beginner investors

Beginner Real Estate Marketing Portfolio New Investors by: E. Tamika Edmond, CEO Edmond Consulting Group and Smart Investment Group, LLC April 18, 2008 Marketing Portfolio 1 Basic Informational for Beginner Investors ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ Business License * INC to keep all business transaction separate from affect your personal credit.** Credit Restoration- $250 down/ $250 within 30 days Financial Consulting Business Plans $40 ( 5 years) Closing Assistance $200 per house/ $275 for 2 or more, $300 per commerical/ $450 for 2 or more Build Asset Lower Liabilities Benefits in Residential Benefits in Commerical Business Credit Grants $350 SBA Loans $ 150 application fees Land Trust Marketing Portfolio 2 Business License: $200 Selecting the Right Business Structure To get the most out of your small business, choose the right structure. Selecting the right type of company for your new business helps maximize your chances of financial and operational success. Common business structures include: C Corporations Independent legal and tax structures separate from their owners Help separate your personal assets from your business debts No limit to the number of shareholders Taxed on corporate profits and shareholder dividends Must hold annual meetings and record meeting minutes Limited Liability Companies (LLC) Independent legal structures separate from their owners Help separate your personal assets from your business debts Taxed similarly to a sole proprietorship (if one owner) or a partnership (if multiple owners) No limit to the number of owners Not required to hold annual meetings or record minutes Governed by operating agreements S Corporations Independent legal and tax structures separate from their owners Marketing Portfolio 3 Help separate your personal assets from your business debts Owners report their share of profit and loss in the company on their personal tax returns Limits on number of shareholders, who must be U.S. citizens or permanent residents Must hold annual meetings and record meeting minutes Credit Restoration $ 500=$ 250 down/$250 within 30 days 1. The Credit Restoration Process Step By Step 1. The custom er com pletes the enrollm ent packet by signing the contract and attaching a copy of the verification for their current address and Social Security num ber. The enrollm ent packet is then m ailed to the Processing Center. The custom er m ay cancel the contract without penalty or obligation anytim e prior to m idnight of the 3rd business day after it is received by the Processing Center. If the custom er is not satisfied after six m onths or three dispute cycles (whichever occurs first), they m ay receive a refund less a $125 set-up charge and $25 for each negative rem oved or corrected during the tim e they were involved in the credit restoration process. 2. The enrollm ent process begins once the custom er contract, paym ent and address/SSN verification is received by the processing center. Acceptable form s of address verification are pre-printed docum ents, which include the custom erâ i™ s current address (ie: drivers license or utility or credit card bill). Acceptable form s of SSN verification include a copy of the Social Security Card, a pay stub or a W -2 Form . 3. W ithin seven to ten business days the custom er will receive their first dispute packet, which includes: Com pete Explanation of dispute process. A dispute docum ent to reviewed, signed and forwarded to each credit reporting agency. 4. The custom er will receive a letter 10 days following the m ailing of their first dispute letters to assure that they received their initial dispute package and to explain the dispute cycle process. Every 45 days thereafter the custom er will be contacted and rem inded to forward all correspondence received from the credit agencies to the processing center for inclusion in future updates. Marketing Portfolio 4 5. If the dispute letters require any changes, the custom er is encouraged to m ake them on the initial dispute docum ent and forward them back to the processing center. In turn, the processing center will m ake the changes and forward new dispute letters to the custom er for final review. 6. Once the custom er is satisfied with the dispute letters, they will sign and m ail them to the three credit reporting agencies as outlined.  Additional Custom er Benefits : The duration of the service is approxim ately eleven m onths or through the com pletion of five dispute cycles. Every 60 days the custom er will receive a new dispute letter to m ail to each credit reporting agency from the processing center. The custom er can access their progress report online 24/7, 365 days per year. The custom er will also receive a progress report with their dispute packet from cycle two through five. Important Custom er Reminders : To prevent any delay in the credit restoration service, it is very im portant that the custom er com m unicate any change of address to the processing center (via fax, m ail or e-m ail). The custom er m ust forward any and all correspondence from the three credit reporting agencies to the processing center without delay. Failure to do so m ay result in inaccurate dispute letters. It is advised that the custom er retain a copy for their records. Financial & Consulting Fees Edmond Consulting Group charge a flat fee of $ 3500 for 2 years. Consulting fees vary based on investment deals for marketing but are discounted once you become a client of SIG or Smart Investment Group, LLC. Within the consulting fees covers: Legal Services submitted paperwork ROI Portfolio Marketing Portfolio 5 Financial Planning Project Management Business Plan: By developing a strong business plan, it will become your success tool and your guide toward financial wealth. Within you business plan, you will estimate a five year projection on how to remain secure in your investments. Most lenders fulfilled beginner investors who wants to build their business credits. Business plans are $40 How to build Asset Assets are collateral for lenders to find stability in your financing. Your starting point Houses Sales Price Contract Price Refund 1 $40,000 $48,000 $8,000 2 $40,000 $48,000 $8,000 3 $40,000 $48,000 $8,000 4 $40,000 $48,000 $8,000 Total Refund Closing Assist. SIG Consult. Equity $32,000 $10,000 (Closing fees, appraisal, downpayment) $ 3,500 $40,000 Return on Investment $58,500 Mortgage Payments $1240 Rent Collected $2000 Total $760 Within 3 months You should have $25,000 in your pocket or equity. Residential buy 2 more houses or go to small commerical with return on investments. Marketing Portfolio 6 Benefit of Residential You can continue to build up asset but can raise your liabilities. It also create more rehabing or constantly repair which can get COSTLY. Then your return on investment will declined. Benefit of Commerical Commerical Properties have a huge return on investment because it investment pays for itself and lower your liabilities. Commerical are at the economy high for real estate investors. Your gross rent should cover all operating expense+ fair share of return on investment. Business Credit Smart Investment Group,LLC 1. Your best decision you can make is with SIG. Home Page About us Our Services Real Estate Legal Sevices Credit Repair Business Advising Investment Club CONTACT US TODAY Affiliates Business Advising Business Consultant Assessment Marketing Portfolio "Belief that a change is easy makes it likely that it will be made incorrectly" 7 Getting the analysis right is key to successful projects. Our consultancy service offers access to some of the most experienced Business Analysts and Project Managers at normal contract rates. We know that the consultancy production rate will reflect the experience of the consultant. You know that you won’t be paying for ‘consultants’ who are fresh out of college and/or the business owner’s “buddy” who have no real world business consulting experience. Our team of professionals have experienced the “trials and tribulations” of being business owners as well as the firm foundation of “SUCCESS”. Research shows that 56% of all consultants employed on major decisions made by business owners are performing business analysis yet only 34% of them have had any formal Business Analysis training. Our consultancy service offers you genuine consultancy. Our consultants' brief is to 'tell it like it is' rather than telling you that you need to hire more consultants, or what they think you want to hear. Our Business Analysts are the pick of the best analysts and managers that we have worked with over the past six years. Their services are available for periods from one day to several months. Key areas where we are able to assist include: Project scoping - driving out key issues early on and ensuring that scope is clearly and concisely defined and agreed Methods and approach - helping you decide how best to document and manage requirements to achieve the business benefits you desire Workshop Facilitation - from Project Initiation to Project Reviews Process and Data Modeling- building business models that fit with your organization both now and for the future Issue and Risk Management - identifying project issues and risks and seeking prompt resolution Consultants can advise corporations, small businesses and people on an array of issues related to their business, from how to set up their computer systems to how to market effectively. Pretty much anybody with a specialty in a field can offer consulting services. Our service personnel are placed strategically to better serve our clients and only consult on what they know. So our Clients at CSA are assigned a team of individuals to work with. Due to shifting consumer demands, increasing global competition, and the introduction of new Marketing Portfolio 8 technologies, many large companies have been forced to cut back on operations and to downsize their work forces. But small companies have been able to recover easily. It is small businesses that are creating most of the new jobs in America because of their flexibility. They have the ability to quickly respond to changes in the economy and easily take advantage of new opportunities. The Business Analysis Business Consulting Services Marketing Portfolio Business Consulting Services helps to ensure successful implementations by providing 9 design, project management, and implementation consulting services. Whatever your needs, CSA consultants are here to help. Engaged for any duration from full implementation to assistance through project stages, to tuning of existing operating systems, CSA consultants are experienced and highly skilled. Our experience derives from having completed thousands of consulting projects in a variety of industries since 2000. Our services include: High Level Planning Detailed Requirements Definition Project Management Incorporating Services Business Credit Building Tax Saving Strategies Asset Protection Business Planning Business Communication Operating System Training On-Going Support For information from the Small Business Administration, click here, http://www.sba.gov/hotlist/businessnames.html Business Credit Builder Services Why Would You Need Business Credit? Building your business credit will improve your business with the following: You will save time and money for your business Meet any current lending needs Prepare for any future lending needs Marketing Portfolio Have cash in your business when it's needed Ability to extend your cash flow Lower your interest rates Build credibility for your business 10 The biggest advantage of having a good business credit profile is saving money. By obtaining a more favorable credit score you will lower the interest you pay on loans and leases. For example: EXAMPLE 10 year payback Good Credit Score Average or No Credit Score Loan Amount $100,000 $100,000 Length of Loan 10 years 10 years Interest Rate 7.5% 10.5% Payment $1,187.02 $1,349.35 Total Interest Paid $42,441.99 $61,921.99 Total Savings For Having Good Credit $19,480 EXAMPLE 5 year payback Good Credit Score Average or No Credit Score Loan Amount $100,000 $100,000 Length of Loan 5 years 5 years Interest Rate 7.5% 10.5% Payment $2,003.79 $2,149.39 Total Interest Paid $20,227.75 $28,963.40 Total Savings For Having Good Credit $8,685.60 Separate Business Credit You can separate your personal liability and protect your personal assets from that of the business just by incorporating. It is possible to build a business credit profile for a sole proprietorship or partnership, however you are still responsible for all the debts of the company. We recommend building your business credit as a corporation or limited liability company. Other advantages of a corporation are: Separates you from your business Limited liability of the owners and officers Lower tax liability 100% tax deductible insurance Reimburse 100% of medical expenses Corporate image Raise capital and build credit faster Lower your audit risk as a small corporation Stock ownership - easier to transfer assets Protect Your Personal Assets Business Credit Profile To get information on your credit status, click here, http://www.experian.com/business/bcr.html Advantage of Having a Business Credit Profile Just by building a business credit profile you will be able to limit the use of your personal guarantee and build business credit regardless of your personal credit history. Marketing Portfolio You will have more cash for the business Convenience in purchasing Protection of your personal assets from that of the business Limit your personal liability from the business No need for personal credit checks Purchase vehicles with no personal guarantees Purchase equipment, computers and more with your business credit Preparing your business for future lending needs CSA Business Credit Services The CSA BUSINESS CREDIT Program This Business credit profile is designed to provide businesses the ability to obtain trade or business credit without the use of a personal credit check or guarantee. 12 Our Business Credit Support team is the FIRST company in the nation to offer a Business Credit Building service with credit coaches to assist business owners in establishing a business credit profile and obtaining business credit with companies all around the country. Each step of our process is done legally, ethically and with a high degree of integrity. Our Business credit team sets itself apart from any competitor in the market place by providing a qualified coaching staff to assist you and answer any questions you have. Our coaching staff is the reason for our success. This Program has been used by thousands of business owners from every state in the nation. The success of the program has caused Business Credit Services Support team to file a patent application with the Federal Patent Office. The patent is currently pending approval. To request information about our services and receive a free booklet on building business credit,. The Goals we accomplish with our Business Credit Program: To separate your business and personal credit. To build a business credit profile with multiple business credit bureaus. To provide information on how to obtain a business credit score. To obtain business credit accounts. To open lines of credit with national retail credit companies. To keep the business out of the "No Credit" status with lenders and credit bureaus. Marketing Portfolio What you will receive with our Business Consultant Credit Service: 13 Unlimited access for an entire year to our team of business credit coaches that will assist and coach you through the process of building a separate business credit profile from you personally. Coaching calls to monitor your progress and keep you informed of steps necessary to build the credit profile. Business Audio Cd's: Building Business Credit Obtaining a Business Loan Where to Find Business Credit The Best Business Entities Consultation & Support Service Tax Saving Strategies for Business Professionals One year access to our Business Resource Center where you will find: A step-by-step update of where your business is in the credit building program Online business credit coach Free business resources Discounts and Free Offers from our various Business Partners E-Business Newsletter E-Business Seminars Complete detail of your business credit profile One year monitoring of your Business Credit Reports Business Credit Profiles with the major business credit bureaus completed during the first year of service. In most cases before six months To request information about our services and receive a free booklet on building business credit, click here. The steps your business will go through: Your business will pass through our research and compliance department to determine all local, state and federal requirements are in place. Your business will also go through our research department to determine all lender and credit bureau requirements are in place. Your business will be registered with several business credit bureaus to start the development of your business credit profile, separate from you personally. Receive a list of businesses that will offer your business credit without the use of business or personal credit checks or personal guarantees. Marketing Portfolio Save money by bettering your credit score and lowering interest rates. 14 Receive a list of businesses that will extend your business lines of credit and retail credit cards based on your business credit profile. Receive a list of businesses that will extend credit to your business based on your business credit profile and score. Review your financial statements by our team of business coaches. Review your business plan by our team of business and credit coaches. Provide resources for vehicle leases and equipment financing under the corporation's name. Keep your business out of the No Credit status. The program takes our average client 5-6 months to complete. However you will have one year to enjoy all the benefits associated with the program. The average satisfaction rate of our clients after they have completed the Business Consultant & Analysis Program is over 88%. Business Consultant Analysis & Assessment Take your Business through the CSA Business Credit Assessment. You will learn: How to lower your tax liability legally by hundreds even thousands of dollars How to protect your wealth and assets How to network and grow your business How to avoid a personal credit check or guarantee on business credit Where your business stands now in the eyes of credit grantors What steps you should be taking to build your business credit How to separate your personal and business credit Provide additional capital for your business More than 30 million transactions take place every day in the business credit reporting bureaus. Transactions vary from submitting information about your business to pulling information about the credit worthiness of your business. With our Business Consulting Assessment program, Corporate Services & Associates will provide steps to make sure you get listed in the business credit bureaus, post filing reviews for Marketing Portfolio 15 amended tax returns (if warranted) solving existing tax problems, tax preparation services, real estate solutions, leases and trade credit from various lenders, Incorporate your business for asset protection, legal and ethical tax saving strategies. The Business Consultant Assessment is a live phone consultation with one of our expert Business Consultants. Real Estate Investors W ealth Building Tax Strategies & Secrets for Real Estate This program is designed for real estate professionals, investors, accountants, & financial advisors. Its focus is on how to make buyers & sellers more knowledgeable, motivational, and professional. Some topics Include: Introduction Financial Analysis of Home Ownership Tax Planning for Home Owners Maximizing the Home Exclusion When You Sell Your Home Tax Planning for Rental Properties Tax Goodies While You Own Your Rental Properties Income Splitting Minimizing Taxes When You Dispose of Property Get Maximum Benefits from Vacation or Second Homes Real Estate Wealth Builder Fact: Real estate appreciated at a national average of 5% at a time when stocks appreciated at an average of 10%. Fact: The real estate investor will accumulate MORE wealth than the stock investor, even though the return on stocks appears to be HIGHER. How can this be? Leverage!!! (Leverage is money you have borrowed). With real estate, your wealth grows on money you have borrowed from the bank. The more leverage you have, the faster your wealth will grow. The Real Estate Wealth Builder allows you to input variables such as the purchase price of your first property, your initial down payment, the anticipated appreciation and the loan interest rate to see how much wealth you will accumulate in the future Marketing Portfolio 16 This program comes with the assignment of a real estate solution expert and a 6-CD audio educational series and much more: THE CSA SUPPORT TEAM’s Mission Statement: To teach individuals how to acquire, maintain, grow, and protect their personal and family wealth, through real estate investing, wealth education, and multiple streams of income. We will assist in developing responsibly wealthy, independent leaders, with an emphasis on integrity, abundance, honor, service, leadership, vision, and excellence. We will impact our communities, our country and the world by restoring the natural balance between those who have and those who have not; by bridging the gap of information that separates the wealthy from the general public. Real Estate Investor Support Services The CSA real estate investment team has been investing in real estate for several years, and while making millions and establishing ourselves as experts we have witnessed the industry go through its cycles, both good and bad. Many investors have come and gone during this period. I will say from the onset; you have already set yourself apart from the general public. 80% of success is just showing up!! One of the fundamental principles in the United States has always been the advantage of the property owner. When the constitution was written, property ownership was the measure of voter eligibility. Only property owners could vote and determine the direction of the country. Half of the measurable wealth of the country was held in property. We were set up over 200 years ago to be a country shaped by real estate owners. That’s why there are so many tax loopholes written in the tax law. They support the real estate investor. Congress continues to pay attention to the voting public. The many tax advantages of real estate ownership are more secure than other current tax provisions because Congress recognizes who votes!! Click here to read more. The most effective way to learn real estate investing is to leverage other peoples experience and knowledge. Never in history, has so many invaluable books been written. The only drawback is the amount of time needed to write, edit, print, publish, and deliver it to your local bookstore. This lengthy cycle delivers valuable, yet outdated material. Live real estate courses are also a great source, unfortunately most real estate investment courses are very expensive and only take place so often. After several years of learning from our own successes and failures and from many colleagues as well, we have the recipe needed for success in real estate investing. The Real Estate Investing Support Services Division provides detailed support services that cover every aspect of real estate investing for all different types of investors. From one on one coaching, walking investors from start to finish through their deals, and participating in large projects, to property fulfillment and management, and providing in-depth real estate Marketing Portfolio 17 training in all areas, this division is equipped to support any one investing in real estate regardless of their level of real estate investing knowledge. Land Trusts 1. What is a Land Trust? A land trust is a nonprofit organization that, as all or part of its mission, actively works to conserve land by undertaking or assisting in land or conservation easement acquisition, or by its stewardship of such land or easements. Are land trusts government agencies? No, they are independent, entrepreneurial organizations that work with landowners who are interested in protecting open space. But land trusts often work cooperatively with government agencies by acquiring or managing land, researching open space needs and priorities, or assisting in the development of open space plans. So, what are the advantages of working with a land trust? Land trusts are very closely tied to the communities in which they operate. Moreover, land trusts' nonprofit tax status brings them a variety of tax benefits. Donations of land, conservation easements or money may qualify you for income or gift tax savings. Moreover, because they are private organizations, land trusts can be more flexible and creative than public agencies - and can act more quickly - in saving land. UPDATE: In August 2006 legislation was enacted increasing the tax benefit for donations of conservation easements. Learn more! What does a land trust do? Local and regional land trusts, organized as charitable organizations under federal tax laws, are directly involved in conserving land for its natural, recreational, scenic, historical and productive values. Land trusts can purchase land for permanent protection, or they may use one of several other methods: accept donations of land or the funds to purchase land, accept a bequest, or accept the donation of a conservation easement, which permanently limits the type and scope of development that can take place on the land. In some instances, land trusts also purchase conservation easements. I first heard about land trusts just a few years ago. Are they new? Not at all! A very few land trusts have already celebrated their centennials, but most are much younger. In 1950, for example, just 53 land trusts operated in 26 states. Today, more than 1,600 land trusts operate across the country, serving every state in the nation. The Northeast, home of the first land trust, still has the most land trusts - 581, according to the Land Trust Alliance's most recent National Land Trust Census. Marketing Portfolio 18 What has contributed to the huge growth in the number of land trusts? People are tremendously concerned about the unmitigated loss of open space in their own communities. They see subdivisions supplanting the open spaces where they once walked and hiked, and they want to know how they can gain the power to save the green spaces that make their communities unique. So they turn to land trusts as the local entities that have been set up to conserve land. How do I start a land trust in my community? Land trusts are extremely effective vehicles for conserving land. But with more than 1,600 land trusts already in existence, starting a new land trust may not be necessary, timely, or the best approach to achieving your community's conservation goals. Given the time and effort it takes to run a land trust and the long-term commitment needed to protect land in perpetuity, the Land Trust Alliance encourages you to work with an existing land trust whenever possible. If you do decide to establish a land trust here is some additional information.