We’ve discerned a significant demand for a relatively hands off method of joining group investments in discounted notes. We’ve decided to supply that demand.

Download Audio

 

Transcript:   This is another group investment for you to consider. This is more traditional. What we’re going to do is we’re going to create a sub note fund. This will be for those people who want to buy notes, are not accredited investors. For those of you who have not heard that phrase before, an accredited investor, which is a Securities and Exchange Commission phrase, it’s a legal phrase more or less, it just simply means if you’re single, and you make $200,000 or you’re married and your household income was $300,000, you’re accredited. Maybe you don’t qualify that way. Maybe you have a net worth of $1 million or more, not counting the home you live in. That makes you accredited also. You have two ways to qualify, but these groups are going to be for those, for the most part, who are not accredited, but they have capital in which they would like to invest in notes. One of the things we’re going to do is we’re going to take a bunch of money, and let’s say there’s $1 million in the group. There’s going to be a preferred return. It’s going to be just like the note fund, just like accredited investors get, it will be 8%. That means you put your money and say you put $100,000 in. Every year, you’ll get $8,000. Of that $1 million that was collectively put into the group, we’ll buy somewhere between roughly $1.4 million to $2 million in notes. These will be re-performing notes and they will be exclusively first position re-performing notes. What will happen is those notes will make roughly in the range of 10% to 15% cash on cash, so let’s just use 12%. That $1 million will generate $120,000 a year. You get 8%. That’s your return. Over and above 10%, BawldGuy Inc. will retain that for their share. Everything between the 8% and the 10%, the investors get. In this example, it’s making 12% a year. The $1 million will generate $100,000 a year, 10% cash on cash, to the group, per their ratio of investment. When it paid off, and let’s say we bought $1.5 million, now they’re going to pay off all over the place time-wise. Let’s just say they all paid off at once, which believe me is never going to happen, but if it did, there would be roughly $500,000, it would be less than that because of some principal payback, but for the math, let’s say $500,000. At $500,000, the group would get $250,000, my firm would get $250,000, and that means that let’s say it took 5 years. In 5 years, the $1 million would have generated $500,000 payments and $250,000 in pretax profits. If you look at it that way, in 5 years, they’ve put in a million and they pulled out one and three quarters million. That works for most people, and the reason I say it’s probably going to be for people who are not accredited investors is that they’re not allowed by the FCC regulations to invest in the BawldGuy note file, which essentially will have the same setup except for in return for me running everything, I’ll be taking some of the cash flow and my firm will be taking some of the profits. In the meantime, what you need to look at is what would you be comparing this return to, and what would you be comparing this risk to? Right now, CDs are, if they’re overpaying, they’re doing 1%. Most of the people I know are getting 0.8%. Let’s say you’re making 1%. Well the preferred return on this is 8 times that. You win there. Then you have a built in profit. There’s going to be foreclosures here and there, and that’s where you have the convenience factor.