Lets keep this blog up beat and if you know a lot about money and business and want to share with others then please feel free to do so. It has been said and many very wealthy people practice the art of giving. They beleave that what ever you put out into the would comes back to you. I beleave that is true and that is why I have created this blog.
Examples of what you might post on this blog:
- Need financing to buy a home
- Need money for a business
- Need a bridge loan
- Raise money for a good Idea
- Advise on how to increase your cash-flow in a business
- You have money to loan to others
- Want a bridge loan
- Creative ideas on how to by real estate or a business
- Sources of money for anything
- Anything to do with money or finance
- Ideas on how to get out of debt
- Post a website that could be helpful in anyone
- Got a good idea for saving money or making it.
Ok I think you get the idea. I really hope this will become a real source of creative ideas.
2 comments:
I will get this started.. If you own your own business and are having problems getting your vendors paid in a timely manner. There is a funding source out there that will use their money to pay your vendors one day after they provide a service or product to you and not charge you anything to do this. It is called the VIP program (Vendor Insta-pay program) If you want information on it call me at 925-937-4300 ext 241
Here is something I thought was very interesting. Now if any of you own your own business and it is doing well and you would like to expand but don't know how to get the money to do that, you need to pay close attention.
I was listening to a guy by the name of Cherif Madawar the founder of The Institute of Commercial Real Estate and the number one owner of Historical commercial real Estate in the world. I would say he was a good source wouldn't you?
He was talking to a friend that had a good business that was doing well. This friend had gotten an SBA loan to buy the building for his business and now was doing so well he wanted to expand but did not have enough money to buy a new building and start a new location. Here is what Cherif told him to do. He told him to sell his building to an investor and lease it back from him. His building was in an LLC and the business was in a C-Corp. Now with commercial real estate the value of the property is determined by the income of the property. He checked his area and found the going lease rate was about $5,000 a month for his building or $60,000 a year. He also found that the cap rate in that area was 6%. To determine the value of what a commercial property would sell for, you take the yearly Lease and divide it by the cap rate of 6% In this case the value of the property was $1,000,000. This was about what he owed on the property.
What Cherif told him to do was increase his lease to $7500 per month or $90,000 per year. This is what he would be willing to pay on a long term NNN lease for the investor buying the property. That now makes the property worth $1,500,000 so that is what he listed it for. He now was able to sell the property for the $1,500,000. Pay off the existing loan and pocket $500,000 and buy another building and start another location. That location was even more profitable because he was able to put more down on the building and even though he was paying more on his Lease the business was less profitable at first,but once he had the other location up and running his business was more profitable. He now has tree locations and growing. Now that he has a working business model there is no end to the potential. You should always check with a good CPA or real estate attorney on something like this but it was a good story.
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