Friday, November 17, 2017

How to Invest for Recession-Proof Cash Flow Before the Next Downturn

How To Invest for Recession-Proof Cash Flow Before the Economy Changes with Mauricio Rauld

Mauricio Rauld knows that there absolutely will be a downturn. The question isn’t if, it’s when and how severe.

He studies markets and says that there is always a cycle. The current boom has been going on for way too long, and as a downturn happens on average every seven years, we could be due one soon.

Mauricio’s company Four Peaks Capital Partners have spent 12-18 months building out an acquisition team to focus on sourcing incredible deals in alternative assets.

Their main focus is mobile home parks, a market which has potential to make huge returns due to the boom in the economy. Their partners, Ryan being one of them, make a predictable cash flow every month from investing in the opportunity.

Mobile home parks are an asset class which provides great value and are recession-proof because they’re at the lower end of the spectrum. In an economy correction, everyone gets pushed down but at the bottom, there’s nowhere else to go.

This alternative investment will give returns whether the market is up or down, which is why they can give good returns for investors.

Affordable housing is in high demand and short supply, and the number of demands is increasing. Rent and mortgage prices are going up with the boom, which is squeezing the middle classes so they have to move down.

A passive, predictable cash flow for partner investors

All investors who get involved with Four Peaks Capital Partners are completely passive. That means there is no work or decision making involved, allowing all partners to focus their time on growing their businesses whilst making a predictable cash flow.

You do your due diligence, invest in a deal alongside other people, and receive a monthly cheque.

There’s plenty of cash to go round in the fund, which makes them able to pay out a predictable rate of return.

Mauricio focuses on acquiring distressed properties as he has a construction and property maintenance company. Their current owners don’t have the capital to invest in them, so they turn parks around quickly to increase their value.

Decreasing the tax burden for investors

Real estate is one of the better vehicles for reducing an investor’s tax burden. In a syndicate or a fund, tax benefits are passed to investors as they are partners and not debtors.

The funds are set up as equity, not as a loan. This makes all investors a co-owner to the mobile home parks Four Peaks Capital Partners have.

By being able to depreciate the value and claim you’re losing value from a tax perspective, $10,000 can show as $6,000 on paper.

Connect with Mauricio

Check out Four Peaks Capital Partners to take the first step toward generating a huge passive income: https://www.fourpeakspartners.com/

Maurico on Twitter

Connect with Ryan

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