www.HasslefreeCashflowInvesting.com Off Market and Passive Real Estate Investment Opportunities Fourth Dimension Real Estate, Inc. David Campbell - CEO
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.
Essential Resources cash cashflow LIMITED credit equity time HarnessYours is LIMITED talent other people = INFINITE strategic relationships control of an opportunity
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
Retiring Earlier Than You Thought Possible Higher Yields Distributions without depletion of principalAvoiding the early withdrawal penalty before 59 1/2
Rule #1property no bad property. a good There is or such thing asinvestment or badthing as a good There is no such investment.inappropriateappropriateand There is only ownership and timing.
www.HasslefreeCashflowInvesting.com Your Role as an Investor Active or Passive?
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
www.HasslefreeCashflowInvesting.com Challenges of Owning Individual Properties ✤Potential for negative cash flow ✤Potential for negative equity ✤Potential for personal liability
www.HasslefreeCashflowInvesting.com Group Investing Several individual investors combining their financial resources into a single investment managed by a team of professionals.
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
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
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
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
www.HasslefreeCashflowInvesting.com Ownership Structure Members of LLC Active (Managing Member) Passive (Limited Member)
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
www.HasslefreeCashflowInvesting.com WHY NOW?!?!? Low Prices Low Interest Rates Flexible Sellers Looming Inflation Traditional Safe Havens for Passive Income are Not an Option
MARKET CYCLEwww.HasslefreeCashflowInvesting.com BUY HERE BUY HERE
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
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