Goal
To bring investors together to raise capital for larger rates of return and provide updated and better homes for the lower to middle income, senior citizens, and anyone needing assistance with obtaining a home.
To create wealth for LLC participants through real estate investments.
Goal for the groups
To make higher than average rates of return on investors finances, also to help group members build their portfolios and wealth.
Groups
•There may be more than one group depending on what members are wanting to invest in. IE: Flip-sells, and Investment Long Term groups.
•Members can be part of any or all groups. All groups require no work or dealings with tenants, management, or maintenance.
Each Property or group deal
•An LLC. will be formed to protect the members of the group. Each member of the group will be paid their percentage monthly return of net rental profit every quarter or yearly depending on the LLC’s decision.
•In addition, the LLC will file a IRS form 1065 and the members of the LLC will receive an IRS form K-1 that will list all the financial information their accountant will need.
•Reasons for LLC: To protect all of the participants from any liability issues (tenants falls, breaks leg, sues us)
•For tax and cash flow disbursement reasons as well.
•The name of the entity will be the name of the investment.
Can You Live without Real Estate Investments?
With
•Net worth: $4,625.00
•$2,500 @ 2%= $50.00
•$2,500 @19% = $523.20
•21%average = $573.20
•Overall 21% return by including some of their savings with group investing in real estate
•Residual monthly cash flow $43.60
Without
•Net worth: $5,000.00.
•$5,000.00 @ 2% = $100.
•Overall 2% return as long as they never touch there savings.
•No residual cash flow.
Do something
•Invest $16,500.00 in apartment with others
•Loss of $2,567.80 on your taxes (15% after taxes return)
•Keep $1,590.00 tax free
•Increase wealth by $60,000.00
•$16,500.00 / $1,590.00 = 9% return before taxes
•More monthly income if no maintenance is needed.
•More monthly income if fewer vacancies
•No work, maintenance, or tenants to worry about
•Property may possibly increase in value about 2-4% per year.
•($12,000.00 – $24,000.00)
Or Do Nothing
•Invest $16,500.00 in savings
•@ 2% APR
•Make $330.00 in interest
•Pay $92.40 in taxes
•Net +$237.60
•Increase wealth by $237.60
•Return of 1.4% after taxes
Guarantee
•This is an “Investment”.
•This is not a “Loan” program.
•There are “No Guarantee’s” on monthly return or residual income.
•If there is a vacancy or monthly net profit drops because of vacancy or repairs, your monthly residual cash flow will be adjusted accordingly.
•The difference from the normal will be recorded as a loss on your K-1 statement.
Summary Come Invest with the Best
•Real estate is not going to make you rich overnight, but it will get you to your net worth goals faster.
•You can not really just look at how much you invest and what the return APR is.
•You also have to look at the tax advantages, the controlling or leverage power, and what it will do for your net worth.
•A self-made millionaire doesn’t usually mean they have a million dollars in the bank. It usually means their NET WORTH is a million plus.
•If you had 50,000 invested in a savings you would have a 50,000 net worth.
•If you re-allocated that 50,000 and left 10,000 in savings and invested 40,000 in real estate with others you would now have 162,000 NET WORTH. (48 unit investment)
•Invest 40,000 gives you 152,000 of net worth. – (LEVERAGE)
•What would you or your family rather have?
•50,000.00 net worth with no residual cash flow – (Savings)
•162,000 net worth with TAX ADVANTAGES AND RESIDUAL CASH FLOW… – (Real Estate with possible 2-4% yearly property increase)
Our Hopes
•We (Johnny and Cristi) have built a nice monthly residual cash flow from our investments over the past 9 years.
•Our residual cash flow has helped us over the years to ease our financial burdens. We are wanting to help others create their own cash flow.
•We know anyone can do this.
•We are wanting to continue to grow and build our wealth.
•We are looking for other investors, so we can buy bigger and more profitable properties.
•Together we can build large amounts of wealth with less risk and financial burdens in less time, than we can on our own.
Legal Information
•For the past 2-3 months I have been speaking with various Attorney’s, Accountants, and Realtors. To make sure all this is legal.
•I have spoke with the Securities Exchange Commission (Steve Wassome) and we are in compliant. Statue Ref.: KSA17-12A202(14)
•I have a template made for our LLC and operating agreements.
•All the information provided here today are figures and numbers of actual properties in the Wichita area, that have been bought, sold, or are on the market today.
As with all real estate investments there is always a degree of risk involved. There are “No Guarantee’s” on monthly return or residual income.
1st of all we try not to get into a property unless we make 10% APR yearly.
That’s what is so neat about this idea and ALL YOU DO IS INVEST, AND GET A QUARTERLY CHECK. WE TAKE CARE OF EVERYTHING ELSE.