This came in Thursday Evening May 21, 2009 from one of our seasoned bankers on behalf of a client who retained us in December 2008:
He can start with 300K, more is better;
PPP: $300K
Here is the basic break down of the Program:
The program basically works like this….
A. Principal JVs with the Attorney operating in the Program to leverage a $100M Note that is leased, but written to go into Trade with a specific Trade Group
B. Principal sends $300K into Escrow Account with top firm, Attorney puts in roughly another $700K, for a total of $1M to pay for the Leased Note…so what we have here is true Financial / Cost JV
C. The Principal earns 25% of Trade Group Proceeds
D. In the past, and from what I understand they may be changing the program now, the Principal was paid $200M within 60 Days…actually the CONTRACT reads 60 days, it was closer to 30 days or less, with the following taking place:
30 Days to Secure the Note and Enter Trade
30 Days to Receive $200M
E. Now, it appears the Principal will still be making $200M, however, it will be paid over the course of 40 weeks ($5M weekly x 40)….still a phenomenal return. Still with the following breakdown:
30 Days to Secure the Note and Enter Trade
30 Days to Receive First Proceeds….
F. The $300K is fully guaranteed by the Attorney.
The Principal may do no more than ten (10) $300K Contracts at one time, but may re-enter as often as he or she likes.
NOTE: When the Client does 10 Contracts ($3M), the funds do NOT leave the Client’s account. Only when doing $300K or below 10 Contracts,
The Principal will receive Contact Information to the Attorney and the Contract after submitting the following:
1. Up to Date CIS
2. Color Copy of PP
3. Bank Statement showing $300K…MUST BE LESS than 3 Days Old