“Joining Investors and Deals”

I know most people will ask: How will you deal with the money? I’ll cover this in many ways today.  It will most likely go into an escrow account for the LLC, and a small portion about $250,000 would go to a checking account. Once all the funds are in an escrow account, and all the legal documents have been drawn up, the LLC will close on the property and at that point all liens would be placed against the property for each investor.  All the details will actually be defined in the memorandum that each investor will get.

The LLC  will also put all the sales of the lots into an escrow account. Every time that escrow account reaches a certain amount each investor would get a fourth of the total amount of their return. So as the development progress and sales happen investors would get returns each time the second escrow account reaches a set amount. Again more of the details of this are set forth in the memorandum that each investor will get & sign before they invest in this LLC.

I’ve talked about 401(k)s and Roth IRA’s that are self-directed, anyone can have a self-directed Roth IRA, there are companies like Entrust and others around the country that handle these accounts. That is what makes it a legal retirement fund because Ira account managers manage your money as you instruct them to, and what to invest in. I am not a financial adviser so I do not know all the laws, there are many types of Roth IRA’s , but the only one is a self-directed Ira that you can invest in real estate and other investments.  You need to talk to a  financial planner that can help you set up a self-directed Roth IRA. Then the IRA could invest in this development and double its money in two years or less.

All the details will be in the memorandum that serious investors will get a copy of once the LLC has all its funds to move forward. So if you download the investment summary it’s a brief overview of the plan. Right now I don’t know how many people would trust the stock market, and the next question is why would they trust me. The only way I would feel good about this is because through private money I can give liens on a land and secure your funds to double your investment.

In any investment there is really no security except the stock certificate or the knowledge of your return. By doing it this way,  giving you liens, on the property equal to double your investment, and as you get paid back you will release a certain portion of liens for each payment you receive. So if I replaced everybody’s investment within a year and then pay them the double their investment the second year everyone would be very happy, because I don’t know anyone that is willing to give this type of return on an investment.

This entry was posted on Saturday, January 10th, 2009 at 8:44 pm and is filed under Answer Questions Investors Will Be Asking!. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.