What Makes Us Different

[Steven Libman]

Explore the distinctive factors that set us apart from other investment companies as we tackle our investment ethos and approach, prioritizing investors' interests and capital preservation.

Differences between public and private market investing

When venturing into the investing world, it's crucial to distinguish between public and private markets. This differentiation might significantly impact your investment options and the associated risks and rewards. So, let's delve into the key disparities and their implications to help you make informed decisions with the guidance of your financial advisor.

• Public Markets: Real Estate Investment Trusts (REITs)

When discussing investments with your financial advisor, they might introduce you to a Real Estate Investment Trust (REIT) as a viable option in the public markets. REITs are investment products registered with the Securities and Exchange Commission (SEC) for securities purposes. Being traded on the open market means they are highly liquid, allowing investors to buy or sell shares at prevailing market prices quickly. Historically, REITs have yielded returns of 6% to 8%, offering an attractive investment avenue for many. One of the key benefits of investing in REITs is that you receive a 1099 form for income earned, simplifying the tax reporting process.

• Private Markets: Private Placement Memorandum (PPM)

On the other hand, private investments involve companies offering opportunities to a select group of accredited investors through a Private Placement Memorandum (PPM). A PPM is a comprehensive disclosure document outlining the investment opportunity's risks, objectives, and operational guidelines. It functions as a contract between the investors and the company, ensuring adherence to all SEC rules and regulations, despite not being registered. It is a crucial document, providing legal protection and an exemption from registration requirements. These private investment opportunities often cater to smaller, more specialized markets, offering unique advantages for investors willing to take on potentially higher risks for greater rewards.

In conclusion, understanding the difference between public and private markets is essential when discussing investments with your financial advisor. Partner with your financial advisor, evaluate your risk tolerance and consider your long-term goals to make informed investment decisions that align with your unique financial situation.

Approaches in real estate that sets apart from other investment firms

In a market filled with numerous real estate investment opportunities, investors must understand the distinct features that set different operators apart. Here are some unique approaches to real estate investments that prioritize investors' benefits.

• Higher-Than-Normal Preferred Returns: Before any profits are distributed to the operators, investors receive the preferred returns first.
• Investment Ethos:
  • Preservation of Capital - A cautious approach, thoroughly analyzing potential properties and ventures to minimize risks and ensure the safety of investors' money.
  • Return of Capital - Once the investment is secured, the focus shifts to ensuring investors receive it back. Thorough planning and execution to generate stable returns and maintain the integrity of investment projects.
  • Return on Investment(ROI) - Last, providing partners a healthy return on investment. Recognize the importance of generating profitable results. They conduct in-depth analyses and due diligence to identify properties that offer attractive returns for our investors.
• Clawback Provision for Investors Protection: A clawback provision is included in the private placement memorandum to reinforce the commitment to financial success further. This provision ensures that if the investment falls short of the targeted returns, they must make up the difference from their own proceeds. This protection measure exemplifies the dedication to honesty, transparency, and accountability.
• Monthly Distributions: They understand the importance of passive cash flow to investors. While many operators opt for quarterly distributions for accounting convenience, they go the extra mile by providing monthly distributions. Although this approach involves more accounting efforts, it offers investors a steady stream of passive income and greater financial convenience.

In conclusion, this approach to real estate investments is centered on building a strong and mutually beneficial partnership with investors. Their commitment to investors' financial success and the protection of capital drives every decision they make as operators, and they look forward to helping investors achieve their investment goals with confidence.

The heart and soul behind a unique investment philosophy

Something extraordinary in the business and finance world sets us apart from others—the heart behind operations and dedication to purposeful investing. A unique investment philosophy was born from a simple yet profound question: How do we give more abundantly before achieving financial success?

Investing with Purpose's ultimate goal is to fund nonprofits worldwide and support diverse ministries that positively impact countless lives. They firmly believe that impact investing is the cornerstone of success. It goes beyond financial gains and allows them to channel their resources into meaningful projects that help others. They see this as a powerful way to make a lasting difference in the lives of those less fortunate, fulfilling their duty to care for the community and the world.

With every new investment, our commitment to giving has grown stronger. As success in the real estate market increased, so did contributions to charitable causes. As such, from giving 1% from our first property, our offering has grown to 13% on the last deal above our 10% company tithe. The beauty of their investment philosophy is that it doesn't impact investors' returns. We take these contributions out of corporate profits, ensuring investors' financial gains remain unaffected. This alignment of our financial objectives with our passion for giving allows us to achieve prosperity and purpose. Real estate may be the business—the "what," but the "why" behind their actions is investing with purpose. They find joy and fulfillment in using our resources and influence to make a positive impact. This sense of purpose energizes us and motivates our investors to join us in this meaningful journey of changing lives through impact investing.

Therefore, an investment philosophy that goes beyond the pursuit of profits; it embodies the desire to create a better world for all. We are excited to share this journey with you, knowing that together, we can make a lasting difference and leave a positive legacy.