REALTY411 Magazine - A FREE Real Estate Magazine for Investors! REALTY411 - A COMPLIMENTARY MAGAZINE FOR INVESTORS - Page 58

enterprise writer for CNN Politics, Thomas Lake, and Dr. Michael Gunter, MD/VIP. INVESTMENTS The Las Vegas Investment Club invests in a broad range of investments, each typically rang- ing from $250K to $3.5M in funding. So far this has included: •Two tourist attractions •A factoring company •An investment into several fitness facilities The club publicly posts its performance results on its website at http://lvinvestmentclub. com. Notable successes (so far) include an early exit to PayPal founder, Peter Thiel, for a 92% gain in 10 months, as well as a fully repaid loan to Las Vegas business ‘Adventure Combat,’ with subse- quent ongoing royalties. The group has also funded several UFC and Crunch gyms, as well as a $1M in a sub-prime financial firm, which last year surpassed one million loans. If you compare the club’s invest- ment performance to date, it would easily rank in the top 1% of funds, according to the club website. TRENDING INVESTMENTS It is currently the club’s philosophy that there is a disproportionate amount of risk to potential reward in the stock market. For this reason, members have reduced their exposure to the stock market, and have increased the share of their portfolios held in gold and silver (now up from 2-3% to 5%). This is direct investment in the physical metals. The only stock LVIC has participated in has been MOGO Finance Technologies. Since getting in at around $1, the stock (traded on the TSE as ‘MOGO’) has become the top performing stock on the ex- change. As of May 2017, it was trading at close to $4 per share, or up around 300% plus. INVESTMENT APPROACH Several things stand out as being different at this club. The first is the lack of egos. There are certain- ly many investors, asset managers, and “gurus” out there who make a lot of noise, with far weaker track records. Club members here appear to have more of a sense of community, and are far more engaged and involved in decisions and the control of their assets than elsewhere. This applies to the point at which investments are made as well. ‘ The group’s performance, high level information, and savvy man- agement has investors flying in each month — even from as far as away as Alaska. That certainly says something about the value ’ members feel they are getting. The LVIC only funds projects where one of its senior members takes an active role in the “day-to- day” operations of the funded company. This may be as an officer, or serving on the Board of Advisors or Board of Directors. A reciprocal strategy exists, which can add a lot of value to the business as well, especial- ly given the significant inventory of skills within the group. The LVIC’s approach definitely has some Warren Buffett-like qualities. This shows up when investing in businesses, where they can have influence. Initial criteria demands that a prospect must be producing immediate cash flow, and offer disproportionately low risk to rewards. The club prides itself on being sure they are over-collateralized every time. They look for a five- to-one security ratio, or better. That could come in the form of liens on equipment and tangible assets as well as personal guarantees from owners who have signifi- cant collateral, and similar structures. Continued on pg. 60 PAGE 58 • 2017