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Apartment Investing – The Most Important 8 Words For 2012

If you are like most people this time of year, you are getting ready for parties, eating some food, having a few drinks, and celebrating the New Year. Then comes the hangover!

Look, I too am going to enjoy ringing in the New Year…

However – this is the time of year when I get very serious about setting some goals for the coming few months and for 2012. In fact, I love this time of year because it allows us to “reboot” and get off to a “fresh start”. And the most successful apartment investors I know do the same thing.

Listen, if you are not where you want to be in terms of:

- Financially
- Fitness
- Health
- Spiritually
- Personally
- Etc.

You get the picture…

If you are not at a place that you want to be right now, really in any area of your life (of course we talk a lot about money here and investment real estate which is important but not the only thing) I want to give you the most important 8 words that will get you where you want to go…Really! Here they are:

“What Are You Going To Do About It?”

You see, I have zero respect for people that complain about whatever “problem” or “issue” they have and then do not do a doggone thing about it. They just complain!

For example. I have some relatives that will be visiting us over the weekend and they will whine and moan about not having enough money to do “X” and/or they cannot do some things they really wish they could do because they cannot afford it. They will complain about it and my eyes will glaze over… AGAIN!

Why?

Because they will never do anything about it. You see what separates you from the thousands of others that will be reading this today is whether you actually do something about any circumstances that you are not happy with. Or just complain about it.

Are you really ready to play the game or just sit on the sidelines and watch and complain?

It REALLY comes down to that.

I guarantee you that the people that will be financially successful in 2012 are the people that are doing something about it. By the way, when I say doing something I mean taking action, buying a book and reading it is a step in the right direction but it is true ACTION that gets you from “dissatisfied” to “doing something about it”.

Take the next few days and do some personal reflection. Where are you – REALLY? Are you just complaining and in the end that is all you will do OR are you the type of person that is going to do something about it?

The answer to this question is revealing and frankly tells you what you can expect in your financial life and life in general.

Buying Platinum Jewelry As an Investment

Investing in a precious metal like platinum can be a good long-term hedge against the volatility of the stock market, and there are many ways to invest in it. One of the best ways is to buy jewelry made from pure platinum. This allows you to hold a valuable commodity as well as wear a beautiful piece of jewelry – sort of like having your cake and eating it too!

Here are some great reasons to buy platinum jewelry as an investment:

  • The strength of platinum allows jewelers to make quite intricate, yet extremely durable, pieces without mixing in other metals. Thus, you can have a piece that is practical both as jewelry and as a bullion-type investment.
  • Platinum is about 30 times more rare than gold, yet is usually valued in the same general price range. Since it is so rare and so useful, many people believe that platinum could drastically increase in value in the coming years.
  • Platinum is stronger and more durable than either silver or white gold, and is impervious to rust or tarnish, and so is a great alternative to these metals as jewelry.
  • Platinum is important in the auto industry, for use in anti-pollution devices. As environmental regulations get stricter over the years, the value of platinum should continue to rise. And as emerging markets like China and India continue their explosive growth (car sales in China grew by more than 50% in 2009), the demand for platinum will continue to grow as well. All these factors point to a steady increase in the value of platinum jewelry in the coming years.

Financing Your Business With Vendors

Vendors are critical partners having the ability to seriously help or hinder your business. A good relationship with a vendor will help with cash flow, assist in quality service with your customers, and help you reduce the struggles of managing inventory. A bad relationship with a vendor can cause several headaches including seriously hurting the lifeblood of your business, your cash flow. Most business buyers never consider partnering with their vendors to finance their purchase. Here are a few ideas on how to work with vendors in financing a new acquisition.

1. Extend your terms – If you purchase a business that has a heavy need to work with vendors you maybe able to get your vendors to extend your terms after your acquisition. This can allow your business the ability to free up critical cash flow. Don’t be fooled into thinking that an increase in cash flow will pay for you acquisition. It may help with the temporary lull in business that naturally occurs after the change on ownership. One of my students got a primary vendor to extend his terms from net 30 to a one year, no payment no interest relationship. This worked well for my student and the vendor had established a relationship that can potentially last a lifetime.

2. Sharing a letter of credit – Depending on what type of vendor you have (and your relationship with them) occasionally vendors will be willing to extend or share a letter of credit with a client to help them. For example, a construction company that needs materials such as granite countertops maybe able to go to a granite wholesaler and in lieu of a profit they could share a portion of their letter of credit to finance a portion of the construction. Obviously the vendor would be compensated by future business and a spread on the letter of credit.

3. Trade services for materials or like-kind services- A general contractor could offer to trade services for materials. A grocery store could share space for warehousing with a food supplier in lieu of product. The possibilities are endless.

4. Equity investors – Vendors frequently become squeamish of investing in clients because there can be a change in the perception of the relationship. I think that this can be a perfect marriage between two businesses if it is done correctly and with consideration. For example, a struggling business has past due debt to a smaller vendor. A new party could acquire the business and share a portion of the stock in the company to resolve the past due debt. Vendors are not in the habit of investing in their clients; however there can be a time and a place where it is necessary for the survival of all parties.

5. Leaseback strategies- This is a strategy you can use with equipment vendors. An existing business owns $200,000 in equipment. You sell the equipment to the equipment vendor and in turn leaseback to you. Consequently you free up cash to assist in your business purchase.