Vol.1 Issue 47 April 1st. , 2004
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of the Week:
"I have 42 businesses that I own and they all made money
last year. Some of them set records. I see a lot of goodness
in the economy. I feel very bullish."
John Anderson, Chairman of the Anderson School of Business and
CEO of Topa Equities Forbes' 400 list.
Mr. Anderson oversees 42 companies in banking, real estate,
insurance, wholesale beverage distribution & more .
in Paradise: Ballooning Rents Chase Three Popular
Restaurants Out of Santa Monica. Is Real Estate Ready
To Bust? By Natalie Pace, CEO, NataliePace.com.
Report Card: Dont Bet Without Looking At Your
Cards! By Natalie Pace, CEO of NataliePace.com.
Ways to Protect Your Assets Against a Major Terrorist
Strike on U.S. Soil by Natalie Pace, CEO, NataliePace.com.
Terrible Ts: Tenants, Termites, and Toilets. Investor's
Guide To Buying and Owning Rental Property By Nikki
Deloffre, Real Estate Consultant, email@example.com,
Rock Stars: By Gary Kennedy, technology
entrepreneur, former president of Oracle USA (a reprint
from an earlier issue).
10 signs the Company is Using Fuzzy Math.
at a Glance: 10 Fast Quotes from the Brightest Minds
on the Street .
Stewart: Should She Fry in Prison or Bake on the
Tele? Cast your vote!
Beautification: Spotlight on Para Los Ninos, a
nonprofit company on Skid Row in Los Angeles that works
to improve the lives of families living on very limited
Conferences, galas, networking, teleclasses, seminars
and other special opportunities! Check out what's happening
online at the Calendar section of the web site.
Rents Chase Three Popular Restaurants Out of Santa Monica. Is
Real Estate Ready To Bust?
Pace, CEO, NataliePace.com
it's perceived as a cash cow, has real estate become the riskiest
play these days? Los Angeles has long been a difficult climate
for development and business, but has Southern California become
most investors, I have a stomach for these things. An uncomfortable
feeling starts in your gut, and later on you find out the company
you were concerned with went belly-up (think long distance rates
at under six cents a minute, and the subsequent collapse of telecommunications,
namely Global Crossing and WorldCom). This time it wasn't a gut
instinct, really; it was more like a hunger pang… And the trek
I traveled to satisfy my cravings left me with an extremely bad
taste in my mouth.
was a rather desperate craving that had me careening into the
parking space on Montana Avenue, one I get at least once a month
for Wolfgang Puck's squash soup with a swirl of red pepper sauce.
I'd been to an hour spinning class, which feels like the
equivalent of the L.A. Marathon, and I was starving, ready to
devour the bread plate with wild abandon. I thought the gods were
on my side that evening, when I found a parking spot just two
doors down from the popular eatery. As I skipped up the sidewalk,
however, things began to look amiss. Where was the valet? Why
was the street so empty? Restaurants are sometimes closed on Sundays
or Mondays, but Wednesday?
was black, and on the massive door that I'd flung open many an
evening, surrounded by a crowd of friends all bubbly with conversation,
there was taped a simple flyer thanking me for my patronage over
the years. A flyer? No explanation? Was Wolfgang arrested or something?
cravings, at that point I just needed a little fuel to get me
to the next best stop—Polly's Pies. So, I swerved into the Seattle's
Best, just a few doors down, for a quick bite of scone to stave
off the hunger pangs. There, where bad poetry and worse body odor
once thrived, as joggers and spinners and babies with poopy diapers
awaited their drinks, was yet another empty café. Lights
out. No lattes. Certainly no scones.
Polly's Pies is just a few blocks down, on Wilshire Boulevard.
Just minutes away really. Reminding myself that I was already
over my ticket allotment, I forced my lead foot to ride lightly
on the gas as I pulled into an empty Polly's Pies parking lot.
It was the first time in decades that I didn't have to circle
through the lot at least once to find a space. There again was
the dreaded flyer, and the same ghost town where lemon meringues
and honey-barbecue ribs once flourished.
three popular restaurants abandoning the most beautiful place
on the planet—Santa Monica—in the same month? Is there something
investors should know about this exodus? And perhaps more importantly,
will the problem get solved quickly (please, please!) before the
only places left to eat at in my hometown are malls and self-service,
fast-food joints? (AGGHHH!!!!)
figure out my own darn food problem, but if you're an investor
in the very popular, high dividend-yielding REITs, the closest
most of us get to owning our own skyscraper or business development,
you'd be well-advised to heed some of the warning signs and statistics
below, and to a reassess your portfolio (something the experts
recommend doing at least once a year). High land values and high
vacancy rates are not limited to Southern California.
You know rents
have topped out when popular, well-frequented restaurants, like
Wolfgang Puck's Café, Seattle's Best and Polly's Pies,
abandon their leases in one of the world's most desirable cities,
Santa Monica. Wolfgang Puck's spokesperson, David Beckwith, played
his cards close to the chest, merely saying that the lease was
up and I was welcome to enjoy the food at Wolfgang Puck Express
instead, exclamation point! How exciting! Who's going to miss
the waiters, the banquettes, the full bar, the fresh fish and
the colorful, unique interior, when we can stuff cheesy pizza
in our face and carry our own trays over to the outdoor community
seating area, where music school dropouts muff up their scales
with the amplifier turned on ten! I smell a rat in Mr. Beckwith's
phrase, the "lease was up," but I need an entrepreneur
who is honest enough to spit up the numbers.. Word on the street
was that rents had doubled.
to Eddie Sheldrake, who owns Polly's Pies Bakery Cafes with his
brother, Donald, it was basic math. When the rent goes up 275%,
"that's too much for us to handle," Eddie said. The
new owners were asking for $22,000 a month from a family-style
restaurant that was priced to pay $8,000. Eddie acknowledged that
the previous owners, with whom he had a "great" relationship
for 28 years, had a right to sell the property and that
the new owners, who, according to Eddie, paid a whopping $2.2
million for the restaurant, have a right to ask for their price.
"I'm not saying that's unreasonable… But Santa Monica is
pushing higher wages, and they're not too cooperative with their
zoning laws." The bottom line is that Eddie and Donald will
move onto a friendlier place where a restaurant owner can afford
to keep the burners on! If high rents and bureaucracy affect the
small business owner, who must in turn vacate and look to establish
business elsewhere, imagine what happens to the large developer,
who spends years, sometimes decades, trying to get the blueprints
off the ground, and then looks on with horror to find his customers
(business tenants) running for the hills of suburbia, Arizona
Equity Office Properties (NYSE: EOP) with a heavy presence in
Southern California commercial real estate are suffering (still)
with high vacancy rates, and trying to stay alive with Senior
Note offerings. Wonder how the seasoned real estate executives
are responding to the climate? They are taking their chips off
the table by the millions. According to Money Central, which updates
its insider trading statistics daily from the SEC database, both
Equity Office Properties (NYSE: EOP) and Arden Realty (NYSE:
ARI) saw consensus executive cashing in to the tune of $28
million and $32 million respectively. Not one insider at either
company bought stock in the company within the last twelve
months. While trading on insider trading is not a reliable market
strategy in a vacuum, it's certainly a warning sign, especially
when coupled up with "Gone Fishing" flyers at formerly
top Shangri-la eateries.
to Paul Woods, CEO of Odyssey Advisors, California is downright
hostile to business, which is a very large consideration to investors
who are interested in investing in REITs, particularly REITs that
are engaged in commercial real estate in Southern California.
According to Paul:
unfriendly state in the world is Hawaii, but it doesn't count
because nobody goes there. They drive the best and the brightest
out of there consistently with high taxes, excessive regulations,
the inability to build infrastructure and the expense of doing
business. California is the worst of the 48 states, according
to every survey. On the East Coast, it's probably New York
and Massachusetts. People are more likely to move to friendly
states like Nevada and Arizona, where they actually let you
build infrastructure, taxes are lower, workman's compensation
insurance is lower, and there are fewer regulatory burdens.
States like that are actually glad to see you, if you want
to open a business. That's the reality. That's why everybody
is leaving California.
Santa Monica become a carousel of collapsing businesses and a
fast-food, tourist Mecca? Will the new landlords realize that
they overpaid for their slice of heaven and cough up real-world
late 1980s, when exuberant, rich Japanese businessmen bought up
prime U.S. real estate at top dollar, only to sell it off in fire-sells
in the 1990s when Southern California real estate collapsed under
a weakened local economy and multiple catastrophes (including
riots, floods, an earthquake, fires and mudslides) and the Asian
economy fell through the floor? According to Realtor.org, "The
sell-off proved to be a large boon for American investors as they
[were] able to purchase ‘distressed assets' at sharp discounts."
So much for the theory touted by real estate brokers (salesmen
working on commission) that land values in California and New
York never go down.
high real estate prices and rents pose another challenge to business--recruiting
top-notch talent. Even successful Los Angeles real estate developers,
like Caruso Affiliated, builders of the hip new destination center,
The Grove, have trouble recruiting out-of town staff, who are
simply unwilling to overpay for housing and crappy public schools.
Rick Caruso, CEO of Caruso Affiliated, says, "When we recruit
someone out of the city, it is always a challenge to get them
to deal with the housing prices and the schools. We showed someone
Thousand Oaks (a Los Angeles suburb), and he said he wasn't going
to drive 45 minutes to get to work."
note: The 45-minute commute from Thousand Oaks into midtown Los
Angeles is a pipe dream. With traffic, it's more like two hours.]
real estate has been the golden goose during the early 2000 recession,
emptying cash (through refinancing) into the Southern California
consumer's wallet. But can real estate continue to carry the weight
and is the recovery as sound as it seemed in the glory days of
8.2 real GDP in the third quarter of 2003? Even though John Anderson,
the Chairman of the Anderson School of Business and Management
at UCLA, admits that real estate has gone crazy, he is bullish
on the economy and thinks that land values will remain strong.
Rick Caruso agrees with Anderson, saying that all of the economic
indicators have been positive and that, at a time when money is
virtually free, you're actually making money just by borrowing.
However, Tim Leiweke, President of the Anschutze Entertainment
Group, owners of the Staples Center, has a slightly more measured
evaluation about the economy. "Probably the best indicator
we have of how the economy is doing, is the concert company. We
did roughly $400 million through that division. It's still soft.
When you see acts that price their tickets at the high end, it's
tough. There isn't as much discretionary income as you saw a few
Center facility hosts the Los Angeles Lakers, the Clippers, the
Sparks (WNBA), the Avengers (arena football), the Kings and multiple
concerts each year. . Certainly on Laker nights, when fans could
buy a car with the cash they spend on their suite, there's no
hotter ticket in town (and perhaps the U.S.). But the Staples
Center was only a part of the Anschutze Entertainment Group's
planned urban center. AEG's has had plans in the works for a new
content campus that surrounds the Staples Center, with a hotel
for business travelers and a new 7000 seat theatre, so that awards
shows won't ever leave Los Angeles again. "L.A. is where
people want to come to, especially in February... Who wants Bristol,
Connecticut when it's zero degrees and snowing?" Leiweke
the spokesperson for AEG, isn't giving hard facts on how long
the dream has been postponed, how many revisions have been made,
how many deadlines and projections has been missed or how much
over budget the project is. He says, rather, that L.A. Live has
been at the forefront of the minds of the executives at Anschutze
Entertainment Group since 1997, when the Staples Center deal was
signed. According to Roth, "AEG is continuing to work with
the City of Los Angeles to define a financing package for the
development of the 1200 room convention center headquarters hotel,
which will also include a 7,000 seat live theatre." AEG remains
"solid in their commitment" to make this much-needed
hotel a reality, and are "hoping to break ground on the billion-dollar
LA Live development by the end of the year," according to
Roth. Seven years? The company may have the deep pockets for such
a long day's journey into reality, but a seven-year delay can't
be easy on the wallet, and would likely bankrupt a less resourceful,
less tenacious company.
and Caruso are undoubtedly the top of the top, at the apex of
what real estate developers can hope to achieve in the most business
unfriendly state in the continental U.S. They defy the odds and
flourish in the hostile business environment in Los Angeles, calling
the climate a barrier to entry for the weak. Still, even among
themselves, they are mildly amazed when dream projects become
a reality. "I have a huge amount of respect for Rick [Caruso]
getting the Grove done," Tim Leiweke says. "Nothing
happens easily this city. You better be prepared to jump, shout,
scream and drag. It's a difficult time getting anyone to focus
on your project. We have Attention Deficit Syndrome. You have
to be really brave. The days of easy development are over."
so are the days of an easy, enjoyable, home-cooked meal at a local
restaurant within walking distance. As I cued up at the Wolfgang
Puck Express Café on the 3rd Street Promenade
in Santa Monica, and schlepped my own soup over to a crowded public
area, I couldn't help hoping that the real estate bubble would
burst (as it has so many times before) and bring back businesses
who can still make an honest buck providing a reasonably priced
meal in a comfortable setting. If not, where will the locals get
their meat loaf and chicken potpie?
Caruso, John Anderson and Tim Leiweke spoke to business leaders
at the Beverly Hills Economic Summit on February 5, 2004.
Natalie Pace does not own shares in any company mentioned in this
Bet Without Looking At Your Cards!
Pace, CEO of NataliePace.com
high yielding dividends and a reasonably low reward to risk ratio
(compared to other equities), many money managers, like Paul Woods
of Odyssey Advisors, consider REITs to be a staple of the client
portfolio. Real estate has been a hot ticket over the last few
years, but that doesn't mean that all REITs are created equal.
How do you identify the brick house from the straw hut, when all
you've got is a stock chart? As Paul says, "Avoid investing
in REITs that have holdings in states that are hostile to business…
California is the worst of the 48, according to every survey.
On the East Coast, it's probably New York and Massachusetts."
Due to the
recession and businesses cutting back on costs, including leases,
many REITs, especially commercial landowners with presence in
Northern California, Boston, Southern California, and New York,
where the technology bust hit with a vengeance, are still struggling
with high vacancy rates. High-profile businesses are relocating
to more business-friendly states. How does that translate into
the bottom line? Equity Office Properties (NYSE: EOP) just issued
$1 billion in senior unsecured notes. $990.4 million cash
proceeds were used to repay outstanding balances and to settle
two forward-starting interest rate swaps. Both Equity Office
Properties (NYSE: EOP) and Arden Realty (NYSE: ARI), two REITs
with commercial office buildings in Los Angeles, saw consensus
executive cashing in to the tune of $28 million and $32 million
respectively. Not one insider at either company bought stock
in the company within the last twelve months. Arden Realty's income
was $58.5 million, just 34% above the income of National Health
Investors, a REIT with only $800 million market capitalization,
compared to Arden's $2.102 billion market capitalization. Investors
are earning $1.57/per share at National Health Investors, compared
to Arden's $.92/per share, with much less debt, and far fewer
For the buy
and hold investor with holdings in these (or other) REITs, Southern
California, Boston, New York and San Francisco all sport the top
universities in the nation, and experts predict, over the long
term, that these talent and think tank epicenters will rebuild
and prosper. Despite hostile business environments, these cities
are also some of the most popular places to live and visit in
the world. In the meantime, however, if the businesses haven't
stabilized before inflation and rising interest rates kick in,
the risk scenario gets even more troublesome and the share price
is likely to reflect that.
of the eight REITs listed in the attached REITs report card
HERE TO REVIEW AND PRINT), most have holdings in other
more business-friendly states. All eight companies are companies
selected by money managers and venture capitalists as their favorites
(including Arden and Equity Office). With the high-yielding dividends
and REITs returns over the last few years, money managers are
willing to accept a few "warts" to rake in the dividends.
NataliePace.com's forensic review of the companies revealed that some
warts were goiters, however, and readers are well advised to carefully
consider all of the information listed in the report card. For
instance, Pennsylvania R.E.I.T. gets an average 7 rating from
analysts (according to Zach's), but it's riskier than you might
think, based upon that rating. According to a recent company press
release, "If PREIT does not obtain retroactive relief from
the IRS, it will owe corporate income taxes and interest [and
perhaps penalties] for the years 2001 through 2003…and it may
not have access to sufficient capital to make such payments."
As most of us are all too keenly aware, the I.R.S. is not known
for being forgiving, and with one of the highest debt/equity ratios
on the report card, PREIT's access to new capital would not be
one company that stands out heads and shoulders above the rest
of the REITs in this report. It is the only company that is
buying back it's own stock. With regard to demand, it is the one
REIT on the list that can almost guarantee full vacancy and a
need to keep expanding--as it services the health care industry.
The National Health Investors (NYSE: NHI) have long-term healthcare
properties, acute care hospitals, medical office buildings, retirement
centers and assisted living facilities, 186 facilities in 23 states.
Their debt/equity ratio is the lowest on the report card, at .42.
With rising interest rates looming on the horizon, this is a serious
competitive edge. "Cash and marketable securities total approximately
74% of total debt outstanding," according to Andy Adams,
NHI's President, and "even with this unsurpassed liquidity,
our debt to capitalization ratio declined to 28.5%, the lowest
level in our 12-year history." Net income has increased 42%
from year-end 2002 to year-end 2003.
Health Investors is where I would place my bet. I'll take
a little lower dividend (NHI is the 2nd lowest dividend
on the report card) with the lower risk and higher return potential,
but I'm going to wait it out until September to add it to my tracking
list. My guess is that rising fuel costs, a volatile presidential
campaign and the summer doldrums may provide a better buying opportunity
at that time.
Natalie Pace, the CEO and editor in chief of NataliePace.com, is NOT
a broker or financial analyst. She is an executive and a writer.
She does not own shares in any company mentioned in this article.
Ways to Protect Your Assets Against a Major Terrorist Strike on
you missed the member's only chat on March 17th, here's your chance!
Natalie Pace, CEO, NataliePace.com
wouldn't write an article on plants, animals or driving, but as
one of the few people who cashed in substantial gains in 2001
(without shorting) during a bear market year that saw the first
strike on American soil since Pearl Harbor, I feel a bit qualified
to talk about protecting your assets against terrorism. It doesn't
take a crystal ball, but it will require a gut of steal. You don't
have to rush out and buy into certain industries (say, defense)
over others, although certainly some asset classes will always
outperform others in certain scenarios. (The ongoing threat of
terrorism means that defense stocks are no bargain these days
You don't need to get your MBA, or learn how to read complicated
charts, or study up on your Nostradamus. In fact, to make it as
easy as possible, I've outlined the strategies that kept my portfolio
healthy during uncertain times into a simple top ten list. (Cut
and paste in cupboard in case of emergency!)
1. Don't panic.
It's not the end of the world. The U.S. economy isn't that fragile.
Americans are resourceful, hard-working, imaginative, innovative,
inventive, pull-together people. If you panicked and sold in September
of 2001 AFTER 9.11.01, you lost on average -35% (NASDAQ) and -17%
(DOW). If you waited just three months, until December 2001 to
sell, on average, you would be looking at 10-16% GAINS (NASDAQ)
and ZERO LOSS (DOW).
taking your profits the FIRST TIME you are in a position of profit.
(Look for this to occur within 3-6 months). My personal experience?
I had only a small amount invested in 2001 (a bear market year),
in one biotech (Genentech, DNA:NYSE) and in one technology company
(LoudCloud, LDCL:NASDAQ). (I had the bad timing of BUYING IN during
August 2001. Imagine how I felt on 9.11!) On December 27, 2001,
I cashed out BOTH stocks for combined gains of over 200%. If I'd
let those gains ride in 2002, most of those profits would have
been wiped out. By January 2003, the NASDAQ was down again below
the trading levels on 9.11.2001, at -25% and the DOW was still
off by -20%
BUYING INTO your favorite companies right AFTER the attack. If
you bought into the NASDAQ after 9.11.01, you were looking at
30% gains just four months later, in January 2002. During the
same period, the DOW was up, on average, 12%. It's called BUY
LOW; SELL HIGH, and it works like a charm. By January 2004, the
NASDAQ was up 40% and the DOW was up 20%, from the low in September
2001. Great returns!
Diversification. 2003 was a great year when most investors saw
delightful returns. Has your diversification model become too
heavily skewed into stocks? Diversify your assets. Your best protection
against terrorism and other natural disasters (including market
corrections) is to not be over-concentrated in ANY ONE asset class.
Note: This includes real estate. If you've never lived through
an earthquake, fire, flood, riot, terrorist strike or hurricane,
trust me, these disasters can put you underwater on your mortgage
faster than you can say Anthrax. (Those of us on the coasts get
to experience a lot of these
) Don't have all your Lincolns
in stock, bonds or your home. Remember that CASH is the best performing
asset in market corrections, war and terrorist attacks. Liquidity
means that you are in a position to buy at the new, lower pricing
5. Take some
chips off the table now. Are you letting all of your profits ride?
Profit taking is essential to building wealth. Any gain above
12% is considered a very healthy return. If you're looking at
70% gains, and you're trying to read a crystal ball to balance
the risk of market correction or terrorist attack against the
risk of selling too early and missing out on another price pop,
realize that there is a huge difference between all and nothing.
You don't have to gamble ALL of your gains to be INVESTED enough
to capitalize on future growth. Two good questions to ask your
self are, "How much am I willing to bet on this investment?
How much am I willing to lose?"
6. Don't rush
out and buy into an Anthrax BIOTECH (without doing your homework
first). The first problem is: that's what everybody is doing,
which means that the stock might be overpriced. The second concern
is that Human Genome Sciences (HGSI:NASDAQ) has an anthrax vaccine
in Phase I trials. This is the earliest phase of human testing.
Though the initial results are "promising," this is
based on a small trial and is a far cry from an FDA approval and
mass marketing. In fact, in the headline for their press release,
Human Genome admitted that "further development will depend
on government willingness to commit to purchase." VERY RISKY.
HGSI is also a company with negative earnings, having lost $185
million last year on $8.2 million in sales. Despite the fine print,
HGSI's trading volume during the week of the Madrid Terrorist
Strike spiked from 1.46 million to 2.145 million, and the stock
was trading up.
7. Don't buy
defense stocks on the fly either. Last year, before the 2nd Gulf
War, Boots and Coots was the darling of the bulletin boards. Investors
flocked to buy AMEX:WEL on rumors that Boots and Coots was going
to win a contract to put out oil fires in Iraq, like they'd done
in Kuwait during the 1st Gulf War. Boots and Coots did win the
contract (as a subcontractor of Halliburton), but many investors
didn't know how bad their balance sheets were! Investors who bought
into Boots and Coots last April at the high of $10 bucks/share
have taken a beating of up to -70%, and are still -55% below their
8. Turn off
the Tele, and slather on the elbow grease. In most natural disasters,
the best thing to do is to clean up and rebuild. (Exceptions to
this would include Chernobyl incidents, where the best thing to
do is to get out of Dodge as quickly as possible.) Re-watching
disasters over and over again, from every perspective, is not
going to bring victims or your investments back to life. Healing
your heart and your portfolio is going to take time. Wallowing
in negative images may make you feel desperate, which could result
in a very bad decision, like selling your investments at an all-time
low, out of fear that the worst is still to come. Though that
is always a possibility, that has not been the case for a long
time in the U.S., and if it really is the Apocalypse, you'll have
more pressing worries than stocks and bonds.
9. Cash is
King. Don't forget the rule of thumb that you should always have
six months of living money in liquid assets (like Money Markets
and/or CDs). Suze Orman makes a good point that you shouldn't
put all of your cash in one long-term CD. Instead, she recommends
that you stagger the maturity dates of multiple CDs so that you're
never in a penalty position if you need to withdraw some funds.
Bonds are also very liquid.
10. Lock into
a Fixed Interest Rate. Now may be the best time to lock into a
fixed rate mortgage. Economists are predicting inflation and rising
interest rates as early as 2005. If there is a terrorist attack,
you may be looking at a real estate market correction, and if
the attack is in your neighborhood, real estate values will plummet
overnight. You will not have a choice to refinance once the value
drops beneath your loan. With interest rates at a 40-year low,
there's likely a lot of money to be saved by locking in that rate
for the years to come. You'll appreciate a stable mortgage payment
during the rebuilding period, while you're waiting for the value
of your home to return.
In the meantime,
whether you believe in security, or prayer or promoting peace,
the best RX for disaster is preparation. Make sure you're stocked
up on food, water and first aid supplies, and that you've given
your portfolio and your home a good safety check!
Natalie Pace, CEO of NataliePace.com, is not a broker or certified financial
planner. She is a media executive, a writer, a successful investor
and a respected stock picker. She owns stock in Opsware (OPSW:NASDAQ),
which was formerly LoudCloud (LDCL:NASDAAQ). She doesn't own stock
in any other companies mentioned in this article.
Terrible Ts: Tenants, Termites, and Toilets.
Guide To Buying and Owning Rental Property
Nikki Deloffre, Real Estate Consultant, firstname.lastname@example.org,
is an expert in real estate and real estate property management,
having invested in property and trust deeds since she came to
the United States from China in the 1980's. She is a world traveler,
who also owns property in Beijing, near the Olympic Village, and
speaks Chinese, English, French, Spanish, to name a few of the
languages she is fluent in.
many people, rental property is a good area for a long-term investment.
Although housing prices have fluctuated greatly over the last
twenty years, in and out of boom and bust cycles, sometimes rental
real estate property is not affected as much, primarily due to
the ability to increase the income stream from rent increases
(if rent control doesn't restrict it). Compared with other types
of investment, rental property investment has other advantages.
First of all, it is a stable and long-term investment. It is also
safe to say that the property value always goes up when the rent
goes up. [iSophia note: Rentals in Southern California are currently
at an all-time high.]
in areas such as California, which has over 1,000 people coming
into the state every day (source: Californians for Population
Stability), and a shortage of rental units due to the regulatory
and environmental barriers to construction, there is always the
need for rental units. Thus, owning rental property can lead to
steady income because you can be reasonably assured that vacancies
will be short-lived, providing your pricing is in line with the
and Minuses to Owning Rental Property
One of the
drawbacks to owning rental property is the lack of immediate liquidity
as there is usually a longer turn-around time, in case there is
a need for immediate cash. Unlike stocks, which can be liquidated
in three days, and bonds, which can be liquidated in one day,
rental property can take months. Another drawback is the actual
management of the property that one must do, with outside professional
management by giving up a portion of the rental stream, or by
self-management, which takes some effort and can be demanding
and frustrating. (Don't let the tenants ever have your home phone
number or address!)
Is it really
difficult to invest into a rental property? By doing a little
homework and getting some information, not really, especially
since there is significantly more information available on the
Internet today that will help you in this process. Start here:
out which areas are growing in population and which ones are
the local Chamber of Commerce for statistical information
on population and business growth, as well as the level of
income and real estate property appreciation.
out if there is rent control.
through different neighborhoods and see how many for rent
signs are out.
- Are local
businesses thriving or dying?
- Is there
a Wal-Mart, or other large employer coming into town, which
will significantly increase the amount of employment?
type of rental property should you get into as an investment?
basically two types of rental properties. Smaller rental properties,
which are less costly and less complicated in terms of management,
and higher multiple rental properties, which could need professional
When you are
just starting out, 2-4 units could be ideal because when you're
buying a small building, the loan company and financial institute
can lend up to 95% of the loan towards the purchase. Since the
down payment is smaller, it is easier to get into this type of
investment. Smaller buildings also mean fewer problems to deal
with (termites, toilets and tenant turnover, to name three). Thus,
you can manage it yourself reasonably easily.
to this is that the initial return on the investment might be
lower than expected, since the loan amount is higher. Income may
not be as high as one would like to have and, very often, it just
breaks even, which means a longer horizon time to earn more positive
cash flow, real estate appreciation and profit for the property
owner. Sometimes, the building cannot operate on its own. Extra
funding might have to be put in.
When you want
to branch out and invest in 5 units and over, you need to carefully
investigate the vacancy or occupancy level, tenant turnover period,
age and condition of the building and the tax impact. Usually
one can expect income immediately after the purchase. The bigger
the building is, the more efficient the building could run on
its own. The loan payment is usually lower since the highest percentage
loan that the bank is willing to lend out on a rental property
this size is 75%. If the building is newer, fewer repairs are
needed, so, the initial return should be better.
the profits you earn on your smaller unit building will help you
generate the larger amount of funds you will need to expand your
real-estate empire. You'll need a certain amount of cash for the
initial payment. When looking for a building of 5 units or over,
you have to calculate at least 25% of the purchase price as a
down payment, plus all the fees the agent charges. If you are
buying an older building, or borrowing a loan for a shorter period—say
15 years, instead of 30--your down payment could be as high as
35% of the purchase price, plus the fees. You should be sure to
include the price of professional management in your expenses
and profitability equations, especially if you want to avoid dealing
with tenants and repair. That consumes a great deal of time and
when looking for a rental property, look at:
2. Down payment
3. The loan
4. The return
that the building can generate.
a higher priced building (newer with higher rent) generates better
income immediately. There are many factors that contribute to
the return that the building can generate. Below are a few key
to the Profitability, Once You've Jumped Into the Deep End
tenants: An important aspect of owning a multi-unit rental
is screening of tenants. Ask for references. Run a credit check.
Get information on where they work. Is their income high enough
to cover the rent? If you are suspicious, you might want to include
a background check, or call their previous landlord. Ask how many
people are moving in. You should limit the number of tenants per
unit to avoid having a small village move into your apartment.
This will help prevent problems down the line. Evicting tenants
is tough and costly. Be sure to have an attorney look over your
tenant agreement, and make sure that your policies toward all
tenants are in line with the agreement, to avoid problems with
the Renter's Bureau.
Another factor one should look into before purchasing a property
is whether the building is in the area where there is a rental
control program. The Rent Control programs were initiated to protect
tenants against the slumlords, and to keep rents for long-term
tenants at a reasonable price. Rent Control mandates certain regulations
regarding the safety and physical condition of the building, and
it keeps a cap on the percentage of the rent one can raise each
year. The cap usually ranges from 3-5%. This program works well
for the low-paying tenants who lived in the apartment paying rent
before the rent control program took the effect. But in general,
it does a disservice to both property owners and tenants. For
the property owners, there are more rules and regulations to deal
with, and some rents are kept under the market value. If there
are too many rents under market value, it can put the landowners
underwater on their mortgage. Thus, by prohibiting the flow of
income, the Rent Control system hamstrings the amount an owner
can spend on upgrades, beautification, etc. on the building. Also,
when an old tenant moves out, the owner will certainly raise the
rent up to market value. In the area without rent control, it
is the market that regulates the rent. A property owner can certainly
make a good profit in rent-controlled areas, but, if one does
not like to answer to the bureaucracy, it is better to avoid the
manage or not to manage, that is the question!
A small building
is not too difficult to manage yourself and it also saves on the
management fee. If you want to manage a building yourself, you
need to join the Apartment Owners Association. AOA has many services.
The most valuable service is the credit check on the applicants.
Their web site for Apartment Owners Association is www.aoausa.com.
The phone number of The Greater Los Angeles AOA is: (213) 384-4131.
need to set up a Post Office Box to collect rent checks. If it's
possible, set up a phone line for tenants only. You don't want
tenants calling you at home for a drip at three in the morning.
You do need, however, to monitor the messages closely, so you
won't miss the call for emergency. If the building is old, it
is better to set up a schedule (once a month, or once every two
months, for instance) to inspect the building. Whenever there
is a problem, fix it immediately. By doing so, one can avoid a
disaster in the future. Keep a good and reliable handyman for
small repairs. For major work on the building, use the same crew,
so they know the building and its problems very well.
For a medium
size rental property, you should have an on-site manager to collect
the rent, and perform small repairs, such as cleaning and painting.
It makes it much easier for the owner, and you don't lose too
much income when you give someone a rent break for collecting
rent, calling maintenance services and basically being the person
the tenants complain to, instead of you. An on-site manager certainly
saves a lot of trouble for the owner.
If you really
don't want to manage the building or the building is too big to
handle, you can always hire a management company. There are many
of them. Bear in mind that it is not easy to find a company that
is willing to manage a smaller building. Management companies
will do everything for the owner, including going to court on
behalf of the owner to evict the tenant. Management fees are usually
6-10% of the gross income of the rental property. Ask them to
send a monthly statement on the property, which you should check
over closely. If and when you have questions, investigate the
discrepancy and get it resolved immediately.
the only one who has made a fortune in real estate. There are
a lot of women with better hair-do's
who are doing quite well. As a matter of fact, rental property
investment can be an interesting and enriching experience in more
ways than just the bottom line! You're dealing with people, after
all, and their homes. Ideally that experience should be something
that provides a benefit to everyone involved.
perspective on building wealth through real estate, try:
Quick About Getting Rich with Real Estate by M.P. Dunleavey
after a real estate seminar promoter in NYC promised to create
1,000 new millionaires, none are in sight—except, of course, the
promoter. Here's what happens to folks who fork over big cash
for ‘no-fail' directions to fabulous wealth.
executives be rewarded with multi-million dollar bonuses when
the company's earnings and labor pool are still on the ropes?
Kennedy, technology entrepreneur, former president of Oracle USA
(a reprint from an earlier issue)
the past 20 years, CEO compensation has increased dramatically.
The increases are much greater than the increase that would be
anticipated as a result of inflation.
way to quantify CEO compensation is to divide a CEO's compensation
by the average salary of a low-level worker in his company. In
many parts of the world, CEOs earn 20-30 times as much as entry-level
workers. This was the case in the United States, until the last
20 years. Many CEOs are now making several hundred times as much
in compensation as their low-level workers. Is it any wonder that
these workers and many investors have lost patience with CEOs?
The rampant cynicism is voiced by workers: "He makes more
in a day than I do in a year, and he doesn't even know how to
run the company."
Note: By the 30x theory, a Citigroup low-level worker would need
to make over a million per year to keep on the map with Chairman
Sanford Weill's $44.7 million compensation package in 2003, as
reported by Bloomberg News. Mr. Weill's 2003 compensation package
is over 1,400 times higher than a Citigroup, Inc. minimum wage
many reasons why CEO compensation has grown so dramatically.
is rampant in corporate America. CEOs are competitive by
nature. They cannot stand the idea that others are better compensated
than they are. All it takes is one board that decides to break
the bank for their CEO. The result of their actions is disclosed
in the annual proxy statement, and soon their competitor's CEOs
are receiving similar compensation plans.
boards cede their compensation to Wall Street. For many
years, CEO compensation was largely unrelated to the performance
of the company. Shareholders began to encourage the compensation
committee of the board of directors to tie CEO compensation
to company performance. This is clearly a good idea. The problem
came when boards were unable to accurately measure company performance.
They decided to substitute a measurable yet inaccurate metric
(stock price) for a difficult to measure but accurate metric
(company performance). Stock price is not a good measure of
company performance. Those who believe that it is need to be
able to justify the accuracy of the pre-crash share prices for
the dot coms. A compensation committee that bases CEO compensation
on share price or who makes stock options the majority of an
executive's compensation plan is abrogating his responsibility
to Wall Street.
According to Bloomberg News, Sandy Weill's compensation package,
increased by 5 times this year, from $9 million (including $7.4
million in stock options), to $44.7 million, including a $29-million
bonus, $1 million salary and $14 million in option grants. Meanwhile,
Citigroup's share price soared 40% while earnings were down
from the five-year average by over 30%. The board must have
been elated with the share price gains, especially considering
that Citigroup survived two very high-profile scandals, including
Jack Grubman and the mutual funds crisis.]
see themselves as rock stars or professional athletes. The
primary factor to consider when compensating professionals with
unique skills (rock stars and athletes) is "what will the
market bear." This is a relatively easy question to answer
when there is a direct relationship between the professional
in question and the price of a ticket. For example, fans might
have to pay $2-3 dollars more to watch Shaq, Kobe, Payton and
Malone play basketball for the Lakers. In theory, each fan would
have to make the decision whether or not he would pay more to
watch a team win basketball games in the finals, or pay less
to see a mediocre team. This analogy does not work for CEO compensation
(although they like to justify their salaries by saying it is
only what Barry Bonds makes). It does not apply to CEOs because
the price of their goods or services cannot be increased to
pay for the CEO's compensation. Who would pay $2-3 dollars more
for a ticket to an Anaheim Angels game, so the board could give
Michael Eisner a salary increase? The only valid standard for
compensation of a CEO is "replacement value." Most
CEOs could be replaced for a fraction of what they are currently
of Directors are not exercising their fiduciary responsibility.
In the past, CEOs have loaded boards (especially compensation
committees) with their friends. Many of these friends have been
supremely competent, but loath to disagree with the CEO. Recent
legislative changes and the ongoing "government witch hunt"
have combined to make service on the board of a public company
much less attractive. In fact, it has almost become a business
The CEO says
to a prospective board member, "We need you to fly here to
headquarters through crowded, dangerous airports for 4-6 meetings
a year (more if we're in trouble), but we will only pay you a
few thousand dollars a year. You will only be able to sell your
stock in very limited windows, and even then, if you know anything
bad about the company, you cannot sell at all. Furthermore, if
the stock goes down you will likely become the subject of a class
action lawsuit. Want to join?"
afore-mentioned changes will reduce the likelihood of a CEO stacking
the board with his cronies—"friends don't let friends join
boards"—it is also probable that new boards will not be able
to attract the capable board members of the past. If a board does
not exercise its fiduciary responsibility regarding the CEO compensation
due to a personal relationship with her or him, or, if they fail
because they are not competent, the effect is the same.
Kennedy has shared many thoughts with NataliePace.com members on effective
ways to link CEO compensation to company performance, and to provide
ideas on inferences you can make about a company by analyzing
their compensation structure.
If you have
a question or a comment about this article, which was first published
in September 27, 2002, please feel free to write us at: info@NataliePace.com.
Top 10 signs the Company is Using Fuzzy Math.
corporate headquarters. Company has operations in the US,
but holds one shareholder meeting per year in Bermuda and claims
the island as the basis of operations. Not only does the IRS
consider this aggressive accounting, it is intentionally designed
to be very unfriendly to shareholders wanting to go to the annual
meeting and hear about the company firsthand!
CEO acts like a rock star with entourage, body guards, arm
candy, standing suites at the Four Seasons, box seats, penthouse
Manhattan digs and designer Feng Shui furnishings, down to the
$2,000 trash can. The survival of the rich, famous and beautiful
code spins on one important fact. If you're not famous or beautiful,
you're picking up the tab. While having celebrity spokespersons
is an advertising line item expense, when the CEO shows up more
in the society pages than in the executive suite, the company's
bottom line is taking a mud bath at a designer spa on your dime.
trash can in the executive bathroom. Hey, it's not like
having Faberge eggs or Van Gogh. It's a trashcan. People smash
out cigarette butts in it. What's next? Tiffany crystal at the
vacations in the Hamptons.
is one of the 350+ companies that had to restate earnings in
the last three years. This group makes up less than 5% of the
publicly traded companies. Avoid them. (Check out "Key
Developments" of the company, on the Money Central.msn
- A dozen
spin-off corporations with names you've never heard of are
operating complicated schemes that you don't understand.
meeting in Sardinia coincides with CEO's wife's 40th
birthday party (and company gets to pick up most of the
- N Sync
performs at CFO's kid's bar mitzvah. Party favors include
skateboards signed by Avril Leveigne.
releases tout "increasing earnings," while credible
news sources (NY Times, Wall Street Journal) expose a lack of
revenue growth and debt burdens so crushing that creditors
are threatening to force the company into involuntary insolvency.
plays in the corporate elevators, in stores and on hold.
(Yes, Martha had it right. Bad taste not only stinks. It's also
a sign of corporate malaise and may be, in fact, killing employee
at a Glance:
Fast Quotes from the Brightest Minds on the Street on
when, where and how to invest in the markets these volatile days.
- Dr. Julius
Maldutis, global aviation analyst and managing director at CIBC
World Markets. "I would avoid all of the major carriers….
Jet Blue is one of the low cost carriers. I would own it absolutely."
(Dr. Maldutis also mentioned Southwest, Airbus and Airtrans
is free today. The cost of money is less than the inflation
rate. You're making money, borrowing money." Rick Caruso,
CEO of Caruso Affiliated, developers of the popular "The
Grove" destination center in Los Angeles, California
are better than Republicans for the markets over the last 100
years." Frank Cappiello, Montgomery Brokers Capiello, speaking
on CNBC 3.29.2004
are cheap. Bonds aren't much competition. Jobless recoveries
are good for profits." Paul Woods, CEO, Odyssey Advisors
become arguably more attractive against a backdrop of lower
interest rates and the lack of any major earnings warnings...
Long-term investors should remain in the stock market but with
a healthy cash position to cushion the current decline."
John T. Harrington, Harrington Capital Advisors, Inc.
in doubt, stay out." Jonathan Hoenig, www.CapitalistPig.com
weakness in the technology sector is somewhat troubling, and
many analysts believe the charts suggest a correction may be
imminent. Underlying valuation concerns in that sector have
many suggesting a move into more conservative positions."
John T. Harrington, Harrington Capital Advisors, Inc.
economy is off to a strong start in 2004, and prospects for
sustaining the expansion in the period ahead are good. … However,
the unified deficit swelled to $375 billion in fiscal 2003 and
appears to be continuing to widen." Alan Greenspan, Chairman
of the Federal Reserve Board, speaking to the Committee on the
Budget, U.S. House of Representatives on 2.25.2004.
business model is impossible for full service old airlines.
They can't compete with young, lean companies like Jet Blue.
It's almost like having cancer. The only question is how much
worse can it get." Jim Awad, Awad Asset Management
should be a volatile year, a day-trader's paradise, as stock
prices soar and plunge on headlines of a hotly-contested presidential
race, a jobless economic recovery, rocketing fuel prices, continuing
terrorist attacks, and the hunt (and ultimate capture?) of Osama
bin Laden. Diversifying some of the 2003 equity profits into
more liquid positions allows the investor to capitalize on buying
opportunities, especially late into the summer doldrums, after
fuel prices have burned holes in the consumer's wallet."
Natalie Pace, CEO, NataliePace.com
She Fry in Prison or Bake on the Tele? Cast your vote! (See below
prosecution NEVER CHARGED MARTHA WITH INSIDER TRADING. She was
convicted of lying to investigators for a crime that she didn't
commit. The judge threw out the trumped-up securities charges.
The total amount that Martha stood to lose was $46,000. She was
not contacted by Sam Waksal, and didn't know that the FDA had
rejected the Erbitux application. (If she had known that, and
she traded on that information, she would have been charged with
insider trading.) Is it possible that Martha was telling the truth
all along. She might have been scared or stupid enough to try
and erase a phone call in her phone log, but is that a crime?
Should millions of dollars and thousands of prosecution man-hours
have been diverted away from the billion dollar corporate collapses
of Enron, Global Crossing, World Com and Tyco to prosecute America's
I were an Enron employee, or a WorldCom or Global Crossing or
Tyco shareholder, I would be ON FIRE about the millions of dollars
and thousands of man-hours that were spent on trapping Martha
Stewart in a "lie," instead of focusing all resources
on real corporate fraud and the billions of dollars that were
lost and tossed into executive golden parachutes." Natalie
Pace, CEO, NataliePace.com
will end up continuing to play a creative role at the company…
She will not be an officer or a director, but she will be very
involved in the company." (inside source at the Martha
Stewart Living Omnimedia, according to Forbes.com)
think she got what she deserved…What she did was wrong, famous
or not famous. I hope she serves every bit of that 20 years."
Annette Decaito, 45, an unemployed resident of Martha's hometown
of Nutley, New Jersey (AP)
feel very sorry for her. I think she's being made a scapegoat…
I wish I could be in New York with her to lend my support."
Gina Colbus, Kmart shopper and Martha Stewart Everyday Collection
buyer (Fredericksburg, VA. Knight Ridder/Tribune)
gut reaction is that Martha-haters tend to be people who are
highly suspicious of the wealthy and of corporate power."
Robert S. Rycroft, economics professor, Mary Washington College
buyer (Fredericksburg, VA. Knight Ridder/Tribune)
- 39% of
New Yorkers want Martha Stewart in prison, while 50% say she
should go free, according to Mickey Blum of Blum & Weprin
Associates, a polling firm (Daily News)
Miriam Cedarbaum prohibited the defense team from mentioning
the fact that it was perfectly legal for Martha Stewart to sell
on her broker's advice, regardless what Doug Faneuil may have
said or why. Either his explanation or hers may be correct…
but the jury would surely have wondered why the motive for selling
ImClone stock mattered so much if they could have been told
the sale itself was no crime." Alan Reynolds, "Martha's
are confident that once we get our day in the court of appeals,
the conviction will be reversed." Robert Morvillo, attorney
for Martha Stewart
she just said, "Hey, listen, I made a snap decision. We
had some arrangement one day. This guy calls me up the next
day. I'm flying to Mexico and I just traded." And you know
what? I think that would have worked. She wouldn't have been
in this position right now." Charles Gasparino, senior
special writer, Wall Street Journal, speaking with Paula Zahn
kind of country is it where O.J. Simpson goes free for murdering
his wife, and Martha Stewart is convicted of lying about a crime
she didn't commit?" John Small, SaveMartha.com
free to weigh in your own opinion, by writing to us at info@NataliePace.com.
Stewart Should She Fry in Prison or Bake on Television?
her up and force her to listen to Muzac while eating Hungry
Man dinners. Deny her a "personal assistant."
her go, and keep her on television.
her slink back to the Hamptons. We've seen and heard enough
join us for our special Wednesday Worldwide MEMBERS ONLY CHAT
discussing Martha Stewart, the state of corporate corruption and
how you can protect yourself best from CEO greed and misdeeds.
Well be having some very special guests in our chat room.
Dont miss it!
free to weigh in your own opinion, by writing to us at info@NataliePace.com.
Also, please join us for our special Wednesday Worldwide MEMBERS
ONLY CHAT discussing Martha Stewart, the state of corporate corruption
and how you can protect yourself best from CEO greed and misdeeds.
Well be having some very special guests in our chat room.
Dont miss it!
on Para Los Ninos, a nonprofit company on Skid Row in Los Angeles
that works to improve the lives of families living on very limited
Wendy Satana, Director of Major Gifts, Para Los Niños
spotlight on one family, Para Los Niños helps strengthen
the bond between an angry, aggressive toddler and his family.
the world of a three-year-old, the arrival of a new sibling can
be overwhelming and stressful. For Roberto Medina, it meant his
entire life changed in an instant. After his baby sister was born,
Roberto's mother returned to work to help make ends meet. Imagine
losing your world (your mother), getting a new sister, and being
cared for by a stranger (the new babysitter). Anxious and afraid,
Roberto began acting out and throwing uncontrollable tantrums.
Frustrated, Roberto's babysitter resigned within just a few short
for a solution, the Medina family turned to Para Los Niños
immediately enrolled in one of our Child Development Centers,
with preschool programs designed to assist working parents with
limited means. Although he was in a nurturing environment with
children his age, Roberto was still very anxious. His teacher
reported that he was overly aggressive, refused to share, and
hit his classmates. During a parent-teacher conference, Roberto's
mother confided that he was out of control at home and she often
worried that Roberto might harm the new baby. Roberto's family
was immediately referred to Para Los Niños' Family Resource
Center for more intensive help.
family began meeting weekly with a family therapist, and a case
manager was assigned to conduct home visits. The therapist and
case manager helped the Medinas develop new strategies to help
the family resolve the issues that prevented Roberto from being
successful at home and in school. Roberto's therapist concluded
that he was troubled by his mother returning to work, the birth
of his sister, and marital strife between his parents—all of which
contributed to stress in the home environment.
mother and father began attending a parenting class at Para Los
Niños to learn how to re-direct adverse behavior at home.
They developed skills for working together as a team to address
his needs, and Roberto felt relieved when his parents cooperated
with each other.
working on Roberto's behalf could see that he was an exceptionally
bright child. Roberto's teacher began offering him leadership
opportunities in exchange for good behavior. Conversely, as Roberto's
parents learned to increase communication and reduce conflict
in their interactions, they were able to develop consequences
for negative behavior at home. They also learned methods for reducing
marital conflict, which served to reduce tension. This, in tandem
with the progress made in the classroom, has allowed Roberto to
control his behavior, and become not only a successful student,
but also a leader in the classroom.
story is about a child who exhibited anxiety, which is one of
the most frequent factors that interferes with a young child's
social and emotional functioning," says Director of Clinical
Services, Juan Martinez PhD, L.C.S.W. "By resolving conflict
and uncertainty in the home, Roberto was able to feel secure.
His behavior improved dramatically."
Now when he's
at home, Roberto loves nothing more than to listen to his parents
read stories, tell folk tales from their childhood, and play ball.
And, in the classroom, he enjoys the opportunity to act as an
assistant to his teacher. Thanks to positive reinforcement he
receives when he behaves at home and at school, Roberto exhibits
improved confidence and consistent behavior. He is also enjoying
the responsibility of being a big brother and was the first in
the family to make his sister laugh.
Niños opened its doors in 1980 in response to the plight
of children living in Skid Row hotels. Without appropriate intervention,
these children were often kept locked in hotel rooms while parents
worked, or were left alone to wander the halls and dangerous neighborhood
streets. Initially, 45 children received care at the agency. Today,
Para Los Niños assists more than 1,350 children,
ages 6 weeks through 18 years, each weekday — and more than 3,000
families every year — from 15 sites in some of Los Angeles
and San Bernardino Counties' most impoverished neighborhoods.
Para Los Niños' services include child development and
education, a Charter School, child abuse prevention and intervention,
after-school enrichment, youth diversion and delinquency prevention,
and comprehensive family support.
For more information
about Para Los Niños, please visit www.paralosninos.org.
To make a donation online visit www.paralosninos.org/2002/give.html.
You may also get more information by calling 213.623.8446.
galas, networking, teleclasses, seminars and other special opportunities!
Check out what's happening online at the Calendar section of
the web site.
VISION: To build
a global community of investors through seminars, a world-wide
web-site and, ultimately, television.
GOAL: Working change: To promote successful investing and ethics
MISSION: To build a global investment community by providing easy
access to important financial news, by promoting a dialogue between
members and industry professionals and by promoting ethical business
practices, products and services.
PHILOSOPHY: The W.I.N. philosophy centers around five principles:
Ongoing Education, Monthly Commitment, Diversified Portfolio,
Ethical Business Practices, Pooled Resources.
For more information on W.I.N. contact us at info@NataliePace.com
The NataliePace.com is NOT a stock brokerage service,
and does not operate or act as one.