My third and final blogpost in this series is close to my heart: the rebranding of TLTsolutions. I will tell you why I changed my path and dedicated myself to bringing people together to acquire passive income, while building wealth. I am grateful to be able to share my journey with aspiring investors and entrepreneurs, and hope that you will be empowered to take steps to secure lifelong financial freedom through passive income.
Re-establishing TLTsolutions as a real estate investment firm was inevitable for me. Initially founded for healthcare consulting endeavors, I expanded to real estate in 2002 to include my investing and asset management activities. After years of thoroughly educating myself, I began applying the principles and practices I had learned from taking courses in commercial real estate. Although I was a successful healthcare executive, I was yearning for entrepreneurship and a deeper purpose for my life. I was seeking to build a legacy business that could be passed on for generations to come. Real estate was an entrepreneurial opportunity in an industry for which I had the skill set to navigate. It also meant acquiring wealth that I could continuously grow over time--and most importantly, pass down to my son.
After consecutive successful real estate ventures, I had developed a certain aptitude--and passion--for investing. My friends and family also noticed, and would frequently call me for guidance on their real estate investments. Naturally, I provided them knowledge on how to establish a healthy stream of passive income or turnaround an unprofitable venture. My desire to educate others is what led me to turn my money-making hobby into a business. I wanted to build a community of people who empower each other to take the calculated risks needed to build generational wealth. TLTsolutions is more than a real estate acquisition and development firm, it is a support system which guides our clients in the most profitable direction in real estate. What’s more, the crowdfunding aspect of the real estate ventures we embark on help to reduce risk, and allow participation in opportunities that may be unattainable on your own. The idea is to come together to pool the money so that each of us can benefit from the ownership of real estate.
I am aware that investing can be an intimidating concept, which is why TLTsolutions operates on the foundation of sound education, transparency and trust. When you make the decision to put hard earned money into third party hands, confidence and credence needs to be established--and we do everything possible on our end to make that happen.
At TLTsolutions, we work diligently to identify investment opportunities and take on all of the initial risk to acquire them. Of course, just as in residential real estate, you have to put down an initial deposit or earnest money on the investment. We do the heavy lifting, putting down our own money to cover all the necessary costs to determine whether or not the investment has a high probability of success – due diligence. In due diligence, we confirm the feasibility of our projected return on investment for the properties and complete a thorough assessment of the deal with property and environmental inspections, appraisals, surveys, title work, etc. Additionally, we take on the risk of guaranteeing the loan to acquire the real estate. The truth is, not everyone qualifies, and in understanding this--we put our name on the line (for better or worse!). It is important to note that when you invest with TLTsolutions, your sole risk is the money you invest. In addition to taking on the upfront risks of the deal, we also invest our own money alongside of yours – we have “skin in the game.”
Once we confirm the feasibility of the investment opportunity, we develop a strategic business plan to mitigate risk and only then do we invite you to partner and co-own the real estate with us.
We only make money if we are successful in making money for you. We do the heavy lifting so that you can sit back and enjoy the passive income--keeping things transparent every step of the way, educating and providing you direct access to all aspects of your investment through your own personal portal via the internet.
An Example of an Investment Offering
Of course, people want to invest their money, but also want to know how they get it back. Here is an example. In 2016, TLTsolutions acquired a Hampton Inn by Hilton. We partnered with 23 others--which comprised four different types of investors for a total of nearly 3.2 million dollars to purchase the 100 room hotel in Maryland. We obtained a mortgage at 68% of the total cost that was guaranteed by TLTsolutions. After the 1st quarter of operations, the hotel was profitable and we began distributing a return to investors. Later this Fall, we will be modernizing the hotel with a full renovation of the exterior facade and interior guest rooms and public guest areas.
This cash flow is from the revenue generated by selling rooms in the hotel. After all of the expenses such as salaries, wages, supplies and franchise fees are paid, including the mortgage, property taxes and insurance, the remaining cash is distributed to the investment partners. As you know from my previous blogpost, success in commercial real estate investments rely heavily on improving the property’s value through appreciation. The more income generated, the more valuable the property. Therefore, our goal is to maximize the number of rooms we sell by offering the best guest experience and to do it efficiently by training staff to be productive and by minimizing waste in time and materials.
What are the four different types of investors that partner with TLTsolutions to acquire real estate? At TLTsolutions, we
structure our investments so that our partners can participate in different ways.
Individuals– hold ownership interest in your name
Entities – hold ownership interest in the name of your business
Trusts – hold ownership in a revocable (trust) or family office structure
Self-Directed IRA – invest using money from your retirement accounts
Using a Self Directed IRA (SDIRA) is very popular among our investment partners. We structure our investment partnerships so that you can invest using the money from your retirement account for your equity contribution. You can establish an SDIRA by transferring your existing funds from your current qualified retirement plan or IRA with an investment company like Fidelity or Charles Schwab to a custodian that manages SDIRA such as Pensco Trust Company (penscotrust.com) or Udirect (udirectira.com). This transfer of funds from one custodian to the other does not constitute a withdrawal and therefore there will be no penalty and your deferred tax status will remain as long as the transfer is executed according to IRS rules.
Investing in real estate is more than just taking your money and owning a building. It’s about investing for your future. What you do with just one project can be replicated in many different ways, all while contributing to the growth of your portfolio--and your net income!
If you are intrigued by the idea of real estate investment, act on your interest. TLTsolutions was founded with you in mind, to open the doors to opportunities that can contribute to your lifelong financial security. Real estate is a wealth-builder, and although it takes patience and time, its lasting merit is invaluable.
For more information on TLTsolutions and how you can get started on your path to building wealth through passive income from real estate, visit https://www.tltsolutions.net/Connect and schedule a Chat. I am more than happy to meet with you and discuss the Power of Passive Income and how you can expand your investment portfolio to include real estate.