Explained: The Income Fund (6/12)

Hey, everyone. Danielyn here with Freedom Family Investments. In this video, we're going to be talking to you about our Income Fund. I encourage you to stay on till the end because we'll be sharing with you some real investors who have been working with us and sharing their stories with you. Hi, everybody. Danielyn here with Freedom Family Investments. And in this video, I'm going to be talking to you about our Income Fund. So Income Fund is a fund that we raise capital into and it has various uses. The ppm, which is a private placement memorandum, is going to tell you all of the uses that we have for the fund. Right now, at the filming of this video, we actually are getting ready to close down one of our funds and open up another one. So as you learn about this one, if you're interested in it, you're going to want to talk to our investor relations team, and they can let you know if this one is ready to go. But the new one is what I'm about to talk about. So the return in this particular Income fund is wide in range because we are giving different opportunities to investors based on their goals, amount of capital, and how much they would like to keep liquid versus long term. So the return on this is going to be anywhere from 6 to 14%. Okay. The length of time is going to be anywhere from one to, I'm going to say, five years. But there's a possibility that we may extend to 10 years for some investors who really want the highest rate of return for the longest length of time, amount earned. So let's just say that you have $100,000 in this fund at 10% for three years. So if you have $100,000 at 10% and you held it in here for three years during that time, the simple return is going to say that you made $30,000. That disbursement is going to be paid out to you quarterly. So every single quarter for three years, you would have received $2,500. Do you need to be accredited in this new fund that we are launching? The answer is yes. What does accredited mean? It means if you are individual. If you are an individual, you need to make $200,000 a year or more this year and you expect to do the same next year. If you're a married couple, you need to make $300,000 a year this year and you expect to do the same next year. Many times we're asked the definition of an accredited investor or what is the difference between an accredited investor versus a sophisticated investor, because the SEC can change their guidelines at any given time. We are going to post a screenshot of the current guidelines as of the recording of this video, but we encourage you to go to the SEC's website and check the current guidelines as of the time you are watching this video. One quick tip is to make sure that you are looking for more than just the financial requirements. Being accredited means that you are open to many more investment opportunities. And one way to achieve accredited status is not the financial requirements, but it's simply to pass a test. So check for licensing, check for LLC requirements or any other additional guidelines that the SEC has provided. Or in either case you need to have $1 million in net worth minus your primary residence. So if that is true for you, that means you are accredited and that means this opportunity is available to you. If you have any questions on that, make sure that you ask our team. Sometimes we do have funds that are available for non accredited or sophisticated investors. Again, ask our team if we have anything available if you are not accredited. Because we do have private money lending, we do have turnkey real estate, we do have master notes, all of which are for non accredited and sophisticated investors. We also sometimes have income funds that are for non accredited or sophisticated investors. So it just matters as to when you're calling as to what we have available. So make sure you ask our team. Does this particular fund have compounding available? Yes, we are planning on it because it's so popular. When we have compounding available, it seems as if over 50% of our investors are choosing this option. What is it backed by? This particular income fund that we are getting ready to launch is going to be backed by real estate and or real estate businesses. So this fund is very much being created similar to our very popular masternote program. We have a lot of investors who appreciate the higher returns and the flexibility. They want to invest in our growth. And so this particular fund is going to allow investors to again do the same and it's going to increase the rate of return they can get in this fund as opposed to masternodes simply because it's going to be a longer term likely five years to 10 years, as opposed to the liquidity of a mass note program where you can actually get your funds back in the year that you you get that you choose. So because of that it's going to give a little bit of a higher return than the masternote program. So let's just talk about compounding. If you invested $100,000 and you wanted to compound the interest instead of getting quarterly disbursements instead of $30,000. And we're just saying $100,000 invested for three years. If you chose compounding, then you would have received 34,489. So an additional $4,489 simply because you chose to compound instead of receiving quarterly disbursement. Okay, now let's give an example. Let's just say that you are an investor that chose five years and that meant that you were at the highest rate of return, which was 14%. Simple interest would be on that $70,000 for $100,000 investment. So you invest on $100,000. You said, I choose to stay in there for five years so that you could get the highest return, which is 14%. That means you're making $70,000 in that five year time. So if you chose disbursements, then you're going to get quarterly returns back into your account. But if you chose compounding instead, that means that $70,000 now turned into $98,979, an extra $29,000 that you received simply because you compounded it at a high interest rate of return and left it alone. So that is absolutely incredible. So on this income fund example, let's see, does it give you cash flow if you choose disbursements, quarterly disbursements and not compounding? Absolutely. It's going to give you cash flow. Does it have diversification? Yes. Because we are using this fund for both real estate and real estate businesses. So private equity, whenever you invest in a real estate business, it's called private equity. Is it passive? Yes, 100% passive. You do not have to do anything other than read the documents, make sure that you understand them, ask all the questions, choose to invest. Does it allow for compounding? It absolutely does. And for the sake of the liquidity question, anytime you have an investment opportunity that allows you to invest for one year and get your capital back plus your rate of return, then I call this yes, liquid. Because most people who are looking for liquidity when it comes to real estate investing are simply wanting something that's 12 months or less. So this fund does have the option for one year. So I'm going to say yes to liquid. So great opportunity again, in this particular one that we're getting ready to launch, you do have to be accredited, but we may have non accredited options available, like I said, like private money lending, Masternotes, Turnkey real estate. So these videos are meant to educate you about the different types of investment opportunities we have available so that you can go to ChatWithFreedom.com and contact our investor relations team to ask them any questions that you have. There's never any obligation. We just love creating and building these relationships so that we can help you on your road to financial freedom. We are an open book. We are very transparent about everything that we do. We are here to help us all create a win win. Flip and I are on our own freedom journey and we are excited that we are able to achieve our freedom through real estate businesses and through real estate itself. And now we want to help you do the same. So again, if you'd like to learn more, go to chatwithfreedom.com, scroll down to our investor relations team, jump on one of their calendars and they will reach out to you and we can start the conversation. Thanks so much. See you in the next video. Well, I hope you enjoyed the video. Now it's time to get real. We're going to share with you some stories from real investors who are going to share their experiences with you so that these examples can, can come to life.

Everything's exactly as we thought. We got the money in the bank, the account's grown. And so that was, that was very exciting for us. And so now we still have a combination of syndications and masternode and debt fund that we went in. It's the consistency and the predictability of it. And it is for us, I think we, we have become very focused on the end game and the end game for everybody is passive income. If there's one important thing that I could say that would really impact everybody watching this passive income, what happens when you no longer want to work or you no longer can work? The amount of passive income that you have will directly affect your lifestyle in most people in our country. A lot of people make good money. They work all their lives, have great careers, but when they retire, their active income takes a hit.

Yes.

And they start to have Social Security as a starting point, you have some other investments, might have some income, etc. Maybe you've got some rentals that will help in too. But that total passive income is going to determine whether you continue to live well or whether you have to start to scale back your income, your lifestyle a little bit on that. So I think that's the major points that this has. If I could, I guess in summary, I would say that the opportunities that we're taking advantage of with freedom has accelerated our retirement plans. And so we're still going to be working hard, full pedal to the metal for the next few years, but it is, we're building a plan and we're very thankful for this, that we know nine years from now, which is what our particular target is, that we're going to have as much or more active income than we are enjoying right now and working. And we're doing well. We're very blessed. So again, that's what I recommend for everyone else. Think about the end game. And a little bit now, a little bit now can mean a lot of active income. 10 years, 15 years, 20 years from now.

We did our private money loan. We got our money back. At that point we had a huge waiting list of private lenders. And he was like, okay, yeah, let's, you know, yeah, I liked doing that. Let's do it again. And at that point, you know, the fund had been up and running, I think six months, and we just kind of were like, I don't know, like it'd be locked up for a few years and that's a lot. And, and so I, I basically kind of brought that to you. Like, how would you feel comfortable, would you feel comfortable doing this?

I just considered it with the fact that it would be these, I guess, semi annual payouts, you know, better than one lump sump. In the end, it was every six months. You know, it would just go right into the account. Don't have to fool with anything. Don't have to sign a release, don't have to worry about getting a release recorded or anything like that. It's just you put the money in one time and then you get paid out. I mean, it's, you paid out the interest, you don't have to, you just sit back and collect the interest. You don't have to fool with, you know, worrying about following up with mortgages or notes or anything of that, foreclosures, anything like that. It's just you wire to you and then you guys wire as the interest and if we need to cash out, then we can cash out. You know, it's not no big deal. It's, it's surprisingly easy and convenient, actually. It's awesome.