Global Enterprises Trust assist many businesses in determining and establishing the framework that is essential for achieving success, control, tax avoidance and protection. The primary goal is to maintain integrity between investors that have pooled their resources for investments and protecting those investments.
The last thing that is needed is for values to diminish after an investment is made. No one is interested in bringing parties to the table that cause dilution of hard earned investment dollars. Therefore, vehicles and buy/sale arrangements have to be planned and thought out long before anything occurs that will cause values to lower because investments are sold as a distressed item and not as a valued commodity.
Criteria for acceptable parties must be established for those invited to participate in an investment pool. The initial criteria is the investment vehicle is going to be an S Corporation. Therefore everyone should sign stock purchase agreements that will stipulate that stock will be purchased by investors that are invited to invest and held for a period of time before any buy sale action will be valid or activated.
The only reason for not adhering to this agreement is termination for cause such as malfeasance, fraud, violations of fiduciary responsibility for active parties of the corporation, or eminent default of a return to investors of their initial capital. The only calculable termination is eminent default which would result from making a bad investment outside of the established investment criteria or unforeseen market conditions that are beyond any of the parties control that causes the asset purchased to lose value and not be sold for at least investment cost.
Each investor in this case should have disbursement of profit to a simple LLC which will allow schedule C reporting of expenses related to meetings, travel, investing that is direct to the investor. Any investment into the LLC that purchases equipment etc., offers depreciation and on investment by the LLC into other organizations can be capitalized and amortized. A lot of flexibility here.
Investors seeking a Trust, a ROB, a self directed IRA disbursement into a ROB C Corp should raise their hand for the structure request for these vehicles. Each one has tax advantages and limitations depending what is to be achieved with the particular investment program.
Buy/Sale agreements should be signed by each investor as well as an affidavit stating that each investor is qualified to invest funds that the investment of these funds present no hardship to their existing financial position. An investment criteria should be signed and any investments made outside of this criteria be done by corporate resolution that is provided as a result of quorum vote. Voting should be authorized to occur via conference call, Skype conference, or teleconference.
Investment criteria will be based on property purchased at 50% below market and resold at a minimum of 65% of value as is or 85% of value ARV. A minimum of one investment using 70% of funds should be turned over per quarter to turnover 100% of funds semi annually. In a perfect world, the funds would turnover every 90 days and be readily available for reinvestment.
Investment estimated profit and loss will be provided upon investment inception disclosing details such as subject property address, interior and exterior pictures of the property, assumed value based on comps and research, cost of renovation with quotes and job cost reports (if required), potential buyers and/or tenants, life cycle of the project and proof of prequalification or lease, disclosure of how property will be titled, Trust, LLC or Company.
Upon purchase, sale, lease and/or renovation completion and sale. HUD 1 will provided to the parties with a full accounting of revenues and expenses. A summary of overall project any variances report good, bad or indifferent.
Funds will be disbursed according to corporate resolution, individual direction and or agreement. Investment Management provided by Global Enterprises Trust. Accounting services provided by Global Enterprises' Trust agent Chet Jones. Real Estate and Tax Deed Acquisition and Sale provided by Michael Scott. Wholesale properties provided by Unity Investment Group. Call 888-753-2521 for more information or email me at chet.thecontroller@gmail.com
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