In a recent episode of Raising Private Money, Jay Conner welcomed Nic DeAngelo, founder and CEO of Saint Investment Group, for a deep dive into what it really takes to build wealth in today’s economic climate. With years of experience and a portfolio surpassing $200 million, Nic is a recognized figure in real estate known for his data-driven investment strategies. Their conversation unpacked critical perspectives on inflation, Wall Street, and the future of smart investing.
Navigating the Age of Inflation
Nic DeAngelo started by explaining an unsettling outlook: we are likely in the early stages of a long-term inflationary period. He pointed to America’s unprecedented government spending and ballooning national debt as major drivers. Both Republican and Democratic administrations, Nic noted, have participated in massive fiscal expansion, leading to a scenario where, for the first time in history, interest payments on the national debt could soon exceed even programs like Social Security. Combine that with an aging, risk-averse baby boomer population and ongoing money printing, and it’s clear why inflationary pressures are here to stay.
This inflation isn’t just an abstract economic trend—it has tangible impacts on everyday Americans, eroding wage gains and increasing the cost of living. Nic emphasized that so far, neither political party has staged a serious intervention to address the root causes, and both raising taxes and cutting spending present tough, politically unpalatable options.
What Wall Street Is Getting Wrong
A central theme of the episode was Nic DeAngelo’s take on Wall Street’s current state. He argued that Wall Street is fundamentally broken for everyday investors. Where stock market diversification once gave Main Street a fair shot, the number of public companies has dropped by over 40% since the 1990s, and more promising companies are choosing to stay private, leaving public markets top-heavy and driven by a handful of major tech firms. This has skewed returns and made it harder for investors to rely on Wall Street for consistent growth.
Nic highlighted another concern: the market’s addiction to hype. With exuberance around artificial intelligence and other trends, prices have surged well above underlying value by most metrics. It’s no longer a level playing field, and timing the market has become riskier than ever.
Why Real Estate Remains the Solution
Against this backdrop, Nic DeAngelo believes that real estate, and specifically private lending secured by real estate, stands out as a superior wealth-building tool. His conviction rests on classic economic fundamentals like supply and demand. The U.S. is short millions of single-family homes, and demand remains consistent, creating lasting pricing power and stability. While this shortage has made home buying more difficult for first-time buyers, it also means strong, long-term prospects for real estate investors.
What sets Nic apart is his approach to investing in the debt—lending against real estate rather than direct ownership. He maintains that this strategy delivers exposure to the asset class’s upside while avoiding many operational headaches. It also provides better returns than today’s traditional bonds, revitalizing the fixed-income portion of an investor’s portfolio at a time when stocks and bonds are moving in tandem, undermining the old 60/40 allocation model.
The Future: Opportunity Amidst Uncertainty
Looking ahead three to five years, Nic DeAngelo predicts that smart investors who position themselves correctly in private real estate debt and U.S. manufacturing will outperform those clinging to Wall Street’s conventional wisdom. He stressed that the largest investment groups have already moved significant resources away from stocks and bonds and into alternative assets, especially real estate.
He also addressed the role of technology, particularly artificial intelligence. While he’s optimistic about AI’s long-term potential, he warned that many current opportunities in the space are overhyped and lack solid fundamentals.
Action Steps for Investors
Both Jay Conner and Nic DeAngelo advocate for investors to take control, educate themselves on macroeconomic trends, and consider diversifying into real, physical assets like real estate. Those focused on stability and long-term returns, such as retirees and business owners seeking consistent passive income, are best positioned to benefit from these trends.
In a landscape where traditional strategies no longer guarantee success, the ability to anticipate economic shifts and act on solid data—rather than hype—is more important than ever. The insights shared by Jay Conner and Nic DeAngelo provide a valuable roadmap for anyone seeking to build lasting wealth in uncertain times.
10 Discussion Questions from this Episode:
- Jay Conner mentions that smart investors aren’t chasing deals but are positioning based on economic trends. What does it mean to “invest based on where the economy is going,” and how might this approach differ from traditional investment strategies?
- According to the episode, the U.S. is experiencing significant upward pressure on inflation. What are the main factors contributing to this, as outlined by Jay Conner’s guest, and how do these factors impact the everyday investor?
- The concept of a “debt bubble” is discussed at length. What is a debt bubble, and why is it considered problematic for the future of the U.S. economy?
- Jay Conner’s guest argues that the U.S. government has a spending problem rather than a revenue problem. Do you agree with this assessment? Why or why not?
- The guest claims that “Wall Street is broken and real estate is the cure.” What specific issues does he identify with the stock market, and how does he see real estate as a better option for investors?
- Many companies are choosing to stay private rather than go public on the stock market. What are the implications of this trend for individual investors and the perceived diversification of the stock market?
- Fixed income investing and a shift away from the traditional 60/40 stocks and bonds portfolio are highlighted as major trends among sophisticated investors. How might the rise of real estate debt funds and other alternative assets reshape the average investor’s portfolio in the coming years?
- Artificial intelligence (AI) is described as both a powerful tool and a current area of market “hype.” Based on the episode, what are the guest’s concerns about investing in AI-related sectors, and what realistic role does he see AI playing for investors?
- The shortage of single-family homes in the U.S. is presented as a major investment opportunity. What demographic and economic factors are driving this shortage, and how can investors best position themselves to benefit?
- Thinking ahead three to five years, what strategies did Jay Conner’s guest recommend for building wealth, and what do you see as the key risks and opportunities in following such a strategy?
Fun facts that were revealed in the episode:
- Nic DeAngelo has built a real estate portfolio worth over $200 million across more than 20 states, and his firm is on pace to raise over $100 million a year. Talk about scaling the American dream!
- Since 2020, over 80% of all US dollars ever printed have been printed. Nic DeAngelo points out that a dollar from 1913 now has the same buying power as $100 today. That’s some serious inflation trivia!
- Nic DeAngelo reveals that even if the US government confiscated every billionaire’s fortune, it would fund only about nine months of federal spending—a mind-blowing illustration of how massive US government spending is.
Timestamps:
00:00 Smart investing strategies with Nic
05:46 Debate on taxes and spending
07:12 US debt and inflation issues
12:33 Stock market concentration concerns
14:50 Real estate as an inflation hedge
17:29 Single-family home market dynamics
22:33 Joining Tiger 21 and investing strategies
24:42 Concerns about AI’s profitability
29:21 AI’s impact on jobs and the economy
30:44 Investing in private mortgage space
33:27 Understanding our investor demographics
34:14 Connect with Nic DeAngelo
https://www.SaintInvestment.com/Book
35:40 How To Start A Conversation With a Potential Private Lender
https://www.JayConner.com/Scripts
36:29 Ending the episode with a plug
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