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¶ … Entrepreneurs' unusual tactic: Buying up homes by hundreds" is an interesting look at an investment scheme that not too many companies have attempted. From a financial management standpoint, it seems to make at least some sense, because it uses lower priced homes as leverage for the future, hoping the homes will eventually appreciate, and renting them out will earn returns until they are sold. Property management is a difficult field, as the article notes, and there are inherent problems with rental properties, from damage done by renters to the turnaround of tenants and finding new ones quickly and effectively. If the company can afford to hold on to the houses long enough, they will certainly appreciate and make the company money, even in this time of falling home prices and delinquent loans. That is a big worry here. If the company carries their own paper on loans for the sale of these houses, they could be in real financial trouble, because they could end up with many defaults on their hands, and that would spell disaster for their company.
I think this type of financial management plan must depend on very long-term investment solutions and options, and that it is not something to enter lightly or without the proper capital and time. With the downturn in housing, many of these homes will be difficult if not impossible to sell right now, because the average middle-America family who are the market for these homes cannot afford them without the sub-prime lenders who have already done so much damage to the housing market. That means these homes will have to continue to be rentals, and that eats up more administrative and repair costs. Thus, from a financial management standpoint, this seems like a good program, but only if the company is capitalized enough to weather the lending storm that is hitting right now, and is poised to make their investments last over time, rather than pay off rapidly.
Steve Jobs was a visionary leader, who preferred a centralized command structure in order to execute his visions. He rallied people around his vision, getting a high degree of buy-in, and in the process was able to build a leading consumer products company. He founded Apple and guided it to early success. After his ouster, the company lost its way, but when Jobs came back into the company, he was
Monopolies and Trusts: Appropriate Areas for Government Intervention? Capitalism is the economic system that has dominated the United States virtually since the day of its independence. A social and economic system based on the recognition of individual rights; capitalism demands that owners' rights to control, enjoy, and dispose of their own property must be respected. In a capitalist system, the purpose of government is to protect individual economic rights, and to make
Financial Fraud What is financial fraud? Identifying Fraud Effect on Economy Are we Protected? Identity Theft in Business Enron Scandel Loss Prevention Planning and Strategies Financial Fraud Financial fraud was an unfamiliar notion prior to the 2000's, but has become a controversial and familiar term due to economic woes, public disapproval and revamped financial regulations. Light was shed on some of America's top organizations intentionally changing their accounting books to look more attractive to investors than they were in
Custom Woodworks, Inc. Overview of Small Business in America Finding a definition of what is meant by small business can be difficult. Even the small business administration has difficulty agreeing as to what is meant by a small business. Currently, the small business administration considers a small business to be one that has fewer than 250 employees, or wholesalers whose annual sales amount to less than $5 million. For retail establishments,
2007 Economic Crisis on American Car market Effect of the 2008 global economic crisis on automotive industries Crisis in the United States Crisis in Canada Crisis in Russia Crisis in European markets Crisis in Asian markets Effects by other related crisis events In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will
Steps were also taken to organize a stock market in Lahore (Burki, 1999, pp.127-128). Also organized during this period were the Pakistan Industrial and Credit Investment Corporation (PICIC) and the Industrial Development Bank of Pakistan (IDBP), both of which were important to industrial development, obtaining "large amounts of capital from the World Bank, the former for investment in large industries, the latter in relatively smaller enterprises" (Burki, 1999, p. 128). This