The concept of ‘freedom checks’ was recently introduced by the media. The advertisement shows Matt Badiali holding a check for $114,287, suggesting a handout, a get-rich-quick scheme, that immediately turns consumers off to the idea. However, getting rich fast is not what these checks are about. In order to understand the concept, people need to understand two things. First, what is a ‘freedom check;’ and two, who is Matt Badiali and what gives him authority to suggest this type of opportunity.
‘Freedom checks’ are not a free handout; instead, they are an investment opportunity. They aren’t giving you money upfront; instead, they promise that you can earn cash from making investments that you will be able to turn-around and sell for a profit. This type of investment is a commitment, you are required to invest and reinvest in order to make a significant profit in the future. Read more about Freedom Checks at banyanhill.com.
Matt Badiali is an investment guru who, as a geologist, specializes in mining and natural resource investment opportunities. When the stock market crashed in 2008 and many people lost massive amounts of money, Badiali purchased stock for $0.06 a share in Kaminak Gold Corp. While the stock market continued to go down, Badiali was seeing increases. Just two years after purchasing the stock, he was able to sell it at a gain of 4,400 percent.
The investment opportunity that allows you to receive a ‘freedom check’ is referred to as Master Limited Partnership (MLPs); which is, in essence, a business partnership that functions like a publicly traded limited partnership. What does this mean? That, as an investor, you are eligible for the tax-related advantages of a partnership. There are two main types of MLPs; first, the type that encompass limited partners who have bought MLP shares and provide the beginning capital; second, general partners who operate the MLP.
The concept of MLPs dates back to 1981. 26-F is a statute that was put into effect by Congress in 1987. As it stands, there are roughly 550 companies who have the requirements outlined in Statute 26-F. Meeting these requirements allow these companies to offer ‘freedom checks.’
As good as they sound, there are two main limitations to freedom checks. First, companies are required to agree to pay these checks on an annual basis; and second, almost all of the revenue that powers these checks, 90 percent, must be in the form of transportation, oil production and/or processing, or storage.
One of the biggest benefits of MLP’s and ‘freedom checks’ is that they can be traded for as little as $10, which gives most everyone the opportunity to make these investments and see a return.