Introduction to armchair investing

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If you've considered being a passive real estate investor, this introductory video will give you some excellent ideas on where to get started.

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Introduction to armchair investing

  1. 1. www.HasslefreeCashflowInvesting.com Off Market and Passive Real Estate Investment Opportunities Fourth Dimension Real Estate, Inc. David Campbell - CEO
  2. 2. Begin with end in mind My Philanthropy: helping other people live more abundant lives through hassle-free investments by givingthe knowledge and support for our others to invest with mental tranquility.
  3. 3. Essential Resources cash cashflow LIMITED credit equity time HarnessYours is LIMITED talent other people = INFINITE strategic relationships control of an opportunity
  4. 4. Early withdrawal penalty EXEMPTION “IRS 72 t” Retirement Distributions at Any Age NO early withdrawal penalty Substantially equal payments for 5 years or until 59 ½ years old $500,000 principal x 20% ROI = $100,000 annual profit$50,000 profit distributed and TAXED as ordinary income $50,000 income remains in IRA and is TAX DEFERRED
  5. 5. Retiring Earlier Than You Thought Possible Higher Yields Distributions without depletion of principalAvoiding the early withdrawal penalty before 59 1/2
  6. 6. Rule #1property no bad property. a good There is or such thing asinvestment or badthing as a good There is no such investment.inappropriateappropriateand There is only ownership and timing.
  7. 7. www.HasslefreeCashflowInvesting.com Your Role as an Investor Active or Passive?
  8. 8. www.HasslefreeCashflowInvesting.com Challenges of Individual Properties ✤ Individual Properties are Always Active ✤ even w/ professional property management. ✤ YOUR TIME = YOUR MONEY ✤ High ROIs Require Use of Leverage ✤ Loans are Difficult to Acquire (Especially Retirement Funds) ✤ Loans Requires Good Credit, Experience, and Cash ✤ Low Interest Rates Require Personal Recourse
  9. 9. www.HasslefreeCashflowInvesting.com Challenges of Owning Individual Properties ✤Potential for negative cash flow ✤Potential for negative equity ✤Potential for personal liability
  10. 10. www.HasslefreeCashflowInvesting.com Group Investing Several individual investors combining their financial resources into a single investment managed by a team of professionals.
  11. 11. www.HasslefreeCashflowInvesting.com ✤ Deals Attract Dollars ✤ Dollars Attract Deals ✤ Together Everyone Achieves More ✤ Bigger and Better Opportunities ✤ Leverage ✤ Other People’s Time ✤ Other People’s Money ✤ Other People’s Knowledge ✤ Other People’s Relationships ✤ Other People’s Credit
  12. 12. www.HasslefreeCashflowInvesting.com Who Should Consider Group Deals? ✤ Busy People: “Hands Off” Investing ✤ New Investors: Earn While You Learn ✤ Retirement Funds: IRA, 401k ✤ Those Interested in Bigger Deals ✤ More interesting projects / Higher net margins ✤ Active vs. passive diversification ✤ Marketplace diversification ✤ Product type diversification
  13. 13. www.HasslefreeCashflowInvesting.com Advantages of Group Projects 1. Limited Liability 2. Force Equity without Effort 3. No Personal Guarantee on Loan 4. Easier for IRAs than Individual Properties 5. LESS TIME = LESS HASSLE 6. Your manager has a vested interest in doing well 7. Repeatable / duplicatable / scalable
  14. 14. www.HasslefreeCashflowInvesting.com Deal Types Passive Equity / Passive Cash Flow Market Appreciation / Rental income from operations Found Equity Purchase through strategic relationship or don’t wanter Phased Equity Pre-determined rent increases Forced Equity Add Value through Construction / Rehab / Subdivision
  15. 15. www.HasslefreeCashflowInvesting.com Investment Objective Varies Per Project •Equity Growth 10-15% annualized •Cash Flow 5-10% annualized •Blend of Cash Flow & Equity Growth •20% = 10% cash flow + 10% equity
  16. 16. www.HasslefreeCashflowInvesting.com Ownership Structure  Members of LLC  Active (Managing Member)  Passive (Limited Member)
  17. 17. www.HasslefreeCashflowInvesting.com “Main Stream” Sources of Passive Income are Not an Option  Bonds and CDs do not outpace inflation  Stock market risky & unpredictable  (ERISA withdrawal/ manipulated)  High risk of hyper-inflation
  18. 18. www.HasslefreeCashflowInvesting.com WHY NOW?!?!?  Low Prices  Low Interest Rates  Flexible Sellers  Looming Inflation  Traditional Safe Havens for Passive Income are Not an Option
  19. 19. MARKET CYCLEwww.HasslefreeCashflowInvesting.com
  20. 20. MARKET CYCLEwww.HasslefreeCashflowInvesting.com BUY HERE
  21. 21. MARKET CYCLEwww.HasslefreeCashflowInvesting.com
  22. 22. MARKET CYCLEwww.HasslefreeCashflowInvesting.com BUY HERE BUY HERE
  23. 23. www.HasslefreeCashflowInvesting.com PASSIVE INVESTMENT OPPORTUNITY PRE-REQUISITES  Accredited  Non-accredited with pre-existing relationship  this is not a general solicitation  you’re here because you know me  You don’t need the liquidity  You can afford to lose your principal
  24. 24. www.HasslefreeCashflowInvesting.com Investing Process 1. Sign NCND / Expression of Interest 2. Receive email with PPM & document vault access 3. Collect pledges & questions 4. Paperwork 5. Fund investment contingent upon closing property 6. Countersigned documents 7. Periodic investor updates via email / webinar / phone 8. Periodic distribution of dividends
  25. 25. www.HasslefreeCashflowInvesting.com Questions / Consultation David@HasslefreeCashflowInvesting.com (866) 931-9149 ext 1

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