Tax — Assuming 100k invested. 49k distribution received over 7 years without paying any tax. $120k received as principal + payout. There’s a $69k total gain, taxed at around 15% after the payout.
| Eenergy-12 | Cambodia shops | AsiaProp HighYield-bond | |||||
| liquidity | Least liquid. 5-7Y after “close[1]” or longer | any time but long lead time | 2Y | ||||
| amount | USD 5k | USD 200k | SGD 10k | ||||
| dividend “guaranteed” | 6% (7% pretax) | 7% and 5.5% | 14%->19% semi-annually | ||||
| .. from? | existing oil output | rent | unknown | ||||
| upside | 40% participation. | Long-term strategic investment with potential of windfall. | zero | ||||
| downside | indefinite delay | property devalue; hard to sell | |||||
| underlying asset | oil field | shop | equity holdings in start-up | ||||
| backer | deal maker | developer | tiny investment firm | ||||
| diversify: correlation with properties+stocks | excellent | good | good | ||||
| … geographically 1-5 | 3 | 5 #excellent | 0 #poor | ||||
| risk: key personnel | high | low | high | ||||
[1] could be May 2019 or earlier
According to Chip, typical amount is 50-100k per investor. I choose to believe him. I feel his investors are generally more optimistic and risk-taking than me.
Many David Lerner staff invested in the same program.