Direct Participation Programs

One way to put money into tangible assets is through investment programs called direct participation programs (DPPs). When you have a direct investment in tangible or real assets, such as real estate, leased equipment, and energy or mineral resources, you own a share of the actual assets of an operating company and may benefit from the assets’ value, typically the income they produce.

Some examples of common DPPs are non-traded real estate investment trusts (REITs), equipment leasing corporations, Oil and Gas wells and mining operations. CodeAmerica Investments is an Oil & Gas and Mining focused Company.

Investing through a DPP gives you partial ownership of actual physical assets. For example, if you invest in a non-traded REIT, you’re a part owner of the real estate holdings of the REIT. If you invest in an equipment leasing corporation, you’re part owner of the actual equipment offered for lease by the corporation. And if you invest in an oil & gas or mineral development corporation, you’re part owner of the corporation’s wells and mines and the proceeds of oil & gas and mineral sales.

The pooled investment structure of DPPs is sometimes described as a way to provide the average investor with opportunities previously available only to the wealthy. Because you invest as part of a group, you don’t need the means to acquire a large percentage stake in the venture or fund your own start-up company to invest in new businesses.

In each case, the sponsors who offer DPPs pool your funds and the funds of other participating investors to make investments they have identified as appropriate to the program’s investment goals. The sponsors are responsible for managing the assets of the program as long as it continues to operate and for devising an appropriate strategy for ending it.

Direct Participation Programs are not suitable for all investors and carry certain suitability requirements. As with all investments that do not carry guarantees these investments are subject to the possibility of loss of principal. For a complete listing of risks and for any additional information you may require to make your decision as to the suitability of the investment for your particular purposes.


 

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