A master limited partnership is a publicly traded stake. It functions much like a stock, bears no controlling interest, and affords the business it belongs to working capital. Known as business partnerships, MLPs are mostly used to allow companies to enjoy the tax breaks partnerships are entitled to. This allows a business the ability to take advantage of a unique tax break, one that says taxes will not be taken out on income until investors are paid. The specific tax break MLPs use requires 90% of the income to be dispensed, leaving only 10% to be taxed. 568 companies dealing in the production of oil and natural gas are currently taking advantage of this tax break. All that is required are investors to purchase stakes. So, Matt Badiali is going on T.V. and letting everybody know that such stakes are available. Only he does not call them MLPs, he refers to the investment as Freedom Checks.
If you have seen the Freedom Checks video, then you already know about freedom checks. Badiali even holds one up to the camera so you can see how much John Q. So-and-So is about to make. Although it all seems to good to be true, Badiali is a legitimate investor, and the freedom check is a payout from a legitimate investment. The amounts he talks about come from his understanding of the natural resource market, of which his knowledge is extensive, and his expectation of where it is going to go. Oil production in the Middle East is decreasing, and U.S. oil production is now on the rise. U.S. natural resource companies stand to see quite a boom in their revenue, anyone holding an MLP stake will receive a generous percentage of that boom. All that is required is for an investor to purchase a stake. They can be had for as low as $10 dollars. The more money one invests the higher the percentage. “Freedom Checks” will come either monthly or quarterly depending on the business. They are return of capital payments in reality, personal checks made out to investors by the company they own stakes in.