Investing Trends

Like most existent estate the Seller usually desires too much and the buyer desires to pay too small for a mobile place park. Certain purchasers may have got different motives for purchasing a certain parkland (1031 money, ability to obtain better financing, transitions to other uses, and location to where they live). In this book we will only look only at the value of a mobile place parkland for the typical purchaser who will go on to run it as a mobile place park.

Anyone that have got seen an assessment on a house or most types of existent estate will have heard reference of the 3 attacks to determining the value of that existent estate. They are the Cost, Sales, and Income Approach.

Unless you are coming up with the value of a trade name new mobile place parkland or one that is predominately vacant, I make not see any ground to utilize the cost approach. It is not likely that a new mobile place parkland will be built nearby and what it would be to construct a new parkland makes not even take into business relationship the amount of time, effort, and money it takes to fill up that parkland up with occupied and paying residents.

As far as the Gross Sales or Market Comparison attack to value, this is also highly suspect. This is based on comparing the sale of the topic place with other recent gross sales and adjusting for differences that you may or may not cognize about. Problems with this attack include varying expenses, rents, and management. Whether you are an investor or valuator I would just utilize this attack as possible information and not pull any decisions from it. Here is a speedy illustration of the improper usage of this attack from my experience:

Examples

Property A: 50 lots, 100% occupied, Batch Rent of $179.00. Tons will throw a upper limit place size of a 14' ten 60' – Water and Sewer is submetered back to occupants - NOI of about $75,000.

Property Type B (10 statute miles from Place A): 53 lots, 10 vacancies, Batch Rent of $150.00. Tons will throw 16' ten 80's and doublewides. Park pays H2O and sewerage - NOI of $45,000.

Property Type B is sold in December of 2004 for $425,000.

The proprietor of Place A(one of my LLC's) travels to the depository financial institution to refinance the place in January of 2005. The valuator appraises it at $400,000 and topographic points the most accent on the Gross Sales Comparison Approach as Place Type B just sold and it was a superior place in footing of size, appearance, and location. In fact in the assessment report, he claims that we were charging too much and that our Numbers were inflated.

After arguing with the depository financial institution and valuator for a couple of weeks, we were refunded our money for the appraisal. In the meantime, we were approached by another investor who made us an offering of $645,000 for the parkland and we accepted and the sale closed by the end of March 2005. Iodine really wanted to direct the valuator a transcript of the shutting statement with a nice missive but decided against it.

The point is that even though one parkland may look nice, be in a better location, and have got so much more than than than departure for it on the surface, makes not intend it is deserving more per space or even deserving as much per space as an inferior looking park.

As a side note, once I establish out that place Type B was sold for $425,000 I was in contact with the new proprietor and tried to purchase the parkland from him - I offered him $50,000 more than he had just paid and he didn't desire any portion of it. He knew he had just made a enormous bargain and was already raising the rents and starting to acquire his tons filled up.

The 3rd attack to value is the Income attack and I happen that this is really the best and only manner to measure a mobile place parkland correctly. I have got come up up with a basic expression in which I value the parkland based on what it is currently doing, what it should be doing, and what it will make once I implement some basic alterations and tally it more than efficiently.

Here is my criterion procedure in estimating the value:

I desire to cognize how many tons there are, how many are occupied and paying, what the batch rent is, what disbursals the proprietor is paying, and who is responsible for the H2O lines, sewerage lines, and roads. (Example Provided Below)

A good regulation of pollex that I utilize to begin with is that I take the figure of occupied spaces and multiply this by the norm monthly space rent and multiply this by 70.

For illustration if the parkland have 110 spaces with 10 vacancies, a monthly norm space rent of $200. Then my initial value computation is 100 x $200 x 70 = $1,400,000.

If the parkland is on the marketplace for $3 million Iodine will probably pass. If the parkland is on the marketplace for $1,800,000 or less than I will probably look into it further. Remember this simple computation is very generic and may or may not be the true indicant of the value of a mobile place park.

In looking at the parkland in more than detail, I will inquire for existent operating income as well as existent operating expenses.

The operating disbursal ratio can change significantly from one parkland to another in the same metropolis even if placed next to one another. One of the biggest disbursals in a parkland is the H2O and sewerage expense. If the occupants of the parkland are paying this disbursal then you can anticipate the operating disbursal ratio to be as much as 15% less than the average.

I owned a parkland in Northeastern Lone-Star State a few old age ago that had the last disbursal ratio that I have got ever dealt with(I repent ever selling it). Although this parkland had big tons 60' ten 120' and up, it was filled with old places (trailers). We even had some old RV's and campers renting lots. Usually when you meet a parkland such as as this with old tally down places and dawdlers they are usually stacked on top of each other with about 20 per acre. This was not the case. Each place was on a big batch and every clip I drove through the parkland it seemed that the places had aged respective more than years. Anyway, the parkland had 94 spaces and each space was separately metered for all public utilities by the metropolis and public utility companies. The streets were owned by the city, the metropolis was responsible for the H2O and sewerage lines up to each home. The metropolis paid for the street lights. We had basically 5 expenses:

Taxes: $1100 per twelvemonth (the assessed value of this parkland was under $60,000!)

Insurance: $2,000 per year

Management: $700 per calendar month plus free batch rent – about $10,000 per twelvemonth

Telephone: $0 – the director used his telephone number

Repairs: $2000 per twelvemonth on norm (the lone fix we had was each clip a place moved out and a new place moved in we had to update the electrical base – about 3 per year)

Office & Travel: $600 per year

In the 3 old age I owned the park, the disbursals never totaled more than than $16,000.

The gross collected income over these 3 old age averaged just over $135,000. So this parkland had an disbursal ratio of under 12%.

This is truly an exclusion to the regulation and the director I had at this parkland was amazing and we had aggregations in extra of 97%. It is rare that you are able to happen a parkland with such as a low disbursal ratio but it is possible. The usual lawsuit is that you happen a parkland that is listed for sale and the projections or proformas have got got disbursals that are ridiculously low and may not have disbursals listed for repairs, working capital improvements, management, coverage and so on.

The value a mobile place parkland may be $2 million for one individual and $1.5 million to person else. The cardinal is really deciding what you are willing to pay based on your outlooks of what type of tax return you desire on your investment. This taxation return on investing will come up in respective different forms:
• Monthly/Yearly Cash Flow

• Tax Savings

• Equity Buildup

• Appreciation

• Rent Increases and Expense Reductions

In analyzing the fiscal statements and tax returns, they are often different. The fiscal statements usually have got got got more than than income and less disbursals and the taxation taxation tax returns usually have less income and more expenses.(however, I have seen in some lawsuits that the tax returns are also overstated in order to demo a better network income when it come ups clip to sell or refinance a park. If by paying taxations on an further 20k in taxations for a couple of old age additions the value of the parkland by 200k then a existent sophisticated and dishonest marketer may be trying to draw a fast one. So be careful.

The cardinal then is to accommodate the taxation tax return with the net income and loss statement and then interject world into the whole process.

Figuring out the existent income is usually not too difficult. You can take the existent figure of spaces in the parkland and multiply this by the existent rents being charged and deduct out a sensible allowance for aggregations and you should be able to come up up with a good estimation of the income. I usually utilize 3% arsenic the aggregations expense.

The adjacent thing to make is to come up up with the awaited disbursals based not only on how the parkland is currently operating but also based on how the parkland will run with you as the new owner. For example, if the current proprietor is managing the park, then you necessitate to stop up in an amount for direction and paysheet taxations and workers comp. If the parkland have vacancies and there is no advertisement expense, then you necessitate to stop up in an amount for advertising. And so on.

Common disbursals for Mobile River Home Parks. Not every parkland have got all of these disbursals and some have further disbursals but this is a good starting point.

Advertising

Depository Financial Institution Service Charges

Depreciation

Insurance: Liability

Insurance: Property

Insurance: Workers Comp

Interest: Mortgage

Legal and Accounting

Licenses and Permits

Care Labor

Management Offsite

Management Onsite

Mowing & Landscaping

Postage

Rent Discounts & Incentives

Repairs: Equipment

Repairs: Property

Modesty for Capital Improvements

Supplies: Maintenance

Supplies: Office

Taxes: Payroll

Taxes: Property

Telephone

Travel

Utilities: Electric

Utilities: Gas

Utilities: Trash

Utilities: Water & Sewer

In most lawsuits when you reexamine a gross sales bundle for a mobile place parkland for sale it will not advert any modesty for working capital expenditures. This really should be addressed in your rating of the parkland and in the owed diligence phase. Items like replacing all the H2O lines or sewerage lines for aged parks, resurfacing the roads, topping all the trees, are big disbursals that tin happen in the hereafter and they should be budgeted for. While they are not expensed for income taxation intents they are capitalized and depreciated over 15 old age or so, and are therefore existent costs. I would include at least 2-3% of gross income as a Modesty for Capital Improvements in your Numbers when determining the value.

You will happen some Sellers that disbursal everything and then happen the antonym where proprietors capitalise as much as possible to do the underside line expression better. Spend some clip going through all the disbursals and estimating hereafter working working capital improvements.

After coming up with the income that the parkland is currently generating and deducting from that all the awaited operating disbursals including the modesty for capital outgoes you will have got what is called the Net Operating Income.

If you take the Net Operating Income and watershed this by the terms you come up up with the Capitalization Rate (Cap Rate). Also, if you split the Net Operating Income by the Cap Rate you come up up with the terms and so on.

Now this is where subjectiveness come ups into play. I retrieve not too many old age ago you could purchase 50 -100 unit of measurement mobile place Parks valued in the 12 – 14% cap charge per unit range. It is difficult to happen these trades anymore. Add into that the fact that the involvement rates were so low for the last few old age and the 12-14 caps are now 7-10 caps. The demand for good quality mobile place Parks is and have been much greater than the supply. There are even stabilized Parks that I have got seen purchased for 5 & 6 percentage caps. These were not just for renovation intents either.

What is a good cap rate? The reply is really up to the buyer. Some purchasers state me they desire at least a 7 cap, some state 10 cap, some say 15 cap(I say good fortune to these people).

So in reality, a certain mobile place parkland will have got a different value to each and every person. The thought is to do up one's mind what you desire or will necessitate in footing of your investing and then work to make the trade tantrum these requirements.

If you desire a 10 cap on a place priced at a 7 cap, it makes not necessarily intend you should go through on the deal. For instance, what if the parkland have rents that are $50 under marketplace and through your reviews and owed diligence you cognize you could raise the rent to marketplace rates in 2 months. What if this would do it a 10 Cap? Another possibility would be to set it under contract and then in your owed diligence you state the marketer that you desire to travel forward with the purchase but in order to do so and to fulfill your loaners requirements, obtain an adequate appraisal, and/or make the needed tax return on your investment, you necessitate to have got him direct a rent addition notice out right away so the rates are where you desire them at closing.

In another example, say the parkland have an NOI of $80,000 and is priced at 1 million. Also, say that the parkland is currently paying for H2O and sewerage and this disbursal is running approximately $30,000 per year. You cognize that you could put in H2O metres and go through this disbursal on to the residents. You desire a 10 cap on your purchase. You could very well buy this parkland and recognize the tax return you desire very quickly in states of affairs such as as this. If the rents are under marketplace or there are disbursals that tin be reduced or other ways to increase the nett income with minimum work and hard cash spending you might pay other for a parkland if it otherwise rans into your investing criteria.

As my general regulation when dealing with Parks that are boundary line but have got the possible to increase in value and offering an acceptable tax return on investing by raising rents or reducing expense: I generally will add up to 50% of the value from these speedy holes to my offering on a park. So if I can increase the rates to marketplace and cut down disbursals and this additions the value of the parkland by $100,000, then I would see adding $50,000 to my offering terms if necessary. After all, we should gain something from our expertness and doing what the proprietor could have got done already.

Other considerations on the value of the parkland will be the entrances, streets, landscaping, utilities, parking, lights, storage sheds, figure of singles versus doubles, swimming pools, clubhouses, etc. The nicer the parkland typically the less the cap charge per unit and the easier it will to tap into better funding programs.

Other Value Considerations:

Vacant Lots:

When buying a mobile put parkland that have vacant tons which are ready to be occupied, what value, if any should you place on these lots? We just came up with the value we are willing to pay based on the NOI and the cap charge per unit we are looking for. So, unless these homesites will fill up up with minimum attempt and investment, I would not put much of a value on them at all. In fact, having empty homesites that are difficult to lease out volition end up costing you money in footing of monthly care and time. I would definitely point this out to the marketer as a negotiating point. Many Sellers like to state there is upside on all the vacant spaces. However, if this top was easy to obtain, then the marketer would have got most likely realized it before selling.

In some cases, you will be able to fill up up the homesites with minimum investing and attempt so you may put a value of 25-50% depending on your comfortableness level. I would definitely thin toward the 25%.

Park Owned Homes & Notes:

When buying a mobile place parkland where there are parkland owned rentals, rent-to-own homes, and mobile place short letters it is of import to interrupt out the income and disbursals from this part of the concern from the lot/space lease portion.

Many modern times the income and disbursals from the full trading operations are lumped together and the marketer or agent states the place is priced at say a 10 cap.

Here is the job with this attack of lumping it all together:

Suppose you have got 10 mobile places that are renting for $350 above the normal batch rent per calendar calendar month and that there is an further disbursal of $100 per mobile place each month. You basically have got a nett of $250 per calendar month for each place or $3,000 per year. If you are capping this income at a 10 cap, you are placing a value of $30,000 per mobile home. Now there may be some nice doublewides that are being rented in some Parks that are deserving $30,000 but it is not the norm. Most of the time, these places are aged singlewide places that may have got a value from $3,000 to $10,000. So if you are valuing them at $30,000 you are paying too much!

Another state of affairs happens when you have got mobile place short letters or rent–to–own homes. Lets state you have got a short letter payment of $200 per calendar month in improver to the batch rent and that the balance left is $8,000 on the note. The monthly payments of $200 per calendar month will add up to $2,400 per twelvemonth and if you crest that at 10% then you are paying $24,000 for an $8,000 note. Not a great investing move!

So what make you pay for these types of further income sources?

Mobile Homes Rented Out: Many people will state that you should pay what the place is deserving on the marketplace if sold for hard hard cash or for cash with outside financing. My expression is that I will pay about 75% of what I experience I can sell the place to the current tenant for on a rent-to-own agreement with a term of 3-5 old age and also increase the batch rent in the process..

Here is an example:

A place is being rented for $425 per calendar calendar month and the batch rent is $200 per month. I will near the current tenant and state them if they go on paying rent for 3 more than years, then I will delegate the statute title over to them and the place will be theirs. In the rent-to-own agreement, I stipulate that the batch rent is $225 per month(not $200) and after 36 monthly payments of $200 asset batch rent, the place statute title will be transferred to them.

In this case, I would not only be receiving 36 x $200 or $7,200 for the home, but I have got also increased the batch rent for that place in the process. When I acquire ready to raise rents for other occupants in the park, I can always state that there are other people already paying the higher rates. So, in this lawsuit I would pay somewhere in the $5,000 to $6,000 scope for this home. ($7,200 x 75% = $5,400)

Mobile Home Notes and Rent-to-Own Agreements: When I am purchasing short letters and understandings that have got already been created by the current seller, I will typically utilize the less of the value of:

• 75% of the value of what I can resell the place to a new tenant in lawsuit of default as deliberate above; or

• 65% of the hereafter short letter or rent-to-own payments.

Amateurs and novices often confront such as morass in taking investing determinations in their formative years. However, deficiency of any way intends that it is baptism by fire for most of them. However, if you are diligent, such as states of affairs can be avoided and wise investing determinations are possible even if you are an recreational in your trade. Here are some utile investing tips for beginners.

The first measure is the basic instruction regarding the concern you are planning to put in. You can see your local library or reject the beginnings from the Internet and larn as much as you can, regarding the business. Of course, there are some things that you can larn only through experience but still, literature will give you ample indicant about the sort of jobs likely to be encountered by the novices in the business.

Finance is a major issue for amateurs. The of import determinations include how much to invest, what is the best beginning of finance, what are the long term and short-term repercussions from borrowings, etc. These inquiries are best answered by experts on the subject. You can either attack a putative investing company or seek professional advice by authorship to the experts, who give free advice in leading newspapers, concern mags and trade journals. Alternatively, you can also purchase books or scan online resources for a solution to your situation. However, it may be clip consuming and if you don't have got much clip to spare, then professional aid is a better option.

A combination of self-education and professional advice travels a long manner in making an informed decision. This is because as an amateur, you can larn so much by reading and attending conferences and seminars, but interacting with professional investing advisers will give you important penetrations that you can easily use in the business. Moreover, by educating yourself, you will be in a better topographic point to make up one's mind the best investing adviser for your concern because your cognition will state you if the adviser is just trying to batch money or a echt consultant.

The place of setting up the registered concern office of the concern is another critical facet to chew over over while starting a new business. It may be possible that doing concern in certain regions, cities, or states might salvage you ample taxation liability. Governments, these days, are aggressively granting tax-holiday position to the lesser developed states and regions. Considering all the professionals and cons and long term and short-term implications, you can easily make up one's mind as to which topographic point gives you maximal overall benefits and better tax returns on investment. It won't be a bad thought to seek for a feasibleness study from your adviser about the projected business.

Finally, if you have got concern sense, you'll believe concern most of the clip and when you believe business, more than often than not, you take into concern relationship all the facets involved in the business, and take an informed decision.

On November 17 Iodine bought 7 different common finances and went to a 100% invested position. One of the finances I bought was Oscar Robertson Wallace Stevens Information Age (RSIFX) and it have got made money as have the other six.

My readers cognize I don't urge purchasing person issues. Instead I allow the best heads on Wall Street choice pillory for me. Yes, they have got nice 6-figure incomes, but I can afford them because they make it for free. These market aces are the managers of the best acting common funds. By best acting I intend they have got increased share value more than 99% of all other common finances and there are 8,500 funds.

When I state "free" it intends I don't pay any committee for their service. All Iodine ever purchase are the no-load (no commission) funds. Never pay committee for any common monetary fund because there is no correlativity screening that paying committee conveys better results.

Back to RSIFX. On February 7, I noticed that RSIFX started to fall out of the top public presentation funds. The beginning of each calendar month I reexamine my finances to see if there is any need for a change; it takes me about 10 minutes.

Immediately I called my price reduction broker and placed an order to sell all shares of RSIFX and to set those finances into PBHG Select Equity (PBHEX) monetary fund that was performing better. Good old RSIFX made me 34% which wasn't too bad for about 2 1/2 months, but it wasn't keeping up with the pack.

What happened? From February 7 to February 25 RSIFX went up 2%, but PBHEX went up 10%. That's 8 full percentage points over just 2 1/2 hebdomads which is a batch of money for a short clip period of time.

There is another plus when you utilize a price reduction broker. I paid zero, nada, nothing, not one penny committee for either the sale or purchase of either fund.

If you desire to retire rich, well-to-do or comfy you must watch your finances on a regular footing and do changes so you are always in the best acting finances at all times.

In 1960 an engineer workings for a ticker company in Swiss Confederation discovered that a small crystal would vibrate at a changeless rate. He establish this was so accurate that it could be used to calibrate clip so he took it to company management and said it would do an entirely new sort of ticker that had no jumps and no gears. They could not conceive of who would desire such as a thing. Swiss People tickers dominated human race commerce. They did not even trouble oneself to patent of invention it.

The discoverer took his new thought to a commercial trade show, put up his booth and tried to interest makers to bring forth his new sort of watch. Of the thousand people only 2 were willing to seek it – Texas Instruments and Seiko Corp. of Japan. Ten old age later the Swiss industry of tickers had shrunk to 10% of it former production.

It took a complete change of thought to bring forth this new theoretical account because most people are rooted in the old manner and are loath to change. The new model, the new paradigm is refused.

Now I desire you to believe about another paradigm. This clip a theoretical account for your investing portfolio.

Wall Street have been instruction since clip began to Buy and Hold. When your stock or common monetary fund caputs south you are not to worry about it because “the market always come ups back”. But my inquiry is, “In your lifetime?” There are thousands of pillory that spell up then travel down and never recover. You might have got some of those in your bank vault.

Here is the change in thought you need to incorporate. Instead of blindly holding and agony through a major decline, topographic point a stop-loss order about 10% Oregon 15% below the price. This is especially true when you first buy. The most of import thing every professional investor makes is protect his capital. You never need concern about how much you will make. Your major concern should be how much volition I lose if this bends into a mangy dog. After you have got owned this gem and it makes travel up you can replace the stop-loss order at a higher degree and go on to make that (monthly) until you are finally stopped out (sold out) when this puppy starts down.

Your broker will not desire to make this for one very simple reason. He then goes responsible to see that the order is executed because if it isn’t helium will have got to do up the difference out of his pocket. He will actually have got to watch your account for a change. If he gives you a hard clip happen another broker.

Customers are not taught this simple method of thought about the stock market because it makes further paperwork for the brokerage company. You must change your thinking. This is a better manner than how the large brokerage houses state you. This paradigm will allow you to do more than money because when you are sold out and have got cash in your account you will be able to happen a better stock or common fund.

Strangely there is a similarity to the Wall Street thought and that of the Swiss watchmaker. If the ticker maker had opened his head he could have got expanded his business and held on to the human race laterality of timekeeper manufacture. If the major brokerage houses taught their brokers and clients to do money (which they don’t) they would increase their income and have got many satisfied investors. Instead of holding on to a losing place the client would be sold out (another commission) and have got cash to purchase into a different stock or common monetary fund (another commission). It would ensue very quickly in doubling the amount of trading and protect their clients from significant losses.

Brokers almost never state their people to sell. Of the more than than 8000 listed pillory there are currently only 87 sell recommendations. It is customary after a stock loses 50% of its value to be downgraded to “hold”. And you cognize where you are holding it while you watch it travel lower and lower.

You are obviously smarter than your broker. No 1 will take better care of your money than you do. Isn’t it clip to follow this old, but fresh paradigm?

One of the great "secrets" of successful people is subject and it doesn't do any difference whether it is manufacturing, processing, service or investment in the stock market.

Before you can have got got that subject you must have a successful program and lodge with it. If the method you utilize makes not work or consequences in smaller net income it should be abandoned and a better 1 found. For the average investor the programs laid out by Wall Street make not work and over the long tally you will lose money. Actually you will do a very small percentage, but the tax return will be mitigated owed to in progress inflation. The great bulk of investors believe that an annual tax tax return of 10% Oregon more than is to be expected when actually it is much less and there will be time periods when there will be almost no return at all.

Returns can be increased greatly if the investor will learn not to follow the 3 great prevarications of Maul Street. They are Buy and Hold, Dollar Cost Average and Make Research. These prevarications have got got been told so often that they have go conventional wisdom.

During 1998 and 1999 the terms grasp was fantastic. If you check back in history you will happen this was an aberration. Folks still believe that was "normal". The existent norm is about 16 to 18 twelvemonth clip periods of bull markets followed by bear markets with many 4 twelvemonth rhythms of ups and down feathers with that 16-year time frame.

Think back to 2000, 2001 and 2003. During that clip did your broker ever name to state you to sell? About 98% of brokerage company recommendations were to Buy. Many folks lost 50% to 80% of their savings. That alone should have got turned on the visible light bulb in your caput that either these cats are stupid or they are lying to you.

There is a "secret" to investment and it is one word - Sell. You must have got to subject to take yourself from losing positions. During the worst portion of that 3 old age we saw many pillory driblet 50 to 90% and other companies travel out of business. It you have got got placed a bounds to the amount of loss you would take you would have a batch more money today. Why make you desire to wait for your pillory to drop 30, 40, 50% Oregon more than when you could have got placed an Open Stop Loss Order with your broker to sell you out if your stock dropped below a certain price? Maybe 10%, hopefully not 20%, but even that is better than a huge loss.

In many cases brokers seek to speak you out of selling, but your subject will necessitate you to be firm. You must protect your money; take a firm stand on protection of your investments.

It takes a sum mental committedness to the task. It goes a complete manner of life. You cannot be a portion timer. You cannot work at a regular occupation and trade pillory successfully.

When you do up one's mind to make your life this manner you must be willing to work
365 years a year, 7 years each week, 24 hours every twenty-four hours with no clip off. I
know.

How make I know? As an exchange member for 17 old age and a flooring trader
I can personally state you there is no clip off. Never. Almost every waking
minute is given to thought about your current positions. Where should I
sell? Should Iodine move my halt up a small more? There are 3 more than trades I'd
wish to make, but I need to salvage some extra cash in lawsuit I need it for a
border call. It is hard to go through up a trade that expressions as good as XYZ, but I
have got to keep my trading discipline. And so much more.

These are just a few of the ideas that tally through your head. You
are constantly being torn by the natural enemies of fearfulness and greed, yet you
must throw your chemical equilibrium to seek to do dispassionate decisions. The first
law of trading is to protect your capital so that any single trade will not have
you going home broke.

If you are working a regular occupation or you have a business you cannot be
a trader. One or the other or both of these chases will suffer. When I
owned my brokerage company I did not do one single trade for 8 years
because I understood the committedness necessary to be a successful trader.

Why am I telling you all this? Because I don't desire you to lose your
money in the market as so many people make and I especially don't desire you to
believe you can be a twenty-four hours trader. You can still do money in the market and
beat out 90% of the Wall Street experts. Here's how.

First you must learn that you can clip the market even though your
broker and all those "experts" will state you that you can't. There are
respective good timing advisory services that you may subscribe to or you can
develop you have method.

Second, don't believe all that horsewash about research. That is
Wall Street fume and mirrors. Don't seek to pick individual stocks. Stick to
no-load common finances with a price reduction broker and purchase only the best performing
finances during the past 6 and 12 months. When they discontinue being in the top 1%
sell them and happen new 1s that are going up.

There isn't adequate space here to give you the details, but I desire you to
recognize that you can safely do plentifulness of money in the market without
devoting 365/7/24.

Are you one of those many people who apprehension reading their 401K statements? You have got been watching it worsen for about 2 old age and are wondering if volition ever stop. Just about everyone states the market will come up back. Brokers state you are in for the long draw so don't worry. Any account that driblets to a 50% loss have to travel up 100% to get "even" and that is a very hard phenomenon. If you have got an 80% loss as have already occurred in the Nasdaq you would need a 400% mass meeting to get "even". At 90% you have got to see a 900% rise to that mythical "even".

Buy and Hold have been preached so long and so loudly that everyone believes it. As Adolph Adolf Hitler said when you state a prevarication state a large one. Wall Street have been screaming this 1 down the pharynxes of investors for so long it have go conventional wisdom. Look at your 401K today and compare it to 2 old age ago and state me you believe in Buy and Hold. Park sense will not allow it.

Every broker have been taught that market timing doesn't work. Yes, they learn them that and they have got been good students. The problem is they have got had a bad teacher. Within the finances you now ain the monetary fund managers purchase and sell many modern times during the twelvemonth because there is a clip to sell. Selling is the cardinal to successful stock market investing.

A friend mine came to me with his wife's 401K from United Airlines. It is composed of 8 Fidelity common funds. The employee can pick any 1 or more. Since the first of the twelvemonth six of the eight are down from 3% to 27% (average 10.77%) and the other two were up an average of 3%. The two that are up are fixed income finances otherwise known as chemical bond funds. If you have got a 401K, individual retirement account or September or almost any common finances the lone topographic point to continue your capital during this secular bear market is in a chemical enslaved monetary monetary fund - a no-load bond fund. Bash NOT wage committee for these. And there are many of them.

For old age Wall Street have condemned those of us who utilize market timing. Well, you can name me what you want, but I will have got my money when the Buy and Holders are broke.

Stock common finances make not work in a long-term bear market. Mutual funds, as we have got known them for the past 20 years, are dead. You now have got only two picks within your retirement account for your money - a chemical bond monetary fund or a apparent money market account. Don't shout that you will only do 5% on your money. Think about the 20% to 40% you will not lose. According to Lipper 99% of U.S. equity finances lost money in the second quarter. I have got been telling investors for old age - cash is a position.

Enronitis broke thousands of people because they would not (could not) sell as the stock broke down. Don't allow 401K-itis interruption you.

Being wrong is OK, but let's not carry it to extremes. That applies to everything, but let's limit our discussion here to the stock market.

I have been trading for several decades and was an exchange memebr and floor trader for 17 years. You learn fast there or you go broke in a hurry. As you can see I managed to hold my own for a few years until I found the secret and started to become a successful trader. Every professional trader I know knows the one great secret and that is to keep your losses small.

We all learned that when we took a position - either long or short - that we better be able to jump out if the trade was not going our way. Many of my friends were scalpers. That means they were trading for just a few ticks and every night went home flat. Flat is no positions at all.

Others, myself included, took a longer look and planned to hold a position for a period of time. That could be several days or weeks. If you were right the longer you held on the more money you would make.

The general public seems think that exchange members know everything and always made money. Tain't so. Many traders were wrong more than 50% of the time. Huh? Yes, fifty percent. My account had losses 40% of the time and 20% were scratch trades (neither winners nor losers).

You ask, "If you are out of the money 60% of your trades how can you make money?" This is what every professional knows: Keep your losses small and let your profits run. How many times have you heard that one? BUT how many times have you ignored that rule?

At the end of the year when you analyze your trades you find that you made $3.00 for each $1.00 you lost you will show a nice big profit.

I don't care what business you are in you don't put your whole wad on a single outcome and stick with it until it either works or go broke. That is what brokers and mutual fund managers want you to do. They want you to buy, but never sell.

It is a tragedy for the small investor today that mutual fund families are putting in selling restrictions to discourage investors from dumping funds that are headed down. Many require long holding periods and if you sell prior to that time they charge an extra fee of 2%. They give lame excuses that I know are not true for doing this. Never buy any fund or trade with any brokerage company that has that kind of rule.

It is cheaper to pay the 2% or whatever fee there is and get out than hang around and lose 20% to 40% of your equity. Look back at 2000 to 2003. This can happen again despite what your broker tells you.

Be wrong and run home with most of your money. You still have enough to invest in a better opportunity. If you are disciplined to get out of any bad situation early you will end up a rich person.

Every day I hear someone on CNBC proclaim that "this is the bottom" and you should get in there and buy all those "bargains". "The valuations of the DOW stocks are a steal."

The low of DOW 8,000 immediately after September 11 was "the low" and the market did rally to about 10,700. That's 2,700 points. A smart trader could have made a fortune in six months. Oops! Then there was a Brody to DOW 7500. That's more than 3,000 points. That, for sure, is "the bottom". I heard them say so on TV and radio. It can't go any lower. Can it?

There has been a 1,500 point rally, but there now seems to be another one of those 'Oops' taking place. What is going on anyway?

The great majority of the media are too young to remember the last bear market of 1973-74 when the S&P lost 43% and the Value Line index was down 75%. In the last 2 years this bear has seen the S&P500 index lose 50% and there does not seem to be any so-called bottom in sight. Yet investors are encouraged to buy "for the long haul". Even the staunchest Buy and Holders are finding out that they need to have loss limit orders in - a long time ago. There is such a thing as market timing.

What has been happening is the market is making a correction of the excesses of the 18-year bull market from 1982 to 2000. If it took 18 years to reach the top then how long will it take to get to the bottom? I wish I knew. The predictions run from today to 15 years hence. Japan's bear just celebrated (?) it's 19-year low. From 1920 to 1980 there were 3 bull markets that lasted about 16 years and each was followed by bear markets that hung on for about an equal length of time.

As a technical analyst I have not seen anything that makes me believe we are near "the bottom".

And when that happens will the market take off on another bull run? Not very likely as the little guy will be broke and so shook up from his losses he will vow to "never play the market again". That very thing has taken place at the bottom of every major bear market. In 1932 it was more than a generation before investor confidence returned. Am I implying this could be another 1929-32? Anything is possible with the stock market. No broker will ever tell you that cash is a position. Cash at zero percent interest is better than losing 20% each year.

They might be having a big garage sale on Wall Street today, but I prefer to keep my money in my pocket - or maybe under the mattress.

NEW DELHI: Industry organic structure FICCI
on Monday said the foreign direct investing norms for the existent estate sector
should be liberalised additional to ease more than influx of abroad finances into
the country. List the challenges faced by the real property industry,
FICCI Real Number Estate Committee President Sushil Ansal stressed the demand for
expanding the range of undertakings and convey them under FDI conformity so that more
funds come up into the country. "All undertakings are not FDI-compliant. Let
us increase the range of FDI projects," he said, suggesting a single-window
clearance for FDI-compliant undertakings to cut down the completion
time. At present, 100 per cent FDI is allowed in the sector but with
riders such as as covering a country of minimal 10 hectares for residential projects
and mark for completion of projects. Elevation concerns over FDI not
being allowed at pre-IPO stage, Ansal demanded that the same should be permitted
as it would increase the inflow. FICCI is organising a two-day
international existent estate acme in Mumbai starting September 27, which would
discus, among other things, some of the to the point issues relating to the
industry, such as as the demand of immense finances for property
development. "The focusing of the acme is to do Republic Of India a global
destination for existent estate developer," Ansal told newsmen here today. Ansal,
who is also a president of Ansal API, said finances in big amounts are required to
meet the lodging deficit and to develop office, retail, SEZ projects. "RBI have set limitations on the percentge of disposable finances with
banks which can be diverted into existent estate business," he said, adding that the
solution lies in foreign working capital influxes and therefore FDI hurdling would be
discussed in the extroverted seminar. Ansal favoured FDI in retail to
be opened up for multi trade names as well. "FDI in retail is a must and it should
come in the state as soon as possible," he added. He said the controversy
relating to the involvement of the tradesmen getting affected owed to organised
retailing would be discussed in the summit. "Wherever organised
retailing is flourishing, little tradesmen have got also flourished by becoming a
part of supply chain," he noted. Pointing out that a alteration of political guard
in the states sometimes takes to change in thinking, Ansal demanded that state
governments should go on with the basic policy relating to the real
estate. Computerisation of land record, appropriate occupancy laws that
is not atilt toward either landlord or renter and maestro program for every city
were the demand of the hour, he said. Speaking on the juncture on
supply and demand constraints, Knight Frank President Pranay Vakil said, "Unless
the authorities is pro-active in addressing the supply situation, we habit be able
to maintain the gait of the demand." The rent for business office space in a prime
locality in New House Of York is about Rs 200 per sq foot a month, whereas the same is
about Rs 400 in Old Delhi or Mumbai, Vakil said, adding "the sustainability is a big
issue which will be discussed in the summit."

On Friday or Saturday eventide my married woman gets a film from Block Fellow and after dinner we sit, clasp custody and watch. This hebdomad she brought back one that I believe every investor or anyone contemplating investment in the market should see. It is called "Boiler Room".

How many modern times have got you been called out of the bluish by some no-name broker who desires to make you rich provided you purchase shares in this great new issue or some stock that is just about to "take off".

Usually they begin off with do I retrieve he called me 6 calendar months ago and recommended so-and-so issue that is currently in the intelligence because it have gone up 100 or 200%. He did not do that phone call and if he had Iodine am certain I would not retrieve it. Also the name of his firm is one Iodine never heard of, but it sounds very legitimate and he might even state they are affiliated with Chase Manhattan Bank or some other large bank. They might have got got their checking account with that institution, but otherwise they have no connexion with them. Now he have another recommendation that is going to make even better that that one. Yes, and hogs can fly!

If you haven't done so yet don't allow him travel any further. Bent up. Oh, I cognize you can't because your female parent taught you it is ill-mannered to hang up on people. Please, this clip DON'T listen to your mother. He will seek to get you into a conversation by asking simple inquiries that must be answered with a "Yes". Stop listening. If you can't convey yourself to hang up then set the phone down and walk away. In 10 proceedings he will be gone to name another sucker.

There really are steam boiler suite out there selling worthless securities and everything they make is 100% within the law and 100% immoral. How make I cognize this? I used to have a brokerage firm and I received monthly reports from the regulating agencies outlining charges against these fly-by-night dealers. Fortunately, I did not have got those problems as I would not allow ballyhoo to open up accounts.

The things being told on the phone are usually too good to be true and that is a fact. Bash yourself a favour and rent that movie. Not all brokerage firms are like this, but retrieve my basic rule.

NEVER SEND MONEY TO A voice ON THE PHONE.

Cape Town, which is listed in the top 5 metropolises to see before you die, have had a enormous roar in place in the last few years. Known for it's famous Table Mountain, the metropolis lies in the cradle between the mountain and the sea. Cape Town looks to be, in recent years, a topographic point for not only locals within the country, but a topographic point for people all over the human race to put in.

With the premix of civilizations in this city, everybody looks to have got caught onto the friendly vibe. Foreigner's come up through lone wanting a vacation and end up falling in love with the beauty. Some Tourism land sites propose it could be the assortment of amusement and activities causing the place boom. Due to the huge mountain ranges, nature militia and with having the ocean all round, there are plenty out out-of-doors amusement from surfing, mountain climbing and tramps available.

Dining in the Cape is also an experience that a batch of the locals and visitants take great pleasance in. Due to the different cultures, there are a big assortment of different ethnical nutrients and vibrations to take from, whether it's a Cape Malayan Curry or Chinese. The different locales also scope from a laid-back finger food, to formal gourmet.

There are plenty of topographic points to take from when looking at life in Cape Town. For people on the move, there are houses and flats within the metropolis of Cape Town, which throw all the exhilaration of life within the visible lights and in the bombilation of the action.

For the quieter types, houses with sea views, wood suburban living, as well as life in exuberant vales are not just daydreams anymore but a world in this city. One possible account for the roar in place gross sales is not only the scenic surroundings, but also the concern that have grown in the last 10 years..

The movie and advertisement industry in Cape Town have reached an all clip high. With the endowment of the people as well as the assortment of locations, Cape Town is slowly becoming one of the more than popular topographic points to movie movies.

With the added value of almost perfect weather condition all twelvemonth round, filming out-of-doors for the whole twenty-four hours goes the normal thing. It looks everyway you look at it, Cape Town have all the benefits of the perfect vacation home, or mundane place as well.

Property investors propose that the roar will probably transport on for a piece and then eventually stabilize, but with Cape Town in its favour.

Kigali

Real Contractors, a Rwandan building house have unveiled programs to carry on long term investings in existent estate development.

Projects on the tabular array include building of Nyarutarama thenar small town that consists 18 Villas with four bed suite each to be Rwf62million (US$112,727), Kagugu Villas estate with 21 four bed room units of measurement each standing at Rwf83million ($150,909), a 94 unit of measurement Kinyinya estate each with four bed suite and to be purchased at Rwf60million (US$109,090).

The company seeks to be the prima existent estate developer in Rwandese Republic according to the selling officer, Ms. Susan Asiimwe.

Other undertakings include Hillside Kabuga estate in Capital Of Rwanda outskirts that consists of 500 units of measurement and stands at Rwf38.5million ($70,000). Hillside Kabuga estate will be launched on September 8.

During an interview with East African Business Week at her business offices in Kacyiru, Capital Of Rwandese Republic on August 28, Ms. Asiimwe disclosed that Real Number Contractors have been investment in existent estate building in Rwanda for the past three years.

The company seeks to widen its trading operations to the East and Central African region. "Our Vision is to be a prima existent estate building company in Rwandese Republic and the East and Central African region."

Asiimwe said Real Contractors is pursuing long term existent estate building undertakings in Capital Of Rwanda and some have got been finalized.

Relevant Links

Real Contractors is also designing Capital Of Rwanda View Apartments comprising three-bedroom houses that volition be sold at Rwf45million ($81,818).

It also bes after to build students' hostelries in Kigali, Nyagatare territory in the eastern state and Butare in the southern province.

Asiimwe told Business Week that they don't sell finished houses but house designings which lets the purchaser flexibleness to change some facets on the designing to be compatible with a buyer's choice.

Have you been hearing to the talking caputs on CNBC-TV? Or those talking radiocommunication stock experts? Getting all those good recommendations on what to purchase now. Now?

Those cats maintain telling me the market is oversold. It can't travel any lower. (But it does.) I wager your broker have some hot tips for you too. Advice from a broker is a encomium for your money. I don't believe he have got told you about the 1 place you should have in your account right now. It's a awful four missive word to him - CASH. In a money market monetary fund it will do you about 5%, maybe 6% and that is better than the bloodletting going on in the market.

There is an old expression - "When in doubt, get out". And right now everything is in doubt. The "experts" are confused as 1 states 'recession', another states 'hard landing', another 'soft landing', 'buy', and no one states 'sell'. That last word is a 'no-no' on Wall Street. Less than 3% of all brokerage recommendations are sells. They are afraid they will pique the company and won't be able to speak to the chief executive officer any more. Hey, what about us clients out here? We are the 1s who are paying the bills.

Garrett avant garde Wagoner of the Avant Garde Wagoner household of finances said he follows 5,200 Nasdaq pillory and that more than than 1,000 of them have got got lost 90% of their value and 200 have dropped over 99% inch value. Yes, he states there are some great values out there, but he doesn't state which 1s or when to buy. I'd wish to inquire him if he was smart adequate to sell some of those puppies before they hit bottom.

The stock market aces believe they are market makers, but they are more than like weather condition condition meteorologists who foretell but cannot pull strings the weather. When the weather forecaster is incorrect you get wet. When the stock experts are incorrect you get soaked.

As I have got said in past columns there is no hope that Nasdaq will travel back to the 5000 degree for many, many years. Ten old age would be my closest guess. There are too many pillory being held by investors who are waiting for a mass meeting up so they can get out "even". This sort of thought maintains you poor. Your money is tied up in a stock that volition never execute when it could be some topographic point else making you a profit. There is always some silent person out there who will purchase your garbage.

We are having a deal cellar sale now in the stock market. Most of it is something no 1 wants. Ever been to a garage sale? Can their debris be your treasure? There will be plentifulness of clip to buy, but now is not the clip to travel shopping.

Have you spent infinite hours analyzing charts, only to come up away more than baffled than you were when you started. I would be willing to wager that the reply to this inquiry in most lawsuits is "Yes". The job most people run into is simple: Trading Forex is extremely difficult.

The figure of successful forex bargainers today is surprisingly low. This fact alone is a primary factor in the rise involvement of people gap managed Forex accounts. Let's return a expression at some of the benefits of managed Forex and what it takes to be a professional trader.

It takes a batch to go an expert trader, including an first-class instruction and devotion; the loss of significant amounts of money is also common in the beginning. Even the best bargainers around endure losings from clip to time, it's separate of the procedure of learning the markets. When I state serious loss I don't intend blowing out a $5,000 dollar account, many of todays top bargainers have got got spent Hundreds of one thousands in order to aquire the accomplishments of a professional trader; it's the cost many have paid while learning the ropes. Are you willing to endure the same loses in order to larn the ropes yourself. Taking advantage of the accomplishments of others is portion of growing a planetary web of powerful concern dealings and leveraging the strengths of others so that all may prosper. The expression "it's not what you cognize it's who you know" could never have got been more than true.

Trading with a professional Forex business relationship director will offer you many positive benefits. We'll begin by overviewing the advantadges and their indispensable topographic point in your program towards fiscal success.

1. Spending money on courses, books and seminars is often a cost associated with learning to net income in Forex. When you open up a managed Forex business relationship with a professional, these disbursals have got already been paid for by the bargainer old age ago. After factorization in the cost of professional Forex coaching, which can run anywhere from $250/hr to $2,000/hr and up, the benefits are obvious. Your professional bargainer have got spent a batch of money in order to supply you with a service which you both have the chance to net income from.

2. Trading on a demonstration business relationship may give you enough assurance to merchandise your finances in a existent account, only to recognize that demonstration trading and unrecorded business relationship trading are two different worlds. A professional Trader is familiar with the demands of trading on unrecorded business relationships and the differences that unrecorded trading offerings as opposing to demonstration trading. The lone manner to merchandise with assurance on a Live business relationship is through old age of experience. This is the kind of experience you will get by manner of networking with professional Forex traders.

3. Losing money in Forex can be kept to a lower limit with proper money direction skills, a professional Forex bargainer will cognize exactly how much purchase to utilize on your business relationship in any given trade and will utilize protective Michigan to maintain your business relationship losings to an absoute minimum. Learning when to merchandise and how much purchase to put on each individual trade can do the difference between a winning business relationship and a losing account.

4. When you allow your business relationship into the safe maintain of a professional you are offered something far more than valuable then money, you're given the very thing that brands life worth living: Freedom. Each twenty-four hours you can make as you please, whether it's spending clip with friends, household or loved ones. A good Forex bargainer will do certain your business relationship catches all the most profitable trades whether it's 7am, 4pm or 3 in the morning time while you're sound asleep.

Investing Forex can be an exciting determination when leveraging the endowments of others, it lets you to dwell your life vicariously through the accomplishments of those professional Traders you have got come up to know. As always the consequences of trading Forex are never guaranteed, but one thing you can be certain of is that your opportunities of success are always increased when working with a professional.

If you have got talked to a stock broker or financial contriver in the last few years I will wager they all hold that there are some great deals out there and now is the clip to begin purchasing in expectancy that the market will travel back up. You will also happen understanding from the talking caputs on CNBC and those talking radiocommunication station stock mavens. No 1 states sell. It looks like underside choosers heaven.

A twelvemonth ago when the Nasdaq was 2000 points higher they were telling you the same thing. Buy. Buy. Buy. If they are so smart to get you to purchase now then why weren't they smart adequate to state you to sell when it was manner up there? There are two basic regulations for professional traders: never allow a profitable trade travel to a loss and never take a large loss. The talking caputs are either not people or don't understand their business.

Since the beginning of the twelvemonth the technical school pillory have got lost 34% and from last twelvemonth they are down from the highs 65% and it looks like they are going lower. Isn't it clip to stop the bloodletting and sell? The problem with the small investor is he doesn't believe he have a loss until he sells. Wall Street have taught him that the market 'always come ups back'. Folks, not this time.

All social classes of common finances have got posted losings in the first one-fourth of 2001 for the first clip since 1980.

Has your broker or financial contriver called you to sell out to travel to the safe oasis of a money market fund? I will wager he hasn't. Unfortunately these "experts" are not taught to protect your capital. They will watch their customers' account dwindle away 30%, 40% 50% and more than and never make anything about it. It isn't their money. It is yours. You have got to take the duty to guard it. The average broker have 300 clients. Unless you are a 7-figure account you will not have any attention. Of the 77,000,000 common monetary fund proprietors in the U.S. 80% of those accounts have got less than $50,000. Their advice is either none or bad.

We cognize the economic system is slowing down and have been since early last fall. The market was continuing to travel up in expectancy and was ignoring implicit in facts. The emotional enthusiasm was carrying it to new highs almost every day. Of course, Mr. Greenspan didn't assist anything by raising interest rates when he should have got known better. It is the brokers' occupation to sell stock and do commission, but it should also be his occupation to counsel the neophyte investor to protect his capital.

The tendency is your friend. The tendency is down. It is still not too late to sell and set what's left of your cash in a money market account. Forget about your losses. That money is gone. You must protect what you have got left. Never seek to pick the bottom. There are no "bargains" at this level. Cash is the best place right now.