inrealestate4u

I now understand the importance of holding. No, I’m not talking about two lovers caressing each other tightly in front of a fireplace (although that is also certainly important, fireplace or not). I’m talking about being put on hold when doing business over the phone. I recently took my automobile in to be serviced at my local garage. After they had it for a day, I called to get the prognosis and see just how much this was going to cost me. I was transferred over to the mechanic working on my car, and by transferred; I mean that the first person I reached yelled at the top of her lungs for a second person to pick up line 2. It was endearing, in a way, but not terribly professional.

After reaching the mechanic, I was told to wait for a moment while he checked on the status of my car. He then put the phone down (or let it hang, for all I know) and went to get the paperwork. It took him quite a while to get the information he needed, so I was sitting at my desk at work with my ear to the receiver, listening to other mechanics talk about everything under the sun. I certainly don’t mind that, but the profanity I was hearing didn’t really instill any confidence in me that I had chosen the right garage for my vehicle. These guys could have made a sailor blush, as the saying goes. Eventually, the mechanic came back and told me the amount of the bill and what they had found.

I picked my car up that evening. The four or five minutes I spent listening to the other mechanics curse with reckless abandon got me to thinking. I really do believe that ignorance is bliss. It’s not that I’m such a prude that a few expletives will offend me, it’s more about professionalism. When a person feels that the company he or she is doing business with exudes professionalism, it makes one comfortable in doing business. When the situation is otherwise, it makes you wonder if there isn’t someone else you should be doing business with instead.

A Dialogue Between
Tom Rodwell and Sam Vaknin, December 1998

By Sam Vaknin
Author of “Malignant Self Love – Narcissism Revisited”

The following is a standard IMF document, taken from its own website. Underlined phrases are related to categories A and or B (see below). The phrases here are general examples as part of general criticism of the ideological tone and “aesthetic” of the IMF. This dialogue is a combination of philosophy and economics: does can the IMF (or any organization) “facilitate the expansion and balanced growth of international trade”?

The IMF is the cornerstone and centrepiece of the financial architecture of the world. Long a sacred cow, it has lately become the eye of a controversy. Its prescriptions to ailing countries as diverse as Zimbabwe and Russia have, at times, proven to be inadequate, some say: ruinous.

The IMF is a result of an ideology and its instrument. This is clearly revealed in its intentionally vaguely-phrased documents. Tom and Sam, a philosopher journalist composer and a philosopher and physicist turned economist, try to read between the lines (in the best of East European traditions.).

The IMF:

“Statutory Purposes

The IMF was created to promote international monetary co-operation ; to facilitate the expansion and balanced growth of international trade; to promote exchange stability; to assist in the establishment of a multilateral system of payments; to make its general resources temporarily available to its members experiencing balance of payments difficulties under adequate safeguards; and to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.

Areas of Activity

Surveillance is the process by which the IMF appraises its members’ exchange rate policies within the framework of a comprehensive analysis of the general economic situation and the policy strategy of each member. The IMF fulfills its surveillance responsibilities through: annual bilateral Article IV consultations with individual countries; multilateral surveillance twice a year in the context of its World Economic Outlook (WEO) exercise; and precautionary arrangements, enhanced surveillance, and program monitoring, which provide a member with close monitoring from the IMF in the absence of the use of IMF resources. (Precautionary arrangements serve to boost international confidence in a member’s policies. Program monitoring may include the setting of benchmarks under a shadow program, but it does not constitute a formal IMF endorsement.)”

Tom:

IMF IDEOLOGICAL TONE

The nature of the IMF is inextricably linked with its controlling member state and staff’s economic and political viewpoints. The IMF talks about itself, and about economic political phenomena generally, in precisely the same terms. The kind of economics it discusses is one of authority, monitoring, and, dare I say it, intervention. While the IMF allegedly intends to promote “international monetary co-operation” and to “facilitate the expansion and balanced growth of international trade” (standard free-market shibboleths), it consistently refers to “enhanced surveillance”, “close monitoring”, and “precautionary arrangements”. Orwellian undertones are hardly muffled.

Sam:

The IMF has yet to adopt the “client-orientated” approach. It harbours deep (and oft-justified) distrust of the willingness of governments to blindly follow its dictates. It is a paranoid organization, based on authoritarian techniques of “negotiations” and “agreement”. Euphemisms rule. Normally, the IMF holds “consultations” with the host governments. These are rather one-sided affairs. The governments are needy and impoverished ones. They lack the cadre of educated people needed in order to truly engage the IMF in constructive discourse. They are intimidated by the bullying tactics of the IMF and of its emissaries. The tone is imperial and impatient.

Tom:

The IMF clearly sees itself as the authority on international development ideology. International development becomes an ideological construction, with subsets of subjective terms: free trade, financial contact, economic vision. Many of these terms are defined in such a way that they enframe that which they discuss. The ideological position of the influential members is often significantly different from the developing countries. Sadly, the ideology only becomes reality when it is part of every day life in the developing nations.

Sam:

Worse still, the IMF’s language is riddled with contradictions in terms and logical fallacies. Let us review a few: International monetary co-operationin IMF lingo means exchange (rate) stability. But with such stability the expansion and balanced growth of international trade is not achievable. Trade is based on dynamic exchange rate disparities. Moreover, there is nothing inherently wrong in such dynamism. The changing disparities reflect the relative advantages of the countries involved. In a world of fixed exchange rates – trade stagnates. And what is “balanced” growth anyhow? Trade has been growing at 3-5% annually for a few years now. Is this balanced, overdone or insufficient, as some free trade zealots cry out?

Additionally, a regime of stable exchange rates won’t go far towards facilitating the second result: to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members. If a country runs a gigantic balance of payments deficit but is not permitted by the IMF to devalue its currency, in the name of exchange rate stability – its balance of payments is only likely to worsen. Take Macedonia: with a 14% of GDP deficit in its BOP – it MUST devalue and URGENTLY. Its currency is HEAVILY overvalued and the whole economy is deflating. Yet, the IMF is about to repeat there the same grave error it commited in Russia: to protect the currency, the whole system is drained of liquidity (demonitized), interest rates are kep insanely high and the balance of payments deficit skyrockets, until the inevitable collapse. If the IMF is interested in self perpetuating crisis situations in order to preserve its clout – it is doing a fine job indeed.

The IMF was never authorized to rate the creditworthiness of its shareholders (=the countries). It is acting ultra vires in providing clean or soiled bills of financial health. Its ability to strangle a country financially if it does not comply with its programmes – no matter what the social or economic costs are – is very worrying.

Tom:

LANGUAGE

The language in the IMF document can be roughly divided into two sections.

A. Phrases concerning the -history
-role activities
-nature of the IMF

B. Phrases concerning -subjective economic and political concepts
-local policy
-international policy

Here’s my summary of the kind of language used:

1. Quasi-intellectual terms (”big words for a dismal science”), e.g. disequilibrium, comprehensive analysis, policy strategy.

2. Spin-doctoring euphemisms, e.g. promote, facilitate, balance, co-operation, safeguards, monitoring, responsibilities, precautionary arrangements, endorsement, benchmarks. This also includes intimidating terms such as “surveillance”.

3. Distancing terms, e.g. members, general economic situation, policy strategy.

(1) is simply pretension. The average “comprehensive analysis” undertaken by the IMF is often curiously selective and self-serving.

Sam:

Not to mention cursory “kangaroo-court” economic judgements replete with clear contempt and disregard for the “natives”. The latter are held to be cheats who are merely trying to extort as much money as they can and probably stash it in Swiss bank accounts (private ones, needless to say).

Tom:

(2) is the most obnoxious section. These phrases mislead. They paint a picture of the stability and democracy that supposedly is Western capitalism. They paint an image of the IMF as a fair, unbiased, caring, and democratic organisation. These phrases also confuse in that they connect “nice terms” (like balance, co-operation and safeguards) with complicated and subjective economic terms. Thus the language often functions as a “pacifier”, or perhaps as a “chaser”, softening the blow of the “hard stuff”.

(3) indicates the insular attitude of the IMF. Their “grand scheme” is apparently removed from localised activities and concerns.

Sam:

There is one place, which absolutely complies with the IMF utopia. There is no inflation there. People do not particularly care if the exchange rate never changes or what is the outlandish level of interest rates needed to ensure this eerie stability. It is the cemetery.

The IMF’s deadly sin, yet to yield its grapes of wrath, is not to understand that economics is a branch of psychology and should be at the service of humans and society. When setting economic goals one must always act with pragmatism and compassion. In the realm of humans, to be compassionate IS to be pragmatic. Otherwise, reality is bound to frustrate the most rigorous planning. If social costs are not accounted for – unemployment will bring about crime and a black market, which will render the official market and its statistics meaningless, for instance. If exchange rate stability supported by inanely high interest rates prevails over the goals of industrial reconstruction and export-enhancement, the result is erosion of the very fabric of society. Lack of liquidity translates into a lack of trust in fellow citizens and in institutions. If public expenditures are harnessed too strenuously – corruption will flourish. The IMF’s propensity to provide a “catchall” one-measure-fits-all panacea is nothing short of shortsighted and disastrous. It cannot be that the same financial recipe will apply to Pakistan, Macedonia, Estonia and Russia. Yet, a close scrutiny of the four IMF programmes imposed upon these countries (Estonia wriggled out) – demonstrates striking similarities. It is a fact that there are conflicting CAPITALIST economic models. Not because human nature is so diverse – and it is – but because different people have different preferences. Americans prefer profits and self-reliance to social justice. Not so the French. Paradoxically, this is exactly why markets exist: to trade in disparate preferences. The IMF is a central planning agency but as opposed to previous models it believes that it is omniscient – and knows that it is omnipotent.

Tom:

The IMF’s desire to paint a kind of stasis on the world economy is, as you have said, a kind of religious-ideological defence mechanism. The language employed by the IMF is an attempt to give form to the haphazard and contradictory nature of international trade and development. This language functions in a similar way to their policies, in that both seek to describe and promote a uniform concept practice of international economics.

The reference to economics as a branch of psychology is spot-on. It is ignorant, unethical and unworkable to attempt to impose or promote any kind of exclusive and conformist concept of ‘the economy’. Indeed, the IMF’s bizarre language and policies reveal a mistaken view (commonly held) that there is such a single practice or entity called “The Economy”, or “International Trade”. Absolutist and limiting concepts of economy (communism, now capitalism) are increasingly being shown to be unworkable. The language used by the IMF is evidence of the impractical, restrictive and unethical nature of an elitist concept practice of economics.

FINAL STATEMENT

Tom:

The IMF is a part of the industry of “trade”, “development”, and “economics” in general. This criticism of the language found in their promotional documents is, in some ways, a criticism of the aforementioned “economics industry” in general. When I first read the IMF’s comments reports, I was struck by the combination of arrogance and defensiveness (in a tone of barely muted desperation). I now believe that these documents were written with the first whiff of fear in the NYC air-conditioned office ambience. No doubt that those miners, steel workers, farmers, and manufacturers whose own industries were flattened by free trade hysteria will feel a tiny degree of satisfaction, if we really are seeing the decline of the “economics industry”.

The IMF is unethical because it espouses an abstract concept -free trade- that influences the complex process of “development” (too often defined with insufficient complexity) while being unconcerned with specific and local realities and interactions. It is simply too abstract: international development is not assisted on a truly local level by investment in the military, state, or heavy industry. It is ridiculous for a third world country to build massive steel-plants, or allow foreign companies to extract vast amounts of timber or oil, when local people are concerned with finding clean drinking water. This abstraction criticism stands for the entire “economics industry”, and will continue to do so while it has an insufficiently perceptive and complex understanding of localised realities.

The language of economics is murky, and our criticism of it will remain justified as long as the IMF (et al) produce officious and misleading documents. The practice of economics is also murky, and our criticism of it too will remain justified as long as policies that are illogical, impractical and unethical are produced and enforced.

Sam:

The IMF is an essential institution. There must exist a multilateral organization geared towards the maintenance of the marketplace itself. But the IMF should get rid of its Multiple Personality Disorder. It must first decide WHAT is it: a lender of last resort? A creditworthiness rating agency, sort of an ominous Moody’s? A missionary organization, preaching a particular brand of the religion known as capitalism? A commercially-orientated, return-on-investment based financial organization? Dumping grounds for aging polticians and third rate bankers doing the USA’s bidding? Whatever the definition, it is bound to be far superior to the current muddled state of affairs.

Second, the IMF must maintain transparency. It controls vast resources. It is prone to be inefficient (not to say corrupt). Transparency humbles, ensures the injection of fresh intellectual blood, improves performance, gives taxpayers a good feeling. The IMF needs to be humbled. Its actions have been politicized lately. It intervenes in the internal affairs of dozens of soverign, reasonably managed countries – and its intervention is not confined to matters economic. It develops an internal “Organizational cult” (we know best and always). It is one of the most rigid and intellectually handicapped organization in the world, yet it considers itself a bastion ofeconomic ingenuity and righteousness. Delusions of grandeur are dangerous on such a scale.

Third, the revamped, no-longer-haughty, IMF must be able to fine tune to different social and cultural constraints in different spots of the world. It must strive at least to BE SEEN to be trying to minimize the social costs of its often-botched plans. It must not behave as a colonial power, which it often does. It must establish trust rather than impose discipline. Otherwise, it stands no chance to laugh last. Actually, it stands no chance even to survive.

Sometimes it seems like you can’t get a break if you serve your country, even if you aren’t in the military. Teachers, law enforcement officers, firefighters and other emergency personnel often get the bad end of the stick when it comes to their jobs. So it should come as a pleasant surprise that these jobs can work for you if you want to buy a home. The U.S. Department of Housing and Urban Development is making life just a little bit easier for those people who teach kids and make sure the streets are safe with the Good Neighbor Next Door Sales Program. HUD is offering eligible single family homes located in revitalization areas at a 50% discount from the list price of the home.

It’s not all barbecues and emerald-green lawns, though. You must be a full-time employee in the approved fields. HUD requires that you live in your new home as your only home for 36 months and that you sign a second mortgage, plus a note for this discounted amount. However, there will be no interest or unexpected payments on this mortgage, as long as you live in the place for three years as your only residence.

Revitalization areas can be a challenge to mold into a working society of law abiding people. Sometimes the communities are hampered in their growth by crime or lack of work. These are challenges that need to be faced by you and your family in order to make this program work. Getting involved with your home, your neighbors and your surrounding neighborhood is what will lead to your success.

The revitalization efforts of a community are immeasurably aided by the presence of law-abiding people with a vested interest in building a thriving community. The presence of law enforcement and emergency response personnel can have an overwhelmingly positive effect on a neighborhood, both as good examples and as contributors to their local economy. The presence of families of those in service to their community also provides a good atmosphere of community involvement and pride.

Making communities safer begins in the home. Contributing to revitalization efforts by getting involved in the community along with any fellow Good Neighbors, your community might turn around faster than you first conceive. At the very least, it’s worth looking into.

In December 2002, Poland decided to purchase 48 F-16 Falcons from Lockheed Martin Corporation – an American defense contractor. Pegged at 3.5 billion, this is the biggest defense order ever issued by an east or central European country. The financial package includes soft loans and a massive offset program – purchases from Polish manufacturers that more than erase the costs of the deal in foreign exchange.

Offset in all its forms – including co-production, licensing, subcontracting, and joint ventures – is not uncommon in the defense industry. It is being offered even to far richer clients such as Israel. But in central and east Europe it is more prevalent than the West realizes.

According to numerous studies, barter-like arrangements (known throughout the region as “compensation”) constitute between 20 and 40 percent of all transactions in the economies of the former Soviet bloc. Corporate debts to suppliers, payments for goods and services, even taxes – all have a non-cash component or are entirely demonetized.

The implosion of communism led to a rapid shrinking of the manufacturing base and the evaporation of the agricultural and mining sectors in many countries in transition. Export-derived earnings in hard currency collapsed even as millions lost their jobs and their purchasing power. Unemployment affects one fifth of the population in Poland, one third in Macedonia and three fifths in Kosovo, for instance.

Rather than remonetize these cash-bleeding economies, the IMF imposed strict austerity programs on the entire area, further eroding disposable incomes and intra-regional trade. Countertrade, barter, buyback, offset, clearing, technology transfer and other non-cash dealings flourished.

Moreover, the clearing system of the now defunct eastern trade bloc, COMECON – the Council of Mutual Economic Assistance (CMEA), was based on effective barter and the use of a fictitious “wooden” ruble. From Hungary to Cuba, communist countries were coerced into outlandish terms of trade, often beneficial to the Soviet Union or to a member in need. Mounting debts led to the disintegration of the entire edifice and Russia was reduced to giving east European countries aircraft and other weapons systems in lieu of cash disbursements.

Russia reimburses Kazakhstan with (shoddy) goods for leasing the Baikonur Cosmodrome. Until 2000, it was common practice in the Russian Federation to pay wage arrears, inter-enterprise debt and back taxes in kind. Russia and Turkmenistan accept food and other commodities, semi-finished products and construction services from Ukraine, Armenia and Belarus in exchange for their gas debts and, in Russia’s case, for disposing of Ukraine’s nuclear waste.

The recipients often complain of the quality of the products or services they receive – and of recurrent breaches of delivery schedules and quantities. But they have little choice. Ukraine is one of Turkmenistan’s major export clients, for instance. Nor are these exchanges post-communist phenomena. Canadian firms, led by AECL – Atomic Energy of Canada Limited – were forced to accept Romanian goods for their nuclear reactors throughout the late 1980s.

There is a general misconception that barter is a thing of the past. Far from it. In the last six months of 2002, payments-in-kind to Gazprom, the Russian energy behemoth, have tripled due to an increase in its tariffs. The use of “veksels” (mostly corporate promissory notes) surged 60 percent. Hence the rise to prominence of barter experts, such as Igor Makarov, who, as general manager of Itera, oversaw Gazprom’s sales of gas throughout the Commonwealth of Independent States.

As prices are adjusted to reflect waning state subsidies, consumers’ purchasing power diminishes and countertrade transactions burgeon. A global recession coupled with the woes specific to transition from communism to capitalism herald an era of unmanageable inter-corporate debt. In tiny Macedonia, it is thought to have surpassed 600 million in 2001 – close to one fifth of GDP. The bulk of such debt is ultimately settled by barter.

Proponents of barter trade – mainly a proliferation of Western consultancies, financial boutiques and trading companies – count their advantages thus (from the Export911.com Web site):

“Countertrade provides a means of trade with countries using a blocked currency – currency that is not readily convertible into other currencies – or lacking the foreign exchange, thus removing the difficulties and risks in a trade financing and paving the way for a successful deal that otherwise would fail. Countertrade also provides a means to preserve foreign exchange reserves by eliminating the use of hard currency.”

The US Embassy in Moscow counters by describing the nefarious effects of barter on the Russian economy:

“In Russia, the barter system is used for various reasons: monetary risk, lack of money, illicit enrichment, tax evasion and to continue business operations beyond viable economic life. The system creates numerous negative effects, namely: low tax receipts, price distortions, oversupply of products, ineffective monetary policy instruments, imprecise economic measurements, and, as a consequence, poor public policy decisions. Barter is tolerated and sustained because of short-term management perspectives, its value as a social safety valve and poor application of bankruptcy laws.”

The demonetization of the economy and the distortion of the price signal (which ensures the proper allocation of economic resources) are not the only pernicious effects of non-cash business.

Barter transactions tend to enhance the militarization of the region. No one wants Russian TV sets or Ukrainian stockings. But MiG fighter planes and Kalkan and Grif patrol boats are in great demand. Turkmenistan, for instance, has built an entire Caspian Sea coast guard out of its gas-for-goods agreement with Ukraine signed last year.

Non-cash transactions are an integral part of the informal sector of the economy, estimated to constitute at least one third of the region’s total gross domestic product. They are impossible to track, let alone tax. They are conducive to capital flight and offshore stashing of export proceeds. Technically, barter deals are a kind of non-tariff barrier as they interfere with the free market by binding specific buyers to given sellers. Hence the recent Russian-Chinese agreement to ban non-cash transactions in their border areas.

Countertrade deals are complex and multi-phased. If improperly structured, they leave a lot of space for corruption and worse. Radio Free EuropeRadio Liberty reported that the military court of the Moscow garrison sentenced in April 2002 the former head of the Defense Ministry’s Main Directorate of Military Budget and Finances, Colonel-General Georgi Oleinik, to three years in prison.

In a typical scam – oft-repeated in Chechnya – Oleinik absconded in 1996-1997 with some 450 million. The money belonged to Ukrainian firms and was paid out in the framework of a multistage barter deal. It was earmarked for the purchase of materiel for the Russian army. Interestingly, in his defense, Oleinik insisted that the deal was authorized by former Finance Minister Andrei Vavilov and other senior officials.

Still, in the long-run, barter is doomed. As more former Soviet satellites either divert their trade towards the European Union or join it as members, countertrade will be restricted to the financially backward economies of the former Soviet Bloc. In time, even these laggards will have to face market realities – especially the use of cash as the foundation of the price mechanism and the optimal allocation of scarce economic resources.

Put vernacularly, the citizens of barter-addicted countries will inevitably grow disenchanted with shoddy and shabby goods delivered late. Imports from and exports to cash paying destinations will surge. “Ghost” factories will close down, releasing capacity to more productive entrants. Cash-starved governments will deepen and widen tax collection. A foreign-owned banking system will do a better job of matching savings to investments. Barter will be reduced to a marginal, last resort, activity.

The Christmas Place announces the opening of its INN, Spring 2007

The Incredible Christmas Place at Bell Tower Square in Pigeon Forge,
Tennessee is one of the countrys largest and most beautiful Christmas Villages!

This family owned and daily-operated business is celebrating its 20th year and wants to thank its guests for the privilege of having served them. To celebrate this special occasion, the Christmas Place has announced the opening of a new property in Pigeon Forge in 2007, “The Inn at Christmas Place”, offering the same old world charm, elegance and customer service you have grown to love from the shops at Christmas Place.

As always, the Christmas Place will have many new displays and attractions that make your visit to Christmas Place a memorable experience. For those that missed our little train that ran around the mezzanine it is back all spruced up and good as new! There will also be new train displays at the Toy and Train store for the enjoyment of our guests.

Our two custom service areas Personalizing and Floral will be bigger to serve you better in 2006! The Floral Department has been expanded and we are currently creating a Personalizing Emporium that will have the ability to embroider stockings, handbags, etc.

For further information visit us online at www.christmasplace.com or call 865-453-0415800-445-3396. For updates on the progress of our Inn go to www.christmasplace.cominn.

As an entrepreneur, who are thinking of going into business, or who is already conducting business, you have to start learning about the basic concepts of Accounting because they are the concepts that are used in reporting your business activities to the government come tax time. It is time you must know about one of the most fundamental concepts in accounting.

Accountants process data into documents called financial statements. It is the accounting equation that is the basis for the entire accounting system.

So what is this magical equation?

The Accounting Equation is:

ASSETS = LIABILITIES + OWNERS’ EQUITY.

In crude definition,

ASSETS are economic resources of the business that are expected to bring benefits for the business in the future.

LIABILITIES are economic resources borrowed by the business from another person or an organization.

OWNERS’ EQUITY is the economic resources that was contributed by the owners of the business to the business.

One way of thinking of this equation is that the left side is what the business has including its money, equipment, building, land, furniture, etc… The right side indicates where these assets had come from. Were they borrowed from parties outside the business, or were they contributed by the people who own the business.

The other version of this equation, that you might bump into is the:

ASSETS – LIABILITIES = OWNERS’ EQUITY.

In other words, if the business’s assets pay off all its liabilities, you are left with a figure that indicates the economic resources that belongs to the business’s owner.

It is pretty much the same thing, a concept of transposition in algebra.

If you take a look at a business’s BALANCE SHEET – or what is now modernly called as A STATEMENT OF FINANCIAL POSITION – you’ll notice that all the items in there are arranged following this accounting equation in either one of its versions.

Of course in a BALANCE SHEET, it is written vertically, instead of horizontally as it is in the equation.

You’ll see the items arranged somewhat as:

ASSETS XXX LIABILITIES YYY OWNERS EQUITY ZZZ

Where, XXX = YYY + ZZZ.

So, next time you see a balance sheet aka statement of financial position, take the time to recognize this logic.

______________

This article was written for OrangesAndLime.com, to help creative individuals artists, musicians, designers, illustrators and entertainers build their own freelance businesses. Please note that this article serves as a guideline only. You should still seek professional advice regarding the matter because laws and practices change over time and they differ from country to country.

Classic business philosophy teaches that a great part of survival and subsequent success lies in an operation’s ability to reduce mistakes. The cost or repairing the mistakes is inversely proportional to the amount of profit potential of the operation. In other words…”Mistakes Kill the Profit Margin!!!!!”

As landlord’s, we don’t want to do damage to the precious profit margin we fought so hard to nurture. A landlord’s profit margin struggles every day to survive, grow and flourish in a sea of predators, competitors and government regulators. Below are the top 10 threats to you thriving profit margin.

1-Poor Screening

The costliest mistake is accepting a new tenant without properly screening. An undesirable tenant will often have a poor rental and financial histories. Landlords should review previous landlord relations, credit reports, courthouse records and income. It is probable that if they have not met their obligations with previous landlords, then chances are that they will repeat their behavior with new landlords. Many landlords have faced horrific situations where tenants have stopped paying rent while employing legal maneuvering to avoid eviction. Others have faced tenants who moved in and initiated criminal activity, which adversely affected other tenants and neighbors. Either of these scenarios translates into expensive ordeals where the measures of rectifying the situation can threaten the financial stability of the landlord.
A thorough screening also involves verifying that the person who is applying is the same person that submits creditcriminal info for screening. A picture I.D. should be cross-referenced with the application. Landlords must make sure that there are no omissions, inaccuracies or inconsistency in the actual application. Due diligence will certainly save landlords much money and stress.

2-Lease Preparation

Having a poorly prepared lease is very costly because it is the document that legally binds the landlord to the tenant. It is the rules of the relationship that dictate conflict resolution, financial responsibility and terms of execution. With out a professionally prepared lease the landlord stands to forfeit many of the rights afforded to the owners of the property. Landlords need to employ leases that are designed to protect them and their property and not the other way around. Many generic leases do not take into account the values of the landlord. Therefore, a custom lease would assure the landlord that their interests are protected.
Many times landlords receive requests for agreements after the lease has been signed. Landlords will use their best judgment when deciding to agree to a proposal but must never neglect to put the agreement on paper. A verbal agreement is always vulnerable to a false interpretation by the tenant.

3-Rent Collections

Landlords must always enforce the terms of rent payment as it is written in the lease including late payments and fees. If not enforced, the landlord runs the risk of creating a dangerous precedent that will certainly cost the landlord dearly. If a tenant fails to pay rent for two weeks, then legal notices and actions must be initiated as soon as the law allows. Landlords should not accept partial payments. The courts interpret receiving partial payments from tenants as an acceptance of terms by the landlord. The eviction process is subsequently terminated for that rental period while landlord’s costs increase.
If a tenant has had a poor history of paying rent on time, a landlord should consider not renewing the lease. Being late consistently is a sign of financial trouble and future uncertainty for the landlord. Poor payment habits can be a precursor to bankruptcy or evictions.

4-Law and Regulation Ignorance

Many landlords get into rental business with out learning the rules of the game. To get a perspective of the folly of not knowing the rule, Imagine trying to play basketball with out knowledge of the rules. You would become paralyzed from the constant rule infractions. It would be impossible to win. Translated to the rental business: Knowledge of the Laws and regulations can make the difference between a profitable venture and a loser.
Landlords must familiarize themselves with the states’ LandlordTenant Act. Every state has different laws, therefore due diligence must be taken by landlords to educate themselves. Landlords must also take the initiative to draw upon with the experiences of other landlords. Many landlord advocacy groups exist in most communities and the Internet.
Finally, it encouraged for landlords to develop a relationship with a real estate attorney that specializes in the rental industry. Having a knowledgeable supporter on your side can relieve a lot of uncertainty. A landlord must never wait to the last minute to develop a relationship with an attorney because the requirement of immediate response will prove to be costly.

5-Poor Response to Service Requests-

The number one reason that tenants do not renew their leases is poor response and execution for service requests from the landlord. Tenants expect a constant inspection, repair, and preservation of the general conditions of their rental home. This also includes a timely repair or replacement of parts for appliances. Everything has to be in working order and problems must be addressed quickly and courteously. Everything has to be in working order and problems must be addressed quickly and courteously. To facilitate an efficient delivery of maintenance requests, the property manager’s best method of receiving these requests is actually answering the telephone. When the manager is too busy to actually answer the phone or the request comes at an odd hour, many properties utilize apartment call centers. This resource allows properties to always have a human responding to the needs of their tenants. The apartment call centers are industry specific and have a direct, open communication with the maintenance and property management. Maintenance requests should be supported by a shared calendar that documents the request cycle: creation, delivery, execution, completion and follow-up. Maintenance requests, if implemented properly, should be a team effort that will lessen and distribute workload through the property staff.

6-Not Employing Good Customer Service

Running a rental business is just like any other business in the sense with respect to employing good customer service. Many landlords forget that they would not be in business if it weren’t for the customer. Practicing good customer service not only reduces tenant turnover, it also is one of the primary forms of marketing. Word of mouth advertising is the time tested, most effective way to promote any business. In the long run, a positive approach to communicating with your tenants will reflect in the profitability and value of a property. On the other hand, poor customer service will take a toll on the general conditions of the property. Tenants will not respect the property by not cleaning up after themselves or not following the property’s rules and regulations. Therefore, poor customer service may result in high turnover, high vacancies, higher operational costs and lower profits.

7-Not paying taxes

Many landlords do not have their rental income as their primary source of income and neglect to report their income to the government. Others fail to pay property taxes because they don’t reside in the property. Failing to declare income and ignoring property taxes can cause very expensive recovery efforts. The government will assess taxes, add fees, add penalties and assign interest. Other costs will come from attorney fees, added accountant charges and personal time. In extreme cases, landlords may get their property confiscated.

8-Not waiting for the funds to clear

In a rush to fill the occupancy, many landlords make the mistake of allowing the tenants to move in before the funds are cleared. The scenario of tenants moving into a property too soon has caused numerous headaches for landlords having to initiate eviction procedures without ever collecting any rent or deposit. Always ask for money orders and certified checks or simply wait for the funds to clear the bank.

9-Not conducting a detailed premove-in inspection

Neglecting to have the tenants complete a premove-in inspection can result in damages to a property that cannot be documented by the landlord. Payment for rent must not be accepted until this inspection is completed.

10-Not keeping a professional landlordtenant relationship

Landlords must always uphold a professional relationship with tenants to avoid the pitfalls of not employing the codes of conduct that are based on the stipulations outlined in the lease. The professional relationship is based on the landlord realizing profits from the rental business. Changing the nature of the business relationship threatens the ability for the landlord to collect rent.

I’m about to share with you the common thread that ties together all successful entrepreneurs. This single trait launched the businesses of Microsoft, Intel, Hershey, JP Morgan, Amazon.com, Nike and so many others. It’s not anything you’ll be taught in Business School, it has nothing to do with accounting, and it doesn’t even have anything to do with what you’re selling or how you’re selling it. I’ll sum it up in two words:
GET STARTED!

That’s it! It’s laughable at first, but the more you think about it, the more it makes sense. It’s the missing “million pound” idea, hiding in plain sight. We hear variations of this all the time: A journey of a thousand miles begins with a single step.

Think back to your first writing classes in school. How were we taught to write a paper? First we start with a basic outline – that’s our money-making idea, whatever it may be. Next, we make a rough draft – that’s right, we start working on something that we know for a fact will be imperfect. Finally, we use our rough-draft as a basis to begin revisions, eventually ending up with a final draft, the “perfect” version.

Planning for tomorrow is a sound business strategy. It’s good to spend time thinking about the future, and how to handle the challenges it will bring. But, if we want to succeed, we must create the future by taking action today. We can’t possibly predict everything that might happen once we start doing business. Microsoft started out selling programming software. After a few years, an opportunity presented itself to sell a computer Operating System to IBM, and they took it. The result was MS-DOS (which they didn’t even create themselves, they bought it from someone else when they saw how much money they could make!), followed by Windows; quite possibly one of the most lucrative products ever. If Bill Gates and Paul Allen, the founders of Microsoft, had sat on the sidelines of the growing computer industry thinking “programming software is an OK idea, but it’s not perfect, there really isn’t a big enough market for it…we need something better”, would they be where they are today? Would IBM have given them that golden opportunity? Not likely.

Did Michelangelo’s sculpture of David emerge from a single tap of a chisel upon a block of marble? No, it took Michelangelo over 3 years of effort to release his masterpiece from the stone, one tiny chip of marble at a time. It probably wasn’t very pretty after only 1 month, or even a year. But years of careful improvement resulted in a classic work of art.

I hope I’ve made my point. Do something. Do anything! If you do something, and the result isn’t what you wanted, what’s the worst that could happen? You either have something to improve upon, or you have a very good idea of an approach that doesn’t work (think of it as addition by subtraction…the process of elimination). Either way, you’re one step closer to success than you were before you started.

Go for it! Give it a shot! Your financial success is waiting for you, go and get it! Get Started Today!

Good Luck!
Jeff

That six-pack of soda in the garage refrigerator could be costing you a lot more than you think.

Millions of homeowners have an old refrigerator in their garage or basement, which is often a hand-me-down from the kitchen. These older refrigerators may still run, but can consume twice the amount of energy of a new energy-efficient model. At a time when homeowners are looking for ways to cut their energy bills, spending as much as 125 a year to keep a few sodas or beers cold may not make sense.

In a home where the extra refrigerator is regularly stocked with food, replacing it with a new Energy Star-qualified refrigerator is an option to consider. You’ll still save up to 275 over the next five years, plus you’ll get better performance. New Energy Star- qualified refrigerators are available in a variety of sizes and price points, so you don’t need to buy anything extravagant (some companies make refrigerators designed just for the garage).

If the extra refrigerator tends to be empty, or home to just a few batteries, stale sodas or mystery containers of food, you should probably get rid of it altogether. Think of all the extra space you’ll have in your garage for storing equipment or tools.

If giving up your second refrigerator causes too much angst, consider opting for a smaller compact fridge. These units are smaller than a regular refrigerator but can still hold extra sodas and other small items. They also use only a fraction of the energy of a full-size model. Look for one that has earned the Energy Star and save up to 80 per year.

If a large amount of food storage is needed, but only at certain times of the year, some families may find it better to keep the old model but only plug it in when it is needed. Leaving the old refrigerator unplugged for 10 months of the year can save as much as 105.

These models help reduce air pollution and greenhouse gases caused by burning fossil fuels and use less energy than a 75-watt lightbulb.

Is there an energy hog feeding in your basement? It could be costing you as much as 125 a year to keep a few sodas.

HONG KONG (Insert date) – Jumeirah Private Island Phuket, Asia Pacifics most exclusive development is scheduled for completion in 2009 and set to offer levels of luxury, privacy and security as yet unseen in Asia Pacific. It will also be home to an elite super yacht marina and the private members only Jumeirah Private Island Yacht Club.
The super yacht marina will have 101 berths and will offer true super yacht facilities with 24 hour deep water access. The marina will double the number of designated super yacht berths in Thailand (thailand property, thailand homes), with 7 slips measuring in excess of 45 metres and an average slip length of over 22 metres.
The marina, located in a protected lagoon on the east coast of the island is surrounded by tropical mangroves, and will be built to top international standards. The marina will include facilities such as helicopter andor ferry access to and from Phuket, fuel dock with pump out facility, yacht maintenance and repair services and individual berth technology pipes.
The Jumeirah Private Island Phuket Yacht Club (megayachts phuket, islands phuket, mega yachts phuket, phuket islands) is planning to host regattas and black tie functions and will offer a range of facilities; club house, swimming pool, accommodation, formal and informal waterfront dining, business centre and fitness centre.

The benefits of berthing in Phuket (phuket property, real estate phuket) include fuel, crew and dockage costs up to 80 percent cheaper than Europe and no luxury yacht taxes.
TGR contact : Anthony Franklin Partner, Marketing Director.
Note to editors:
TGR
TGR Group develops and markets award winning luxury hotels and resorts. The management team has over 100 years combined experience working with leading, global construction companies and a successful track record across three continents.

Jumeirah

Jumeirah properties are regarded as amongst the most luxurious and innovative in the world and have won numerous international travel and tourism awards. The rapidly growing Dubai-based luxury international hospitality management group encompasses the world renowned Burj Al Arab, the worlds most luxurious hotel, the multi-award winning Jumeirah Beach Hotel, Jumeirah Emirates Towers, Madinat Jumeirah and Jumeirah Bab Al Shams Desert Resort & Spa in Dubai, the Jumeirah Carlton Tower and Jumeirah Lowndes Hotel in London and the Jumeirah Essex House on Central Park South in New York.

The Jumeirah Group portfolio also includes Wild Wadi, regarded as one of the premier water parks outside of North America and The Emirates Academy of Hospitality Management, the regions only third level academic institution specializing in the hospitality and tourism sectors.

Building on this success, Jumeirah Group became a member of Dubai Holding in 2004, a collection of leading Dubai based businesses and projects, in a step that aims to initiate a new phase of growth and development for the group.

Jumeirahs ambitious expansion plans to grow its portfolio of luxury hotels and resorts worldwide to 57 by 2011 are well underway with projects currently under development in Dubai, Abu Dhabi, Aqaba, Doha, Phuket, Shanghai, Bermuda, Mallorca and London.

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