Is Charlie Sheen Broke!

Charlie Sheen problems have been well documented in the media and everywhere else but the the former Two and half men star is anything but broke. Forbes report shows Sheen brought home about $40 million over the past year, so it’s obvious that Sheen isn’t selling because he can’t afford the mortgage payment.

How To Make A Profit in Real Estate.

Charlie Sheen bought the home in 1997 for $2.5 million, If he pulls off this house sale, the man is set for a tidy profit.

As Sheen shows, the secret to making money in real estate is buy low and sell high!

Charlie Sheen House On Sale For $7.2M is a post from: Daily Investment Tips

A detailed prospectus for the public offering reveals that the UK-based Williams motor racing team is to be valued at about €265m, with individual shares costing between €24 and €29.

Williams F1 Team Profit

If you were skeptical about a F1 team making money, this will surprise you: The team produced a pre-tax profit of £8.9m in 2009 and £9.2m in 2008.

Williams Listing Away From London

Williams formual one team opted to float in Germany to avoid regulations in London that would have required the disclosure of details of the team’s television fees, prize money and commercial arrangements with Bernie Ecclestone’s Formula One empire.

Williams F1 IPO Price is a post from: Daily Investment Tips

Groupon IPO Date.

The New York times reported Groupon may go public as early as this spring. (end of 2011). Making the young internet company one of the Tech IPOs of 2011.

Groupon IPO Price

The article further claim, bankers value the three-year-old online coupon distribution site at  $15 billion. This figure is no too ambitious if you keep in mind Groupon, was profitable after just eight months of operations.

The major risk about Groupon is that many people believe their business model of making money can easily be copied. Group is minimising this by going for scale, it has bought copy cats all around the world.

Groupon IPO Price & Date is a post from: Daily Investment Tips

How has Stephen Schwarzman made so much money? DEBT!

Stephen Schwarzman strategy of making money is to is to use other peoples money to buy companies.

The following is a standard, textbook example that Stephen Schwarzman has designed to perfection:-

Suppose a company makes an annual profit of 10 million USD and is acquired by a private equity firm for 100 million USD, that is, at a price earnings ratio of 10, meaning that the private equity firm is willing to pay 10 times the company’s annual profit. To acquire the company the private equity firm invests 30 million USD of its own capital borrowing the remaining 70 million USD.

Now suppose that three years later the company still makes a profit of 10 million USD per year. The private equity firm has used the profits to repay 30 million USD of the loan (I’m abstracting from taxes here) and decides to sell the company for the same price as it has bought it, that is, 100 million USD. This may seem like a bad deal, but take a closer look at what happens. The private equity firm uses 40 million USD to repay the remainder of the loan and is left with 60 million USD. Thus, in three years the firm has doubled its initial investment of 30 million USD!

If the private equity firm manages to reduce costs and increase the company’s annual profits to 16 million USD, to keep things simple, and sells it again with a price earnings ratio of 10, that is, for 160 million USD, the profit for the private equity firm is 90 million USD (after repaying the 70 million USD loan), three times the initial investment. If, because of the increase in profits, it can convince buyers of a higher price earnings ratio, it will earn even more.

So, in this simplified example, regardless of whether the company being acquired is “turned around”, the private equity firm makes a substantial profit on its investment. The reason? Its ability to finance part of acquisition with debt.

Source Courtesy of Ivar Hagendoorn private equity

Stephen Schwarzman Blackstone Investment Strategy is a post from: Daily Investment Tips

Rooftop farming is urban agriculture

Rooftop farms are cropping up on top of storied building in New York and across America. The farm owners are not just hobbiest, they are serious farmers trying to make a buck.

A good example is a group farm in New York called Brooklyn Grange. They were profiled in New York times. The group grow peppers, tomatoes and green vegetables. The vegetables are sold to local restaurants.

Making money in a rooftop farm

According to the team leader of the group, for such a venture to turn a profit you need a large space.

I noticed the members of Brooklyn Grange have to work as volunteers to cut cost. At the moment rooftop farming is still in its infancy, trying to find a business model that is profitable. The members of the partnership draw much satisfaction from doing something noble.

If you are interested in rooftop farming you may consider joining a  farm group partnership around your city. You may also start one but first make sure to know whether its legal in the first place. You don’t want to be breaking the law.

Green investing : A Rooftop Farm / Garden is a post from: Daily Investment Tips

The latest news from Greece is, Greek regulators have announced a ban on short-selling on Greece stock market, following steep falls in bank shares.

The reason why the banks are targeted is because they are the biggest buyers on greece debt. If Greece defaults, the banks will be hit with huge losses.

Since Greece has banned any short selling on Greece stockmarket, investors should look at international banks that might be carrying Greece debt.

Short Selling Greece Bank Shares is a post from: Daily Investment Tips

History of Making Money In a Financial Crisis

Back in the early 1990? George Soros pounced on British financial crisis, shorting the British pound and walking away with a cool US$ 1 Billion in the process. In the late 90′s he rode the Asian crisis all the way to the bank. The then malaysian Prime Minister referred Soros as “A Criminal”

When the US housing market crashed back in 2007 many sub prime moergage borrowers were crying but one hedge fund manager was having a laugh. John Paulson a hedge fund manager in New York had bet against the sub prime market and made billions.

The two above investors made money by shorting the market. Talk to your financial advisor and see how you to can profit from fianancial crisis.

Making Money During Financial Crisis is a post from: Daily Investment Tips

Look at this 2009 Price trends of this metals

2009 Gold Price Trend – up 34%

2009 Silver price trend – up 63%

2009 Platinum price trend – up 56%

2009 Palladium price trend – up an impressive 98%

If your mind was focused on the falling prices of real estate & non-starter stock market recoveries, you might have missed this commodities bull.

Should investors jump in? No! I don’t think just because this metal commodities have done well in the past they will continue doing well.

Strategy for making money in Metal commodities.

Whatever goes up, eventually comes down, one strategy is to focus on shorting the metals or sell the futures contract.

Strategy two, only for the seasoned pro, if you know how to play the speculation game keep buying the futures contract.

2009 Price Trend of Gold : Silver : Platinum is a post from: Daily Investment Tips