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Introduction to armchair investing
1. www.HasslefreeCashflowInvesting.com
Off Market and Passive
Real Estate
Investment Opportunities
Fourth Dimension Real Estate, Inc.
David Campbell - CEO
2. 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.
3. Essential Resources
cash
cashflow LIMITED
credit
equity
time HarnessYours is LIMITED
talent
other people = INFINITE
strategic relationships
control of an opportunity
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. Retiring Earlier Than You Thought
Possible
Higher Yields
Distributions without depletion of principal
Avoiding the early withdrawal penalty before 59 1/2
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.
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. www.HasslefreeCashflowInvesting.com
Challenges of
Owning Individual Properties
✤Potential for negative cash flow
✤Potential for negative equity
✤Potential for personal liability
10. www.HasslefreeCashflowInvesting.com
Group Investing
Several individual investors combining
their financial resources into a single
investment managed by a team of
professionals.
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. 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. 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. 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
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. www.HasslefreeCashflowInvesting.com
WHY NOW?!?!?
Low Prices
Low Interest Rates
Flexible Sellers
Looming Inflation
Traditional Safe Havens for Passive Income
are Not an Option
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. 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