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November 2008 e-Newsletter Description
Recovery Club - First Rule of Recovery Club is... If you want "Doom and Gloom" read the press or watch the news. If, on the other hand, you are looking to find more ways to make money or save money, then you need look no further than "The Recovery Club" The first Recovery Club will start on Wednesday 25th November 2008 at 6pm and if you want to grow your business in a Recession, then you need to be part of the Club. The Club is targetted at forward thinking small and medium businesses and the aim of each club meeting is to help your business grow by providing you with the latest information from battle hardened veterans of previous downturns. You will learn: - The Four Way to Grow any Business
- 7 Steps to Getting More customers
- How to keep an eye on your lender - and get him to love you
- Eight Rules for getting publicity - if you want it
- The Massive marketing trend for the 21st Century - and why you should embrace it
- How to make your problems easier to deal with
and much more. Each club meeting will be for a maximum of 12 business owners only. This way we can guarantee that you will get the best out of each one and go away with tricks, tips and ideas that can be implemented immediately. There will be a price to pay. That price will cover the venue and refreshments, but it will be nothing to the price you may have to pay if you do nothing. There will be time that you need to set aside to attend. It will be hard. But in these tough times if we are a little harder on ourselves now, it will be a lot easier later on. And remember the first rule of Recovery Club? You don't talk about Recovery Club. For more information and to register your interest click here
In the middle of every difficulty lies opportunity. Most of you will know that the heading above is actually a quote by Albert Einstein. Now you don't need to be Einstein to know that the quote has an element of truth about it. But the secret is in knowing what is an opportunity and what is a dud. We have a client who just received notice from the bank that a loan application has been approved. It was a restructuring loan for £420,000 on a property they had bought for £397,500 a little more than a year ago. This during the worst credit crisis in 75 years.
The loan will help the clients to accomplish a number of goals at once, and boost their investments far beyond this one 14 flat building.
First, it decreases their interest rate (fixed, of course) and still allows the property to comfortably pay the loan through rental income.
Second, it enables them to return a little more than half of their equity investors’ capital in short order. Meanwhile, they’ll still have valuable stakes in a cash-flow apartment building in an improving area that has operated at 97 percent economic occupancy for over a year now. (It was at 12 percent occupancy and in need of complete refurbishment when they bought it.)
Third, as they give back, they expect to receive. They expect that most, if not all, of their investors will re-invest that money - and more - with them since they are preparing a property opportunity fund to take advantage of the huge discounts now becoming available on property in promising areas.
Fourth, it is part of a track record that banks increasingly scrutinise. They can see that our client has a history of taking non-performing assets and turning them into money makers, creating value in the process. And that’s important for banks, because - despite all the doom and gloom you hear - they desperately want to lend money.
That’s right. Even in today’s environment - in fact, especially in today’s environment - banks want to lend money.
Become the Borrower of First Resort
Banks can’t keep their doors open if they do not lend money. Yes, they are now becoming choosier than ever. But if you happen to be an investor and borrower with a good track record, your options today are better than at any time in a generation. You may be one of the few buyers willing to buy deeply discounted properties (while others are paralyzed with fear)… one of the few with the cash to do it… and one of the few who has the actual backing of banks and other lenders to be able to close the deal.
So how do you put yourself in this position?
It’s fairly simple. You partner with people who have that kind of track record.
Star Investors Want to Work With You
To find those people, just keep your eyes open for potential opportunities to work with someone who has already spent years successfully doing what you’re trying to do.
Here are a few guidelines for connecting with the right investor:
1. Identify the type of deals you want to do (small residential, apartment houses, commercial, etc.). Then look in the property records, sorting by name, and see if you can find owners of multiple properties. Especially if they’ve owned for a while (more than just a few years), these are your potential partners.
2. Go to the right meetings for your type of property. Go to property investor groups for residential. Go to industry meetings or groups if you’re interested in larger commercial deals.
3. Network with bankers, mortgage brokers, property lawyers, and estate agents. They know who is closing the deals in today’s difficult market. A good word from them may help start a very profitable mutual relationship.
4. Advertise in the residential property section of ESPC or The Scotsman with an ad as simple as this: “Cash-flow homes, 30% below market value. Call xxx xxx xxxx.” Then have a packet of information to e-mail to people who respond, with the emphasis on working with qualified investors only, with proven track records and financial resources. If you’re interested in commercial deals, do the same thing. Just swap the words “commercial properties” for “homes” and put the ad in the commercial property section.
Another excellent alternative is to build up your bank of private lenders. But, private investors are as cautious with their money as banks are. And in today’s environment, if you don’t have much experience, that may be hard. You’re more likely to be successful by developing the right strategic partnership with an experienced investor - a relationship that will help you become part of a rare qualified buying team during one of the best buyer’s markets in decades.
For more information or to discuss these type of deals Mouse here and click
Should you invest right now? The good news: The stock market is offering bargain-basement share prices on many companies. The bad news: Prices got that way from falling over the past several months. Should you invest in falling shares or not? Fast-falling share prices didn’t prevent legendary investor Warren Buffett from taking big stakes in Goldman Sachs and GE. And Buffett is a cautious investor who loves undervalued companies with a penchant for generating consistent profits year after year. But it’s risky investing in falling shares unless you have a very good idea of what you’re getting into. With a portfolio loaded with financial and industrial companies, Buffett was treading on very familiar ground with his latest investments. And don’t think that he wasn’t aware that these companies were also leaders in their respective sectors. He invested in the cream of the crop. In a falling market, you have to be extra careful. Cheap value isn’t always good value. Invest in companies with outstanding track records of growing profits and leading their industry. And don’t stray outside your expertise and experience. By doing these things, you can greatly reduce risk and end up with some great shares in your portfolio.
Join "The Recovery Club" here Still undecided? There will be no charge for the first session. After that you can decide if you want to continue or not, everything will be explained to you. Then ask yourself... Will I be better off listening to someone who has survived a Recession before, or by going it alone? I like to equate these hard decisions to walking across a minefield. If I have to cross a minefield I can use a map; perhaps even a map drawn by the man who laid the mines. Or I can let a man walk in front of me; a man who's crossed the minefield before and I can put my feet on top of the footprints that he has left on the ground. After all, he knows where the mines are but more importantly, he knows where to tread to avoid the mines. To cross the minefield, click here
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