Links:
Tuesday, March 10, 2009
RE: LEAGUE OFFERS MORE!
Dear Member-Partners and Friends,
While world markets are in free-fall, while the media are spreading doom and gloom, and while "competitors" are offering less, we at League are proud to be offering more!
More Options...
Beginning today, the IGW REIT's new Income Priority Units (IPUnits) are available, and they come in two very satisfying options...
Choose from the One-Year-Term offering a 8.5% per annum fixed distribution; or the Two-Year-Term offering 9.25% per annum -- paid monthly, of course.
More Cash Flow...
For every *$100,000 invested in the One-Year IPUnits, Member-Partner will receive $708.33 per month -- for a total of $8,500 for the year.
For a *$100,000 investment in the Two-Year IPUnits, they will receive $770.83 per month -- or $9,250 for each year.
More Tax-Efficient Than Interest or Dividends...80% More!
If you've invested with League long enough to have received year-end tax slips, you already know the positive impact that League's tax-efficiency has had on your bottom-line. To date, 100% of the distributions from our traditional IGW REIT units has been tax deferred. The new IGW REIT's Income Priority Units will enjoy similar treatment. (For an explanation of the IGW REIT's Tax-Efficiency, see page 14 of the Investment Overview).
We assume that the Income Priority Units will be 80% tax-efficient. (The traditional REIT units are expected to remain at least 95% tax-efficient for the next few years). This means that whereas distribution from a traditional interest-bearing investment would be 100% taxable, only 20% of the income you receive from IPUnits are taxable. And that means more money you can spend, save, or re-invest as you wish.
An After-Tax Case Comparison...
Assuming a marginal tax rate of 44%, the net return from the One Year IPUnits is 7.752%. The after-tax return from the Two Year IPUnits is 8.436%.
To get that net return from a traditional interest-bearing investment, you would have to earn 13.84% and 15.06% respectively!
More Dependability and Security
Distribution paid by the new Income Priority Units are fixed -- not variable. They are backed by the REIT's obligation to pay the return for the duration of the investment. So, you can rest easy through the next couple of years knowing that the distribution from IPUnits are based on the solid returns of the REIT's tangible land, brick, and mortar investments -- not some value-fluctuating piece of stock market paper -- and there is a commitment to repay the issue price at maturity, so you know you'll be getting all of your original capital back when your investment term ends.
Automatic renewals
When the IPUnit terms mature -- in either one or two years -- you can simply do nothing, and we will automatically roll them for one more year on the same terms. Or, with not less than 60 days notice before maturity, we will repay 100% of the original issue price at maturity. With the cash back in hand, you can assess where next to reinvest.
With interest rates at historical lows, it's easy to see not only the stable value that IPUnits provide, but also the peace of mind they bring to you and your family while waiting for world markets to stabilize.
We are pleased to offer this new investment choice to our Member-Partners -- especially in times like these. And remembering that the 15th tenet of Our Credo states:
WE BELIEVE that all our Member-Partners have equal value, even if they don't have equal wealth.
... League will continue to honour its commitment that no minimum investment is required.
Which brings me to the matter of spreading the word...
I realize that talking to a friend or colleague about personal finance can be uncomfortable. Most of us are reluctant to tell a friend what they should do with his or her money. But may I make a suggestion? Hand your friend a copy of League's Blue Book of Real Estate Syndication. Just call, and we'll send you as many copies as you need. Any friend of yours, is a friend of ours.
One last important matter. Although returns will be fixed from the day you place the investment, we cannot guarantee these same rates indefinitely. However, if a tax-efficient investment that provides reliable income over a fixed term appeals to you, I hope you'll call your Members' Services Managers to find out more. For here is an opportunity to lock in some dependable income for the next couple of years.
Meanwhile, stay tuned. There's more good news to come, and soon! Until then, I remain,
Sincerely yours,
Emanuel.
Emanuel F. Arruda, Founding Partner
League Assets Corp.
Learn, Earn, Live, Give.™
* As is our custom, League sets no minimum investment requirement. However, the Securities Commissions of Ontario and Quebec have their own set of rules for residents of those provinces. If you are an Ontario or Quebec resident, please call for more information. Our Members' Services Managers are always happy to assist you.
Links:
------------------------------------------------------------------------------------------------------------------------------
"If we do not change direction, we are likely to end up where we are headed."
- Chinese Proverb -
------------------------------------------------------------------------------------------------------------------------------
|
