7. HOW DOES YOUR MONEY WORK FOR YOU WITH THE ENSIGN PROGRAM?

OVERVIEW

First, you become a Preferred Member.

To become a Preferred Member, you buy at least one (1) Preferred Member unit for $12,500.00 of one of the available Ensign projects. You now own X% of that project.

Next, here is what you get:
  1. Simple Interest: 8.3% per year simple interest return on your investment, paid as the product is sold. See example.
  2. Profit Sharing: As an owner, you also get X% of the profits earned by that project, paid after the close of the books for that project.
  3. Paid First: You get your capital and 8.3% simple interest paid back FIRST before any other Members and/or the Founders.
  4. Risk Mitigation: Your investment is structured for risk mitigation and abatement protection.
  5. Compounding: If you want to re-invest in any other Ensign Program projects, you have a first right of refusal on a first-come-first-served basis with no obligation opportunity to compound your investment interest.

Example

Serenity Point Project
  1. Total units= 5,000
  2. Total Preferred Member units= 600
  3. Available Preferred Member units=600
  4. Cost of each unit= $12,500.00
You decide to invest 8 units which equal $100,000.00

1. Simple Interest

  1. 8.3% per year x three years
  2. The Simple Interest you earn on your investment would equal $24,999.00

2. Profit Sharing

  1. You own .16% (8 units x .02% per unit) of the project.
  2. If the project has a profit of $10,000,000.00, you get an additional payment of .16% of $10M or $16,000.00

    *Please note: This relies on several assumptions, first that the project takes three (3) years to complete and that it makes a net profit of $10,000,000.

3. Paid first

  1. Four months into the project, Ensign sells one of the estates for $14.9M and collects $1.2M for the lot plus $800,000 for development costs at closing from the buyer.
  2. You receive 8/600 or $15,999.96 from that sale, paid towards your capital contribution of $100,000.00.
  3. You will continue to receive 8/600 of the lot portion of each successive estate sale until your investment is paid back.
  4. Once your investment $100,000.00 is paid back, you will continue to receive 8/600 of each lot of each estate sale until your investment is paid back.
  5. You are being paid all of your investment back before any of the other regular L.L.C. members are paid anything.

4. Risk Mitigation

  1. By owning a part of the LLC, you will own part of developed real estate.
  2. Your money is held in an escrow account until needed.
  3. We have other Risk Mitigation procedures to be introduced later.

5. Compounding

  • Since you are paid back FIRST before any other members, you have your investment back and have the ability to reinvest in other projects to create a compounding effect on your investment.