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Textbook
Introduction
1. Common stock
2. Preferred stock
3. Bond fundamentals
4. Corporate debt
5. Municipal debt
6. US government debt
7. Investment companies
8. Alternative pooled investments
8.1 REITs
8.2 Hedge funds
8.3 Direct participation programs
8.3.1 The basics
8.3.2 Organization
8.3.3 RELPs
8.3.4 Oil & gas
8.3.5 Equipment leasing
8.3.6 Suitability
8.4 Business development companies (BDCs)
9. Options
10. Taxes
11. The primary market
12. The secondary market
13. Brokerage accounts
14. Retirement & education plans
15. Rules & ethics
16. Suitability
Wrapping up
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8.3.5 Equipment leasing
Achievable Series 7
8. Alternative pooled investments
8.3. Direct participation programs

Equipment leasing

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Equipment leasing programs are a type of DPP built around a simple idea: a partnership buys equipment in bulk and leases it to individuals and businesses. Here are some examples of equipment these programs may offer for rent:

  • Machinery
  • Cars
  • Trucks
  • Construction equipment
  • Office furniture
  • Computer hardware
  • Computer software
  • Lighting systems
  • Power supply systems
  • HVAC systems

Many customers - especially small businesses - prefer renting equipment to buying it outright. That demand creates an opportunity for equipment leasing DPPs. These programs can generate steady income from lease payments, and the equipment’s depreciation can create tax deductions that help reduce taxes.

Capital appreciation (buying equipment low and selling it high) usually isn’t a main objective in equipment leasing programs, because most equipment loses value over time.

Equipment leasing programs

  • Acquire various forms of equipment
  • Rent out equipment to people and businesses
  • Primary benefit is consistent rent income
  • Equipment depreciation reduces taxes
  • Little to no capital appreciation potential

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Equipment leasing

Equipment leasing programs are a type of DPP built around a simple idea: a partnership buys equipment in bulk and leases it to individuals and businesses. Here are some examples of equipment these programs may offer for rent:

  • Machinery
  • Cars
  • Trucks
  • Construction equipment
  • Office furniture
  • Computer hardware
  • Computer software
  • Lighting systems
  • Power supply systems
  • HVAC systems

Many customers - especially small businesses - prefer renting equipment to buying it outright. That demand creates an opportunity for equipment leasing DPPs. These programs can generate steady income from lease payments, and the equipment’s depreciation can create tax deductions that help reduce taxes.

Capital appreciation (buying equipment low and selling it high) usually isn’t a main objective in equipment leasing programs, because most equipment loses value over time.

Key points

Equipment leasing programs

  • Acquire various forms of equipment
  • Rent out equipment to people and businesses
  • Primary benefit is consistent rent income
  • Equipment depreciation reduces taxes
  • Little to no capital appreciation potential