GROWTH EQUITY GROUP
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“We make land-lording sim- ple and virtually hassle-free,” said Preston Despenas, senior partner and co-founder of Growth Equity Group. “Due to the quality tenants already placed within each unit sold, our turn-key properties produce cash-flow from day one - and we can ensure that promise with our new Rental Assurance Program.” The Rental Assurance Program safeguards Growth Equity Group clients for up to 12 months on newly purchased properties. The program ensures cash flow by paying the investor any lost rental income that resulted in tenant default or vacancy. As part of the GEG Solution - a full suite of services including inventory, financing, and property management - the Rental Assurance Program is available immediately at no cost for individual investors who purchase income properties from Growth Equity Group. All invento- ry has pre-approved non-recourse financing and comes with rental assurance protection, as well as GEG Manager, a free online property management tool, and self-directed investing support through Equity IRA free-of-charge. THE REAL RATE THREAT A frothy stock market, roller- coaster oil prices, and higher taxes are just the tip of the iceberg when it comes to issues battering investors today. Still, Growth Equity Group’s Senior Partner Brett T. Immel says none of these risks compares to the threat of rising rates, and is adamant that interest rates will go up. Unfortunately, the vast majority of individuals continue to seriously underestimate the impact of higher interest rates on their investment portfolios, which in turn will very
haven’t been kind either. According to many of the clients, which have reached out to Growth Equity Group it no longer matters if you have been banking with the same institution for decades, or have been depositing mil- lions each year. Individuals are still suffering from poor customer service. The big question is – where can investors find an efficient solution for investing in income producing real estate safely, and get access to attrac- tive long term leverage that enables them to fully capitalize on the current market, and lock in the best spreads? Self-directed IRAs (SDIRAs) have become increasingly popular in recent years as individuals look to take charge of their retirement with al- ternative investments beyond stocks, bonds and mutual funds. Senior Partner, Preston Despenas, in their retirement (see right) . Why should you be interested? If you are interested in expanding your investment options for retirement, adding income producing real estate to a self-directed IRA is a terrific option to diversify your traditional portfolio of stocks, bonds and mu- tual funds. While other alternatives are available, many hard assets come with increased risk and volatility. Unlike those alternatives, real estate has the potential to protect your portfolio against inflation. Like oth- er IRAs, the SDIRA offers tax-de- ferred or tax-free growth of your earnings. This means, your return has the ability to compound more quickly, and again increases your return on investment. explains why Growth Equity Group’s inven- tory gives the investor the best possible op- tions for leverage and growing their wealth
much affect their day-to-day lives. Whether it’s in 6 months or 18 months, Preston Despenas warns that, “rising rates will impact all businesses from mom and pop shops to large institutions, and Fortune 500 companies. In turn this will obvious- ly hit the wallets of everyone. How- ever, perhaps most significantly of all, it will be a blow to the yields and cash flow of investors who drag their feet in restructuring portfolios and locking in the most attractive spreads on income-producing real estate”. Alleviating that risk is something that traditional investors constant- ly scratch their heads over or they simply accept the returns that they generate in the stock market without weighing the options. The simple
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fact is self-directing in alternative assets isn’t a strategy most individu- als are aware of because banks and brokers neglect to tell them.
FOR EXAMPLE On $250,000 of leverage,
if rates rise to 8% investors would lose almost $500 per month in cash flow, and would pay almost $200,000 more in interest alone over a 30 year loan compared to a 5% rate today. Multiply this by 5 properties, and factor in rising asset prices, and this is a million-dollar mistake that investors will be kicking themselves for years to come.
IN SEARCH OF BETTER INVESTMENTS
The need to switch portfolio hold- ings is clear, but many investors have allowed themselves to be held back by uncertainty and wanting to ensure they make the perfect investment, all while trying to find the time. Banks
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