What is entailed in becoming an accredited investor?
How are so many companies “run” so to speak by one fund or group of people?
On average, there are over 50 people that run the companies that get purchased. These people work at the fund level and either work in the operations division or the sales and marketing division. These people are trained on how to run these types of businesses and have experience doing so. The most important part to remember is that most funds don’t look at companies to purchase that aren’t very easy to run for the owners. Most of these business sort of “run themselves” so to speak or are much easier to run than the average business.
How much do I have to invest?
There is not currently a limit to what you can invest. The funds set the parameters of each deal in terms of how much or how little you can invest in their deal. Most of the funds and opportunities require a minimum investment in each deal of $10,000.
How do I know my money is safe?
Every investment is a risk, this is no different. Your money will be tied up in a business that has real assets and customers and revenue and profits. When you get your first owner’s draw it will be easier to see how your investment is actually an income producing asset. However, if you are risk averse, this is not for you. You could lose your money and you could make massive returns. If you are looking for something very safe, we recommend you talk to a financial advisor in your area.
What are these “great” returns you speak of?
We can’t guarantee or speak specifically of returns because they are “deal-dependent”. We invite you to become a member, look at the deals and then consider this question with each deal and present that question to the deal opportunity representative. That said, there are people getting very large returns from the businesses that they have purchased.
Why do I need an invite code?
We have to “weed out” the time wasters and keep them at bay. This is for affluent people only that have money to invest that would not affect their quality of life. The best way to find those affluent people is by people inviting their friends who are also affluent. We would rather only spend time with people who could become accredited members and who would love what we are up to.
How do I know this isn’t a Ponzi Scheme?
We understand what Ponzi Schemes are. We have 2 securities attorneys on our team and we operate strictly under the SEC’s guidelines for investments. Our investment model is in no way a Ponzi Scheme. As an “accredited member” you can speak with our veteran securities attorneys about this or other similar concerns and we will pay for the attorney’s time. We are confident you will find that we operate well above board.
Why are these businesses for sale if they make money?
The business hasn’t typically made progress because the leader hasn’t had the ability or cash to do that. Sometimes the owner would like to retire, start a different business, get a different job, or just invest their money and not be a business owner. There are many ways that owners get to the point of wanting to sell.
How many investors need to pony up cash to buy the business?
It depends on the investment opportunity. We can’t speak to that number but the average number of investors through Equistack is 10 total investors per deal.
What does the sale of the business later entail?
Each fund will facilitate the sale typically. Those deals and terms of done in and through the fund and not through Equistack. Some deals can be “hold strategies” but that is rare. You should be aware of and speak with the fund about the “exit strategy” with the fund before you invest.