Updated: Aug 6, 2020
We are a Private Equity Firm creating multiple Funds. In the past these firms were called LBO Funds (leveraged buyout funds). To leverage in this context means we use Seller equity, Private Investor money and debt from multiple sources like Hard Money Lenders and Commercial Banks. The goal is to use whatever resources are available to leverage 100% of the value. This is not the same as borrowing 100% of the equity. This is common and standard for this type of firm.
With our goal of 100% leverage in mind I’d like to explain how we have added some unique parts to create Our process. We like to call this our own Private Equity Investment Banc.
We are also Insurance Brokers. We use the Infinite Banking Concept as foundational thinking to create Value for each Fund, Master Llc and/or Investor. This part of our Process includes the buying & leveraging of Insurance Contracts. The result of this process is the creation of tax-free funds, liquidity and a lot of flexibility. This Process is our First Priority. By-products of this process, if you will, are Life Insurance Policies, Interest, liquidity and a real tangible Insuring of projects & Investors & Investor equity. We Design this Insurance for every Project and Individual Investor to protect and grow their Equity. This process can also provide Safety, no Risk of loss and aggressive tax-free growth. I like to say ‘ if you'll just give us some time we can do some very awesome things.’
Why do we insist on doing an Exchange of Stock with a new LLC? The IRS allows this process as a tax-free transaction because it is not technically a sale. Once the Property &/or Business is put into the New LLC the New LLC becomes the entity on title and can do cash-out refinancing w/o seasoning. Our immediate goal is to monetize as much of the equity as possible to purchase Insurance Contracts as the first step of our process. 95% of this cash is available immediately after buying the Contracts so we prefer to get the clock ticking and start earning Interest on the money before we use it.
I want to address the biggest objection we have heard basically 99% of the time over the last 38 years of doing Real Estate and Lending. This is regarding the issue of Security. We’ve all been taught that we need to somehow receive a 1st position Note and Deed on the subject property whether it’s possible or not. Unfortunately, this isn’t an option most of the time because the Lenders take that position. Many people have the idea that if a buyer puts some amount like 20-40% down then the Seller can get the coveted 1st position note & deed. This is unrealistic. A reminder, we as a private equity firm have a history of using debt in the form of multiple lenders whether institutional or private. It is the leveraging of equities that enables us to continually grow the business. We do provide Security and much more than is normal but what we do is uncommon' to begin with.
Our goal is to help Individuals & Businesses Create Wealth. This is why we offer to purchase Businesses and Properties with the Structure that we do. We target a Niche Market of small to medium size Businesses and Properties. The more Time we're given to accomplish some of our strategies the exponentially better the results. We need to Monetize Equity to get our Processes started. If we can mix these 2 needs with some understanding and cooperation we will be able to do what we promise. We have simply combined a few different historically significant Investment Strategies which use Businesses, Real Estate and Insurance. Our hope is that you will give us the chance to design a strategy for you as an Investor that could grow your assets significantly.
SilverWind Capital Management Co. LLC