Different Economy Requires Different Strategies
THIS ECONOMY IS DIFFERENT, IT REQUIRES DIFFERENT APPROACHES TO SURVIVE AND SUCCEED.
HOW THIS NEW ECONOMY WORKS.
- The U.S. economy has fundamentally changed. Consider the ironic situation.
- The stock market has made investors record highs during the 18 months of the worst recession in 40 years.
- Economists confirmed that by traditional standards the United States began a “recovery” over 16 months ago, yet more Americans are at record high unemployment rates and millions more are employed but at minimum wage jobs, representing “underemployment”.
- Small businesses are failing throughout the nation by the thousands for lack of capital, reserves and with reduced credit lines.
- Banks are flush with cash, but refuse to lend to their communities
- SBA (Government Guaranteed Loans) are larger and more liberal in terms than ever in history, yet few people are taking advantage of them.
- The Federal Reserve Bank just informed States that it will no longer be able to issue "guarantee paper" to protect them against large bank failures.
- Washington just informed all States that the Federal Government would not help them in financial crisis, because of risks of default if politicians do not "fund" and agree upon a final Federal Budget.But, we are seeing some pick up in the economy, by certain knowledgeable businesses, using a new paradigm of methods.
1. This week I visited with a real estate developer in New Mexico. He builds “green” properties. He is a very successful businessman, has perfect credit and over 40 years experience and good reputation, yet his banks will not finance new construction or development loans.
“They advertise that they have money to loan, but they make it so hard, and so expensive, that no one would want to” he told me.
His solution. “I am going to the USDA which has infrastructure and development loans available, especially if my buildings have renewable energy or green energy equip.
• He is now putting solar panels, wind turbines, solar water heating, and energy efficient components in all that he builds.
•He is utilizing a real estate appraiser (http://www.benboothe.com) who will recognize additional value added for the energy savings amenities that he is adding to the buildings.
•He is using a realtor/broker who understands and specializes in “green” properties.
•HIS PROPERTIES APPRAISED FOR 20% MORE BECAUSE OF GREEN DESIGN AND SOLAR APPLICATIONS.
2. An executive who is planning to put in a new manufacturing plant. He told me that these were his keys to financing.
a. He has stopped using traditional banks for financing.
b. He is using insurance companies and private investment firms for development loans.
c. A portion of his initial start up will be funded by an “economic development” grant because in his manufacturing process, he has designed a new energy efficient system that qualifies his company for grant incentive funding.
d. He is utilizing a real estate consulting company that will provide recognition and value to the “green” aspects of this company in appraisals.
3. A group of businessmen in the Midwest recently told me that they too had been forced to stop using their traditional commercial banks. Their method.
a. They pooled their assets and created their own investment fund
b. They leveraged their business projects with new, larger SBA loan program guarantees and utilized an SBA loan specialist. We are seeing slow recovery and deals are happening.
But it is more important than ever that business leaders be flexible to understand the new economy.
IF YOU CONTINUE TO DO WHAT YOU HAVE DONE YOU WILL CONTINUE TO GET WHAT YOU HAVE GOTTEN!
Also, you should know that you need an appraiser and environmental consultant who will recognize the value of your new approach and is willing to provide the written documentation, environmental reports and appraisals that document financial legitimacy to your “green” focus, loan applications, and grant applications.
http://benboothe.com is qualified, ready and eager to help you in this part of the new economy. Call us: 888-628-1561.
4. Yesterday I spoke to a businessman who wants to put in a new manufacturing facility and this was my advice to him:
1.Check what local, state and federal incentives are available
2.Speak to the head of departments of the USDA, SBA, EPA, Dept of Commerce, and your State Economic Development Office. There are some very good programs available.
3.Find out where the private money pools, private banks, and private investors are. There are many in the USA, India, and Europe.
4.Insert green technology, solar, wind, solar water, high efficiency equipment, sustainable design into everything you do.
5.NOTE: Regulators and investors like renewable energy. Those buildings and products rent for more, have proven higher occupancy rates, and higher appraisal values.
6.Be sure you use an appraiser and accountant who understand renewables and the economic implications, as well as "grant, incentive and how to capitalize and present value operational savings from expenses with green improvements."
7.Hire an expert, such ashttp://www.benboothe.comtoget an appraiser to appraise Real Estate to find low cost bargains and consider purchasing properties that have the following above average investment potential.
Invest in food production land, the best properties have water. But also 10, 15, 50 and 100 acre tracts near cities will work if converted to "Green House" food production centers, powered by wind and solar, so as to vastly reduce energy and food costs.
•Ben Boothe, Valuation Expert confirms that the following industries appear to have much potential: Medical Services, Food Production, New energy delivery systems such as batteries, electric charging fuel stations, garbage/recycling and waste removal companies.
Environmental Consultants has done much research on the emerging "Desalination" industry, and this could be a huge growth sector in the USA. Environmental consulting will become more important than ever and will be a growing industry, both for emerging industry and for more checks and safeguard inspections on existing industry. Two industries to avoid: Deep Ocean Drilling, and Nuclear Power Generation.
Give us a call and we can present to groups, business boards, in either business like Power Point strategy sessions, or in larger banquet and Key Note assembly.
Give us a call. 800-379-8048, ask for Ben or Saneh.
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