Wise Investor

[smiles]

You have J$150,000.00 now in 2007, and plans of purchasing residential property by 2010 valued between J$3million and J$9million . What would your investent plan be, and why?

[Xenocrates]

150k to 9 mil by 2010? You can't do it safely without going Cash Plus - and even so, not without stretching your target date a little. Otherwise, it's too short a time to even come up with the 20% downpayment. Even if you do mutual funds and trade stocks or ForEx, you still won't make the 20% downpayment with only 150k initial investment unless you have wicked expertise at the trading gig or the market spikes for some reason. So here's what I'd do:

Drop the 100k into cash plus and put the 50k in a safe place. When the value is doubled in a few months, use the interest from the following months to rebuild that 100 where you initially put the fifty. Once you've done that. Let the 200k roll over in cash plus until it hits 400k. Repeat this procedure until you hit 1.2 million. The reason why you duplicate is to insure your Cash Plus investment. Cash Plus earns interest based on Foreign Exchange. Bear that in mind...

When it hits 1.2 million in cash plus, you should have already had this 1.2 duplicated in another institution (if you followed the above carefully). Therefore, use the interest off your new cash plus capital to build the 20% downpayment for the new house. Once you've done that, continue to use the interest on the 1.2 million to build another 600k in yet another institution. By this time, you should have your money distributed in at least 4 institutions:


1.2 in Cash Plus
1.2 in Some Commercial Bank (I recommend Scotia - take advantage of the Scotia Mint programme there)
600k in some OTHER commercial bank (NCB will do fine).
Your 20% downpayment elsewhere (let them create a stock trading portfolio for you and build interest on it while you wait for your other returns to build).

Then do the following:

Drop the 20% downpayment on the house (I recommend starting at an apartment).
Use the 600k to buy furniture etc.
Use the remainder of the 600k above to make a downpayment on a new car. Use the monthly interest from Cash Plus to pay off the loan.
Use the 1.2 million that you have duplicated @ ScotiaMint as your retirement fund.
Use the cash plus interest to buy everything else.

Whatever you do, DO NOT WITHDRAW FROM THE Cash Plus - unless there are extenuating circumstances. Pay attention to the Business News and take note of any downward trends in the Foreign Exchange market. Use the interest on that million odd to buy everything that you need. Make your money work for you, instead of vice versa. ;)

If you had more time to work with, I would recommend another route. But this way guarantees that you can get a $9 million home by 2010 the latest - provided that the foreign exchange market remains relatively stable.

[smiles]

150k to 9 mil by 2010? You can't do it safely without going Cash Plus - and even so, not without stretching your target date a little. Otherwise, it's too short a time to even come up with the 20% downpayment. Even if you do mutual funds and trade stocks or ForEx, you still won't make the 20% downpayment with only 150k initial investment unless you have wicked expertise at the trading gig or the market spikes for some reason. So here's what I'd do:

Drop the 100k into cash plus and put the 50k in a safe place. When the value is doubled in a few months, 1. - use the interest from the following months to rebuild that 100 where you initially put the fifty. Once you've done that. 2. - Let the 200k roll over in cash plus until it hits 400k. Repeat this procedure until you hit 1.2 million. The reason why you duplicate is to insure your Cash Plus investment. Cash Plus earns interest based on Foreign Exchange. Bear that in mind...

When it hits 1.2 million in cash plus, 3. - you should have already had this 1.2 duplicated in another institution (if you followed the above carefully). Therefore, use the interest off your new cash plus capital to build the 20% downpayment for the new house. Once you've done that, continue to use the interest on the 1.2 million to build another 600k in yet another institution. By this time, you should have your money distributed in at least 4 institutions:


1.2 in Cash Plus
1.2 in Some Commercial Bank (I recommend Scotia - take advantage of the Scotia Mint programme there)
600k in some OTHER commercial bank (NCB will do fine).
Your 20% downpayment elsewhere (let them create a stock trading portfolio for you and build interest on it while you wait for your other returns to build).

Then do the following:

Drop the 20% downpayment on the house (I recommend starting at an apartment).
Use the 600k to buy furniture etc.
Use the remainder of the 600k above to make a downpayment on a new car. Use the monthly interest from Cash Plus to pay off the loan.
Use the 1.2 million that you have duplicated @ ScotiaMint as your retirement fund.
Use the cash plus interest to buy everything else.

Whatever you do, DO NOT WITHDRAW FROM THE Cash Plus - unless there are extenuating circumstances. Pay attention to the Business News and take note of any downward trends in the Foreign Exchange market. Use the interest on that million odd to buy everything that you need. Make your money work for you, instead of vice versa. ;)

If you had more time to work with, I would recommend another route. But this way guarantees that you can get a $9 million home by 2010 the latest - provided that the foreign exchange market remains relatively stable.

OK, Explain...

1. U mean the 100,00 interst should be re-invested in cash plus as $200,000 to earn a $20,000 per month income/interest?

2. After another 35 months i should hit this target right?

3. Is that magic.. i dont get that one...

Ok... I gues i'll have to read this fifty odd more times:eusa_thin:confused:

Forget the need for furniture, car etc.. help me out again.. this time some smaller words maybe:eusa_wall

[g2cris]

Join Swiss Cash now , lastest scheme offers 25% interest per month.

am rich.

[smiles]

Join Swiss Cash now , lastest scheme offers 25% interest per month.

am rich.

Please tell me more...

[ramesh]

Did I hear someone say "Pyramid Scheme?"

[Justice]

You have J$150,000.00 now in 2007, and plans of purchasing residential property by 2010 valued between J$3million and J$9million . What would your investent plan be, and why?

You are asking for 400+% in less than four years. They say Cash Plus and Olint gives 120% per annum, so maybe that’s where you need to put your money. I must tell you though that those schemes are extremely risky and are not regulated. Therefore, it is quite possible that people could make a run on them any day and you will lose everything you have.

There is however one less risky way you could earn that type of money in less than 4 years and that is through the stock exchange. Find a stock that is selling for some ridiculous price that you know will grow within the next three years and invest in it (talk to a stock broker).

[Xenocrates]

There is however one less risky way you could earn that type of money in less than 4 years and that is through the stock exchange. Find a stock that is selling for some ridiculous price that you know will grow within the next three years and invest in it (talk to a stock broker). - That is no less risky than going Cash Plus and is far more fickle. Cash Plus is funded by Foreign Exchange. It's backed by a global market. For it to fail, it would require a market crash on a GLOBAL scale. The United States would have to default on every single one of it's international loans in order to crash the Global ForEx market - and that's only in the Western Hemisphere. The Euro market would only crash if the Asian market collapsed as well - highly improbable.

International markets are regulated by their respective governments. The last time the ForEx market crashed was back in 1988 - and that was right about when Communism collapsed, the Berlin Wall went down (2 years later) Germany became united, and the USSR defaulted on all it's loans because of the subsequent collapse of its Government. What are the odds of a similar event happening to destabilize the US dollar in such a catastrophic way, such that the rest of the world markets implode with it? HIGHLY improbable.

People fear what they don't understand, and FUDD is what keeps people out of Cash Plus. Fear Uncertainty Doubt and Disbelief are the single most crippling factors in any financial scheme. What Cash Plus is doing now in Jamaica has been done in the United States for over 2 decades now - with monumental success. It's just that our Government is feeding the ignorant public, vis-a-vis the media, "duppy story" to frighten people into not making advanced investments - because of greed.

Let me tell you something: What Cash Plus is doing now is CAPABLE BY EVERY BANK IN JAMAICA. Why do you think the Ministry of Finance is so stingy with the rest of the Government Ministries with respect to their budgets? It's because when those Ministries don't spend their alloted budget by the end of the financial year (i.e. March 30), the banks rinse out the money on the ForEx market, and make an average of 35% interest on their deposits. This presents an interest rate problem for the GoJ, since that is regulated by the Bank of Jamaica. This is why the MoF is most unforgiving when ministries don't spend their allotted budget.

Every bank in Jamaica does ForEx trading. The only difference between the banks and Cash Plus, is that Cash Plus operates as a reverse loan scheme, whereby clients LOAN the organisation their funds for real estate and capital development. Cash Plus is then contractually obligated to repay that loan with a 10% interest / month to YOU the lender. This prevents the Government from taxing Cash Plus investments, because those "investments" are not really investments, they're LOANS. The law states that the Government can tax any transaction in exchange for consumable goods or services, except loans, which are considered to be liabilities. Thats how Olint / Cash Plus outsmarted the Government!

[MOAR!]

[Xenocrates]

What Cash Plus does is this:

Invest your money on ForEx via Olint (it's practically the same company)


Earn an average of 35% interest / month (sometimes they earn 4%, sometimes they earn as much as 50% - per month!)


They give you 10% of what they earn on the ForEx market.


They use the rest to build or buy real estate capital - which NEVER depreciates.


...thereby securing not only their investments, but ensuring that if for any reason the company needs to become liquid, it doesn't need the Government to bail it out. It's just a matter of liquifying the real estate (which will sell for a higher value than when it was purchased) and giving everybody their capital back. Either way, Carlos Hill goes home rich and nobody looses.

But because Jamaicans don't know how ForEx works, or how the money market works, they believe every likkle duppy story that Omar can conjure up for them.

The only reason why Omar wants to fight against Cash Plus is because he fears (and he has ulterior motives, I assure you) that the country's cashflow will get holed up in one institution that the Government cannot tax. If the Government cannot tax it, he can't drive a new Prado every year (and ofcourse, this is a gross oversimplification). You should come up to my work place one of these days. There are more Prados in the parking lot than there is grass on the playing field - especially when Portia is having a Cabinet Meeting.

The bottom line is that what Omar is talking about is RUBBISH. Where do you think Cash Plus puts the money that it makes on each person's loan? RIGHT BACK INTO THE BANKS. Cash Plus cannot make multimillion dollar purchases on the Jamaican market WITHOUT going through the bank. So any way you look at it, the Government still gets its share of the tax.

In stock trading, you only win if the stock shots up. That same stock can also fall, costing you some loss on your initial investment. The beauty about Foreign Exchange trading is that you can win irrespective of how the market turns. You can bet either for or against the market and still make massive money. You can't do that with stock trades - not unless you're one of the traders and you are buying and selling the same stock on both sides of the market at the same time.

This is why our stock markets are more prone to crash, since they rely heavily on the fickle demand / supply of stocks and "market perceptions" of traders, a LOT of inside trading and ForEx. Any which way you look at it, it all comes back to ForEx, and that's how Cash Plus makes their dough. People fear what they don't understand. Cash Plus / Olint has just out thought the Government, and got away with it - legally. There's nothing to be afraid of.

Knowledge is the enemy of fear! Educate yourselves!

[Xenocrates]

OK, Explain...

1. U mean the 100,00 interst should be re-invested in cash plus as $200,000 to earn a $20,000 per month income/interest?

2. After another 35 months i should hit this target right?

3. Is that magic.. i dont get that one...

Ok... I gues i'll have to read this fifty odd more times:eusa_thin:confused:

Forget the need for furniture, car etc.. help me out again.. this time some smaller words maybe:eusa_wall
- I think you got confused with respect to what I was alluding to with respect to backing up your investment. Follow me in bulleted form this time:

Split your 150 into 100k and 50k.


Drop 100k into Cash Plus, and 50k into any banking institution of your choice - I recommend a Credit Union.


Let the 100k roll over in Cash Plus until it doubles to 200k. Now your monthly interest is 20k from Cash Plus.


Use the monthly 20k to rebuild 200k in the institution that you had 50k originally. Now you'll have 200k in Cash Plus, and 200k in the other institution.


Take a loan from your bank for about 5 x the 200k you backed up in there. Invest that loan into Cash Plus.


Now you'll have 1,200,000 in Cash Plus, earning 120k interest / month.


Use the 120k interest per month from Cash Plus to pay off the loan to the bank.


Let the 1,200,000 roll over in Cash Plus until it becomes 2 million.


Use the $200k interest per month to duplicate that 2 mill into your bank of choice.


Now you should have 4 million dollars in all, 2 mill in Cash Plus and 2 Mill in your bank of Choice. Take out a mortgage for your 9 million dollar home. Use the 2 million in the bank as collateral if you have to (although these days, banks seem to be more trusting).


Use the interest payments from Cash plus to pay off your mortgage. At 200k / month, you should clear that off in record time (4 years tops).


Now you have two choices. You can either:

Rent out your home and buy/build a bigger one
Retire and call it a night.


Clearer now? You can go up to 500k on the initial run to make the process even faster. It's really up to you where your threshold lies. All figures stated above are strictly for example purposes. The actual amounts you choose to replicate at are up to you.

[smiles]

Boy Xeno, Mi feel rich arreddi...

[Manu]

Blow wow.... I copy and pasting to word............ stat!!!!!

[root_gal]

Xeno, can you work out a plan like that for me starting with 0k - 10k? Thanx in advance!

[jamerican]

Xeno where you work??

[ramesh]

I'm not going to tell anyone "I told you so.....". :(

[nuhsenutten]

I'm not going to tell anyone "I told you so.....". :(

IM ITCHING TO DO IT BUT IT SOUNDS TOO GOOD TO BE TRUE.........IF I LOOSE :eusa_wall

BUT WHAT IM KINDA CONFUSED ABOUT IS THAT IF IT WAS A PYRAMID SCHEME AS U SAY RAMESH Y ARE THEY LOOKING TO TAKE OVER SO MANY OTHER INSTITUTIONS....AND IF THEY DO COLLAPSE WOULDNT THE ASSETS THEY AQUIRED BE USED TO PAY BACK T HE INVESTORS?

[Xenocrates]

Xeno, can you work out a plan like that for me starting with 0k - 10k? Thanx in advance! - Here's the problem: In every economy, there's something known as the profitable investment threshold (it's known by other names as well). This is the smallest amount of cash that would be required to cause a substantial rollover based on current market trends to cover any fluctuation in the market that would cause an unsustainable loss on your investment. 5 years ago, it was $25,000 for stocks - and that was only because of our economy. In the United States, it's $100. Today in Jamaica, it's the Jamaican equivalent, which works out to be roughly $70,000. $100,000 is ideal with our rates of inflation. Any less than that, and your turn over will at best break even on the Foreign Exchange market. In fact, when you do ForEx trading, most platforms (such as ForEx.com, AmeriTrade.com, etc.) require at least $250 USD just to start.

You see where I'm going with this right?

Investing any less than $100,000 in any financial trading scheme is too risky for both the trader and for you. Because the market fluctuates every 3 minutes, your potential loss vs. gain might not be profitable enough to be worth trading at all. You'd be better off doing a fixed deposit at a Credit Union - where you are promised only a fraction of what they make on the ForEx market in fixed interval periods - which is how they insure they make a profit everytime.

There has to be a substantial enough amount of cash to cushion against the what is known as the "Japanese Candlestick Effect". This is where a country's currency experiences sharp rises and falls on the market based on its demand and supply vs. the need for US dollars. In effect, gaining $10 and loosing $5 in 5 minutes is not profitable. Gaining $100 dollars and loosing $50 however, still leaves $50 to make 5 more trades, potentially earning $100 dollars on each $10 investment - which is far more lucrative. This is why the threshold is necessary - and why Cash Plus requires a minimum $100,000 investment to start.


Xeno where you work?? - Up a big yaad. :icon_neut

[MOAR?]

[Xenocrates]

I'm not going to tell anyone "I told you so.....". :( - Then don't. :) Realistically Ramesh, every financial institution operates based on some level of risk. Most banks that are only local to a country cannot pass the Acid Test. The acid test is a worst case scenario, where the bank considers if it would still be profitable if all of its customers came for their money on the same day. When Worker's Bank and Century National Bank bellied up, they were both considered to be pretty safe. However, neither bank could pass the acid test - that's why they bellied up when EVERYONE came for their money when they heard rumors about misappropriation of funds!

You think your money is safe in NCB? Just let some bad news reach the media about "misappropriation of funds" and see how fast that bank collapses as well. ;) It doesn't matter if it's true or not. The bottomline is that banks make their money on loans. They rely on the idiots taking car loans and paying them interest on those loans to float. Since more and more people are becoming smarter about loans, most banks are making LESS and LESS money. Why do you think there is now an Unsecured Loan Scheme at NCB? The bank wants MORE people to take loans! That's not a good sign. ;)

About taking Risks

People who don't take big risks don't reap big rewards. The problem with many people is that they only see risk intrinsically as a loss. They never try to see the other side of the coin: the potential gain! This is another reason why poor people will always remain poor - because they only treat risk as a loss, instead of trying to employ risk management.

Risk Management is where you insure your investment by banking for and against the market simultaneously. Let me give you an example:

Diversify your portfolio - When you trade stocks, you can't spend all your money buying only one stock. You have to diversify your portfolio. This way, if a stock plummets, you don't loose ALL of your investment.


Trade For and Against the Market - Buy stocks from both sides of the playing field. If you invest in Cable & Wireless stock, you MUST also invest in Flow or Digicel stock (if they exist) or the stock of some competitor. This way, if Flow makes a breakthrough you win. If CWJ makes a breakthrough, you STILL win. If neither CWJ nor Flow makes a breakthrough, you STILL have telecomms stock in Digicel, so whoever wins, you win.


Trade Foreign Exchange from competing Countries - When the XBOX 360 came out, I bought hundreds of US Dollars, because I knew that Microsoft was gonna try to break into the Japanese market again - but I also bought Japanese yen! When XBOX 360 was launched, because the US dollar was in such a high demand by Japanese companies, I made a cool 2 mill off the trades. When the PS3 came out, the Japanese yen was in high demand in the US, and so I made another cool 1.5 off those trades - because the US companies marketing the PS3 in the US need yen to bring the machines into the US. Since they all trade on the ForEx market, I could dip into the 3 trillion US dollar pool that exchanged between the US and Japan. Now even though the PS3 bombed on the US market, I didn't panic. I still managed to sell my Jap yen for Euros and US dollars and still make a wicked profit on the Japanese cars people keep importing (especially those Honda Accord Euro-Rs you see people driving around these days - those are for the European Market!). So everytime Microsoft releases new software, or there's a new MacOS, or there's a new XBOX or Playstation or Honda, I still make money. I never loose. THAT's risk management.

So you see Ramesh? You have to employ Risk Management. You can't just be afraid of a thing just because it's risky. This is why I recommended to Smiles that she backup her cashplus investment in separate "safe" institutions and then use her Cash Plus capital to buy everything she needs: House, car, land, man - anything she wants. If the ForEx market bombs, and for any reason she can't retrieve her Cash Plus investment, she's still insured in the other safe banks because she duplicated it elsewhere before attempting to invest in fixed assets (or liabilities in the case of a car).

The idea is to use the Cash Plus interest to buy what you need, instead of bludgeoning your capital or paying for a loan from your paycheck. This way;

you NEVER damage your capital, because your capital's monthly interest buys anything you need.


you'll NEVER go broke, because you no longer need your paycheck to buy anything.


and you'll NEVER pay interest on a loan ever again. Period.

Tell me if I'm getting this into your heads, guys.

[Justice]

@ Xeno

My very good friend works for Olint, My manager and another colleague both invest in Olint and Cash plus respectively and they are yet to convince me to join in. ForEx trading is like playing the lotto. A man have 10,000 US dollars and he speculate as to the viability of the dollar over the next few months, now, within the next few months that same dollar can crash because America and Britain decide to go to war with Iraq, thereby sucking up all the oil in the market, the Us economy then slumps because it has now become more expensive to produce in that country and the dollar loses its value.

Have you read the last IMF report on Jamaica (you are at that ‘place’ so I assume you have)? Did you read what they say about the ForEx trading in Jamaica? Did you read Mark Wignall’s investigation into to Cash Plus? Did you know that when the banking sector collapsed in the 1990s that a lot of them were doing what Cash Plus is now doing? While I won’t fight down ForEx trading I will caution people to understand what they are investing in before they do so especially when the Government sees it has a threat.

[Xenocrates]

I agree with you to some extent, Sir Justice. But I'm gonna go out on a limb and say that I'm not a pessimist, since both stock and ForEx markets are driven by perceptive trading. Neither is safer than the other. The banks are only marginally safer than a dedicated ForEx trader - but only provided that everyone thinks they're safe. The bottom line, Justice, is that no financial system is fool proof, since they all operate based on investor perception. The success of every financial system relies on whether or not its investors think it is safe.

Furthermore, I've discovered that Mark Wignall is quite a hyperbolic writer. It really boils down to his words against everyone else. He has a natural talent for unnecessarily blowing things out of proportion. But I digress. Everything has its purpose. We can't have the entire Jamaican population investing in Cash Plus, Olint or ForEx for that matter. Somebody needs to support the banks! http://i4.photobucket.com/albums/y142/xenocrates/Smilies/mwahaha.gif

[Manu]

Xeno.... is it wise to borrow the first 100,000 to invest???? Then afterwards you split it up after u break even and pay off the loan? The only thing that can go wrong is if the forex trader crashes right? Then you'd have to run away!

[Xenocrates]

Dude, most of the people who're in Cash Plus borrowed their initial investment. I am personally acquainted with a woman who borrowed 400k to start. She paid off the loan in approximately 5 months, and today, has a net worth of 7 million dollars - invested in "safe" banks. She still uses Cash Plus to buy everything she owns, even though she could use the 7 mill to do just that. Risky move? Yes. But did she profit? I don't know if any of you know what having 7 mill in the bank feels like, but I can tell you, as a gross understatement, it feels good. ;)

[RachieBabie]

anybody wanna lend mi the 100k to start up with cash plus?.....

[root_gal]

anybody wanna lend mi the 100k to start up with cash plus?.....

Yeah me too. Since Xeno said nothing can go on for my little 10k :(, I need another 90. . who wana buss me?:D

[Manu]

Xeno.... wanna support this new charity I found online? It's www.helpanegroout.com

[Bling]

Are these people Cash Pus and Olint on the net? is their a site or link that i could use to obtain more info about them?:icon_idea

[Xenocrates]

Not that I know of, Bling. But, there are several Gleaner / Observer articles about the company. Here're a few:


Boss reticent, Cambio license cancelled, not registered to trade says FSC, list of Cash Plus owned businesses (http://www.jamaica-gleaner.com/gleaner/20061103/business/business7.html)


This article is for all the nay-sayers: Cash Plus purchases the Hilton Hotel (http://www.jamaica-gleaner.com/gleaner/20070514/business/business1.html) - This is the first time that the Hotel has been owned by Jamaicans: which is HUGE. The Hotel is worth 2.8 billion, and it goes to show how financially stable the Cash Plus organisation is. How many Jamaican banks have this kind of capital to back their liquid? None.


FSC considers taking Cash Plus to court (http://www.jamaica-gleaner.com/gleaner/20070518/business/business10.html) - Read this to get a good picture of why people are feeling edgy about the company. The fear is being fed by a Government driven organisation. I deliberately posted this particular article to give board members here a balanced perspective of the issue. Let me see if people pick up what's going on here.


Do not fear a FINSAC 2 (http://www.jamaicaobserver.com/magazines/business/html/20070517t220000-0500_123140_obs_do_not_fear_a_finsac_____wynter.as p) - Says Bryan Winter of FSC. The same dude who's leading the fight against Cash Plus, actually admits that the alternative investiments schemes are actually quite stable - go figure. He's just worried about the risk involved since info is scarce on the companies (i.e. Olint and Cash Plus). If you read the article in the point above, you'll see why.


More for the nay-sayers: "Whatever prejudgments one may harbour about Cash Plus, one important factor seems to be obvious. With close to 2,000 persons on its payroll, 12 major subsidiaries involved in phone card distribution, telecommunications (Megaphone), development and construction, food, security services, import-export, computers, hotels and restaurants, automobile and auto parts, Cash Plus has become a major player in the corporate world after only five years since the concept came to Carlos Hill, chairman and CEO." - Read more here: Cash Plus gives its answers (http://www.jamaicaobserver.com/columns/html/20070407t220000-0500_121403_obs_cash_plus_gives_its_answers_.asp). Still on the edge? Then you're just paranoid. Article written by Mark Wignall.


Some corrections here:

I insinuated earlier that CP and Olint were inextricably linked. They're not. Rather, they're trading partners, and not a part of the same business entity as I had stated earlier. Thusly,


Carlos Hill (not David Smith) is the head of Cash Plus. David Smith runs Olint. Concordantly,


While Cash Plus used ForEx trading vis-a-vis Olint to jump start its business, it now seems to have traded liquid risk for liquid stability, as it is now more real-estate based than fiscal trading based.


[MOAR!]

[Xenocrates]

The most important thing to note here is this:

Question: How does Cash Plus earn money to be able to pay interest of 10 per cent monthly?

Answers: 'Cash Plus Group of Companies is best viewed as a conglomeration of viable companies created through mergers, acquisitions, joint ventures, and partnerships mandated to strict adherence to the best business practices while continually providing gainful employment for Jamaicans.'

'This has been accomplished with sound investment in viable companies which are mostly involved in day-to-day trading activities. Usually these companies are acquired after sound feasibility analysis to ensure, synergy with the Cash Plus group of companies, safe leverage which allow the Cash Plus Group to take over a company utilising approximately 3:1 leverage, strict management oversight to ensure that acquisition is debt free in three to six months.

This policy has enabled the Cash Plus Group of companies to make over 50 acquisitions that fit within the group, and to operate primarily debt-free while maintaining a 4:1 loan to asset ratio.'

Translation: Remember I mentioned earlier something called an 'Acid Test'? This is what is being referred to when there is mention of a 4:1 loan to asset ratio. What this means is that on average, every four persons' loan to Cash Plus is tied to 1 fixed asset acquisition. This means that if for example:

Smiles, Rachie, Root_gal and Manu were to all invest 100,000k with Cash Plus, your collective loan aggregate would be affixed to any one of Cash Plus' real-estate acquisitions. After 10 months, you can withdraw your money or let it continue to roll over. You also have the option of receiving your interest payments as monthly cheques.


This means, unlike the Bank which only stays liquid based on your account and on its profit from loans and forex dealership, Cash Plus gives you a LIEN or a CHARGE to a piece of any real estate that it owns, so long as you remain with the company.


As you know, Real Estate NEVER depreciates. Therefore,


Even if Cash Plus were threatened to close down, you OWN a piece of any real estate it owns. It wouldn't need to be bailed out by the Government in order to return all of its investors' capital, like the Banks would. (See point #4 above).


All that Cash Plus would do, is liquefy that piece of real estate, and return your current investment total IN FULL. Since the real estate value would have increased from it's initial point of acquisition, Carlos Hill would still make a profit.

Any more questions class? Or are you :sold:?

[Manu]

Xeno.... of course property value can go down. If the area becomes plagued with crime or too many "ghetto" people move in the area, then it loses it value. Also natural disasters can affect the value of real estate.....