The best deal you can make this year is hidden in two words: "Carry interest".
Carry interest is a simple concept really. What you do is lend out money to countries at a daily interest rate called "carry interest". You don't need to be a trader doing this. You don't even need to be particularly smart to set this up. But it sure is a great deal and the easiest deal you will ever make in your life.
You open up a forex account, fill it with cash and buy a currency giving the highest possible interest rate (carry interest). Then just let the taxameter start rolling. Check it from time to time (say once a month) and see the cash accumulate faster than you would ever be able to make money at your current job. Even if you where to take a second or third job, you would still be able to make more money per hour at carry interest.
If you have $10000 in your account and you accumulate say 0.1% a day then that would mean $10000 X 0.1% = $10/day X 20 working days a month = $200 in accumulated profits each month.
I have a little cash invested on carry interest at the moment myself and I accumulate $1.1 for every pips I hold. At the moment I hold 253 pips making me a daily accumulated profit of $278.3. It all adds up.
The risks? The leverage you will recieve when dealing with a discount broker. The second risk is interest changes (goverments tend to change interest in order to control the influx/outflux of capital into a country. Higher carry interest obviously attract more external investors to invest in a country. The same goes with lower carry interest that drive investors away from a country).
Why not test it yourself? You do yourself a big disservice by not checking it out. I'm not refering to any one discounting broker. That is up to you to find out. See it as your homework.
måndag 7 januari 2008
söndag 6 januari 2008
Cash or Stock?
Cash or Stock is the real money question. And it needs to be thought about carefully. I would rather take stock than pure cash. Why? Simple, you need to invest the money and during the time you are looking for an investment to invest in you will have two big enemies: Taxes and inflation. Take the stock and you will gain a lot.
But, be carefull with taking stock as payment. If the company has bad financials or the company is utterly corrupt with it's financial reports then you will be in a world of shit.
Before accepting stock, do your financial due diligence of the company with the help of your CPA: If everthing shows green lights, then take the stock by all means. Especially if you can gain more by taking the stock than taking the cash. And most of the time you do make more from a stock payment than from a cash payment. Not just because you don't need to pay taxes right now or that you don't need to worry to much about inflation (because hopefully the company will make enough money to cover the loss in purchasing power), but because you will be able to sell your share of the stock payment for at least 5-10 times earnings.
And don't tell me that this is not possible. The right view on it would be that you are a lousy dealmaker. But hopefully you will join my subscribers list and learn the tricks of the trade to get at least 5-10 times earnings in the stock you have accepted.
But, be carefull with taking stock as payment. If the company has bad financials or the company is utterly corrupt with it's financial reports then you will be in a world of shit.
Before accepting stock, do your financial due diligence of the company with the help of your CPA: If everthing shows green lights, then take the stock by all means. Especially if you can gain more by taking the stock than taking the cash. And most of the time you do make more from a stock payment than from a cash payment. Not just because you don't need to pay taxes right now or that you don't need to worry to much about inflation (because hopefully the company will make enough money to cover the loss in purchasing power), but because you will be able to sell your share of the stock payment for at least 5-10 times earnings.
And don't tell me that this is not possible. The right view on it would be that you are a lousy dealmaker. But hopefully you will join my subscribers list and learn the tricks of the trade to get at least 5-10 times earnings in the stock you have accepted.
torsdag 20 december 2007
Exclusive dealmaking subscribers list
My closed ended subscribers list for interested wannabe dealmakers only. Serious wannabe dealmakers may attend only!
Subscribe to my monthly dealmaking subscribers list if you are interested in getting tips from a real time dealmaker. This list is a closed end subscribers list. There will be a $100 first time fee. After the first month trial you will continue to be billed $80 each month for a continous period of 24 months. If you decide that after one trial you aren't satisfied with what I present then please send me an email urgently so I can remove you from my list of closed ended subscribers. This needs to be done before the second month starts (when the second month has started you are stuck with 24 months of really good dealmaking advise. So please be urgent with your removal request if you want to be removed, thank you).
I promise not to misuse your precious time with long emails without any practial use to you. I will send 1 email each month and only 1 email. This makes it even more exclusive in comparison to many other services on the internet today that almost spam it's subscribers daily. Every email will be sent to you on the 25th every month so keep your eyes open. Please check your spam filters because my emails may end up there in the begin until you accept my emails as legitimate.
When ordering you will need to send me your email adress so that I can verify it against Paypal (send an email from the email used when signing up for the advanced dealmaking service). Send me an email to the emailadress you will encounter when signing up for this service. You will see this email adress in the top of the ordering page. Hope to see you on board I have a lot to teach you guys. But you need to commit as mentioned on my blog. The teachings I will give you will not in any case be displayed on the open, free blog I am currently working on as a treat. I want to give you more advanced stuff to work on (Something everyone else needs to try out by trial-and-error). Why should you pay me big cash every month otherwise, right? That would be plain dumb to be honest.
So commit now and enjoy knowing things that can give you more advantage in life. Believe me, the things that give you advantages are small, simple things practiced with finesse. Not big ballony stuff. And yes, there is a truth to the saying: "If hard work was the way to a life in luxury, then why are the hardest working people not richer than their bills?". Some of them can't even pay their bills because they lack the capital to do so. What a horrible life to lead. I seriously hope you are smarter than that.
Subscribe to my monthly dealmaking subscribers list if you are interested in getting tips from a real time dealmaker. This list is a closed end subscribers list. There will be a $100 first time fee. After the first month trial you will continue to be billed $80 each month for a continous period of 24 months. If you decide that after one trial you aren't satisfied with what I present then please send me an email urgently so I can remove you from my list of closed ended subscribers. This needs to be done before the second month starts (when the second month has started you are stuck with 24 months of really good dealmaking advise. So please be urgent with your removal request if you want to be removed, thank you).
I promise not to misuse your precious time with long emails without any practial use to you. I will send 1 email each month and only 1 email. This makes it even more exclusive in comparison to many other services on the internet today that almost spam it's subscribers daily. Every email will be sent to you on the 25th every month so keep your eyes open. Please check your spam filters because my emails may end up there in the begin until you accept my emails as legitimate.
When ordering you will need to send me your email adress so that I can verify it against Paypal (send an email from the email used when signing up for the advanced dealmaking service). Send me an email to the emailadress you will encounter when signing up for this service. You will see this email adress in the top of the ordering page. Hope to see you on board I have a lot to teach you guys. But you need to commit as mentioned on my blog. The teachings I will give you will not in any case be displayed on the open, free blog I am currently working on as a treat. I want to give you more advanced stuff to work on (Something everyone else needs to try out by trial-and-error). Why should you pay me big cash every month otherwise, right? That would be plain dumb to be honest.
So commit now and enjoy knowing things that can give you more advantage in life. Believe me, the things that give you advantages are small, simple things practiced with finesse. Not big ballony stuff. And yes, there is a truth to the saying: "If hard work was the way to a life in luxury, then why are the hardest working people not richer than their bills?". Some of them can't even pay their bills because they lack the capital to do so. What a horrible life to lead. I seriously hope you are smarter than that.
Donation
If you like this blog and you would feel like donating anything (even though I don't need it, it sure would be nice having someone showing their appreciation. Nothing talks better like a money commitment).
Dealmaking for yourself
Dealmaking when purchasing real estate or a company
The biggest hurdle people face when trying to purchase companies and real estate is the down-payment. Everyone are having a big difficulty with this. And I'm sad that they do because they miss one very vital point when looking at these two choices of investments. Do you know which one vital tool they lack?
Is it the down-payment? No
Is it bad credit? Seldom
Then what is it? Read on.
Market valuation
When you are looking for real estate (investment purpose) or companies you need to have a market valuation done in every case. Why? The easy, but not the most obvious (probably because very few people use it to their advantage) answer is: Market valuation can help you realise how much a company is really worth or how much real estate is worth. When you know the actual value of something you can actually solve much of your down-payment issues. Not always because sometimes the seller wants more than what the market valuation is showing to be true.
Example
Say you are looking too purchase a property at a price of $100.000. In this case you are required too put down 25% in down-payment. That is $25.000.
Well the problem here is (in this example) that you don't have $25.000 to put down. But you do afford a market valuation guy.
So the thing you will do in this case is to do a market valuation (expert help only) in order to see if the real estate is worth a lot more than the $100.000 the seller is asking for. If not, pass on the deal immediately.
In this case we where lucky. The market valuation (the true value) of this real estate was $200.000. What this mean is you could borrow money for the entire purchase price with a 50% LTV loan. But in order to have the bank saying yes you also need to show how you are going to pay for the bankloan.
In this case you would like to purchase this property in order to rent it out to a tenant with a big and stable salary and with excellent credit rating (because if you have really bad credit rating yourself you really need a tenant who can bail you out a little. The only way to be honest). So before you go to the bank with the market valuation you need to sign up a tenant that meets thos criterias (great credit rating and big salary).
The easiest way to have your banker believe in your proposal is to make it so safe that he would
be a total moron if he passed it up. This "proposal from heaven" works like this:
Have the bank setup a new bank account. Have the tenant pay his/her rent into this account every month and then let the banker take his cut and then pay you what is left. This way he controls the the cashflow, not you (you gotta start somewhere). This account should be a frozen account so that you would have no chance to reach this money. You gotta help the bank in order for them to help you. Especially if you are a money risk.
Hope you have learnt something from me today.
The biggest hurdle people face when trying to purchase companies and real estate is the down-payment. Everyone are having a big difficulty with this. And I'm sad that they do because they miss one very vital point when looking at these two choices of investments. Do you know which one vital tool they lack?
Is it the down-payment? No
Is it bad credit? Seldom
Then what is it? Read on.
Market valuation
When you are looking for real estate (investment purpose) or companies you need to have a market valuation done in every case. Why? The easy, but not the most obvious (probably because very few people use it to their advantage) answer is: Market valuation can help you realise how much a company is really worth or how much real estate is worth. When you know the actual value of something you can actually solve much of your down-payment issues. Not always because sometimes the seller wants more than what the market valuation is showing to be true.
Example
Say you are looking too purchase a property at a price of $100.000. In this case you are required too put down 25% in down-payment. That is $25.000.
Well the problem here is (in this example) that you don't have $25.000 to put down. But you do afford a market valuation guy.
So the thing you will do in this case is to do a market valuation (expert help only) in order to see if the real estate is worth a lot more than the $100.000 the seller is asking for. If not, pass on the deal immediately.
In this case we where lucky. The market valuation (the true value) of this real estate was $200.000. What this mean is you could borrow money for the entire purchase price with a 50% LTV loan. But in order to have the bank saying yes you also need to show how you are going to pay for the bankloan.
In this case you would like to purchase this property in order to rent it out to a tenant with a big and stable salary and with excellent credit rating (because if you have really bad credit rating yourself you really need a tenant who can bail you out a little. The only way to be honest). So before you go to the bank with the market valuation you need to sign up a tenant that meets thos criterias (great credit rating and big salary).
The easiest way to have your banker believe in your proposal is to make it so safe that he would
be a total moron if he passed it up. This "proposal from heaven" works like this:
Have the bank setup a new bank account. Have the tenant pay his/her rent into this account every month and then let the banker take his cut and then pay you what is left. This way he controls the the cashflow, not you (you gotta start somewhere). This account should be a frozen account so that you would have no chance to reach this money. You gotta help the bank in order for them to help you. Especially if you are a money risk.
Hope you have learnt something from me today.
onsdag 19 december 2007
Cash Flow
CashFlow, Why?
I am sorry to say that many starting entrepreneurs today are naive businesspeople. They go around looking for capital without no cashflow history whatsoever. In my world, no cashflow equals no demand. And if there is no demand then why should I as the dealmaker find investors for these entrepreneurs at this moment?
What it takes
What it takes to get respect from any investor out there today is having positive cashflow coming in month after month. Having blue-chip customers so to speak.
It has never been harder to raise capital than today. Because there are millions of people trying out being entrepreneurs. Many of them aren't entrepreneurs by a long shot. They lack perserverance for a starters and secondly they lack the right focus. The right focus is that you gotta make positive cashflow. Try every conceivable way of making that happen (legally of course).
My role as the dealmaker
I care about entrepreneurs having negotiating power when speaking with investors. I really do. But as the great dealmaker Herb Cohen ones said: "I care, but not T-H-A-T much". It's still your job as the entrepreneur to create your own "luck".
I am sorry to say that many starting entrepreneurs today are naive businesspeople. They go around looking for capital without no cashflow history whatsoever. In my world, no cashflow equals no demand. And if there is no demand then why should I as the dealmaker find investors for these entrepreneurs at this moment?
What it takes
What it takes to get respect from any investor out there today is having positive cashflow coming in month after month. Having blue-chip customers so to speak.
It has never been harder to raise capital than today. Because there are millions of people trying out being entrepreneurs. Many of them aren't entrepreneurs by a long shot. They lack perserverance for a starters and secondly they lack the right focus. The right focus is that you gotta make positive cashflow. Try every conceivable way of making that happen (legally of course).
My role as the dealmaker
I care about entrepreneurs having negotiating power when speaking with investors. I really do. But as the great dealmaker Herb Cohen ones said: "I care, but not T-H-A-T much". It's still your job as the entrepreneur to create your own "luck".
Cruising ship
I just gotta tell you about my latest (picked from many others) deal I am involved in right now. I can only give you vague information (I am a dealmaker with a need of having exclusive control remember) about the deal, but I hope you will enjoy it. And if you get so carried away that you might even consider purchasing the damn ship, come along, commit 10% of the contractual price and let's do some business.
Well, back to subject. This ship I was introduced to recently is a passenger ship. A small cruising ship so to speak. Newly constructed 2005. Valued and sold at 7.5 million SEK (you do the currency exchange). What this company wants to do is a sales-lease back deal meaning they want to sell the ship to an investor for 7.5 million SEK and lease it back from the investor at 11% effective annual interest for at least 10 years.
Obviously I took them up on their offer and I am now looking to sell this sucker and make some money. Give value, make money, everybody happy equals good sleep and fun parties. Nothing more to it.
Give me a line if you are interested. And remember, commit 10% of the contractual price of 7.5 million SEK or don't email at all. I will not give away a deal like Santa Claus would. That is just plain nuts. Also remember, if you do commit 10% of contractual price, that you will only get this commitment fee back if the seller says no to you and if the seller is the one pulling out of the deal. And also remember if you can't get it on tape then no money will be paid back. You need to prove the seller was the one pulling out of the deal, obviously. Some way or the other. The best way is to have the seller tell me he was the one pulling out of the deal.
If we don't meet before next year: Have a Very Good Christmas and a Happy New Year. Happy 2008, the year of great new deals.
Well, back to subject. This ship I was introduced to recently is a passenger ship. A small cruising ship so to speak. Newly constructed 2005. Valued and sold at 7.5 million SEK (you do the currency exchange). What this company wants to do is a sales-lease back deal meaning they want to sell the ship to an investor for 7.5 million SEK and lease it back from the investor at 11% effective annual interest for at least 10 years.
Obviously I took them up on their offer and I am now looking to sell this sucker and make some money. Give value, make money, everybody happy equals good sleep and fun parties. Nothing more to it.
Give me a line if you are interested. And remember, commit 10% of the contractual price of 7.5 million SEK or don't email at all. I will not give away a deal like Santa Claus would. That is just plain nuts. Also remember, if you do commit 10% of contractual price, that you will only get this commitment fee back if the seller says no to you and if the seller is the one pulling out of the deal. And also remember if you can't get it on tape then no money will be paid back. You need to prove the seller was the one pulling out of the deal, obviously. Some way or the other. The best way is to have the seller tell me he was the one pulling out of the deal.
If we don't meet before next year: Have a Very Good Christmas and a Happy New Year. Happy 2008, the year of great new deals.
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