Sam Cyrus got that laid-back, luscious mane. He calls himself a software investor in the digital realm.
Accredited investors are apparently making $70,000 in annual preferred dividend payments via his SaaS Wealth Fund.
He says cash flowing software businesses is the best investment you can make.
Running over traditional investments like a Ford F-150.
While that may be true, who the hell is this guy and can you trust him?
Read on for Sam Cyrus reviews.
There are 5 ways you can build wealth investing in software startups:
- The monthly cash flow
- It can use leverage
- The equity of the business
- Appreciation
- Tax benefits
Everybody wants more passive income.
You could argue it’s more important than net worth because net worth is generally stagnant and illiquid.
Plus, most of us wanna protect our precious net worth. We don’t wanna see it dwindling, do we? Can’t be out here spending like a washed up NBA superstar.
Cash flow, on the other hand, regenerates every month. You don’t feel as bad leasing a Lammie so long as your cash flow covers it.
That’s while you sleep money. Lounging in jammies money. Netflix and chill money. Travel and do whatever and the money keeps coming money.
Yes, we want that, Sam. We’re all ears; make ’em ring.
Not so fast, he says.
First you need to understand leverage. If you buy 100 shares of Apple, assuming you don’t trade on margin, you have to pay for that all up front.
It’s different when you’re throwing down on an already profitable business. You’re putting 20-, 25% down… is all.
But the check you get each month is based on the total value of the company.
And with software, specifically, you’re leveraging code. Which is almost like having unlimited employees.
Right on, Sam.
So what about equity?
Simple, he says. You pay down the principal while building the cash from the asset.
Maybe a software biz spits out $500k/mo and half of it goes to the bank to put towards the loan.
The other quarter milli goes to investors. Neat.
Even neater, though, is when it grows to $600k/mo. Then $700k – ’cause your equity grows with it.
And appreciation’s your best hedge against inflation.
So when each of your dollars turns into 75 cents, you won’t have to tuck your tail and give the Lammie back. Just increase the price of your SaaS offer. Poof, problem solved.
It’s more nuanced than that, of course.
You’ve got forced and organic appreciation. But as long as the software has low churn, appreciation of the biz really ain’t all that hard, Sam says.
What can you do with taxes?
The tax code’s written favorably for investors of big businesses, with big revenues, Sam explains.
The business gets taxed at a lower rate than an individual would.
Plus the interest paid on the loan can be written off.
Then there’s something called rapid depreciation (aka cost segregation) that can lower the overall cost of the asset.
Add it all up and cash flowing software businesses are an investor’s paradise. Beautiful. Blissful. And bountiful.
Which is where you come in.
As a potential passive investor in the SaaS Wealth Fund.
Unless you like getting your hands dirty with due diligence and negotiations and funding and operations and hiring and firing and everything else.
But if not, Sam says they’re generating above market returns for everyone involved: between 300% and 400% within the holding period of 5-7 years.
You’d get paid monthly, quarterly and a lump sum when they flip the project.
Sam’s speech is like wading through mud. “And uhh… and uhh.” Brutal.
I coulda built a new software business by the time he got to the point.
It’s a no for me.