The Big Four Reasons for Investing in Real Estate

Written by Andre McFayden


The 4 BIG benefits of investing in real estate are:

1) Cash Flow - This is your spendable income after deducting all operating expenses and mortgage payments from rental income received.

2) Loan Amortization - With each mortgage payment you make, your loan balance is reduced and your equity increased.

3) Tax Savings - Investors are allowed to take a depreciation deduction for rental properties. By taking this deduction,repparttar taxable income fromrepparttar 112082 rental property is further reduced.

4) Appreciation - Over time,real estate generally goes up in value.

Selecting An Equity Finance Consultant

Written by William Cate


Selecting An Equity Finance Consultant By William Cate

Most Chief Financial Officers (CFOs) realize that it's a hundred times easier to raise venture capital for a public company than a private company. There is no shortage of individuals and firms seeking to advise and coordinaterepparttar going public process for CFOs. The problem is that many of these equity finance consultants are inept and/or dishonest. Here are some simple rules for finding a competent and ethical advisor.

Avoid firms that don't disclose anything about themselves or their employees. The Net is a wonderful free-tool for doing "Due Diligence" investigations on firms and individuals. Do an advanced search onrepparttar 112081 firm and its principals. Credit checks and background investigations are wise investments before you hire any consultant.

All equity finance consultants have two basic ways to take your company public. They can help you do an Initial Public Offering. Or they can suggest one of several alternative ways to go public inrepparttar 112082 USA. None ofrepparttar 112083 alternative tactics include a public financing for your company. Whatever solutionrepparttar 112084 prospective equity consultant advises, you should ask for an estimate of costs, time to trading andrepparttar 112085 odds of being called for trading. You should also determine howrepparttar 112086 equity finance consultant expects to make money helping your company go public.

If you have an operating company and decide to do an IPO, your costs should average between $1.5 and $2.25 million. You should expect that it should take an average of 18 months to get your "Effective Letter" fromrepparttar 112087 SEC. And your odds of success are about even, that is, 50/50. You should expect to pay your underwriter about 18% ofrepparttar 112088 money raised. You will be expected to pay non-refundable upfront expense fees. You should budget $10,000/per broker presentation that will be needed to helprepparttar 112089 underwriter raise your IPO money. If your prospective consultant disagrees with these guidelines, ask them in writing forrepparttar 112090 evidence to support their viewpoint.

IPO alternatives range in costs from $60,000 to several million dollars. Amazingly,repparttar 112091 most expensive IPO alternative isrepparttar 112092 most popular. While doing a reverse merger shouldn't cost your company more than $150,000 in out-of-pocket Due Diligence costs,repparttar 112093 expense of maintaining your shell float's share price will run into millions of dollars.

In a reverse merger,repparttar 112094 public shell insiders retain their shares. This means they have several million shares of your stock to sell. You are responsible for findingrepparttar 112095 public buyers of their stock and all future shareholders of your public company. Let's assume thatrepparttar 112096 reverse merger insiders have three million of your public company's shares. Your goal is to maintain a $4 share price. The previous shell owners will gross $12 million onrepparttar 112097 sale of their reverse merger shares. It should cost you $0.25/share to buyrepparttar 112098 past owners' shares. The past owners will take a three million-dollar bite out of your investor relations' budget.

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