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Textbook
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
17. 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 versions of DPPs that sound exactly like what they are. These are partnerships that acquire large amounts of equipment and lease them out to people and businesses. Here are some examples of equipment these programs offer for rent:

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

There’s a high demand for renting equipment instead of purchasing it, especially from small businesses. This creates an opportunity for equipment leasing DPPs. Not only can they make a considerable amount of income from rent payments, but depreciation deductions reduce taxes. Capital appreciation (buy equipment low, sell it high) is typically not a goal of an equipment leasing program, as 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

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