PPMMATH.COMBY NP ROSS

Partnership Selection

"All I want in life is a small unfair advantage."

Hank "Ace" Greenberg, former chairman of insurance giant AIG (NYSE:AIG), once said "All I want in life is a small unfair advantage." As it turns out, he had one - and it was a whopper.

Do you have one? Yes, you do. But you may not be aware of it.

Having the time, willingness, and ability to undertake complicated tax research and correctly applying it to your tax facts & circumstances is a true unfair advantage. Unfortunately, very few investors are able to pull it off. The good news is that you don't have to. We are "Planners", not "Reporters", and provide our clients with their own custom tax strategies.

Let's get started on your unfair advantage today, Be A Planner.

NP ROSS


Investors come to us for customized solutions to assist them to better understand and objectively analyze investment opportunities as they seek to achieve higher returns with their family's financial resources.

Real Estate Private Placements (REPPs), involving multi-family properties structured as private investment partnerships, represent a common asset class that our clients use to build wealth, especially their retirement wealth.

Complications

Unlike typical stock, bond or mutual fund investments, each partnership is a uniquely structured agreement between investors (passive or limited partners) and the manager of the business (syndicator, sponsor, lead partner, general partner).

The investor's share of the profits is defined by complex terms and conditions, and are often difficult to analyze. You must assess, not only the economic outlook for the industry and management's skill (as with stocks and bonds), but also the impact of the profit-sharing arrangements within the partnership.

Assessing the sponsor's management skills is more difficult for partnerships than it is for corporate investments. Required financial reporting is on a "historic cost" basis, which does not reflect the market value of the partnership's assets. Even where information is provided, meaningful industry-wide standards do not exist, which makes valid comparisons almost impossible. Learning and confirming how management has performed in prior partnerships is often no small task, and requires the investor to interpret and standardize dissimilar data.

NEVER forget that investing in real estate partnerships ultimately involves an act of faith in BOTH the business venture and the syndicator.

How do you make sure today's "good" investment won't be tomorrow's disaster?

A Solution

For most REPPS, the property(s) a syndicator plans to purchase will produce a relatively predictable pattern of cash flow distributions and potential gains.

There are many choices for investors who seek to participate in such partnerships, but how do you begin to separate the "wheat from the chaff", i.e. "a few kernels of wisdom amid something comparatively worthless" (via Merriam-Webster)? The analytical tools you will find here, as well as our paid consulting services, direct the focus to the "math" found in every PPM; pro-forma though it may be, that can be used to objectively compare alternative, prospective investment opportunities.

Partnership investment decisions are all too often made one-at-a-time, not with a view toward their overall impact on net worth, retirement goals, or the overall composition of the investor's assets. We feel that real estate investing is most productive when executed in the context of an investor's lifestyle INCLUDING their financial and estate planning requirements.

PPM MATH cuts through the emotional marketing hype that is almost always part of the investment platforms, mentor groups, and sponsor organizations that promote private placements so that you are able to save time and make objectively superior decisions.

READY? Then, let's get started.

NEXT STEP: THE BASICS (Reading a PPM)

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Located one mile west of Beltway 8 on the ground floor of the 11200 Westheimer, Suite 150 is just to the right of the elevator bank. This office serves as our headquarters where we undertake networking events along with the ongoing development of the INVESTOR'S MATH SERIES, a series of investor educational resources including this website and collateral materials, e.g. training and e-Books. Stay tuned.

INVESTOR'S MATH Series

Our first few MATH sites, training and e-Books are staged for release over the next few weeks. Sharpen analytical skills, save time and make better financial decisions.

  • 401 Math
  • Partner Math
  • Retirement Math
  • QDRO Math
  • WHOLESALER Math