Episode 93: REWIND: Case Study - From Money Maker to Money Manager with David Banks

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Host: Christopher Nelson

Guest: David Banks

In this episode of Managing Tech Millions, Christopher Nelson sits down with David Banks to discuss his inspiring transition from tech sales to full-time investing. With experience from three IPOs (Interwoven, VMware, Splunk), David shares how he built Addison Financial and created a portfolio that generates consistent cash flow, offering listeners actionable insights into managing wealth beyond the tech world.

Many tech professionals focus on equity compensation and salary-based earnings, but true financial freedom comes from strategic investing, risk management, and treating your portfolio like a business. Discover David’s strategies for building wealth, navigating private equity, and establishing long-term financial security.

Connect with David Banks

https://www.addisonfin.com/

https://www.linkedin.com/in/davidlbanks/

Highlights:

• The Power of Case Studies: How real-life examples build clarity, confidence, and commitment.
• David's Transition Story: From tech equity to financial freedom through strategic investing.
• Networking for Wealth: Leveraging professional networks for investment opportunities.
• Managing Money Like a Business: The benefits of structuring your investments with an LLC.
• Hard Money Lending Insights: David's experience with private loans and cash flow strategies.
• Risk Management: Understanding personal risk profiles and adapting investment strategies accordingly.
• Educational Resources: The importance of continual learning, forums, and mentorship in private equity.
• Portfolio Planning: How David and his wife set investment goals and track performance.

Episode Timeline:

• [00:00:40] David Banks on the importance of continual learning and networking
• [00:03:21] Transitioning from tech sales to financial freedom
• [00:06:45] The beginnings of Addison Financial and hard money lending
• [00:12:07] Understanding cash flow investing and risk profiles
• [00:15:44] Treating your investment portfolio as a business
• [00:19:48] Building wealth through multifamily properties and private equity
• [00:24:52] The role of education, forums, and mentorship in investing
• [00:28:19] Lessons learned transitioning from W-2 income to passive investments
• [00:34:12] Navigating market cycles and future investment opportunities