gives you confidence to move forward when the opportunity is right.

That’s my hope for you.

That you invest not just in deals, but in yourself.

That you surround yourself with people who will tell you the truth, not just what you want to hear.

If you haven’t joined our investment club yet, you can check it out below.

If you’re interested in the Wealth Forum, email our team at [email protected].

And I’ll see you in the next video.

Before you go, make sure to check out our special report about inflation investing.
It breaks down where capital tends to flow when inflation sticks around longer than expected.

If you’re interested in investing with us, join our investment club and we’ll be in touch.

And don’t forget to check out my bestselling book on Amazon.

Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.