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. 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. These are people that have access to these wholesale investments and would be able to get you into them. There are different protocols to follow when getting into these different types of wholesale investments. Standard documents before even discussing any particulars are:
1. Non-Solicitation Agreement- This basically states that you were not solicited and that you will not go out and solicit for business.
2. NCND (Non-Circumvent & Non-Disclosure)- States that you will not go around your intermediary and that you will not disclose the confidential information.
By submitting these documents, it will get you in the door. After that, there are some compliance departments that will look further into your background and make sure that the funds you have available were not made by any illegal activity and that you do not have ties to people with questionable backgrounds . Remember that these investments are reserved for the best of the best and that if you are fortunate enough to be a part of them, you have to abide and play by the rules.
Some cautions to wrap this up. Believe it or not, there are many individuals that say they have access to these wholesale investments but don't. Sticking to the following guidelines will keep your funds safe and out of harm's way.
1. Never wire your funds anywhere! A lot of dishonest intermediaries try to get you to wire funds to them; they then enter into these wholesale investments, and keep the majority of the returns only giving the actual investor a small portion of them. The only exception is for managed funds. Even then, ask for references for the fund, track records, and a contractual guarantee of returns. Any legitimate managed fund should be able to provide this upon request.
2. Have your lawyer review any contracts! A lot of these wholesale investments are contract driven. This is very good as it provides contractual guarantees. With that being said, you need to have an attorney that understands what you are doing and what sort of program you are getting into. Most of the time, nothing is negotiable in these types of investments. It is an all or nothing type of investment. You still should know what you're getting into by having competent legal counsel to lay it out for you. Also, you should only deal with intermediaries that encourage you to do this. At the least, they should not have a problem with it.
With all that being said, I hope that this report was insightful. Remember that the really neat thing about the contract driven investment, which most of the wholesale investments are, is that you have absolutely no risk and no commitment until those contracts are signed. Nobody makes any money until the contracts are reviewed and signed. Anybody trying to get you to do something else, probably does not have your best interested at heart. If you stick to the guidelines above, it will keep you away from most of the dangers associated with dishonest and unethical people that are out there. Just make sure that you understand that there are great investments out there that are not available to the general public. You just have to find the right people that are "in the know" and have access!
Ryan Drachenberg, President
TSS Investment Group Inc
tssprivateplacement@gmail.com
407-341-1162
http://tssprivateplacement.wordpress.com/
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