Investing For Compounding Wealth, with Sean Tepper

Episode 33:

Episode Topic:

In this episode of Not Just A Transaction, host Nick Prefontaine speaks with Sean Tepper, Founder & CEO of SaaS platform TYKR about how investing can help you make up for time that you were not saving or investing. Sean also discusses why it’s important to invest in both properties and stocks.

Glossary of Special Terms Used in this Episode:

  • Angel investing: an investor with a high net worth that invests in a small business or startup in exchange for ownership equity in the business
  • Public market: a company that sells shares to the open population
  • Individual stocks: partial ownership in a company
  • Compounding wealth: increased value due to interest earned on both the principal and interest

What you’ll learn about in this episode:

  • Why real estate investors should invest in both property and stocks
  • How individual stocks can help someone who has little money saved make up for lost time
  • The one thing that an average person can do now to learn about investing
  • What is a good entry point for beginning investors
  • Why Sean believes schools should teach students about second streams of income
  • The types of investments that see quicker returns

Resources:

Additional Resources:

Sean Tepper’s Bio:

Sean’s backstory on TYKR has a not-so-glamorous humble beginning. He worked intensely as an angel investor without much success for five years (2011-2016). In 2016, he took a step back and decided to read as many boring investment books as he could, to create an algorithm that would help generate higher returns in the public market. In one year, he achieved a 15% return compared to the market average of 6%, if not lower. He then went on to refine the algorithm and achieve returns ranging from 15% to 50%.

In the summer of 2019, he had an “ah ha” moment. He back tested TYKR through the 2008 recession and here are those surprising results:

  • In 2008 the S&P 500 dropped by 38%, if you would have used TYKR in 2008 you could have been up 19%
  • In 2009 the S&P 500 went up by 23%, if you would have used TYKR in 2009 you could have been up 72%
  • In 2010 the S&P 500 went up by 12%, if you would have used TYKR in 2010 you could have been up 96%

He then went on to backtest TYKR every year from 1999-2019, and TYKR has proven to beat the market every year. That is the moment Sean decided he couldn’t keep this algorithm himself and created a platform to share it with others.

Nick’s Bio:

In 2003, Nick Prefontaine was in a snowboarding accident that left him in a coma for over 3 weeks. The doctors told his parents that he probably wouldn’t walk, talk, or eat on his own again. Less than 3 months later, he was running out of Franciscan Children’s hospital. Now Nick speaks to groups that benefit from his message of overcoming adversity.

Nick grew up in the real estate industry and got started at an early age. Most notably, he was knocking on Pre-Foreclosure doors at 16, doing up to 50 doors a day. This experience helped shape Nick’s real estate career. When someone opens the door you better have something compelling to say.

Now, Nick specializes in working with lease purchase buyers to get them into a home and on the path to home ownership. That includes working with them throughout the entire deal which ends in them being able to get their own loan. Getting buyers to the finish line is something Nick and the entire Pre Property Solutions team take pride in. That is something that separates them from their competition. Regardless of a buyer’s credit situation, he looks at their complete financial picture and comes up with a plan to get them into a home.

Zachary’s Bio:

Zachary is an Amazon Best-Selling Author of The New Rules of Real Estate Investing and revised edition of Real Estate On Your Terms. He has been an authority in real estate for 7 years now and has personally completed hundreds of real estate transactions and has mentored investors to complete thousands of transactions.

At the age of 25, Zachary decided to leave the world of bartending and personally training and jump into the family business. Now he is an equal partner and runs the acquisitions department, focusing on helping sellers accomplish their goal of selling their property.

If Zachary is not working, you will find enjoying the outdoors or spending time with his wife Kayla and two kids Remi and Bellamy. His passion for family and business is what keeps him motivated and excited to take on each day.