While a U.S. Representative to the Asian Development Bank Board of Directors during the first Bush administration, I consistently called for China to "bite the bullet" and privatize its state-owned enterprises as soon as possible. Representatives of European and other Asian countries would just shake their heads and mutter about impatient Americans while advising that China take. A slow, incremental approach to privatization
Here we are more than twelve years later and the ball was turned into a time bomb that China's impressive economic growth and a better life for the people could derail. The fact that a majority of China's large companies still owned and controlled by the Chinese government has three negative economic consequences.
Firstly, it has stunted the growth of China's financial markets and prevent many companies from tapping capital markets. Almost 70% of the shares of Chinese 1,377 listed companies are substantially owned by the state and are not negotiable. This is the dreaded "overhang", the Communist Party leadership and bureaucrats anxious have stock prices reflect bewitched economic growth. For Chinese private shareholders The Shanghai Composite Index recently went into hiding in 1000 for the first time since 1997. The problem is that when the government sells these shares, private shareholders are diluted and stock prices fall. The use of public funds to private shareholders compensate for this dilution was considered and rejected as too expensive.
The Chinese government announced to invest in state-owned enterprises, a 15000000000 $ buy-out fund but the markets are very skeptical. My opinion is that the only solution is auctioning shares to private investors and the list underperforming and let them fight to survive.
Meanwhile, private companies hungry denied the opportunity to comment on these exchanges. Return to capital The result is that private Chinese companies rely on banks for 99% of their funding! This lopsided dependence on bank financing is unhealthy and also many Chinese banks are bogged down by mismanagement, bloated bureaucracy, corruption and politically motivated saddled with non-performing loans
Moreover, the Chinese stock market slump continues its listed companies in intensive care. China's 114 listed companies which are largely dependent on the trading commissions suffered a decline of 45% in sales in the first half of this year. Trading in the Chinese A-shares (for Chinese citizens) market has virtually disappeared. The Shanghai Composite Index is down 15% this year. The Chinese government also has an unofficial moratorium on new offers.
Second, maintaining state ownership and control of so many Chinese companies leads to a lack of transparency and openness that is necessary for China to participate fully as a member of the global community investment. Foreign institutional investors tend to invest indirectly to get better disclosure and listing requirements in China through the Hong Kong Stock Exchange. Preferred As an investment advisor, I advise clients to participate in China's growth by investing primarily in Hong Kong (EWH) Malaysia (EWM), Canada (EWC) Australia (EWA), and other Asian countries. The issue of China's dysfunctional financial markets has also led to our recommendation to clients that India, not China, the best performing Asian market may be in the next ten or twenty years.
The recent announcements of the Bank of America and HSBC to invest in two leading Chinese banks is a welcome step, but far short of the mark. Both are relatively small investments and both foreign investors will have little authority, nor have. Meaningful management responsibilities The Chinese want the publicity, the brand and the opportunity to learn, but are clearly not willing to assist. Sole control off
Look at what Indonesia is doing to open up to international investment. Its financial sector International investors are now the majority and management control and just last week a large Singapore and Malaysian bank announced plans to do in the Indonesian banks. Sizeable investments The Indonesian government is also drawing up a list of its 145 state-owned enterprises will be sold to investors. International investors have taken - the Indonesian stock market is doing well and our recommended Indonesia Fund (IF) is up 29% this year.
Third, if the recent high profile cases of Lenovo, Haier and CNOOC demonstrate, as state-owned Chinese companies seek to acquire or invest in foreign companies, the reaction is wariness, skepticism and outright political hostility. The Chinese leaders are trying groom about 100 of the largest companies going global in a big way and "brand hunting" of leading multinational companies with its excess cash ($ 700 billion of foreign exchange reserves) is the fastest way to achieve this goal. If you thought the Japanese spending spree in the 1980s was controversial in America - your seat belt.
The U.S. Congress and other foreign governments will resist these bids because they particularly enjoy a $ 200 billion bilateral trade surplus, little interest in having a foreign government, an economic competitor purchase of its most valued companies. The issue of Chinese bidders use of public funding is also a red flag. Then there is the issue of reciprocity - foreign companies can only minority stakes in Chinese state-owned enterprises and to obtain approval for even these minority interests is not transparent and very political.
Finally, there is the broad policy question to the intention of the Chinese Communist leadership. The slow pace of privatization and begrudge can reasonably be read as an indication that the Chinese government is not going to give up control of state-owned enterprises. Away This, in turn, has serious consequences as countries evaluate how a rapidly growing authoritarian country that seeks to participate in and benefit from the global economy with state-owned and state treat. Sponsored enterprises
The Chinese adage of "crossing the river by feeling the stones" can be a wise policy at times, but in this case a dip in the river would have been for the Chinese economy and the people. Much better ten years ago It is by no means too late to take the plunge and the U.S. should be ready to help in any way it can take.
Sunday, 29 December 2013
Friday, 27 December 2013
China's Inscrutable Currency Strategy
Purpose: Expose Opportunities for Smart Investors
Allow the relocation of the central bank of China to allow the yuan to the dollar falling rigid coupling on the day of my return after a three week trip to Asia left many questions unanswered. The basket of currencies that allegedly the value of the yuan will determine the future was not disclosed. What kind of band will be allowed to fluctuate within the currency is not entirely clear. The 2% revaluation of the currency on Thursday followed by a slight strengthening on Friday week may actually encourage further short-term speculation, as most economists believe the yuan is undervalued by about 10% to 20%. With $ 1000000000000 of trades each year and hot money inflows equal to 5% of GDP, the uncertainty about the Chinese currency is high.
Not in the mainland
In the short term, this uncertainty gives investors the opportunity to benefit not only the expected strengthening of the Chinese currency, but the overall growth of the Asian currencies against the dollar. In early 2005, I advised customers that the Euro rise against the dollar and Asian currencies to appreciate against the dollar would be the next area. It may turn out that many of your best China investment opportunities are not involved when investing in mainland Chinese companies at all.
Currency Direct Approach
The cleanest direct currency play on the expected rise in the yuan (also known as the renminbi) is a renminbi currency account opened at EverBank. A leading online bank ranked "Best of the Web" by Forbes, EverBank offers a variety of world currency accounts and FDIC backed three and six-month CDs offering attractive rates.
IShare Direct Approach
Another direct equity China play is through the China iShare (FXI) that the FTSE / Xianhua China 25 index composed of 25 of the largest and most liquid Chinese names tracks. FTSE index is a British company and Xianhua is a media company based in China.
All of the 25 shares in the China iShare are listed on the Hong Kong Stock Exchange. Some of them are listed in mainland China (H shares) and some of them are listed in Hong Kong (red chips). The total market capitalization of the index is $ 170 billion. The widest Xinhua China Index includes 1,355 listed companies with a total market capitalization of $ 550 billion.
To put this in perspective, the average market capitalization of a company in the S & P Global 100 Index is $ 70 billion. Again, that is for a company. The China iShare provides good exposure to three key sectors of China: energy (20%), telcom (19%) and industry (18%). This concentration can be viewed as a plus or minus one, depending on your perspective. For example, some smart investors are placing a greater commitment on China's consumer markets. The top five companies represent 40% of the index. The annual operating costs of China iShare are only 0.74% compared to 2% plus for other alternatives out there, including actively managed Asia and greater China region funds. Keep in mind that most of these companies are still largely controlled and owned by the Chinese government.
Indirect Approach
The best way to invest in China can be through more indirect vehicles that benefit from China's growth and moves its currency. An example of an indirect investment in China by the iShares Hong Kong (EWH). It has large allocations to Hong Kong real estate (33%), utilities (17%) and banking (16%). Having just returned from a trip to Hong Kong, it seems clear to me that real estate markets have a way to go before he too pricey. Supply is inflexible and even if prices rise as expected 30% in the next 18 months, the price level is still about 50% below where they were in 1997. Being the last Asian currency pegged to the dollar should encourage. Capital inflows to In addition, the Hong Kong market has been much more successful than the Shanghai and Shenzhen exchanges signaling that the financial capital of China in the near future will be.
Indirect Currency Play
China's move last week will also press for a number of other undervalued Asian currencies to appreciate. To compete with the Chinese export machine, many Asian countries resist letting their currencies rise, but now they have a little room to maneuver. The Malaysian ringgit was last week released from the peg to the dollar and rose 0.7% on the first day. While currency appreciation will slightly dampen export growth will also increase the cost of rising energy imports and analysts expect the economy to grow 5.5% this year. The easiest way to invest in Malaysia by the iShares Malaysia (EWM) holding a basket of leading companies listed on the exchange tracks. Another attraction - the annual fee for the iShares Malaysia is only 70 basis points.
The Play for the informed
Malaysia is often ignored by investors, although it is quiet but remarkably progressed from a relatively poor producer of raw materials into a vibrant and broadly diversified middle income country.
Malaysia, positioned along the strategically important Strait of Malacca, should be on every investors radar screen for the following reasons:
It has little foreign debt and healthy foreign exchange reserves. In the area, is slightly larger than New Mexico.
Malaysia has a balanced economy with a strong industrial and services sectors, important natural resources and openness to foreign investment.
It has a parliamentary system and divided powers between the central government and 16 states and the federal territories.
Malaysia is well positioned to benefit from growth in the region's main export and investment partners are Japan, China and the United States.
Natural resources include tin, petroleum, natural gas, wood, copper, iron ore, bauxite. Small but consistent exporter of oil and natural gas.
It has a young and increasingly educated population with a median age of 24 and a literacy rate of 90%.
Malaysia income per capita is almost $ 5,000. Solid middle-income country with growing middle class.
The Kuala Lumpur Stock Exchange, also known as Bursa Malaysia has over 800 listed companies.
Canada?
Another smart indirect China play would be to invest in the iShares Canada (EWC). The Chinese are going to buy one to invest in Canadian energy companies spree and recently plunked down $ 2 billion a thousand mile pipeline from tar sands in Alberta to the port on the west coast and on to Beijing and Shanghai to build. The Canada iShares MSCI Canada Index which follows the 40% exposure to Canada's energy and materials sectors.
Starbucks?
And what about Starbucks (SBUX) and China play? Starbucks has about 9,000 stores worldwide and in the first quarter of 2005 its turnover by 27% and sales more than $ 100 million. It entered the Chinese market in 1999 and has about 300 stores performed above expectations. The company hopes to expand to 30,000 stores and China is an important part of its expansion strategy. With 250 million Chinese approaching middle class and millions of new affluent status conscious youth, Starbucks expects that before long will China's second most important market. During my recent trip to China trip, I visited ten Starbucks stores and all of them had strong activity with many young Chinese enjoy not only coffee products, but the higher margin specialty drinks. Think the Chinese will always prefer tea? Japan shows that when reach certain tipping points, changing from tea to coffee. Consumer preferences the income level Starbucks always looks expensive, but many large companies always. Starbucks investors 43 times their investment in the 1992 IPO and sales increased by 27% in July.
China represents a huge opportunity for long-term investors, but an indirect approach, the smartest strategy.
Next week: find out what is the next big Asian Bull Market in the 21st Century - hint "It is not China!
Carl Delfeld is head of global consulting firm Chartwell Partners and editor of Chartwell Advisor and the Asia Investor Intelligence newsletters. He served on the Board of Directors of the Asian Development Bank and is the author of The New Global Investor (iUniverse: 2005). For more information go to or call 877-221-1496
Carl Delfeld is head of global consulting firm Chartwell Partners and is editor of the "Chartwell Advisor" and "Asia Investor Intelligence" newsletters. He served on the Board of Directors of the Asian Development Bank in Manila and is the author of The New Global Investor (iUniverse: 2005). For more information go to or call 877-221-1496.
Allow the relocation of the central bank of China to allow the yuan to the dollar falling rigid coupling on the day of my return after a three week trip to Asia left many questions unanswered. The basket of currencies that allegedly the value of the yuan will determine the future was not disclosed. What kind of band will be allowed to fluctuate within the currency is not entirely clear. The 2% revaluation of the currency on Thursday followed by a slight strengthening on Friday week may actually encourage further short-term speculation, as most economists believe the yuan is undervalued by about 10% to 20%. With $ 1000000000000 of trades each year and hot money inflows equal to 5% of GDP, the uncertainty about the Chinese currency is high.
Not in the mainland
In the short term, this uncertainty gives investors the opportunity to benefit not only the expected strengthening of the Chinese currency, but the overall growth of the Asian currencies against the dollar. In early 2005, I advised customers that the Euro rise against the dollar and Asian currencies to appreciate against the dollar would be the next area. It may turn out that many of your best China investment opportunities are not involved when investing in mainland Chinese companies at all.
Currency Direct Approach
The cleanest direct currency play on the expected rise in the yuan (also known as the renminbi) is a renminbi currency account opened at EverBank. A leading online bank ranked "Best of the Web" by Forbes, EverBank offers a variety of world currency accounts and FDIC backed three and six-month CDs offering attractive rates.
IShare Direct Approach
Another direct equity China play is through the China iShare (FXI) that the FTSE / Xianhua China 25 index composed of 25 of the largest and most liquid Chinese names tracks. FTSE index is a British company and Xianhua is a media company based in China.
All of the 25 shares in the China iShare are listed on the Hong Kong Stock Exchange. Some of them are listed in mainland China (H shares) and some of them are listed in Hong Kong (red chips). The total market capitalization of the index is $ 170 billion. The widest Xinhua China Index includes 1,355 listed companies with a total market capitalization of $ 550 billion.
To put this in perspective, the average market capitalization of a company in the S & P Global 100 Index is $ 70 billion. Again, that is for a company. The China iShare provides good exposure to three key sectors of China: energy (20%), telcom (19%) and industry (18%). This concentration can be viewed as a plus or minus one, depending on your perspective. For example, some smart investors are placing a greater commitment on China's consumer markets. The top five companies represent 40% of the index. The annual operating costs of China iShare are only 0.74% compared to 2% plus for other alternatives out there, including actively managed Asia and greater China region funds. Keep in mind that most of these companies are still largely controlled and owned by the Chinese government.
Indirect Approach
The best way to invest in China can be through more indirect vehicles that benefit from China's growth and moves its currency. An example of an indirect investment in China by the iShares Hong Kong (EWH). It has large allocations to Hong Kong real estate (33%), utilities (17%) and banking (16%). Having just returned from a trip to Hong Kong, it seems clear to me that real estate markets have a way to go before he too pricey. Supply is inflexible and even if prices rise as expected 30% in the next 18 months, the price level is still about 50% below where they were in 1997. Being the last Asian currency pegged to the dollar should encourage. Capital inflows to In addition, the Hong Kong market has been much more successful than the Shanghai and Shenzhen exchanges signaling that the financial capital of China in the near future will be.
Indirect Currency Play
China's move last week will also press for a number of other undervalued Asian currencies to appreciate. To compete with the Chinese export machine, many Asian countries resist letting their currencies rise, but now they have a little room to maneuver. The Malaysian ringgit was last week released from the peg to the dollar and rose 0.7% on the first day. While currency appreciation will slightly dampen export growth will also increase the cost of rising energy imports and analysts expect the economy to grow 5.5% this year. The easiest way to invest in Malaysia by the iShares Malaysia (EWM) holding a basket of leading companies listed on the exchange tracks. Another attraction - the annual fee for the iShares Malaysia is only 70 basis points.
The Play for the informed
Malaysia is often ignored by investors, although it is quiet but remarkably progressed from a relatively poor producer of raw materials into a vibrant and broadly diversified middle income country.
Malaysia, positioned along the strategically important Strait of Malacca, should be on every investors radar screen for the following reasons:
It has little foreign debt and healthy foreign exchange reserves. In the area, is slightly larger than New Mexico.
Malaysia has a balanced economy with a strong industrial and services sectors, important natural resources and openness to foreign investment.
It has a parliamentary system and divided powers between the central government and 16 states and the federal territories.
Malaysia is well positioned to benefit from growth in the region's main export and investment partners are Japan, China and the United States.
Natural resources include tin, petroleum, natural gas, wood, copper, iron ore, bauxite. Small but consistent exporter of oil and natural gas.
It has a young and increasingly educated population with a median age of 24 and a literacy rate of 90%.
Malaysia income per capita is almost $ 5,000. Solid middle-income country with growing middle class.
The Kuala Lumpur Stock Exchange, also known as Bursa Malaysia has over 800 listed companies.
Canada?
Another smart indirect China play would be to invest in the iShares Canada (EWC). The Chinese are going to buy one to invest in Canadian energy companies spree and recently plunked down $ 2 billion a thousand mile pipeline from tar sands in Alberta to the port on the west coast and on to Beijing and Shanghai to build. The Canada iShares MSCI Canada Index which follows the 40% exposure to Canada's energy and materials sectors.
Starbucks?
And what about Starbucks (SBUX) and China play? Starbucks has about 9,000 stores worldwide and in the first quarter of 2005 its turnover by 27% and sales more than $ 100 million. It entered the Chinese market in 1999 and has about 300 stores performed above expectations. The company hopes to expand to 30,000 stores and China is an important part of its expansion strategy. With 250 million Chinese approaching middle class and millions of new affluent status conscious youth, Starbucks expects that before long will China's second most important market. During my recent trip to China trip, I visited ten Starbucks stores and all of them had strong activity with many young Chinese enjoy not only coffee products, but the higher margin specialty drinks. Think the Chinese will always prefer tea? Japan shows that when reach certain tipping points, changing from tea to coffee. Consumer preferences the income level Starbucks always looks expensive, but many large companies always. Starbucks investors 43 times their investment in the 1992 IPO and sales increased by 27% in July.
China represents a huge opportunity for long-term investors, but an indirect approach, the smartest strategy.
Next week: find out what is the next big Asian Bull Market in the 21st Century - hint "It is not China!
Carl Delfeld is head of global consulting firm Chartwell Partners and editor of Chartwell Advisor and the Asia Investor Intelligence newsletters. He served on the Board of Directors of the Asian Development Bank and is the author of The New Global Investor (iUniverse: 2005). For more information go to or call 877-221-1496
Carl Delfeld is head of global consulting firm Chartwell Partners and is editor of the "Chartwell Advisor" and "Asia Investor Intelligence" newsletters. He served on the Board of Directors of the Asian Development Bank in Manila and is the author of The New Global Investor (iUniverse: 2005). For more information go to or call 877-221-1496.
Wednesday, 25 December 2013
Use this Simple Trick it's to Buy $100 Bills Direct from your Bank for only $97
Most people simply do not understand the power of using their home as a Wealth Creation Tool. How many people do you know who have lived in the same house for 10, 15 or more years and have virtually no mortgage, you know the type of 'House Rich Cash Poor'. There are strategies that homeowners can use to work on Building Wealth. Part that house Rich
Did you miss the Going Out of Business Sale at the Bank last week? They sold $ 100 bills for only $ 97. Darn you missed. OK the bank if they did, how many $ 100 Bills would not go out of business sales, but buy? I would back up the SUV on the bank and see how many Bills I could get in and then go back for as many trips as I could. Your bank is Selling $ 100 bills for $ 97 a backup of the SUV.
The equity in your home is like that Bank. If you can borrow money at 2% or less qualify and turn around and achieve return of 5% or more reasonably safe with Equity indexed annuities. In most cases, the money you borrow is tax deductible while the money you Indexed Equity Tax Deferred Annuity is.
Taking a closer look, if you borrow money at 2% and turn around and get a return of 5%, that means your net return is 3%. Evey For $ 100 you borrow you place $ 3 in your pocket. Wow really the bank is selling $ 100 Bills for only $ 97.00
Many lenders offer mortgages with fixed at 2% for the first 5 years of payment. What are you waiting for a backup that SUV and get your $ 100 bills today.
Mike Makler is a financial advisor in St Louis Missouri area specializing in Real Estate Loans and annuities. For more info call Mike at 314 398-5547 or visit Mike's homepage
Did you miss the Going Out of Business Sale at the Bank last week? They sold $ 100 bills for only $ 97. Darn you missed. OK the bank if they did, how many $ 100 Bills would not go out of business sales, but buy? I would back up the SUV on the bank and see how many Bills I could get in and then go back for as many trips as I could. Your bank is Selling $ 100 bills for $ 97 a backup of the SUV.
The equity in your home is like that Bank. If you can borrow money at 2% or less qualify and turn around and achieve return of 5% or more reasonably safe with Equity indexed annuities. In most cases, the money you borrow is tax deductible while the money you Indexed Equity Tax Deferred Annuity is.
Taking a closer look, if you borrow money at 2% and turn around and get a return of 5%, that means your net return is 3%. Evey For $ 100 you borrow you place $ 3 in your pocket. Wow really the bank is selling $ 100 Bills for only $ 97.00
Many lenders offer mortgages with fixed at 2% for the first 5 years of payment. What are you waiting for a backup that SUV and get your $ 100 bills today.
Mike Makler is a financial advisor in St Louis Missouri area specializing in Real Estate Loans and annuities. For more info call Mike at 314 398-5547 or visit Mike's homepage
Monday, 23 December 2013
How to Buy to Let
Discover everything you need to know about buy to let. Learn what to buy, where to buy and what not to buy. All about buy to let this information cost you a penny.
buy
o If the area is full of buy to let property investors the supply of homes would outweigh tenant demand and create pressure to reduce. rents
o Consider established areas with good communication links
o Research tenant demand as your top priority. Find a rental agent to discuss.
o Consider running costs, such as maintenance, service charges etc.
o Be prepared to buy investment properties tired and refurbishing them.
o Build a team of reliable dealers, so you can respond quickly.
o Find a good buy to let mortgage lender. Finding the right buy to let mortgage is crucial to your success if you are buying and selling investment properties.
To buy or not to buy for sale? Investment property
o Once you have a home you want to buy, have a walk To ad in the local press. If the phone is going to buy a piece. If not run away.
o A variation on the theme would be a display ad "Looking for long term tenants" I'm running a portfolio landlord. You can find your dream home and I will consider buying it and let back to you, "she
Question and professional guidance
Find a leasing company and discuss the demand for housing in the areas you are interested in. They should also be able to raise the level of the rent that you would expect to achieve and what type of lease is more suitable for the property and the area to give.
University Lettings
Talk to Student let officers - to build rapport so that they promote your property above others. They can about whether to give you good advice that is where, why, how, etc.
Buy Private
* With more and more people are turning to the internet to source suitable investment property for sale and for sellers looking to save money on the sales agent costs, more people are having the opportunity to buy and sell privately. The main difference is that you contact the seller of the property. This can be done via email or phone. Visits will be arranged between the buyer and seller and the price negotiations will be handled directly between the buyer and seller directly. However, you will still need to act on your behalves. Both counsel
Buy to Let Mortgages
Finding the right buy to let mortgage is crucial to your success as a real estate investor. Unlike other types of real estate investments, a large part of the capital that you invest in a buy to let investment property is likely to be borrowed. In recent years, the buy to let mortgage market boomed, with more and more lenders bringing out products making borrowing money to invest in this way even simpler than before. There are several buy to let mortgage products available from fixed rates, discounted variable rate, base rate trackers to name a few. Several It is worth remembering that different products suitable for various real estate investments may be.
However, it is very important that you correct guidance with your finances. Questions that are worth considering to let mortgage in finding a suitable buy:
1. Do they have access to many different buy to let market products?
2. They have the ability to make a long term property investment strategy for you?
3. Are they able to secure exclusive buy to let products?
4. Are they able to buy arrange to leave within 10 days? Mortgages
Most lenders offer a maximum loan of 85% which can be financed. Least a deposit of 15% The buy to let mortgage industry is highly competitive with new products on a very regular basis is launched.
Some brokers may charge a fee up to 2% of the buy to let you arrange the financing but do not let this put you off, because if they do have the exclusive opportunity to buy safe products for you to leave, would it is very beneficial to your cashflow as a landlord. Plus, if they are able to achieve in a very short time, formal mortgage offer stage this may lead to the ability to secure at very competitive prices if you have the opportunity to tell you that you can deal the seller investment have completed within a matter of a few weeks. Find out more about buy mortgages, landlord inventories, leases, landlord insurance, landlord tax, to buy and to monitor your credit tenants decor of your
and see how you can start your investment property portfolio.
There are a few simple steps to remember:
o Make sure you have done your research
o Source a good buy to let mortgage lender and make sure that your own personal credit file is clean.
o If you are not sure, then you need to apply a number of different websites that allow you to download a copy directly. copy of your personal credit
o Once you have an offer for the sale of investment property rental sale the seller have agreed, you need to appoint a lawyer. notary and exchange data with each other
o At this point your respective attorneys will then begin to settle. necessary legal work on your behalves to transfer the legal ownership of the real estate investment to the new investor
o Contact your buy to let mortgage lender and confirm the purchase price and loan amount required.
o A surveyor will then visit the investment properties for sale to carry out a valuation of the property and rental of an assessment. Some buy to let mortgage brokers can arrange on your behalf. Other buy to let mortgage companies will advise you when this will happen. However, it is worth considering the fact that as a buy to let mortgage lender is a complete packaging than they are able to spend to reduce. The time it takes for it to buy your formal mortgage offer
o Pending the report valuation on investment properties for sale to be returned, use this time for the completion and application forms will be forwarded to your buy to let mortgage lender. all legal paperwork that your lawyer will forward to you from your
o If the appraisal comes back and is satisfactory, you will receive your buy to let mortgage quote shortly thereafter. On occasions, you may be asked to specialist reports that a structural engineers report, damp and timber report and coal mining report also relates to obtain.
o to let mortgage quote A copy of the buy has directly to you and your lawyer.
o Your lawyers will then contact each other and exchange appropriate date and will provide the necessary paperwork completed for you on your new buy to let. home
Buy Insurance Let
buy to let o Insurance of your property is as important as ensuring your own home. As a landlord you have certain obligations so make sure you have the necessary coverage that your investment needs. There are a number of different options available depending on the type of property you have, for example when it comes to an apartment, apartment building, commercial property etc. But do shop around to make sure you have the best buy insurance to protect product.
Preparing for the investment itself out?
o This is an investment and cash flow is the key factor. Stick to neutral colors that will go with everything. For example, a red couch can not match a green carpet, but see all the colors look good on beige.
o carpets - light beige looks great when clean. Light colors make room look lighter, brighter and bigger. They also promote cleanliness and are easy to clean justify when a tenant releases. For felt to clean carpets that do not require underlay. Backed bleach Replace carpets every 3-5 years, clean each tenant and amortization of deposit.
o Contact the local landlord or more demand for furnished or unfurnished apartment in the area.
Join your local landlords association
o This is the easiest way to keep up with the law and to get information about getting your paperwork right advice.
o Other landlords in your area will be eager to share. good and bad experiences Learn from their experiences instead of making your own mistakes.
Tenant Application
o Provide complete information, including names, addresses and telephone numbers of referees and emergency contacts. Also obtain previous addresses, NI numbers, employer details and proof of earnings. This makes life easier if you ever need to track down an absconding tenant.
o If possible, fill out an application with the prospective tenants home. This will show you how they look after it. At the same time
Check your credit tenant
o It is now possible to check your credit tenants on-line. Just because they look smart and drive a nice car is no guarantee that your rent will arrive every month. We all know how easy it is to get credit these days so it's important that you peace of mind that your tenants have the real ability to pay it.
Fees
Compensation to tenants of about £ 100 for the completion of the lease, references, inventory etc.
Deposit-take 5-7 weeks rent plus one month rent monthly in advance
Tenants often cancel standing orders in the month prior to the final payment - if this happens you have some money to cover damage
Landlord Inventory
Get prepared. As much as we all like to think that we can rely on anyone, it is very important that the landlords 'buy to let' protection of their property investment as thoroughly as possible. Having an inventory in place will protect you from unnecessary costs and ensure that you maximize your profits at all times. For example, if your teaspoons kept going missing and the curtains kept leaving the piles left by the tenants, this would start to add up.
Imagine if you had to rent freshly decorated in a very neutral color magnolia sale for the property by discovering that your tenants a day had become creative and turned their hand to a bit of decorating brighten up the place! Not only will this cost you in paint, but you can potentially lose income on rent, while the investment property to empty, while it is being remodeled. And more importantly how can you prove that the property was that color or condition in the first place. Are simple. A Comprehensive Inventory landlord.
o Buy a landlord Inventory Online Now - include everything, including starting color, condition of walls, ceilings, doors, inventory, etc and get it signed, so that you can demonstrate paving damage to the tenant. The more detail the better, even under the color of light switches and door handles and what they are made of. Comments like "carpets are just professionally cleaned" or "walls are freshly painted" will also help to prevent disputes. At checkout
o Be sure to arrange a check of inspection and ensure that the tenant is present - have to sign to agree to any damage and / or required repairs them.
o Complete utility meter checks and balances the incoming / vacating tenant signs to confirm readings.
o Inform the utility companies and local authorities in writing of incoming / outgoing tenants and any meter
Rental agreement
You need to buy. A lease This will protect you and. Your tenants There are a number of leases that can be purchased off the shelf, but it is important that you should check out the lease. Ensure that it is suitable for the type of tenants For example, or make it or a property is let to sharers where they might be. Severally liable family A good lawyer would be able to draw up an appropriate agreement and for your own peace of mind, this small investment a very valuable exercise.
Look after your tenants - they are a valuable asset for your investment!
Fortunately tenants will respect your property and other potential tenants will refer to you.
If the above does not cost effective or convenient for you, then you should seriously consider using the services of a property / rental manager.
Discover more about buy to let and how you can start.
Jennifer Tweed is the founder of , one of the first home of the British portals dedicated to all types of investment property for sale and everything you should need for your sale and purchase. Learn more about to buy
buy
o If the area is full of buy to let property investors the supply of homes would outweigh tenant demand and create pressure to reduce. rents
o Consider established areas with good communication links
o Research tenant demand as your top priority. Find a rental agent to discuss.
o Consider running costs, such as maintenance, service charges etc.
o Be prepared to buy investment properties tired and refurbishing them.
o Build a team of reliable dealers, so you can respond quickly.
o Find a good buy to let mortgage lender. Finding the right buy to let mortgage is crucial to your success if you are buying and selling investment properties.
To buy or not to buy for sale? Investment property
o Once you have a home you want to buy, have a walk To ad in the local press. If the phone is going to buy a piece. If not run away.
o A variation on the theme would be a display ad "Looking for long term tenants" I'm running a portfolio landlord. You can find your dream home and I will consider buying it and let back to you, "she
Question and professional guidance
Find a leasing company and discuss the demand for housing in the areas you are interested in. They should also be able to raise the level of the rent that you would expect to achieve and what type of lease is more suitable for the property and the area to give.
University Lettings
Talk to Student let officers - to build rapport so that they promote your property above others. They can about whether to give you good advice that is where, why, how, etc.
Buy Private
* With more and more people are turning to the internet to source suitable investment property for sale and for sellers looking to save money on the sales agent costs, more people are having the opportunity to buy and sell privately. The main difference is that you contact the seller of the property. This can be done via email or phone. Visits will be arranged between the buyer and seller and the price negotiations will be handled directly between the buyer and seller directly. However, you will still need to act on your behalves. Both counsel
Buy to Let Mortgages
Finding the right buy to let mortgage is crucial to your success as a real estate investor. Unlike other types of real estate investments, a large part of the capital that you invest in a buy to let investment property is likely to be borrowed. In recent years, the buy to let mortgage market boomed, with more and more lenders bringing out products making borrowing money to invest in this way even simpler than before. There are several buy to let mortgage products available from fixed rates, discounted variable rate, base rate trackers to name a few. Several It is worth remembering that different products suitable for various real estate investments may be.
However, it is very important that you correct guidance with your finances. Questions that are worth considering to let mortgage in finding a suitable buy:
1. Do they have access to many different buy to let market products?
2. They have the ability to make a long term property investment strategy for you?
3. Are they able to secure exclusive buy to let products?
4. Are they able to buy arrange to leave within 10 days? Mortgages
Most lenders offer a maximum loan of 85% which can be financed. Least a deposit of 15% The buy to let mortgage industry is highly competitive with new products on a very regular basis is launched.
Some brokers may charge a fee up to 2% of the buy to let you arrange the financing but do not let this put you off, because if they do have the exclusive opportunity to buy safe products for you to leave, would it is very beneficial to your cashflow as a landlord. Plus, if they are able to achieve in a very short time, formal mortgage offer stage this may lead to the ability to secure at very competitive prices if you have the opportunity to tell you that you can deal the seller investment have completed within a matter of a few weeks. Find out more about buy mortgages, landlord inventories, leases, landlord insurance, landlord tax, to buy and to monitor your credit tenants decor of your
and see how you can start your investment property portfolio.
There are a few simple steps to remember:
o Make sure you have done your research
o Source a good buy to let mortgage lender and make sure that your own personal credit file is clean.
o If you are not sure, then you need to apply a number of different websites that allow you to download a copy directly. copy of your personal credit
o Once you have an offer for the sale of investment property rental sale the seller have agreed, you need to appoint a lawyer. notary and exchange data with each other
o At this point your respective attorneys will then begin to settle. necessary legal work on your behalves to transfer the legal ownership of the real estate investment to the new investor
o Contact your buy to let mortgage lender and confirm the purchase price and loan amount required.
o A surveyor will then visit the investment properties for sale to carry out a valuation of the property and rental of an assessment. Some buy to let mortgage brokers can arrange on your behalf. Other buy to let mortgage companies will advise you when this will happen. However, it is worth considering the fact that as a buy to let mortgage lender is a complete packaging than they are able to spend to reduce. The time it takes for it to buy your formal mortgage offer
o Pending the report valuation on investment properties for sale to be returned, use this time for the completion and application forms will be forwarded to your buy to let mortgage lender. all legal paperwork that your lawyer will forward to you from your
o If the appraisal comes back and is satisfactory, you will receive your buy to let mortgage quote shortly thereafter. On occasions, you may be asked to specialist reports that a structural engineers report, damp and timber report and coal mining report also relates to obtain.
o to let mortgage quote A copy of the buy has directly to you and your lawyer.
o Your lawyers will then contact each other and exchange appropriate date and will provide the necessary paperwork completed for you on your new buy to let. home
Buy Insurance Let
buy to let o Insurance of your property is as important as ensuring your own home. As a landlord you have certain obligations so make sure you have the necessary coverage that your investment needs. There are a number of different options available depending on the type of property you have, for example when it comes to an apartment, apartment building, commercial property etc. But do shop around to make sure you have the best buy insurance to protect product.
Preparing for the investment itself out?
o This is an investment and cash flow is the key factor. Stick to neutral colors that will go with everything. For example, a red couch can not match a green carpet, but see all the colors look good on beige.
o carpets - light beige looks great when clean. Light colors make room look lighter, brighter and bigger. They also promote cleanliness and are easy to clean justify when a tenant releases. For felt to clean carpets that do not require underlay. Backed bleach Replace carpets every 3-5 years, clean each tenant and amortization of deposit.
o Contact the local landlord or more demand for furnished or unfurnished apartment in the area.
Join your local landlords association
o This is the easiest way to keep up with the law and to get information about getting your paperwork right advice.
o Other landlords in your area will be eager to share. good and bad experiences Learn from their experiences instead of making your own mistakes.
Tenant Application
o Provide complete information, including names, addresses and telephone numbers of referees and emergency contacts. Also obtain previous addresses, NI numbers, employer details and proof of earnings. This makes life easier if you ever need to track down an absconding tenant.
o If possible, fill out an application with the prospective tenants home. This will show you how they look after it. At the same time
Check your credit tenant
o It is now possible to check your credit tenants on-line. Just because they look smart and drive a nice car is no guarantee that your rent will arrive every month. We all know how easy it is to get credit these days so it's important that you peace of mind that your tenants have the real ability to pay it.
Fees
Compensation to tenants of about £ 100 for the completion of the lease, references, inventory etc.
Deposit-take 5-7 weeks rent plus one month rent monthly in advance
Tenants often cancel standing orders in the month prior to the final payment - if this happens you have some money to cover damage
Landlord Inventory
Get prepared. As much as we all like to think that we can rely on anyone, it is very important that the landlords 'buy to let' protection of their property investment as thoroughly as possible. Having an inventory in place will protect you from unnecessary costs and ensure that you maximize your profits at all times. For example, if your teaspoons kept going missing and the curtains kept leaving the piles left by the tenants, this would start to add up.
Imagine if you had to rent freshly decorated in a very neutral color magnolia sale for the property by discovering that your tenants a day had become creative and turned their hand to a bit of decorating brighten up the place! Not only will this cost you in paint, but you can potentially lose income on rent, while the investment property to empty, while it is being remodeled. And more importantly how can you prove that the property was that color or condition in the first place. Are simple. A Comprehensive Inventory landlord.
o Buy a landlord Inventory Online Now - include everything, including starting color, condition of walls, ceilings, doors, inventory, etc and get it signed, so that you can demonstrate paving damage to the tenant. The more detail the better, even under the color of light switches and door handles and what they are made of. Comments like "carpets are just professionally cleaned" or "walls are freshly painted" will also help to prevent disputes. At checkout
o Be sure to arrange a check of inspection and ensure that the tenant is present - have to sign to agree to any damage and / or required repairs them.
o Complete utility meter checks and balances the incoming / vacating tenant signs to confirm readings.
o Inform the utility companies and local authorities in writing of incoming / outgoing tenants and any meter
Rental agreement
You need to buy. A lease This will protect you and. Your tenants There are a number of leases that can be purchased off the shelf, but it is important that you should check out the lease. Ensure that it is suitable for the type of tenants For example, or make it or a property is let to sharers where they might be. Severally liable family A good lawyer would be able to draw up an appropriate agreement and for your own peace of mind, this small investment a very valuable exercise.
Look after your tenants - they are a valuable asset for your investment!
Fortunately tenants will respect your property and other potential tenants will refer to you.
If the above does not cost effective or convenient for you, then you should seriously consider using the services of a property / rental manager.
Discover more about buy to let and how you can start.
Jennifer Tweed is the founder of , one of the first home of the British portals dedicated to all types of investment property for sale and everything you should need for your sale and purchase. Learn more about to buy
Saturday, 21 December 2013
The High Price of Oil
In less than four years, the price of oil has risen about 300%, or more than $ 50 per barrel. The Light Crude Continuous Contract (of oil futures) hit an all-time high at $ 67.80 per barrel Friday, and closed the week at $ 67.40 per barrel. Sustained high oil prices will ultimately slow economic growth, which in turn will lead to oil prices fall, ceritus paribus.
The two graphs below are same period daily charts of SPX (S & P 500) and OIH (an oil ETF, which is a basket of stocks). More than 15% of the SPX are energy and utilities stocks. The two graphs below SPX started the recent rally about a month for OIH. The graphs imply non-energy & utilities stocks fell last week or so, while the energy and utilities stocks remained high or increased further.
SPX held its 10 day MA to just over a week ago, while OIH continues to hold its 10 day MA. The Parabolic SAR (red dots) SPX is giving a sell signal, while OIH remains the buy signal. SPX should rise to about 1242 3/4 to trigger a buy signal, and OIH should fall below 115 3/4 to trigger a sell signal (see top left graph).
Perhaps, it would be safe to play waiting to close below its 10 day MA on OIH or fall below the Parabolic SAR Buy-level. However, I think if oil tests $ 70 (for example, next week or next week), the OIH sell signal, and perhaps an excellent opportunity to buy OIH September move (or turn on overvalued stocks) will be.
SPX has sold over the weekend in the past three weeks, which usually bear market behavior. However, next week is options expiration week. So, will somewhat skewed towards next Friday. The following are current August Max Pain expirations: SPX 1225 with the value of calls about three times the value of the puts (which is bearish because the put / call is a contrarian indicator). SPX closed at more than 1230 Friday. OEX (S & P 100) 570 with the value of the bucket than three times the value of the call (that is bullish). OEX closed at around 571 Friday. 39 QQQQ puts twice the value of the calls. QQQQ closed at about 39 1/4 Friday. It is interesting that the OEX put / call is about the mirror image of the SPX put / call, which may indicate institutions, which tend to buy large cap stocks are skeptical of a rising stock market.
Economic reports next week are: Mon: Empire State Index, Tue: CPI, industrial production, capacity utilization, building permits, and Housing Starts, Wed: PPI, Thu: Unemployment Claims, Leading Indicators, and Philadelphia Fed. Q: None. Recent data showed slowing and above trend growth with disinflation. A higher utilization rate would indicate. Future inflation The high oil price has a tendency to slow economic growth rather than cause inflation (in part, because the high price of oil is a tax on consumption, increasing the demand for non-energy goods decreases).
The big game can buy in September when put OIH and overvalued stocks bounce because OIH SPX was able to continue. Also options expiration week tends to be volatile, and the trading range to continue. So, there may be several other excellent trading opportunities next week.
Tickets available at Forum Index Market Overview section.
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimizing risks developed at the same time. This methodology has resulted in excellent returns with low risk over the past three years.
The two graphs below are same period daily charts of SPX (S & P 500) and OIH (an oil ETF, which is a basket of stocks). More than 15% of the SPX are energy and utilities stocks. The two graphs below SPX started the recent rally about a month for OIH. The graphs imply non-energy & utilities stocks fell last week or so, while the energy and utilities stocks remained high or increased further.
SPX held its 10 day MA to just over a week ago, while OIH continues to hold its 10 day MA. The Parabolic SAR (red dots) SPX is giving a sell signal, while OIH remains the buy signal. SPX should rise to about 1242 3/4 to trigger a buy signal, and OIH should fall below 115 3/4 to trigger a sell signal (see top left graph).
Perhaps, it would be safe to play waiting to close below its 10 day MA on OIH or fall below the Parabolic SAR Buy-level. However, I think if oil tests $ 70 (for example, next week or next week), the OIH sell signal, and perhaps an excellent opportunity to buy OIH September move (or turn on overvalued stocks) will be.
SPX has sold over the weekend in the past three weeks, which usually bear market behavior. However, next week is options expiration week. So, will somewhat skewed towards next Friday. The following are current August Max Pain expirations: SPX 1225 with the value of calls about three times the value of the puts (which is bearish because the put / call is a contrarian indicator). SPX closed at more than 1230 Friday. OEX (S & P 100) 570 with the value of the bucket than three times the value of the call (that is bullish). OEX closed at around 571 Friday. 39 QQQQ puts twice the value of the calls. QQQQ closed at about 39 1/4 Friday. It is interesting that the OEX put / call is about the mirror image of the SPX put / call, which may indicate institutions, which tend to buy large cap stocks are skeptical of a rising stock market.
Economic reports next week are: Mon: Empire State Index, Tue: CPI, industrial production, capacity utilization, building permits, and Housing Starts, Wed: PPI, Thu: Unemployment Claims, Leading Indicators, and Philadelphia Fed. Q: None. Recent data showed slowing and above trend growth with disinflation. A higher utilization rate would indicate. Future inflation The high oil price has a tendency to slow economic growth rather than cause inflation (in part, because the high price of oil is a tax on consumption, increasing the demand for non-energy goods decreases).
The big game can buy in September when put OIH and overvalued stocks bounce because OIH SPX was able to continue. Also options expiration week tends to be volatile, and the trading range to continue. So, there may be several other excellent trading opportunities next week.
Tickets available at Forum Index Market Overview section.
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimizing risks developed at the same time. This methodology has resulted in excellent returns with low risk over the past three years.
Thursday, 19 December 2013
Investing in Car Dealerships - How to Do it Right
The financial characteristics of the automobile dealership are attractive:
".... Moderate growth and risk and high return. Franchised new car dealer revenues have grown at a 7.2% annual rate approximately twice the rate of GDP. Moreover, this growth come with only moderate risk, since 1992, if the dealer body does not lose money (on a pre-tax basis) for a single year in the last twenty - even during the 1989-1991 industry down-cycle Finally, despite major changes in the structure of the automotive industry, dealer profitability remained high, with. pretax ROE averaged 26.1% over the past twenty years. " [Merrill Lynch, April 19, 2004 Report on "Automobile Dealers".]
Athletes from almost every major sport have invested in new car dealerships: Rick Hendrick, Roger Penske, John Elway, Troy Aikman, Evander Holyfield, Arnold Palmer, Michael Jordan, Scottie Pippen and Alex Rodriguez to name a few.
The idea is not new. Johnny Lujack, 1947 Heisman Trophy winner and Chicago Bear Pro-Bower, started a business in 1954 that would eventually expand to 16 franchises spread across 40 acres, with sales of more than 10,000 vehicles and $ 150 million per year. Lujack retired from the auto business after nearly 50 years as a successful trader.
WHEN IS THE RIGHT TIME?
"This is the time you have been waiting for," says Greg Gilmore in the June 2005 issue of Dealer Magazine.
Dealer Executive reported that last year (2004) ranked as the 4th best for new sales unit by new franchise dealers. Total dealership dollars exceeded $ 714 billion, an increase of more than 2% from 2003.
The fact is that when is the right time. In 1991, in the depths of a car depression, John Elway asked me, prior to the signing of the purchase contract, as "this" (1991) was the right time to buy. I told him it's how you buy and how you sell that count. That year he made a $ 20 million investment. At the time he had a Mazda store on Arapahoe Road, Englewood. I sold the Mazda franchise for him and Nissan gave into the old Mazda building. Him its franchise Shortly thereafter, I put together another transaction that had John buy the Mazda store on 104th Avenue in Thornton. John then terminated Suzuki and put the Mazda store with his Oldsmobile and Hyundai franchises. Then he bought another dealership (a Ford franchise) and then, in 1995, sold the whole package to Republic Industries for $ 86 million.
Many people were afraid to buy a dealer in 1991 and thought that John took a big gamble. But he did not "gambling". He structured his purchases and sales correctly, and then capitalized on his investment.
For example, although GM and Ford lost money (as they did in 1991), individual dealers made millions, according to the NADA (National Automobile Dealers Association) and Automotive News statistics, the average dealers pretax margin varies between one and two percent of their total turnover. Why? The dealers capture a broader business base than the manufacturer. While the manufacturer makes its money on new car sales, the dealers have the extra power of the parts departments, service departments, used car departments, finance departments, insurance departments and, in some cases, bodyshops. Consequently, while the manufacturer is dependent on the sale of new cars each year, the success of a dealer is more based on the total number of vehicles in use.
DOES IT MATTER DISTRIBUTION AGREEMENT'S HISTORY?
A little, but do not be intimidated by it. After Jimmy Vasser won the CART racing championship for Target, I've put together a transaction for a Jimmy dueled Chevrolet-Toyota franchise, in Napa, that lost money for the last 10 consecutive years to buy. I put together a dealer manager Jimmy and Jimmy's father, who some previous used car experience, as used car had signed-on manager.
Then, after a visit to dealer school and passing the chairs, Jimmy's father took over as general manager, the store flourished, and Jimmy not only bought the dealership land and facility, but bought the Ford store in the next town, and builds currently have a new Toyota store so its Chevrolet and Toyota franchises can separate facilities.
WHAT IS TO BE SUCCESSFUL?
Good advice. Good advice is both important and difficult to find. In the words of Trace Armstrong, former president of the NFL Players Association: ".. There is just so much bad advice that is given to these guys is really a bit scary" [Reported by Eric Fisher, March 27, 2000.]
As with the Entertainment and Sports Industries, there is so much money in the car business, everyone wants to get a piece of it. Consequently, everyone thinks he or she is an expert in analyzing and structuring deals, when in fact they just want a broker who receives a commission from the deal.
Sidebar: New car dealership revenues reached nearly a trillion dollars in 2004. The dealers and dealer related industries represent over 15% of the Gross National Product of the United States.
HOW TO CREATE A SUCCESSFUL TEAM?
An investor has a team. In general, it is the same team that they, supplemented by an expert in the car business. Do not be lulled into a false sense of security that loyalty is synonymous with the "factory" or "bankers".
For example, Ford made one of his black dealers (a superstar athlete) the point man, brokering meetings with senior executives and acting as a link between the company and Jesse Jackson. He mediated disputes between Ford and its dealers, and he promoted the company in public appearances. He even had a close relationship with some Ford family.
"He had some friends in high places," said John Clissold, a retired Ford Credit executive. "[The head of Ford Credit] was a very strong supporter." But, when the trouble came, it did not matter. Business was business. "... A factory executive familiar with the situation summed up the prevailing feeling at headquarters:" [Superstar] was heading for a precipice and we were not going on with him. '"[Story by Bill Vlasic and Mark Truby / The Detroit News Sunday, May 26, 2002.]
The fact is that the factory and bank employees have a duty to do what is best for the factory or bank, not what is best for your client. It's the law. They have a legal obligation to their shareholders - no matter how beautiful or how close your client is for them.
Financial statements and an auditor are not enough. Your client needs a member of your team, that's a student of the industry. A profitable automotive statement can be certified and comply with all the principles of accounting, but still bring a false impression of success. There are so many obstacles in defining and structuring automotive transactions, that your customer needs an expert in the field who can determine both car deal is best for the athlete and what is the best way to get it.
So while you may include auditors, lawyers, agents and managers team who are excellent at their jobs, unless a student of the industry is added (someone who does nothing but structure buys and sells each day), a key ingredient for success will fail.
Thinking in terms of a sports or business. If a person wants to make a championship team in a particular sport is made with people who play the game 50% of the time, 75% of the time, or someone who plays it every day?
Remember: The nicest thing she ever said about Richard Nixon was:. "He looks like a used car salesman '
Mr. Pico served as a court appointed "Consultant to Debtor" in bankruptcy, a court-appointed mediator "in automotive disputes, the" Court appointed Arbitrator / Appraiser "in partnership disputes, a" Court Approved Consultant to Receiver "in a check -kiting case as a "Superior Court Mediator" in dealership / lender litigation and is recognized as an expert witness in both state and federal level.
He has consulted on upside positions for more than $ 50 million from trust position of over $ 4 million and an overdraft of $ 30 million. Since 1972, Mr. Pico than 1,000 dealership transactions, whose combined values exceed a billion dollars delivered. In 1986, he authored and National Legal Publishing Company published the nation's first book on buying and selling Automobile Dealers. You can view his biography on
Joshua J. Pico, who both studied and co-author of this article is a graduate of Johns Hopkins University, has been working on both domestic and import dealer sales.
".... Moderate growth and risk and high return. Franchised new car dealer revenues have grown at a 7.2% annual rate approximately twice the rate of GDP. Moreover, this growth come with only moderate risk, since 1992, if the dealer body does not lose money (on a pre-tax basis) for a single year in the last twenty - even during the 1989-1991 industry down-cycle Finally, despite major changes in the structure of the automotive industry, dealer profitability remained high, with. pretax ROE averaged 26.1% over the past twenty years. " [Merrill Lynch, April 19, 2004 Report on "Automobile Dealers".]
Athletes from almost every major sport have invested in new car dealerships: Rick Hendrick, Roger Penske, John Elway, Troy Aikman, Evander Holyfield, Arnold Palmer, Michael Jordan, Scottie Pippen and Alex Rodriguez to name a few.
The idea is not new. Johnny Lujack, 1947 Heisman Trophy winner and Chicago Bear Pro-Bower, started a business in 1954 that would eventually expand to 16 franchises spread across 40 acres, with sales of more than 10,000 vehicles and $ 150 million per year. Lujack retired from the auto business after nearly 50 years as a successful trader.
WHEN IS THE RIGHT TIME?
"This is the time you have been waiting for," says Greg Gilmore in the June 2005 issue of Dealer Magazine.
Dealer Executive reported that last year (2004) ranked as the 4th best for new sales unit by new franchise dealers. Total dealership dollars exceeded $ 714 billion, an increase of more than 2% from 2003.
The fact is that when is the right time. In 1991, in the depths of a car depression, John Elway asked me, prior to the signing of the purchase contract, as "this" (1991) was the right time to buy. I told him it's how you buy and how you sell that count. That year he made a $ 20 million investment. At the time he had a Mazda store on Arapahoe Road, Englewood. I sold the Mazda franchise for him and Nissan gave into the old Mazda building. Him its franchise Shortly thereafter, I put together another transaction that had John buy the Mazda store on 104th Avenue in Thornton. John then terminated Suzuki and put the Mazda store with his Oldsmobile and Hyundai franchises. Then he bought another dealership (a Ford franchise) and then, in 1995, sold the whole package to Republic Industries for $ 86 million.
Many people were afraid to buy a dealer in 1991 and thought that John took a big gamble. But he did not "gambling". He structured his purchases and sales correctly, and then capitalized on his investment.
For example, although GM and Ford lost money (as they did in 1991), individual dealers made millions, according to the NADA (National Automobile Dealers Association) and Automotive News statistics, the average dealers pretax margin varies between one and two percent of their total turnover. Why? The dealers capture a broader business base than the manufacturer. While the manufacturer makes its money on new car sales, the dealers have the extra power of the parts departments, service departments, used car departments, finance departments, insurance departments and, in some cases, bodyshops. Consequently, while the manufacturer is dependent on the sale of new cars each year, the success of a dealer is more based on the total number of vehicles in use.
DOES IT MATTER DISTRIBUTION AGREEMENT'S HISTORY?
A little, but do not be intimidated by it. After Jimmy Vasser won the CART racing championship for Target, I've put together a transaction for a Jimmy dueled Chevrolet-Toyota franchise, in Napa, that lost money for the last 10 consecutive years to buy. I put together a dealer manager Jimmy and Jimmy's father, who some previous used car experience, as used car had signed-on manager.
Then, after a visit to dealer school and passing the chairs, Jimmy's father took over as general manager, the store flourished, and Jimmy not only bought the dealership land and facility, but bought the Ford store in the next town, and builds currently have a new Toyota store so its Chevrolet and Toyota franchises can separate facilities.
WHAT IS TO BE SUCCESSFUL?
Good advice. Good advice is both important and difficult to find. In the words of Trace Armstrong, former president of the NFL Players Association: ".. There is just so much bad advice that is given to these guys is really a bit scary" [Reported by Eric Fisher, March 27, 2000.]
As with the Entertainment and Sports Industries, there is so much money in the car business, everyone wants to get a piece of it. Consequently, everyone thinks he or she is an expert in analyzing and structuring deals, when in fact they just want a broker who receives a commission from the deal.
Sidebar: New car dealership revenues reached nearly a trillion dollars in 2004. The dealers and dealer related industries represent over 15% of the Gross National Product of the United States.
HOW TO CREATE A SUCCESSFUL TEAM?
An investor has a team. In general, it is the same team that they, supplemented by an expert in the car business. Do not be lulled into a false sense of security that loyalty is synonymous with the "factory" or "bankers".
For example, Ford made one of his black dealers (a superstar athlete) the point man, brokering meetings with senior executives and acting as a link between the company and Jesse Jackson. He mediated disputes between Ford and its dealers, and he promoted the company in public appearances. He even had a close relationship with some Ford family.
"He had some friends in high places," said John Clissold, a retired Ford Credit executive. "[The head of Ford Credit] was a very strong supporter." But, when the trouble came, it did not matter. Business was business. "... A factory executive familiar with the situation summed up the prevailing feeling at headquarters:" [Superstar] was heading for a precipice and we were not going on with him. '"[Story by Bill Vlasic and Mark Truby / The Detroit News Sunday, May 26, 2002.]
The fact is that the factory and bank employees have a duty to do what is best for the factory or bank, not what is best for your client. It's the law. They have a legal obligation to their shareholders - no matter how beautiful or how close your client is for them.
Financial statements and an auditor are not enough. Your client needs a member of your team, that's a student of the industry. A profitable automotive statement can be certified and comply with all the principles of accounting, but still bring a false impression of success. There are so many obstacles in defining and structuring automotive transactions, that your customer needs an expert in the field who can determine both car deal is best for the athlete and what is the best way to get it.
So while you may include auditors, lawyers, agents and managers team who are excellent at their jobs, unless a student of the industry is added (someone who does nothing but structure buys and sells each day), a key ingredient for success will fail.
Thinking in terms of a sports or business. If a person wants to make a championship team in a particular sport is made with people who play the game 50% of the time, 75% of the time, or someone who plays it every day?
Remember: The nicest thing she ever said about Richard Nixon was:. "He looks like a used car salesman '
Mr. Pico served as a court appointed "Consultant to Debtor" in bankruptcy, a court-appointed mediator "in automotive disputes, the" Court appointed Arbitrator / Appraiser "in partnership disputes, a" Court Approved Consultant to Receiver "in a check -kiting case as a "Superior Court Mediator" in dealership / lender litigation and is recognized as an expert witness in both state and federal level.
He has consulted on upside positions for more than $ 50 million from trust position of over $ 4 million and an overdraft of $ 30 million. Since 1972, Mr. Pico than 1,000 dealership transactions, whose combined values exceed a billion dollars delivered. In 1986, he authored and National Legal Publishing Company published the nation's first book on buying and selling Automobile Dealers. You can view his biography on
Joshua J. Pico, who both studied and co-author of this article is a graduate of Johns Hopkins University, has been working on both domestic and import dealer sales.
Tuesday, 17 December 2013
Investing in Car Dealerships - Doing Your Homework
This article attempts to help give the investor a broader basis on which to decide whether a dealership merits their time, money and attention.
Interviewing Factories and Financial Institutions
Lenders have an affirmative duty not to promiscuously disclose the financial position of their debtors. In addition, most sales and service agreements contain confidentiality agreements, relating to the unauthorized disclosure of a dealer company. Consequently, the questions addressed are limited to relevant, non-confidential questions. Factories and finance
Responsibilities of the Buyer
230 Can 684, 640 P2D 1235 found that not only was a bank under no obligation to information available to a borrower who intends to buy a dealer but that the investor was not the responsibility of the exercise of reasonable diligence for his own protection avoid. See also: 387 NW2d 373 (Iowa) and 773 F2D 771 (7th Cir.) A buyer may not abandon all caution and responsibility for his own protection and unilaterally to impose another without a conscious assumption of such duties a fiduciary relationship by the one sought to be held liable if. fiduciary 724 SW2d 343
Courts have even argued that auditors a vendor at discovery statements of his client were misleading at the time they were handed, had no duty to correct them, although they were included in a prospectus. See: 513 608 FSupp N.D. Georgia
The physical inspection of the dealer
Due diligence requires more of a physical inspection of the dealer than looking for flaws in the facility, EPA or OSHA or potential problems. An experienced consultant can suggest how well a potential seller works by visiting the facility. Issues such as whether the sales people are energetic or lethargic, the amount of time it takes sales staff to greet or customers the store is clean and well maintained, or awards plaques are kept, though, the financial condition of the dealership.
Public Information
Data can be obtained from publicly available information to determine not only the financial strength of the dealer but it may also suggest how a more attractable to structure a seller. Sometimes a seller will be less money because of the way the offer was structured to accept. Determining what a seller needs, then find a way to get him or her to get it.
UCC-1, title and mechanic lien searches to provide without obtaining to search and without violating contractual relationships with lenders. Authorize credit reports all information
The fallibility of Dealership statements
Dealers are required to file financial statements each month. These statements should not be relied upon in making materially from those projected.
A profitable parts department and a loss of service department can mean that the service department is doing badly, or that a strong component manager is harassing the service manager in paying too much for the part.
Industry Guides are available for each area of the business of a dealer. However, guides are good servants but bad masters. They are prepared by different groups with different sources. A potential buyer must:
(1) Compare actual performance figures the dealer selling to the guides and obtain explanations for any deviations, and
(2) Create a pro forma statement, based on the expected revenue and expected gross profit and cost, based on personal experience, rather than the experience of the selling dealer.
(3) identify inconsistencies and irregularities in the statements, and strive for a more thorough examination of these items.
Accounts no answers about a dealer to offer, they present a method to formulate to seek answers. Intelligent questions
Keys to analyze dealer Statements
Consistency should exist from month to month in each individual account. All inventory and invoices should be compared. Mee and receive an explanation regarding large fluctuations.
Buy without relying
One buys a dealer without relying solely on the financial statements of a seller in the same way a manufacturer opens a new point. Large differences in these approaches generally benefit the benefit of the buyer. Yellow page advertising;, or vehicles prepared for service on the day after escrow closes for example, when opening a new store, no existing parts wholesale business, retail basis.
Buying an existing business, on the other hand, provides that all, as well as "historical" versus "projected" to use the expectations data.
In addition to reviewing financial statements, three additional questions to be answered before making projections for a new dealership:
(A) the current retail volume;
(B) the planning potential, at closing, and
(C) the new rent-factor.
With those three figures, one can profit from the dealer's guesstimate under good management, and he answers to these questions can be obtained from the factory and a reading of the lease.
Officer, director and shareholder approval
Most dealers are included, or LLCs, and a check with the Secretary of State or Corporations Commissioner will reveal the shareholders, directors and officers of the corporation, and the members of an LLC. A check of the local administration will generally reveal a dba, or partnership, or a partnership agreement or stock is pledged or encumbered and, if so, to whom.
Information regarding shareholders and officials should be obtained from sources in addition to the factory, if the factory all the information necessary to the buyer that he or she actually negotiate with the person who has the power to make a contract property insurance can not have. Dealers sometimes sell without the factory. Silent partners, or an interest in the company In both cases, a potential buyer will be tricked into negotiations with the wrong party.
You need this information to make sure to negotiate with the right party. In 796 F2D 345 (10th Cir), Michael Gage, president of Michael Gage Chevrolet, signed a "Memorandum of Agreement" to sell his shop. He did not have permission of both the board of directors or the shareholders of the company. Subsequently, the Board of Directors and the shareholders agreement rejected Gage and entered and approved a Buy-Sell agreement with another party which was consummated.
Gage sued the Board of Directors and the shareholders. The state court dismissed Gage and resubmitted to the federal court. The federal judge ruled that when Gage (the dealer) signed to sell a "Memorandum of Agreement" without the consent of the directors or shareholders, and he had "no such authority (he) is not legally binding contract to the assets of the company sell. "
Be aware: states differ with respect to the number of shareholders voting. Some require 100%, a two-thirds majority and some simple majority.
Lawyers, accountants, brokers and other Automotive Consultants
Attempt to determine advisors of the other party and whether they have talent, are knowledgeable regarding the automotive industry, and their reputation for accuracy and keeping their word. After an investigation is completed, a decision must be taken or not to proceed. Some purchases should be avoided, regardless of the attraction.
To draw on the Business Questions
Why did the dealer Fail or Succeed?
As in "Valuation of the automobile" (a topic for another article), the critical question is not whether the financial statements give a selling dealer reflect a gain or loss, but why?
The fact a financial statement shows a large net operating profit and a large number of cars sold is not to answer why it is profitable. Sufficient answer Other questions must be answered before the project or new management will make a profit and before deciding on a reasonable range for the dealer.
Actual sales versus Planning Potential
Planning is potentially important for several reasons, such as vehicles allocation, build-out allotments, capitalization requirements and reasonable expectations. Planning a low potential and high volume sales can mean that the working capital requirements are unrealistic. It is almost impossible to be at a dealer too high or too low capitalized profitable.
When ask the factory about planning potential, not only inform about the number, but also the way in which the planning is coming, the date it was established, when updated, expected or reflects sales in the market area and if not, why not.
Field sales and service Responsibility
The dealer's area of geographic sales and service is important, responsible both with respect to the surrounding dealers, and with respect to whether the plant is planning to open a store closes or opens a new store. Will be less value to future projections as factory planning points to add or remove. Past service and sales numbers
Informing the factory, which would be the planning, taking into account the recently closed or open point. Potential requirements
Significant Document Checklist
While some of the items are important when dealing with a stock sale, compared to an asset sale, the prospective buyer or its advisors prepare a "significant document checklist collect them all.
In addition, the consultants should be sure to check on insurance, as we address cases in which the address is insured was not the address where the dealer was located encountered.
Finally, the right advisors have a good understanding of the past, pending and potential lawsuits, DMV, factory and finance problems, along with any settlements, payment of sales taxes and whether or not favorable unemployment rates can be transferred .
Mr. Pico served as a court appointed "Consultant to Debtor" in bankruptcy, a court-appointed mediator "in automotive disputes, the" Court appointed Arbitrator / Appraiser "in partnership disputes, a" Court Approved Consultant to Receiver "in a check -kiting case as a "Superior Court Mediator" in dealership / lender litigation and is recognized as an expert witness in both state and federal level.
He has consulted on upside positions for more than $ 50 million from trust position of over $ 4 million and an overdraft of $ 30 million. Since 1972, Mr. Pico than 1,000 dealership transactions, whose combined values exceed a billion dollars delivered.
In 1986, he authored and National Legal Publishing Company published the nation's first book on buying and selling Automobile Dealers. You can view his biography
Interviewing Factories and Financial Institutions
Lenders have an affirmative duty not to promiscuously disclose the financial position of their debtors. In addition, most sales and service agreements contain confidentiality agreements, relating to the unauthorized disclosure of a dealer company. Consequently, the questions addressed are limited to relevant, non-confidential questions. Factories and finance
Responsibilities of the Buyer
230 Can 684, 640 P2D 1235 found that not only was a bank under no obligation to information available to a borrower who intends to buy a dealer but that the investor was not the responsibility of the exercise of reasonable diligence for his own protection avoid. See also: 387 NW2d 373 (Iowa) and 773 F2D 771 (7th Cir.) A buyer may not abandon all caution and responsibility for his own protection and unilaterally to impose another without a conscious assumption of such duties a fiduciary relationship by the one sought to be held liable if. fiduciary 724 SW2d 343
Courts have even argued that auditors a vendor at discovery statements of his client were misleading at the time they were handed, had no duty to correct them, although they were included in a prospectus. See: 513 608 FSupp N.D. Georgia
The physical inspection of the dealer
Due diligence requires more of a physical inspection of the dealer than looking for flaws in the facility, EPA or OSHA or potential problems. An experienced consultant can suggest how well a potential seller works by visiting the facility. Issues such as whether the sales people are energetic or lethargic, the amount of time it takes sales staff to greet or customers the store is clean and well maintained, or awards plaques are kept, though, the financial condition of the dealership.
Public Information
Data can be obtained from publicly available information to determine not only the financial strength of the dealer but it may also suggest how a more attractable to structure a seller. Sometimes a seller will be less money because of the way the offer was structured to accept. Determining what a seller needs, then find a way to get him or her to get it.
UCC-1, title and mechanic lien searches to provide without obtaining to search and without violating contractual relationships with lenders. Authorize credit reports all information
The fallibility of Dealership statements
Dealers are required to file financial statements each month. These statements should not be relied upon in making materially from those projected.
A profitable parts department and a loss of service department can mean that the service department is doing badly, or that a strong component manager is harassing the service manager in paying too much for the part.
Industry Guides are available for each area of the business of a dealer. However, guides are good servants but bad masters. They are prepared by different groups with different sources. A potential buyer must:
(1) Compare actual performance figures the dealer selling to the guides and obtain explanations for any deviations, and
(2) Create a pro forma statement, based on the expected revenue and expected gross profit and cost, based on personal experience, rather than the experience of the selling dealer.
(3) identify inconsistencies and irregularities in the statements, and strive for a more thorough examination of these items.
Accounts no answers about a dealer to offer, they present a method to formulate to seek answers. Intelligent questions
Keys to analyze dealer Statements
Consistency should exist from month to month in each individual account. All inventory and invoices should be compared. Mee and receive an explanation regarding large fluctuations.
Buy without relying
One buys a dealer without relying solely on the financial statements of a seller in the same way a manufacturer opens a new point. Large differences in these approaches generally benefit the benefit of the buyer. Yellow page advertising;, or vehicles prepared for service on the day after escrow closes for example, when opening a new store, no existing parts wholesale business, retail basis.
Buying an existing business, on the other hand, provides that all, as well as "historical" versus "projected" to use the expectations data.
In addition to reviewing financial statements, three additional questions to be answered before making projections for a new dealership:
(A) the current retail volume;
(B) the planning potential, at closing, and
(C) the new rent-factor.
With those three figures, one can profit from the dealer's guesstimate under good management, and he answers to these questions can be obtained from the factory and a reading of the lease.
Officer, director and shareholder approval
Most dealers are included, or LLCs, and a check with the Secretary of State or Corporations Commissioner will reveal the shareholders, directors and officers of the corporation, and the members of an LLC. A check of the local administration will generally reveal a dba, or partnership, or a partnership agreement or stock is pledged or encumbered and, if so, to whom.
Information regarding shareholders and officials should be obtained from sources in addition to the factory, if the factory all the information necessary to the buyer that he or she actually negotiate with the person who has the power to make a contract property insurance can not have. Dealers sometimes sell without the factory. Silent partners, or an interest in the company In both cases, a potential buyer will be tricked into negotiations with the wrong party.
You need this information to make sure to negotiate with the right party. In 796 F2D 345 (10th Cir), Michael Gage, president of Michael Gage Chevrolet, signed a "Memorandum of Agreement" to sell his shop. He did not have permission of both the board of directors or the shareholders of the company. Subsequently, the Board of Directors and the shareholders agreement rejected Gage and entered and approved a Buy-Sell agreement with another party which was consummated.
Gage sued the Board of Directors and the shareholders. The state court dismissed Gage and resubmitted to the federal court. The federal judge ruled that when Gage (the dealer) signed to sell a "Memorandum of Agreement" without the consent of the directors or shareholders, and he had "no such authority (he) is not legally binding contract to the assets of the company sell. "
Be aware: states differ with respect to the number of shareholders voting. Some require 100%, a two-thirds majority and some simple majority.
Lawyers, accountants, brokers and other Automotive Consultants
Attempt to determine advisors of the other party and whether they have talent, are knowledgeable regarding the automotive industry, and their reputation for accuracy and keeping their word. After an investigation is completed, a decision must be taken or not to proceed. Some purchases should be avoided, regardless of the attraction.
To draw on the Business Questions
Why did the dealer Fail or Succeed?
As in "Valuation of the automobile" (a topic for another article), the critical question is not whether the financial statements give a selling dealer reflect a gain or loss, but why?
The fact a financial statement shows a large net operating profit and a large number of cars sold is not to answer why it is profitable. Sufficient answer Other questions must be answered before the project or new management will make a profit and before deciding on a reasonable range for the dealer.
Actual sales versus Planning Potential
Planning is potentially important for several reasons, such as vehicles allocation, build-out allotments, capitalization requirements and reasonable expectations. Planning a low potential and high volume sales can mean that the working capital requirements are unrealistic. It is almost impossible to be at a dealer too high or too low capitalized profitable.
When ask the factory about planning potential, not only inform about the number, but also the way in which the planning is coming, the date it was established, when updated, expected or reflects sales in the market area and if not, why not.
Field sales and service Responsibility
The dealer's area of geographic sales and service is important, responsible both with respect to the surrounding dealers, and with respect to whether the plant is planning to open a store closes or opens a new store. Will be less value to future projections as factory planning points to add or remove. Past service and sales numbers
Informing the factory, which would be the planning, taking into account the recently closed or open point. Potential requirements
Significant Document Checklist
While some of the items are important when dealing with a stock sale, compared to an asset sale, the prospective buyer or its advisors prepare a "significant document checklist collect them all.
In addition, the consultants should be sure to check on insurance, as we address cases in which the address is insured was not the address where the dealer was located encountered.
Finally, the right advisors have a good understanding of the past, pending and potential lawsuits, DMV, factory and finance problems, along with any settlements, payment of sales taxes and whether or not favorable unemployment rates can be transferred .
Mr. Pico served as a court appointed "Consultant to Debtor" in bankruptcy, a court-appointed mediator "in automotive disputes, the" Court appointed Arbitrator / Appraiser "in partnership disputes, a" Court Approved Consultant to Receiver "in a check -kiting case as a "Superior Court Mediator" in dealership / lender litigation and is recognized as an expert witness in both state and federal level.
He has consulted on upside positions for more than $ 50 million from trust position of over $ 4 million and an overdraft of $ 30 million. Since 1972, Mr. Pico than 1,000 dealership transactions, whose combined values exceed a billion dollars delivered.
In 1986, he authored and National Legal Publishing Company published the nation's first book on buying and selling Automobile Dealers. You can view his biography
Sunday, 15 December 2013
Credit Scores = ROI Profits for Real Estate Investors
Strong credit saves real estate investors money on mortgage finance. A good credit score, along with other credit and mortgage qualifications, means that investors can pay lower fees for financing, such as points and interest. Also good credit scores help prevent garbage fees associated with nonprime loans.
But to make the real money for real estate investors difference comes into play in the return on investment (ROI). When you are with other people's money fund to build up your credit score over 720, the way to open multiple investment properties. Today you can finance investment property for as little as 5% down when you meet the qualifying credit requirement. This means that your ROI can be significant. On your cash investment for the deposit
For example, let's take a home I found in Bradenton, Florida. Built in 1999, this 3 bedroom, 2 bath, 1600 square foot home looks like a great buy for only $ 219,000. Assume that the property can be purchased for $ 215,000. With strong credit, down 5% cash investment of $ 10,750 buys in the appraisal value of $ 215,000. A lower credit score would mean that you would have to put down 10% -25% or more, which lowers your return on investment. You would need $ 21500-53750 $ down to buy the same $ 215,000 investment rating. In this case, reduce your ROI for your cash outlay considerably.
Of course, other factors, such as carrying costs affect your investment opportunities. The point: get your credit score over 720, so when you're ready to buy investment property, you get the best return on your money.
Copyright © 2005 Jeanette J. Fisher. All rights reserved
Jeanette Fisher, author of Credit Help! Get the credit you need to buy real estate, interior design and real estate books, has secured credit qualifications studied alongside credit scores to finance. Multiple investment properties Jeanette teaches college courses investing seminars. On Design Psychology and real estate professional Free "Credit Tips for Mortgage Financing" report, visit the Real Estate Credit Help Center
But to make the real money for real estate investors difference comes into play in the return on investment (ROI). When you are with other people's money fund to build up your credit score over 720, the way to open multiple investment properties. Today you can finance investment property for as little as 5% down when you meet the qualifying credit requirement. This means that your ROI can be significant. On your cash investment for the deposit
For example, let's take a home I found in Bradenton, Florida. Built in 1999, this 3 bedroom, 2 bath, 1600 square foot home looks like a great buy for only $ 219,000. Assume that the property can be purchased for $ 215,000. With strong credit, down 5% cash investment of $ 10,750 buys in the appraisal value of $ 215,000. A lower credit score would mean that you would have to put down 10% -25% or more, which lowers your return on investment. You would need $ 21500-53750 $ down to buy the same $ 215,000 investment rating. In this case, reduce your ROI for your cash outlay considerably.
Of course, other factors, such as carrying costs affect your investment opportunities. The point: get your credit score over 720, so when you're ready to buy investment property, you get the best return on your money.
Copyright © 2005 Jeanette J. Fisher. All rights reserved
Jeanette Fisher, author of Credit Help! Get the credit you need to buy real estate, interior design and real estate books, has secured credit qualifications studied alongside credit scores to finance. Multiple investment properties Jeanette teaches college courses investing seminars. On Design Psychology and real estate professional Free "Credit Tips for Mortgage Financing" report, visit the Real Estate Credit Help Center
Friday, 13 December 2013
Volatile Range
The stock market fell sharply Thu and Fri before and after the employment report Friday. The farm payrolls report showed 207,000 new jobs were added in July, which was 27,000 more than the market expected. Also hourly wage in July rose 0.4%, which was twice what the market expected. There is a strong inverse relationship between labor and profit, in part, because if employment increases, then the productivity falls, which generally lowers profits. In addition, some proportion of additional labor costs tend to come from the earnings there is little slack in the economy. In addition, lower productivity is inflationary, ceritus paribus (all else equal).
Employment is a lagging indicator. The unemployment rate is currently 5.0%, which is considered the natural rate of unemployment, where there is to be. An optimal balance between work and leisure A lower unemployment rate would indicate tension on the labor market, which would drive up wages. So, there is some concern about slowing earnings growth and rising inflation, for example, a wage-price spiral, even though there are signs of disinflation recently. Nevertheless, the U.S. monetary policy is still accommodative, and the Federal Reserve will be vigilant to keep inflation. Preempt
Consequently, the stock market in the short term have reached last week, top and consolidate for a month or two. July-August to September is the season weak period for the stock market. The chart below shows SPX rallied about 110 points over a period of 3 1/2 months. The two big down days Thursday and Friday were on lighter volume, which may indicate a trading range next week. SPX hit a high last week at about 1246, and 1253 is a multi-year Fibonacci resistance level that can not keep for at least several months.
SPX closed at about 1,226 half Fri. Short term resistance is at the 20 day MA, currently about 1,231 half, last week pre-Friday low at around 1235, and the 10 day MA, currently just over 1,236. If SPX rises in that area early next week, that could be a chance to buy September move. If SPX rises higher, to test, for example, the recent high-or multi-year Fibonacci level that can have a chance to buy Augustus. Puts (SPX options expire in two weeks)
SPX is currently in an assisted area, ie the congestion area in recent weeks when it held the 10 day MA, and long Price-by-Volume bar around 1225 (on the left side of the graph). Other current support levels are the open hole to 1221, the 50 day MA, currently about 1,213 half, and the longest Price-by-Volume bar around 1200. If SPX does not meet the 200 day MA, for example, hold in September, then close it. Gaps in 1174, 1143 and 1138
Next week's economic reports are: Mon: No, Tue: Productivity, Wholesale Inventories, and the FOMC announcement, Wed: Treasury Budget, Thu: Retail Sales, Unemployment Claims and Business Inventories, Fri: Export & Import Prices, Trade, and Michigan Consumer Sentiment. The FOMC is expected that the Fed Funds Rate another quarter point to 3.50% Tue. I believe the FOMC will continue to get the rest of the year fast till monetary policy neutral position (maybe 5% Fed Funds Rate) is reached. The weekly oil inventory report is Wed.
Graphics available at Forum Index Market Overview section.
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimizing risks developed at the same time. This methodology has resulted in excellent returns with low risk over the past three years.
Employment is a lagging indicator. The unemployment rate is currently 5.0%, which is considered the natural rate of unemployment, where there is to be. An optimal balance between work and leisure A lower unemployment rate would indicate tension on the labor market, which would drive up wages. So, there is some concern about slowing earnings growth and rising inflation, for example, a wage-price spiral, even though there are signs of disinflation recently. Nevertheless, the U.S. monetary policy is still accommodative, and the Federal Reserve will be vigilant to keep inflation. Preempt
Consequently, the stock market in the short term have reached last week, top and consolidate for a month or two. July-August to September is the season weak period for the stock market. The chart below shows SPX rallied about 110 points over a period of 3 1/2 months. The two big down days Thursday and Friday were on lighter volume, which may indicate a trading range next week. SPX hit a high last week at about 1246, and 1253 is a multi-year Fibonacci resistance level that can not keep for at least several months.
SPX closed at about 1,226 half Fri. Short term resistance is at the 20 day MA, currently about 1,231 half, last week pre-Friday low at around 1235, and the 10 day MA, currently just over 1,236. If SPX rises in that area early next week, that could be a chance to buy September move. If SPX rises higher, to test, for example, the recent high-or multi-year Fibonacci level that can have a chance to buy Augustus. Puts (SPX options expire in two weeks)
SPX is currently in an assisted area, ie the congestion area in recent weeks when it held the 10 day MA, and long Price-by-Volume bar around 1225 (on the left side of the graph). Other current support levels are the open hole to 1221, the 50 day MA, currently about 1,213 half, and the longest Price-by-Volume bar around 1200. If SPX does not meet the 200 day MA, for example, hold in September, then close it. Gaps in 1174, 1143 and 1138
Next week's economic reports are: Mon: No, Tue: Productivity, Wholesale Inventories, and the FOMC announcement, Wed: Treasury Budget, Thu: Retail Sales, Unemployment Claims and Business Inventories, Fri: Export & Import Prices, Trade, and Michigan Consumer Sentiment. The FOMC is expected that the Fed Funds Rate another quarter point to 3.50% Tue. I believe the FOMC will continue to get the rest of the year fast till monetary policy neutral position (maybe 5% Fed Funds Rate) is reached. The weekly oil inventory report is Wed.
Graphics available at Forum Index Market Overview section.
Arthur Albert Eckart is the founder and owner of Peak Trader. Arthur has worked for commercial banks, eg Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds 1999-00. Arthur Eckart has a BA and MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has to maximize a comprehensive trading methodology using economics, portfolio optimization, and technical analysis and minimizing risks developed at the same time. This methodology has resulted in excellent returns with low risk over the past three years.
Wednesday, 11 December 2013
Playing With Money - And Making More
Ready to start playing with your money? Not interested in complicated businesses or boring bank CDs? Here are some methods that are not quite a business, because you can do it again, or just whenever you want. Start small and the risk is small.
Loan sharking
Years ago a friend got a good job when I borrowed the necessary tools to buy it. $ 300 I pay $ 6 per week loan fee (interest does not call) until paid in full. That is more than 100% annual interest, and yes, we are still friends. Check the laws in your area if you try this, and take collateral. I no longer loan shark, but in my early twenties I borrowed as much as $ 2,000 at a time ($ 100/month loan fee), and only once was stiffed on a small loan.
Investing In Other's Expertise
John showed me several car magazines before I understood why an old fiberglass car was a good deal at $ 2,300. What is a Corvette? He convinced me to get the money, and after a new transmission for $ 900, he sold the 1976 Corvette for $ 4,300, netting us $ 1,000. I took half of the profits ($ 500) for putting up the money for two weeks.
I've done this many times with friends who know cars, but to have. No cash Incidentally, if I had paid to raise money with a credit card, the money a $ 50 cash advance fee and 18% interest my profit would have been $ 400, and even John did all the work. I love playing with money. Do you have friends who know about boats?
Buy Estates
My wife and I met a couple who buy out estates, sell some of it at flea markets, then run the rest through auctions. They have made a living at this for years. After negotiations for a whole house to buy things thay full load their trailer. If they do not want to do the flea market thing, they all auction on Sunday afternoon for a nice profit.
If you are a good judge of value and have an auction close, you can also do this with flea markets. Offer $ 100 for everything, then auction it off piece-by-piece. An auction with us can, with no fee to enter everyone - only 25% commission on everything sold.
Playing With The Casinos Money
When I worked the roulette wheel in a casino I saw many people stupid writing down the numbers that came. Their theories were mostly nonsense. Casinos welcome these players and even give them the pen and paper.
However, a man was actually scientific about it. He found a bias in the wheel, after "charting" it for more than 5,000 spins. A number pays 35 to 1, but one of the numbers, due to manufacturing defects or what was recorded in one 27 spins instead of the average 1 in 38 spins.
He bet $ 10 per spin, and he profited $ 80 for every 27 spins of the wheel in the long term, or about $ 100 per hour. Given the ups and downs are dramatic, this is not for the faint of heart. Even though he made ten thousand, I saw him lose as much as $ 700 per night. Remember too that do not have prejudices (the casino eventually replace the wheel). All wheels Have you ever tried "card counting" in blackjack? ...
Loan sharking
Years ago a friend got a good job when I borrowed the necessary tools to buy it. $ 300 I pay $ 6 per week loan fee (interest does not call) until paid in full. That is more than 100% annual interest, and yes, we are still friends. Check the laws in your area if you try this, and take collateral. I no longer loan shark, but in my early twenties I borrowed as much as $ 2,000 at a time ($ 100/month loan fee), and only once was stiffed on a small loan.
Investing In Other's Expertise
John showed me several car magazines before I understood why an old fiberglass car was a good deal at $ 2,300. What is a Corvette? He convinced me to get the money, and after a new transmission for $ 900, he sold the 1976 Corvette for $ 4,300, netting us $ 1,000. I took half of the profits ($ 500) for putting up the money for two weeks.
I've done this many times with friends who know cars, but to have. No cash Incidentally, if I had paid to raise money with a credit card, the money a $ 50 cash advance fee and 18% interest my profit would have been $ 400, and even John did all the work. I love playing with money. Do you have friends who know about boats?
Buy Estates
My wife and I met a couple who buy out estates, sell some of it at flea markets, then run the rest through auctions. They have made a living at this for years. After negotiations for a whole house to buy things thay full load their trailer. If they do not want to do the flea market thing, they all auction on Sunday afternoon for a nice profit.
If you are a good judge of value and have an auction close, you can also do this with flea markets. Offer $ 100 for everything, then auction it off piece-by-piece. An auction with us can, with no fee to enter everyone - only 25% commission on everything sold.
Playing With The Casinos Money
When I worked the roulette wheel in a casino I saw many people stupid writing down the numbers that came. Their theories were mostly nonsense. Casinos welcome these players and even give them the pen and paper.
However, a man was actually scientific about it. He found a bias in the wheel, after "charting" it for more than 5,000 spins. A number pays 35 to 1, but one of the numbers, due to manufacturing defects or what was recorded in one 27 spins instead of the average 1 in 38 spins.
He bet $ 10 per spin, and he profited $ 80 for every 27 spins of the wheel in the long term, or about $ 100 per hour. Given the ups and downs are dramatic, this is not for the faint of heart. Even though he made ten thousand, I saw him lose as much as $ 700 per night. Remember too that do not have prejudices (the casino eventually replace the wheel). All wheels Have you ever tried "card counting" in blackjack? ...
Monday, 9 December 2013
Mutual Fund Selection Made Simple By Indexing!
Non-indexed mutual funds try to make it secret that actively managed mutual very funds rarely do better stick indices. The higher cost of the managed funds really make it difficult for these funds to compete indexed funds. Smart financial journalists occasionally rat fund managers for not educating the public in this regard. When this happens the mutual fund managers make a feeble attempt to defend themselves by pointing to something called the 5% rule.
This rule says that for a fund to promote a diversified itself it can not exceed 5% of 75% of the funds invest in a single file. In other words, a fund may have 25% of its holdings in a single file, but the remaining 75% must be followed. 5% rule The 5% rule was made by the Investment Company Act Requirement. Fund managers argue that this hinders rather than admitting that they are in business just to make you clip for high cost, while the fund under-perform the general market their performance.
The truth is that the big killer is the herd mentality of active fund managers. They follow each other around the buying and selling of the same gang. They flock to the same familiar and companies often overlook the new, obscure companies to show. Those great promise They take great comfort in knowing that even if their fund missing out on a great opportunity, most of the others in his group will too. They also know that they can retreat during the whole time that your retirement savings are parked in their fund. Their enormous costs Over the years they spend a lot of money marketing to make you think that they actually care.
That is certainly not the attitude I want to have! The manager of my pension You have to ask yourself why the funds not only mimic the same portfolio composition as an important stock index such as the S & P 500 Index. Well, some do and those indexed to perform actively managed funds at minimum cost management out. For this reason, I strongly recommend that if you can buy only mutual funds as in the case of the 401 (k) or limit your purchases to indexed funds like the Vanguard 500 (VFINX).
Dr. Scott Brown, Ph.D., aka? The Wallet Doctor?, Is a successful futures trader, real estate investor, and stock investor. Dr. Brown has a Ph.D. in finance from the University of South Carolina. His 1998 articles in technical analysis of stocks and commodities were prophetic in predicting an impending stock market crash. He has helped many people profitable investors learn to look out over many years to spot stocks that are low and ready to rise in the new bull market by them. His second article welcomed by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most concerned that the term? Irrational exuberance.? In 1998, he called out to the world? Get out? of the fair, but now he is shouting to everyone that it's time? get? The Wallet Doctor is not only sought after for investment advice and coaching to invest in stock but also in futures trading and real estate investing. Visit Dr. Brown? S site or sign up for his investment tips
This rule says that for a fund to promote a diversified itself it can not exceed 5% of 75% of the funds invest in a single file. In other words, a fund may have 25% of its holdings in a single file, but the remaining 75% must be followed. 5% rule The 5% rule was made by the Investment Company Act Requirement. Fund managers argue that this hinders rather than admitting that they are in business just to make you clip for high cost, while the fund under-perform the general market their performance.
The truth is that the big killer is the herd mentality of active fund managers. They follow each other around the buying and selling of the same gang. They flock to the same familiar and companies often overlook the new, obscure companies to show. Those great promise They take great comfort in knowing that even if their fund missing out on a great opportunity, most of the others in his group will too. They also know that they can retreat during the whole time that your retirement savings are parked in their fund. Their enormous costs Over the years they spend a lot of money marketing to make you think that they actually care.
That is certainly not the attitude I want to have! The manager of my pension You have to ask yourself why the funds not only mimic the same portfolio composition as an important stock index such as the S & P 500 Index. Well, some do and those indexed to perform actively managed funds at minimum cost management out. For this reason, I strongly recommend that if you can buy only mutual funds as in the case of the 401 (k) or limit your purchases to indexed funds like the Vanguard 500 (VFINX).
Dr. Scott Brown, Ph.D., aka? The Wallet Doctor?, Is a successful futures trader, real estate investor, and stock investor. Dr. Brown has a Ph.D. in finance from the University of South Carolina. His 1998 articles in technical analysis of stocks and commodities were prophetic in predicting an impending stock market crash. He has helped many people profitable investors learn to look out over many years to spot stocks that are low and ready to rise in the new bull market by them. His second article welcomed by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most concerned that the term? Irrational exuberance.? In 1998, he called out to the world? Get out? of the fair, but now he is shouting to everyone that it's time? get? The Wallet Doctor is not only sought after for investment advice and coaching to invest in stock but also in futures trading and real estate investing. Visit Dr. Brown? S site or sign up for his investment tips
Saturday, 7 December 2013
The Biggest Oil Opportunity in the World - And How You Can Profit From It
Where is the second largest deposit of oil reserves in the world?
In the oil sands region of Alberta, Canada. Oil sands are a thick, viscous mixture of bitumen, sand, clay and water. Alberta oil sands consists of three regions with the Athabasca area are the largest and closest to the surface. Under the gooey tar sands are billions of barrels of oil.
So you can ask why we have been of Middle East oil. So dependent Why do not we just stayed in the area and relied on Canada? In fact, Canada is the largest supplier of crude and refined oil to the United States, have delivered 2.1 million barrels per day in 2004. But the U.S. and other parts of the world delivered percentage will grow much larger.
The big difference between the oil sands and oil from the desert sands of the Middle East is difficulty of extraction. The oil sands process essentially involves extracting bitumen from the sand and upgrade to light crude oil. Easier said than done, because this stuff is thick and expensive to mine and extract has been. But new technologies are changing the equation and making it much more cost efficient to mine and extract from the oil sands.
Mining activities are used to produce reserves close to the surface. For oil deeper under the ground, Steam Assisted Gravity Drainage (SAGD) and Cyclic Steam Stimulation (CSS) used. Other examples of new technology, and extraction methods have been burning bitumen in place of gas in order to produce steam, a solvent-assisted production technique called VAPEX and a
system that injects air into the oil well fires and to stimulate it. oil flow
In addition to the improvements in technology, higher oil prices are fueling expansion in the oil sands, and a lot of people want in. The Chinese, for example. In April, China National Offshore Oil Corp., mainly in the hands of the Chinese government, bought nearly 17% of MEG Energy Corp. for $ 122 million. The company is developing a northern Alberta project estimated 25,000 barrels of crude to pump out the oil sands in 2008. Oil And Canadian oil pipeline giant Enbridge has a preliminary agreement with PetroChina for a $ 2 billion oil pipeline anchor announced on the West Coast.
So how can you benefit from the increase in exploration, production and sale of crude oil from the oil sands of Alberta? Choose from the shares of companies investing in the area and the application of new technologies to oil more cost-efffectively pick.
Companies can then take advantage of the increasing role of the oil sands in Canada in the world of energy are Suncor (NYSE: SU), Encana (NYSE: ECA), Canadian Natural Resources NYSE: CNQ) Deer Creek Energy (DCE.TO) Total SA (NYSE: TOT), Petro Canada NYSE: PCZ), and, with the acquisition of Terasen whose pipes are well positioned to meet the growing production from the oil sands of Alberta, Children Tomorrow (transport NYSE: KMI).
And although more expensive to win from Alberta then stay out of the Middle East into account the effects of global politics, terrorism and unrest, and the cold wilderness of Northwest Canada oil become very attractive indeed.
Leon Altman creates and runs websites for investors to explore those possibilities. For more opportunities in oil and gas, as well as find other sectors, subscribe to his free Select Sectors letter to
In the oil sands region of Alberta, Canada. Oil sands are a thick, viscous mixture of bitumen, sand, clay and water. Alberta oil sands consists of three regions with the Athabasca area are the largest and closest to the surface. Under the gooey tar sands are billions of barrels of oil.
So you can ask why we have been of Middle East oil. So dependent Why do not we just stayed in the area and relied on Canada? In fact, Canada is the largest supplier of crude and refined oil to the United States, have delivered 2.1 million barrels per day in 2004. But the U.S. and other parts of the world delivered percentage will grow much larger.
The big difference between the oil sands and oil from the desert sands of the Middle East is difficulty of extraction. The oil sands process essentially involves extracting bitumen from the sand and upgrade to light crude oil. Easier said than done, because this stuff is thick and expensive to mine and extract has been. But new technologies are changing the equation and making it much more cost efficient to mine and extract from the oil sands.
Mining activities are used to produce reserves close to the surface. For oil deeper under the ground, Steam Assisted Gravity Drainage (SAGD) and Cyclic Steam Stimulation (CSS) used. Other examples of new technology, and extraction methods have been burning bitumen in place of gas in order to produce steam, a solvent-assisted production technique called VAPEX and a
system that injects air into the oil well fires and to stimulate it. oil flow
In addition to the improvements in technology, higher oil prices are fueling expansion in the oil sands, and a lot of people want in. The Chinese, for example. In April, China National Offshore Oil Corp., mainly in the hands of the Chinese government, bought nearly 17% of MEG Energy Corp. for $ 122 million. The company is developing a northern Alberta project estimated 25,000 barrels of crude to pump out the oil sands in 2008. Oil And Canadian oil pipeline giant Enbridge has a preliminary agreement with PetroChina for a $ 2 billion oil pipeline anchor announced on the West Coast.
So how can you benefit from the increase in exploration, production and sale of crude oil from the oil sands of Alberta? Choose from the shares of companies investing in the area and the application of new technologies to oil more cost-efffectively pick.
Companies can then take advantage of the increasing role of the oil sands in Canada in the world of energy are Suncor (NYSE: SU), Encana (NYSE: ECA), Canadian Natural Resources NYSE: CNQ) Deer Creek Energy (DCE.TO) Total SA (NYSE: TOT), Petro Canada NYSE: PCZ), and, with the acquisition of Terasen whose pipes are well positioned to meet the growing production from the oil sands of Alberta, Children Tomorrow (transport NYSE: KMI).
And although more expensive to win from Alberta then stay out of the Middle East into account the effects of global politics, terrorism and unrest, and the cold wilderness of Northwest Canada oil become very attractive indeed.
Leon Altman creates and runs websites for investors to explore those possibilities. For more opportunities in oil and gas, as well as find other sectors, subscribe to his free Select Sectors letter to
Thursday, 5 December 2013
Creating Wealth by Gearing Up
Gearing is where you borrow money to invest. As already mentioned, it is best to clear all your debts before looking at investments. However, there will be situations where the investment lend a good and serves to a small amount of the deal to work. The loans can be used for real estate or shares.
Gearing you can increase your investments and possibly obtain higher returns. On the other hand, however, if the investment does not pay you stand to lose much more. Negative gearing comes about when the interest you pay on your loan is greater than the income from your investment (eg a house). You can loss or difference against your tax claim and write it off as a deduction against other income.
Negative gearing is not necessarily the best investment strategy. Even though you get a tax benefit is still cost you money. That is, you can save yourself 25 cents in the dollar, but you have to spend to achieve a dollar.
People look at negative gearing because they calculate that they are able to sell for more than they bought, and in the meantime the investment their losses are deductible from other income will be. They deserve They conclude that the Commissioner of Inland Revenue is actually helping to fund growth. Them the value of their property
If it can be avoided, do not borrow against your home for investment. This is especially true when the investment is speculative. Things go wrong and you would not want to give yourself (and your family) to find out about the street without a roof over your head.
If you borrow money to invest, this is known as margin lending. The additional resources that allow you to invest more, increasing the potential returns, compared to what you would get from your standard savings. It allows you to use other people's money, so that you can get. Significantly increase your wealth of a small deposit
The negative side is when stock prices fall below a level and a margin call is made. When this happens you will have 24 hours to respond to one of three ways. You have to come up with the money, you have to sell, or you need to provide in addition to equity. Additional assets assets
If you have a margin loan, make sure you understand the terms of your loan in full and to introduce strategies for survival in case things do not work.
Copyright 2005 StartRunGrow
StartRunGrow is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow goal is to become a dominant player in the corporate arena help provide end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business to finish become.
Gearing you can increase your investments and possibly obtain higher returns. On the other hand, however, if the investment does not pay you stand to lose much more. Negative gearing comes about when the interest you pay on your loan is greater than the income from your investment (eg a house). You can loss or difference against your tax claim and write it off as a deduction against other income.
Negative gearing is not necessarily the best investment strategy. Even though you get a tax benefit is still cost you money. That is, you can save yourself 25 cents in the dollar, but you have to spend to achieve a dollar.
People look at negative gearing because they calculate that they are able to sell for more than they bought, and in the meantime the investment their losses are deductible from other income will be. They deserve They conclude that the Commissioner of Inland Revenue is actually helping to fund growth. Them the value of their property
If it can be avoided, do not borrow against your home for investment. This is especially true when the investment is speculative. Things go wrong and you would not want to give yourself (and your family) to find out about the street without a roof over your head.
If you borrow money to invest, this is known as margin lending. The additional resources that allow you to invest more, increasing the potential returns, compared to what you would get from your standard savings. It allows you to use other people's money, so that you can get. Significantly increase your wealth of a small deposit
The negative side is when stock prices fall below a level and a margin call is made. When this happens you will have 24 hours to respond to one of three ways. You have to come up with the money, you have to sell, or you need to provide in addition to equity. Additional assets assets
If you have a margin loan, make sure you understand the terms of your loan in full and to introduce strategies for survival in case things do not work.
Copyright 2005 StartRunGrow
StartRunGrow is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow goal is to become a dominant player in the corporate arena help provide end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business to finish become.
Tuesday, 3 December 2013
What If You Absolutely Positively Could Not Lose - Would You Play the Stock Market?
Seniors on a fixed income are faced with a unique problem. Where do
they invest their savings in order to get a maximum return
investment with limited risk? Some traditional
places like CDs and Treasury Notes are extremely safe,
but the yield is usually very low. Stocks and mutual
Funds while offering the potential for higher yields have
risk factor that most seniors find unacceptable.
What if you knew you could absolutely positively not loose,
Would you invest in the stock market? Imagine if they had
a way that you enjoy the upside potential of being able
market with absolutely no downside risk, you would
are you interested?
Equity Indexed Annuities may be the solution you are
looking. Many insurers now offer
Equity Indexed Annuities. These benefits can
mirror of the profits of the popular indexes such as the
S & P 500 and the Dow Jones Industrial Average, while not
loss of your investment capital.
In simple terms if the stock market goes up your annuity
go up, but if the stock market goes down your
Annuity lose any value. An Equity Indexed Annuity
is not an investment in stocks or mutual funds instead it is a way of insurance, your investments on the profits of the stock mirror without downside risk.
Many popular Equity Indexed Annuities are set using a
monthly tracking method. Once a month the insurance
company will look to determine the stock market index
the profit or loss. If the index rises 2% then they
put a plus 2 on your scorecard. If the index goes
a decrease of 4% then they put a -4 on your scorecard. End
of the year the insurance is your scorecard
the year when it is positive (say 8%) then they would add 8%
to your annuity value however if it is your negative
annuity value would remain the same. If you started the year with
an annuity value of $ 10,000 your annuity would still be worth
$ 10,000. It does not matter if you have a score card
Negative 1%, 10% or 99% you will not lose a penny of your
$ 10,000 starting value.
Each year, your annuity value is put back, with the above
For example if you Annuity started the year with a $ 10,000
Value and your score card shows a plus 8% for your
Annuity would be able to recover up to $ 10,800 and the process
begins again. To sweeten the pot even further much
insurance companies offer Bonus Equity Indexed
Annuities, these vehicles work exactly the same as Equity
Indexed Annuities but the insurance companies will add a
Bonus of up to 10% on your annuity. Insert $ 10,000 to
start in your annuity with a 10% Bonus Annuity the
insurance bill would now make $ 1,000 of your bonus
Equity Indexed Annuity now worth $ 11,000. In addition, you
would receive a 10% bonus for all the resources that you add in the
first 5 years.
With Equity Indexed Annuities popular insurance
Businesses You can have it all. One way to earn huge
Gains from the stock market while completely isolated
from any downside risk and a bonus of up to 10% of all the money added in the first 5 years.
Mike Makler is a licensed Life Insurance Agent Based in St. Louis Missouri. For more info call Mike at 314 398-5547 or visit Mike's homepage
they invest their savings in order to get a maximum return
investment with limited risk? Some traditional
places like CDs and Treasury Notes are extremely safe,
but the yield is usually very low. Stocks and mutual
Funds while offering the potential for higher yields have
risk factor that most seniors find unacceptable.
What if you knew you could absolutely positively not loose,
Would you invest in the stock market? Imagine if they had
a way that you enjoy the upside potential of being able
market with absolutely no downside risk, you would
are you interested?
Equity Indexed Annuities may be the solution you are
looking. Many insurers now offer
Equity Indexed Annuities. These benefits can
mirror of the profits of the popular indexes such as the
S & P 500 and the Dow Jones Industrial Average, while not
loss of your investment capital.
In simple terms if the stock market goes up your annuity
go up, but if the stock market goes down your
Annuity lose any value. An Equity Indexed Annuity
is not an investment in stocks or mutual funds instead it is a way of insurance, your investments on the profits of the stock mirror without downside risk.
Many popular Equity Indexed Annuities are set using a
monthly tracking method. Once a month the insurance
company will look to determine the stock market index
the profit or loss. If the index rises 2% then they
put a plus 2 on your scorecard. If the index goes
a decrease of 4% then they put a -4 on your scorecard. End
of the year the insurance is your scorecard
the year when it is positive (say 8%) then they would add 8%
to your annuity value however if it is your negative
annuity value would remain the same. If you started the year with
an annuity value of $ 10,000 your annuity would still be worth
$ 10,000. It does not matter if you have a score card
Negative 1%, 10% or 99% you will not lose a penny of your
$ 10,000 starting value.
Each year, your annuity value is put back, with the above
For example if you Annuity started the year with a $ 10,000
Value and your score card shows a plus 8% for your
Annuity would be able to recover up to $ 10,800 and the process
begins again. To sweeten the pot even further much
insurance companies offer Bonus Equity Indexed
Annuities, these vehicles work exactly the same as Equity
Indexed Annuities but the insurance companies will add a
Bonus of up to 10% on your annuity. Insert $ 10,000 to
start in your annuity with a 10% Bonus Annuity the
insurance bill would now make $ 1,000 of your bonus
Equity Indexed Annuity now worth $ 11,000. In addition, you
would receive a 10% bonus for all the resources that you add in the
first 5 years.
With Equity Indexed Annuities popular insurance
Businesses You can have it all. One way to earn huge
Gains from the stock market while completely isolated
from any downside risk and a bonus of up to 10% of all the money added in the first 5 years.
Mike Makler is a licensed Life Insurance Agent Based in St. Louis Missouri. For more info call Mike at 314 398-5547 or visit Mike's homepage
Sunday, 1 December 2013
Forex market offers opportunity and information
The forex market is what is called an international exchange currency market, where currencies are exchanged on a daily basis. There are five forex market centers around the world - New York, London, Tokyo, Frankfurt and Zurich. One does not have to be on the show floor, so to be involved to speak. In the forex market Today, forex trading can be done from home on a computer.
The forex market itself is basically a worldwide connection of traders who make investment moves based on the price of currencies, or their values relative to other currencies. These traders constantly negotiate prices with other traders resulting in the fluctuation or movement of the value of a currency. The value of a currency on the forex market is also consistent with the offer. If there is more demand for the euro, say, then there will be less supply of the forex market, which means that, in time, it will be a euro worth compared to let's say the dollar. In short, in this forex market situation, would bring more dollars, one euro then the weakening of the dollar also. Analyzing the fluctuations in the forex market allows investors to make predictions about how a currency will move relative to other currencies. They can then make predictions and buy and sell currency accordingly.
While some people the forex market as a place to see what their price will be when they travel abroad, others see it as an opportunity to make big profits. Their financial planning and future
Jay Moncliff is the founder of. Daily updated blog focused on the latest Forex news, resources. Get the latest warnings and articles in his site: forex signal
The forex market itself is basically a worldwide connection of traders who make investment moves based on the price of currencies, or their values relative to other currencies. These traders constantly negotiate prices with other traders resulting in the fluctuation or movement of the value of a currency. The value of a currency on the forex market is also consistent with the offer. If there is more demand for the euro, say, then there will be less supply of the forex market, which means that, in time, it will be a euro worth compared to let's say the dollar. In short, in this forex market situation, would bring more dollars, one euro then the weakening of the dollar also. Analyzing the fluctuations in the forex market allows investors to make predictions about how a currency will move relative to other currencies. They can then make predictions and buy and sell currency accordingly.
While some people the forex market as a place to see what their price will be when they travel abroad, others see it as an opportunity to make big profits. Their financial planning and future
Jay Moncliff is the founder of. Daily updated blog focused on the latest Forex news, resources. Get the latest warnings and articles in his site: forex signal
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