The Simple Passive Cashflow Fund Offering

I listen to the SimplePassiveCashflow.com Podcast but I'm confused as heck. First we talk about Turnkey Single Family rentals then Multi Family syndications and then this guy is flying out to Panama to look at Coffee Farms. There are so many good options but I lack the time to properly perform due diligenece and I don't quite see the big picture to build a diversified portfolio in there direct investments

- Busy Investors looking for an alternative

The Need in the Marketplace

Traditionally Public Placements is the way most people invest. It preys on the investor’s unsophistication and reinforced by marketing. Private Placements also known as direct investments are in hard assets using prudent leverage requires knowledge and a barrier to entry in terms of capital required. Investing in these type of “Country Club” investments are usually only accessible to wealthy and well-connected investors and not the hard-working middle class - those most in need for access to higher quality long-term investments.

With the Stock Market at all-time highs... now is the time to hedge the stock market and take your money off the table. By putting your money into non-correlated assets, you cut out the middleman, and put your money into investments that give lasting cashflow and backed by real estate as the collateral.

The Simple Passive Cashflow Fund invests in a deliberate blend of direct investments that utilizes prudent leverage, networking with other investors, and offers transparency in all accounting and operations.

Investment Prospectus

% Holdings Risk Profile
40% Cashflow
15% Blend: Cashflow & Value Add
45% Value Add
  • 35% +/- 10% -  Residential - Class B/C Turnkey portfolios (Equity), Land (Debt), Private money lending (Debt), Notes
  • 45% +/- 10% -  Commercial - Class B/C MFH (Equity), Mobile homes (Debt)
  • 10% +/- 10% - International/Other - Coffee Farms, Belize, Chocolate, ATM Machines (Equity)
  • 10% Emerging/Exotic Markets - Life Settlements, Marijuana
  • There will be at least 6 different holdings of at least 5% each
  • Liquidity: Investors will have 90 days to exit pending liquid funds or new investors come in. The investment was created to be a long term investment (1-10 years) part of your overall active/passive portfolio.

SWOT Analysis

Strengths:

  1. Illiquid Funds and Private money lending are possible but it would not be very diversified. Diversification is a goal of this fund.
  2. We are in a good market cycle but this fund will invest conservatively in direct investments that meet underwriting requirements
  3. Skin in the Game - Manager will invest 5-10% of the fund’s total value
  4. The fund will pool investment money to achieve a higher preference in some private placements. The fund manager will be able to obtain better knowledge on the investment and influence investment direction and exit strategy.

Weakness:

  1. Marketing and logistical communications
  2. Building fund branding
  3. Note: Manager compensation will reflect this initial fund offering with a lower compensation scheme (management split) and personally subsidizing diligence expenses. Future offerings will not have the same terms and is a benefit to early participants.

Opportunities:

  1. Accredited and well networked sophisticated investors get the best deals at the lowest risk
  2. Founding members get preference in future fund offerings
  3. Depreciation consolidation between parties within the fund

Threats:

  1. There are other funds that could have a higher return that invests in higher risk/reward investments
  2. In every investment there is risk however by diversifying in multiple investments and being nimble direct investors we are able to exit when there are warning signs
  3. In startup mode the fund will have to quickly place funds diligently which will lower returns temporality as we wait for good opportunities.  The investment profile will shift over time, especially as we reach stabilization.

Investment Returns

  • Equity Based
  • Investors 6% preferred return
  • 50% Management & 50% Investors split of returns above the 6% preferred return target

 

IRR Per Year

1st 12 Year IRR

IRR Per Year for Total Fund

17.5%

$104,917

IRR Per Year for Investor (You)

11.7%

$70,458

IRR Per Year for Sponsor

5.7%

$34,458

 

Example: John Invests $100,000 in the fund

Closing

It has been a passion of mine to help others break free from conventional investing and take back the profits from the middlemen on Wall Street. This fund will feature direct investments from those I know, like, and trust. I will personally underwrite each deal and evaluate the investment with my investors in mind. I will be investing alongside with at least $25,000 of my own cash in the investment as well as fronting the initial setup costs and legal fees.

As the fund manager, I will strive for transparency via quarterly webinars and other forms of private group communications. You will understand what is happening with your money.

This is a summary of the offering to be following with a Private Placement Memorandum (PPM). There will be extensive paperwork done by my Syndication Attorney so that you and I are following the guidelines of the SEC.

The accounting will be completed by a third-party CPA with distributions made quarterly. I don’t claim to be an expert in all things legal or accounting so I will outsource what I don’t have the expertise in and leverage my talents in the investment operations and building a relationship with you the customer. I expect you to do your own due diligence and as I say in every podcast…”think for yourself”.

Thank you for considering this opportunity.

If you are investing and especially if you are NOT investing please complete the following survey .

Non-Accredited Investors, please voice your opinions this is your way to get into investments earmarked for Accredited investors. If there is no Non-Accredited interest the fund will be only open to Accredited investors.

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