Blog Strategy
Strategy February 22, 2024

How To Earn 10% to 20% Returns with Alternative Investments

MS
Michael Salafia
Managing Partner, STAX Real Estate

Michael Salafia joined Sean Tepper on the Payback Time Podcast to discuss how investors can earn 10% to 20% returns through alternative investments in private companies — including gas stations, car washes, restaurants, and hospitals.

Two Primary Strategies

The conversation focused on two core approaches that STAX uses to generate returns for investors:

Fix and Flip Model — Acquiring underperforming companies, implementing operational and capital improvements, then reselling at a higher valuation. In the gas station space, this might mean upgrading fuel systems, adding EV charging, or improving the convenience store offering.

Passive Income Opportunities — Structuring deals that generate ongoing cash flow for investors through long-term net lease agreements. Triple-net leases on gas stations can provide stable, predictable income with minimal landlord responsibilities.

Why Alternative Investments?

For investors looking beyond traditional stocks and bonds, private real estate — particularly in the net lease gas station sector — offers several compelling advantages: higher yields than public markets, tangible asset backing, tax benefits through depreciation and 1031 exchanges, and inflation protection through lease escalations.

The full episode is available on the Payback Time Podcast.

MS
Michael Salafia
Managing Partner, STAX Real Estate

Former CEO of a dozen-location gas station operating company. 180+ stations sold. Specializing in NNN gas station brokerage, sale-leasebacks, and investment sales across Florida and the Southeast.

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