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Debt management program Your way to financial freedom

admin  Management  ,

Debt management program helps people to mange their debts effectively. With debt management program you can easily do away with all your debts with minimum effect on your credits. This program is carefully charted out based on your current debts and financial situation so that you get out of debts and remain debt free in future also.

Debt management program includes debt elimination, debt negotiation, credit counseling and debt consolidation. With the help of these you can easily reduce your pending burden.

Debt elimination requires you to pay only a minimum amount to close all your debts. By closing all your existing debts you will be free from paying interest to all those sources. The money saved in this way may be used to repay the existing loan which will be having a little bit more interest. By doing this you can relieve yourself from all your debts.

Debt negotiation is also an important part of the debt management program. In this case you can with out any help or with the help of an expert interact with the lenders to agree for a reduced amount for lump sum payment. That is the lender will reduce the total amount so that you can repay it completely and come out of your debt.

Your financial advisor will give you tips to effectively repay debts so that your credit score increases while your debts are eliminated. You will get benefited from the vast experience of your advisor to manage your debts within your budget. With credit counseling you can learn to remain debt free and handle your financial obligation in a better manner.

Another important part of debt management program is debt consolidation. Debt consolidation allows you to merge all your outstanding debts and unpaid expenses into one loan. This new loan carries lower interest rate so that it becomes easier for you to settle all your debts. The monthly installments on this loan are low and manageable.

A debt management program is a simple and effective way of solving your financial mess. Once all your debts are settled in full your credit score will also improve and will be able to enjoy a life without debts.

Alex Jonnes is associated with Easy Debt Consolidations. He is Masters in Business Administration and writes on various finance related topics. To find Debt management program ,debt consolidation loan bad credit, online debt consolidation loan, easy debt consolidations visit http://www.easy-debt-consolidations.co.uk/

Effective Equipment Management Is Critical To Profitability

admin  Management  , , ,

Successful Construction Companies Use Business Management Software to Manage Equipment and Ultimately Reduce Expenses, Improve Utilization, and Minimize Downtime.

Effectively managing heavy equipment can make the difference between a profitable company and an unprofitable one. Successful construction companies are always looking for ways to increase profits, reduce maintenance and operating expenses, optimize utilization, and minimize downtime. This can be achieved through better equipment asset management.

Equipment Asset Management provides information to make decisions about rebuilding or replacing machines, balancing fleet average age, and adjusting fleet size and composition to meet changing company demands. In practical terms, this means getting as much production as possible from the equipment, at the lowest per hour cost, over the longest period of time, while obtaining the highest sales value at the end of life. This is achieved through the use of business management software to effectively manage equipment.

The equipment asset in a heavy construction company accounts for about one-third of total corporate assets, and the cost of owning and operating the fleet is frequently larger than any other expense. This makes it the largest expense in a construction project, more than labor and materials costs. This makes effectively managing heavy equipment even a more critical factor for project profitability. Equipment must be at the right place at the right time; it must achieve stated levels of reliability and uptime; and total owning and operating costs must be kept to a minimum, thereby giving the contractor a competitive advantage.

Common Challenges Before Using Software for Equipment Management

Prior to adopting software, most companies do not know what the hourly cost of a piece of equipment charged to a job really is. Therefore, they do not know if they are recapturing the cost of each individual equipment piece, which makes it difficult to make well-informed business decisions about investing in software to manage that aspect of the business.

Very small companies with only a few pieces of equipment might be able to get away with not knowing their equipment cost, fuel cost, and utilization information. But as a company grows, they have to use the best practices available to ensure they make money. One of the problems is that a job may be showing a profit due to incorrect equipment costing and rates, but this can negatively impact the bottom line.

Typically, companies that can benefit from the use of equipment management capabilities of business management software share similar conditions. These often include:

– Do not know if an individual piece of equipment is profitable or not and lack information to make repair-replace decisions.

– If software is being used to manage equipment, it’s not integrated with job cost information or the accounting system.

– There is no preventive maintenance scheduling or it is done manually.

– No ability to track parts inventory.

– Do not create purchase orders or they are written by hand, which inhibits workflow and accuracy of procurement, scheduling, A/P, and A/R.

– No tracking of utilization or equipment hours.

– It takes much time and effort to product reports for owners because it requires gathering information from various places and then more analysis to tabulate what’s needed. Equipment rates are set for a machine based on someone else’s price.

– Projects are charged the same no matter which equipment is used or brought to the job.

– Don’t track fuel used or burn rates for equipment or per projects.

Benefits of Using Software to Manage Equipment

Construction business owners interested in improving profitability by using software for better equipment management can anticipate positive improvements in a variety of areas. When evaluating software options, consider and compare these capabilities that your solution should include for optimum benefit:

Equipment Utilization

Nothing impacts the economics of equipment ownership more than utilization. The number of hours a machine works in a year determines the rate at which fixed annual costs are recovered. Underutilized equipment does not have costs accurately reflected in Job Cost while greater utilization increases revenue.

Invest in software that continually monitors the utilization of each piece of equipment and puts the equipment manager in a position to measure the impact of low utilization and to develop strategies to control and correct it.

Equipment Downtime

Equipment downtime is one of the most significant problems faced by construction companies that specialize in heavy and highway jobs. When a piece of equipment unexpectedly breaks down, not only is the project schedule disrupted and costing money, but multiple employees’ schedules are interrupted since everyone is in crisis mode. The company has to scramble to get mechanics on the job site and get parts delivered to fix the breakdown. An unexpected repair is much more expensive to perform than to monitor and schedule maintenance.

Identifying and predicting necessary maintenance is critically important for any equipment software solution. Invest in software that will provide the equipment manager with information to predict repairs, which helps avoid equipment breakdown and thus saves cost and ensures reliability.

Repair – Replace – Rebuild

The process of reviewing the equipment fleet; deciding which units to sell, replace, or rebuild; and developing a capital expenditure plan are the most important tasks an equipment manager performs. Frequently it takes days to gather the required information (from multiple places) to make decisions about Accounts Payable, Finance, Payroll, and so on.

Invest in software that automatically synchronizes the operational, financial, and mechanical history of each piece of equipment and makes the data easily available in one place, with the ability to drill down to the lowest level of detail. You will be confident that the information is always up-to-date and at the equipment manager’s fingertips, allowing intelligent and timely decisions.

Preventive Maintenance

Some companies view preventive maintenance as an investment as opposed to a cost. Effective preventive maintenance improves reliability and reduces future repair costs.

Be sure that your software choice includes preventive maintenance scheduling and you’ll be equipped to improve quality and consistency on every job.

Warranty Tracking

Many times a mechanic will unknowingly replace or repair a part that is still under warranty. Today’s software helps you track parts under warranty, which allows you to recoup repair costs and not spend money unnecessarily.

Fuel Tracking

The ability to analyze equipment fuel use can reduce fuel losses, resulting in major savings. This equipment management feature should be a component of your business management software.

Improve Profitability With Better Equipment Management

In conclusion, effective equipment management can dramatically improve the profitability of any construction company. With the increasingly competitive business environment, contractors must look at every opportunity to reduce expenses, optimize utilization, and minimize downtime. Software for equipment management has proven to be a valuable tool that can make the difference between being a profitable business or taking a hard financial loss.

Risk Management During Construction At Health Institutes

admin  Construction  ,

Introduction:
Whenever renovations or any construction work are planned at a hospital, crucial health considerations must be made. The workers at these health institutions will be in contact with harmful diseases that are carried in the dust and other debris, which are always part of any construction or renovation project.

All medical institutions have to expand at some stage because of the continual increase of health care demands, such as the need to stay current with technology, reinforcing aging building structures, as well as adding facilities that are more patient-friendly.

Safety of the Workforce and Patients.

The moment construction starts at a health institution, such as a hospital or medical clinic, the presence of bacteria and other harmful microbes is a reality that presents a serious health risk to the workers and patients. Managing these health risks is of the utmost importance, so it is essential to access the available guidelines from the Center of Disease Control & Prevention.

Construction dust is where most of these disease-carrying microbes, such as Aspergillus fumigatus and Stachybotyrs atra, can be found. The CDC guidelines mentioned above offer all the information related to ventilation of the construction area, the control of infections, and monitoring of the environment. These are crucial to ensure a safe environment for everybody that could be exposed to the construction dust.

An important part of the planning phase for new construction projects at a health institute should include discussions on how to prevent the spreading of diseases to workers in the immediate area of construction. The above-mentioned guidelines should be used as the basis of these discussions. This will ensure that the protection of the entire workforce, as well as all patients, remains a top priority.

Procedures to Control Infection Risk During Construction at Health Institutes.

Specific and significant procedures have been put in place to ensure the control of infection of any workers or patients during a renovation or other construction work at a health institute.

Weekly Meetings by the Project Management.
These meetings are of the highest importance to the success in controlling possible infections in and around the construction site. These meetings will be used to communicate all the current and future activities of the project to staff members. The people who will attend each meeting will have to be from the laboratory, environmental and engineering services, as well as the departments of administration and risk management. Other parties that might be asked to attend will be from the project architects, contractors, the design engineers and possibly the construction administrators, depending on how complex the project is.

The Risk Assessments of Construction Projects.
An assessment of the risks of any possible infection needs to be conducted. This ensures the safety of all patients and workers. It is also used to keep the particular regulatory agencies informed of all activities during the ongoing construction phase of the project. Furthermore, the results recorded from these assessments could be used to recommend certain safety precautions that should be taken by the construction team. This might include wearing specific protective clothing or building an anteroom, which will help prevent the construction dust from spreading.

Necessary Training.
Everybody involved with these projects should be informed of the procedures needed to guarantee the infection control. Sometimes a training course will be presented to all the contractors and sub-contractors involved with the project in order to confirm infection control.

Continual Monitoring of the Environment.
This monitoring involves two different types of actions, which include the testing of the air quality, as well as the physical monitoring of every activity during the construction. The latter is ensures that the construction team adheres to the standards set for maintaining the safety of everybody and for the controlling of any infections.

Keeping Communication Open.
The project’s management team has to use the weekly meetings to share all the project activities with the departments that are directly affected by the project. There are specific communication procedures in place, which should be followed at all times.

Can rethink American Boost Saturns Sales

admin  Automotive  , , ,

Analysts are warning that Saturn’s decision to align itself with the flag; mom and apple pie in its latest “Rethink American” campaign may not be an automatic home run.

“They can’t rely on the American idea only, even though, traditionally, [General Motors] being American is a reason why they’ve wanted people to buy their vehicles,” said Alexander Edwards, the president of the auto division at the consultancy Strategic Vision based in San Diego. “That would be like Hyundai only selling vehicles based on the warranty.”

The automakers new campaign flaunting improved Saturn body kits targets import purchasers and was created based on company research. Among other facts, th eGeneral Motors Corp., the parent company, found that the 17-year-old Saturn is still considered a new brand by import owners and intenders. “Which was encouraging,” said Dan Keller, the marketing director at Saturn in Spring Hill, Tenn. “They gave us a whole lot of credit for being different. We don’t have the baggage of a lot of these other domestic car companies… These findings gave us an opportunity to challenge them and rethink what an American car company can be.”

America has been a “sponsor” of other brands. In 2001, Tommy Hilfiger introduced an “Earn your stripes and be a star” contest where filmmakers entered a video demonstrating what the American flag meant to them. Three years after, SABMiller launched an ad campaign that claimed they were running for “president of beers.” The ads called Anheuser-Busch “un-American” for declining to refute them. Anheuser-Busch responded by stating in ads that “Miller was purchased by South African Breweries.” A full-page Budweiser ad that ran in newspapers during the Memorial Day weekend read: “A true American holiday deserves a true American beer – Budweiser.”

A lot of brands have experimented with this ‘American brand’ advertising but the consumer doesn’t seem to care much in many cases,” said J. Walker Smith, the president at marketing research firm Yankelovich Partners in Chapel Hill, N.C. Smith added, Most consumers are buying products largely based on the valuations they make on the brand with regard to the competition in a category. And this whole notion of being American is somewhat beside the point when it comes to the performance of a product.

“It now is taking more that just saying you are American, like the [Ford] Fusion ads that compare the Fusion to the Camry and the Accord,” said Peter DeLorenzo, a former Detroit ad man and now publisher of industry Web site Autoextremist.com. “Those other ‘We’re American’ ads didn’t work because American consumers were not listening. They wanted a good car. I’m not sure that [Rethink American] can get people out of their Toyotas and into a Saturn, but not trying to sway those buyers is a huge mistake. So this [tack of] going at them directly and trying to break the prevailing attitude has to be done.”

Potential Jobs in Creating a New Energy Infrastructure

admin  Energy  , , ,

According to the U.S. Conference of Mayors, a total of 751,051 “green jobs” were created or maintained in 2006. Of those jobs, almost 127,500 of them related to renewable power generation. The majority of the jobs in question, approximately 85% were located within metropolitan areas. However, with the increasing popularity of renewable energy in today’s market, the potential for employment in these areas can increase greatly. Santa Cruz Ca, real estate benefits when people improve their home with energy efficient products.

Projected Renewable Energy Jobs and Industries

The Energy Information Administration estimates that the electric power sector generated just over 4 trillion kilowatt hours. Of that, just about 8% was generated from renewable sources. Hydroelectric power is perhaps the largest contributor to the generation of electricity, and has been a significant creator of jobs in both manufacturing and operation of various hydroelectric jobs around the country. Since hydroelectricity has been a part of the infrastructure for a number of decades, the workforce is becoming older, and the need for an influx of skilled workers will undoubtedly increase in the coming years.

One of the most promising sources for alternative energy is wind. Geographically speaking, the areas with the highest potential for employment generation with a new energy infrastructure are in the northern and western parts of the country. In considering Santa Cruz real estate for wind potential, a survey of the area winds is helpful to determine the suitability of the site. If wind energy is pursued, the states of North Dakota, South Dakota, Kansas and Texas would be the most likely places for wind energy generation farms, and the associated employment opportunities. They are estimated to have a total potential power generation of approximately 4,500 billion kilowatt hours, which is more then enough to power the entire United States for at least 9 months. In addition, states such as Maine, New York, and Michigan also provide many opportunities for wind generation. If wind is actively pursued as a source of alternative energy, a substantial amount of jobs can be created and maintained. Potential jobs could include construction and maintenance of the wind generation farms, construction and maintenance of new transformers for electricity transportation, and jobs to regulate the flow and amount of electricity geographically. The American Wind Energy Association is a great place to find more information at awea.org.

Another potential powerhouse when it comes to alternative energy is solar power. Solar power has the potential to generate a significant amount of jobs, as well as decrease our national reliance on fossil fuels. The basic technology has been around for years, but the widespread adoption has not occurred basically due to the higher cost of power generation compared to fossil fuels. However, with the increasing cost of using fossil fuels, as well as advancements in solar panel technology, the cost difference is becoming smaller everyday.

Using Time-Lapse Photography to Save Money on Construction Projects

admin  Construction  

Time lapse photography and time lapse footage can help save money and increase profit on both large scale and small scale construction projects. Its a bold claim, given that timelapse photography seems remote and far removed from the construction world, but lets think about this together, and see if we can reach any conclusions.

Time-lapse photography is a lengthy and difficult process, but essentially its where a series of photographs are taken from a fixed point at prescribed intervals, and then the individual shots or frames are edited together. When this edit is played back at 25 frames per second, it has the effect of condensing the passage of time into manageable chunks, where the viewer can easily see and appreciate large scale changes in only a couple of minutes.

How can this be of benefit to you if you are the construction manager or project manager on a building site? Well, any sufficiently complex construction project will have a well-defined, and rigidly adhered to, schedule of work. This schedule of work will tell the management team everything they need to know in terms of getting materials, plant and labour to the right place at the right time.

But how closely is this plan monitored against actual events? And how reliable is the information you have received? Having time-lapse footage of the entire project can give you an invaluable resource to compare against your schedule of work. You will be able to tell, visually, whether the materials, plant and labour arrived at the correct location, in the right order and at the right time. It will obviously be too late to do anything about it by this point. However, next time you have to write your schedule of work for the next project, you will have better knowledge and will be able to make a more informed choice about when to order what you need. That timelapse footage will enable you to get the equipment, materials and labour on site just-in-time, meaning that you wont be tying up valuable resources wastefully. That means more profit on the job, or the ability to offer services more cost effectively than your competitors.

One other way in which such services can not only save you money, but are very useful, is in the area of ultra high definition site monitoring. The best time-lapse companies offering time-lapse services also allow you to view your project through on-line viewers from desktops, smartphones and tablets. This means that you, your surveyors, architects, etc can view very clear images (much better than any webcam) to discuss and share etc. You can also offer this service to your clients and stake-holders etc. These images, taken with the correct HD equipment (Again NOT just webcams) can allow you to zoom into particular areas of your site/project to scrutinise particular detail. This makes any monitoring and discussions about the site very convenient, even for those who cannot get to the actual location of the project.

Plus.If all this wasnt enough any marketing people can use either the individual still frames, or even the live feed to websites in order to communicate to broader publics.

Anger Management Courses Holds The Secrets To Calm.

admin  Management

Good anger management courses help people who want to learn how to express and control their anger properly. The problem is that it is two entirely different things between wanting to and being able to control your anger. A person with anger issues may be committed in his heart and mind to making changes in his behavior, but without turning intent into action there are no good results to be achieved. People in this position need encouraging. If this describes you, realize that your situation is not unique. There are millions of people just like you, and it is not your fault that you have difficulties controlling your anger. However even though not your fault, it is still your responsibility to fix the problem, and the good news is you have company and proven techniques in this endeavor.

Anger management courses may be advised for people looking for help with their problem. These courses are designed to work in group settings. The courses may take a day, and sometimes anger management courses are turned into multiple day retreats. Throughout the courses, you are taught effective principles that are very useful in controlling anger. You are also taught to deal with your feelings and emotions, and to find out what it is that brings out your fits of rage. Some courses concentrate specifically on one single topic, like letting go of negative emotions, or releasing bad energy and transforming it into success and freedom. However, there are many lessons to be learned when doing anger management courses.

anger management courses are not only for adults. There are programs like camps and retreats for children, teenagers and adolescents too. For example, teenagers might take an anger management course that is provided at an anger management camp that is designed specifically for them.

Besides sitting in on classes and lectures in regard to the anger management courses, there would also be opportunities to interact with other youth, and also form friendships and take part in fun activities. An anger management course for a teenager could have the empowering results of a person forming their own support system. In an anger management course you can also meet people to call on if you are starting to feel overwhelmed by frustrating situations. Anger management courses provide so much more than just information.

The most powerful tool you use to fight your anger issues, could be an anger management course. When you are working hard every day to fight your negative emotions and deal with your anger, it is important to be a part of programs which give you support and understanding. Attending an anger management course would prove to you that there are still people who care about you, and are committed to getting you through your problem. In a group setting, you would feel like a part of a team, you would not be singled out and should not feel intimidated or humiliated. The reason is because the whole group is seeing similar problems, and there will be a general sense of compassion and empathy.

Why Real Estate Investment Includes Risk Analysis

admin  Investment  

The bottom line about any real estate investment analysis is that it is a risk analysis. If risk was not an issue with investing, and all the results of any given investment were known with certainty, than creating an analysis for any type of real estate investment would simply be a matter of arithmetic. But the truth about real estate investing is that many factors come into play (i.e., the economy, tenant trends, etc.) that make it impossible to ever know with absolute certainty enough about a typical property to remove every element of the unknown.

Since the ability to accept varying levels of risk will differ from investor to investor, many simply avoid real estate altogether and opt to put their money only in relatively risk-free investments such as government Treasury bills. But the price for this lower level of insecurity, of course, is a lower rate of return. Why, because a relationship always exists between risk and rate of return. Therefore, when investors are attracted to the certainty, they in effect force down the rate of return they are willing to accept as a tradeoff for their unwillingness to accept uncertainty.

Okay, so what about the risk takers? What can investors who prefer to collect the higher rates of return associated with real estate investment do to deal with (and perhaps minimize) the ambiguity? Investors must exploit tools that can potentially measure this risk. One method is by applying what is known as a “probability distribution” to prospective real estate investment opportunities.

For example, rather than using just one set of rents to ascertain potential cash flows and returns for a rental property, the investor should consider several rent scenarios that reflect an estimated probability of their occurrence.

In my real estate investment software, for instance, a form is provided that allows users to apply three different rent scenarios to a rental property. This way, rather than just having to accept whatever rents are presented by the seller, the investor can analyze the cash flows and returns based upon a range of rent probabilities (i.e., most likely, somewhat likely, and not likely but “wow, wouldn’t it be great”).

The logic is straightforward. Say, for example, that you’re doing an analysis on a ten-unit apartment complex made up of ten two-bedroom, one-bath units each reportedly with the potential of renting for $700 per month. My own experience warns me that “potential” rents may (or may not) be likely, so I always prefer to run my own rent scenarios. In this case, then, you would use our Rent Scenarios form and assign three rent probabilities based upon your own measurement of risk, and instantly you are the results so you can analyze what impact each rent might have on cash flows, rates of return, and profitability. The outcome if monthly rents are more likely at $650, for instance, could affect your willingness to chance buying the property.

This is only one of a variety of mathematical and statistical approaches to risk analysis that will help you address the uncertainties of real estate investment. But you get the idea. The best way to deal with uncertainty is to measure it. And the probability distribution we illustrated for rents is a good first step.

You can see a screenshot of our Rent Scenarios form at http://www.proapod.com/Tour/basic/screenshot_4.htm

How To Master Property Valuation Of A Self-storage Facility

admin  Sales  , , ,

The numbers have been crunched, a broker has been hired, and the marketing has begun. Its official: its time to sell the self-storage facility. Whether its retirement, cashing out on a successful investment, or simply a search for a new business challenge, many self-storage professionals are busy navigating their ways through the murky waters of commercial real estate buying and selling. And those waters are becoming increasingly rough. The real estate slowdown and equities market woes seem to lead the evening news nightly, and many self-storage investors are left wondering how well their properties will fare on todays open market.

With this in mind, pricing is becoming an increasingly important part of ensuring a successful sales transaction. Of course, pricing a self-storage property correctly is easier said than done. Over the past several years, values assigned to self-storage facilities have increased dramatically as the asset class has become more desirable to investors.

Class A properties have become especially pricey as more institutional investors have entered the self-storage market. Looking at the sales prices from previous years, many believe values will continue to rise exponentially, while others feel their areas have topped out and even become overpriced. This adds to the overall confusion over what the correct asking price is for a self-storage asset.

Determining Price
It is important to carefully examine the facts and data to determine a facilitys real value. Generally, net operating income is the driver of value of an existing self-storage property, says Pierce Owens, senior associate at CB Richard Ellis in Houston, Texas. However, many people calculate net operating income in different ways. For example, some buyers include a third-party management fee in calculating income. There are many different opinions as to what the right net operating income should be.

Not so long ago, many buyers used projected rent and income figures to determine a self-storage propertys value. However, this practice has become less common. Buyers now have more of a focus on historical performance, rather than more of a focus on historical performance, rather than a rosy proforma, says Owen. With the current credit market, most lenders will no longer provide funding based on future estimates. Instead, they focus only on actual net operating income figures.

A propertys place in the market also has an affect on its value. In an area with huge barriers to entry and a high cost for building new facilities, a property may be worth more than a similar store in a less restrictive market. In addition, the number of nearby competitors and the stores name recognition are also important indicators of overall worth.

Another methodology for the valuation of self-storage property involves the use of optimal underwriting. With optimal underwriting, buyers determine the appropriate expense load a facility should carry, says Steve Ekovich, first vice president, regional manager, and national director of the self-storage group at Marcus & Millichap in Tampa, Fla. The expenses would then be factored to derive a CAP rate. Next, income figures are calculated using both the gross potential rent of the facility and the sites current vacancy rate. Both physical and economic vacancy rates are analyzed as well.

You have to look at the collected income on a monthly basis for two to four months to get a feel for occupancy, Ekovich says. This takes into account the length of time it takes to turn the units and concessions offered to tenants.

The result effective gross income would then be analyzed using the expected expenses for the new owner, including taxes, insurance, and management fees. In addition, salaries, maintenance expenses, and comps would also be studied to ensure they are in line with current market averages. These numbers all serve to give the new owner a realistic picture of what their expenses will be.

Looking At The Market
Over the past few years, self-storage prices seemed to skyrocket. There was an 18-month period where the laws of supply and demand took over, explains Aaron Swerdlin, senior managing director at Houston, Texas-based Storage Investment Advisors. At that time, there were many more buyers than sellers.

As a result, prices rose dramatically, and many people believed property values were ballooning too quickly. There is perception that prices were going so high that things were getting out of hand, says Swerdlin. But, for a long time, self-storage was ignored by the institutional investment community. Once it caught on, it took a while for values to catch up. People werent overpaying or making deals that they shouldnt be doing. We werent seeing properties selling for more than they should.

Investors are still actively pursuing self-storage properties in spite of the current real estate slowdown. One reason for this is that capital is generally less expensive for institutional investors than it is for private individuals to obtain. Another driving force behind the influx of investors includes the fact that self-storage is both a business and an investment.

There are more groups looking at self-storage than there were three ago, says Marc Boorstein, principal at Chicago, Ill.-based MJ Partners Real Estate Services. One of the reasons so many new groups are looking to invest in self-storage is that there are fewer defaults in storage than in any other commercial property. Youre not dependant on one tenant like you are with retail.

Many investors believe that self-storage is more stable than other business classes. Investors like self-storage because they perceive that the risk adjusted profile on returns is attractive compared to other assets, says Owens. There is also a perception that self-storage is more recession proof than other assets.

For the most part, however, institutional investors tend to target the newer properties located in the largest markets. Over the last couple of years, institutional investors have increased their appetites for Class A, fourth-generation properties, Ekovich says. The more leverage you have, the more someone can pay for an asset. Leverage also affects the CAP rate and has had a profound affect on underwriting.

Although institutional investors seem to be focusing most of their attention on Class A self-storage facilities, Class B and C properties are also seeing a bump from investors new found interest in the industry. There is a pretty big disparity between Class A properties and Class B and C, says Owens. As the industry welcomed an ever increasing number of new participants, sellers of A Class sites were getting top dollar whenever properties changed hands. Nevertheless, the supply of these assets is limited. There are not a lot of Class A properties, says Owens, so buyers end up chasing B Class properties.

Last year, the price gap between Class A and B was narrower, he adds. This year, it has widened more. Banks and lenders have much tighter underwriting standards today, and they are most likely to lend on very attractive Class A properties.

Knowing The Players
Occasionally, institutional investors will go after a grouping of B and C class properties. Institutional money is going after B properties, but only if you can get a portfolio together, says Boorstein. As you get to smaller markets, you must have a portfolio of three or more properties. It gives the buyer a presence in the market and the advantages of economies of scale.

If self-storage sellers believe their properties will attract the attention of commercial investors, they should set their asking prices accordingly. Sellers need to have a strong understanding of who their buyer might be-a private individual, a regional buyer, or an institutional investor, advises Owens. They should also know how a lender will underwrite and lend on their property.

In general, buyers prefer to use debt financing when possible. However, the cost of funds and debt is going up and, as a result, CAP rates are climbing. Sellers need to understand how that plays into what buyers can pay for the property and how it will be funded.

The benchmark is the 10-year T-bill, and the T-bill has gone down but spreads have gone up, causing interest rates to increase, Ekovich says. The more leverage you have, the more someone can pay for an asset. Leverage also affects the CAP rate and has had a profound affect on underwriting.

With the problems of tightening credit standards, sellers are unlikely to see the same type of debt structures available that were easily attainable only several months ago. Today, most buyers must use more of their own money to close a deal. You used to be able to get 10-year interest-only financing, but now you can only get interest for 2-years, says Boorstein. Very aggressive loans are now less aggressive. Now, the buyer has to put in more equity, and interest rates are higher.

In spite of credit concerns and a softening real estate market, many buyers are still aggressively pursing high-end self-storage properties. Sellers with solid portfolios or successful Class A properties are still likely to garner strong offers. However, sellers who are simply interested in testing the waters may not like what they find. The choppy tides can be extremely unfriendly as property prices have dropped off in some areas.
Nevertheless, the best stores will always attract the attention of a variety of buyers, ensuring smooth sailing for those who are staying the course to get the highest prices and best returns when selling their self-storage facilities.

How To Clinch Customers With Your Sales Copy

admin  Sales  

When writing sales copy, it’s essential to get armed with plenty of word weaponry. If you are serious about attracting customers, you need to use powerful writing techniques to draw them in. But, where do you start?

Have you heard of ‘grabbers’ and ‘clinchers?’ Grabbers are phrases designed to attract attention, whereas ‘clinchers’ are persuasive closing statements. There are probably thousands of these sparkling gems, as well as new ones being written every day. In this post, I’ll explore just a few of the most dynamic clinchers.

Secret stash of words

Every ‘good’ copywriter has a secret stash of copy clinchers. My clincher swag bag, for example, is full of positive phrases I use to motivate a prospect into taking the next step. Whether it’s to persuade readers to contact you, sign up for something or buy online, you need enticing phrases in your copy.

If you don’t include powerful ‘clinchers’ in your business writing, the reader will be left thinking ‘what now?’ And more than likely, you’ll lose their business. Prospects always teeter on the edge of a decision; a clincher will gently push them into making it.

What types of clinchers are there?

Clinchers do different things. So, it helps to know what they are and when to use them. Clinchers can be categorised into several groups:

*General clinchers
*The moment of decision
*Calls to action
*The PS

General clinchers
General clinchers are valuable when you want to inspire confidence in readers. They subtly convince prospects they would be missing out if they don’t respond:

*Without a doubt…
*Ask yourself if you can afford not to…
*All this can be yours…
*For such a small investment, you’ll gain…
*This is a tremendous opportunity to…
*It won’t cost you a penny to find out more…
*You’ll wonder how you ever managed without…
*Take advantage of this special offer while it lasts…
*Supply is limited so act now to…

The moment of decision
These clinchers introduce a sense of urgency into your sales copy, at the point where a prospect may be deciding which way to go:

*Intrigued? Why wait another day when you can…
*Get started now!
*Don’t miss this exclusive opportunity…
*Don’t just take our word for it; find out for yourself.
*Now is the best time to…
*Supply is limited so act now to…
*As soon as you take this step, you…
*Take the plunge…

Calls to action
Ever wondered what the secret to persuading prospects to act is? The answer is … to ask them to do something. If you don’t ask, you don’t get! A call to action is an essential component in your marketing kit, as you tell your readers what to do and when.

Once you’ve gained a reader’s attention, given them plenty of reasons to buy, you must follow through with clear calls to action. If you have a website, ensure you have one call to action above the fold (The page break) … and always have a call to action at the end of your copy:

*Contact us today on…
*Complete the inquiry form and send without delay…
*Visit the store today to find out more…
*To avoid disappointment, place your order here…
*Call now to arrange your free consultation…
*For a free demonstration, simply…
*To reserve your…
*Send for a free copy of…

These phrases allow you to ‘connect’ with your customers, whilst focusing on benefits. Never underestimate the importance of clinchers in your copy – they sell!

In the next article, the all important PS grabber – which no self-respecting sales letter should be without!