Where Is The Best Place To Invest Money Today? Buying Investment Property (PART 3)

PREFACE:

In today's chaotic economy, whether it's verbalized or not, a main topic on investors' minds is: "Where can I find a legitimate high yield investment without a lot of risk to my principal?" Is this a fairy tale now or can investors still find good safe investments that earn solid returns? This series of articles provides answers to these questions.

In Part One of this series (see my blog below dated 2-27-09), we focused on "WHY" investors should consider buying investment property in the form of raw land development projects and "WHAT" makes them legitimate high yield investments. In Part Two (see my blog below dated 3-13-09), we explained "WHERE" to invest in investment property.

Today, in PART 3 of this series, we will focus on:

The Raw Land Development Process
Step-By-Step

STEP ONE: Professional Land Developers spend a great deal of time seeking what is called the "Path of Growth". They research economic and population projections and key factors such as job creation trends to identify geographic areas with favorable growth outlooks. Then, they drill down to the community and neighborhood levels to determine the directions of future growth and new construction. To do this expertly requires a seasoned research team and a network of external contact including local government officials, business leaders, real estate brokers, builders, etc. to conduct this 'due diligence' process and help locate possible raw, undeveloped land acquisitions situated in the identified path of growth.

STEP TWO: Once raw, undeveloped land is identified in the path of growth, the Land Developer will negotiate favorable terms for acquiring the property. There are a number of ways that land developers acquire property, the two most common are:

a) Purchasing the property upfront.

b) Obtaining an 'Option To Purchase' agreement: the land developer obtains the rights to buy the raw land by a set date at a set price by offering a non-refundable deposit.

NOTE: Investors are typically sought at this stage to help fund the acquisition of the property and cover costs associated with Steps Three - Five. These investors will become "silent partners" in the land development project. (Meaning: they will not be involved in the day to day management of the project.)

STEP THREE: Plans are drafted for a proposed future economic use of the land. (e.g. Master-planned communities, shopping centers, business parks, industrial complexes, etc.)

STEP FOUR: The proposed "future use plans" are submitted to the city, county, state and federal governments for necessary approvals. This is known as "The Entitlement Process" and involves all of the critical sign-offs and approvals required for the newly proposed use of the property.

NOTE: In this step, the Land Developer literally 'creates' value and this is why raw land development can be so profitable. It is this entitlement process that creates an average 300-500% increase in the value of raw land - often with limited associated costs for even higher profits!

The increased value of the newly "entitiled land" results from several important factors:

A. Obtaining the necessary government approvals to build on raw land requires time, experience, relationships and the ability to manage against competing intentions for the property.

B. The land developer makes formerly raw, undeveloped land available to builders and construction contractors in "ready-and-approved-to-build condition" -- often with turn-key access to utilities, municipal water and sewer, roadways, etc.

C. Fully approved or 'entitled' land is ready for immediate construction, giving builders and contractors the benefits of accelerated cash flow and returns.

All of these factors help make raw land development projects among the safest high yield money investments available today.

NOTE: A typical raw land development project will take anywhere from one to several years to complete. This all depends upon the size and complexity of the project, plus government approval time-lines.

STEP FIVE: After the raw land's value has been increased by the completion of the entitlement process and other improvements such as access to utilities, municipal water and sewer, roadways, etc. have been installed, the newly "entitled" property is sold to Building and Construction Contractors.

Result = average 300-500%+ increase in land value

Once the newly entitled land is sold,
the Raw Land Development Process ends.
Profits are realized and Investors are paid.


Finally, the Building Contractors take over.

After purchasing the land from the raw land developer, Building Contractors will begin to install the structures (e.g. homes, golf courses, retail shops, office buildings, industrial complexes, etc.) on the newly 'entitled' land. They will go on to sell the finished homes, offices, etc. to their customers - the end users (homeowners, businesses, etc.)

About the author:

John Hanlin is an Independent Investment Consultant specializing in low risk investments and retirement portfolio planning. He is a seasoned investor of over 25 years. Mr. Hanlin is the owner and contributing author of the website: www.JohnHanlin.com which provides detailed information about raw land development investments and free independent financial advice for retirement.

The Best Investment You'll Make In Your Lifetime

The headline says it all. It is heartfelt and sincere. If you miss this, I'm sorry. I don't know a better way to communicate to more people than the internet.

Here it is:

"We are RIGHT NOW faced with the greatest opportunity for financial gain that anyone in our lifetimes will ever experience."

To learn more:

Click here and sign up for this FREE Special Report.

How to Profit From the Foreclosure Landslide

Are you a licensed real estate agent or appraiser?

If so, you QUALIFY and are in a perfect position to reap tremendous profits from the current foreclosure debacle!

How?

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** EVERY foreclosure requires a BPO.
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Here is a BPO REO Business Kit that gives you all the tools, training and contacts you need to get started right away! A great resource at the right time and a great price.

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Where is the Best Place to Invest Money Right Now? Buying Investment Property (PART 2)

PREFACE:

In today's chaotic economy, whether it's verbalized or not, a main topic on investors' minds is: "Where can I find a legitimate high yield investment without a lot of risk to my principal?"

Is this a fairy tale now or can investors still find good safe investments that earn solid returns?

This series of articles provides answers to these questions.

In Part One of this series (see blog below dated 2-27-09), we focused on "WHY" investors should consider buying investment property in the form of raw land development projects and "WHAT" makes them legitimate high yield investments. In PART TWO, we will now discuss "WHERE" to invest in these opportunities:

In December of 2004, the acclaimed Washington D.C. think-tank, Brookings Institution, sponsored a research project by Virginia Tech University titled: "Toward A New Metropolis: The Opportunity To Rebuild America".

This study explains that in order to accommodate U.S. Census Bureau population growth projections, the United States' future raw land development needs will require 209 BILLION square feet of new community construction between 2000-2030. This massive expansion will take place primarily in 10 major metropolitan regions the study calls "Megapolitans" and at an estimated cost of $25 TRILLION.

Not only does this study underscore the fact that buying investment property is a legitimate high yield investment opportunity, it tells us WHERE to invest! This was well-documented in a November 2005 article by Paul Kaihla in Business 2.0 Magazine titled: "The $25 Trillion Land Grab".

Here is what the 10 Megapolitans are being called and WHERE investors should consider investing right now:

1. CASCADIA: Will encompass land from Seattle, WA to Portland, OR. Vast quantities of cheap, prime property give this Pacific Northwest megapolitan tremendous growth potential. By 2030, massive land development activity will have filled in the greenspace between these cities, making this one huge, intertwined metropolitan region.

2. NORCAL: Will encompass property from San Francisco to Sacramento plus the Central Valley of Northern California. There will be much more activity buying investment property east of the Bay Area, where there is much more reasonably priced raw land. The Sacramento region, in particular, is expected to build more housing and office space than any other Western area excepting Las Vegas.

3. THE SOUTHLAND: This megapolitan will include real estate ranging from Los Angeles in the north to San Diego in the south and through the "Inland Empire" to Las Vegas in the east. Surging trade with China through the nation's busiest seaport in L.A. will spur massive expansion in logistics, warehousing and distribution centers throughout the region.

4.VALLEY OF THE SUN: Will encompass land from Phoenix, AZ to Tuscon, AZ. This will be the smallest megapolitan, but also the one with the biggest amount of "buildable" land at the lowest prices. This is why it is expected to become the fastest-growing metropolitan region in the United States. The main attraction: Palm Springs resort lifestyle at a substantial discount.

5. I-35 CORRIDOR: Will entail land spanning San Antonio to Dallas to Kansas City. No region better captures and caters to the Latino population explosion. A new generation of Hispanic business owners and industrialists will drive the growth, and the area will become a magnet for foreign companies trying to cash in on the U.S. Latino market.

6.GULF COAST BELT: Will encompass real estate running from Houston to New Orleans. Surrounding megapolitans will enjoy spillover growth because of the region's higher risk premium punctuated by Hurricane Katrina.

7.GREAT LAKES HORSESHOE: This will encompass land from Chicago to Detroit to Pittsburgh. With manufacturing's decline in this region, these industrial cities are evolving into a "service industries" region and are expected to attract a flood of new people to this megapolitan.

8.ATLANTIC SEABOARD: Will include property from Boston to New York City to Washington D.C. America's most heavily populated megapolitan is set to experience another expansion. And most of the new development is expected to "vertical" with new skyscrapers providing much of the new construction. Expect more urban growth versus suburban in this region.

9. I-85 CORRIDOR: Will involve land ranging from Raleigh-Durham to Atlanta. The expanse running from Atlanta to Raleigh is becoming a contiguous strip of homes and businesses. As the textile industry fades, financial services in Charlotte, telecom in Atlanta, and high-tech in the Raleigh-Durham Research Triangle will drive future growth.

10.SOUTHERN FLORIDA: Will encompass land from Tampa through Miami. Florida posted the nation's highest job growth in 2004, as baby boomers from the North poured in to take advantage of the job market and climate. Land scarcity will also drive urban growth in this region.

BONUS: UTAH 'MINIPOLITAN': This is an add-on to the Brooking study markets. Key areas in Utah are experiencing tremendous population and job growth and need to be added to the list.

So, that summarizes "WHERE" investors should consider buying investment property (particularly: raw land development investments), as a "legitimate" high yield investment opportunity.

PART THREE of this series will focus on the PROCESS of Raw Land Development.
PART FOUR of this series will focus on HOW to invest in Raw Land Development projects..

About the author:

John Hanlin is an Independent Investment Consultant specializing in low risk investments and retirement portfolio planning. He is a seasoned investor of over 25 years. Mr. Hanlin is the owner and contributing author of the website: www.JohnHanlin.com which provides detailed information about raw land development investments and free independent financial advice for retirement.

Where is the Best Place to Invest Money Right Now? Buying Investment Property (PART 1)

[This is the first part of a new series]

In today's economy, most investors are asking this question:

"Where is the best place to invest money right now?"

This series of articles, starting today, will set out to answer that question. Specifically, the series will explain why and where savvy investors should be buying investment property (real estate) -- our recommendation for the best place to invest money right now. Furthermore, the series will explain why these investment properties should be in the form of raw land development investments.

First, some background:

It is widely held that more riches have been created by real estate than any other form of investment. Taking that one step further, raw land development is the most profitable form of real estate.

So, you can do the math: Where is the best place to invest money right now? Raw land development.

Can you think of a better time to purchase real estate than in a down market? The golden rule of investing is to always "buy low and sell high" right?

Here's WHY investors should consider buying investment property right now:

1. More millionaires have been made by investing in real estate that any other investment.

2. Raw land development is the most profitable form of real estate investment. Per industry average: professionally managed raw land development projects increase the value of undeveloped, raw land by 2-5 times its original price. (i.e. A professional raw land developer will sell their completed raw land development project for 200-500% more than they originally paid for the property. And it can be much higher.

3. In addition to being among the most profitable forms of investment, raw land development (professionally managed) can be one of the most secure, low risk investments an investor can make. This is because the raw land developer will typically back their investors' principal with the assets of their project (the property itself). In addition, they will place their investors in 1st position for project assets and revenue.

This means that in the event of a developer default on a raw land development project (heaven forbid), the land itself can be sold so that the investors can recoup part or all of their principal plus any net profits. Also, it means that the investors, being in 1st position, are first in line to be paid if project assets must be sold -- making this one of the most secured forms of investment available to investors.

4. Property prices are reasonable right now. Buying investment property in the form of undeveloped, raw land is a 'buyer's market' today.

This is because landowners aren't any different than other folks. They have been affected by the stock markets and the overall economy like everyone else. The net effect is that many are willing to sell their undeveloped land right now for very reasonable prices because they need the money.

As a result, raw land developers are in need of investors right now to help them acquire raw land at these 'bargain basement' prices.

5. The United States population is projected to grow +29% from 2000-2030. (U.S. Census Bureau) That means the addition of 82,000,000 new people in America. And these people are going to need new homes, new schools, new stores, new communities to support them.

Where are these new homes, schools, stores & communities going to come from? Raw land development.

Are you starting to see the answer to our question: Where is the best place to invest money right now?

Look for Part 2 of this series coming soon:

"Here's WHERE investors should consider buying investment property right now"

For FREE independent financial advice about safe investing and retirement, visit my website at: www.JohnHanlin.com. I specialize in the safest money investments and the best HIGH YIELD safe investments, particularly in raw land development. (Please fill out the Contact Form on my website if you have questions that the website couldn't answer.)

Best Investments For Your Future

Is retirement coming soon in your future? How prepared are you for this? What financial situation and lifestyle will that cast you into? Could you use some free independent financial advise to help get your retirement investments on track so that you can lead the lifestyle you've always dreamed of?

We have developed a "7-Step Retirement Action Plan" for investing in your future. One of the elements of this plan is to consider alternative investments for your retirement portfolio.

Real estate has proven time and again to be the single best growth investment worldwide. We suggest that investing in real estate can be either scary or it can be a "no brainer" depending upon how you go about the investment process and what form of real estate you invest in.

You've probably heard is said the real estate has created more millionaires than any other form of investment. To take that one step further: Raw Land Development is the most lucrative form of real estate. This is why many of the world's wealthiest investors have put their money in raw land development investments for generations.

"Raw land development is probably the most profitable and most secure form of investment that you NEVER heard of."

Raw land development is NOT the same thing as "land banking" or "raw land investing" which is where you would buy a piece of raw land, sit on it, do nothing to it, pray for appreciation and then hopefully sell it for a profit someday. That just ties up your money with an unknown return on investment. While land banking can be very profitable, we believe there are better and lower-risk investments for your hard-earned money.

Raw land development investments are where you invest as a "silent partner" with an experienced, professional land developer in a well-researched, raw land development project.

Silent partner investors share in the land developer's net profits. And, in addition, some professional developers will also pay you interest for the use of your money until the principal is returned to you.

After a lot of due diligence and research, a professional land developer will acquire raw, undeveloped land in the path of future community growth. Then, they obtain governmental approvals for rezoning and preparing the property to build upon. Finally, they sell the newly "improved" or ready-to-build land to building contractors and construction companies. This land could be used by the builders for any number of purposes: residential projects, shopping malls, industrial complexes, business parks, government offices, schools, golf courses, etc.

NOTE: The raw land development process may sound simple in concept. However, the process can involve in excess of 100 governmental entitlements (approvals) that must be completed and can take months or even years, depending upon the size and complexity of the project. This is why we recommend investing with an experienced, professional land developer versus doing it on your own.

** The industry average for a professionally managed, raw land development project is a 300-500% increase in value. In other words, the land developer will sell the newly "improved" land to building contractors and construction companies for 3-5 times what they originally paid for the raw land. **

So, that explains why raw land development can be so profitable. Now let's discuss "investment safety".

The professional land developers that we invest with always put their silent partner investors in "first position" for the raw land development projects' assets and revenue, meaning that the investors get paid first. In addition, the investors' principal is asset-secured (also termed: asset-backed). This means that in the event of a default situation by the land developer (heaven forbid), the land and other project assets can be sold and the investors can recoup all or part of their investment (plus any potential profit).

This is safety and security that investors rarely find outside of real estate. Consider the stock market for example: if the value of your shares drops to zero, what is left? No recourse and no security. This is why we consider professionally managed raw land development to be the best high yield safe investments available today.

And, we can show you different ways to invest in raw land development: from how to find the right projects; to how to use your 401k and/or IRA funds to invest.

"What is the best investment for my money?" We all ask that question and very few of us actually know what the answer is. Our website gives you that answer and also gives you the opportunity to do it now to help you prepare for a comfortable, secure retirement.

There are many options today for investing your money, including a lot of "get rich quick schemes". That is not what investing in Raw Land Development is about. This is an investment that has been around for many generations. It is a proven process and a huge industry. However, even in this business there are companies that either don't know what they are doing or are just after your money. So, of course, you need to thoroughly check them out before investing. That is where we can help.

We believe that everyone should have the opportunity for a bright and beautiful future with financial security in their retirement investments.

Eventually, we all grow old and need to plan for retirement. It does not need to be stressful nor does it have to be difficult. However, it does need to happen now with you making the decision to take control of retirement future. That is why our "7 Step Retirement Action Plan" was developed: to provide a practical process that you can follow to achieve financial security and live the lifestyle that you've always dreamed of for your own retirement.

For FREE independent financial advice about safe investing and retirement, visit my website at: www.JohnHanlin.com. I specialize in the safest money investments and the best HIGH YIELD safe investments, particularly in raw land development. (Please fill out the Contact Form on my website if you have questions that the website couldn't answer.)

Smart Money: Safe Investing for a Secure Future

You can secure your family's future financial security by making smart money investments today. With the help of an experienced professional, you can learn about the best high yield safe investments available in today's marketplace.

As we get started, let's clarify one fact: there is no such thing as a completely "safe" investment.

There are, however, some very good "low risk" investments -- but the industry still tends to still refer to them as "safe" investments. So, when reading this blog or any article or advertisement about investing, please keep this in mind.

"Safe" investing in asset-secured, high yield investments is the key to a profitable and financially stress-free future. Imagine not having to worry about the financial security of your loved ones or yourself after you retire. Maybe you are ready now to begin living a life that is free from financial worries. Well, there is no need to wait. Take advantage of the experience and guidance of an investment professional who is ready and willing to help - at no cost to you. That's right! FREE independent financial advice for your retirement!

You have a multitude of choices about where to invest your money and it can be both confusing and intimidating. Your options include 'traditional investments' like stocks, bonds and mutual funds. PLUS, many other 'alternative investments' that you may not be familiar with, such as a professionally managed raw land developments, other types of land investments, apartment buildings, precious metals, commodities, etc.

By seeking the advice of an investment expert, you can explore these new opportunities, get all of your questions answered, and find the best and safest money investments that are most suited to help you achieve your financial goals.

For example, you can learn why raw land developments have, for generations, been cornerstone investments for many of the world's wealthiest investors. And, why YOU should consider investing in these assets for your own portfolio.

A professional can explain the raw land development process step-by-step; help you identify the best land developers to invest with; tell you where to find the top growth markets for land development; and even show you how you can use your IRA to to invest in real estate opportunities like these!

You'll rest easier knowing that you are investing your money with the guidance of someone who has the training and experience you need to help you find the best high yield safe investments that fit your personal goals and life situation.

You CAN still achieve financial security, even in today's volatile economy, by investing in secure, high yielding investments. And, you CAN feel confident that you are providing for your family's financial security in the years to come by investing with the guidance of an experienced professional.

For FREE independent financial advice about safe investing and retirement, visit my website at: www.JohnHanlin.com. I specialize in the safest money investments and the best HIGH YIELD safe investments, particularly in raw land development. (Please fill out the Contact Form on my website if you have questions that the website couldn't answer.)

HERE'S AN ADDED BONUS: "How To Earn Double-Digit Returns"

P.S. I have launched a new blog site named: "Raw Land Development Investment". Check it out for more information about what I consider to be the #1 safest, high yield investment available today!

How To Earn Double-Digits Returns

I recently wrote an article for eHow.com titled "How To Earn Double-Digit Returns".

If you are tired of earning sub-inflation interest rates on your money (or worse - losing it!) this article could be for you. You could be a earning double-digit returns with asset-backed investments if you know where to look!

Please click on the article title in parentheses above to view the article.

Reuters News Article: "U.S. Housing Market Bottom Within Sight"

On February 5, 2009, Reuters published a news article by Julie Haviv titled:

"U.S. Housing Market Bottom Within Sight"

The article cites a report generated by Moody's Economy.com titled "Housing In Crisis: When Will Metro Markets Recover?" - an analysis that has been cited by top advisers in the Obama administration in relation the the U.S. economic stimulus package.

Here are a few of the key points in the Reuters article:

• A bottom is within sight, likely in the 4th quarter of 2009 nationally.
• An improvement could portend a turnaround for the U.S. economy & help stop losses at U.S. banks.
• Positive signs: inventories are flattening, prices are more reasonable & sales are nearing stability.
• From peak to trough, total U.S. home sales will have dropped by 40% & housing starts by 70%.
• The outlook assumes action by U.S. policymakers with regard to the economic stimulus package.

To view the Reuters article, click on the article title in italics above.

New Blog: "Safest Money Investments"

Hi all!

I have launched a new blog named "Safest Money Investments".

Here's a summary of this new blog's focus:

This blog is dedicated to answering questions that I regularly see from people wanting to know where they can find: "the best low risk investments in today's economy". These questions range from: "What are the safest money investments available?" to "What are the best high yield safe investments?" -- but they all involve the central themes of low risk and asset security for safe investing. This is truly free independent financial and investment advice.

Click on this link to check it out: Safest Money Investments

More to come....

Retirement Wiz

My Retirement Action Plan

Can YOU Afford To Retire?

It's a fact today that a growing number of people simply cannot afford to retire.

*One-third of Americans over 50 aren't confident that they will have enough money to retire, and over two-thirds expect to have to keep working well into old age. Despite making good incomes, many people live paycheck to paycheck and see their IRA and 401K funds either not growing fast enough or even shrinking with the stock market. Plus, they're concerned about whether Social Security's going to be around when they hope to retire. (*Source: TransAmerica SecurePlan March 12, 2008)

I was one of these statistics and decided to do something about it. I've spent several years studying and researching virtually everything I can get my hands on about investing: books, tapes, CD's, DVD's, seminars, webinars, workshops, investor's clubs, you name it!

Here's what I learned from all of this:

My IRA and 401K funds didn't even offer some of the most lucrative investment alternatives available!

1) Approximately 97% of IRA and 401K funds in the United States are limited to "Traditional Investments" which are primarily stocks, bonds and mutual funds.

2) Most Fund Managers and Financial Advisors are NOT going to tell you about "Alternative Investments" outside of their own investment offerings because they don't earn a commission for doing so.

As a result, people like you and me are kept in the dark about valuable investment alternatives that could help us achieve our retirement goals. Furthermore, because of this restriction imposed by our own 'trusted' financial fund managers and advisers, most people are not properly diversified and therefore, at risk in the event of a severe stock market downturn.

What You Can Do About It

I've spent years perfecting a "Retirement Action Plan" to achieve my own financial goals. Now I'm on a mission to educate others and help them toward their retirement goals using what I've learned and implemented for myself.

MY RETIREMENT ACTION PLAN

1) Take control of your investments and responsibility for your retirement: Essentially this means making a promise to yourself to be responsible for your future and not simply rely on others to do this for you.

2) Establish specific financial goals for your retirement: You'll need to ask yourself critical questions to determine how much it will cost you to live during retirement and how much money you'll need to have in your portfolio to support you. (e.g. How long do I expect to live in retirement? Where do I expect to live? What type of lifestyle do I want to lead?)

NOTE: Many people will find that they do not have sufficient funds to support their retirement goals. Don't panic! This is exactly where I was too. The following steps will help you learn how to close the gap between what you have and what you need to achieve your goals.

3) Start educating yourself about your existing investments and finances: Congratulations! You've already started by visiting this blog. First, get organized. Itemize each of your investments and assets - review past performance of each. Become familiar with investment terminology and alternatives.

4) Research "Alternative Investments" and how to truly diversify & protect your portfolio. **(See page bottom for information on Alternative Investments)

5) Consider converting your Traditional IRA to a "Self-Directed IRA" account. This will allow you to invest your IRA funds in a whole new spectrum of Alternative Investments that were previously not available to you.

6) Consider new investments (in both Traditional and Alternative Investments) that will help you achieve your retirement goals. There's an old saying: "If you keep on doin' what you've always done, you're gonna keep gettin' what you've always got!" There's truth in this. If there is a gap between what you have saved today and what you'll need to retire, changes have to be made.

7) Make the changes in your portfolio, stay involved and keep studying alternatives! This isn't a one-time deal, you need to stay close to your investments and adjust as needed. (Remember the promise you made to yourself to take control of your future in Step 1.)

Alternative Investments

Approximately 97% of all U.S. IRA and 401K portfolios are entirely invested in Traditional Assets (e.g. stocks, mutual funds & bonds) with similar price movements. As a result, these portfolios are at extreme risk in the event of a market downturn, which, if severe enough could wipe out people's lifetime savings and set them back many years in their plans and dreams for retirement.

Much more consideration, therefore, needs to be given to including assets with dissimilar price movements, which we call "Non-Traditional or Alternative Assets" to hedge against market risk. What are they?

Here are a few examples:

-Land Development Projects (my personal favorite)
-Commercial & Residential Real Estate
-Precious Metals (gold, silver, platinum, etc.)
-Gemstones (diamonds, rubies, etc.)
-Commodities
-Oil & Gas
-Tax Liens & Tax Lien Certificates
-Trust Deeds
-Tenancy In Common Properties (TIC's)
-Real Estate Investment Trusts (REIT's)
-Timberland
-Fishing Rights
-Etc.

All investors should seriously consider incorporating some of these into their portfolios if they want to be 'Truly' Diversified and protected when the market winds shift. But be sure to do your homework first.

I really encourage you to embrace this action plan - it can put you on track for a secure retirement.

To learn more, click on the picture below:

Until next time! Retirement Wiz (you can email me at Johnha7@yahoo.com)

If The Stock Market Crashed Would You Be Wiped Out?

Click on the Arrow to play Video

Duration: approx. 14 minutes

Link to Video Author's website: www.JohnHanlin.com

Until next time! Retirement Wiz (you can always email me at: Johnha7@yahoo.com)

The 5 Secrets Of Success

"There are five key traits that all successful people share. What separates the average or unsuccessful people from those who achieve great success can be attributed to several key differences."

Good News!

If you were to watch of movie of people's lives, these five characteristics would be illuminated in their successes or failures - over and over again. For some, these traits come naturally. For others, they may take years to learn, or they may never learn them at all - without coaching.The good news is that these traits CAN be learned. And, it's a proven fact that by embracing them and making these five characteristics a part of your 'being', you WILL achieve success in your personal life. These key traits are relevant for success in relationships, business, investing.... you name it.

Secret #1: "No" Usually Means "I Don't Get It"

Whether you're trying to convince someone to vote for you or you're trying to sell them a fishing rod - it's critical that the potential buyer clearly understands what you're offering. More importantly, it's imperative that you understand their needs, desires and problems in order to give them what they want. You can't solve a problem if you don't know what it is.

Typically, when someone doesn't understand what they're being offered or told, it's because they don't have the necessary information on which to base a decision. So, their natural response is to say "no" to the offer. This is because many people don't want to admit: "I don't get it" and appear foolish or unintelligent. So, to avoid embarrassment, they will simply reject the proposal or offer.

Successful individuals realize that "no" is often a natural response to confusion or missing information. So, they make it their mission to provide the listener with all of the necessary information, in a form they can understand, in order to make an educated and, usually, a positive decision.

Secret #2: You Can't Read People's Minds

Your thoughts control your results. Many people are held back or unsuccessful in certain aspects of their lives because they make assumptions or believe things to be true without actual proof. This often happens subconsciously.

These assumptions can limit a person's recognition of tremendous opportunities that surround them every day. This affects the choices they make, the actions they take, and can severely limit the success that they attain.

Example: A gentleman is interested in a lady friend and would like to ask her out to dinner. However, he repeatedly passes up opportunities to do so, because he feels that she will decline. Perhaps he has experienced rejection in his past. But now, he is assuming that this lady and perhaps 'all' ladies will react the same way to his invitation. He's afraid of risking embarrassment and what others might think about him. So, to protect his self-esteem, he does nothing, without ever knowing the true end result.

Successful people realize that just because one outcome occurred in the past, doesn't mean that it is the only outcome that can occur forever into the future. They recognize that they can't read other people's minds and so, they proceed toward their goals accordingly.

Secret #3: Ideas Are Worthless Without Motivation & Action

Have you ever had a great idea about an invention or concept that really seemed to make perfect sense? It's a pretty common occurrence. I'll use my son's idea from about 10 or 12 years ago as an example. He said: "Daddy, why don't people's houses have clickers like your car?" What he meant was: "Why don't we have the same technology to open the front door of our home as our car does with the keychain 'thingey'?"

Guess what? That was a genius idea for any age group! And, I'm not boasting here (OK, maybe a little), but come on - a nine year-old with a life-altering idea! (More to come on this is a later edition - maybe.) Most of us have had situations like this where we said: "I thought of that!". But, did you take action? Well, the successful people among us DO take action. (FYI: keep me posted if you see anyone with a front door clicker on their keychain.)

Important note: most successful people often fail several times before they achieve success. in fact, they usually fail at least 3-5 times before they land on a winner. Now, how you & I define "success" is going to vary greatly, but the philosophy of achieving "success" will not, it's the same 5 traits I'm explaining here.

"Momentum"

Let's go back to my own son's idea. Let's assume I think his was a 'big idea'. So, it started with an idea. Next, came 'the dream' or 'visualization of the outcome'. Now, parlay that image into your own mind. Do you have an idea or invention you've been mulling over?

These are critical questions that you need to ask yourself in the 'motivation' stage of taking action. To achieve success, you have to ask yourself at this point: "How far am I willing and able to go?". Do you know? Can you visualize what great opportunities are ahead of you if you just take one more baby-step towards attaining your dream?

Here's the key, one more time! MOMENTUM

It only requires one baby-step: "Just get the sled moving up the incline."

What successful people realize is 'gravity'. "Once you crest the top of the incline, momentum will take effect and your sled will glide."

I'm not judgmental in any capacity, but the following quotation will follow me to my end: "If you have faith, nothing shall be impossible unto you."

Secret #4: Focus On Positive Thoughts Not Negative Ones

If you watch or read the news it's usually pretty negative - because it sells. And on a personal level, it's much easier to fall into a negative emotional trap of fear, doubt and low self esteem than it is for optimism, belief in one's self and confidence.

Have you ever heard the saying "be careful what you wish for, you'll surely get it"? This is another way of describing a 'self-fulfilling prophecy'. This simply means, what you think about is actually subconscious goal-setting. If you think about negative things, some of those things are likely to occur. On the other hand, think about positive things and some of those are likely to occur as well. Don't take my word for it, many research studies have been conducted to confirm this.

Successful people recognize the power of positive thinking. They form a mental image of the outcome they desire. Their mind then begins to formulate and construct ideas and plans to obtain that outcome. It ties closely with MOMENTUM in Secret #3. Does this mean that successful people never consider problems? Of course not, however, they do this differently than most people -- they are not focusing on these problems, they are looking for roadblocks they might have to avoid to achieve their desired outcome. They "hope for the best and plan for the worst". They don't let negative thoughts control them and throw them off target. Instead, they use what they think about as tools in achieving their goals by thinking positively.

Secret #5: Success Is In Attention To Details

One of the things that sets successful people apart is that they pay close attention to details. They make sure that the details are taken care of because this can be the difference between success and failure. Whether you're running a business or running a triathlon, a tiny adjustment somewhere within the race can make the difference between winning and losing.

Until next time! Retirement Wiz. Email me anytime: johnha7@yahoo.com

FREE retirement fun stuff: ebooks, jokes, quotes, speeches, poems, gifts & more!

With today's blog, I thought I'd offer up some fun and interesting links and freebies that I've come across recently. So -- please review, download, and enjoy!

I'll start with a FREE ebook download that includes the preface and 1st chapter from a bestseller titled "The Joy of Not Working", by Ernie J. Zelinski. This is not only a fun read, but great advice about living happy. Click on the book image link below:


Here's a couple of excerpts from the book:

"Whether you are retired, unemployed, or working, you can use "The Joy of Not Working" as a practical and reliable guide to create a paradise away from the workplace. Because all of us need reminders from time to time about the obvious and the not-so-obvious, we can all use a handy guide on how to enjoy life more." -- Ernie Zelinski

"My father taught me to work, but not to love it. I never did like to work, and I don’t deny it. I’d rather read, tell stories, crack jokes, talk, laugh - anything but work." —Abraham Lincoln


The next item of interest is another FREE ebook download by Ernie Zelinski titled "101 Really Important Things You Already Know, But Keep Forgetting". I really enjoy this book. It's a compilation of truly valuable life lessons that you may already have learned and forgotten, plus some others that you may not have encountered -- yet. The free ebook includes 15 of the 101 'important things' that are included in the complete book that you can purchase from the Amazon.com "I Recommend" box on the right border of this page. To download your free ebook, click on the book image link below:

Here's another fun one from Mr. Zelinski. Click on the book image link below for your FREE ebook download of "Graffiti for the Employee's Soul":

The next FREE ebook "The 437 Best Things Ever Said About Retirement" is chock-full of funny & interesting quotes and sayings that are great for retirement dinners or just to keep your conversations lively. A lot of fun! Click on the book image link below to download a free copy of this ebook:

Click on the image link below to enter the "Retirement Cafe" website which offers a FREE Collection of Retirement Jokes, Speeches, Retirement Letters, and Poems:

Need retirement gifts or supplies for a retirement party? Click on the image link below for great party ideas and supplies, plus retirement jokes, shirts, poems, and other retirement gifts. (Note: these products are NOT free, but I think this is the best resource of its kind anywhere):



Well, that's about it for today. I hope you enjoy these resources. -- Retirement Wiz

Email me anytime at: johnha7@yahoo.com

Enjoy high yields & low risk with Trust Deed Notes

A few months ago, I was in a bank lobby that provided little or no privacy for the people that were conducting their business with the tellers. I couldn't help but overhear a conversation taking place with a couple probably in their early 60's. They were trying to figure out how they could put more money into the bank under the FDIC's $100,000 insurance - by opening separate accounts, opening accounts in the name of their trusts, children, grandchildren, etc. And it really saddened me. You might wonder why?

Well, it's because the interest rate that they were going to be earning on their money was MAYBE keeping up with inflation. In other words, they weren't growing their money. And it saddened because there are alternative investments that they could be putting their money into that earn far greater returns with low risk and high security!

Let's take a look at what banks and other lending institutions are paying today - these are national overnight averages from BankRate.com:

2.38% Money Market Accounts
2.89% 6-month Certificate of Deposit (CD)
3.27% 12-month CD
3.86% 5-year CD

Click on the link below to check out today's rates for yourself:

BankRate.com

Again, these are national averages, so you can find some banks with higher rates around the country. For example, I know of one bank that is offering 3.9% on its Savings Accounts right now. Regardless, we're still talking about interest rates that are barely keeping up with inflation if we're lucky. And, I'll step out on a limb and say that they are NOT keeping up with inflation because of the way that the government calculates and reports it. (We've been quoted 3% inflation since the price of gas was well under $2.00 a gallon. Who still believes that inflation is 3% now that the price of gas is approaching $5.00 a gallon??)

So, let's take a look at one Alternative Investment that can earn much higher yields with low risk:

TRUST DEED INVESTMENTS

There are many investors that only invest in this one asset type and consistently make a steady 9-12% annual return. But there are many more investors who have never even heard of Trust Deeds, let alone know how to invest in them.

Basically, investing in Trust Deeds involves your becoming a lender to a homeowner or a builder. For the purposes of this blog, I'm going to narrow it down to lending to homeowners.

Now, as a Trust Deed lender, you can either 'create' a Trust Deed loan directly with a borrower yourself (usually with an attorney's assistance) or more commonly, you can purchase an existing Trust Deed loan from a Mortgage Loan Broker (aka 'Hard Money Lender').

Many homeowners are unable to obtain loans from banks or other large financial institutions due to various reasons: low credit scores, gaps in employment, etc. However, they may have a very immediate need for the money. This is where 'Hard Money Lenders' come in. These are typically smaller local businesses with money to lend. They are much more flexible than the large financial institutions, can react very quickly, but charge significantly higher interest rates for the use of their funds.

The typical Hard Money Lender doesn't intend to hold onto most of the loans or Trust Deeds that they initiate. Instead, they seek to sell these loans to individuals, institutions, trusts, etc. They make their money by charging loan fees and points in the initiation and resale processes.

Before I get too far along, let me explain WHY you should consider doing this with some personal examples: I own several Trust Deed loans in California. The interest rates I earn on these loans range from 12% to 16.99% and I get paid every month on these loans by my borrowers. And I've turned downed Trust Deeds as high as 18.99%.

You might be saying "there's no way!". Quite the contrary my friends. In fact, these interest rates are very common in the "Hard Money Lending" business, which you are going to learn about shortly - and they are completely legal. I won't go into "usury law" in this blog because the laws vary by state, but I will be happy to speak with you about it if you care to send me an email with a question. (My email address is: Johnha7@yahoo.com)

Now, I'd like explain more on what Trust Deeds are and why they can be very secure investments. Then, we'll discuss what determines their value and then, how you can invest in Trust Deeds.

The Trust Deeds we'll discuss in this blog are related to real estate. When someone purchases a home, they commonly take out a loan (mortgage) to acquire the property. Loans against real estate have two components:

1. The Trust Deed (aka Mortgage or Deed of Trust): this legal document pledges the property to the lender as security in case of a default or non-payment by the borrower.

2. The Promissory Note: this legal document specifies the payment terms of the Trust Deed, including the amount of the loan, monthly payment amount, payment due dates, interest rate, term of the loan (# of months), and penalties in the event of late payments or default. This is essentially, the borrower's promise to repay the loan amount plus interest.



Now, there are many situations when an existing homeowner needs money and their only significant asset is their home. It may be for a 'hot' new investment asset, a remodel of their home, a family or medical emergency, etc. So, they might seek to take out a 'Home Equity Loan'. There can take various forms, but I'll focus on the following:

* First Trust Deeds: if the homeowner/borrower has no current mortgage on their property (they own it free and clear) and they took out a Home Equity Loan, it would be considered a First Trust Deed. This means that in the event of a default or failure to pay and subsequent foreclosure, this loan would be paid off before any others. (As noted above, the Trust Deed pledges the property as security in the event of a default.)

* Second, Third, Fourth.... Trust Deeds: if the homeowner/borrower does have a current mortgage (this would be their First Trust Deed) and they have a good amount of equity in their property (their home is worth more that they owe on their mortgage) -- they might take out another loan(s) against their remaining equity in the property.

These 2nd, 3rd, 4th.... Trust Deeds, however, are named as such because it identifies their 'lien position' in the event of a default. Sometimes, as we're experiencing in a number of U.S. markets today, the property values can go way down and the equity that was borrowed against virtually disappears. In the event of a foreclosure and subsequent resale of the property, whatever funds are obtained from the sale are paid out in order of priority: First Trust Deed gets paid off first and if any money is left over, then the Second Trust Deed gets paid, etc. Unfortunately, there may not be enough funds to repay even all of the First Trust Deed off. In this case, the 2nd, 3rd, 4th Trust Deeds, etc. don't receive anything. That's right, they're out of luck!

So, what's the lesson here? Well, like any investment, you need to do your homework and research before you invest in a Trust Deed. My definition of risky investments are those that are made in the dark.

Now please don't let this scare you off. Here's why - there are:

Five Simple Ways To Reduce Risk For Trust Deed Investments

1. Make sure any Hard Money Lender that you will be purchasing your Trust Deeds from is reputable and experienced. Check them out. We'll discuss how to do this a little later.

2. Review the property appraisal and title (this will determine if the borrower has equity and if the property has clear title with no other liens or complications). Is the appraisal current? Who did it? You want an independent 3rd party doing these. Some investors will have their own appraisals done. Make sure that there is title insurance! This is added SECURITY you don't want to invest without.

3. Research the market value of the property and trends. Is the real estate market stable? What have comparable homes in the immediate area sold for recently?

4. Give yourself a 'cushion' between the amount of the loan and the value of the home which you researched in steps 2-3 above. This is called Loan To Value (LTV). It's calculated as follows:

Amount of Loan divided by Market or Appraised Value = Loan To Value

A good LTV is my opinion is under 70%. This means that if a home is valued at $100,000 - then I will loan no more than $70,000 on it. Why?

Well, if the borrower defaults on their loan and I foreclose, I could take possession of the property valued at $100,000 for which I only have $70,000 invested in the loan. It's now mine and I have an automatic $30,000 in equity if I can sell it for the market value of $100,000 AND I would get my original investment back!

There are two big benefits here:

* Potential for additional profits: The 'cushion' of the 70% LTV means there is potential for additional profits in the event of a default and foreclosure. (In the example above, it was an additional $30,000 of profit that I didn't originally plan on.) This isn't ever my intended outcome, but it's nice to have the added security and cash.

* Added SECURITY: In the event that the real estate market were to depreciate like it's doing in many areas today, with my 'cushion' provided by the 70% LTV -- the value of the property can decline by as much as 30% and I'll still be protected and able to get my original investment back if there's a foreclosure.

IMPORTANT: In a situation where the borrower already has a First Trust Deed on the home and they are seeking a Second Trust Deed, I still stick to my 70% LTV model. If the COMBINED loan amount (1st + 2nd Trust Deeds) is under 70% LTV, I would loan the money. In other words, if the home is worth $100,000 and the 1st Trust Deed balance owed is $50,000, I would loan up to $20,000 for a 2nd Trust Deed. This would add up to a total amount borrowed of $70,000, which is within my 70% LTV guideline.

5. Research the borrower's ability to pay. Check employment, credit scores and payment history where possible. Honestly though, if I get a really good LTV, say 60%, I'm not concerned about this. Why? Because, if the borrower defaults and I foreclose, I get the property at 60 cents on the dollar.

If you follow the five steps above, you will virtually eliminate the risk from your Trust Deed investment.

Factors That Determine The Value Of Trust Deeds

All of the following factors needs to be considered together when investing in Trust Deeds. In other words, you should look at everything before you decide to lend money - not just one factor by itself.

* Loan-To-Value: as explained above, this is the relationship between the amount borrowed and the valuation of the property. I stay below 70% LTV. A Trust Deed at this LTV is more valuable than one at 80% because it has less risk (more 'cushion'). Trust Deeds with higher LTV's will commonly pay a higher interest rate to compensate for the greater risk level.

* Interest Rate: obviously, a Trust Deed with an interest rate of 12% is more valuable than one with 9%.

* The Loan Term: this is the period of time in which the debt has to be paid off. Most investors like to get their money back quickly. So, Trust Deeds with shorter terms are more valuable than those with longer terms.

* The Borrower: the creditworthiness of the person borrowing the money is another factor. Trust Deeds for borrowers with sound employment, high credit scores and good payment histories are more valuable than those with lesser credentials.

OK, we now know what a Trust Deed is; how to reduce risk when investing in Trust Deeds; and the factors that create value in a Trust Deed investment. Next, we're going to look at:

How To Invest In Trust Deeds

There are two ways to invest in or acquire Trust Deed investments:

1) By lending the money directly to another party and creating a new Trust Deed yourself.
2) By purchasing an existing Trust Deed from a Hard Money Lender.

We are going to focus on # 2 above:

Key Steps For Purchasing An Existing Trust Deed:

A) First, you must locate a reputable, experienced "Hard Money Lender" (aka Mortgage Loan Broker). There are a number of ways to find these companies - I typically look in the classified ads of my local newspaper under 'real estate', 'business opportunities', or 'money to loan'. Other good ways are to search the internet for 'hard money lenders' in your area and to consult with friends or business associates who may have experience with Trust Deeds already.

I recommend that before you invest any money with a Hard Money Lender, that you meet and interview them - ask for a professional profile, background, experience, etc. Then check them out with your State Dept. of Real Estate and Better Business Bureau. Most states also have Mortgage Loan Associations that you can research.

B) Once you've identified a qualified Hard Money Lender, you'll want to review the existing Trust Deed Loans that they currently hold and are offering to sell. (By purchasing the Trust Deed from the Hard Money Lender, you are actually becoming the new Lender on the property associated with this loan.) A good Hard Money Lender will have the critical information you need to use for 'sifting' through the offerings and narrowing them down to a short list for further, more detailed research and due diligence by you. This critical information should include:

* Property information: description, location, photos, etc.
* Loan amount
* Loan position (1st, 2nd, 3rd, 4th Trust Deed, etc.)
* Other loans on the property
* Total combined LTV (all loans)
* Appraisal
* Market comparable sales
* Interest rate
* Term of loan
* Title information
* Borrower information: credit score, employment, etc.
* Etc.

With this information, you should be able to identify a couple of Trust Deeds that might fit your requirements. From here, you may want to take these and dig even deeper, perhaps visiting the property, driving the neighborhood, talking to realtors about the area, researching market trends, etc.

C) Assuming you've found a Trust Deed that fits the bill, you will start the Escrow process. Your Hard Money Lender will lead you through the process and serve as middleman to get the property assigned to you as the new lender of record. I always recommend communicating directly with the borrower via letter/email and telephone to establish a good working relationship with them.

D) Finally, you'll need to start getting paid! Some Hard Money Lenders provide the administrative duties of processing payments for you. Others do not and you'll have to determine whether you want to handle those chores yourself or farm it out to a third party note processor. Personally, I use a third party service called The Note Servicing Center. They're national and very good at what they do. In fact, they are located very near my old hometown in Midpines, CA. Click on the image link below to check them out:


Well, I hope that this information inspires you to explore Trust Deed investing further. If you go about it the right way and do your homework, these investments can help to truly diversify your portfolio and add stable, high yielding assets with low risk. And please, don't rely on CD's as your primary investment strategy! There's too many great options available and Trust Deed loans are just one of them.

Until next time, I am the Retirement Wiz! (email me anytime at: Johnha7@yahoo.com)

If the market crashed would you be wiped out?

Many people would be wiped out if the stock market were to crash today. Not me. I'll tell you why in a minute.......

Here's another question: Is your retirement portfolio diversified?

Most people would say YES. And I'm gonna say that they really are not. Why? Read on.......

The American Heritage Dictionary defines the word "DIVERSIFY" as follows:

1.a. To give variety to; vary.
1.b. To extend (business activities) into disparate fields.
2. To distribute (investments) among several companies in order to average the risk of loss. To spread out activities or investments, especially in business.

"Approximately 96% of U.S. retirement portfolios are limited to 'traditional' market investments. As a result, retirement portfolios are very vulnerable to market risk, which, if dramatic, can wipe out an individual's lifetime savings." (Source: PENSCO Trust Company, April 25, 2008).

What the heck does all this mean?

It means that "many people think that their portfolios are diversified but they really don't have a clue".

Now this may sound harsh at first blush, but if you can grasp the concept below, it can be life changing and protect you from financial disaster. And, it's the reason I said at the start that I wouldn't be wiped out if the stock market crashed today.

"TRUE DIVERSIFICATION"

"True Diversification is a means to increase your expected rate of return and at the same time, reduce your portfolio volatility and risk."

Does this sound improbable or impossible? Allow me to introduce you to:

'Modern Portfolio Theory' (MPT)

Modern Portfolio Theory is a sophisticated, yet simple to execute, investment approach first developed by Professor Harry Markowitz of the University of Chicago in 1952. In 1990, he received a Nobel Prize in Economics for MPT, which has become the framework upon which many institutions such as Harvard and Yale universities' endowment funds and savvy investors construct their investment portfolios.

It was Markowitz's position that portfolio risk could be reduced and the expected rate of return increased, when assets of dissimilar price movements were combined. "A diversified portfolio, of uncorrelated asset classes (or 'Alternative Assets'), can provide the highest returns with the least amount of volatility or risk."

"Many investors are under the delusion that their portfolios are adequately diversified if they are invested in various individual stocks, mutual funds, bonds, and international stocks." While these are different investments, they are still in the same general asset class, with similar price movements and generally move in concert with each other. For proof, take a look at what happened in the last market crashes. "TRUE diversification’ according to MPT, is in ‘uncorrelated and Alternative Asset Classes’ that move independently from one another."

So, now I'm going to repeat myself:

Approximately 96% of U.S. retirement portfolios are limited to 'traditional' market investments, and although the inclusion of 'Alternative Assets' is increasing, it has a long way to go. And as a result, retirement portfolios are very vulnerable to market risk, which, if dramatic, can wipe out an individual's lifetime savings. More consideration therefore, needs to be given to 'True Diversification' and incorporating Alternative Assets and non-correlated asset classes into retirement portfolios to hedge against market risk.

Are you "Truly Diversified"? Here are some Alternative Assets/non-correlated asset classes that you might consider including in your own retirement portfolio to provide that 'hedge' against market risk:

Alternative Asset Examples

• Land development projects (my personal favorite)
• Raw land
• Commercial & residential real estate
• Tenancy in common investments (TIC's)
• Real estate investment trusts (REIT's)
• Trust deeds
• Tax liens & tax lien certificates
• Precious metals (gold, silver, platinum)
• Gemstones
• Commodities/futures
• Oil & gas
• Hedge funds
• Private equity
• etc.

I believe the pick of the litter is Land Development because it has outstanding returns and is secured by the land itself. For more information, click on the image link below:

Hopefully, you'll take this information to heart and do something with it. I did and I sleep a lot better at night. Now, you may be saying "but I can't do anything, my retirement money is tied up in my IRA or 401K". Well, guess again. You absolutely can use those funds to invest in Alternative Assets. Check out my Blog dated March 4, 2008, titled "How to take control of your IRA & 401K investments". It will explain the easy steps to do this & there's a FREE information guide you can download there to explain everything.


To your retirement portfolio health! Until next time!

- Retirement Wiz. (email me anytime at:johnha7@yahoo.com)