Tired of the stock market's wild ups and downs, a growing number of investors are diversifying into Alternative Investments like the Endowments and Public Pension Plans have over the last decades. You can take a small portion of your investment portfolio and emulate a similar strategy. This strategy will accomdomate either your retirment funds or your non-retirement funds. If it is your retirement funds then you will need to have a self directed IRA account with a Custodian that supports Alternative Investments ( Real Estate, Promissory Notes, Mortgages and other Alternative Investments).
This strategy accommodates both retirement (non-taxable) and non-retirement funds (taxable).
Investments are placed in secured real estate transactions like Tax Deeds on real estate or Private Loans backed by 1st Mortgages.
Minimum Investment is $25,000 and the Max is 20% of your Net Worth.
These are illiquid investments but have been performing extremely well subsequent to the Real Estate fiasco in 2008.
Structure of Investment Partnerships:
1. Investor owns 100% of the LLC
2. LLC created as a Special Purpose Entity
3. Sam Stinnett is the manager or co-manager of the LLC
4. LLC invests only in Real Estate and owns 100% of the assets.
5. No leverage / financing is used with the LLC. No pooling of investor cash with other investors. These are separately managed accounts.
6. LLC has a bank account established with SunTrust Bank. Manager has check writing capabilities and Investor/Owner has online 24/7 access.
7. Profits are split 50/50 between Investor/Owner and the LLC Manager. Interest are aligned because Manager can't make any money unless Investor makes money. If the investment is not profitable then the Manager earns nothing and is responsible for liquidating the investment.
8. No overhead charges or salaries taken from the LLC. Only direct charges related to an investment are expensed through the LLC and the annual charge for the LLC tax return.
9. Monthly reporting provided by Manager to Investor/Owner. Each LLC has its own set of financials maintained in Quickbooks.
Minimum of $25,000 Required for Investment Partnership
Both IRA and Non-IRA Funds accepted for investment
Contact Info: firstname.lastname@example.org