Easy Commercial "Cash Out" Refinance!

Commercial & Multi-Family Property Owners

Due for a Refinance?


Looking to Lock in a New Lower Rate?


Let me introduce you to our ERS Nationwide....

EASY COMMERCIAL "CASH OUT" REFINANCE!

Low Fees!

Low Rates!

Great Terms!

Up to 75% LTV!

Get out of short-term Private debt

Get into a lower rate, fixed for 5, 7, or 10 years.... amortized over 25!

Allow me to be your trusted Commercial Finance Advisor!

Contact me today;

Dameon.Russell@ersfunding.com

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Hiring Agents - Elk Grove & the Greater Sacramento area: 100% Commission Solution Available!

INVESTORS; Have You Heard the Phrase - "Buying Cash-flow"?

INVESTORS; Have you heard the phrase... "Buying Cash Flow"? I'm here to tell you that not all debt is bad debt.  I can show you a path utilizing "good debt" that leads to superior ROI.

Be smart about investing, forget about the "T.V. gurus" and benefit from real investment strategy.  Acquire cash flow free of ANY debt service!  With diligent analysis and target selection, your debt services itself, you reap the cash flow, the equity gain, tax benefit, etc. I can provide you the Commercial Finance solution to "cookie-cutter" this formula for repeated execution and maximized return!

My staff provides the expert investment target analysis for you! Our Elite team at ERS can facilitate your Real Estate & Commercial Finance objectives in a full NO CHARGE Investor Concierge Service available exclusively to our Clients.

BUSINESS OWNERS - Is your premises Lease your largest monthly expense item?  If you have staff, then perhaps your Lease is running a close 2nd to payroll?  If I told you I could not only eliminate your Lease payment, but also totally eliminate ALL expense related to your business location or occupancy... you would be interested, yes?

Well, I share this model with Business Owners like you every day! How much money would that save your Business monthly..... $3k, $5k, $15k perhaps?

What would you do with that newly freed up capital? Leverage more personnel, perhaps expand your marketing efforts.... increase market share, possibly double your production?

Contact me todayDameon.Russell@ersfunding.com
Your trusted Commercial Finance Advisor.

Investors; What Makes You Think CASH is so Cool?

                 

        Depending upon what dictionary you consult you will get five to seven definitions of the word leverage.  Each of the dictionaries agrees there are two primary definitions.

1). the mechanical advantage gained by being in a position to use a lever.

2). Investing with borrowed money as a way to amplify potential gains.

You should take just a moment to reread both of the definitions because when we talk about Financial Literacy, and the use of leverage in the Game both definitions apply.  Clearly the second definition is directly related to matters of finance, but I offer that the first definition is as well, particularly when we talk about leverage as the most successful strategy in the Game.  Leverage provides an advantage, it is the principle of acquiring more with less.  A high net worth Investor with moderate liquidity could purchase ten, $100k single-family homes in cash; a $1M investment and nice addition perhaps to their portfolio. Applying leverage the same Investor, with the same capital investment $1M could acquire one hundred, $100k homes, assuming a 10:1 leveraging scenario.  It is the advantage of leverage, the ability to acquire more by applying the principle of leverage. No different than how a system of pulleys and levers allow a man of average strength to lift or manage a superior weight load, leveraged finance can afford an Investor of average means the ability to acquire more substantial assets.  An Investor of average means could for example apply a leveraged finance scenario to acquire those initial ten, $100k single-family homes with a capital investment of merely $100k, presuming the same 90 percent loan/value finance solution.  In finance, the smart Players apply leverage to maximize their investing capability and their liquidity.

Understand that leverage is an investment strategy which can be used across the board for stocks, bonds, commodities, currencies and multiple other investments.  True Players are employing leverage strategies in many facets of their wealth portfolio. Professional Traders, and even Bond Market Investors can employ such strategies; for example, a Bond Investor can capitalize on the differential between short-term interest rates and long-term rates by borrowing at one, and investing at the other.  There’s profit to be realized in the offset.  In the Game, some of the more advanced leveraging strategies can be quite risky for the uninitiated as you must remember, losses are also magnified.

No matter the use, leverage generally involves the use of funds not your own.  Generally speaking, the use of others’ money has a cost, the cost of funds, or interest as we call it most commonly.  Cost of funds is one of the factors in leveraging you must be cognizant of in order to mitigate the overall risk.  If you are going to use leverage be certain to consider the cost of funds in your risk exposure analysis, not doing so can be detrimental.  Earlier I gave an example of the most basic leverage application which is the use of leverage to acquire real estate.  In my example an Investor with $1M in cash used leverage in just a 10:1 ratio to acquire one hundred, $100k houses.  If our Investor liquidated shortly thereafter and sold each house for $110k he would have garnered a $1M profit, a 100% return on the original capital investment.  In the same example, on the other side of the coin our Investor did not employ leverage and instead paid cash for ten of the $100k houses.  If he were to liquidate his 10 houses in the non-leveraged scenario at $110k/house, the profit would be merely $100k or a 10 percent return on the original capital investment of $1M.  As any Investor will concur, a 10 percent return is good, but a 100 percent return is stellar.  This is an example of how leverage can maximize the use of resources for greater capability and return.

It’s important to comprehend debt, understand that not all debt is

bad, some debt is good. So how do you know the difference? Good debt is debt that is paying you a return, or debt finance perhaps taken on to acquire an asset which is providing you cash flow.  An Investor who purchases a $500k income producing asset using an 80 percent loan-to-value debt finance scenario takes on $400k debt.  Let us stipulate that the monthly PITI, or Principle, Interest, Tax, and Insurance payment is $2,400 and the gross income from rents is $3,400 per month. If we additionally factor 5 percent annual appreciation and 3 percent annual rent increase, this becomes a really good looking investment. In this scenario, there is a net cash flow of $12k annually so you can attribute a cash-on-cash return on the original $100k capital investment of 12 percent.  Of course these are rough calculations, and I have not included property operating expense, nor a vacancy allowance, but you can see that the decision to take on the debt is paying dividends. This is good debt.

Had leverage not been used in this scenario the cash-on-cash return would have been a mere 2.4 percent, but the equity would be substantial and the property would be debt free.  However, an Investor with $500k in cash could apply a leverage strategy and could have acquired multiple properties in this scenario. In the realm of finance leverage comes in many different forms and can be configured, and applied in many different strategies.  It is the most basic and most important component of the Game. Your Financial Literacy must include an in depth comprehension of leverage, particularly as it relates to debt finance.  Your Financial Literacy must also include a comprehensive grasp of the mathematics of investing.  Understanding the math of investing and finance will increase your ability to make sound investment decisions and will mitigate your risk when acquiring debt.

As your Advisor, I can certainly help you to employ a debt financed acquisition and portfolio strategy to achieve your Investment objectives. Let's talk about it: dameon.russell@ersfunding.com.

Sacramento / Elk Grove & Area Agents!! Real Estate, Mortgage, Insurance, & Commercial Finance!!

Agents; if you want to continue your career with iron restrictions & defining limitations, that’s your business. 

However, if you wish to elevate your Real Estate & Finance sales career without restriction & with limitless potential, well… that’s our business! 

Check out this brief overview detailing the powerfully limitless opportunity that is…. ERS!
Watch Now.

Contact ERS Elk Grove Branch Owner, Dameon V. Russell if you’re truly open to considering a Broker change for 2015.

Guys, if nothing changes…. nothing will change.

Email: Dameon.Russell@ersfunding.com

Top Reasons Small Business Ventures Fail

I absolutely love Small Business and the entrepreneurial spirit! I myself am a product of it, a career Entrepreneur. Naturally, I have been traditionally employed before, but even then it was always to serve my entrepreneurial endeavors; either by adding comprehensive experience, or by simply providing a paycheck. The best employment positions were those that afforded me both!

Small Business ventures fail at an alarming rate, but they don't have to. There are just a very few consistent reasons for the failure rate and I'm stating them in brief below, in no particular order.

Lack of Access to Capital
Most likely the most consistent contributor to the death of Business venture. Entrepreneurs and even existing Business Owners largely lack the access to the capital they need to launch, expand, upgrade, or sustain their Business. Every Business needs capital but the Business Owner's realization in this regard must be more comprehensive than that simple statement. You must understand the type of capital your Business needs, not just in general, but in any given moment/circumstance.

Understanding the measure, and type of capital your Business requires in the moment will have a positive impact on your ability to access said capital. So, lack of access in my opinion begins with a lack of understanding; improve your understanding, and increase your access.

The E-Myth
I am an Author, but I am an avid reader. I easily read 10 times more than I write! One of my favorite books of all time is The E-Myth by Michael E. Gerber. In no small measure, my absolute favorite ideology, or philosophical principle in the E-Myth is summed up in one simple passage from the book, and I paraphrase:

"Just because you are a wonderfully talented pie maker, does not mean that you can successfully run a Business that sells pies."

Business Owners must understand the difference between working "in" your Business, and working "on" your Business. In his book The Millionaire Real Estate Agent, Gary Keller perfectly and eloquently refers to it as leverage; human resource. Many Small Business Owners have a "DIY" mentality; Do It Yourself. They believe that if it is to be done right, they alone must do it. They are not so quick to entrust their "baby" to anyone. Business Owners must be receptive to the power of leverage, the power of delegating tasks, and authority to qualified employees and strategic Partners.

Business Development Short-Comings
Marketing and Business Development are not merely aspects of your Small Business, they are your Small Business! Your ability to generate revenue and sustain your Business is predicated on your ability to acquire market-share / market-capture. Many Business Owners will make the mistake of heavily promoting their opening or launch, but fail to apply a consistent, systematic campaign subsequently. Rome was not built in a day, your Business will not be either.

Irrespective of what business you're in.... no matter what widget you are selling, brokering, manufacturing, or representing, understand that you are in the Lead Generation / Business Development business. Understand this, or you surely will not be in business for very long.

Lack of Business Acumen
As a Commercial Finance lender I see first-hand, a serious lack of business savvy in far too many Business Owners. It's that principle ideology from Gerber's, The E-Myth. Being a great practitioner, builder, artisan, whatever, does not an efficient operator make. You must take the time to educate yourself on the facets of operating your specific Business. In today's society with information and expertise on literally anything and everything available to you with ease and at the speed of the internet..... you have no excuse for a lack of insight or education. Read, increase your knowledge, elevate your acumen, be the expert in your Business. I lecture, coach, and train Sales Professionals and I am consistent in my mantra, "Be the Expert". Be the expert your Clients & customers expect you to be; there's no excuse not to be.


Lack of a Real PlanThere's that saying.... "failing to plan, is planning to fail." Truer words were never spoken. It's not just about having a Business Plan, an Executive Summary. It's about everything! You must plan everything, leave nothing to chance. Do your S.W.O.T. analysis diligently and be truthful to yourself; it is not an exercise to impress Investors or Lenders, it is a comprehensive inward look at how external factors may impact you. Have a Business Continuation plan. Presume, and plan for growth in an intelligent and sustainable way. Study your market sector, understand it. Does it have a cyclical economic nature? Do you have a plan to absorb the cyclical upticks and downturns? Be the expert your Business needs you to be. Stick to the Plan, trust it, but be ready to adapt when and where necessary.

Like I said, I love the Entrepreneurial spirit and hate to see it thwarted in any capacity. Failure is a necessary evil because the lessons we Entrepreneurs learn from our failures are immeasurable. We must recognize that some the grandest successes are the product of prior failures but that does not mean we should simply accept the inevitability of failure by not planning to succeed.

Good luck to you! Learn a little something about Commercial Finance from the video below:

Lessons of a Small Business Owner

I am a writer, so mostly, I write my own original posts, but this one I read and thought it really worthy of sharing. I found it on articles3.com.

Lessons of a Small Business Owner

I’ve owned my own business for four years now, and roller coaster ride is still the best way to describe the experience. Lots of big ups followed by big downs. Always a thrill, though.

I’ve gotten tons of advice along the way and learned some things on my own, too. Here are the lessons I’d like to pass along.

1) Don’t panic.

Bad stuff will happen. Just face it, deal with it and move on. Panicking can make you freeze up, and that can be deadly if it lasts too long.

2) Starting a business requires lots of hard work for little or no reward.

If you’re expecting to get a big return on your investment quickly, you’ll probably be disappointed.

3) It takes MORE than you think to start and run a business.

More money. More time. More energy. More patience. (See #2 above.)

4) Persistent, consistent marketing is essential.

Visibility is a key to success, and it takes persistence to be visible. Avoid the mistake many start-up businesses make. They expect immediate results and give up on marketing strategies before they have time to work.

5) Write your own rules.

Don’t be afraid to try lots of different marketing and sales tactics. Try things and look at results. Figure out what works for you.

6) Believe in yourself.

Confidence will get you through tough times.

7) The best defense is a good offence.

Clients leave. You won’t win every pitch. The best things you can do are to stay visible and keep selling. (There’s no rest for the business owner.)

So chin up. Owning your own business is not the easiest path, but it’s YOURS!