Tag: venture capital

Private Placement Investments

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What Trump & Buffet won’t tell you: “How to Maximize your Return & Eliminate Risk”

There are many things in life that are kept hidden from common public knowledge for one reason or another, but ultimately they are there if you do some research and find them. The number one thing that is not readily known is that there are “retail investments” and “wholesale investments”. The majority of the public only knows about “retail investments”. The character of retail investments are lower returns and sometimes even higher risk continue reading. The reason that some of these retail investments are higher risk is that they shed off so little return that you are actually losing money when you compute inflation into the equation. The reason that they give you such little return is that they say your principle is safe. Ask yourself this question: “How safe is my money, when it is actually losing money consistently when inflation is taken into account”? Another question to ask is “How much of my principle is at risk”? Let’s take a look at just some of the many “retail investments”.

1. Stocks
2. Mutual Funds
3. CD’s (Credit Deposits)
4. T-Bills and T-Bonds

Now the question should be what are “wholesale investments”? Wholesale investments in and of themselves are highly protected in nature. The reason the previous statement is true is because the majority of the wholesale investments are private or “by invitation only”. They are peer to peer or small groups of networks. You have to know someone who has access to the wholesale investments in order for you to have access to them. There are various reasons for this. One, of many, is that there are a lot of regulations that are placed on investments deemed “public worthy” by the SEC and various other regulatory agencies. These are your retail investments that everyone knows about. The people that have access to the desired wholesale investments have no desire to put up with regulatory agencies and to be honest, don’t have the time. The regulatory agencies are fine with these wholesale investments operating, just as long as the people running these types of investments don’t advertize or solicit for business. So these are the rules that everyone plays by. Everyone is happy, except for the general public which is not given the full picture of all of the different types of investment vehicles which are available. The characteristics of wholesale investments is high rates of return, paid weekly, monthly, and sometimes yearly depending on what the investment is and are by invitation only. Most of these wholesale investments have very little risk and the best ones have zero risk. That is right, let me repeat myself, the best wholesale investments eliminate risk. Really, the only downside to these wholesale investments is that there are mandatory minimum investment amounts. Generally speaking $100k USD is the minimum. The majority of wholesale investments source the funds as well. This is for the protection of everyone involved. Let’s take a look at some of the different types of wholesale investments that are out there:

1. Private Placement Memorandums- Allows you to invest in a private company before they go public on a stock exchange by doing an IPO (Initial Public Offering).

2. Corporate Investment Programs- Consist of contracting with financial institutions. Everything from returns to funds placement is contracted. This particular investment is one of the best wholesale investments available. There are two reasons this is the case. It has an extremely high rate of return and risk is eliminated due to the contractual component of this type of investment.

3. Private Managed Accounts- These are different than public managed accounts, as they do not advertize and are only available through word of mouth, usually an intermediary.

4. 506 Regulation D- Another form of Private Placement Memorandums

5. Syndications- These types of investments are different almost each and every time they are put together. The main thing to know is that they are temporary in nature and work for a common goal.

Unless you have already invested in some of these, likely you do not have access to them. There are many different ways to get involved with them, but the easiest is to know someone that is already involved with them. Though this might sound like an impossible mission, I can personally tell you it is not. The best and most effective way to do this is to use an intermediary, private placement individual, or referring broker. Many times all three are one in the same, meaning that they all do the same thing.