scott ferguson alternative funding briefing
TRANSCRIPT
Scott FergusonMillennial Capital ManagementEmail: [email protected]: 480-331-1379www.MillennialCapitalManagement.com
Alternative Investment Experts
‘Secrets of Raising Cash’
What is Alternative Financing/Investing?
Highly Regulated
Bonds
Rigid
One Size Fits All
Volatile
UninsuredU
NFA
IR
FAST
Wall Street
Frus
trat
ing
Reta
il
Har
d
InconsistentComplicatedCD’s
BrokersPublicZero Sum Game
Competitive
Risky
Fees
StocksBanks
4Investment
Types
Growth• Stocks• Mutual Funds• ETF’s
7
Income Income
Growth
Investing Simplified
Wall Street / Bank Alternative
$
#• CD’s• Bonds• Savings Accounts• Annuities
• Real Estate• Metals• Collectibles• Private Equity
• Private Lending• Factoring• Oil/Gas• Real Estate
Bond Private Lending
Borrower Sets the termsIn a default, bond is worthlessNo collateralNo InsuranceNo ControlGuarantee depending on issuerAs value goes up income goes down
Lender sets the termsIn a default, property is worth the sameExcess collateralProperty/Collateral is InsuredLender has ControlCollateral and Insurance guaranteeAs value goes up income remains same
What is the fastest way to make a Bond more risky?
#Bond vs. Private Lending
Small Cap14%
Large Cap29%International
14%
Index Fund14%
Bond Fund7%
Growth Mutual
Fund14%
Emerging Market Funds 7%
Traditional Thinking
4Investment
Types
Growth• Stocks• Mutual Funds• ETF’s
7
Income Income
Growth
Wall Street / Bank Alternative
$
#• CD’s• Bonds• Savings Accounts• Annuities
• Real Estate• Metals• Collectibles• Private Equity
• Private Lending• Factoring• Oil/Gas• Real Estate
Lack of Diversification
A Better Way
Full Value of Home $500,000
Our Investment $325,000 or 65% LTV
Why is it Safe?• Principle 100% Insured • No Tenant liability• Sell at a discount without
out sacrificing principle• Low Price Volatility• Down Side Price
Protection35% Protective Equity$175,000 “Cushion”
1
2
3
4
5
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%
0.10%
0.50%
3.0%-4.0%
3.15%
8%-12%Private Lending
Bonds
Dividend Paying Stocks
CD’s
Savings
Compare Performance
Trait Savings CD Dividend Stocks
Bonds Stocks Real Estate
Private Lending
Sufficient Income No No No No No Possibly Yes
Principle Guaranteed Yes Yes No Yes* No No Yes*
Downside Principle Protection
Yes Yes No No No No Yes
Keeps up with Inflation
No No No No Possibly Possibly Yes
Growth No No Possibly No Yes Yes Yes*Works with OPM No No No No Possibly Yes Yes
Investment Vehicle Traits
What do the Wealthy Do?
Top Reasons• Diversification• Protecting Principle• Better Returns
Focus on Income over Growth
Most Successful Business Model in History
Banking
Scott FergusonMillennial Capital ManagementEmail: [email protected]: 480-331-1379www.MillennialCapitalManagement.com
Alternative Investment Experts
Questions