Yesterday's message looked at how you can add an extra 15% to 25% of income to your existing equity portfolio or create a killer business using low cost loans and tax liens. See here what Jyske bank has to say about this.
Yesterday's message showed how we can borrow U.S. dollars at 3.375% and invest them in U.S. government guaranteed investments that pay up to 25%. This creates investing and business opportunity. I sent a note to Thomas Fisher of Jyske bank about this and here is his reply. To see yesterday's message click here.
"Hi Gary Regarding the report about selling tax liens this really sounds as an incredible investing opportunity and we would surely be interested in issuing invest-loans for this purpose. The requirements for this business are: a portfolio containing investment graded bonds and blue chip shares (depending on mix we can give up to 80% of the value in a loan in any currency) the portfolio should have a net worth of minimum US$50,000 as the amounts otherwise will be too small. The investor does not have to take the whole loan immediately but can work the invest loan as an current account investing in the tax liens when the opportunity arises. Best wishes, Thomas"
Thomas's email address is FISCHER@jyskebank.dk
Here is what this means to investors.
You have the ability to use existing shares and bonds to borrow US dollars at 3.375% (you can borrow Japanese yen at an even lower 1.675% which includes a currency risk and opportunity). You can then invest the loan in tax liens that pay up to 25% per annum return and even better.
Here is what this means for someone who wants to have a mobile, global business. You can show other investors how to do this and offer to buy the liens for them for a percentage of the investor's return (they do not pay you a penny until they make a profit).
This business opportunity is attractive and powerful. Here are the advantages.
#1: Your global travel in this business is tax deductible.#2: Your travel puts you in touch with wealthy investors. This is usually more enjoyable than just being a tourist.#3: This can be an immensely profitable business. If you develop just enough investors to keep US$10 million invested in tax liens earning 15% (and you are paid 25% of the earnings for doing this), you earn US$375,000 a year. If the liens you buy earn 25%, your earnings increase to US$625,000 a year.#4: Your capital outlay is low. All you need is enough for your travel and initial advertising to get started.#5: There is the potential for extra kicker profits when tax liens turn into tax foreclosures. Investors pick up property for pennies on the dollar and you share this profit.#6: This business works because it generates confidence. Investors pay their money to the government and receive their payments back from the government.#7: You can also help investors locally as well as abroad.
For those looking for a mobile, global business this will work in recessions even better than good times for three reasons:
First: there are more tax liens available during recessions.Second: interest rates and bond yields normally fall during recessions yet tax lien returns remain high.Third: Businesses suffer during recessions so investments become riskier. Tax liens remain safe, government investments.
This is an investing and business idea you can take almost anywhere! I look forward to helping those who have an interest in this to achieving success.
P.S. I will have a special session on how to use Invest-Loan to develop an international tax lien business at our upcoming International Business Made EZ course in Ecuador.