Direct Participation Investment
Nelson Capital Company (NCC) was formed in 1985 and is a registered broker-dealer with the Financial Industry Regulatory Authority (FINRA). NCC was formed to to pursue a practice of investment banking through marketing direct participation investments. The practice also includes being the managing broker-dealer for private offerings of selected real estate investments assembled by Nelson Capital Development, Inc. NCC’s interest in marketing direct participation investments is limited to real estate, energy, and equipment leasing.
Because profits and losses flow directly to investors in a direct participation investment, double taxation can be avoided. Direct participation allows a passthrough of cash distributions and the tax advantages as may be associated with that investment. The direct pass-through of profits and losses is the most outstanding characteristic of partnerships, one that provides possible tax advantages and higher yields.
Purchasing Direct Participation investments to add to one's portfolio is another alternative to increase diversification. A 10% to 20% allocation to direct participation is a range that has been suggested by various financial analysts, depending on its appropriateness for the individual investor. The allocation of investment dollars should be carefully considered, and reviewed with financial advisors as appropriate.
A second point is that the different types of direct participation investments provide different tax benefits and timings of cash flows. Having a diversified number of direct participation investments may provide a greater return.
A publication titled "Guide To Understanding Direct Investments is available through the "Lightbulb Press at its website
Mr. Nelson is a registered principal with the Financial Industry Regulatory Authority, the Securities Exchange Commission, and the New York Sate Department of Law.
Please contact Jeffrey L. Nelson concerning current Offerings:
Links concerning regulation of Broker-Dealers:
- Financial Industry Regulatory Authority (FINRA)
- Securities Investor Protection Corporation (SIPC)
