Would You Promote This Product?

[JamesCoon]

We are designing a product that brokers can sell to clients and receive a commission on. I wanted to know what agents thought about this product and if they would promote it?

Clients benefits:
1. Earns a 7% annual rate of return for 10 years
2. Can receive a monthly check for principal & interest, interest only, or no monthly payments, but doubles their money in 10 years
3. Investment is secure by real estate
4. Clients may redeem investment after two years, without penalty, due to hardship.
5. Upon death of investor, beneficiary can decided to continue contract payouts in their name or redeem investment in full.

Agent/Broker benefits:
4% commission on any money invested in our program

This is really a safe investment geared to investors who want to make more money than banks are currently paying on C.D.'s, Money Market Accounts, and Savings Accounts.

This isn't meant to go into great detail of the program right now, but to find out what agents think about this. Is the interest rate enough? Is the commission enough? Please, let me know what you think and if you would like to be added to out Brokers list, so we can contact you when we get this up and running, please PM me.

(I put this in the annuity section because we don't have an "Investments Section". I also think we could use a "Real Estate" section too.) Have a great day!

I would never sell this. If this is an insurance product you better have good E&O.

 

[Freddie]

I would never sell this. If this is an insurance product you better have good E&O.

Looks more like a private REIT.

 

[HarryRenard]

Looks more like a private REIT.

Seems more like a made up "what if" to me, from someone who has limited to NO experience with investments.

 

[JoeInsGuy]

Man, I wish I knew how to post you tube vids. Perfect place for one showing some guy in a pimp hat doing the hustle.

If it smells like a fish, tastes like a fish, looks like a fish... then it must be crons...

 

[crons79]

If it smells like a fish, takes like a fish, looks like a fish... then it must be crons...

"takes like a fish" ???

Let me know when you have more than 6 posts.

 

[JoeInsGuy]

"takes like a fish" ???

Let me know when you have more than 6 posts.

Fair enough... but I know illegal activity when I see it... GL

 

[crons79]

No illegal activity here. I am not soliciting for funds (as stated earlier) and I have contacted the Pennsylvania Dept. of Securities and the SEC to find out the rules and guidelines about doing what we want to do.

 

[ChristianFSFP]

1. Is there tax deferral?
2. No, the commission is not enough.
3. What would the surrender period invlove?
4. What kind of real estate is this based on?
5. would this be an Real Estate IRA account???

 

[crons79]

1. No tax deferral. You get principal and interest back every month. (Note secured by Real Estate) We also can do an Interest only payment with a lump sum due at the end of the term (say 10 years). We were going to do one with no payments and let the money accrue, but to costly on our end and the client would still have to pay the taxes on interest earned even if they didn't receive the money.

2. What do you think a fair commission is? Most fixed interest annuities pay 2-4% comp.

3. Bread and butter is multi-units and clients money is 50%-60% LTV. We can also flip property and buy tax lien certificates. As long as the clients money is 100% backed by Real Estate we feel secure in borrowing, investing, and returning a nice profit to our clients.

4. We are not doing self directed IRA's yet, but probably will in the future.

 

[Freddie]

A fair commission is at least 5%. I would stay near 50% LTV or below that and you better be able to keep the properties 85% leased. You better be with people who are VERY experienced in running apts. Do they have a track record?

The better REITs can take run down or obsolete designs - refurb or renovate on the cheap and add LOTs of value. it is an art and a skill. They also buy the properties cheap cheap.

Be very careful. You may go into this with all the best intentions and plans but when people invest their money - your liability goes up exponentially. One person can screw the whole thing up.