How to earn $20.00 for every $1.00 invested
It has been said that you can lift the Rock of Gibraltar if you have a foothold and a long enough lever. When we refer to “financial leverage” we are talking about the same principle. If you buy a commercial building for $100,000 with a $5,000 down payment, you are using 20-to-1 leverage. For only 1/20th of the purchase price, you actually own and control property that is 20 times more valuable than your home. cash investment.
If the income from the building is just enough to make the payments and expenses and you don’t get any cash flow, you are still paying for the building and maybe in 5 years or so, with inflation continuing, you can sell the building. for $200,000…a profit of $95,000 on a $5,000 investment. This is the potential result of proper use of leverage.
A good rule of thumb to follow when applying leverage, relevant to any trading venture, is to always provide a reserve. Keep some cash for emergencies. Hold onto the extra capital, so if you run out of funds, you’ll have a nest egg to start a new business.
Sometimes, when the going gets tough and there’s no way out, it’s best to take as little loss as possible, save what you can, and get out… NOW! Use the rest to find refinancing, margin leases, mortgages, franchises, and all other ways to use money that belongs to others for both your profits and yours.
Selling your property for cash and then leasing it back on a long-term lease is another form of leverage. If you sell for a million dollars in cash and lease it for $10,000 per month, you have built up enormous leverage. You now have $1,000,000 each with a 10% down payment on each property, you now control $10 million worth of income producing properties. Sometimes it is possible to use options to keep the property, with very little cash, until you can get title and take possession. This can produce fantastic leverage if ownership is planned.
Going public is another method used to gain leverage by using other people’s money. It receives money from the public for shares of its capital stock and at the same time establishes a market value for its unissued shares.
Before you apply leverage to any proposal, make sure you know exactly what you’re doing. There must be ongoing favorable cash flow to pay off your debt, pay all of your costs and expenses, and give you a reasonable profit. If a weakness occurs in one or more of your business entities, it could bring your entire organization down.
2. IN FRANCHISE
Franchising your trading package is another form of leverage. You are selling others your knowledge and the right to use your system and/or product for a price, be it a share of the profits, a massive payment, or a combination of both.
Becoming a franchisor is no longer as simple as it used to be, due to the controls and bureaucratic procedures established by the different state and government agencies. In some states it is almost impossible for the layman to go through all the red tape necessary to comply with the laws. However, if it were easy to do, it probably wouldn’t be profitable anyway.
When you have met all the requirements of the various agencies, you will have an operations manual and a pro forma financial statement… You will have developed a turnkey package for your franchise offer.
To get off to a good start, obtain revised state statutes from the Secretary of State and study the requirements for establishing and selling franchises.
As your franchises become more well known and after you have a few locations, instead of selling one franchise at a time, offer area franchises to “core” franchise holders. Earn a portion of the setup charges for each area plus an ongoing percentage of each operating unit’s gross business.
3 ON THE STOCK MARKET
*CAPTIVITY
You can earn interest on non-existent money and buy bonds regularly without paying any of them except the first five bonds. You will need $500 in cash and a brokerage account in both the US and Canada. Open an account with a Canadian brokerage firm and deposit a &500 check with them. On the same day, before your check clears, open a brokerage account in your hometown. This can be opened without money.
You purchase newly issued bonds through your US broker and declare that they MUST be delivered to your Canadian broker for payment. The same day you buy the bonds, they will start earning interest. The bonuses will take 5 or 6 weeks to be delivered, and all the time you will be earning interest.
With this plan, you can spread out your order so you can have $1,000,000 or more in bonuses on your order. and when they get to their Canadian broker, it works like this:
The Broker accepts the first five bonuses of $1,000 each and deposits them into his account. When the second value of $5,000 arrives (you should always order in units of $5,000), then you sell the first bonds to pay for the third, etc.
The results are BIG profits for existing non-cash money. In fact, you can earn up to 80% interest on money you don’t even have.
New bonds will often have an increased resale value to add to the interest earned. Therefore, a $5,000 bond at an 8% interest rate that takes 60 days to deliver would earn $67.00 in interest. If they increase in value, you can get an extra $200 to $500 or even more when they are sold.
* SAVE PENNIES
Periodically, a great deal of money has been made trading Penny Stock, but it is highly speculative and it is perhaps once in a lifetime that one can hit the jackpot to cash out with a spectacularly high yield.
To eliminate some of the speculation, many investors buy just 100 shares or so, of several shares of different companies. In this way, they can only invest $50 to $100 in each of the 40 to 50 companies. This is one of the best ways to become familiar with this type of investment.
Shares of one of the Nation’s largest firms, which now has outlets in nearly every city in the United States, were selling for 60 cents a share in 1963. 100 shares at that time totaled $60! now valued at over $75,000!
$9,000 invested in 1948 in shares of what was then a small lumber company, was worth more than $1,000,000 a few years ago, and moreover, would have produced average dividends over the years sufficient to equal a top salary each year. A person who invested at that time could have “played the time” from then on, received more money than working for a living, and still have over a million dollars in the bank or for other investments.
There are several newsletters that cover stocks at low prices. One should subscribe to several and analyze the information before investing.