Own a Piece of the Internet
If you're still working, your 401K in your IRA probably won't be enough for retirement. I've always believed in diversifying your portfolio. Now, let me ask you a question, how would you like to diversify by owning a piece of the internet? A turnkey 100% hands-off investment into the next generation of superfast internet.
Today’s guest Wally Wright will let us know how you can diversify with great returns by owning a piece of the internet. Mr. Wally is the general manager of spectrum link a high-end high-speed wireless ISP while he boasts a career as a consultant in private equity sectors that spans nearly 40 years.
Wally has generated over $250 million in revenue by investing in a wide variety of industries, including the gold and silver futures market, startup technology companies, fine art, securing private funding for IPO’s, and the Wi-Fi internet broadband industry.
In addition to his investing in business prowess, Wally is an accomplished Ferrari, race car racer, and a member of the Mississippi Valley State University Athletics Hall of Fame.
In this episode, we’re discussing…
[2:53] His backtrack and how he was fortunate to get involved in Wi-Fi and the genesis of all this business
[4:45] Details about the investment amount and how it provides income, 9% - 12% annual and it can grow 1%
[7:10] The asset appreciates about 5% a year, it’s a little bit different than equipment
[7:38] The customer/investor can sell his tower back; and they can buy it with an additional appreciation depending on the lease agreement
[9:55] Details about if the customer doesn’t want to sell, it is perpetuity?
[13:07] The huge growth of the Wi-Fi needs and they’re focusing on essential business
[16:54] The investor owns the equipment, it’s an asset, they own the network, and they partner with the investor
[17:50] They have a backup program, if there’s a hurricane or earthquake where the tower/equipment is, and it is damaged, there’s no cost to the investor
[22:40] How technology changes and how they face it with tremendous amounts of growth. They have powerful towers and wouldn’t be obsolete in 5, 8, or 10 years
[29:17] They’re growing exponentially, they’re doing acquisitions, they might be hitting the public market next year
Wally’s Tot Tips
“We provide a fair prevailing rate of return. And we throw off annually out of the box, no less than 8% up to 12%. And it's paid monthly. But here's the kicker. It's on a seven-year lease program. And we have a guaranteed buyback”
“So, say you started at, and I'm just going to give you a what if, you started at 9%, you've gone from 10% to 11%. So, you say now you're at 60% ROI on your tower. And by the way, we make money to, you know, we do the heavy lifting. We do all the insurance, all the maintenance, the software, the upgrades, every building has $5 million blank and insurance. So, we do all of that when I say, turnkey”
“Would you like to sell your tower, if that's the case, we'll cut you per tower, we'll cut you a check back for that 35% appreciation of $47,250, if you say no, I want to keep it going. So, we could extend it for three more years. But it would stay at whatever it was last year, getting about 16% of 17%. That's the maximum that we're able to provide”
“Because of COVID, we've pivoted, and we're now really focusing on essential business because they need it. Nursing homes, hospitals, schools. In Florida, we have probably three gated communities that are just about finished that are looking for Wi-Fi internet, they've contacted us, we're in the process of negotiating. I think it's anywhere between 13,000 to 15,000 homes”
“We've been very fortunate. I've got customers that have one tower. And they'd love it. I like to call it crockpot money or mailbox money. You put it in the crockpot in the morning, you come home after work, and it's all done. And, and I say, turnkey, it really is. But it's been amazing. It's an alternative, but most people don't really understand they could do”
“So, wherever they ever listen, people want faster, more efficient, we're better, we're faster. Our price point is amazing. And we do compete with the telecom att Verizon and sprint, we're just better”
“The biggest customer I have has 100 towers. And the interesting thing is, he put I think 45 or 50 In his personal and, it could be putting your corporation, your LLC, your personal name joint tenancy. And he also did the remaining ones with his IRA. So, it gives you options”
“It's interesting, because I always tell people, if you don't have a just a small portion of your portfolio in the internet or technologies, you're doing yourself a huge disservice”
Mike’s Top Tips
“People have careers, people are working, they’re looking to diversify out of their IRA’s, 401K's and mutual funds. This is a truly nice way to even your working IRA, you can do a self-directed in invest and so I give you $35,000, I get 10 to 15% return at the end of seven years, I make $47,000”
“I can imagine with all because of COVID, and everyone’s staying at home, you were seeing a lot more people working remotely, that there' an explosion, this greater need for all of these towers now”
“I always talk and people get tired of me saying this is I'm a big, big proponent of at least six branches of diversification in your monetary retirement portfolio. Don't keep everything in your work IRA or work 401K don't put everything in the stock market. Don't put everything in one easter egg, you know, just one bag”
ABOUT WALLY WRIGHT
Wally Wright, General Manager of SpectrumLink, Inc., has been consulting in private equity sectors for nearly 40 years. He's the driving force behind SpectrumLink’s nationwide sales for business, development, and retail, as well as its residential build-outs for Wi-Fi and hard-wired internet. Wally has generated over $250 million in revenue in his career and would love to give your listeners a rundown of the current investing landscape, alternative strategies for growing their money in the COVID era, and what being a professional Ferrari racer has taught him about sales and business.