Private Placements and Funds

Tangible Wealth Solutions believes alternative investments in real estate can serve to be an important part of an investor’s portfolio. Alternative investments can offer diversification while potentially decreasing overall investment portfolio risk. Investing in alternative investments in real estate can be accomplished through investing in Private Placements or Funds.

What are Private Placements?

Private placements in real estate are investment opportunities that are not available through public markets like a stock exchange.
Instead of buying a property directly and owning a deeded interest in the real estate, securitized interest can be purchased and owned under an entity which owns the property or portfolio of properties.
Private placements are put together by a sponsor which is made up of real estate professionals that form the entity and design, execute, and manage the investment strategy of the private placement.
The investor relies on the expertise of the sponsor to make decisions and manage the investments inside of the private placement. Investors receive passive income using a hands-off approach in their real estate investment portfolio.
The detailed information about the private placement can be found in the Private Placement Memorandum (PPM) or Offering Memorandum provided by the sponsor.

What are the Benefits of Private Placements?

Investors can leverage the expertise of the sponsors to carry out investment strategies that are beyond the scope and/or capacity of the individual investor.
Investors do not have any management responsibility and the investment creates truly passive income.
Investments in Private Placements require minimal time commitment from the investor compared to direct ownership or investment in properties.
Investors get diversification by owning a portion of a larger asset or portfolio of assets that they most likely could not own by themselves.
Non-recourse financing: Within most private placements, if debt is used, the sponsor will be responsible for sourcing the debt. This debt is usually non-recourse to the investors which means the investors do not need to provide a personal guaranty for the debt within the investment.

How Does Tangible Wealth Solutions LLC help with investing in Private Placements?

Tangible Wealth Solutions LLC maintains a relationship with Emerson Equity LLC who proactively identifies and underwrites PPMs and Offering Memorandums.
Provides clients with a menu of investment options to choose from.
Advises clients on which private placements are best suited for clients based on several factors including risk tolerance, financial capacity, liquidity needs and long-term goals.
Offers proprietary offerings to clients that are not available on other investment platforms.

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Not an offer to buy, nor a solicitation to sell securities. All investing involves risk. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided on this site has been prepared from sources believed to be reliable, but is not guaranteed by Tangible Wealth Solutions or Colorado Financial Corporation and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for informational purposes only and does not constitute a recommendation.

Securities offered through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.

1031 Risk Disclosure:

There is no guarantee that any strategy will be successful or achieve investment objectives;
Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
Potential for foreclosure – All financed real estate investments have potential for foreclosure;
Liquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits