The Rich Are Hiding This From You

Written By Jimmy Mengel

Posted March 30, 2016

A few years back, a friend of mine had an opportunity to get in on the ground floor of a very promising investment…

He was poised to invest $25,000 in Chess.com, a website that teaches players “the game of kings” — and churns out some serious coin while doing so. A $25,000 investment would have netted him $500,000 — an unbelievable return by any measure.

Alas, accredited investor laws prevented him from taking advantage of the private placement, and he was left to watch helplessly as the super-wealthy bought in and cashed out.

In order to be an “accredited investor” you must either make $200,000 a year, or have at least a million bucks sitting in the bank.

It goes without saying that most individual investors don’t have a cool million to drop on a promising or potentially life-changing investment idea.

I sure don’t.

But thankfully, I’ve found a way around this loophole…

While these SEC rules are supposed to “protect” investors, what they really do is box out everyone but the Wall Street fat cats and Hedge Fund titans. Instead of making these opportunities available to the people who could really benefit — individual, mom-and-pop investors like you and I — only the super-wealthy have backstage access to the most lucrative of these deals.

This is especially troubling since so many young companies are deciding not to go public. There are a few reasons for this: it’s expensive, it’s intrusive, and it leads many new companies to start thinking in the short-term — forcing them to fixate too much on quarterly earnings and managing shareholder expectations — instead of developing a successful, long-term business model.

With so many bright startups launching each year, outside of the stock market, I’d love to be able to get in on the ground floor of something exciting that could deliver 20 times my money, like my friend’s chess wager would have. It sure beats jumping on a bloated, overpriced IPO after the rush of institutional investors.

But, thankfully, these rules are slowly changing…

The biggest news hit on March 16th, when the SEC lightened up on some of these rules. That was the day that Title III of the JOBS Act became effective and opened up more regular investors to “Crowdfunding” investment.

That means that you will be able to invest in certain privately held companies, though your investment amount is capped at 5% of your income if you make under $100K per year, or 10% if you are make over $100K.

So, that is a step in the right direction, but still means someone making the average American salary of $50K a year is limited to a meager $2,500 investment. While that is better than not being able to invest at all, it is hardly a large enough stake to lock in life-changing gains on a budding new company.

That’s why I encourage anyone interested in holding a piece of private companies look to this one stock, which rewards you like a successful startup would, but protects and insulates you from all of that risk that comes along with any new company…

Eighty years ago, the SEC banned the advertisement of companies like these, that offer access to off-exchange investment deals that generate the real returns.

I’m talking about highly profitable private equity deals.

While the ban was supposedly passed to protect ordinary investors, it worked to exclude all but a handful of elites from the most profitable deals — deals not available on the stock market or anywhere else.

So for the last eight decades you couldn’t get in on firms like this — or the deals they offer — without an “in.” Connections to a big hedge fund or an angel network of uber-wealthy investors.

But the company I’m sharing with you today offers you a “backdoor way” into private equity — no matter how much money you have… your education… or your investing pedigree.

When you buy in today — with as little as $15 — you get equity in the private companies it owns.

I’m talking about highly profitable pre-IPO companies even most venture capitalists can’t access…

Simply put, your investment makes you a private partner in the company, and entitles you to numerous “perks” not available to ordinary shareholders. As you’ll see in this new report, this company can hand you even bigger returns and more safely, while still allowing you to own chunks of multiple cash-gushing private companies.

Plus, you’ll be investing alongside serious insider investors — in fact, never before have I seen a company’s execs so personally invested in their own firm. In the past month alone, a handful of insiders scooped up over $1 million worth of shares.

The CEO personally bought up $1.5 million worth of shares last year. Another member of its board bought up $790,000 worth of shares over the past 12 months. And they’re not alone: every executive in the company has bought over six figures worth of shares last year.

All told, insiders scooped up $13 million worth of shares in the last 12 months. And they’re not stopping now…

Perhaps most importantly for mom-and-pop income investors, this revolutionary company also pays 80% of its market value in dividends, something you would never, ever get in a young startup.

I’d urge you to get in before the next payment deadline, which is scheduled for April 15.