roi december issue

6
CHRISTMAS EDITION

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This is the last publication of the year as we look forward to close yet another cycle working together. Our December edition of the ROI magazine includes details of the signature project which is a large industrial/commercial complex situated in Philadelphia, PA. Sam Ally, our VP of Business Development goes in depth over how to grow your wealth with current market opportunities and our progress report in this edition is about our latest Philanthropic activity in the Dominican Republic. The last article is from the desk of Rick Melero where he puts history in perspective and shows you how real estate cycles have worked and also gives you a piece of history to understand how trends in real estate are created.

TRANSCRIPT

Page 1: ROI December Issue

InvestIngCommercial

Residential &

C h r i s t m a s E d i t i o n

Page 2: ROI December Issue

Originally settled by colonial Swedes in 1643, TinicumTown-ship known as Tinicum Island is the site of the first perma-nent European settlement in Pennsylvania. One of the last large rural townships between Philadelphia & New York en-compassing over 30 square miles, “The Island” has a strong agricultural history and is home to the John Heinz National Wildlife Refuge at Tinicum, attracting visitors year-round.

This predominantly “blue collar” and agricultural river bank region is preparing for an era of abundance. History will soon combine with modern technological advances, as some of the country’s top businesses will take up residence & operate within the spacious confines of the Airport Business Complex. Originally built in 1945, the property is situated on over 144 acres of prime real estate. 49 acres previously determined as excess has been leased to Federal Express Ground who will build a new industrial complex to serve as their eastern seaboard hub.

There are 33 buildings in the complex currently offering over 1.5 million square feet of net rental area.

Highlights

• 144.38 Acres of total land area• 33 buildings that offer 1,535,023 sq. ft of net rentable space• 83% industrial area & 17% office

Signature Project: commercial

Airport Business Complex Philadelphia PA

Page 3: ROI December Issue

A s Vice President of Business Development I meet and speak with Investors, Wealth Managers and other industry professionals around the U.S. and abroad. It’s my job to

identify investor trends to help us stay ahead of market condi-tions; where they invest, what they invest in and more specifically who they invest with and why. At a recent mastermind session we discussed the strategy and importance of forging Strategic Alliances, and the long term benefits of doing so. As entrepreneurs & businesses continue to leverage each other’s strengths, there’s a hot new trend coming out of family and wealth management offices around the country.

Families across the U.S. are combining their funds and resources to grow their portfolios, and in many cases start building a real estate portfolio. They believe that the market is bottoming out and acquiring real estate or “hard assets” now will create the foundation for a successful and long term investment plan.

As our mastermind discussion continued, we identified several benefits associated with what we’ve now come to know is, the “Individual Joint Venture.” Some of those benefits include:

• MultipleAcquisitions• LargerAcquisitions• CashFlowingAcquisitions• CompleteCheckBookcontrolof theirMoneyClubs,networkingeventsandforumsarebeingformed(Strategic

Alliances) to recruit additional partners and identify all available resources and opportunities to ensure their long term success. It’s no longer just one deal. It is about multiple acquisitions, diversifica-tion, taking control of their financial futures.

There are pitfalls, of course (thus theneed for consultants).

Families Growing Their Wealth Together

Families with experience in the real estate market sector, who are now managing the money of other careful investors want, actually need to put structure and controls in place. They also need to figure out how to report to their new partners. Passive and active investors alike need to know typical terms and protect themselves and their assets legally.

Families without real estate holdings as well as those with under-performing retirement savings vehicles (401K, IRA,CD’s,MutualFunds) see the opportunity here too, of course. They want to align themselves with smart, experienced investors and groups that have the systems, expertise and opportunities they seek.

These same investors and families are now choosing HIS Capital Group as their resourceand investment portal because of our: Sound value based invest-ment strategies, reporting that provides complete transparency and accountability, along with over 110 years of combined real estateexpertise. Our business continues to grow and in large part due to

the Alliances we’ve establish along the way. If you haven’t talked with us yet about your investing goals, perhaps, learning why Dave ColeNationally recognized retirement consultant andSolo401Kexpert refers his clients to us:

“During the last fifteen years of working with real estate inves-tors I find a common challenge that almost everyone voices.

Where can I find genuine investment opportunities from reliable sources?

IhavenoreservationswhatsoeverinrecommendingHISCapitalGroup.Thecompanyremainstruetoitscorevalues;treatingeachinvestorwithrespect,providingfulldisclosureandremaining100%transparent so the investor is always up to date on the progress of each project.

The last few years has taught everyone a valuable lesson. You must become a good steward of your own money. This means tak-ing back control of both your money and your investment choices.

I have no doubt that after you explore all that HIS CapitalGrouphasavailableandtheirblueribbonstandardofdoingbusinessthat you will be pleased to add their products to your portfolio.”DaveCole fromPersonalSuccessPlanning,LLC

If you would like to learn more about an individual Joint venture, I canbe reachedDirectat407-494-3329.

WishingYouandYoursaveryMerryChristmasandaHappy,HealthyandProsperousNewYear!

Sam Ally

From the DeSk oF Sam ally

Page 4: ROI December Issue

ProgreSS rePort

Talking Hands, Listening EyesOur investment approach is fueled by our Core Beliefs.We believe in the power

of "sowing seeds and reaping a harvest." Empowering passive investors to create generational wealth, while inspiring them to pursue philanthropic endeavors across

the globe is our mission.In the true spirit of the Holiday Season, it is with great pleasure we bring you the first

in a series of articles about our “Why” & introduce you to our Director of Philanthropic Activity,RochelleMelero.

Letter from FriendsAs an organizationwe believe in the importance of not only being a good steward of

finances but also being a good steward of our time and resources to influence and feed nations. To encourage and foster the spirit of “good will”, over the coming months I hope to provide a glimpse into the lives we have encountered along the way.

RecentlyIreceivedanupdatefromourdearfriendsLenandMigdaliaMoraleswhocre-atedtheschoolTalkingHands,ListeningEyes inConsuelo,DominicanRepublicbecausethere was no school in the area for the deaf. The following is a brief excerpt from their correspondence:

“Consuelo is locatedintheSoutheastpartoftheDominicanRepublic; ithasapopula-tionofapproximately65,000people.TheexactpercentageofdeafpeopleintheDominicanRepublic is unknown because the government has not completed a census but Googlereports it as a staggering rate of 10%. Some of the causes of deafness: hereditary, poorprenatalcare,prematuredelivery,meningitis, somefamilieshave4and5childrenalldeafor deaf and blind.

AtonetimeintheDominicanRepublic itwasthoughtthatthedeafwereacademicallychallenged and unable to be taught.We are proud to announce that after 18months ofpreparationtheschoolhasopenedwith30inattendanceranginginagefrom3to38!Theyare taught how to read, write, and do basic math. Your sponsorship provides them a hot lunch daily, but most importantly makes a lasting investment in their future by ensuring they receive the necessary education that will allow them to communicate with others.”

One person can make a difference, to learn more about our philanthropic pursuits or to SponsoraStudent,pleasecontactmeat877-452-6569x105.

HaveaMerryChristmas&aHappyNewYear,RochelleMelero

www.talkinghandslisteningeyes.com

Page 5: ROI December Issue

From the DeSk oF rick melero

What does history tell us about real estate and business?

During uncertain economic times, many investors tend to allow fear and emotions to dictate the actions they take leading to decisions that can hinder their ability to capital-

ize on unique opportunities. These investors generally follow the“herd” because they don’t understand the history of real estate and business cycles. In these times however, there are also “pioneers” who are students of the lessons taught by history; positioning themselvestocapitalizeontheopportunitiesduringthelifetimeofthoseopportunities.Letmetakeyoubackthroughtimetogiveyousomeperspective.LadiesandGentlemenmeet,John Jacob Astor:

John Jacob Astor was an American business man, merchant and investor who was the first prominent member of the Astor Family (WaldorfAstoriaHotel)and the firstmulti-millionaire in theUS.Born July 17th 1763 he became the first multi-millionaire in theUS. When he moved to the US, he built a fur-trading empire that extended throughout the Great Lakes region and Canada, laterexpandingintotheAmericanWestandPacificCoast.Intheearly

19thcenturyhediversifiedhisbusinessventures intoNewYorkCity realestate.

In the 1830s, John Jacob Astor foresaw that the nextbigboomwouldbe thebuild-upofNew

York, which would soon emerge as one of the world’s greatest cities. Astor with-drewfromtheAmericanFurCompany,as well as his other ventures and used his fortune of $250,000.00 to buy and

develop large tracts of Manhattan real estate that ultimately grew into$20Milliondollarsbythetimeofhisdeathin1848.Predictingthe rapid growth northward on Manhattan Island, Astor purchased more and more land beyond the current city limits.

Astor rarely built on his land, and instead let others pay rent to use it.Using this real estate strategy (which is now commonlyreferred to as “Buy nHold”) to build his wealth, his $20milliondollarswastheequivalentof1/107oftheUSGrossNationalProductatthetime.TheGrossNationalProductisthemarketvalueofallproducts and services produced in one year by labor and property supplied by the residents ofUS. In 2010, theUSGrossNationalProduct (GNP) was $14.6 Trillion so if we were to measureMr.Astor’swealthasapercentageofGNPbeing1/107or.93%itwouldbewellover$100+Billiondollarsmakinghimthe3rdrichestpersonin American history.

Using History as our guide, we have concluded that one consistent trendisevident.Marketswillcollapse.Infact,sincetheearly1800s,US real estate markets have experienced a major “Boom” followed bya“Bust”onaverageevery18.2years.Letmesurveythehistoryof these market corrections.

The first American Depression 1819: This crisis resulted from internationalconflictssuchastheEmbargoActof1812andcausedwidespread domestic foreclosures, bank failures, unemployment and a slump in agriculture and manufacturing. This panic came right after the end of economic expansion that had followed the war of 1812.TheUSGovernment borrowed heavily to financethe war of 1812 which caused tremendous strain on the banks’reserves.

The Panic of 1837: This financial crisis or market correction was built on a speculative fever. Some causes include the economic policies created by PresidentAndrew Jackson (“I killed the bank”President),whorefusedtorenewthecharterofthe2ndBankoftheUS. (FEDERALRESERVE).Most of the blame is linked to theBanks for funding speculation and for the introduction of excessive papermoney (notbackedbygold/silver).Sound familiar?

The Panic of 1857: This panic was caused by the declining international economy and over-expansion of the domestic economy. It all started inBritain in 1844whenBritish banks gave exclusivenote-issuingpowers to theCentralBankofEnglandwithout gold

orsilverbacking.Theyearsbeforethepanicof1857werevery prosperous, many banks, merchants and farmers had seizedtheopportunitytotakeriskswiththeirinvestmentsand as soon as market prices began to fall they then began to experience the effects of a financial panic.

Long Depression of 1873 -79: (and longer in someother countries). Known as the Great Depression untilwell into the crash of 1929; now known simply as theLongDepression.Causedbythe fall indemandforsilverinternationallywhichwasfollowedbyGermany’sdecisionto abandon the silver standard. The boom generated before the1873-1879bustwasgeneratedbytherailroadconstruc-tion after the American Civil war with 33,000 miles ofnew railroad tracks laid across the country between1868and1873.

Economic Depression of 1893:(verysimilartothepanicof1873).Again,anothereerilysimilarsetofcircumstances,the collapse of railroad overbuilding and shaky railroad financingwhich set off bank failures.The Panic of 1893was the worst economic depression the US had ever expe-rienced at the time.

Great Depression of 1929: In most countries started in 1930 and lasteduntilthelate30sandmiddle40s.,IntheUS it started after the passage of Smoot-Hawley Tariff which was an act sponsored by SenatorSmootandRepresentativeHawleytoraiseUSTariffsonover20,000importedgoodstorecordlevels. Black Tuesday became known worldwide for the stockmarket crash ofOctober 29th, 1929.Once again, an all too familiar course of events takes place. Devastating effects in countries rich and poor; Personal income, tax revenues, profits and prices dropped, while international trade plunged by more than 50%due to theTariffs.US unemploy-ment rose to25%.

Bust of 1974: although there was no severe economic depression as witnessed in the 1930s,economic growth rates were lower than in previous decades. I am confident many of you remember experiencing high double digit inf lation, high unemployment and double digit interest rates. Economicallythe1970sweremarkedbytheenergycrisiswhichpeakedin1973and1979.Remember“Odd-Even” days at the local gas stations?

Can you see a trend? Now armed with thepower of this information, look back at the times when John Jacob Astor decided to invest in real estate and you will learn that he became most bullish as he saw the markets declining and while everyone else followed the “herd” of fear, he becamea“pioneer”.Nowasthen,savvyinvestorsand entrepreneurs alike have embraced the lessons of history and positioned themselves accordingly to capitalize on the incredible opportunities oftoday. Many of these savvy “pioneers” have formed alliances with our organization. Whether youdo business with us, or go out on your own, we encourage you to remove fear out of the equation and become a pioneer.

Page 6: ROI December Issue

Merry C

hristmas&

Happy N

ew Year!

Merry Christmas&

Happy New Year!

The Bottom Line:

We provide everything you need!

www.HISCapitalGroup.com

We provide you the education, research, maps, data, tools, opportunities, process, due diligence checklists, and

contacts, along with personal, financial, and asset portfolio tracking and analysis to help you chose the right income-producing assets to add to your portfolio.