The Holy Grail of Income
The number one question I get asked today is: “Lou, how can I get more monthly income with a high degree of certainty.” The answer to that question depends on these two things. First thing is finding a proven, high cash flow business that is expanding and wants private funding. Second thing is structuring the transaction to be win-win for all parties.
We recommend a convertible bond debenture that gives the investor a liquidation privilege ahead of all stock shareholders that pays up to 10% dividend plus 2% of gross revenues. The overall return averages better than 20% per annum over a 5 year period. In the event the cash flow growth company goes public or gets acquired which often happens, the investor has the option to convert to equity at a $1 a share which can result in a capital gain return of up to 10:1 or more.
