Updated: Jun 20
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 (we are one) and Commercial Banks. The goal is to use whatever resources are available to leverage 100% of the value. 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 creating Value for each Fund and Investor. This part of our Process technically includes the buying 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 will 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. 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. This is the reason we offer terms that are pretty crazy.
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 you need to somehow receive a 1st position Note and Deed on the subject property whether is’s possible or not. Unfortunately, this isn’t even an option most of the time because the banks take that position. We then get the idea that if someone puts some amount around 30-40% down then we can get our coveted 1st position note & deed. I had a lady insist she get a 1st position note on the 20% she was willing to carry after I got a loan from the bank. That is the extreme of course but it has the same effect.
It kills every deal. The only good thing to come from trying to do these types of deals for decades (I’m an optimist) is the problem has become crystal clear and so I’ve used that clarity to design a much much better alternative to insisting on something that has a Major Flaw in the thinking. I’ll name a few benefits or actually reiterate. What I call ‘Dead Equity’ can be put to work instead of laying there, well dead. We provide multiple types of security and with these opportunities come an Investment plan that is aggressive to the point that people say ‘ It sounds too good to be true’. I don’t mind if people think it and then research us to find a flaw. I do mind when people shut down because a misunderstanding has triggered some past teaching or experience that doesn’t actually apply here.
We Secure your Equity with Stock in the New LLC, Insurance on the Equity, meaning our Investors receive much more in return & the Security of being in Contract w/ an Insurance Carrier. We believe this is far superior to insisting on a Note & Deed secured by an individual property (I have to say that a 1st position note and deed are possible in some cases, just to confuse the issue. There is another Instrument that can be used for Deed Security called the Master Lease which allows the Seller Legal Interest and the ‘buyer’ Equitable Interest:) Plus, when you own stock in the New LLC it is owned by the overall Fund which is just another layer of security since there is much more of the same in the ‘mother’ Fund that owns the New LLC. I know this is complicated and drawn out. We really hope you take what we’re trying to communicate to heart and realize we are literally providing more security than is really necessary but we take the problem of losing family money seriously. Those that have lost significant equity buying things like publicly traded Stock or should I say ‘securing their assets’ by buying a technically insecure investment like Stock I hope will appreciate what we’re trying to do for them. We offer Safe, Guaranteed Tax-Free growth on/for your Equity.
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. We need Time to accomplish some of our strategies. 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