Thursday, February 26, 2009

How to Not Only Survive but Prosper in 2009

Prosperity in the midst of the worsening economic recession might sound like a pipe dream.
But the reality is that those who'll prosper will be those with a definite plan in mind and a lot of courage.

Most Americans are focused on survival right now.
They're circling the wagons in an attempt to protect themselves.

But some lone guns are out in the hostile economic wilderness searching for gold mines of opportunity.

Prosperity Road won't be easy to travel at first. There's bound to be plenty of cactus and wild weather to hamper the journey.

But in the end, those gold mines will be worth the effort.

So how will you find your gold mine?

By mapping out where you want to go and how to get there.

If you want to go from survival mode to Prosperity Road, click here.

Monday, February 23, 2009

Tips For Investing in Commercial Real Estate

by Rachel Spohn

Investing in commercial real estate can be a daunting, and if done incorrectly, very expensive process. The good news is you don't need years of training to be successful at it. First-time buyers who take the time to do their homework find real estate investing to be financially and personally rewarding. This article gives newbies the practical advice they need before jumping in.

First, here are a few differences between residential and commercial real estate (CRE) investments that you should know before buying anything. Commercial properties

• are valued differently. CRE income is directly related to its usable square footage, which isn't always the case with residential properties.
• often see greater cash flow. On an initial investment basis, the yield is often higher per square foot than in residential. A leased or rented multi-unit commercial property generates more income than a single-family dwelling.
• have longer leases. A longer lease length helps stabilize cash flow.
• help diversify risk. What this means is if, for example, you own an apartment building and you lose one of your ten tenants, only one-tenth of the income for that property is lost. In a single-family house a lost tenant means the entire rent is lost.
• are valued differently by the bank; find one that works with commercial real estate, and know that it will want a higher down payment than with residential investments, usually 30 percent or more.

One important similarity to keep in mind between these two types of property investment is that commercial real estate does go into foreclosure. Banks apply the same methods here as in residential properties.

Now that you're a little more familiar with the ins and outs of commercial real estate, the next step is to do some research. The worst possible thing to do is to jump right into before getting all the facts. It is important to educate yourself as much as possible to keep from making a financial blunder. Read as many books on the subject as you can. Learn the market for your geographic area.

If you have a specific property in mind, find out everything you can about that as well. Find out what the vacancy rates were with the previous owners. Talk to current storefront managers and find out what they like--and don't like--about doing business there. Don't be afraid to get out there and find the answers to such key questions as, Are current store owners planning to renew their leases? How are they doing financially? Have they been behind on rent before? What did they like about former management? Is the site properly zoned? Are any residential properties being built in the area? Is the population's median income at least at the national average, and are people maintaining their income levels? Be sure to ask to see the sellers' cash flow statements, too.

And if you want to flip commercial properties, check out the Home Seller Assist program and their 3% funding program.

Armed with this information, you will be better able to make a financially sound decision on your investment. Commercial real estate is a challenging but potentially very lucrative field, you just have to play the game right and educate yourself as much as possible.

Bacchus Development ( offers some of the most sought after commercial real estate for sale in Orange County. Rachel Spohn is a freelance writer.

Article Source:

Monday, February 16, 2009

Wednesday, February 11, 2009

Monday, February 9, 2009

The "Buy on the rumor" adage:

What rational explanation can there be for the market to go up by almost 3% on a single day when the big news was a job loss of 598,000, the largest loss reported in several decades? The answer is that there isn't any rational explanation. Isaac Newton once said "I can calculate the motions of heavenly bodies, but not the madness of people." The market is emotional, not rational.

Once again, the old Wall Street adage "Buy on the rumor and sell on the news" seemed to be at work. The rumor was the possibility of the stimulus package being passed. Will the market turn around and move lower once the package becomes a reality? Investors carried out the first part of the adage, and it will be interesting to see if they follow through with the second part.

The adage has its roots from the 1950's when a lot of merger activity was taking place. A study showed that in the few months before a merger was announced (but was rumored), the stock outperformed the market in general, but once the merger was announced, the stock underperformed the market. The best strategy was to buy when the rumor started circulating, and then sell as soon as the news became public.

I could not find any studies that supported the adage since the 50's study, but it has persisted nevertheless. I think it is just something for analysts to pull out when there is absolutely no rational explanation they can think of to explain why the market did something like what it did on Friday. It really doesn't make any rational sense. Once again, we are reminded that the market is primarily an emotional beast rather than a rational thinking intellectually evolved animal.

Thursday, February 5, 2009

Finger Length and Financial Success

Look at your hand. Is your ring finger (the one next to your pinky) longer than your index finger? If so, congratulations! If not... well, don't read any further.

Researchers from the University of Cambridge who studied male stock traders in London found that those with longer ring fingers tend to make more money (about five times more) than their counterparts with shorter ring fingers.

What does finger length have to do with financial success in the markets?

Here's one possible explanation offered by the authors of the study: The length of those two fingers is determined during fetal development. And a longer ring finger indicates increased exposure to the male hormone androgen. Androgen has been linked to increased confidence, persistence, heightened vigilance, and quick reaction times.

This "cutting-edge" research doesn't tell us however, what effect education, background, experience, and hard work might have on an individual's success as a trader. Because, you know, that would be silly.

(Source: Associated Press)