You are probably familiar with mutual funds. A mutual fund pools together peoples money to buy hundreds and hundreds of stocks all at the same time. The benefit is a professional manager running the fund, making sure the pool of money is in the right investments, with no management on the part of the investor (it's done for you, the managers fo the fund do it), spread risks, and a higher return (you hope).
The result is usually a decent return, say around 7-10% on average, and a capital gains tax you need to pay once you sell your shares in the mutual fund. Of course, some funds focus on certain niches, and some funds are tax-free bond funds.
But what if we told you of an investment with all of the same kind of attributes of a good mutual fund, BUT YOU COULD PREDICTABLY DOUBLE THE RETURN? Would that interest you? What if we could show you a way to invest your money, having it work overtime for you, professionally managed, giving you great tax savings (yep, you even save money on income taxes), AND you do not have to pay capital gains taxes when you sell – leaving Uncle Sam out of it!
In a nutshell, a large return, good monthly cash flow, zero capital gains taxes, AND no management on your part.
Do we have your attention yet? We hope so!
What we are going to show you will give you the real world ability to grow your wealth exponentially. It's like three to four investments wrapped up in one – all working together at the same time. Let us give you an example.
Let's say we buy 100 shares of Gateway Global Commercial Property Investment Fund at $1.00 per share. So we have $100.00 invested into our Commercial Property Investment Fund: $1.00 times 100 shares owned. Five years later, if the market was good, let's say that my $1.00 per share is now worth $1.50 per share. Our return on our money over the 5 years or a 10% annual return. Not too bad.
Now if we sell, we will obviously profit and have to pay capital gains taxes to Uncle Sam, not to mention some state taxes as well (depending on where you live). So, all that really happened here is that our investment appreciated and we paid capital gains taxes when it sold. This is purely an appreciation and capital gains type of investment. Our overall return will, in this example, after we pay taxes, be even less than 10% because we had to pay capital gains taxes once we sold our shares in this fund.
The problem is most investments are just like this in one way or another. You invest, profit a little, let your account increase a little, sell, and pay taxes.
Now, lets look at this mutual fund like you would with the Gateway Global Commercial Property Investment Fund – a pool of quality “heartland” commercial investment real estate property.
You put the same amount of money ($100.00) in the Gateway Global Commercial Property Investment Fund AND you finance part of it, too. So, let's say you put $100.00 into the fund but borrow another $100.00. So now you have purchased 200 shares of Gateway Global Commercial Property Investment Fund (200 times $1.00 per share), but you still have only $100.00 of your own money in it because the other $100.00 was borrowed.
You now control double the shares, 200, with the same amount of money out of your pocket, $100.00. Remember the other $100.00 is the banks money, not yours.
So now, you own twice the fund shares for the same investment out of pocket.
Now, lets say while you own this stock, it appreciates at the same rate as before, 10% per annum for five years. In five years, Gateway Global Commercial Property Investment Fund is worth $1.50 per share.
But over the five years, let's say that Gateway Global Commercial Property Investment Fund had so much cash flow coming to you monthly that you were capable of paying back the $100.00 you borrowed from the bank. So not only is the fund appreciating and paying you cash flow – at the same time it was also paying off your additional $100.00 of debt you used to buy more stock.
On top of that, when you file your tax return, Uncle Sam is going to give you some nice large tax breaks for owning Gateway Global Commercial Property Investment Fund. These tax breaks will reduce the income generated by our Commercial Property Investment Fund. Even though you are profiting every year from our Investment Fund in the form of nice monthly cash flow checks, you can use legal tax saving strategies to show a loss from Gateway Global's fund. The good news is that you can do this even though it made money year after year.
Lastly, when it comes time to sell your interest in Gateway Globals Investment Fund, Uncle Sam decides to give you a break. He tells you that when you sell Gateway Global's Investment Fund, you do not have to pay any capital gains taxes. You can sell, keep your profit and legally defer any capital gains taxes.
Also remember, after all of this you have a pretty predictable income stream coming in month after month, no management, an exponential rate of return if you choose no capital gains taxes, AND you own double the shares.
Now which investment would you rather take if you had to choose?
We hope it's obvious to you.
That is how commercial real estate investment works in Gateway Global's world. When investors pool their money with us to purchase good commercial investment property, it blows away most other investments. See Figure 1. We hope our stock analogy brings this home for you. Can you see how this type fo investment can exponentially grow your wealth vs. the traditional way?
A TYPICAL COMMERCIAL REAL ESTATE INVESTMENT PROPERTY
123 ABC Street Apartments
1. Purchase price paid: $750,000.00.
2. Investment: $150,000.00.
3. Financed by lender: $600,000.00.
4. Monthly payments to lender:
$4,473.00 per month x 12 =
$53,681 per year
5. Income from property: $125,000.00.
6. Expenses: $48,000.00.
7. Net income from property: $77,000.00
8. Cash Flow:
$77,000.00 Net Income
$53,681.00 Less annual financing
$23,319.00 Annual cash flow
9. Cash return on $150,000.00:
$23,319.00 + $150,000.00 = 15%
10. Principal loan reduction (paid by tenants): $7,222.00
11. Appreciation: 2% or $15,000.00
$23,318.00 Cash Flow
+$7,222.00 Principal reduction
$45,540.00 Total cash flow or a 30.36% total cash flow/return
Most people reading our investment offering have probably heard of or have a friend involved in owning some type of investment real estate. If you are one that has never been an investment real estate owner, it is probably because of:
1. Your age or family status.
2. Your lack of knowledge that makes you uncomfortable about owning and investing in commercial real estate. You do not really totally understand the great benefits along with the cash flow you would receive. So you put it off.
3. Lack of time. This is the biggie. Not enough time to really sit down, research, and educate yourself about the possibilities of commercial investment real estate.
4. You think it may be risky.
5. Maybe you haven't had that much interest until now.
6. You thinkother investments are much better (stocks, bonds, single-family homes, etc.)
Well, the process of being an owner, a profitable owner, mind you, can be an easy and hassle-free experience when you work with the Gateway Global Commercial Property Investment Fund. There is really no need to let any of these obstacles get in your way. For example, our customers and clients are surprised at how easy it is working with us and how much is really done for them. The best part is getting all of the benefits of great investment real estate without having to commit to being a commercial investment real estate expert. The leverage of time and money here is huge. But you still get all the same benefits of owning the property as if you were managing the property day in and day out! The property is working for you while you sleep, while you are working or while you are goofing off – and throwing off great cash flow and tax savings, and appreciating all at once. What else is better than that?
This is why one of the best kept investment secrets out there today is the private investment opportunity of the Gateway Global Commercial Investment Fund.
By being involved in a private fund, you literally have your cake and eat it, too. Not only do you have a great investment working overtime for you and giving you quantum results, you also have an expert overseeing the fund and properties with no personal time of yours in it at all! You literally become an Active Owner of Great Cash Flow Investment Real Estate While Not Being Active in the Day-to-Day Management Functions, Etc. You simply get a cash flow check once a month (if that is what you like) and a report detailing what happened in the prior month.
The Gateway Global Commercial Property Investment Fund is an actual private real estate investment fund that works just like the mutual fund you looked at in the Figure 1 purpose earlier. One of the best kept secrets in the entire financial world is this kind of professionally managed, private real estate fund. As an Investor in such a fund, you get all the same benefits as an investor would with a single property, like the 123 ABC Street Apartments example, but you have your risk spread over a group of properties and you are not liable for any debt!
By being involved in this type of innovative fund, you literally can have your cake and eat it too! You become an active owner of great real estate investments, with the cash flow and tax benefits of active ownership, yet you still have no involvement in day-to-day property management and no debt liability. You get a check and a report every month.
If this sounds like your kind of investment, please feel free to contact us anytime!