ALPM Newsletter: So you have a $1,000,000 in cash sitting in the bank and no idea what to do with it?
So you have $1MM in cash sitting in the bank and no idea what to do with it?
Well, maybe that is not really the case. If you have a million dollars in cash sitting in the bank I am sure you have some ideas on what you want to do with it.
I mean, you have seen plenty of good deals come your way that you would snap up if you had that kind of money just sitting in the bank, am I right?
Most of the time, you probably turn to Private Lenders to help you fund your projects.
And in today’s economic environment a million dollars a year for projects is almost the norm for most independent operators if you are doing business full time.
You know the cost of money from Private Lenders is not cheap.
As an example, to borrow $1MM from A List Partners for a year would cost $120,000 in interest PLUS $30,000 in Lender Discount Points PLUS $20,000 in Broker points.
Therefore your cost to use $1MM for one year is $170,000 out of your pocket.
Until now you may not have had any other options. Of course, now you know you have at least one other option.
And that option is to become a protégé in the Fund Manager Mentorship Program, where your cost of money is significantly less because you are working with Private Equity Investors instead of Private Lenders.
Consider this; your first year in operation presuming you started with $1MM on day one would be a cost to you of:
(a) $35,000 to $40,000 in startup cost
(b) $50,000 in fixed return paid to your investors in your fund
(c) $8,000 in ALPT administration fees
Therefore a total cost of $1MM raised through your own equity fund is approximately $93,000-$98,000 your first year. But guess what? Your Equity Partners covered or reimbursed most if not all of the expenses.
Plus, if you have stayed on top of your projects and turned them over during that year, you will have upwards of $1MM at the end of your first year to start your second year projects.
You are saving $72,000 in year one over borrowing money. And by the way, beginning with the 13th month you can raise an additional $1MM allowing you to put $2MM to work in the second year.
The cost of funds on $2MM your second year would be $100,000 (5% fixed return to your investors) PLUS $12,000 in ALPT Administrative fees for a total of $112,000. Compare that to borrowing $2MM from a Private Lender. The cost to borrow would be $240,000 in interest PLUS $60,000 in Lender Discount Points PLUS $40,000 in Broker fees for a total of $340,000. You’ll be saving $228,000 your second year and you still have $2MM to work with to start your third year. Just rinse and repeat.
Which Option makes the most sense for you, borrowing from Private Lenders or becoming a protégé in the Fund Manager Mentorship Program while you still can?
Even though we are holding several one day workshops presenting the opportunity to close to 100 interested entrepreneurs between now and the end of this year, we are only taking a limited number of protégés.
Call me today and lock in your position before someone else grabs it.
Think Realty Conference
Last week Jake Hallahan and Scott Haberbosch took to some marketing and education for A List Partners Management, and A List Partners Technology at the Think Realty Global Conference in San Francisco, California.
Jake was busy meeting representatives from other Regional Centers as well as teams skilled in EB5 immigration. He was featured on a speaking panel moderated by Geraci Law Firm’s own Kevin Kim on the subject of Navigating the Legalities of Foreign Investment in the US.
Scott spent a great deal of time networking with other firms offering high-technology solutions for their clients as well as promoting the future of investing: the A List Partners Technology platform.
Every day the A List Partners Team sees plenty of opportunities in this market that can produce higher than average returns on investment! To learn how we can help you take advantage of these opportunities, talk to a Member of the A List Partners Team today!
“Innovation in Capital Raising”
Grow Your Company Before Your Competitors Do
The EB-5 visa is now an important way for a foreigner who wants to obtain permanent residency in the U.S. Fiscal year 2014 is the first time that the program had reached its numerical cap.
Come to Innovate 2016 and learn about innovative avenues to capital and lending, including the EB-5 visa program, foreign investment, portfolio interest, state finder’s fee regulations and alternative debt financing.
Our Platinum Sponsor, David Owen, CFM, an industry leading lender, developer and fund manager will discuss these avenues and more. David will be joined by Senior Corporate and Securities Attorney, Kevin Kim, Esq.
Register for Innovate 2016 below!
“Our focus will be new developments, innovations and ideas that have been trending in the real estate finance industry. You can expect to learn about these emerging markets in lending and capital sourcing, along with a practical discussion on how to navigate these new arenas.”
1107 Taulbee Lane
915 Stobaugh Unit A