introduction to armchair investing

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www.HasslefreeCashflowInvesting.com Off Market and Passive Real Estate Investment Opportunities Fourth Dimension Real Estate, Inc. David Campbell - CEO

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If you've considered being a passive real estate investor, this introductory video will give you some excellent ideas on where to get started.

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Page 1: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Off Market and Passive Real Estate

Investment Opportunities

Fourth Dimension Real Estate, Inc.David Campbell - CEO

Page 2: Introduction to armchair investing

Begin with end in mind

My Philanthropy: helping other people live more abundant lives through hassle-free investments by giving the knowledge and support for our others to invest with

mental tranquility.

Page 3: Introduction to armchair investing

Essential Resources

cash

cashflow

credit

equity

time

talent

strategic relationships

control of an opportunity

LIMITED

Yours is LIMITEDHarness other people = INFINITE

Page 4: Introduction to armchair investing

Retirement Distributions at Any AgeNO early withdrawal penalty

Substantially equal payments for 5 years or until 59 ½ years old

Early withdrawal penalty EXEMPTION “IRS 72 t”

$500,000 principal x 20% ROI = $100,000 annual profit

$50,000 profit distributed and TAXED as ordinary income$50,000 income remains in IRA and is TAX DEFERRED

Page 5: Introduction to armchair investing

Retiring Earlier Than You Thought Possible

Higher YieldsDistributions without depletion of principal

Avoiding the early withdrawal penalty before 59 1/2

Page 6: Introduction to armchair investing

Rule #1

There is no such thing as a good property or bad property.

There is no such thing as a good investment or bad investment.

There is only appropriate and inappropriate ownership and timing.

Page 7: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Your Role as an Investor

Active or Passive?

Page 8: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Challenges of Individual Properties

✤ Individual Properties are Always Active ✤ even w/ professional property management.

✤ YOUR TIME = YOUR MONEY✤ High ROIs Require Use of Leverage

✤ Loans are Difficult to Acquire (Especially Retirement Funds)✤ Loans Requires Good Credit, Experience, and Cash✤ Low Interest Rates Require Personal Recourse

Page 9: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Challenges of Owning Individual Properties

✤Potential for negative cash flow✤Potential for negative equity✤Potential for personal liability

Page 10: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Group Investing

Several individual investors combining their financial resources into a single investment managed by a team of

professionals.

Page 11: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

✤ Deals Attract Dollars✤ Dollars Attract Deals✤ Together Everyone Achieves More✤ Bigger and Better Opportunities✤ Leverage

✤Other People’s Time✤Other People’s Money✤Other People’s Knowledge✤Other People’s Relationships✤Other People’s Credit

Page 12: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Who Should Consider Group Deals?

✤ Busy People: “Hands Off” Investing✤ New Investors: Earn While You Learn✤ Retirement Funds: IRA, 401k✤ Those Interested in Bigger Deals✤ More interesting projects / Higher net margins✤ Active vs. passive diversification✤ Marketplace diversification✤ Product type diversification

Page 13: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Advantages of Group Projects

1. Limited Liability2. Force Equity without Effort3. No Personal Guarantee on Loan4. Easier for IRAs than Individual Properties5. LESS TIME = LESS HASSLE6. Your manager has a vested interest in doing well7. Repeatable / duplicatable / scalable

Page 14: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Deal TypesPassive Equity / Passive Cash Flow

Market Appreciation / Rental income from operations

Found Equity Purchase through strategic relationship or don’t wanter

Phased Equity Pre-determined rent increases Forced Equity Add Value through Construction / Rehab / Subdivision

Page 15: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Investment Objective Varies Per Project

•Equity Growth 10-15% annualized

•Cash Flow 5-10% annualized

•Blend of Cash Flow & Equity Growth

•20% = 10% cash flow + 10% equity

Page 16: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Ownership Structure

Members of LLCActive (Managing Member) Passive (Limited Member)

Page 17: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

“Main Stream” Sources of Passive Income are Not an Option

Bonds and CDs do not outpace inflation Stock market risky & unpredictable

(ERISA withdrawal/ manipulated) High risk of hyper-inflation

Page 18: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

WHY NOW?!?!?

Low Prices Low Interest Rates Flexible Sellers Looming Inflation Traditional Safe Havens for Passive Income

are Not an Option

Page 19: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

MARKET CYCLE

Page 20: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

BUY HERE

MARKET CYCLE

Page 21: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

MARKET CYCLE

Page 22: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

BUY HEREBUY HERE

MARKET CYCLE

Page 23: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

PASSIVE INVESTMENT OPPORTUNITY PRE-REQUISITES

AccreditedNon-accredited with pre-existing relationship

this is not a general solicitationyou’re here because you know me

You don’t need the liquidityYou can afford to lose your principal

Page 24: Introduction to armchair investing

www.HasslefreeCashflowInvesting.com

Investing Process

1. Sign NCND / Expression of Interest2. Receive email with PPM & document vault access3. Collect pledges & questions4. Paperwork 5. Fund investment contingent upon closing property6. Countersigned documents7. Periodic investor updates via email / webinar / phone8. Periodic distribution of dividends