Residential real estate is one the best investments available today. PERIOD. I’m not suggesting that you should invest your 401K in the junk foreclosure next door. But I am suggesting that investing in the mortgage on that foreclosure is a GREAT idea. And it is an ultra safe, secured investment as I’ll explain a little later. In spite of the horror stories you have heard in the past year about banks and foreclosures, NOW is the time to . While the market is flooded with an excess of homes, the pricing has never been better. Whether you feel the bottom is here and prices are soon going to rise or you think the slide will continue, we have an for you.
For the faint of heart who just want a guaranteed high return on a safe, secured investment, check out this scenario:
We houses in the Atlanta area and have gotten pretty good at buying at DEEP DISCOUNTS.Sometimes we don’t have time to wait 4-6 weeks for a bank to process a loan, so we find private investors with some cash to invest. This can be from a self directed IRA or 401K or perhaps an inheritance. Your trustee wires the funds to the closing attorney who issues the same documents furnished to a Commercial Lender; title insurance, a security Deed to the property and a Mortgage paying you or your plan, the highest, guaranteed interest rate you are likely to find today. Your investment is very safe because we do not borrow more than 50% to 60% of the current market value of the property. So even if real estate prices slide another 20%, your $50,000 mortgage on a $100,000 house is still secured with a property worth $80,000. That is about as SAFE and SECURE an investment as you can make. The demand for housing is guaranteed as the U.S. population continues to grow and Atlanta is still among the fastest growing in the Nation. Prices may continue a little further decline, but no one is expecting a 50% drop. For a detailed description of this program, visit our website and if it appeals to you complete the contact information form.
If you are a little more agressive and can tolerate a little risk, you will love this plan. Become a partner with us and share in the profits. Banks are eager to sell foreclosed homes for 40-50% of current market value. The banks must get these homes off their books as soon as possible and with private investors, we can close very quickly so we get many deals even when we are not the highest bidder. The Private Investor is protected by the mortgage, title insurance and Security Deed, just as any Commercial Lender would require.
Your investment is still safe and secure but we can’t guarantee a particular rate of return. Your return is likely to be much greater than with our guaranteed program.
Many economists are predicting Hyper Inflation in the very near future and they recomend investing in hard assets like real estate. I remember in the 1970′s when inflation was 20% per year, house values would double every 2-4 years. With all the money being pumped into the U.S. economy now, I’m betting 20% inflation will look mild in 2-3 years. Now is the time to invest in safe, secure real estate. Whether you want a guaranteed hight rate of return or you want a chance to see your funds increase even faster, fill out the contact information form and
Full time Real Estate Investor and Professional Home Buyer, we specialize in buying houses in Lilburn GA, Snellville, Lawrenceville and Loganville, GA. We frequently use Pension Plan money of other investors to fund our purchases.
It is widely accepted that every successful business must have a strong working capital position. It is in this context; an attempt was made to explain the concept and various determinative factors influencing net current assets below:
Gross working capital refers to working capital as the total of current assets. That is to say, Gross working capital = Total current assets. Net working capital refers to working capital as excess of current assets over current liabilities. In other words net working capital refers to current assets financed by long term funds or capital employed of the business.
Accordingly, Net working capital = Current assets – Current liabilities
The net working capital position of the firm is an imperative contemplation, as this will determine the firm’s profitability and risk. Here the profitability refers to profits after expenses and risk refers to the probability that a firm will become technically insolvent where it will be unable to meet obligations when they become due for payment.
A finance manager has to make an appropriate financing mix, which will limit the risk and increase the profitability. Financing mix refers to the proportion of current assets financed by current liabilities and long term funds.
There are two approaches which determine the financing mix (1) Aggressive approach (2) Conservative approach.
According to aggressive approach the long term funds are used to finance only the core or fixed portion of current assets (e.g., minimum level of finished goods inventory, raw material etc) and the other portion i.e. temporary and seasonal requirements are financed by short term funds. This is of high risk and high profit financing mix.
According to conservative approach the total current assets are financed from long term sources and short term sources are used only in emergency situation i.e. when there is an unexpected cash outflow. This is of low-risk and low-profit financing mix.
As we observed two methods of financing mix, one method is of high risk high profit and other is of risk low profit. A finance manager has to trade off between these two extremes.
Operating Cycle:
As there is a time lag between and realization of receivables there is a need for sufficient working capital to deal with the problem which arises due to lack of immediate realization of cash against goods sold. The operating cycle is the length of time required for conversion of non-cash assets into cash. This operating cycle refers to the time taken for the conversion of cash into raw material, raw materials into work-in-progress, work-in-progress into finished goods, finished into receivables into cash and this cycle repeats.
The operating cycle length differs from firm to firm. If a firm has lengthy production process or a firm has liberal credit policy the length of operating cycle will be more. On the other hand, if a firm does not extent credit or the firm is not a manufacturing concern i.e. where cash will be converted into inventory directly then the length of operating cycle will be reduced to a greater extent.
The length of operating cycle is calculated based on the following:
Raw materials storage period (RMSP)
Work in process period (WIPP)
Finished goods storage period (FGP)
Debtors collection period (DCP)
Creditors Payment Period (CPP)
ThereforeLength of operating cycle = 1+2+ 3+4-5
FACTORS INFLUENCING WORKING CAPITAL NEEDS:
A firm should have neither low nor high working capital. Low working capital involves more risk and more returns, high working capital involves less risk and less returns. Risk here refers to technical insolvency while returns refer to increased profits/earnings. The amount of working capital is determined by a wide variety of factors:
Nature of Business: The working capital requirement of a firm depends on the nature of the business. For example, a firm involved in of services rather than manufacturing or a firm is allowing only cash . In the first instance, no investment is required in either raw materials or WIP or finished goods, while in the second occasion there exists no receivable as there is immediate realization of cash. Hence the requirement of working capital will be lower.
2Seasonality of Operations:
If the product of the firm has a seasonal demand like refrigerators, the firms need high working capital in the periods of summer, as the demand for the refrigerators is more and the firm needs low working capital in the periods of winter, as the demand for the product is low.
3. Production Cycle:
The term production cycle refers to the time involved in the manufacture of goods. It covers the time span between the procurement of the raw materials and the completion of the manufacturing process leading to the production of goods. As funds are necessarily tied up during the production cycle, the production cycle has a bearing on the quantum of working capital.
The longer the time span of production cycle, the larger will be the funds tied up and therefore the larger the working capital needed and vice versa.
4.Production Policy:
The quantum of working capital is also determined by production policy. In case of the firms having seasonal demand of the products like refrigerators, air coolers etc. and the production policy of the firm determines the amount of working capital requirement. If the firm has production policy to carry production at a steady level to meet the peak demand, this will result in a large accumulation of finished goods (inventories) during the off-seasons and the abrupt during the peak season. The progressive accumulation of finished goods will naturally require an increasing amount of working capital. If the firm has production policy to produce only when there is a demand then the firm needs low working capital during the slack season and high working capital during season.
5. Credit Policy:
The level of the working capital is also determined by the credit policy, as the firm’s credit policy determines the amount of receivables. If the firm has a liberal credit policy, then the firm needs high working capital and the firm needs low working capital if the company’s credit policy does not allow it to extend credit to the buyers.
6. Market Conditions:
The working capital requirements are also determined by the market conditions. In case of the high degree of competition prevailing in the market the firm has to maintain larger inventories as customers are not inclined to wait for the product. This needs higher working capital requirements. If there is good demand for the product and the competition is weak, a firm can manage with smaller inventory of finished goods, as customers can wait for the product if it is not available in the market.
Thus, a firm can manage with low inventory and will need low working capital requirements.
7.Conditions of Supply:
The availability of raw materials and spares also determine the level of working capital. If there is ready availability of raw materials and spares, a firm can maintain minimum inventory and need less working capital. If the supply of raw materials is unpredictable, then the firm has to acquire stocks as and when they are available for ensuring continuous production.
Thus, the firm needs to maintain larger inventory average and needs larger requirementofworkingcapital.
CONCLUSION:
From the above discussion, it is made clear that the objective of financial management is to maximize the shareholders wealth. Hence, it is needed to generate sufficient profits. The profits generated depend mainly on volume. When the goods are being sold on credit as is the normal practice of business firms today to cope with increased competition the of goods cannot be converted into cash instantly because of time lag between and realization of cash. Further this is possible only through evolving effective working capital policy and better administration on current assets financing.
Dr.R.SRINIVASAN is a Post graduate in commerce and Management. He received his doctoral degree from Alagappa University in 1997. He is now Working as an ASSOCIATE PROFESSORin Post graduate and Research Department of Corporate Secretaryship at Bharathidasan Government College for Women (Autonomous), Pondicherry University, Puducherry.He currently teaches Accounting ,financial management and Research Methodology Subjects. Before Joining BGCW, he was teaching in SNR College, Coimbatore, Sindhi college, Chennai& T.S.Narayanasamy College, Chennai for eight years. He was with the industry for a short term at Salzar Electronics Pvt. Ltd, Coimbatore. He has about 20 years of teaching experience and having research experience of 15 years. His interests are in Accounting and finance, Capital Market, Quantitative Methods. He underwent the Faculty Development Programme at Indian Institute of Management Ahmedabad during 2000-01. He has presented 20 papers in national and international conferences and has published twenty papers in the areas of Finance and Human resource Management in National Journals. Co-authored a book titled, ‘Investors Protection, published by Raj Publications, New Delhi He has delivered lectures in contemporary finance topics at Pondicherry University. He is involved in consultancy projects for Godrej Saralee, Chennai in the areas of Statistical Applications. He has supervised a number of research projects in the area of corporate finance and Human Resource Management. He is the Board of examiner in corporate Secretaryship and Management for the past two decades.
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We all like to invest money in something that will give us high returns. Often we desire than our money will work for us instead of us working for money. But this is a rare occurrence. Now in such times when the economy seems to be financially shattered, people now want to settle for long-term investments, which are usually considered to be secure. But how long can you wait for returns? If you are someone who wants rapid returns on your investments, then online share trading will be your best bet.
In fact, online share trading enables you to explore the ever intriguing and tempting stock market. However, making money in the stock market is not as easy as it appears to be.
If you are a beginner, you will have to be well-versed with basics of online share trading. At times the learning curve becomes very steep for the novice traders. If you have the patience and the determination to stick to this market, then your efforts will definitely pay off at the end and you may be rewarded handsomely.
Now that you have made up your mind to enter into this trade, you need to register in an online share trading company. Well, that’s not as difficult as you may have thought of. You can easily get your registration done with the help of a company that is already engaged in this trade or you may take the help of a share broker.
In the initial stages, you may get in touch with a share broker and gain some experience in offline share trading. Once you are confident about the trade, then you will be able to understand well the intricacies and performance of the online trade. Following that you will also be able to enjoy all the lucrative gains out of the trade.
Put your thoughts at bay if an impossible thought has ever struck your mind. In fact, with the advent of internet, things are far easier now. Through internet you can not only educate yourself on all the aspects of online share trading but can start your own venture. Though this is a risky proposition, yet you can gain only when you are overly cautious about the fluctuations in the market and know when to play your cards. If your cards fall in the right place at the right time, then you may be fortunate enough to reap millions out of this trade.
Now coming to how the business takes place, the online purchase and of purchase determines the fortune of the trader. The purchase and takes place on a daily basis. It will take some time to get acquainted with the market but once you are able to study the movements, then you will be able to take your own decisions as to which shares you would like to put on and which ones to put on hold.
The media has more than often tagged online share trading as ‘easy money’ but when you ask any investor, you will know what this ‘easy money’ is all about. Making informed decisions should be your forte. The risk-reward principle works at every interval in this trade and if you are able to successfully scale them, then the blessings of ‘Fortune-God’ is always with you.
Please visit and reviews for more information on this topic.
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