How
does a Limited Partnership Work?
A limited partnership is similar to a traditional investment in
the financial markets where an investor has no involvement in running
the business but receive a rate of return from the investment. Unfortunately,
that is where traditional markets have failed, seeing a positive
rate of return. The General Partners manage the day-to-day operations
of the business and report to the Limited Partners how the business
is doing on a regular basis. USHML is more focused and is relatively
small compared to traditional public companies or investment opportunities
where diluted ownership is represented by stock shares. For example,
Microsoft has 10 Billion shares outstanding. Therefore, each share
represents 1/10,000,000,000 percent. So, would you rather own a
smaller focused share of a profitable business or diluted shares
of an overpriced company that could lose money?
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How
can USHML offer a set rate of return to the Limited Partners?
USHML uses leverage (financing) to purchase real estate property. The cash
on cash return is much higher than actual return on property or
increase in property value.
Example of properties USHML General Partners have partaken in:
Ex. 1: Purchase single-family home- $270,000 with $54,000
down. Then in 12 months USHML sells the home for $325,000 yielding
a 20% return on the property BUT a 100% return on cash-on-cash
investment. $55,000 PROFIT with $54,000 invested.
Ex. 2: Purchase condominium in pre-construction phase
prior to the start of development. Purchase price of property
$225,000 with $50,000 invested, when development is complete 12-24
months out these properties appreciate from 25-50% in price. Using
the low estimate of 25% increase in price USHML would sell this
property for $281,250 yielding a cash-on-cash return on investment
of over 100%.
How does USHML determine where to invest?
USHML considers all aspects of the areas that we are investing
including but not limited to the demographics; site and building
plans; cost per square foot; surrounding areas and current market
values and conditions; appraised values verse offering price;
projected growth of the area and region; unemployment rates and
job availability as well as economic benefits such as tax havens
or incentives offered by governments to entice potential
employers to real estate.
What are the risks in investing
in USHML?
USHML has eliminated much of the risk by focusing on investments
in real property that has a determined minimum appraised value.
We calculate our return prior to ever considering any property
and if we feel a property is overvalued we simply pass on the
opportunity. We look for pre-construction properties; undervalued
properties; under or undeveloped properties and foreclosures which
all have factored rates of return. USHML currently owns properties
that already have equity value higher than purchase further eliminating
risk and best of all your investment is secured and backed by
the ownership of real assets.
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