Category: Investments

WHY YOU SHOULD NEVER INVEST IN A REIT

Real estate investment trusts, REITs, are a convenient way for inexperienced investors to gain exposure to real estate investing, especially for the first time. Modeled after mutual funds, publicly traded REITs purchase, own and manages real estate properties. REITs give individual investors the opportunity to invest in a portfolio of income-producing real estate. Investors do not need a large amount of time or resources to invest in REITs but for the smart, savvy investor, REITs should never be an option.

INDIRECT VS DIRECT INVESTING

Investing directly or indirectly in an asset class is crucial to maximizing returns while reducing fees and volatility in your portfolio.

Direct investing can be done on a variety of different levels. You may directly invest in an asset which may require you to make many and even daily decisions. You may decide to co-invest with a team of experts which will allow you to maximize your returns while not having to make decisions day-in and day-out.

ALTERNATIVE INVESTMENTS ARE NOT CREATED EQUAL

These days there’s a myriad of alternative investments, which one is right for you?

Alternative investments like real estate; commodities; tangibles like gold, art, wine, and stamps; private investments; private equity and venture capital have long been utilized by investors to hedge against stock market volatility. This is because alternative investments are theoretically uncorrelated to the broader stock and bond market and therefore insulated from broad market swings.

CHOOSE THE GOOSE

Imagine the following two scenarios. In the first scenario, Jack has the opportunity to acquire a goose that lays golden eggs. It will take some sacrifice and a leap of faith to acquire the goose but the payoff could be amazing. But first, he will have to make an important investment decision.

Jack’s investment capital is a dairy cow that has stopped producing milk. He’s been instructed by his mother to sell the cow for cash, which will be put back into the farm that hasn’t been producing so well.

PLAYING WITH THE BITCOIN FIRE

I recently came across an interesting article on Reuters.com that relayed a recent interview on CNBC of Saudi Billionaire Prince Alwaleed bin Talal, who owns investment firm Kingdom Holding where he shared his thoughts on cryptocurrencies like bitcoin. In the interview, Prince Alwaleed expressed his skepticism of cryptocurrencies, warning that bitcoin was like “Enron in the making.”

WHY PROFESSIONAL ATHLETES ARE RICH BUT NOT WEALTHY

Chris Rock once said, “Shaq is rich, but the white man who signs his check is wealthy.” – Chris Rock, Bring The Pain, 1996.

So what’s the difference?

What does it mean to be rich vs. what it means to be wealthy? Maybe Chris Rock’s implication is that you can be rich and have a lot of money but still not be wealthy. It’s the business owner, the one calling the shots, the one who doesn’t have to worry about money, that’s the wealthy person.

DISCLAIMER

This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein.

THE OFFERING IS MADE ONLY BY THE PRIVATE PLACEMENT MEMORANDUM. THIS MATERIAL MUST BE READ IN CONJUNCTION WITH THE PRIVATE PLACEMENT MEMORANDUM IN ORDER TO UNDERSTAND FULLY ALL OF THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES ASSOCIATED WITH AN INVESTMENT IN THE SECURITIES TO WHICH IT RELATES AND MUST NOT BE RELIED UPON TO MAKE AN INVESTMENT DECISION.

The offering of securities described herein will not be registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any state and the securities are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and such laws. Neither the Securities and Exchange Commission nor any other federal or state agency has passed upon the merits of or given their approval to the offering of the securities, the terms of the offering or the accuracy or completeness of the offering materials. The offering of securities is being made only to Accredited Investors, as defined in Rule 501(a) of Regulation D of the Securities Act. An investment in the securities is highly speculative and involves substantial investment and tax risks. All prospective investors must review the Private Placement Memorandum in its entirety, including the section entitled “RISK FACTORS” before investing.

An investment in Four Peaks Capital Partners, LLC is highly speculative and involves substantial risks, including, but not limited to: (1) Four Peaks Capital Partners, LLC success depends upon the performance of the Manager in managing Four Peaks Capital Partners, LLC and its investments, including decisions involving investment of Four Peaks Capital Partners, LLC’s capital and the acquisition and disposition of properties and there is no guarantee Four Peaks Capital Partners, LLC will raise enough capital to perform its investment objectives; (2) There can be no assurance that a prospective investor will receive any return on investment in Four Peaks Capital Partners, LLC and/or realize any profit on a prospective investor’s investment in Four Peaks Capital Partners, LLC and a prospective investor could lose all or a substantial portion of its investment; (3) The Manager has limited or no net worth and there can be no assurance that the Manager will have sufficient funds to meet its obligations to Four Peaks Capital Partners, LLC or to otherwise financially support Four Peaks Capital Partners, LLC; (4) The Class A members and Class B members have no power to take part in the management of Four Peaks Capital Partners, LLC and have limited voting rights and will not have the opportunity to evaluate or approve any of Four Peaks Capital Partners, LLC’s investments; (5) The Class A Interests and Class B Interests will be illiquid, and the transferability of the Class A Interests and the Class B Interests will be substantially restricted; (6) Four Peaks Capital Partners, LLC may not have the cash flow necessary to make distributions to its members; (7) Four Peaks Capital Partners, LLC will not diversify its investments and, therefore, the success of Four Peaks Capital Partners, LLC will be dependent upon the success of the properties; (8) There are substantial risks associated with real-estate investments and ownership of storage facilities and mobile home parks; (9) There are various potential conflicts of interest among the Manager and its Affiliates and their principals.
Investors must read and carefully consider the discussion set forth under the section entitled “RISK FACTORS” in the Private Placement Memorandum for a complete discussion of these and other risks pertaining to this investment.

These projections are speculative and based on specific assumptions, which, if incorrect, would cause the actual returns to differ materially from the projected returns. You should review the entirety of the assumptions and risks set forth in the Private Placement Memorandum.

Any underlying assumptions and any forward-looking statements herein may not be accurate, the projections herein shown may not occur, and actual results could differ materially due to risks and uncertainties that are beyond the Company’s ability to control or accurately predict. To the extent, the information in this communication conflicts with the information in the Private Placement Memorandum, the information in the Private Placement Memorandum shall govern.

The securities offered are an illiquid investment and involve a high degree of risk; Investors should be able to bear the loss of some or all of their investment. Investors should read and understand all of the risks and the entire Private Placement Memorandum before making a decision to invest. Past performance is no indication of future results and there can be no assurance that Four Peaks Capital Partners, LLC will be able to execute the investment objectives for the Properties or the Offering.

This material is for general information purposes only and does not constitute legal, tax, investment or other professional advice on any subject matter. Information provided is not all-inclusive and should not be relied upon as being all-inclusive.
Any capitalized terms used but not otherwise defined in this Presentation shall have the meanings set forth in the Private Placement Memorandum.

Any reference to “Four Peaks” “we” “our” or “fund,” regardless of capitalization, shall refer to Four Peaks Capital Partners, LLC, and its Affiliates.

For additional risks and disclaimers, visit https://www.fourpeakscapitalpartners.com
Four Peaks Capital Partners, LLC

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