my uncle, joe cirocco, could make a to die for italian sausage sub. He ran an italian deli which included four short grocery ailses and a meat locker. You could get fresh deli meats. He leased space for almost 40 yrs. 40 yrs of rent receipts. he sold his business when he was in his seventies. his business consisted of his customer base. he didn’t get much for it.
that’s our system. he could have bought a building and leased it out to someone else. but he never got the capital together to do so. maybe because he was too busy paying rent.
in our system asset accumulation is like gravity. this system impoverishes itself at its logical extreme.
We can broaden he basis of equity stakeholders. ROI is equivalent to any comparable fund. Long term yields are higher as the economy enjoys a virtuous cycle stimulated and produced from a broadening base of equity shareholders. A new model of investment for equity capital.
in this model the business paying rent to a Super REIT will have equity participation. Equity will flow to the business owner and the employees.
Here’s how:
COMMERCIAL APPLICATION
Same structure of LLC share distribution (see below) in which an LLC owns pieces of entities such that a tax credit can be generated thru a 501c and distributed to the business owner and employees IRA or 401k.
Income from shs goes into owners & employees 401k / IRA accts: shared proportionately.
Tenant (business owner), who is paying the rent could get all of the shs.
Or / Also: A formula could be used to calc employee contribution to revenue.
Reit shs provides income to the business to pay rent.
Once employee leaves the shs leave with him.
NEW EQUITY FUND
REIT gives interest deduc to 501c.
The 501c buys shs and gives them to the tenant.
REIT can own property with the 501c.
Give the 501c the interest deduction.
The REIT gets a charitable deduction.
This works if:
If charitable deduction = interest deduction tax credit.
501c sells interest deduction tax credit to buy shs in the REIT for the tenants, equal to the interest deduction they should receive.
Altemative structure:
All own shares of an LLC which owns a property.
Reit’s property / 501c / tenant / own shares of spe which owns property.
Reit can add a property that needs a tax credit (interest or depreciation deduction)
NOTES
in the evolution of capitalism