Growth or Cash Flow? | Premier Crowdfunding
1 Sep

Growth or Cash Flow?

September 1, 2018 /  In Investment /  by

Unsure which asset to add to your portfolio next? Different types of investments will have various benefits to your portfolio and should be handled and valued differently. For example, certain stocks offer a strong dividend with limited appreciation, and other stocks offer no dividend with a strong history of appreciation. Which one is “better” depends on multiple factors, such as how long you intend to hold the asset, regardless if it is a stock or real estate. Consider that cash flow is taxed at ordinary income and capital gains are taxed at a lesser amount. We will go deeper into that topic in another blog. Real estate is a long game – a marathon, not a sprint. Here at Premier, thanks to careful diligence and a rigorous vetting of our tenants, our real estate assets provide both cash flow and appreciation.

We like to use baseball as an analogy for our projects: some returns are singles, many are doubles and triples, some are home runs, and a few are grand slams. Typically, our returns are between 13% and 25%, however, we are proud to say that a few of our projects have earned significantly higher rates of return, such as 45%, 60% and 65%, and one over 100% IRR (internal rate of return).

As always, we thank you for your interest in our company, our team, and our projects. The Principals at Premier have been investing successfully for almost 40 years. We look forward to passing this success on to you.

Spencer Pisczak,
Co-Founder and CEO, Premier Crowdfunding
President, Premier Development Partners