The overall economy has fundamentally changed. It changed because of 20 years of intense deregulation of financial sectors and giant business to the disadvantage of mid and small business. The deregulation led to unrestrained economic abuse, greed, and eventually corruption. Again, the mid to small business sector lost competitive rank, the public was exploited and the general economy flew into an era of huge profits for the few economic giants at the very top. This abuse became so widespread that it ripened and burst during the last 12 months of the Bush Administration, creating massive global recession, for big and small alike.
We are still paying the price of those abuses. But, because of it, the entire financial world has changed. As John Allen Chalk, the prominent Texas attorney told me: "The foundation of business has changed fundamentally. It will never be the same."
I continue to communicate with VIPs, from Los Angeles to New York, London, Frankfurt, Beijing, Hong Kong, New Delhi. I have had the privilege of advising U.S. Congressmen, have been quoted or had recommendations implemented by three Presidential administrations ( Bush Sr.,Clinton, and Obama). It has been my privilege to be honored by the World Bank, EDI, USIS, and several foreign governments for contributions to recovery and economic development. These 4 strategies are a condensation of the most current information and knowledge that my team of "Globally Connected" people observes.Implimentation of these strategies may,no, I should say, it is certain, that they WILL help you if you own, invest, market, need to sell, or have loan needs for commercial real estate properties.
We live in a time of recession but also of great opportunity because this government has provided us with two powerful gifts. The first comes from an unlikely source. The SBA was hated by the Reagan Administration, both Bush Administrations starved it, but suddenly this old agency shines forth as a possible gigantic source of loans and new job creation.
The SBA has been funded to historic highs and now can lend up to $5,000,000 on one SBA project. (The limit was $500,000, when I was a bank President). 90% of loans in America are less than $5,000,000. Under the current law a community banker can lend $5,000,000 on a
project and have little or no risk, thus there is no excuse not to lend back into the community.
The second gift is the Federal and State mandates to encourage use of renewable energy, opening up multi-layered sources of grants, rebates, refunds, incentives, that raise achievable expectations of ROI on properly structured properties from 4, 5 or 6% to 12, 15, sometimes 22% ROI. Now a 22% ROI, when inflation is at 3% is the best "honest" financial opportunity in 30 years. Our advice, get off of your negative inertia (colloquial language would say a word also used for a mule) and get into the new economy. We can advise or help you make this happen, whether it is a $500,000 project, a $5,000,000 project or a $50,000,000 project.
For example you must change the essential nature and definition of your project to take advantage of the "New Economic Environment". For example if you have a shopping center, you must add a wind turbine, solar panels, conservation features, or solar water heating, and redefine your shopping center as the: "New Green, Electric Bill Free Southport Mall". If it is industrial property, it will be the
new "Green Industrial Project",if it is a commercial office, yours will be the new "Renewable Commercial Office Building". Walmart called this their "Green Energy Supercenter".
You will need a feasibility report, direction and budget for this. Contact this company:
Environmental Solutions, Consulting: 817 738 9595
With an energy audit and complete report, this will be your guide to creating something new and marketable, (and finance able) that will increase your odds of marketing and sale substantially.
Banks have been dead, but there are huge amounts of financing available in certain circles. The new SBA will allow loans of up to $5,000,000 per project. Our firm is in contact with every "Preferred SBA Lender Bank" in the USA.
We have identified bankers that are eager to lend on projects with SBA loans. Also SBA wants business loans that have "renewable energy" equipment permanently affixed to these projects. The best in the nation for "end user" energy creation is Wind Inc. http://www.wind-inc.combecause they specialize in wind turbines, solar systems, and solar water heating systems that generate from $2,000 per month to $90,000 per month in energy production on site for shopping centers, hotels, commercial office buildings, industrial shops, hotels, prisons, industrial parks, apartments, even mobile home parks, farms and ranches.
Our team can package your proposal, if you wish and introduce you to the "live lenders" in the banking world who are utilizing the new SBA program.
An example of how these work in the real world. Say you have a $4,000,000 shopping center, or dead Walmart "dark" store that is empty and will not sell or finance. We guide you and you add $1,000,000 in energy efficient improvements. These improvements will generate annual energy savings of $310,000 for that facility when it opens. (capitalize that savings at 10% and that alone increases the investor value $3,100,000. Add that to your cost in the facility $5,000,000+ $3,100,000= New Appraised Value of your property= $8,100,000).
Now you financed $5,000,000 on a new valued property of $8,100,000. But, the government, within 60 days will send you a "renewable rebate check" of 30% of the $1,000,000 you spent (and financed). So you will get the following benefits in your first year of ownership:
*$300,000 cash check
*$250,000 depreciation deduction (each year for next 20 years)
*$310,000 energy savings (this will increase each year as energy prices increase)
Total benefits in first year: $890,000.00
(You only spent $1,000,000 on the renewables, because you already owned the building)
Now you can see the financial benefits of the "new economic system".
The best in the business, most knowledgeable on renewable energy projects is BBAR Inc.
(http://www.benboothe.com) also known as Boothe and Associates. (That's me). The Appraisal Institute has published articles indicating that properties that utilize renewable energy, increase their value by a minimal factor of 1.2 to 1.8 times. $5,000,000 x 1.2 to 1.8 =$6,000,000 to $9,000,000. This confirms our capitalization example above of taking the savings to energy costs and adding to the NOI for a new calculation of capitalized value. Your new appraised value will be beneficial to both lenders and investors.
Think now. Who can be against a garden? Place a garden greenhouse and invite the public to come and enjoy and plant "for the future". A greenhouse or high tunnel is perfect for a retail center, industrial campus, hotel, retirement center. The key is the public relations. The media will love it. The most effective in this arena is: Cornucopia Enterprises LLC (http://www.cornucopia-enterprise.com) as they have these greenhouses that are powered with solar panels, small wind turbines that provide energy for irrigation, solar panels for lighting and fans. It is a self sustaining system ideal for today's generation. With a stress on drip irrigation to save water, proximity to urban centers to save transportation, and organic foods, this connects with the psyche of this new world we must function in, and successful business leaders see it.
Get off of your "negative inertia" (now in West Texas we used to use a word, also used for a donkey) and get engaged. Get you smartest most energetic person working on this. If you need help, we suggest these as the best to give you the tools and contacts to make it happen:
Appraisals of projects including value benefits of renewables: BBAR (http://www.benboothe.com
Consulting and feasibility, (road map). Environmental Solutions (http://www.environment-solutions.com)
Renewable Equipment for Local Building Projects: Wind Inc. (http://www.wind-inc.com)
Greenhouses for company sponsored community garden projects. See this video and the founder of this company. This company is a public relations dream for your project, and does something positive for education, for youth, for the community.
Cornucopia-Enterprise LLC (http://cornucopia-enterprise.com
This sentence came into my mind, I do not know why. I later learned that it is from a scripture of the Hebrew and Christian Bible. It projects positive energy, and I share it with you as you do your new project.
"The Windows of Heaven will open and pour down their blessings upon you."