Money Management In Today’s Golf Marketplace.pptVIP

Money Management In Today’s Golf Marketplace How $$$$ Savvy Are YOU? How is Your Business Impacted by Today’s Economy? Less Investment in New Courses New Equipment Reduced Renovations More “Band Aid” Projects Smaller Profit Margins just to get bid approval? New Ways to Fund Capital Improvements and Mortgage Buyouts Today’s Banking Climate Limited Funds Available Low Appraisals on Existing Property create a debt to equity problem Loans at 6-7% for Commercial Notes Short Terms with Balloon payments due at maturity Loan Covenants very restrictive depending upon financial institution Unknown Rates at Maturity How do You create your own future? If you work with Clubs: Assessments are NOT welcome in this economy Clubs cannot chance losing members Provide a funding plan that is painless and affordable. Become the bank … Make money on the job and on the loan with no risk How is this Possible? The median age of members at most clubs is above 50 years old. Due to approaching retirement, most will diversify their investments to secure vehicles…Roth IRA’s, bonds, money markets, etc. These investments are returning 1-2 % You can guarantee these members a rate of return of 2-4% based on the length on the subscription and the clubs ability to fund. What Does This Mean? If a club requires $1 million dollars to renovate its golf course it will set up a 10 year loan. Principle available for investment semi -annually is $50,000. If each Investor invests $10,000 at 2% for the first 36 months, they will receive an interest check for $200 each six months and the $10,000 at maturity. The longer term investors can invest at 3-4% Each maturity date allows five investors or 5 increments What Is Required? For Each Project, The club or the builder or club must file a simple LLC to set up for investment The documents filed guarantee that the investors funds are secured by the value of the property. They become a mortgagee of the property behind any primary mortgage