It was a year ago that Matt Badiali first appeared on T.V. selling Freedom Checks. The popular spot featured Badiali holding a sizable check to the camera with the promise that you could get one of your own. Freedom Checks provide great investment opportunity but lack a decent FAQs page. Even though Badiali promised sizable returns, he never actually explained how the investment worked.
Freedom Checks are Return of Capital Payments
The payoff in a Freedom Check investment is called a return of capital payment. Best business ventures known as Master Limited Partnerships pay them out to investors. The payments arrive in monthly to quarterly installments.
What is a MLP?
Master Limited Partnerships are decades old business ventures that sell percentage stakes in their company. The stakes function like stocks but lack any controlling interest. Investors receive a percentage of the company in return for working capital. It is advantage for Freedom Checks businesses as it allows them the cash flow of a publicly traded entity. MLPs use two types of partnership stakes. The first is a limited partnership and is used to generate capital. The second is a general partnership, and it bears the controlling interest of the company. MLPs remain private entities only selling the limited stakes to the public.
Why They Are Special?
Matt Badiali advocates for MLPs because of their purpose in the natural resource market. The U.S. Government awards stateside natural resource companies with tax incentives as a way of bolstering energy independence. The tax free investment afforded these companies require them to operate as MLPs. The tax break works by limiting the amount of revenue that is taxed. They do this by dispensing 90% of their revenue to stakeholders. As MLPs retain the general partnerships, most of that revenue comes back to them. The rest goes to their investors.
Why Did Badilai Start Freedom Checks
Matt Badiali began promoting about Freedom Checks because of a significant change in the natural resource market. The U.S. is importing less oil from the Middle East and using more stateside sources. As over 200 U.S. resource companies are MLPs, this means a significant boon is coming to anyone investing in MLP stakes.