How To Use Your IRA To Buy Real Estate
January 25, 2012 | 
Author In life there are a lot of things we learn by accident, which can be very beneficial to us. Sometimes understanding these processes can take a while. Sometimes after proper explanation …BLAM, you get it. That is exactly what happened to me. When I first heard about the topic, I will discuss in this E-book, it was perplexing, however, I knew that it could reap huge rewards in the future. It took a while for me to understand the process. I remember trying to tell a buddy who owned an apartment building about _________ and what it could do for him. I remember getting it all confused (like telling someone a good joke, but while you are trying to say the good joke, in mid sentence you realize that you don’t remember it all and it is not coming out right, so you just say forget it because you are screwing the joke up). Fortunately, by mistake I came across the company Pensco Trust who has educated me on this great opportunity of____________. I am considered one of their “Preferred Professionals.” My learning curve is your benefit. Enough with my teasing games, the purpose of this E-book, is to educate you on Self Directed IRAs. So buckle up!
This publication is made to provide basic information in regard to Self Directed IRA’s. It is presented with the understanding that I am not engaged in rendering accounting or legal advice. If you need legal advice services of a proficient professional should be contacted. I can not in any way guarantee that this material will be properly used for the purposes intended and I assume no responsibility for its correct and proper use.
We all know that Social Security (SS) is struggling and the money there will eventually disappear. Prior to 1935 there was no personal SS. All that existed were people saving their money in their bank/under the mattress. In 1935 SS was created. Remember that this was the same time period of the Great Depression. Keep in mind the life expectancy back then was like 62 years old. Now it is 76. Baby Boomers make up a huge portion of the population. Baby Boomers are retiring everyday. You want some hard facts? Well according to Research Corporation Study: The New Landscape of IRA Rollover © 2005 BISYS Retirement Services.
o The first of the baby boomers reached age 59.5 in July 2005
o 4 million more will reach age 59.5 each year
o 24 million people will reach age 65 by 2010
o 55% plan on to work after “retirement”
Now on the flip let’s say there was no problem with SS. Have you ever talked to someone who gets SS checks? They don’t get a lot of money. It is sad sometimes. I am not trying to offend anyone, but the majority of the older people you see at Wal-Mart greeting you and marking your receipt didn’t have a “nest egg” to rely on when they “retired”. The topic I will discuss will prevent that from ever happening to you and I.
1974 congress created IRA (Individual Retirement Account) to supplement Social Security. We know these are programs to help shelter money away for tax benefits. Typically people go after the traditional investments. We always hear about stocks, bonds and CD’s. Yes all investments have risks, but the thing about these investments is that you can not affect the outcome of the business/your return. You are a spectator, watching the game. Also, you can’t use leverage (an example of using leveraged will be discussed later). Also, with stocks if any little blip in market occurs, like oil, war, scandal, etc. your value could go down. Real estate does go up and down but generally you don’t lose all of your money in worst case scenarios. Real estate appreciation has kept pace or exceeded inflation. It is a cycle. When it goes down, the value does not go down instantly (like Enron).
Self Directed IRA (SDI) an overview. Now I am not bashing stocks, I have them, if you talk to any financial planner, they will tell you to always be diversified in your investments. This is what SDI does for you. Ideally you should have SDI, stocks, bonds etc.
SDI has been a well kept secret. Why? I think it is because of ignorance, and I also the folks on Wall Street don’t benefit. A broker at an investment company will not tell a person about it, because they can’t make money off of the transaction (let alone having them understand how it works). The last reason is because there are “professionals” who don’t have a clear understanding on its use.
To get a SDI, you would either have to go through an Administrator, or a Custodian.
What is an Administrator? Banks, brokerage firms (like Charles Schwab) and insured credit unions.
What Is A Custodian?
There are very few self-directed IRA/401k custodians in the United States. In order to be a custodian for self-directed products, the custodian is known as a “passive custodian.” This simply means that they are obligated by law to provide only custodial and administrative services for the qualified plan. They can provide NO investment advice. This tremendously reduces the fees associated with traditional investments because you, the investor, make all of the investment decisions. They are also FDIC insured.
What is the role of the custodian
o Holds your IRA assets
o Performs all IRA transactions
o Keeps all IRA records
o Provides all IRS required reports
o Keeps IRA plan in compliance
o Provides access online access
There are only three things your SDI can’t invest in and they are
o Collectibles/antiques
o Life insurance
o Stock of a sub-chapter “S” corporation (these are companies that are traded publicly on the stock market)
As long as the transaction is for investment purposes and you have not created a “prohibited transaction” (will discuss later) the list of investments are endless.
The beginning of a long list of real estate you can buy with your SDI
o Foreclosures, Options, Pre-construction, raw land, apartments, offices, strip malls, mobile homes, public storage, any type of investment property
o Trust deeds/mortgage notes
o Privately held C-Corp stock, LLC membership
.
The rules on prohibited transactions
o Cant buy from or sell to a disqualified/prohibited person
o Cant make personal use of property
o Cant use SDI as collateral for personal loan
Personal use prohibitions
You can’t personally use a vacation home. Even if you rent it out for 354 days and spend one day in it, this is illegal. You can’t perform maintenance on the property. You can hire a maintenance crew using the money coming out of your SDI, but you can’t physically work on the property. You also can’t hunt on raw land, dock boat at a SDI owned boat slip. There was a person, who worked with Pensco, that bought a specific area of a water fishing spot in Alaska. The person, couldn’t fish there, so she leased out the area to other fishermen and received profit.
More on disqualified persons
You can’t buy from a person providing services to the investment. It has to be a clean slate. It can’t be business between employer and employee. If you have your SDI in an LLC and you want to buy property, you will not be able to if you own more than 50% of the company. You can’t buy/sell to a member of your family including spouse, ancestor, lineal descendant and any spouse of a lineal descendant. Meaning, not you parents, children, your son in law etc. But, you can buy/sell to a sibling. There can’t be a sale/exchange/leasing of any property or providing a loan between a plan and a disqualified person. Lastly, you can’t buy something you already own (SDI can’t be used for funds to pay off your mortgage. There should be no perceived direct or indirect personal benefit to the account owner).
Basic rules
o Can’t involve the account holder, his/her spouse a lineal ascendant/descendant of family nor the spouses of your children and you can’t use SDI funds to pay off a personal mortgage
o Can’t make personal use of property (must be for investment purposes only)
o Can’t personally guarantee the loan for your SDI nor use the SDI as collateral for a personal loan
o Can’t work for or take income from an SDI investment
o Can’t have your spouse, nor your family members (your siblings are ok) own the property prior to its purchase by your plan
o Can’t have your business lease or be located in or on any part of the property while it’s in your plan. You may receive any property as a distribution from your plan as a retirement benefit
What transactions are prohibited?
The following are defined as prohibited transactions when they involve the account holder:
o Borrowing money from the SDI
o Selling property to the SDI
o Receiving unreasonable compensation for managing assets for the SDI
o Using the SDI as security for a loan
o Buying property for personal use with the SDI
o Collectibles/antiques
o Life insurance
o Stock of a sub-chapter “S” corporation
50% rule
If a disqualified person(s) owns 50% or more collectively of an entity, then the SDI can’t engage in a transaction with the entity because the company is considered a disqualified person.
Using IRA as collateral
You can’t use your SDI as collateral for a loan. If you will get a loan it must be an unsecured loan. If you default in paying the loan, the lender can’t go get the money out of your IRA, nor can they go after personal assets.
Any type of prohibitions have penalties, if you violate them. SDI is no different. Here are the consequences if you do not comply:
o Loss of IRA status resulting from prohibited transaction
o Loss of tax exempt status
o Income tax on account value
o Penalties and interest
o Possible audit to determine extent of prohibited transactions
If you really want more information on the rules check out:
o IRS code 4975
o UDFI/UBTI: IRS code 598
o Department of Labor (DOL) 2004-8
Tax court cases
o Swanson 1997
o Rollins 2004
o Rousey v. Jacoway 2005
Ways to invest by using your SDI
o Property purchase all cash
o Property purchase using a loan (NOTE this has not always been the case where you can get a loan from a bank for your SDI. These past couple of years a few establishments are offering loans to SDI. I have those contacts, contact me and I will explore options for you)
o As a member of an LLC or “C” Corp.
o As a lender on a trust deed (mortgage note)
o As a partner in a joint venture
o As a Tenants in Common T.I.C. member (if any of the terms I use are unfamiliar to you, look them up online)
o Make a private loan to an entity or person (hard money loans)
To give you ideas of what investors have bought through Pensco:
o Largest US massage school
o Cypress tree farm in Costa Rica
o Fish farm in Salinas, CA
o Interests in movies, plays
o Condo in Lithuania
o House on a private lake in Colorado
o Thoroughbred race horse
o Nudist resort in Virgin Islands
o Over 35 U.S. banks
o Napa Valley B & B
o Biotech company
Pensco’s top investor success story is going to amaze you on the potential your SDI can have. In March of 1999, four men opened up SDI accounts. They each invested individually and through their IRA’s in a company they were starting. They brought in other unrelated investors. That company is bought out a couple of times. The company goes public and sells out in June 2002. Well how much did they make? CEO made $34 million (12,000% return). Chief scientist made $22 million. CFO make $17 million. Marketing VP makes $8 million (4,000 return) What is better than that? They all invested $2,000 through their IRA’s except the CEO who invested $1,800. Pensco explained the features of the 1 year Roth IRA and they all chose to invest with a Roth IRA. If the CEO gets an average return of 12% until he is eligible to withdraw tax-free at 59.5 he will have $1 billion, $100 million tax free! Yeah that is right…show me the money!
Let’s compare
Real Estate Investing – with SDI
o Tax deferred growth on income and cap gains
o No 1031 requirement!
o No annual tax reporting
Taxable investments non SDI
o Tax deferred cap gains (if 1031)
o Tax on net earnings
o Annual reporting required
How it works
You have an account with Pensco (you can roll over your current IRA account to them) you tell them what you want to invest in, they do all of the paper work, make out the check and now it is in your trust account. All money that is needed for expenses and all profits go into/taken out from the trust account. The title of the property in your IRA will be held with Pensco Trust as follows: “Pensco Trust Custodian, FBO (client name) IRA, (Acct #). All documents will be reviewed and initiated by the you (the IRA owner) and signed by Pensco Trust.
Introducing SDI on steroids in the neck…Solo 401(k)
A solo (k) is a combined salary deferral and profit sharing retirement plan for sole proprietors, small business owners with no employees (other than part timers working less than 1,000 hours per year or their spouses).
Roth contributions can increase tax free $15,000 to %20,500 per year or 30k to 41k per married couple (for 2007). Unlike a Roth IRA, there are no income limitations placed on the contributor. You could be a zillionaire and it would not matter! Currently a single person making over 110k can’t contribute to their Roth married couple is 160k.
Who can benefit from Solo (401)k
o Real estate brokers
o Consultants
o Contractors
o Lawyers
o Electricians
o Any sole practitioner
o Even if you work full time for an employer and have a business on the side where you are a sole proprietor you can establish a solo K
The difference is…
o You can borrow up to 50k (or up to 50% of balance, if less) from your Solo 401 k
o You can invest in life insurance
o You can invest in “S” corporations
o You can avoid UDFI and capital gains UBIT (UDFI and UBIT will be discussed later) when using leverage to buy real estate
o A portion of your savings can grow tax free for life
o You can put away more money faster with larger contributions
o No income cap on contributing to the Roth component
o Above 50 year old employee has the option to put up to $20,500 per year away, to grow tax free
Why appealing
o Allows the sole proprietor funds to grow tax free
o While Roth IRAs allow similar contributions they are limited to $4,000 in 2007 ($5,000 if over 50), and to those earning annual gross income of less that $110,000 for that year
o You can increase tax free growth opportunities by also contributing to a Roth IRA ($4,000/$5,000) in addition to the Solo (k) (15,500/$25,000), if you are eligible (check with Pensco for details)
o A married couple in business together can put up to $51,000 ($25,500 each ) per year of after tax money into retirement accounts that will grow tax free for their lifetimes and those of their heirs (including $5,000 Roth IRA contributions) and another $59,000 ($29,500) each that will grow tax deferred. That is a total of $110,000 as a couple of which $51,000 will grow tax free (assumes each is over 50 and earns less than $100,000
o And there is no income limit on contributions
o May roll pre existing plans and IRAs into it
Types of purchases of SDI
All cash
Your SDI buys one property all cash. No debt, LLC, and partners. When you do this your SDI needs to have enough funds to cover purchase price, all closing costs, custodial fees and ongoing property expenses. If you run out, you can loan your personal money to your SDI (with interest and principal).
Multiple SDI – All cash T.I.C.
SDI may belong to anyone – even prohibited people. All SDI go on contract, and on title, as “tenants in common.” Ownership percentage must be identified and all costs and proceeds prorated correctly according to these percentages.
Multiple Parties – IRAs & People all cash T.I.C.
Same as multiple IRAs, as long as there is no loan (as an all cash deal) it does not matter who the SDI belongs to, or who the people are. All names must be on contract and title for unique percentages.
All cash
Buy/sell, with/without, friends/family is by far the easiest and most common transaction. When this happens all income comes back to SDI, so having a1031 exchange is not required to defer taxes. The money in your trust account is also used to pay any expenses incurred. Real estate investment related expenses are paid out of the SDI.
Getting a loan to buy
In the past there were NO banks lending to SDI. Only until recently a few banks in the nation offer this service. The loan that is offered is a non-recourse loan. This is great news, because now investors could use leverage.
When you get a loan for your SDI you:
o Can’t guarantee the loan personally.
o Can’t co-invest with your IRA.
o Pay the tax on any income or capital gains derived from leverage.
o Increase the returns and growth of your SDI two to three times.
What is a “non recourse loan?”
o You are not personally liable for repayment of the loan. In the event of a default/foreclosure the lender can only recover the property and your equity.
o Typically requires 30-35% down payment. If there is low cash flow or the condition of the property is bad then they may require a larger down payment.
Non recourse loan process
o After setting up the SDI, it will typically close in 30 days.
o Cash out refinance: funds are distributed back into the SDI.
THERE IS NO PRE PAYMENT FOR A NON-RECOURSE LOAN!
Property Eligibility
o Single family residential
o Condo’s (100% complete, 33% or more sold, and HOA turned over by developer)
o Duplexes
o 4-plexes
o Multi-family (5 or more)
o Commercial property: including retail, warehouses, and office buildings
Ineligible properties include:
o Residential with large acreage
o Raw land
o Farms
o Manufactured homes
o Hotels, condo-hotels
o Co-ops, timeshares
o Senior or assisted living facilities
o Non-franchise restaurants
o Entertainment properties
o Mini-storeage
Requirements for debt financing must be verified for purchase along with reserves (10-20% loan amount).
Documentation required for loan approval:
1. Completed loan application
2. Most recent asset statement verifying IRA assets for purchase and reserves.
3. Purchase sales contract
4. Acceptable real estate appraisal for the property to be financed. The appraisal must come from lender.
5. Copy of drivers license
6. Property insurance should read the IRA/LLC as the insured
Income requirements for homes
o The financed property must generate sufficient net operating income to exceed debt service payments by:10%single family (less then 10% or negative cash flow is acceptable with sufficient reserves on SFR). For 2-4 unit properties it is 10-15%
o IRA assets must be verified for purchase along with reserves
How the closing process works:
1. Title company prepares closing documents.
2. SDI owner initials for approval.
3. Originals sent to Pensco for execution by the tile company or broker.
4. Pensco signs, notarizes and returns package. They overnight and wire balance of funds for closing.
5. Title company forwards recorded grant deed to Pensco.
6. Through your trust, you now own the property.
Another way to invest using IRA
This is a true story from a Pensco client. One investor wanted to buy a property in San Francisco. They buyer didn’t have all of the money for a down payment. So, he approached his friend and asked about him if he was interested in earning a certain percentage return on his IRA. He agreed. So, the buyer took his portion and combined it along with his friends SDI, to purchase the property. His friends SDI issued him a second on the property. This created a “win” situation for everyone. The buyer gets the property. His friend gets a great return on his IRA (that is secured by real estate) the sales agent wins because the deal closed. The owner of the property is happy, because they sold the property. The bank, is happy because they are making a return by giving a loan. All of this is possible because the SDI was used.
There was another person, who used his SDI to buy pre construction property. In Las Vegas, there was a developer who was forming a community. The investor approached the developer and solved a problem for them. Apparently there were some fall outs with buyers. The investor, said (paraphrasing) “I will buy any homes that fall out of escrow for a discount.”
If you would like to read upon an investor who used their SDI, look up: Time June 14th 2005. Investor used $195,000 to invest in property on Marco Island FL. Sold resulted in a $500,000 profit going directly to IRA
Rental property purchases
Question:
I want to purchase a rental property for $100,000 can I use:
o A. $30,000 of my IRA funds
o B. $65,000 of my personal funds
o C. $5,000 loan from my brother to do this?
o D. All of the above
o Answer: D
In the begging of this E-book, I expressed that using SDI has been kept a secret. One of the reasons is because of misinformation from “professionals” is from CPA’s. Some CPA’s say not to use an IRA to invest in real estate because:
o You will lose tax benefits e.g. depreciation (not quite)
o Using SDI “destroys” tax deferred compound growth in IRA (wrong)
o You have to pay ordinary income tax versus capital gains tax at the end of the line (true just like any other IRA investment)
Some CPA view points do not take into consideration the following:
o They do not address need for diversification in the retirement portfolio to hedge against other assets
o Broadly implies that even if you know that you can get better results investing in real estate through your SDI you shouldn’t do it
o It is IRRELEVANT if real estate out performs other IRA investments
o IGNORES the facts that 44% of net worth in US is in real estate
o Does not recognize that after tax yield is the primary goal of the investor
Unrelated Business Taxable Income (UBTI)
If your SDI produces income from activity not “substantially related” to the exempt status UBTI comes into play. The purpose of UBTI was to alleviate unfair competition by exempt organizations with taxable enterprises. Basically when you conduct business and it is not passive income, you come across UBTI. Further explanation; if your SDI is going to open up a restaurant, you are going to have ordinary income. The IRS feels that is fair that you pay tax on the money you make everyday. Because it is not fair for you to open up a restaurant and for someone else to open up a restaurant down the street, but you don’t pay tax. If it is “ordinary income” UBTI applies. If it is passive income UBTI does not apply, such as rent, interest and capital gain.
Unrelated Debt Financed Income (UDFI)
Income generated by activity that had debt financing. Tax is applied to that portion of gain/income that is debt financed. Most “passive” investments income such as rents from a property are normally excluded from taxes, but such investment income is going to get taxed if derived from debt financed property (UDFI). Basically, if you buy a property for 5 million. You have your SDI, put up 2.5 million and you get a loan for the other 2.5 million. Well the gains you get from the borrowed 2.5 million from the bank will get taxed (UDFI). You will not get taxed on the portion that comes out of your SDI.
Free Reverse License Plate Search Online
Getting into an accident can be traumatic especially if the person who was driving the other vehicle leaves the scene. There is a tool that can help you make sure that that person pays for what they did. Searching for there information online can produce there name and other information you need.
Using a Free Reverse License Plate Search can be a great tool when you need to find out who the registered owner is of a car. There can be an assortment of reasons that you want to get this information. For instance, you got hit by another driver and they left the scene of the accident. If you were lucky and were able to get there license plate number then you can use that number to get the registered owners information.
Another scenario is you may be driving and witness another driver driving all over the road. They may even appear to be driving drunk because they are crossing all lanes of traffic. Write down there license number to find out who they are. You can make the road a safer place to drive by using this tool.
When looking for a site to search make sure that the location allows you to search for free. There are license plate search site that charge you up to $40 or $50. It is not necessary to pay this amount of money for a search that is offered for free. When searching for the identity of a person make sure you get there home address, phone number and in some cases where the person works. This can be very useful information. Many people who are purchasing a used car want to know more information about the car they want to buy. An identity search can help you out there as well by giving you background information on that car.
Remember if you need to find out identity information use a Free Reverse License Plate Search Online. This is your best option to get the information of the owner of the vehicle. You never know when you will find your self faced with this situation so having a place to get identity information can really come in handy.
Choosing the Best Floor Steam Mops – Top Rated Steam Floor Cleaners
The advantages of using a steam mop to clean you floors are many. Steam cleaning with a good steam mop allows you to penetrate deep into the surface of your floor without using chemicals. The heat from a steam mop will loosen the grime built into your hard surface floor and will allow the cloth to quickly wipe it away. Steam cleaning your floors is extremely beneficial to the environment as no chemicals need to be used, thus not leaving any residue behind on your floor.
The heat will kill viruses, bacteria and other nasty germs that are tracked in from outdoors. Steam cleaners can clean sealed hardwood, linoleum, ceramic, tile, marble, pergo and many other types of floors. It is recommended by many steam mop manufacturers to check with your floor manufacturer before use and on unsealed floors to use with caution. Moving a steam mop in a back and forth motion is recommended verse allowing the steam to release full force in one location without movement. Many steam cleaner mops come with a carpet tool attachment to allow for quick steaming of carpets to sanitize.
There are also a few steam cleaners that allow for the handle to be detached so you can use it like a handheld tool to steam mattresses, counters, furniture and other area’s in your home. Below is a list of several steam cleaners and the key features each has. Important is heating time (as you won’t want to wait long), weight and length of cord. If cord is small you can always use a good extension cord for more length and less aggravation using. Now put away the back breaking bucket & mop and start enjoying the benefits to one of the many steam cleaners listed below!
Oreck Steam-It Average Price $149:
Oreck Steam-It
8.1 Pounds
1 Year Warranty
16 Ft. Cord
50-60 PSI
Heats 30 Seconds
Holds 1 Liter of Water
Includes 2 Washable Microfiber towels, 2 Bonnets & 6 Attachments
H2O STEAM MOP Average Price $79.99:
2 Microfiber Cloth Pads
Measuring Cup
Carpet Glider
User Manual
360 Degree Pivoting Head To Get In Corners
Ready to Use Fast
Easy To Refill Water Tank
Dries Fast
Kill Germs & Bacteria
Lightweight & Ergonomic Design
Shark S3101 Steam Cleaner Floor Mop Average Price $67.50:
1 Year Warranty
20 foot power cord.
2 MICRO FIBRE PADS INCLUDED
LIGHTWEIGHT.Weighs only 3 pounds.
DEEP CLEANING.Super-heated
HASSLE-FREE.Washable micro-fiber
STEAM ON DEMAND
Eureka Envirosteamer 313A Lightweight Steam Mop Average Price $99.99
Eureka Envirosteamer 313A
6.5 Amps
25 Ft. Cord
12.5″ Cleaning Path
5.4 Pounds
Bissell 1867-7 Steam Mop Average Price $90:
Steam Mop Steam On Demand Ready in 30 Seconds
Washable Microfiber Mop Pads
360 Swivel Head
Slim Lightweight Design
Quick Release 18 Ft. Power Cord
100% Chemical Free
Weight: 6.8 lbs
1 Year Manufacturer Warranty
11 inch Cleaning Path
Cleans and Dries Floor
Microfiber Mops Washable 2
Monster EZ1 Floor Steam Cleaner Average Price $119:
Ready to Clean in 3 Minutes
4 Levels of Steam
Weight: 6 lbs
1000 Watt Boiler
500ml Water Capacity
Front Steam Jets
25 Foot Cord
260 Max Steam Temp
12 Inch Cleaning Path
Double Steam Distribution System
Trigger Controlled System
One Year Manufacturer Warranty
Accessories Included: Replaceable Microfiber Cloths & Carpet Sledge Attachment
Reliable Steamboy T1 Steam Floor Mop Average Price $120:
Reliable Steamboy Steam Floor Mop
1500w Heating Element
Immediate Steam No Waiting
180 Degree Swivel Head
11 Inch Cleaning Path
Ergonomic Handle
Lightweight 8 Pounds
16 Foot Cord
2 Washable Cloth Pads
1 Water Filter
1 Carpet Glide
1 Year Manufacturer Warranty
Haan FS-20+ Steam Floor Mop & Deluxe Carpet Kit Average Price $99:
Chemical free
Ready to use in less than 3 minutes
Color Signal Indicator lets you know when it is ready for use
Convenient lights indicate when power is on and when water tank needs to be refilled
Ergonomically designed to reduce hand and wrist stress
Telescopic handle adjusts for height and easy storage
Less than 4 pounds with a full tank of water
Durable construction to ensure years of use
Safe and effective on virtually all bare floor surfaces
Patented technology uses high temperature steam at over 212°F
15 powerful steam jets
Patented, super absorbent multi-layer microfiber
High quality microfiber pads are reusable and machine washable
Deluxe Sanitizing
Tray Option
License Plate Search – How to Trace License Plate Numbers Online
Do you have a license plate or license tag number and you need to find out the name and address of the owner of the vehicle? If so, you might have already realized that there is no free online database of license plate numbers.
Don’t worry. There is still hope. If you need to conduct a reverse license plate number search online, below are several methods to accomplish your goal.
The first method is to hire a private investigator. Find your local phone book and turn to the private investigation pages. Start calling and get prices for how much they charge to run a license plate trace. You can expect to pay $150 to $300 to get this service completed in your local area.
The next method is to use a large online private investigation service like Abika.com or BestPeopleSearch.com. These services will charge you $79 or more to search by license plate number. You will normally get back a combination of the following information: the first and last Name, address, registration and expiration date, make and model of vehicle, VIN number, title number, lien holder name. These services can normally get information for most states in the United States as Canadian Provinces. License plate data for additional countries are also available depending on the service.
The third option is to join a private investigation tools membership service where you have access to databases and resources used by private investigators. These memberships normally start at $29 to $59 per year and give you access to all sorts of people search databases used by private investigators. This is a good choice if you’re willing to do the work yourself and you want to save a little money. The downside to this option is there is no guarantee that you will be successful in your search.As you can see from the options above, there is no such thing as a free reverse license plate search. About the only way you can get it done for free is if you know a law enforcement officer who will conduct the search for you (they have access to all of the databases).
Foreclosure Lawsuit – What the Bank Must Prove
This article will be the start of an ongoing series that will examine various general aspects of the legal environment of foreclosure. Homeowners far too often avoid going to the initial court hearing to discuss the mortgage default, and the bank has a very easy time of proceeding from missed payments to sheriff sale to eviction. There are a number of methods and ideas that can be used during the court procedures, though, to give these families more time, more options, or a second chance to stop foreclosure and get their loans back on track. But without a broad understanding of what the court process is designed to accomplish, these opportunities may be lost before homeowners know they have them.
Every legal claim made by the lender has numerous elements that need to be proven and backed up with facts. Obviously, in a foreclosure lawsuit, the main claim will be that a contract was breached, namely the mortgage loan secured by the house. The lender will attempt to prove that the homeowners did not pay as agreed and ask the court to grant them a judgment, which will allow them to sell the house at a county sheriff sale, in order to pay off this judgment. In most foreclosure cases, this seems like it would be a pretty open and shut case, especially if the family knows it has not made a payment in several months. This may be one reason that they do not often make it to the foreclosure court hearing — they know they have little defense and believe it will do no good to argue that a financial hardship has caused them to fall behind.
It is important, though, that homeowners understand how these processes work and what the lender has to show in order to have a legitimate case. The first element that the foreclosing bank has to prove is that there was a legally binding contract between the lender and the homeowners. After a loan has been sold numerous times, it may seem quite confusing to the average homeowner of who actually owns the mortgage. In fact, with the amount of technical, incomprehensible adjustable rate mortgages and interest-only loans and subprime mortgages that were packaged and sold off to hedge funds, financial institutions, and investors, there may be some very tough questions that the lender would have to answer if challenged on this element. A court in Ohio recently dismissed fourteen foreclosure cases because the lender could not prove they owned the loans, so this is not as easy as it would seem.
The second aspect that mortgage companies have to prove when suing for foreclosure is that the lender performed as agreed under the contract. Wading through dozens of pages of mortgage contracts is not the most inviting exercise for the average homeowner, but understanding exactly what the lender’s obligations are during the term of the mortgage may help them prepare a better answer to the foreclosure lawsuit. In particular, the lender is usually responsible for collecting and applying payments in a reasonable manner, a practice some lenders have been caught not following.
In fact, we receive stories from homeowners every day that state their lender did not apply a payment, applied payments incorrectly, or lost payments completely, which led them to initiating a foreclosure unjustifiably. There are also literally hundreds of stories from homeowners who have had their loans serviced in a fraudulent manner. Simply assuming the bank has performed its duty under the contract relieves them of the burden of proof. Homeowners can ask for real proof that the bank actually did fulfill its own obligations under the terms of the agreement, a request that the bank may have trouble complying with.
The lender must also show that the homeowners have breached the contract, thereby satisfying the proof required of the third element. This is usually easier to show, because they can bring in payment records with clear gaps in payments. However, homeowners who have had payments misapplied or cashed but not applied at all can state these defenses, and the lender must prove that they did not actually receive payment. If the foreclosure victims can show they have not breached the contract, there is usually no case against them. In fact, they may have claims against the lender who was negligent about collecting payments and began a potentially fraudulent foreclosure lawsuit against the clients.
But even in cases where the payments were simply never sent in due to a financial hardship, homeowners can often utilize other resources of the court to resolve the problem. Often, judges would rather keep the case from going to trial if a settlement can be reached. This may involve the two parties coming up with a mutually agreed-upon repayment plan, temporary loan modification, or other similar program which gives the homeowners another chance to get back on track with the mortgage and repair their credit.
The final element of a foreclosure case that the lender must prove is that they have suffered actual damages due to the homeowners’ breach of the contract. Obviously, they are not collecting interest or principal payments, which does hurt the lending business and decreases their ongoing revenue. Also, they have to expend more resources in attempting to collect the missed payments, reviewing loan documents, examining the benefits of foreclosing on the property, paying costs of foreclosure, and so on. It is clear that banks suffer some damages of the loan during a foreclosure, even if it is only a very small part of the company’s overall business.
The burden of proof falls upon the bank to prove each and every single one of these elements of their case against the homeowners. When foreclosure victims avoid these hearings, though, and judge themselves as guilty without requiring the lender to show proof, they make the foreclosure process much easier for the lenders. Hopefully, by being aware of the general aspects of a foreclosure (and any other breach of contract) case, the homeowners will be able to mount a more substantial defense and show these mortgage companies that they will not simply be pushed around, intimidated, and forced out of the home due to irrational fears and anxieties over the situation.
DISCLAIMER: None of the general information or advice offered in this article should be taken as legal advice, which can only be dispensed by a state-licensed attorney, who has completed an approved course of study at an accredited law school and has passed the mandated examination to become a state-approved attorney. Homeowners in foreclosure who desire representation should seek out a licensed attorney who is able to work in their state. This article is designed to provide general information only and act as a starting point to other independent research. Laws vary by state and court rules vary by county and specific court, which a licensed attorney can explain far better than any single article on the subject.
Guaranteed Cosmetic Surgery Financing Loans For Bad Credit
Cosmetic surgery is the most in thing today with almost all folks even the men going in for changing their looks. The reason is not very hard to fathom as in today’s world the main emphasis is always on the looks as opposed to the work and the ethics.
To ensure that you get a good cosmetic surgery done or the plastic surgery done you should go to a good doctor. That will happen only when you are ready to shell out big money. It is better to start saving for the cosmetic surgery for a few months before you venture out to search for a surgeon.
People who do not have enough money to save every month should not despair as most of the plastic surgery facilities suffer guaranteed cosmetic surgery financing for bad credit. The surgery facilities will have a tie with a finance company which will finance you irrespective of your credit score. Of course that is not to say that the rates will be the same. The rates will go up if you a very bad credit score. The fact of the matter is that you will still get the finance and can have the surgical procedure done on your body.
The challenge always lies in the fact that there is a lot of money that is required for the post operative care. That you will have to arrange by yourself as it just cannot be financed. You can use your credit card for the same .
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Ford Motor Company – Case Study
Background (General Facts)
Ford Motors is one of three leading automotive manufacturing companies in the United States. Based in Michigan in 1903 by Henry ford and grew to reach revenue of $150 billion and more than 370,000 employees by 1996 [1]. In the 1970′s, the automobile market for the major auto makers – General Motors (GM), Ford, and Chrysler- was crunched by competition from foreign manufactures such as Toyota and Honda. In 1999, Ford acquired the Swedish Volvo model in an attempt to compete in the foreign market and expand to other regions. Furthermore, Ford launched a full organization re-engineering business process plan called “Ford 2000″ aiming at reestablishing the company’s infrastructure. The process meant reduction in their Vehicle Centers (VCs) to only five covering the operations that spanned 200 countries. It also meant cutting redundancies and requiring Information Technology (IT) to be the driving force and the link between Ford centers worldwide.
In building Ford’s IT infrastructure, the company focused on implementing a setup that supported the TCP/IP communication protocol based on the U.S. department of Defense requirements. At those days, Ford internal network was meant to serve files transfer unlike most companies that used the network mainly for email communications. Throughout the 1990′s, Ford developed a cost effective Global Enterprise Network Integration (GENI) process to link all its locations compromising on the type of the connection and the cabling in favor of full coverage. During the same time, Ford started building its Web Farm, which was basically a set of hardware and software managed by a team for building Ford’s public website. The work started by publishing documents for technical references and moved to more advanced images from a live auto show. As a result, the website received 1 million visits a day in less than 2 years after its official launch. Throughout the end of the 90′s, Ford established its web services by increasing the amount of information published, building more intelligent and standard web application in 12 weeks period, purchasing more Netscape browsers for setup on its users’ machines, and creating a B2B server to allow the suppliers secured access to Ford’s Intranet.
In the path towards service cost reduction and bringing more business through the web, Ford worked closely with its competitors in the U.S. market GM and Chrysler to establish what came to be known as “Automotive Network Exchange” (ANX) certificate. The protocols aimed at providing a unified communications standard through the Internet to enable suppliers to provide common technology for all manufacturers. Moreover, Ford focused on making information on its web site more accessible and useful by deploying a team to manage the process of adding and updating information based on an analysis of how humans deal with information. One final aspect of Fords endeavor was to try to build a model through its infrastructure that benefited from the model implemented by Dell computers to improve their supply chain and delivery process. The direct model would not work well for automotives as it would with computers, as a result Ford worked on its retailing network remodeling and identifying what would eventually give it the extra edge in delivery time.
Enterprise Architecture Issues
Ford’s regional expansion to address the competition for market shares demanded cost management for the infrastructure upgrades
IT infrastructure places limitations on the type of application development based on the platforms
Easy access to information and prompt delivery of vital data to key individuals requires proper knowledge managementOrganizations reengineering and process remodeling is necessary when adapting new technologies to maintain the cost and increase efficiency
Supply chain errors and delays can severely affect the progress of the business and the market value of the corporation
Analysis
Infrastructure Upgrade
Since the inception of the Internet in the 1960′s, much effort has been made in standardizing how computers connect to it. In 1982, the International Organization for Standards (ISO) realized that during that period many ad hoc networking systems were already using the TCP/IP protocol for communications and thus adapted it as a standard in its model for the Internet network [2]. The main driver for IP convergence, at that period, was the growth in data traffic through wide area networks (WANs) established by local companies. Furthermore, in 1991, the Internet was open for commercial use, and that demanded a reduction in the total cost of operating the network to cope with 1 million Internet hosts that materialized in only 1-year time. Telecommunications companies like AT&T understood the potential and worked on standardizing the network offering voice services over IP networks that managed the separation between voice and data transmission [3].
At the same time, Ford had launched its plan to update its infrastructure, and seized the opportunity brought by the global movement of integrating the voice, fax transmission network with data transmission and expanded its WAN to include its offices in Europe and elsewhere. The financial benefits also came from the fact that Ford adapted the TCP/IP protocol from the beginning and made sure that all its technical infrastructure upgrades adhere to the standards. This made the transition of its system to the Internet as cost effective as it could be.
Web Technologies
Intranets employ the hypertext and multimedia technology used on the Internet. Prior to 1989, when Tim burners-Lee invented the Web [4], most applications used standard development languages such as C and C++ to create desktop applications that were proprietary and dependent on the platform. For example, applications running on a command-based operating system such as UNIX would not run under Windows, and those working for PCs might not work on Apple computers and vice versa [5]. The invention of HTML (Hyper-Text Markup Language) introduced a new model for applications that conform to the standards provided by a single program, the “Web Browser”. Unlike standard applications, the browser brought a unified interface that had a very fast learning curve. Users seem to require no additional training to work with web browsers. Furthermore, system administrators did not have to spend time installing upgrades on users’ machines, since the Intranet client/server architecture facilitated all the updates through the connection with the web server [6].
Since Ford established its Intranet, it was aiming at building web applications through the initial analysis of “Mosaic”, the early form of web browsers. The technical department at Ford used web languages to create the first web site in 1995. In 1996, the team started building applications making use of the unified “Netscape” browser that was deployed on all machines at the company, and working on a standard template to cut on the development life cycle. There was a substantial cut in training cost due to the user-friendly interface of web applications. Furthermore, the speed of development made vital applications available to different individuals across the company. For example, the B2B site allowed suppliers remote and secured access to various sections of Ford’s Intranet. In addition, the development team created an application as a virtual teardown on Ford’s website where Ford’s engineers could examine parts of competitors’ cars and evaluate any new technologies. The alternative would have been an actual trip to a physical location where Ford tears down cars to examine the parts.
Knowledge Management
While there are many definitions for knowledge, each company might adapt its own based on how it analysis data and information to acquire knowledge. The University of Kentucky, for example, defines knowledge as “a vital organization resource. It is the raw material, work-in process, and finished good of decision-making. Distinct types of knowledge used by decision makers include information, procedures, and heuristics, among others… ” [7].
Organizations go through different activities to manage the amount of information they collect to form the knowledge base of the company. Activities include creating databases of best practices and market intelligence analysis, gathering filtering and classifying data, incorporating knowledge into business applications used by employees, and developing focal points for facilitating knowledge flow and building skills [8].
Ford was excited about the traffic it was receiving on the Web site and everyone was publishing all the material they have on desk on the Intranet. Nevertheless, there was a growing concern about the usability and usefulness of the material people were adding. As a result, Ford created a “Knowledge Domain Team” to build complete information in nine areas that were identified as vital to the business. The process Ford took was based on surveys and specialists input in how people perceive information, and what is considered vital and what is distracting in the structure of Ford’s website. The aim behind the initiative was to reduce the time individuals spent in searching for information through proper indexing of the website content, and making sure that what was important could be accessed in due time, and what is trivial did not overwhelm the researcher with thousands of results.
Business Re-engineering
In the area of organization’s re-engineering process innovation is the set of activities that achieve substantial business improvements. Companies seeking to benefit from process innovation go through the regime of identifying the processes, the factors for change, developing the vision, understanding the current process, and building a prototype for the new organization. History shows that organizations who define their processes properly will not have problems managing the issues and developing the change factors [9]. When introducing technology, business redesign is necessary. The industrial fields have been using Information Technology to remodel processes, control production, and manage material for generations. However, it is only recently that companies recognized that the fusion of IT and business would go beyond automation to fundamentally reshaping how business processes are undertaken [10].
When foreign companies were allowed to compete in the U.S. market, Ford understood that to succeed in business in a competitive arena it needed to implement strategies that competitors find difficult to imitate [11]. As a result, Ford bought Sweden Volvo to enter the European market, and partially owned Mazda to have a competitive edge with Japanese cars1 [12]. To achieve that it re-engineered its production development activities and global corporate organization and processes for dramatic cost reduction. Furthermore, it understood that expansion requires collaboration and alignment, and thus planned to establish the IT infrastructure through a WAN that connected all the offices. In the process of innovation and re-engineering, Ford has set policies to manage the cost of establishing the network, built models for continuous implementation, and organized global meetings to align all parties with the process. Adding to that, when it came to managing the website, Ford facilitated an awareness campaign for all the branches to understand that Ford is using the web to collaborate and research and adapting information technology as a way to maximize its business value. The goal for Ford was to maintain its leadership in the market and to do that in the most efficient and cost effective method that is there.
Supply chain management
Supply chain management (SCM) is about coordinating between suppliers, manufactures, distributors, retailers, and customers [13]. The basic idea that SCM applications revolve around is providing information to all those who are involved in making decisions about the product or goods to manage delivery from the supplier to the consumer [14]. Studies show that reducing errors in supply chain distribution, increases revenue, enhances productivity, and reduces the order-to-fulfillment period [15].
Ford often compared its supply chain process to that of Dell’s, in an attempt to close the gaps in its own process and reach the level of success Dell has reached. The difference in the distribution model between Dell and Ford lies in the middle link of using retail shops. Since Ford cannot skip retail as a focal distribution point, it worked on establishing a network of retail shops that it owned. Ford made sure shops are not affecting each other in terms of sales, and gave them all a standard look and feel to establish itself in the consumer’s market as a prestigious cars sales retail company. Furthermore, extensive re-engineering initiatives were undertaken to enhance Ford external network by eliminating the correlation with smaller suppliers. In that way, Ford made sure that key suppliers have access to forecasting data from customers’ purchasing trends and production information to enable a faster order-to-delivery cycle. Ford vision was to create a model that allowed flexibility, predicable processes and delivered the product at the right time to the right consumer.
Conclusions
Ford is an example of how traditional organizations can mature to adapt what is current and maximizes the business value. The process that Ford went through necessitated the continuous support from management. In addition, it depended on alignment between those involved as a key for success. The correlation was not restricted to internal staff; it extended to cover competitors to reach mutual benefits, to work with suppliers to maintain similar grounds and adequate infrastructure, and to create training programs to educate all on the vision and organization’s objectives.
Ford technical progress came at a time where the Internet was yet to reach its full potential. The introduction of Fiber-optic cables in the late 90′s and the substantial increase in bandwidth would have helped Ford and cut on the cost in endured connecting its own offices. Furthermore, the ISP services that provided hosting servers were limited to only few players, which explained why Ford preferred to manage its own web server and maintain the overhead of the 24 hours uptime and backup.
From this case study, I understood the level of commitment large firms have to maintaining their position in the market. These companies know the revolving nature of business in the sense of how easy it is to fall back if they did not keep up with the change. The Ford process also shows the need for quick and resourceful thinking when faced with situations that might seem to be unfavorable. The way Ford ventured into the foreign market by acquiring local manufacturers was a strategic decision that did not only enabled Ford to merge with different technologies, but it also saved it the additional cost of establishing production centers in Japan and Europe.
Recommendations
Maintaining leadership in the market requires innovative organizations willing to reengineer to succeed.
IT fusion with the business means restructuring and remodeling to understand the role IT would play to meet the business objectives
Planning and modeling is vital when coordinating work with large teams.
Constructing websites is not about content; it is about understanding what adds value and how humans interact with information.
Knowledge management is a plan that companies need to develop as part of their initial business process modeling
It is not wrong for large firms to try to adapt to successful processes implemented by other firms.
References
Robert D. Austin and Mark Cotteleer,”Ford Motor Co.: Maximizing the Business Value of Web Technologies.” Harvard Business Publishing. July 10, 1997. harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml;jsessionid=WDARNHINBSYKSAKRGWCB5VQBKE0YOISW?id=198006 (accessed July 30, 2008).
Computer History Museum, Internet History 80′s. 2006. computerhistory.org/internet_history/internet_history_80s.shtml (accessed July 30, 2008).
Darren Wilksch and Peter Shoubridge, “IP Convergence in Global Telecommunications.” Defense Science & Technology Organization. March 2001. http://www.dsto.defence.gov.au/publications/2400/DSTO-TR-1046.pdf (accessed July 30, 2008).
Computer History Museum, Internet History 80′s.
H. Joseph Wen, “From client/server to intranet.” Information Management & Computer Security (MCB UP Ltd) 6, no. 1 (1998): 15-20.
R. Boutaba, K. El Guemioui, and P. Dini, “An outlook on intranet management.” Communications Magazine (IEEE), October 1997: 92-99.
Joseph M. Firestone, Enterprise Information Portals and Knowledge Management (OXFORD: Butterworth-Heinemann, 2002), 169.
David J. Skyrme, “Knowledge management solutions – the IT contribution.” ACM SIGGROUP Bulletin (ACM) 19, no. 1 (April 1998): 34 – 39, 34.
Thomas H. Davenport, Process Innovation: Reengineering Work Through Information Technology (Watertown,MA: Harvard Business Press, 1993), 28.
Thomas H. Davenport “The New Industrial Engineering: Information Technology and Business Process Redesign.” Sloan Management Review 31, no. 4 (Summer 1990): 11-28, 12
Gary M. Erickson, Robert Jacobson, and Johny K. Johansson, “Competition for market share in the presence of strategic invisible assets: The US automobile market, 1971-1981.” International Journal of Research in Marketing (Elsevier Science) 9, no. 1 (March 1992): 23-37, 23.
Austin and Cotteleer, “Ford Motor ” , 2.
Henk A. Akkermans, et al. “The impact of ERP on supply chain management: Exploratory findings from a European Delphi study.” European Journal of Operational Research 146 (2003): 284-301, 286
Thomas H. Davenport and Jeffrey D. Brooks, “Enterprise systems and the supply chain.” Journal of Enterprise Information Management 17, no. 1 (2004): 8-19, 9.
Kevin B. Hendricks, Vinod R. Singhal, and Jeff K. Stratman. “The impact of enterprise systems on corporate performance:A study of ERP, SCM, and CRM system implementations.” Journal of Operations Management 25, no. 1 (January 2007): 65-82.
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The Day a "Tidal Wave" Hit Chicago
“Giant tidal wave hits local town lake.” April Fool’s joke? Probably. “Giant Tidal Wave Hits Chicago.” Joke, right? No. This was the headline of the afternoon edition of the Chicago Daily News on June 26, 1954.
I left the house in my beat-up Chevy at around 9:00 a.m. on a warm Saturday morning in June 1954 and drove uptown to Lake Michigan’s Montrose Beach and harbor to meet my father and some friends at the Wilson Rocks Bait Shop where he hung out with his fellow fishermen. We were going to do some Perch fishing……which is a chewy white meat fish that is a taste of Heaven when deep fried and served with, lemon, tartar sauce and accordion fries. Getting ready for my final year in high school, I had been working a hard construction job and was in need of some sun and relaxation. Perch were the answer this Saturday morning, but I would soon find something quite different……something that I would never forget.
As I pulled into the parking area, I noticed it was full of water despite it being a bright sunny day. The Lake was unusually choppy. I also noticed people running toward the pier. There was a sense of something very serious and very bad going on and immediately and instinctively I headed for the bait shop to connect with my father. He saw me coming and said “let’s go to the pier, they need help down there,” and we took off at full speed along with many others. A Seiche (pronounced saysh) had struck Montrose Harbor without warning on this June morning. It was 8 feet high and 25 miles wide and hit Chicago’s entire lakefront……from Michigan City, Indiana to the North Shore. Eight people were killed, most of whom were fishing right there in Montrose Harbor where about 15 or 20 fishermen were swept off the narrow, 175-foot concrete pier. And we knew many of them.
When we arrived, bathers and fishermen were running for cover. Men, women and children scurried and fell. Yachts bobbed widely in the water. The wave at some points had rushed 150 feet inshore before subsiding in a few minutes which explained why I saw so much water as I pulled into the parking lot. There were rescues, panic, despair, and narrow escapes. Unfortunately, we were too late to be of any real help and then stood by helplessly as the the rescue teams began the grim job of pulling each body from the lake. Apparently, fishermen who had been lying on their stomachs, idly guiding lines in the water, were simply swept off the pier as the water swelled up and washed over them. Fishermen on the North Avenue pier, several miles to the South, were also swept into the lake, and the same grim work was being done there. Among those hurled into the water was Ted Stempinski, who had been fishing with his son Ralph, 16. Ralph left the scene for a moment shortly before the wave struck. When he returned his father was gone. The same thing happened with John Jaworski who also was fishing with his son. Those tragic facts hardly went unnoticed and stayed with me for a long time after.
News of the oncoming wave was spread quickly by park police who cleared fishermen from a pier at 61th St. In Jackson Park minutes before the water submerged that area. At Loyola Beach just North the waves broke over a 9-foot seawall. All the docks at the Belmont Harbor yacht basin were flooded when the wave raised the water level there about 6 feet.
Prior to June 26, nobody had ever heard of the word “Seiche.” After June 26, most of us were experts on the phenomena.
Specifically, “A Seiche has to occur in an enclosed body of water such as a lake, bay or gulf. A Seiche, a French word meaning “to sway back and forth”, is a standing wave that oscillates in a lake as a result of seismic or atmospheric disturbances creating huge fluctuations of water levels in just moments. The standing waves slosh back and forth between shores of the lake basin, often referred as tide-like changes of the Great Lakes, by many. Most seiches on the Great Lakes are results of atmospheric disturbances and a cease in wind, not seismic activity or huge tidal forces” ( Heidorn 2004; Wittman 2005).
This particular Seiche, which was the most dangerous of the three kinds, was fueled by a severe squall line with high winds and rapid changes in atmospheric pressure that pushed down on the lake’s surface and crossed southern Lake Michigan a few hours earlier, passing from northwest to southeast. It’s as if you dropped a stone in the middle of a bucket of water and watched the ripples move from the center. The atmospheric pressure caused be the squall was the stone and the ripples were the Seiche. Like water sloshing back and forth in a bath tub, fast-moving squall lines with intense atmospheric pressure caused the lake to slosh back and forth and water levels to rise on the shoreline and harbors by up to 10 feet in a matter of minutes and with no warning.
Unlike a tsunami, which can travel across the open ocean at extremely high speeds, a Seiche moves much more slowly. It took 80 minutes for the Seiche to travel 40 miles from Michigan City to the Chicago lakeshore at North Avenue. That’s about 30 mph. The Seiche Struck the entire Illinois coast with a wave about 2 to 4 feet high, but it reached a maximum height of 10 feet as it approached the North Avenue pier.
As an eye witness to the immediate aftermath, I was taken aback by the way in which the Chicago papers over-dramatized the tragedy. The Chicago Daily News, now defunct, ran headlines that read in two inch black lettering: “BIG TIDAL WAVE HERE! Many Swept Into Lake; Fear 10 Killed. Mother of 11 Among Victims. 3 Divers, Boats Hunt Others. Three persons were drowned and several more were feared lost Saturday when a 25-mile-wide tidal wave smashed the Lake Michigan shore here. The freak wave, estimated from 3 to 10 feet high, struck at about 9 a.m. From Jackson Park north to Wilmette. An undetermined number of persons were swept into the lake. Estimates of the death toll ran as high as 10…….” There had been no “big tidal wave;” there had been a freak and deadly Seiche. Since then, there have been numerous scares and reports of smaller seiches, but none that caused similar damage or deaths.
Interestingly, however,one of the greatest disasters in the city of Buffalo, NY’s recorded history occurred at 11 p.m. October 18, 1844 when a wall of water quickly inundated the commercial and residential districts along the waterfront. The disaster occurred without warning, breaching the 14-foot seawall and flooding the waterfront. Newspaper accounts indicate that 78 people drowned. This tragedy was also caused by a Seiche, as prolonged strong winds produced a Seiche by pushing the water toward one end of Lake Erie. When the winds stopped, or shifted to the opposite direction, the water moved back in the direction from which it came and the Seichedid the rest. It is estimated that Buffalo has two or three seiches a year, but the threat has been largely eliminated by building a breakwater in Lake Erie, a project that started in the 1860s.
Unlike devastating Tsunamis caused by underwater earthquakes, seiches have never caused much damage in the Great Lakes, and most go unnoticed since they are relatively subtle and imperceptible, causing water levels on beaches to rise just a foot or less.
But this one was very perceptible and occurred on a calm and warm Saturday morning in Chicago. What started as a day of peaceful fishing turned out to be an experience that has remained indelibly in my mind and, I believe, worthy of a sharing. One thing is for certain, we will never experience a Seiche here……….at least I don’t think so.
“It didn’t come in like a wall…..the water just started to rise and kept going until it was maybe 6 feet higher than usual.” Dick Keating, Belmont Harbor Foreman and eyewitness.
Sales Letter Example That Sells
Sales Letter Example That Sells, No Matter The Industry
A sales letter is the page designed to sell your product. You can have a fantastic product, but you won’t earn a nickel if your sales letter lacks sizzle.
Your sales letter should grab a visitor’s attention, prove you provide a solution, remove risk, state a call to action, and hopefully (if done well) generate a sale.
Here is an example of how we write a sales letter…
All great sales letters include the following:
1. Catchy Headers and Subheaders
2. Unique Selling Proposition
3. Stated Product Benefits
4. Testimonials
5. Special Offers
6. Digital Covers
7. Video Demos
8. Exceptional Guarantees
9. Trust Building Techniques
10. Bonuses
11. Follow-Ups
12. P.S.
Catchy Headers and Subheaders
Your main header, also referred to as a H1 tag, can:
o Target a pain point. “Are You Losing Your Hair?”
o Highlight a benefit. “Now You Can Re-grow Your Hair… Without Chemicals!”
o Invoke curiosity. “Can Broccoli Prevent Hair Loss?”
o Include keywords.
Your subheaders will follow the same format as your header. These two work best when they attack the reader from two different angles. Your headline could invoke curiosity, while the sub-headline makes a bold claim like this “Now You Can Re-grow Your Hair… Without Chemicals!”
Example Headlines for a Sales Letter
o Who Else Wants _______?
o The Secret of _________
o Here’s How You Can (benefit) Without (problem)…
o Little Known Ways to _____________
o Get Rid of ________________ Once And For All!
o WARNING: This Letter Is For Serious __________ Only.
o Are You Still Suffering From _________?
o Are You Making These Same Mistakes?
o At Last! The (credibility indicator like “Bestselling” or “As seen on Oprah”) System That Is Revolutionizing ___________
o Save Yourself 30% on _________ By Following This Simple Steps
o How I Went From (loser) to (winner) in Just 2 Weeks!
o How To (Cook Thai Food) Like The (Locals)
o 56 Ways ____________Saves You Time, Work and Money
Highlight Your Unique Selling Proposition
This is where you subtly demonstrate to your reader that your competition sucks. To do this, examine your competitor’s sales letters, noting the benefits they offer- and more importantly, those they lack. Even if the two of you are selling the same product, you can position your offer in very different ways. Are they offering a money back guarantee? Do they fail to cover a specific topic that your explain in detail? Discover your competitor’s weaknesses and demonstrate them to your prospects… Chances are, your prospects will shop around before committing, and it pays to plant the seeds of doubt in their minds about your competitors. Remember that subtlety is the key; you don’t want to smear yourself as well!
Focus on Benefits, Not Features
Don’t rattle off the features of your product; explain to your prospect how they will benefit from it. For example, if you’re selling air conditioners, people aren’t interested in the features (e.g. voltage, wattage, what type of plastic it’s made of, etc.) they want to keep cool during summer!
To ensure you’re listing benefits instead of features, ask yourself “How does this feature help my prospect?” List your features, then add the word “which” after it: whatever follows is a benefit. For example:
o Low power requirements, which lowers your energy bill.
o New polymer plastic casing, which cools your house faster than traditional models.
o Timer setting, which saves you the hassle of getting up in the middle of the night to turn it off.
I’ve heard this phrase so many times I practically recite it in my sleep, and yet, so many people forget this simple law of copywriting. Bullet points tend to work best in sales letters, as they are easily scanned by readers. Keep in mind that your prospects aren’t interested in every single benefit your product offers, just the ones that apply to them. By listing off dozens of benefits, you are increasing the likelihood your prospects will come across one or two main benefits they are most interested in, and buy your product.
Include Testimonials
My wife and I were on Ko Phi Phi Island in Thailand (where the movie “The Beach” was filmed) getting ready to grab a bite. While looking at a map, a couple of guys came up to us and recommended a restaurant saying, “This is the best restaurant we’ve been to on the island. You should check it out.”
Guess where we went for dinner?
We didn’t personally know these guys, yet we trusted them. This demonstrates what is known as social proof – people making decisions based on someone else’s experience. If you’re interested in something and you see that it has worked for others, you are more likely to trust them and-case in point- buy it. Testimonials are a great way to demonstrate social proof to your prospects; they can see for themselves that your product works and provides value to real people without you forcing it down there throats. Rather than singing your own praises, why not let your satisfied customers do it for you?
Here’s two ways to gather testimonials:
1. When you’re first testing your product (that is, the product you haven’t created yet) ask people you know personally if they can provide testimonials citing your expertise in a specific area applicable to your product.
2. Once you create and sell your product, follow up with the customer via email and ask for a testimonial. Here’s what I use:
Dear ,
Thanks for taking our free course on . Many others have written to tell us how this course has helped , and I sincerely hope you feel the same way.
I’d like to ask a favor. We’re always trying to improve our course, and would greatly appreciate your feedback. If it’s OK with you, please take a moment and jot down your thoughts in the box below. I promise not to include any personal information other than your name and city.
Feel free to say whatever you feel. If you have some ideas on how to improve our course, we’re all ears.
Thanks , and I hope to hear from you soon.
Best regards,
Testimonial Box
I understand that has the right to use these comments in their marketing material. I also understand will NOT use any personal information with the exception of my name and city.
Comments:
Make sure to include a personal email address you check frequently in order to stay on top of testimonials as they come in.
Some people recommend offering an incentive in exchange for a testimonial such as a free report, though I’ve never had any trouble securing them with this form. Besides, if your free course isn’t good enough to warrant praise, you probably need to reconsider your product offer.
As the testimonials start to roll in, put them on your sales page as examples your product works!
People Don’t Buy Products… They Buy Offers
You may have the single greatest product in the history of humanity, guaranteed to cure a wide variety of ailments, train your dog to stop barking and initiate world peace, but without compiling it into a dynamite offer your product will fall flatter than a soufflé in a snowstorm.
Think of it this way: when you go to a fine dining restaurant, you’re not just paying for the flavor of the food; you’re also paying for the presentation. Your offer is the presentation; if your prospects don’t like the presentation they won’t even try your product. This is why creating a solid offer is imperative for your system’s success.
So what makes a good offer? Here are the key components you of a dynamite offer:
Have Quality Digital Cover
If you’re creating an information product that includes several downloadable CDs, create a professional looking digital CD cover for each disc. If you have an e-book or special report, create covers for those as well. Be sure to include screenshots of the content as well, which should be professionally formatted.
Include Video Demos
Videos are a great tool for marketing your product and should be used where possible- I’ve used video demos for several products with great success. The process is simple: use Camtasia to record you demonstrating your product while explaining its benefits, then upload the video to YouTube and embed the code they give you onto your website. We’ll talk about video marketing more in a bit.
Offer an Exceptional Guarantee
The main function of a guarantee is to remove all risk for your prospect. You want to make a guarantee so strong they’d feel like a fool for not buying your product. For example, you could offer a 60 day money back guarantee, and allow them to keep all the bonuses even if they decide to cancel. Another method is to allow your prospect to download your product for one dollar, and then charge their credit card the remainder seven days later if they don’t cancel.
Build Trust
When I receive emails from people asking me “Is this for real?” I know it’s time to build a higher level of trust with our prospects. Be sure to include links to your privacy policy, contact information and a brief bio about yourself.
Privacy Policy
Your privacy policy should go something like this:
: Privacy Policy
is committed to protecting the privacy and security of individuals that have contacted us. It is with that purpose in mind that we have formed our privacy guarantee. We realize that the concerns you bring to us are highly personal in nature. We assure you that all information shared will be managed within legal and ethical considerations.
Security of Information
We restrict access to personal information to employees who have a specific business purpose in utilizing your data. Our employees are trained in the importance of maintaining confidentiality and member privacy.
Accuracy of Information
We strive to ensure that our records contain accurate information. If there are any changes to your contact information (e.g. phone number, email, etc.), please email . We will promptly make any necessary changes to update your records.
Changes to Our Guarantee
We reserve the right to revise our privacy guarantee as our business needs change or as the law requires. If we revise our policy, we will provide you with the new policy at that time.
Web Links to Other Web Sites
Links to third party sites may be available from ‘http://www.yourwebsite.com’. Sites outside the ‘http://www.yourwebsite.com’ domain are NOT maintained by and is NOT responsible for the content or availability of linked sites. Recommended links are NOT an endorsement or guarantee of other sites or organizations and are simply provided for reference. The privacy and security policies of linked sites likely differ from and users are encouraged to review the privacy and security policies of these sites.
Contact Information
Buy a P.O. Box at your local post office and use that as your mailing address. Forty bucks a year provides peace of mind; you don’t want your home address advertised to hundreds of thousands of people, right?
It’s always better to include a phone number as well. You can leave your personal number, or get a redirect line through Skype or Vonage. If you receive lot of calls, consider signing up with a call center that will take messages and accept payments (there’s a list of them at the end of this book).
Bio
Including a bio is a great opportunity for you to sell yourself and build trust amongst readers, many of whom want to know a little about a person before doing business with them. Bios typically include the following elements:
o Educational Background
o Professional Background
o Experience with Current Business/Product
o Special Achievements
o Personal Information (e.g. city of residence and family information)
o Picture
All of these are completely optional and depend on your comfort level with sharing information online. internet. There is a fine line between highlighting your knowledge, skills, and achievements and coming off as a blowhard. Remember: the point is to build trust, hopefully to the point of getting a sale.
Offer Bonuses
Once you’ve demonstrated your product provides value and removed risk with a strong guarantee, push your prospects off the fence with a few value packed bonuses. The bonus is all about perceived value; many people in fact buy products for the bonuses themselves! If you’re offering an e-book on Cajun cooking, offer a video that demonstrates how to make roux, and several other Cajun sauces. How about recipes for cocktails that are famous in the South? A list of the best restaurants in New Orleans? All of these are easy to create and dramatically improve the value of your product.
Follow-Up
Let’s say your prospects sign up for a free two week course on southern cooking. They are then presented with an offer to buy the full product. If they haven’t purchased it, they receive another e-mail, but with a twist: this could be a reduced price, an added bonus, or the chance to pay in installments.
State a P.S.
Believe it or not, many people will scroll to the bottom of a sales page first. I do it all the time… once I know I’m on a sales page, the first question that comes to mind is “How much?”
This is precisely why you shouldn’t list your price at the bottom of your sales letter. Instead, use a P.S., or just another headline that reinforces your value proposition. Rather than asking “How much?” they’ll scroll up to learn more about your offer.
This sales letter example should help you craft a profitable sales letter in as little as a week. Write a draft and sit on it for a few days so you can see it with fresh eyes.
100 Creative Presentation Ideas
Creative Presentation Ideas – It’s Showtime!
Listed below are just 3 of the 100 creative presentation ideas you can use to make your presentation unforgettable. You may use these creative presentation ideas when speaking to potential investors, at management forums, conference lectures or with your colleagues, employees, or any other presentation you have to make.
Each creative idea is described in the following format:
Basic description of the creative presentation idea
What for? major benefits of the idea, or how it may be used
Variations on the creative idea: how you can adapt the idea to different settings, goals and audiences
Comments: things you should pay attention to when using the creative idea
Well, here comes the first creative presentation idea:
Creative Presentation Idea #1:
Description: Do not use titles in your slides
What for?
Tell the viewers that you left out the presentation titles intentionally in order to see if you could deliver your main points clearly
When using the presentation as a learning aid in a workshop, if your audience is required to complete the titles, they will have to think about what you are teaching and actively participate in the discussion
Variations:
Leave the titles out for only some of the slides – perhaps the ones that will be used for a review of the presentation so far, or to trigger a discussion on a controversial issue
Write only half of the title, and ask your audience to complete it
Comments:
You can use a printed “complete” version of the presentation for yourself, so you can see the titles you meant to use
The creative ideas I suggest are of different kinds and levels. Some are crazier than others. You should choose the one that best suits your presentation needs. Do you want to make a really bold statement? Here is a more outrageous idea:
Creative Presentation Idea #75:
Description: Present the presentation blindfolded!
What for?
You could definitely demonstrate your knowledge of the subject and a good memory skill as well as self-confidence by using this idea
Use it to add some humor to your presentation: after you put the blindfold on, intentionally make some funny mistakes when referring to the slides, and only then show them that you know what you’re talking about…
Variations:
Put the blindfold on for just a short part of the presentation, when you want to make a dramatic effect
Provide blindfolds for the participants, so their sense of hearing will be heightened and you could test their memory after a few slides!
Comments:
Take care not to offend people with disabilities (e.g. blind people, etc.). Use this technique when you are certain you can do so tactfully and with good taste
As you might have noticed by now, these creative presentation ideas do not rely on an incredible knowledge of Power Point, or on unreasonable production expenses. Actually, in some of the ideas you don’t even have to use Power Point at all!. Here’s one:
Creative Presentation Idea #31:
Description: Have a painter/caricaturist assistant -
drawing images/cartoons on a flip chart as you explain
What for?
This would make your presentation “live” on the go. Instead of using slides, the sketches would visually convey the major points you are trying to get through. For example – when you talk about the tough task lying ahead, a simple drawing of mountaineers climbing up a steep mountain would etch that image in the viewers mind.
A caricaturist could add a touch of humor to your presentation with funny images and hints
Variations:
If you have the talent – you could draw the sketches yourself as you speak.
If there’s an electronic drawing pad – you could use it and show the drawings on a screen as they are drawn.
Alternatively – ask some of the participants themselves to help you and draw those images on the flip chart as you speak.
You could prepare and give the participants a comic book with the important things you talked about.
Comments:
Make sure there are enough flip chart pages you could use, and that everyone can see them well.
Rehearse the presentation with the painter and the list the major subjects you are going to talk about so that s/he would have time to think about how to make meaningful and relevant drawings.
Here are a few pointers on where to find the person to draw for you: look for high school or college art students who wish to practice and demonstrate their talent for a small fee or free of charge; ask around for other employees that have that talent and are willing to give a hand. Of course, if the presentation is worth the investment, you may always hire a professional caricaturist.