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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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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 giving the knowledge and support for our others to invest with
mental tranquility.
Essential Resources
cash
cashflow
credit
equity
time
talent
strategic relationships
control of an opportunity
LIMITED
Yours is LIMITEDHarness other people = INFINITE
Retirement Distributions at Any AgeNO early withdrawal penalty
Substantially equal payments for 5 years or until 59 ½ years old
Early withdrawal penalty EXEMPTION “IRS 72 t”
$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 YieldsDistributions without depletion of principal
Avoiding the early withdrawal penalty before 59 1/2
Rule #1
There is no such thing as a good property or bad property.
There is no such thing as a good investment or bad investment.
There is only appropriate and inappropriate ownership and timing.
www.HasslefreeCashflowInvesting.com
Your Role as an Investor
Active or Passive?
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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
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Challenges of Owning Individual Properties
✤Potential for negative cash flow✤Potential for negative equity✤Potential for personal liability
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Group Investing
Several individual investors combining their financial resources into a single investment managed by a team of
professionals.
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✤ 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 Liability2. Force Equity without Effort3. No Personal Guarantee on Loan4. Easier for IRAs than Individual Properties5. LESS TIME = LESS HASSLE6. Your manager has a vested interest in doing well7. Repeatable / duplicatable / scalable
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Deal TypesPassive 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
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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
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Ownership Structure
Members of LLCActive (Managing Member) Passive (Limited Member)
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“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
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WHY NOW?!?!?
Low Prices Low Interest Rates Flexible Sellers Looming Inflation Traditional Safe Havens for Passive Income
are Not an Option
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MARKET CYCLE
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BUY HERE
MARKET CYCLE
www.HasslefreeCashflowInvesting.com
MARKET CYCLE
www.HasslefreeCashflowInvesting.com
BUY HEREBUY HERE
MARKET CYCLE
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PASSIVE INVESTMENT OPPORTUNITY PRE-REQUISITES
AccreditedNon-accredited with pre-existing relationship
this is not a general solicitationyou’re here because you know me
You don’t need the liquidityYou can afford to lose your principal
www.HasslefreeCashflowInvesting.com
Investing Process
1. Sign NCND / Expression of Interest2. Receive email with PPM & document vault access3. Collect pledges & questions4. Paperwork 5. Fund investment contingent upon closing property6. Countersigned documents7. Periodic investor updates via email / webinar / phone8. Periodic distribution of dividends