Investing Trends

Global demand for private luxury yachts has been increasing steadily over the last five years. Marinas are at saturation point in many parts of the Mediterranean as well as the Caribbean with even Egypt experiencing a rapid rise in Red Sea marina developments. This growth is due to the largest demand for leisure boats ever seen.

Recreational boat ownership is currently a $25 billion international industry and sales are growing annually at 5-10%. According to Showboats International, a publication that tracks vessel construction, in 1993 the world had fewer than 700 private owners with boats over 24 metres (79 feet). Today, there are an estimated 7000 yachts over 24 metres (79 feet) in use.

Another indicator of the strong growth of the luxury yacht industry is the potential for 'flipping'. With waiting lists of up to three years for luxury yachts in the USA and Europe, yacht flipping is becoming a
profitable business for entrepreneurs who commission a vessel and sell it before completion.

Why is luxury yacht ownership and the trend for yacht charter holidays increasing? There are several reasons.

1. People can live tax-free through 'off shore' residency on a yacht, cruising the world and docking in exotic, exciting locations such as Porto Cervo Marina on the Costa Smeralda in Sardinia, Marina Frapa in Croatia, Port d'Hercule in Monte Carlo and Emerald Bay Marina in the Bahamas. Yacht ownership offshore is on a record rise. Show Boats International's 2005 Global Order Book indicated that that year's increase was equal to the entire order book rating for 1995. That equates to a $1.2 billion dollar increase in sales.

2. Baby boomers are splurging on travel as a way to enjoy their retirement, wealth, relative youth and to demonstrate that they are still intrepid pathfinders. Many baby boomers already own everything they could want and now they demand experiences rather than acquisitions. Social marketing research firm DYG's survey of status symbols highlights this. "Travel is the number one non-materialistic way to express success," DYG President Madelyn Hochstein says, "and for the older set, it is also a way to express continued youth and vitality."

3. Yacht chartering now tops the list of the most popular and most expensive activity for people with a net worth of more than US$10 million. In a survey of the spending habits of 198 millionaires by Prince & Associates for Elite Traveler magazine, summer holiday spending in 2007 is up 56% on 2005. In particular, spending on private yacht charters will cost an average of US$384,000 per family this summer with the cost of chartering between $200,000 - $250,000 per week. This is part of an increasing trend among the wealthy for 'experiential excursions' that offer much more than a typical tourist vacation. As with most trends, what the wealthy are experiencing now the upper middle class will be aspiring to in the coming years. The yachts may not be as large, but they will add yet more demand to the yachting and marina industries already straining to meet the demands of the wealthy. Expect yacht prices and the cost of marina berths to continue to rise.

4. There are at least two dozen Russians now worth at least $1 billion, according to private bankers, and thousands of new Russian multi-millionaires have been created in the past five years. Roman Abramovich, the 11th richest person in the world according to Forbes, epitomises the growing reputation of Russians as the world leaders in conspicuous consumption. The mega wealthy Russian has commissioned a new yacht, the Eclipse, being built under a veil of secrecy in Germany, at a cost of around US$300 million. Yacht brokers say at least 20% of the business for new vessels over 200 feet is coming from Russians - more than from any other single country including the USA.

As Mike Kelsey, from the world's leading luxury yacht builders Palmer Johnson in Fort Lauderdale, says, "There are yachts being built for hundreds of millions of dollars and I think we have not hit the ceiling yet. Although, I will say there comes a point when a yacht is no longer a yacht; it is most certainly a ship!"

One of the most important attractions for the tourism that comes to Manzanillo is fishing. The Pacific Ocean provides an abundance of fishing opportunities for fishers of all different levels. Manzanillo is located between Puerto Vallarta and Acapulco along the western side of Mexico on the famous Gold Coast. These waters are famous for the fishing, and Manzanillo is famous for sailfish. Manzanillo is self proclaimed the "Sailfish capital of the World", and offers fishermen a unique experience. Fishermen can enjoy the clam waters of the Santiago Bay, or go offshore fishing in the Pacific Ocean. Along with the historic sailfish, fishermen can also catch many other native species such as: giant tuna, blue, black, and striped marlin, and dorado (Mahi Mahi). Unlike most offshore fishing trips that require 2-3 hours to reach the fishing destination, Manzanillo is unique because the offshore fishing takes place only 15-20 minutes after you leave the harbor. The depth of the Pacific Ocean makes a perfect environment for many billfish and Manzanillo uses this advantage to attract fishermen from all over the world. The fishing in Manzanillo can be competitive. Since 1957 the international sailfish competition has been held around the November 20 Revolution Day holiday, and the national sailfish competition is in February.

Manzanillo is smaller than most Mexican tourist locations, but is starting to accommodate for more tourists and residents. The harbor was recently modernized and deepened, allowing access to all major shipping lines around the world. Some cruise ships dock in the Manzanillo harbor and let their passengers enjoy the small town atmosphere. Manzanillo passed Veracruz as the largest port on the western coast of Mexico per volume of cargo; it can admit ships of more than 30,000 tons. Fishing trips in Manzanillo offer passengers more than just fishing. Whales, sharks, sea turtles, dolphins and porpoises play along side the boat and offer passengers a break from fishing. No matter what month you are planning a trip to Manzanillo, fishing is always in season. In Mexico they say, "The only way you do not catch any fish is if you never get on the boat."

Unlike Cabo San Lucus, Manzanillo is a small un-modernized town that still embraces rich Mexican traditions. Manzanillo is not as famous as a tourist attraction, but Manzanillo is known for big tournament fishing. Manzanillo offers visitors great fishing opportunities along with the atmosphere of a traditional Mexican town.

A common method of investing in real estate is doing a flip - buying and selling the same property in a short period of time. For the purposes of this article, there are basically two types of flips. You can buy a house at a wholesale level and flip it to another investor at a sort of wholesale level to pocket a small profit. Or you can rehab a house that you purchased cheaply or bought from a wholesaler and sell it to a retail buyer. In both instances, the goal in the investor's mind is to hold the property for a fairly short period to free up the cash for the next deal.

The challenge in this situation is that unless creative tax strategies - like a 1031 exchange - are followed, you will usually pay taxes on the gains at the short term capital gains rate - the most expensive tax on your profits that there is. In some cases this is OK. In others it is avoidable.

Let's examine the three levels of taxation that can affect a flip type house situation and discuss strategies that may maximize your after tax return on investment.(As always, it is best to discuss any scenario with your real estate investment savvy accountant to be appraised of the most current tax laws as they affect your particular flip scenario.)

When it comes to taxes and real estate investments, time is your friend. If you own a property for more than a year, you will get preferential tax treatment when you sell the property. Unfortunately, for the real estate investor, time is your enemy as more time means more holding costs and less profits realized. The trick is to find the proper balance and solution for each property to maximize the amount of profit you get to keep when the sale finally occurs.

There are basically three tax scenarios for buying and then selling a property in a specified period of time.

The first scenario is for a buy/sell cycle that runs for less than one year. If you purchase a house and then resell it before one year passes, your profits will be assessed at the short term capital gains rate. Short term capital gains rates are the highest amount you will pay in taxes on your profits.

The second scenario is where you have owned the property for more than one year. In this instance, you will pay taxes based on the current long term capital gains rate. This rate is generally significantly less than the short terms capital gains rate.

The third scenario is the best. If you are dealing with an owner occupied property - such as a flip where you live in it and make the repairs - you can keep all your profit tax free. It is required that you own and live in the property for at least two years out of any five year period. If you can meet this scenario, you can keep up to $500,000 in profit if you are married or $250,000 in profit if you are single. This profit is totally tax free and can be used for any purpose you wish. It is an extremely powerful tax investment strategy if it fits into your lifestyle choices.

After reviewing these three scenarios, you can tell that the best scenario from a maximum profit standpoint is the last scenario. If you are the type who wants to live in the house you are fixing and wait two years before selling, it is certainly a very powerful way to build great wealth over the long term. If you choose the right house in an area of rising property values and add value to the property, you can earn a significant amount of profit in two years and enjoy it tax free when you sell the property. It certainly makes a huge nest egg for your retirement or your next property purchase(s).

The only problem with this scenario is that you can do this on only one house at a time. So if you plan on flipping more than one house every two years, chances are very high that you will be encountering one of the first two scenarios on every deal. And if your investment strategy is to do more than one house every two years, you should not let tax consequences stop you. But you do need to plan for them in your profit formula for each house.

If you are wholesaling properties, you will hopefully always fall into the first category. And that is OK for a wholesaler. A wholesaler's goal is constantly making your money work for you. If a house sits too long, it costs you momentum and profits. You are earning your profits on the volume of properties you are flipping. Tax consequences in this scenario are simply a cost of doing business.

People who rehab houses to sell at retail have a more difficult decision to make. If you can rehab and resell a house for very quickly to get your money working for you again, it probably makes sense to take the hit on taxes that you encounter when you pay short term capital gains because you have your money back and working for you again. Again the tax on the profits is just a cost of doing business. And if you make $20,000 in profit and have to pay $6,000 in taxes, you still made $14,000 in profit. And you recovered your original investment. So even with a large tax hit, you still walk out of the deal with more than when you began the rehab project.

Of course, some rehabs take longer - several months or more. And sometimes , the profit in the house will be very large when the rehab is complete. In these instances, you need to calculate the cost of holding the house until one year has passed vs the additional tax liability that is created from selling it before one year passes. In this instance, you may choose to just hold the house empty until you can sell it for maximum profit. Or you may choose to do something creative in the sales process and either rent it out for a while (knowing that you will have to polish up the house before final sale) or offer it for sale via a lease option. Either technique will stretch the length of time that you hold the house, help cover the costs of that holding period (or even put profit in your pocket) and let you get that preferential tax rate when you finally sell the property.

Understanding and applying the current tax laws to your real estate transactions is an essential piece to understanding the total profit picture of a deal. If you don't understand them and plan for them, you could be in for a very large surprise tax bill at the end of the year - one large enough to cripple your real estate investment activities for a long time. Your best resource for understanding the tax ramifications of any investment is your real estate savvy accountant. You should have a person like this on your investment team to be sure you are maximizing your cash flow. If you don't you could be losing $1000's of dollars you didn't have to lose.

Farming has been used by real estate professionals since the 1950's. Before that all real estate transactions were handled by bankers, attorney, and accountants. If someone was moving these were the people who knew about it first and made all of the arrangements. Even if you were relocating to a new city or state these people would call their connections in the new town and someone there would handle it for you.

This all changed during the 1950's. Real estate offices began to open and real estate agents began to specialize in buying and selling real estate on someone else's behalf. These offices were small, with only two or three agents at the most. In the beginning only men performed the job of real estate agent.

As more real estate offices opened up it became necessary to divide the work into areas or territories. This became known as farming. The owner of each office would assign a farm to his agents and they worked in that neighborhood, helping the homeowners to list their homes and look for a new one.

This was accomplished by walking through the farm area regularly to speak with the homeowners and to introduce yourself to anyone who did not yet know you. The real estate agent would follow up with a phone call and then a letter or postcard. The agents would give small gifts to the homeowners at various times of the year. These gifts would have the name, address, and phone number of the agent and their office. This made it easy for the homeowners to call the agent without having to look up the number.

This practice continued well into the 1990's. At that time computers and other technology began to surface and suddenly it was possible to contact more people in less time, and for less money, than ever before.

Even with the new technology it is still a good idea to walk through your farm two or three times a year. This will help keep you informed of what is going on in this area and what needs the homeowners may have.

This is what Real Estate is all about somedays. Agents who have the audacity to take matters into their own hands only to have their plan backfire right in their face!

I`m dealing with a "REAL DIVA' type agent who apparently has forgotten the rules of Real Estate.

Rule #1= Present all offers.

Rule #2= Don`t make decisions for your clients.

Rule #3= Don`t call the other Realtors client attempting to cut out the other Realtor!

Yes, this is exactly what this Diva had in mind!

We`re dealing with an investor who was looking at purchasing a Duplex Apartment in North Miami Beach. The offer was a "Slam Dunk" and should have been accepted without any issues.

The problem was that the "Listing Agent" wanted me to agree to take a lessor commission because she promised the seller a "Higher Sale" price.

The Diva told me this with a straight face as if I should have sympathy for her and the seller!

She was agitated when I refused her request!

The offer was rejected and the buyer and I moved onto another duplex in which we`re closing on in two weeks.

Yesterday, the buyer called me to inform me that "Diva Agent" called him inquiring about the interest of the Duplex. It was her opinion that since two weeks elapsed, she could attempt to deal with my client directly, cutting me out of the deal! Cute! I kid you not!

I called the Diva Agent to find out what`s going on!

Me: Are you out of your mind? Calling my client to inquiry if they have interest in the duplex? What are you doing?

Diva Agent: I`m only doing what you`re buyer wanted. He called me!

Me: Really? I guess you feel that I shouldn`t be told? I`m the agent who wrote the offer, did you forget?!

Diva Agent: Look, I don`t have to tell you anything, this person only wants to deal directly with me. The offer you sent us was rejected, you didn`t want to take a lesser commission. I have a right to deal with the person who wanted this duplex!

Me: I guess you make you`re own rules as you go by! No problem, I`ll take care of that situation by filing a complaint!

Diva Agent: I`m very well known in my area, my broker will protect me. I`ve done this before!!!

I guess this Diva Agent believes she can part the "Red Sea" as well!

I had a good laugh. The Broker may protect her,but I`m sure her board will look closely at her behavior! We`ll soon find out!

Conveyancing is the process of transferring the legal title of a property during the buying and selling process. It is possible to do the conveyancing work yourself and save £250-300. However, unless you like that sort of challenge and have oodles of time to spare. I wouldn't advise it.

Having a good solicitor or licensed conveyancer is going to make the whole process much quicker and easier. Solicitors' involvement in the buying and selling of land is historic & goes back hundreds of years.

Solicitor or Licensed Conveyancer?


There are in fact two classes within the legal professional that are capable of carrying out conveyancing work, Solicitor and Licensed Conveyancers. Licensed Conveyancer scope to practice independently only came about in 1987 as a result of the Administration of Justice Act 1985. Prior to 1987 conveyancing could only be carried out by qualified solicitors. As a result, conveyancers were saddled with large legal practice overheads resulting in them charging relatively high fees.

Introduction


The legal process of a buying a property is often shrouded in what seems like a never ending series of: form filling, searches, signatures, delays, contracts and general confusion. I have bought numerous properties and sold quite a few. Each time the process starts I find myself confused! So what's involved?

The Process


In order to buy a property you need to have a number of things in place: a willing seller (vendor), a willing buyer (purchaser), an agreed price and a set of two solicitors representing each of the party's involved in the sale. Assuming all those are in place, how long should things take? The conveyancing which is the legal term for a property transaction, should take between 6-8 weeks; although I have a friend that swears his solicitor can do it in three. The reality is that with so many forms and bits of paper involved; delays almost become an inevitable part of the process. The Government has proposed to reform the conveyancing law so that this should eventually lead to less paper and more 'button pushing'. In theory this should do much to eventually speed things up. Having said that; the system will still be inevitably reliant on somebody pressing the right button at the right time. I am sure that ultimately the process can only get quicker as it becomes more digitised. As things stand now the process can be broken down into approximately 6 key stages.

These are:

1. Searches


2. Document checking


3. Mortgage offer


4. Completion of contract


5. Exchange of contracts


6. Completion

The main stages explained

I now go on to look at the six main stages in a little more detail:

1. Searches


There are a number of different searches that need to be carried out by your solicitor or conveyancer. If you haven't got one already or think yours is too expensive have a look in the Recommended Links for a solicitor or conveyancer that you think is right for you.

These searches are ostensibly to satisfy you and also the mortgage company that the property you intend to buy is not subject to action by the local authority or has been affected by works carried out in the past. All of these could have a detrimental impact on the property's value. The searches are as follows:

Local search
These searches are sent to the Local Authority and should reveal such matters as:

a) Enforcement notices


b) If the property is subject to outstanding conditions in respect of improvement grants


c) Planning permissions


d) If the highway is publicly maintained

The results of these searches can take anything from a few days to several weeks to be returned (dependent on local authority and their workloads). Some authorities now offer an expedited service for a small additional charge and should be able to do the search in a couple of days. Before the purchaser's solicitor can send for the local authority searches they like to have a plan of the property. This comes from the seller's solicitor, normally when they have received the Vendor's Title Deeds. With all these bits of paper floating about, it's easy to see how delays can occur I would therefore emphasise the importance of ensuring that where possible you keep a close watch to make sure that they don't.

Drainage search


This is a separate search carried out with the Local Water Authority or the Local Authority where they act as agents. It's to ascertain where the drains run and who is responsible for maintaining them. Most of the major drains (e.g. the ones running down the road) will be the water company's responsibility, whilst generally the drains on your land will be for you to maintain.

Mining search


If the property is in or close to a current or former mining area, a mining search is carried out with the Coal Authority. These searches aim to provide information on whether mining has occurred around or underneath the property. The main worry is obviously the potential of damage caused through subsidence. This, if you ever bother to read your standard building insurance is normally excluded from cover. It is possible however to take out specialist insurance that covers you against any repair works that have to be undertaken as a result of subsidence. Given the massive contraction of the UK coal industry, this issue is less important now than it was; however if you are in a coal area then it should highlight any potential problems. Whilst the search will indicate whether mining works have been carried out, they won't guarantee that there will not be a problem in the future. Therefore, in the best traditions of caveat emptor or 'buyer beware'; the purchaser will at least be aware of the situation and can then make decisions based on the information at hand. I understand should you have a property that has suffered from subsidence; it is possible to make a claim for compensation with the Coal Authority

Other searches


From time to time it is also necessary to carry out other searches relating to the property. One search now carried out by most solicitors is the environmental search. This is provided by one of the specialist environmental companies such as Landmark Information Group. For about £40 they will collate additional information not required as part of the Local Authority Search about other potential environmental hazards in or around your property. These include proximity to waste disposal sites, likelihood of the property being on contaminated ground, air quality to name but a few. They also provide an assessment of the potential risk of the land being designated as contaminated as defined by the Environment Protection Act 1990. All this has come about to satisfy the lenders that they are aware of the risks associated with the properties that they are issuing loans on. They are concerned that properties could have their value and thereby their security detrimentally affected as a result of a sudden change in approach by Government to land designated as contaminated.

2. Document checking


I'm sure that conveyancers will be aggrieved by this description. In many ways this is the skilled part of the 'job' as it is this part that makes sure that the vendor gets what they thought that they were buying when they agreed to purchase. This stage involves the solicitor sifting through the key documents in relation to the sale; the contract, title deeds, seller's replies to enquiries.

a) Contract


This is the formal agreement and provides the terms of the sale of the property to the purchaser. It describes the property, purchase price and any special conditions that may be attached to the transaction.

b) Title deeds


The conveyancer will check to see whether there is good title to the property, in other words whether the property is what it initially appeared to be and that the vendor does indeed own it. If the property is registered and most property, particularly residential is; then the solicitors will carry out a search with the land registry www.landreg.gov.uk . This should be able to tell them in the Title Register who owns the property, the nature of their ownership (freehold / leasehold) and any charges (loans) outstanding. They will also be able to provide an ordnance survey plan showing the extent of the land owned outlined in red. If necessary the conveyancer will check the title deeds for any additional information regarding the property's title. They may do these checks for the Mortgage Lender who frequently they also act for. Their responsibility to the lender is to ensure that the mortgage company is fully advised of anything that may affect the value of the property and therefore have an impact on the security of the loan.

c) Replies to enquiries before contract


The seller will have a list of questions about their property. For example, does the seller know of any disputes and are there any alterations to the property requiring planning permission. In addition, the seller will also have to provide a list of fixtures and fittings that state what is to be left/removed from the property on completion. This information is used to form part of the sale contract and therefore it should make clear what is included in the sale. If the property is leasehold, the seller's solicitor will also be asked to provide additional information from the Landlord or Management Company.

3. Mortgage Offer & Insurance


Copies of the Mortgage Offer will normally be sent to the conveyancer, the applicant and the broker if one is used. This offer sets out the amount of the advance and the interest rate payable on the loan, together with any other specific conditions attached to the mortgage. The conveyancer will go through these details and should make the purchaser aware of them prior to signing the mortgage loan agreement that accompanies the Mortgage Offer.

One major requirement of any offer is that satisfactory buildings insurance is in place by the time of completion. Therefore, it is advisable that cover is in place well in advance of the completion date. Property Hawk has managed to negotiate some preferential insurance rates with partners because of the numbers and experience of it's users. Have a look here for not only some of the most attractive rates in the market, but also the most comprehensive terms. The mortgage company will insist that a copy of the insurance schedule with their interest noted is supplied to them before they will release the mortgage.

4. Contract


This is the document that has been drafted by the seller's solicitor. It sets out the terms and conditions of sale. Once the search results have been returned and the Mortgage Offer has been received; the conveyancer will normally expect the buyer to go to their office to sign the contract and the mortgage deed or loan agreement. If the sale is being conducted remotely via the Internet or it is not possible for the buyer to get into the office; the solicitor can advise the purchaser in writing of the findings from the searches as well as providing copies of the contracts and loan agreement that need to be signed. At this stage the conveyancer will require the payment of the deposit. This is normally 10% of the purchase price.

5. Exchange of contracts


The exchange of signed contracts by the buyers and sellers conveyancers is the stage where the sale becomes binding. In other words neither party can simply walk away from the 'deal' without the other party having some legal recourse. Prior to exchange, the parties agree a completion date, which will be worked into the contract prior to exchange. Once contracts are exchanged, the seller's solicitor will normally hold the deposit money until completion.

6. Completion


Following exchange both parties make their final arrangements. The following matters must be satisfied before completion can take place:

a) Transfer Deed and Requisition on Title


The final questions ("requisitions on title") will be submitted to the Seller's Solicitors, together with the Deed of Transfer for approval. The Transfer Deed is the document that transfers the property from the seller to the purchaser and also acts as a receipt for the purchase money paid.

b) Pre-completion searches


A bankruptcy search is carried out against the purchaser's name(s). This shows any matters that may affect the mortgage advance. A clear search is required to proceed to completion. A final search is also made against the seller/ their land. Other searches are necessary in some circumstances and you will be advised of them by your solicitor if this is the case.

c) Prior to completion the mortgage advance monies will be requested from the mortgage lender by your conveyancer. The conveyancer needs cleared funds from the mortgage lender in order to complete. Lenders require anything up to 7 working days notice that the monies are required and this will sometimes influence the completion date

d) Any funds required as part of the transaction, including legal fees and disbursements, including Stamp Duty are requested and will need to have cleared prior to completion

FINALLY – completion and the property is yours. The balance of the purchase price is forwarded to the seller's solicitors by Telegraphic Transfer on the morning of completion and upon receipt the seller's solicitors will send the following to the buyers conveyancers:

a) Transfer Deed, signed and dated by the Seller specifying the date of completion (this is then sent to the purchaser to sign)


b) Title deeds


c) If there is an outstanding mortgage on the property, a promise to repay it with proof of repayment as soon as possible.

Following completion other outstanding issues will be dealt with, these will include:

a) Stamp duty


If the purchase price is over £125,000 the Transfer Deed will have to be submitted to the Inland Revenue and the respective stamp duty paid


b) Registration


When the Transfer Deed is received from the sellers' conveyancer duly stamped, it will be submitted to the Land Registry, together with the Title Deeds, the seller's previous mortgage discharge form (that is proof of repayment of previous mortgage) and the Mortgage Deed for registration. Once the completed registration is received the deeds will be scheduled and sent to your Mortgage Lender.

Few cities in the world live a moment as important as the growth of Panama's real estate industry. Distinguished representatives from important disciplines related to the real estate sector find themselves developing projects of international caliber on the Isthmus of Panama. Such is the case for Donald Trump, Philippe Starck and Frank O. Gehry, three protagonists and three different projects united by a single thread: They all share the same backdrop for their masterpieces, Panama City.

Frank O. Gehry: Architect of a Dream


And it really is "a dream come true" for Panama. Soon, Panama will become one of the few cities in the world to possess a masterpiece by Frank O. Gehry, an architect that has created such important emblems as the Guggenheim Museum in Bilbao, Spain and the Walt Disney Concert Hall. Gehry is the designer of the plans for the Biodiversity Museum, located on the Amador Causeway. The museum's expositions, designed by the Canadian firm Bruce Mau Design, one of the most important in the world, narrate the history of life and of Panama as a biological crossroads. Without a doubt, it will be an obligatory stop for tourists and Panamanians that continue to traverse this natural "Bride of the Americas," since it is sure to be a monumental work in Panama. For more information, visit: http://www.biomuseopanama.org/

Donald Trump: The Real Estate Tycoon


One of the richest and most powerful men in the world, having built his fortune two times thanks to real estate, has set his sights on Panama, a country that he fell in love with during a Miss Universe pageant, according to his own accounts.

Trump's real estate project in Panama, the Trump Ocean Club, will be a residential, hotel and office complex possessing 68-stories in Punta Pacific. The influential Trump name combined with its impressive architecture of 2.6 million square feet (252,000 square meters) will surely lead it to become an architectural icon of Panama. For more information, visit: http://www.trumpoceanclub.com/

Philippe Starck: Intelligent and Interesting Design


Alongside the world's great cities, such as New York and Paris, a building is being designed in Panama by the famous French designer Philippe Starck, under the firm Yoo, a real estate firm that strongly emphasizes design.

The concept of Yoo is to create personalized spaces according to the necessities of the inhabitants. Societies are changing, and people want to live, work and have fun in one place or in close proximity to their home. To be on the cutting edge of this trend, Yoo's projects plan to convert themselves into "vertical villas."

With his unique vision of design and esthetics, Philippe Starck will apply his personal touch to Yoo's building located on Panama's Balboa Avenue, Sales will begin in the next couple of months, and its promoters have announced that it will completely sell out the day it is launched. So, if you are an admirer of Starck's design, get yourself an invitation and reserve one now!

Even though the real estate market has entered a "correction cycle," there's no need to sit on the sidelines, waiting for the market to rebound. There's still money in flipping houses, even during an economic downturn. Here are a few suggestions:

First, save money on your building materials. A good place to find discounted construction materials, paint, and appliances is at ReStore, the retail outlet of Habitat for Humanity. You can purchase quality used or surplus building materials, doors, lighting fixtures, and hardware for your project at a fraction of the normal price.

If you don't have a ReStore nearby, shop around for an appliance store that offers returned, refurbished, or scratch-and-dent appliances at a discount. If you let it be known that you're in the market for those kinds of items, you may find a store owner who'd rather sell those types of appliances to you rather than writing them off altogether. Ask. You have nothing to lose, and profits to gain--especially during a market downturn.

Another way to sell your house is to research your target buyers and then make sure your project meets what they're looking for. When the market's hot, you can get away with painting the walls white and installing neutral carpet, but when times are tighter, you have to be more creative. If you know your potential buyers, you can tailor your flipping efforts toward attracting them.

Along that same line, don't underestimate the value of staging a house to attract your target buyers and to prompt them to offer top dollar. You don't have to totally furnish it. Just add a few strategic decorations to prompt potential buyers to begin visualizing what their own furnishings would look like in the home.

Finally, it's important to close sales quickly during a down market. If you find someone who really likes the home, don't spend too much time negotiating. The term "buyer's market" means that buyers have the advantage, so when you find someone willing to buy your house, don't try to squeeze out every dollar of profit you can. Take your profit and move on, since you can never be sure when the next offer will come in--and in real estate especially, time truly is money.

It doesn't matter if the market is up or down. You can still make money flipping houses if you plan carefully--and then stick to your plan.

The Internet has made it possible for investors to be in a constant contact with the stock market in order to be updated with the volatile ups and downs of the stock industry.

Purchasing Of Stock Online

Trading stock online has made possible for everyone to enjoy the thrill of stock market from the comfort of your home. There are many renowned companies that offer alluring options to the investors to purchase stocks online. The most beneficial thing in trading online is that the online brokers do not ask for heavy commissions but it is generally in the case of traditional brokers. There are many companies that even proffer low or even zero commission on each and every trade made through them.

You should always opt for reputable and dignified online companies as they will always guide you appropriately in online stock trading. They always update you with the latest information and news in terms of stock prices, different types of stocks, and the tools that will help you in purchasing stock online. The only thing needed by these companies is an online account to start investing.

The main advantage of having an online account to trade stock online is that you can always update yourself by logging into it from any corner of the globe thus this will help you in having a constant contact to continue your online trade even if you are out of town.

The online stock trading offers you a state of liberty where you can invest according to you. The freedom or liberty mentioned here is in terms of choosing the stock and investing according to your comfort. All important information is available on the sites of online brokerage services to guide you.

There is also an availability of a software while trading online which will assist in keeping a track of your progress, keeping a track on the stocks as per your requirements, and will guide you in buying stock online. This software has been proved very successful in the industry of online stock trading as it links with the online resources to have a record of all your trades.

Online Penny Stocks

Penny stock is a stock trading under $5 and it is also known as microcap stock or nano stock. The penny stocks are not traded in the similar manner as the other stocks are traded rather they are traded in over-the-counter market. In this case, brokers are not paid any types of commissions rather its money is on the spread (spread is a difference between the bidding price and ask price). They are purchased and sold at any fixed price rather than numerous different prices.

In case of inside and outside bid and ask, there are always two bid and two ask prices. Outside bid and ask has been found most interested. In case of penny stock, the broker possesses a risk which is associated with the market price fluctuation as it is held in its account. There are many problems associated while trading penny stocks as well as the chances are also high to lose large amount of dollars. Therefore, you should always consult a good broker in order to be on the beneficial side.

Trading stock online is the best way for those who want to operate independently in the world of investments.

When it comes to architecture, old houses hold an allure and history that is mesmerizing in its own right. Whether an old home remains intact through past battles and wars or has withstood the awesome power of Mother Nature, the construction and period detailing of an old house is one that is quite appealing to a homebuyer. For some, a small amount of pocket change can obtain an abandoned or unused residence with the aim to turn a sizable profit.

You can make a bit of extra cash or start your full-blown business by scanning for 'diamonds in the rough' by checking a few common resources. One of the most helpful places to start looking for a potential old house is through the National Register, which lists an array of homes that are no longer in use. These vacant beauties still have more than enough life left, and are sometimes wasting away as storage space or falling apart at the seams due to neglect. Also, since properties on the National Register list hold some historic value, they are more likely to attract the interest of a wide range of potential buyers, including individuals, museum curators, and organizations.

Sometimes, a rundown old house only needs a little tender loving care and a motivated individual with enough drive to tackle an involved do-it-yourself home improvement project. Many people have spent time fixing old houses, restoring their allure and detail, and upgrading basic features.

While some old houses need a complete session of revamping, others require less-involved maintenance and repair, such as a new porch, re-framed windows, or a fresh coat of paint. Before fully committing to the purchase of an old house, it is important to access the expected costs of repair you will face. Houses that need a complete reworking of the plumbing system, a new second floor, or rewired electricity may pose a price tag a little out of your budget.

Paying a full professional to conduct an assessment of a potential property may prove well worth the cost. You never know when a house only calls for minimal repair that will boast major benefits in the future. For example, one may purchase an unused and abandoned National Registry house for about $12,000. Restoration costs could range from thousands of dollars to more than $150,000 but the payback could turn out unimaginable. Some people have resold fixed-up old houses for more than $500,000. The repayment in capital is priceless.

Spreading the Word

Taking out a newspaper ad is a great way to alert the public that you have a restored home to share. This may interest organizations looking for a place to build a museum or hold their activities and events. Choosing a realtor that specializes in such houses will also know how to effectively market the sale of your revamped property through heavy visual techniques. In the end, you will make money from a project that may turn out to be a rewarding, life-changing experience and one you can create a lucrative full time business out of.

If someone were to give you £100,000 in less than four years for only a £20,000 investment now, you would probably snap their hand off, right or wrong?

This property investment opportunity offers anyone the chance to make over 100% profit per year, what savings account a rate of 100%, if your lucky your more likely to get a 6% return on investment.

The country we are talking about for making amazing profit potential from is the European Sate of Bulgaria. Bulgaria is now firmly in the European Union and is already starting to reap the benefits of this inclusion including massive investment in transport systems, motorways and its economy.

The Times recently published an article stating that Bulgaria was the new Spain for property investment and showing similar signs of the Algarve almost fifteen years ago when property was dirt cheap, if you try to buy an apartment on the Algarve you would be hard pressed to find anything under £150,000 today.

In Spain a saturation of costal properties have flooded the market for the demand of foreign investors, unfortunately for the Spanish property market most European investors have now turned to Bulgaria to purchase property resulting in a crash in Spanish property companies share prices which has directly affected the Spanish economy.

With this in mind and the amazingly cheap cost of living in Bulgaria, you can now see why Bulgarian property investment can make you a fortune if done now before prices rocket.

Currently a brand new off plan apartment on the coast of Bulgaria with sea views and near to towns and facilities will only cost you at present £20,000. Most Europeans can afford that amount for a second home or investment, so off plan property is snapped up quickly but bargains can still be found if you know where to look.

Bulgarian property has been showing extremely promising increases over the last few years which is set to continue. Last year an increase was estimated at 30% on the previous year. The next two to three years for Bulgarian property price increases has been stated by property experts to break all records.

I have personally invested and have already made a 40% increase on my investment in just under a year with the off plan purchase programme offered by many companies. I estimate to make over £100,000 in the next four years from my small initial investment.

If you would like to know more about how to locate cheap Bulgarian property and the best areas to invest in now before its too late, why not click on the link provided below or in the resource box provided with this article.

How bad is it really when you have realized that you're losing your 'Midas Touch' on your internet business? What would you do if your sales weren't as good as before? Before you start to panic and blame others or yourself for what's happened to your precious online business, try to list down the areas of your website you think is the weakest. Start from the items on that list and check each of the areas you've listed down.

There are many factors how an online entrepreneur sees his online business plummet to nothingness; all the hard work done, ignored and to think there are millions upon millions of internet users out there. It's impossible that you're not gaining anything.

That's just it. Impossible is correct and the truth is, you probably just left a detail or two in how you market your business online. Remember, aside from the ads that you distribute offline for your real estate business, things are easier to do when your customers are online, so it's best that you work more on how to get noticed by online prospects.

You see, there are many websites out there that just doesn't have complete contact information. In a real estate business, this is a big blunder. Stable contact between you and the customer is a must in the real estate world because its one way of showing them that you are the responsible and right agent they need to work with, the one person they should entrust all the real estate matters.

Just in case you get the most number of real estate visitors a day but gets less sales than expected, put a space just meant especially for your visitors where they can leave their contact information. You can do this by offering them anything free and worth reading. Specialize on what you know about the real estate business and share it with them.

It's okay if you never hear anything from them again but what you don't know is that a good number of these visitors could become your prospect just because you give them quality offers enthusiastically without appearing desperate in getting their attention.

There is more to Orlando than Disney and theme parks that escalated Orlando's economy and growth. Orlando has a varied community and great neighborhoods along with good schools and health care. Natural beauty is abundant with plenty of lakes around Orlando real estate.

It is worthwhile to remember that when you are looking at the Orlando real estate market, it is one of the foremost metropolitan areas in the world. The job market is good, and there is an international airport that connects Orlando to any place globally. Any Florida real estate agent will tell you that you can expect a great quality of life and entertainment, encompassing a range of outdoor activities, nightlife for the socially active, great dining and professional sports. Other metropolitan areas like Tampa are a short drive. Orlando has wonderful outdoor entertainment options in the form of the Ocala National Forest, Lake Woodruff National Wildlife Refuge, paddle boating, and bird watching. There are many world-class beaches and fresh water lakes to explore on the weekends.

What makes it attractive to invest in Orlando real estate is that the cost of living in Orlando is below the national average. Quality of life is very good in this constantly developing economy with safe neighborhoods and beautiful natural environments.

According to an Orlando real estate agent, buyers are attracted to Orlando, Florida from everywhere, and it is not just the climate. Combined with a strong job market, there is real estate available to suit all budgets, making the investment one of great value.

Websites for Orlando real estate and Orlando real estate agents are very helpful in assisting homebuyers find the right property in Orlando. In fact, all you have to do is register with your profile, which is kept confidential, giving details of the kind of property you are looking for. These websites have a system by which they let the neighborhood real estate agents know about your needs. Subsequently, they receive proposals, which are then sent to you through email, after which you can take a look at the information. Select an Orlando real estate agent, who will then help you find the right place for the right price.

Since Orlando is a competitive market with many real estate options,it is best to do your research before you decide to invest. Orlando Real estate agent websites even carry related information such as descriptions, photos, maps and information about living in the particular neighborhood.

The broker told me not to sell because the mutual fund I owned had a 2% redemption fee and they would penalize me if I did.

I got to thinking about it and did some simple math to see what that would cost me if I sold. Several months ago I bought $5,000 of the fund. Fortunately, it was a no-load so I was not charged any commission. It seems that the brokerage house has instituted this fee for the sole purpose of dissuading me from ever selling it.

Now I could sell it for $5,500 and make a nice $500 profit in the last 3 months. Their charge of 2% would be $110. In other words they were charging me 22% of my profit which you can easily figure as $110/$500. That's a long way from 2%. What a rip. My net was now $390.

More and more brokerage companies and mutual funds are adding redemption fees. No-load mutual funds are adding the fees even when you have an account with the fund family. Why? The fund managers are paid their 6-figure salaries not on how much profit they make for you but on the amount of money they have under management. He can generate big money for himself while you lose.

The whole idea of the mutual fund was to have a professional manager make money for you yet last year more than 95% of stock mutual funds lost money. It is pretty obvious you don't need this guy to mangle your cash.

In the future before you purchase any fund ask the broker of there is any kind of redemption fee. If there is then find another fund and/or another broker. Discount brokers are the best because their brokers are not allowed to give you advice. You will find that advice from a broker is a eulogy for your money.

Redemption fees are like a ball and chain on your ability to make money. Any professional trader (and I was a floor trader for 17 years) will tell you that a small loss is OK, but never allow yourself to have a large loss. Excess fees are put on by brokerage companies and funds to keep you from selling out of a losing position. The broker does not make any money if your cash sits in a money market account so he will do everything legally possible to keep you from selling.

Buy and Hold might be OK for long-term bull markets, but during the current long-term bear market you should be able to sell without adding injury to insult. Redemption fees are a method to intimidate the investor from selling out a losing position. Don't buy anything that comes with a ball and chain.

In the end of 2005, the employees of Moscow's real estate agency Penny Lane Realty encountered the unexpected problem. Daily people called company with the question :

In the end of 2005, the employees of Moscow's real estate agency Penny Lane Realty encountered the unexpected problem. Daily people called company with the question : "I want to purchase an apartment and immediately rent it out to clients, who I can talk to?" The answer was not easy, because sales and rent in Penny Lane Realty are responsibilities of two different departments. As a result for people involved in this type of situation company gave out a special phone number, which did not stop ringing the entire following year. Penny Lane Realty employees they were very proud of the way they resolved this problem, but suddenly bells ceased.

Number of people who desired to become private investors in real estate nowadays are very limited, and many of those, who were involved in this business past years, are now parting with the last properties they own, because the apartments in Moscow for rent are no longer bringing huge and stunning income gains in tens of percent annually as it used to before. Last week for the first time investments into real estate yielded in the plan of profitableness to long-term deposits into the banks.

Real estate market hustlers depart, prices of real estate in Moscow are reducing - even if it just a little, but for a few months in a row. It seemed this was the desired results for Russian government, that this was what most of the Russian middle class wanted, which in had no way to allow themselves to purchase new apartments, after the last year's jump of prices. But real estate experts are calm - in their unanimous opinion, the only consequence of present "stagnation" will be the clearer price separation of the apartments in Moscow into the elite and of the economy-class. The latter will fall in price, but not too much. There was no bubble, therefore, it won't burst. It turns out, "valid" price on the real estate, which is not influenced by the investors, who purchase entire houses, but only by demands of future tenants and the proposal of builders - is not too differed from "invalid", black market price. As one of the salesmen of real estate cynically noted, "Moscow still lags on the average price of the apartments behind New York or London". Principally situation will change only, if many new houses appear on the market - but there are no prerequisites for this.

Sunday, May 13, 2007

Courier-Post staff

Do you want to compare the property taxes on your home to similar homes on your street?

Then check out property assessment records at Data Universe, the "Courier-Post" public information site on the Web, newly updated to include local tax information.

More than 3 million property ownership records, from vacant land to homes to major commercial sites, now include detailed tax information on each parcel.

The enhanced property assessment records can be accessed by visiting and clicking on the topmost link: Property Owners/Assessments.

The data is based on 2006 tax rates and assessments from the state.

The state updates its property ownership records once a year and most records are current. For recent transactions, Data Universe provides a database of property sales current through January 2007.

Data Universe also offers nearly two dozen searchable databases that cover criminal conviction records, public employee salaries, public school performance benchmarks and links to medical and consumer information sites.

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When investing in real estate, always try to keep an eye open for motivated sellers. Here are some things to look out for when seeking a motivated seller:

If you are looking at a property and it's listed well below market value, than the seller is either trying to get rid of the property in a hurry or a careless FSBO. If an appraisal comes in at a higher value than what it is selling for, check it out as an investment.

There are a few reasons why a seller would want to sell their property in a hurry. One reason is the unfortunate event of bankruptcy. The seller may be able to avoid bankruptcy by selling their home quickly. Another unfortunate event may be foreclosure. The property owner was unable to pay their monthly mortgage payments and are losing their house. The best option for people going into foreclosure to avoid foreclosure is to sell their home and save their credit. This is a great opportunity for investors to make money and help someone in need out.

Sometime sellers want to sell their home because they are moving far away and don't want to deal with the property sitting on the market for a long period of time.

Divorce is another situation which is good for real estate investors. During the process of splitting assets, they may want to sell the house for less than market value.

Sometime when people retire they want to relocate to another state. By moving they sometime want money to purchase a new residence and want it quickly. Sometimes they just want to get rid of their old house.

Why buy apartment buildings? Well, you should get more cash flow than with rental houses. Of course, big projects do take more time and research and cash, but then they pay you for year after year.

It is easier to start investing in single family homes than apartment buildings. If you have done so, however, you have noticed how difficult it is getting to get positive cash flow from houses. Even if you do squeeze a little out of each, it can take a lot of them to have a decent income.

Like in a Monopoly game, at some point you may want to trade in your little green houses for a big red apartment building. One apartment building may provide as much cash flow as twenty little houses. And once you have management in place it may be a lot less work.

How To Buy An Apartment Building

Rule number one? Buy properties that will have positive cash flow from the start, based on the current income and all of your projected expenses including management. If the current owner doesn't have management, that is his problem. You are an investor, not a manager, and a good income property should pay for management and still produce positive cash flow.

Do your due diligence? Here's a simple definition of the term: "Investigation and verification of the details of a particular investment." You can start this process before you make an offer, but you should also have clauses in the offer that allow you to have inspections done, and reviews of the books and certain documents.

Look at the files, to verify income. There should be rental agreements signed by tenants, and rental histories showing if there are any problem tenants or late payments. Look for rental deposit documents also, to see amounts and where the deposits are kept.

Ask to see service contracts and agreements. Do they transfer, or are you free to seek better deals? These can include property management agreements, landscaping, snow plowing, pool cleaning service, and cooling system maintenance agreements.

Get the last 24 months income and expense statements, and look for anything unusual, like expenses that are too low or income that seems too high. Review the rent roll, and find out if the rents are over or under the market rates for the area. If there are employees, look at the payroll records for any surprises, like accrued vacation time that you'll have to pay.

Do an interior inspection to learn about the place, the tenants, and any problems that you will have to fix in the coming months or years. Look for pests, water and fire damage, as well as obvious "problem tenants." Are there any empty apartments that are listed as occupied? Use professional inspectors as needed for pest inspections and safety inspections. The local Fire Marshall may do a free inspection to verify that the building meets current codes.

For the exterior inspection, you will want to first walk around and take notes. Watch for anything that looks unusual or in need of repair. Then you can get professional inspections, if necessary. You want to verify that the electrical and plumbing systems are up to date and meet current codes. You also want to get an estimate on how many years of use the roofing has left. You'll look at driveways, landscaping, and exterior paint condition.

Call local authorities and check for any permit problems or zoning or encroachment problems. If there have been fire code violations, were they corrected?

Get the help of an accountant to decipher the books. Have a lawyer review your offer and any documents. Ask what other things you should be doing.

Take notes, and list problems, and estimated costs to correct them. You can use these notes during subsequent negotiations. The problems investors run into when buying income properties are usually not unforeseeable. They can be avoided or resolved if you just do your due diligence. Use a checklist so you won't forget anything.

Prices are based on income. When buying apartment buildings, many investors will look at the "cap rate" of a property to determine if it is a good investment at a given price. Not sure how to figure capitalization rates? Just be sure that there is more income coming in than the total money you'll be paying out each year. Then make sure that this cash flow is enough to justify the cash you invest.

The term 'global village' has been around for some time but is now in the 21st century coming to real fruition. It refers to the fact that the world has as such become smaller through super fast communication systems, jets that cross continents effortlessly and increasing interaction between nations.

Where as the USA has for many decades been the economic leader that had to carry most of the world on it's shoulders, the 21st.century has seen an important shift. The sleeping giant, China, has awaken and is sweeping up resources world wide to feed it's immense development need. The Indian continent is also burning with new energy and requires much to keep their country's economic drive satisfied. Many other developing countries are also attaching themselves to this new momentum and old timers like Germany are showing once again their mettle.

A company will in this new world wide hub of economic activities have irons in the fire in many places. Whilst it's head office might be in London, it's factories, shops etc. could be in 10 different countries. Risk is thus spread through this method of diversification and the home country's currency and other internal aspects do not have such a direct effect on company profit any more.

What effect does this have on the property investment market? This movement of people from the head office in one country to a management position in one of the subsidiaries for example, will have the effect that those people will stay for quite some time in the foreign country. Often they bring their families with and will then look out for comfortable dwellings in the vicinity of their working place.

In time their families will get used to the new lifestyle and will start to make friends, visit the local attractions etc. and will later on remember with fondness the time in a foreign country.

In practice, it often happens that the employee from head office will start to think about property investment after a few years in the foreign country, as it will feel more and more like a second home to him/her and their family.

Apart from the fact that they will start to feel at home there, they will also realize that with the home country's currency in their favour, property is much cheaper and that they can afford to buy a superior house to the one that could be bought at home.

Furthermore, because they start to know the foreign country better through traveling during holidays and weekends, they will know about the many places still to be visited in that country. When they thus decide to buy a home it will also be with the vision that should they be called back to the homeland, they can always come back to their house in the second country for holidays.

Because family and friends will also come visiting, a new breed of people fascinated with what that country can offer, is normally in the making and they too, will often buy property on strength of beauty found and the home
country's currency's buying power. Normally the preferred property will be located on the coastline areas where bargains in terms of the international norm is still to be found.

Because of the communication made possible by television, the internet and international contact, strange cultures become less strange in time and normal human contact becomes the measure of interaction. A world culture is growing where people just don't find each other so menacing or weird as before. Interesting friendships are formed and lead increasingly to visits locally and abroad between likeminded individuals.

And thus the international interest in property investment becomes more and more the by-product of economic interaction and more foreigners own property in other countries than ever before.

Homeowners and would-be homeowners are always watching the housing market to try to understand what is going on at any given time. Is now a good time to sell? Is it better to buy in the winter or spring? How is the housing market this year? What is Median Price, and just what does it mean? Can you define "seasonally adjusted?" Newspaper articles and online searches may answer some of these questions, but understanding real estate terminology will make selling your home or searching for a new one much easier to understand.

In order to help you understand some of the real estate jargon, here are a few definitions for you to ponder.

Median price can be defined as the midpoint of all the prices of homes sold in a given area during a specified period of time. The median price is often a major indicator in the strength of the housing market. The midpoint means that half of the homes sold for less than that amount and half sold for more than the amount. Although it is normally a close indicator, the median is not the same as the average sales price. The average is figured by totaling all of the sales prices and dividing the sum by the number of homes sold. The median price can be easily affected by the types and sizes of homes sold as well as price trends. For example, if several larger homes are sold in an area in a short period of time, the median price could be higher than the normal median price. This could mean that the median price could go up even if homes do not appreciate in value.

Seasonally adjusted means that the numbers have been skewed slightly to accommodate the difference in housing markets during the different seasons of the year. As a general rule of thumb, the spring and summer months are busier times in the housing market. People tend to want to move between the school years when there is less disruption in the child's schedule and also warmer weather. To make the numbers look more realistic, the experts usually tweak the numbers during the slower months, coining the term "seasonally adjusted."

The price discount is the difference in the original asking price of the home and actual purchase price. For example, if a home is originally listed at $100,000, but sells for $96,000, the price discount is 4%. You will normally be able to find price discounts reported as an average for a set of home sale transactions. If the percentage is small, that is normally a sign of a sellers market while a larger number indicates the market is right for buyers.

The unsold inventory index is important to watch, especially when selling a home. This index indicates the pace of the market and is calculated by measuring how long it would take for all homes on the market to sell at the current rate of sales. The smaller index indicates a quicker selling time, and is beneficial for sellers. A larger index indicates that homes tend to sit longer on the market and could be beneficial to a buyer.

Being familiar with the basics of real estate terminology will help drastically when you are searching for a new home or contemplating selling your current home.

The market have been called a perfect entity, where buyers and Sellers even things out. Well to a certain extent that is actually true. But, before it "evens things out" it often waves-off the Marks on both sides of the ledger. For case let's state XYZ do some large noise about an approaching deal they are getting. Soon the market is going brainsick purchasing it up and XYZ is flying. Was the intelligence really hot adequate for XYZ to derive 10 points in two days, or was it simply a large impulse moving ridge that got built up and everyone wanted "in" before they missed the boat? We suggest it was the latter.

On the other say you see a stock taken down over $5 a share simply because they stated their grosses wouldn't be "up to par". Are that valid? We don't believe so. Both of these illustrations are "over reactions" and
once the ballyhoo and haste is over, then the market equalizes things out. For example, say the second stock did not demo less sales or revenues, but simply had to present them at a clip where they couldn't be accounted for during this quarter. So, for a "timing" issue a stock loses 5 dollars in a day. That is nuts.

So why make we convey this up? Well naturally we believe that in specific issues a stock might do for a great longer term purchasing opportunity. (Not all smackdowns are buying opportunities, if the stock had really blown it on losing sales or something, that is a different story.) And in the lawsuit of XYZ, there was a short sale made in Heaven, once the initial craze was over. But maybe more than importantly we need to cognize when WE should be in a craze over something.

Suppose a Friday is the twenty-four hours before a holiday weekend and we make very well. Then Monday when everyone is at the beach we still have got a pretty good day. Yet when the merchandising hits on Wed. we get "talking heads" screaming about how the market is unsteady and it may be headed down. They are the same cats screaming we should be purchasing up everything just two years earlier! See the point? Too much top Friday and Monday, followed by too much downside Wednesday.

So, what we need to make is get excited about large up years AND large down years for trading, but not get caught up in the ballyhoo from overreactions. We need to net income from them. That agency not buying XYZ after it have gained 10 points in two years and not thinking the human race is ending when the averages take a hit for the twenty-four hours (of course of study respective hebdomads at a clip is a different story!) Look
at over reaction down years as a possible purchasing opportunity. How make you cognize
if it is just over reaction or a existent terror sell? Let's return a expression at state a spot sector downgrade, say on a Wednesday, by perhaps a firm like Salomon's.

The market needed to take a breathing place after a few good years (not recently), and bargainers got a bit nervous over a few technical school companies warning about earnings. Then come ups Salomon's downgrade. So they sell off the bits hard. An over reaction? Well the downgrade was because they were "too expensive" and evaluation downgrades are generally short lived creatures. So what you need to make when something like that haps is ticker the action over the adjacent couple days. If they are heading back up, the downgrade was a gift and even if you missed the first few dollars of the move up again, you are still getting in cheaper than they would have got been before the downgrade.

The underside line is this: the market waves-off just about everything. If you establish some of your trades on those extremes by shorting the crazes and purchasing the smackdowns, you will happen that very often you have got made a good trade. Just don't get caught up in the craze yourself!

Japanese stocks advanced, set for the
largest gain since March. Companies that will report earnings
this week rose after the Nikkei newspaper said profit at Tokyo
Electron Ltd. will climb to a record.

Banks advanced with Mitsubishi UFJ Financial Group Inc.,
which fell to a 19-month low on April 27, climbing 3.2 percent as
investors judged recent losses excessive. The Topix Banks index
dropped 4 percent last month.

``Japanese stocks are catching up with rallies in other
markets as investor concern over earnings has eased,'' said
Takeshi Yamaguchi, who looks after $674 million at Sumitomo
Mitsui Asset Management Co. in Tokyo. ``All the bad news on bank
profits has already been discounted by previous declines.''

Exporters such as Canon Inc. and Honda Motor Co. also
advanced on speculation that slowing U.S. jobs growth and wage
increases will prompt the Federal Reserve to cut borrowing costs
in Japan's biggest overseas market.

The Nikkei 225 Stock Average rose 301.43, or 1.7 percent, to
17,696.35. The Topix climbed 30.69, or 1.8 percent, to 1734.91 as
of 2:27 p.m. in Tokyo. Both gauges are headed for the largest
gain since March 8.

The Topix fell for a second straight month in April, losing
0.7 percent while the Dow Jones Industrial Average and South
Korea's Kospi index climbed to records last week.

Tokyo Electron, the world's second-biggest supplier of
chipmaking equipment, advanced 150 yen, or 1.8 percent, to 8,480.
Toyota Motor Corp., Japan's largest automaker, added 60 yen, or
0.8 percent, to 7,290. Mitsubishi Estate Co., the nation's No. 2
property developer, climbed 170 yen, or 4.5 percent, to 3,920.

`Across-the-Board Gain'

All three companies are scheduled to report their earnings
this week.

Tokyo Electron's net income will probably rise 9 percent to
about 93 billion yen ($775 million) in the year ending March 2008,
the Nikkei reported, without saying where it got the information.
Sales will gain 5 percent to 880 billion yen, the report said.

``Japan's market had an across-the-board gain today but
money is flowing especially into companies with strong earnings
outlooks,'' said Yoshihiro Ito, who helps look after $689 million
in assets at Okasan Capital Management Co. in Tokyo.

Mitsubishi UFJ, Japan's biggest lender by assets, rose
40,000 yen, or 3.2 percent, to 1.3 million. Mitsubishi UFJ
dropped to the lowest since September 2005 on April 27 on concern
its profit growth will not improve soon. Mizuho Financial Group
Inc., the nation's second largest, added 19,000 yen, or 2.6
percent, to 749,000.

Japan's major banks are set to report their earnings this
month with Mitsubishi UFJ being scheduled on May 23 and Mizuho on
May 22.

Canon Jumps

Canon, the world's largest digital camera maker, surged 270
yen, or 4 percent, to 7,080, gaining the most since Oct. 5. Honda,
which made 55 percent of its sales in North America in the year
ended March 2006, advanced 80 yen, or 2 percent, to 4,120. Sony
Corp., the world's biggest video-game maker, climbed 140 yen, or
2.2 percent, to 6,550.

The Labor Department said on May 4 the 88,000 increase in
employment last month followed a 177,000 gain in March that was
smaller than previously estimated. The U.S. jobless rate rose to
4.5 percent from 4.4 percent, which matched a five-year low.

The report also showed that average hourly earnings grew at
a 3.7 percent pace in April from a year earlier compared with a 4
percent rate in March.

Mitsui Fudosan, Nippon Steel

``Inflation in the U.S. has cooled down and that's behind
the rally in the country's equity markets,'' said Ryoji Musha,
chief investment officer at the Japanese brokerage unit of
Deutsche Bank AG.

Property developers such as Mitsui Fudosan Co. and
steelmakers such as Nippon Steel Corp. jumped on expectations
that they will have strong earnings for this business year.

Mitsui Fudosan, Japan's biggest property developer, surged
240 yen, or 6.8 percent, to 3,750. Nippon Steel Corp., Asia's No.
1 maker of the alloy, advanced 36 yen, or 4.4 percent, to 848.
Sumitomo Corp., the third-biggest trading house in Japan, rose
110 yen, or 5.1 percent, to 2,260.

``Real estate companies were bought on a trend of rising
asset prices and office rents,'' said Okasan Capital's Ito.
``There's also strong expectation that steelmakers and trading
companies will have a profit expansion over the medium term,
helped by demand in emerging markets.''

Property shares also gained after the Nikkei reported on May
5 that Japan's public pension fund, the world's largest pool of
retirement funds, may start investing in privately placed real
estate funds and mortgage-backed securities to limit risk from
stock and bond markets.

TDK, Fujitsu

``Investment in the real estate industry is a global trend
so related stocks in Japan are likely to gain further,'' said
Sumitomo Mitsui's Yamaguchi.

TDK Corp., Japan's biggest maker of magnetic heads, advanced
190 yen, or 1.9 percent, to 10,240 after saying it will spend 50
billion yen ($416 million) to build an electronics component
factory.

The new factory, located in Yurihonjo, northern Japan, will
increase the company's manufacturing capacity of ceramic
capacitors by 40 percent, Nobuyuki Koike, a spokesman for the
Tokyo-based company, said today, confirming a Nikkei newspaper
report on May 6.

Fujitsu Ltd., Japan's biggest computer-services provider,
rose 14 yen, or 1.9 percent, to 755 after the company said it
plans to buy France's GFI Informatique SA for 419 million euros
($570 million) to add clients and trim its reliance on Japan.

Fujitsu said on May 2 it plans to offer 8.50 euros for each
GFI share and 3.15 euros for each warrant of the Paris-based
computer consultant. The companies have no ``formal agreement,''
it said.

Nikkei futures expiring in June climbed 1.6 percent to
17,720 in Osaka and rose 1.5 percent to 17,715 in Singapore.

To contact the reporter for this story:
Makiko Suzuki in Tokyo at

For the last few hebdomads we have got seen the stock market averages going higher and higher each hebdomad yet the economical intelligence is still very bad. Are this bear market coming to an end? Volition the stock terms and common finances travel back up to where they were?

It looks all the talking caputs on television and the talking radiocommunication cats are telling you that now is the clip to purchase because the market will be much higher next year. "You can't afford to not be in the market" is the cry. They have got tons of grounds that sound good, but almost none of them will throw H2O upon stopping point analysis.

The 1 thing that I hear is that the market is now "fairly valued". Now the S&P500 index have a P/E ratio (that's Price/Earnings) of around 32 that agency it will take 32 old age to get back your money based on what the company's stock is earning today. It doesn't take a rocket man of science to recognize there are many other topographic points to get a better return. There are many, many pillory with P/E ratios in the 100s and others that have got no earnings at all. That doesn't intend those pillory won't travel up; it intends they won't remain up once people recognize they have got no value other than anticipation. That is why the Nasdaq have declined 75% sol far and it is still over priced.

The Wall Street aces state that adjacent twelvemonth earnings will be much better so the terms today is cheap compared to what it will be then so you better purchase now. When you travel back in clip you will see that the average P/E for the S&P500 index have been 14 - 15 for many years. Could that average that "this clip it is different" or is the index over priced by 200%?

Forty percent of the advance in stock terms is owed to directional motion of the market as a whole, 40% owed to the strength of the sector that it is in and 20% owed to the quality of the company itself. You see, just because it is a "good" company makes not intend the stock will advance. Birds of a plume flock together so the "good" company must be in a strong sector that is advancing and then the whole market must be advancing also. When you have got got all 3 of these things going you have a good opportunity of making money.

Where are we today? You must step back to take a long position of the market indexes. The terms action of the past few hebdomads cannot be counted as the market tendency as a whole. Most market technical analysts state that the market is in a mass meeting form of a long term bear market and that the mass meeting will hold and caput down somewhere near the 200-day moving average that is currently at about 10,300 on the DOW.

Is the bear back in his cage? Have the bull market returned? It depends upon who you desire to believe but whatever you make you should be protecting your capital with trailing stop-loss orders on your pillory and mental Michigan for your common funds. Even those with IRAs and 401Ks can travel their money into a money market account should the market start down again.

Time will tell.

Last week I discussed the financing of the purchase of a residential lot for development with a woman who, with her husband, wanted to build a custom home. As always happens when discussing financing, the conversation turned to interest rates and loan structures. When I described the going rate for a fully indexed land loan on a residential lot, she darn nearly fainted!

She spluttered: "Wha … How could rates possibly be so high?!? My home loan is at 6% and you are telling me that a lender wants over 10% for a land loan? That is ridiculous!"

Well, not really.

I understood her confusion, but she was comparing apples to oranges. From an investor's standpoint, land is a great investment for a number of reasons: "They" are not making any more of it (except possibly in Dubai), you can put your hands on it (it is "real"), no one can pick it up and take it away without a mounting a stupendous effort, and eventually it will be worth more than you paid for it (in most cases). However, when we look at land from a lender's perspective, it is leaves a lot to be desired.

When making a loan, the lender's primary objective is to get paid all of its interest and principal. The lender relies on the borrower to fulfill his obligations under the note, but asks for some "insurance." That insurance comes in the form of a lien on a real property, called "securing" the loan, and is the lender's last resort in the event the borrower can't pay off his loan. The loan is made to the borrower, not the property. It is secured by the property in the event the borrower defaults on the loan. So a lender looks for the best security that it can find to ensure that it will be paid back.

Commercial real estate makes great security for a lender because it produces income that can make the loan payments until the property is sold, in the event the borrower defaults. Homes are also great security because there is usually an active market in which to sell one and a borrower is likely to do everything he can to keep his primary residence. Even owner-occupied business property is a good bet for a combination of the reasons above.

Not so, land.

Land, for all of its potential value, just sits there. No one lives on it, no one works on it, tumbleweeds roll across it, and unless it is used as a parking lot or a swap meet, it produces no income. Add to these challenges the reality that the process for converting land into income producing or residential property takes a great deal of effort, specialized knowledge, and time. Most lenders really do not like these characteristics in their security and thus, don't lend on land.

As a result, when faced with taking land as security for a note, those lenders who do make loans on land do a couple of things to mitigate their risk. The first is that they usually reduce the loan to value significantly. The more equity you have in the land, the bigger the discount they can offer to a buyer when selling it and the safer they feel in making the loan. Note that this was not the case in my opening example. That particular lender had a specialized program that would have loaned up to 90% of the value of a finished lot, but it was for residential, owner-occupied development.

The second thing a lender does is increase its rate of return to match the perceived risk of disposing of the property in the event of a default. If a lender gets 12% to 14% on its money for a land loan, it receives its invested dollars faster, even though we call them "interest." This reduces the lender's exposure faster and provides a risk-adjusted return when the loan is paid off.

So the next time you contemplate financing some land, just remember that your lender will be looking at it from a vastly different set of circumstances than you. Done that way, you probably won't cough loudly when he quotes you the rate!

Minneapolis -

MINNEAPOLIS -- Collins, whose strong growth has enabled it to become one of the world’s leading reinsurance brokers, has formed a new subsidiary – Collins Capital Advisors LLC – with plans to assist firms in the insurance and reinsurance industry with investment banking advice and capital markets expertise, Collins President and Chief Executive Officer Patrick Denzer announced today.

Gregory G. Clapp, a veteran of insurance practices at Wall Street investment banking firms, has been named managing director and head of Collins Capital Advisors, which will be based in New York City.

“Collins Capital Advisors is being established to offer traditional investment banking services in such areas as private equity, debt, mergers and acquisitions, and other strategic financial advice,” Mr. Denzer said. “It also will focus on developing and delivering capital market solutions, which could include securitizations, cat bonds or other insurance-linked securities.

“We’re proud that Greg Clapp, with his exceptional expertise and track record, has joined Collins to lead this operation,” Mr. Denzer added.

Mr. Clapp has been a senior investment banker serving the insurance industry for the last 14 years. Prior to joining Collins, he was a managing director at Fox-Pitt, Kelton, where he led the insurance investment banking practice and served on the management committee. Prior to that position, he held a similar position at Sandler, O’Neill & Partners. He was also a managing director in the insurance practice at J.P. Morgan Chase.

“I’m pleased and excited to join Collins,” Mr. Clapp said. “The model we are developing to offer knowledgeable, independent financial advice is clearly what the market wants, and what I hope to contribute.

“The extensive insights of Collins’ professionals, combined with our new financial advisory services, will offer a powerful new advantage to companies in the marketplace,” he added.

Mr. Clapp began his career with Chase Manhattan Bank in 1983 and worked in leveraged finance and debt restructuring before joining Chase’s insurance banking practice in 1993. He holds a bachelor’s degree from Williams College and also studied at the London School of Economics.

Collins, established in 1987, serves clients in the property-casualty, life, and accident & health insurance markets. Headquartered in Minneapolis, it has offices across the United States as well as in London and in Bermuda. It has recorded a compound annual growth rate of 23 percent since 1995.

The privately-held company provides reinsurance brokerage services, risk transfer advice and analytical services to insurers, reinsurers, managing general agents and others in the insurance marketplace. Those services include catastrophe modeling, actuarial analysis, dynamic reinsurance modeling and financial consulting. Additional information is available at the company’s website, .

NORCROSS, Ga.--(BUSINESS WIRE)--Wells Real Estate Funds Inc. today announced the launch of the Wells
Timberland Real Estate Investment Trust, the first public, nontraded
REIT investing in timberland.

“This new expansion of our product family fits
with our focus on offering the individual investor the opportunity to
invest in quality real estate,” said Leo
Wells, founder and president of Wells Real Estate Funds. “Professionally
managed timberland is a potentially attractive type of commercial real
estate – but historically, it has been almost
entirely for institutional investors. We’re
helping to change that.”

Wells Timberland REIT will seek to generate revenue and income through
the sale of timber harvesting rights, as well as leasing land-use rights
and, in some cases, the eventual sale of land for higher and better use.

Jess Jarratt, a veteran forester and finance executive, has joined Wells
as chief timberland officer and president of Wells Timberland Investment
Management Organization.

“Timberland is a distinct asset class, and as
with our other REITs, we’ll seek to build a
diverse portfolio for our investors – in this
case, by geography, age and timber type,”
Jarratt said. “Another attractive feature
about timber is that it’s an ecologically
sound, renewable resource – after harvesting,
you can plant again and literally grow new resources.”

Jarratt most recently was managing director, structured real estate, for
SunTrust Robinson Humphrey. His previous positions include timberland
investment officer with John Hancock. He holds a B.S. in Forestry from
Texas A&M and an M.B.A. in Finance from the University of North Texas.

Wells Timberland REIT is designed to offer portfolio diversification,
current income through the payment of distributions, and potential
capital appreciation upon the ultimate sale of assets. Over its
lifetime, the fund will acquire and invest largely in geographically
diverse timberland properties in U.S. timber-producing regions,
including the Appalachian, Great Lakes, Northeast, Northwest and
Southeast regions. The Timberland REIT also may invest in timber-growing
regions internationally.

The fund will be offered to investors through financial professionals.

Wells Real Estate Funds is a national real estate investment company
based in suburban Atlanta. Since its founding in 1984, Wells has
invested more than $9 billion in real estate for more than 200,000
investors. Wells funds include REITs, mutual funds and other commercial
real estate investment vehicles. For more information, see

For more information, visit Wells online at .

This press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, including discussions regarding
Wells’ use of proceeds and certain other
factors that may affect future earnings or financial results. Such
statements involve risks and uncertainties, which could cause actual
results to vary materially from those expressed in or indicated by the
forward-looking statements. Factors that may cause actual results to
differ materially include changes in general economic conditions,
changes in real estate conditions, construction delays, increases in
interest rates, lease-up risks, lack of availability of financing, and
lack of availability of capital proceeds. This is neither an offer nor a
solicitation to purchase securities. For SEC filings: .

What is the best way to maximize your real estate profit and reach your investment goals?
Real estate is a solid investment that offers both short-term and long-term gains. People have been investing in real estate since land and homes were first bought and sold. If you have interest in becoming a real estate investor, there are several things to consider as you move forward. The main point is to determine why you want to purchase the property—Is it for long-term gain? Is it for short term investment? It may be for both. By clearly thinking your strategy through on before you invest, you will likely maximize your efforts as you proceed. Before you purchase a property, you will have to determine if it is best to flip the property - make improvements and sell it fast - or rent it out. Markets do fluctuate, and even people who are not involved in real estate investing know the terms "buyer's market" and "seller's market." Which decision you make depends on what is happening in the market, how much the property costs, and how your choices fit your overall investment strategy.

How to Know When to Flip a Property


Flipping a house can provide huge profits if you do it right. It has become popular and common over the last several years, and there even a number of television shows dedicated to showing people how it is done. Key factors in making the decision to flip include the initial purchase price, the location and condition of the property, and the prices of similar home sin the area. This last point also includes whether the properties have sold and how quickly they sold. Remember, a price is only truly valid when the property has a buyer willing to pay that price!

Generally speaking, if you plan to purchase a more expensive home, the best idea is to turn it around quickly in order to limit your expenses and gain from the current market. Expensive homes come with big mortgage and property tax payments, which usually mean that renting for the cash flow is out of the question. It can also be difficult to find renters for higher priced homes, and if they miss a rent payment for one or several months, your profits will quickly disappear and you may even start to have a significant loss.

If you find a great property that requires mostly cosmetic changes, you should be able to flip it easily for a meaningful profit. A property with major structural problems can be a "money pit," especially if the price was too high to begin with. Before you commit to any major changes in the property, assess not only your own cash resources (this is very important!), but also your work force resources. Do you have relationships with contractors, landscapers, and other skilled labor professionals? Will those people be reliable in terms of time and price? These are critical questions to answer before you begin.
How to Know When to Rent a Property

Renting your investment property can provide you with monthly positive cash flow while you build equity through your payments and the appreciation of the property price. Renting also allows you to take advantage of tax breaks for any improvements you make to the property as a tax deduction. Again, key factors are the price of the home, if the market has growth potential, and the condition of the property.

A lower-priced home translates to a lower monthly payment, property taxes and insurance. Remember, you don't need to make a big monthly profit. In order to succeed over the long run, the idea here is to own more properties and make your profits over time. When you rent a property out, you are building equity using your tenant's money. Add up the costs related to the property, including a small amount for repairs and any utilities you plan to pay for. This is a safer way to invest in real estate and can net you very high profits. There will always be good tenants to rent good properties!

Another way to determine if you should flip or rent is if the market is growing. Does the area have a lot of new construction? Are there new industries moving in? Is the location near an urban area, with plans for an existing public transportation system to the city? Properties located in these "growth" areas almost always net the largest gains over time. This is especially true in areas where there are new people moving in. They often are moving from areas where they have sold their homes for larger process, and are looking to spend that money on new properties, thus driving up existing prices.
In a growth market, you can make money flipping a house, but you may be able to make considerably more money over a long period of time if you rent it out, build equity, and sell it for an even higher price at the optimum time. Even if you buy yourself a vacation home, you can make money down the road if you hold on to it, and you can rent it out as a vacation home or to tourists when you do not plan to live there.

It's Not Just About the Bottom Line


When deciding whether to flip or rent out a property, assess the market, do the math, and then consider your own interests and abilities. The perfect flip is not so perfect for those who have no construction or renovation experience, and being a landlord may not be a role you wish to take on. In the end, it's about what's best for your pocketbook, what's best for your investment strategy and what's best for you.